More than half of UK companies are dissatisfied with the level of value they receive from their IT investments, according to research by the Cranfield School of Management.
The research, which questioned about 100 businesses in the UK and Benelux, discovered that 57 per cent of businesses were not satisfied with the derived value from their IT investment. However, 31 per cent had no idea if they were receiving value from their IT investment or not.
Professor John Ward, research leader at the Cranfield School of Management, told CRN that businesses’ overall levels of satisfaction from IT investments has not changed in the past 10 years.
“Value assessments need to be frequently carried out,” he said. “The supplier and customer need to work together to help decide and monitor business IT investment benefits.”
Cranfield’s survey also discovered that the number of businesses adopting project management methods had increased by 35 per cent to 88 per cent of respondents, compared with a similar survey conducted 10 years ago.
Also, 73 per cent of respondents said significant improvements were needed for their business to deliver satisfactory value from its IT investment.
While 70 per cent of respondents reported having a project management office (PMO) in place, the survey discovered that the primary focus of it was to vet expenditure proposals, monitor project progress and control costs. However, PMOs were rarely used for value realisation.
More than 90 per cent of respondents also admitted that the main purpose of developing a business case for an IT investment is to secure project budget. However, 38 per cent admitted that they overstate benefits in order to obtain funding and 70 per cent admitted they fail to identify and quantify benefits adequately.
Adam Taylor, senior sales executive at VAR ADA Networks, told CRN that businesses today are prepared to spend a little more, especially on hardware, to ensure that they derive the maximum business benefits available to them.
“Businesses want value from their IT investment and will spend a lot of time considering the cost outlay and business benefits,” he said.
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