ISACA survey reveals great but poorly understood value of IT

A nine-country survey of 1,217 IT managers and directors reveals that fewer than half have a shared understanding of value across the enterprise, and two-thirds fail to measure it. Conducted by the IT governance and security association ISACA, its Value of IT Investments survey found that half of the respondents believe they are realising 50—74% of expected value, while nearly a fifth reckon it's nearer 75—100%. However, half measure the actual value only "to some extent", while one in 10 do not measure it at all. Says Paul Williams, IT Strategy chair and IT governance adviser to Protiviti UK: "This survey illustrates the massive potential for value destruction from ill considered IT-related business investments." And he adds: "The lack of value measurement can lead to misleading and unreliable business cases and the consequent approval of discretionary projects that are unlikely to add to value creation. A more robust approach to all aspects of IT investment governance can lead directly to improved financial and operational performance." John Thorp, chair of the Val IT Development Team for ISACA and president of Thorp Network, comments: "The results of this survey reinforce findings from earlier studies that, while most enterprises feel they are realising value from IT, few have a clear understanding of what value means, and even fewer measure it. "Additionally, enterprises that do not fully measure value are unable to determine which investments are successful and which need to be cut –and thereby are likely to miss out on revenue-generating opportunities, pursue unsuccessful investments and neglect competitive advantage."