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PAYOFF@InfoTech. NOW

C Appleby

    Hospitals & Health Networks
    |October 31, 1997
    PubMed
    Summary

    Maximize your IT investments by tracking return on investment (ROI). Effective ROI analysis is crucial for demonstrating the value of computer systems and ensuring sound business discipline in technology adoption.

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    Area of Science:

    • Computer Science
    • Business Management

    Background:

    • Organizations invest heavily in computer systems.
    • Measuring the financial impact of these systems is essential for business strategy.

    Purpose of the Study:

    • To emphasize the importance of return on investment (ROI) analysis for computer systems.
    • To advocate for the application of traditional cost-benefit analyses in IT.

    Main Methods:

    • Review of traditional cost-benefit analysis principles.
    • Discussion on the applicability of financial metrics to IT investments.

    Main Results:

    • Return on investment (ROI) tracking is a fundamental business discipline.
    • Standard financial analysis methods are applicable to computer systems.

    Conclusions:

    • Implementing ROI tracking ensures computer systems contribute to business objectives.
    • Financial accountability should extend to all technological assets.