Getting a Decent Return on Your IT Investment

So as a CIO, you’ve just spent a million dollars to implement a new communications system, only to find out that it will be outdated in 6 months. Or, you want to pay $300 for Vista, only to know that the next OS from Windows will be released in the near future. Because of the increasing power of computing (Moore’s Law, etc.), today’s Cadillac software is tomorrow’s Pinto. In fact, South Korean kids now think email is outdated, and are not using it, favouring instant messaging technologies. So the question must be asked “Why Update if the bare minimum standard of technology is a constantly moving target?”

The answer is simple “to improve a facet of your business, whether it makes or saves money”. The 1 million dollar communication system may be outdated in terms of the latest product on the market, but did it solve any of the businesses’ problems and improve the bottom line of the company? Was it better than the old system in creating cost savings, or increasing productivity? If the answer to questions like this is yes, then the investment has generated a return, and done its job. The technology need not be the fastest, most powerful, best in its class in order to be implemented. If it keeps in line with the strategic goals of the company, any IT investment can be a good one. And as long as it wasn’t training seminars stored on laser discs.