Non-Financial Parameters Crucial In IT Investment

New Delhi: | Updated: Jun 27 2003, 05:30am hrs
The top three parameters while measuring the success of an IT implementation are customer satisfaction, reduction in cost and reduction in headcount according to Infrastructure Strategies (IS) 2003, a Network Magazine-Indian Market Research Bureau (IMRB) survey on IT spends across enterprise verticals. Parameters like return on investment and total cost of ownership play a considerably lesser role in determining the success of an IT investment, the survey found.

The surveys findings were discussed at the IS 2003 event on Wednesday.

The survey also reveals that 62 per cent of CIOs believe that non-financial parameters should be considered while evaluating the success of an IT investment.

Speaking on the occasion, IDC Indias software and services research head S Sabyasachi said in order to increase the overall performance of an organisation using IT, a CIOs accountability needs to be increased. This can be done by involving the CIO in the decision-making processes. At times, this could also involve reshaping the organisation and processes in order to integrate IT and business units, he added.

Speaking on IT infrastructure management, Sandeep Parikh, who manages IT at Mother Dairy, pointed out that IT infrastructure management is now emerging as a key differentiator for organisations. Typical problems encountered by any CIO includes low representation of IT departments in management leading to poor cost allocation, he said.

In this backdrop, it is important for CIOs to have a clear understanding of what the organisation expects from them and accordingly put an IT strategy in place. It is also important for the CIO to carefully balance the immediate and long term needs.