Feeds

DIY e-biz ROI flatters to deceive

Bring on the Consultants!

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Just how well is that e-business project going? What exactly is the return on the investment (ROI)? If you are, in common with 80 per cent of so big companies, calculating the ROI in-house, you could be deluding yourself.

Companies assess their e-business ROI through rose-tinted glasses, consistently reporting better results than those who subject themselves to third-party assessment, Jupiter Media Metrix says.

The Web analyst firm bases its conclusion on its survey of 471 senior executives of firms with an annual turnover of more than $50 million.

Almost 60 per cent of inhouse ROI assessments generated a positive result, according to Jupiter, which suspects that in many cases this is merely a "self fulfilling prophecy".

Worse, DIYers use "nconsistent definitions of ROI metrics in an effort to show positive results, therefore making it nearly impossible to correctly choose which projects should be funded and which should be killed".

So what is to be done? Jupiter urges business managert to @precisely and consistently define financial metrics such as ROI, rather than attempting to 'guesstimate' a dollar value when there is no justification for doing so".

Also, companies must "separate hard dollar ROI calculations from soft dollar 'relationship metrics' such as Return on Relationship, which is a metric specifically designed to capture the impact of the Web on customer relationships".

This sounds very fuzzy to us: how do you work out a Return on Relationship? Jupiter has the answer - nearly. It is currently developing a Relationship model and will be publishing a report on the subject in a few months.

Jupiter may have its work cut out on converting the masses - right now, just 17 per cent of big businesses use external consultants to assess their e-business ROI. Many companies don't bother to measure their e-business ROI at all. ®

Website security in corporate America

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.