Article I wrote sometime ago and was published in Journal of Business Strategy
Ronald Reagan once famously said of government, “Just like a baby – an enormous appetite at one end and no sense of responsibility at the other.”
Excessive amount of ink has been devoted (in trade publications, marketing brochures and analyst reports) to help a CIO calculate “Return on Investments.” Methods recommended include, simple Cost-Benefit Analysis, IRR, Discounted Cash Flows, Total Cost of Ownership, EVA and real options. Among all this mumbo-jumbo of numbers and formulae, one loses track of the most important factor that will ensure “returns” on your investments, that is, “Accountability.” This paper lays out a framework to assign responsibility for various types of IT investments to ensure that you realize the projected “rosy” ROI numbers that any of the above formulae throws up.
Link to the paper