Feeds

Internet ROI: The next big stumbling block?

Return on Investment

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

Decision-makers, strategists and business leaders are continuing to question the worthiness of the Internet according to the Yankee Group.

The recent economic turmoil, combined with the recent dotcom collapse has compounded fears and led business managers across the globe to seriously question the level of investment required for a successful Internet operation - particularly when they haven't yet figured out to measure returns.

The latest report from the Yankee Group, entitled 'Doing Business on the Internet: Where are we today?' suggests that the business leaders of many corporations are still struggling to understand the worthiness of the Internet. Many in fact simply cannot see how the Internet fits into the company's overall strategic plans.

Worse still, web strategists, those leading the charge of the Internet in companies, feel that the situation has deteriorated considerably since last year. Yankee Group now estimates that twice as many business managers are failing to see the importance of the web.

The problem, as you can well imagine, is that the Internet is increasingly seen as a black hole for finance. Having almost inevitably lost money on Internet stocks and most definitely seen the turmoil of the dot com collapse - and the continuing struggle for success - business managers nowadays want to see hard and fast benefits - not just a gaping, non-refundable, money pit.

This does of course make perfect sense. Whilst we are probably all guilty of thinking that the Internet was going to provide a gold mine rich in customers and partners, few of us have actually seen those benefits materialise.

We all poured money into the schemes in the blind belief that, eventually, we would all retire quite happily to a beach of sun-tanned beauties and bottles of Bolli. But very, very few have actually seen those benefits take the company to the next level, which is pretty much what everyone had predicted.

Now of course, with all of that carved into our rapidly rewritten history books, business managers want to see real returns. They want hard and fast metrics, clear and concise ROI figures and, perhaps most importantly, definite profits and benefits being generated by online operations. And all of that seems perfectly reasonable.

A Government-sponsored study launched yesterday showed that overall, companies can expect to see online sales counting for as little as two per cent of total sales. So any company that embarks down this road without such metrics shouldn't be in operation.

© IT-Analysis.com

Intelligent flash storage arrays

More from The Register

next story
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
BT said to have pulled patent-infringing boxes from DSL network
Take your license demand and stick it in your ASSIA
Right to be forgotten should apply to Google.com too: EU
And hey - no need to tell the website you've de-listed. That'll make it easier ...
prev story

Whitepapers

Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Managing SSL certificates with ease
The lack of operational efficiencies and compliance pitfalls associated with poor SSL certificate management, and how the right SSL certificate management tool can help.