Most firms fail to measure benefits of IT

Sixty per cent of UK organisations still do not formally measure the benefits of IT because they see it as a cost rather than a source of profit, according to research.

And more than half of IT directors surveyed say the difficulty in demonstrating the value of IT is a major reason for failing to gain a place on the board.

The role of IT is rapidly changing, particularly as organisations become more complex, says Graham Ridgway, the chief executive of Touchpaper , the firm that carried out the survey.

'Information technology should be seen not just as a cost centre, supplying infrastructure, but as an enabler of an organisation's overall business objectives,' he said.

'But our research shows that IT departments are still struggling to be seen this way. Lack of a strategic approach to measuring their contribution is part of the problem.'

The report also suggests that despite the lack of measurement, more than three quarters of the IT directors surveyed say difficulties in demonstrating how IT can contribute to business success is a major reason for IT budgets not being approved.

IT should strive to assume a more strategic role within the business and convince the doubters by demonstrating the value it brings, says Ridgway.

'IT departments need to be more positive about how they can contribute to business success,' he said.

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Further Reading:

• IT directors look towards the next-generation data centre
• Time for IT directors to raise their disaster recovery rating
• Data centres struggle to meet demand