Return on Investment

The Challenge

  • Capital demands are rising, but availability is static or declining
  • External pressures are leading many institutions (not just the leaders) to consider major information technology investments
  • Pressure is increasing from boards and the executive suite to show value of these investments
  • Many past technology projects have failed to show value, or even to deliver the promised functionality

Return on Investment

  • While most organizations will not invest in IT for the economic return alone, positive ROI can help defray the cost of the investment and can help sell the project, both internally and externally
  • Industry-wide data has historically been spotty, ranging from wildly inflated claims to studies that are inadequate or dated
  • Returns will not be achieved unless goals are set and results are measured

HCIC ApproachROI Book

  • Building on the methodologies described in the book "Return on Investment - Maximizing the Value of Information Technology" co-authored by HCIC Principal Jim Oakes, HCIC takes clients through the entire process of identifying benefits, quantifying value, and projecting ROI
  • HCIC experience is combined with information from recent industry award winners, literature reviews and client specific measurement to give a balanced picture of potential returns from proposed investments
  • Potential benefits are classified in accordance with the Economic Value Pathway, and categorized as Level 1 (operational), Level 2 (tactical) and Level 3 (strategic), enabling providers to identify multiple levels of potential benefits, making it more likely that those benefits will actually be achieved

 Economic Value Pathway