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How to defend your ICT projects: Financial basics and the ROI Checklist


Date:25/02/2009


More than ever, ICT managers are being asked to calculate the impact of ICT spending on the bottom line, and to justify the added value of each planned investment.

As budgets tighten and finance people become more involved in technology buying decisions, you must be prepared to better defend your business case through the use of financial metrics and ROI calculators.

This document has been prepared to provide all BELTUG Members with a structured approach on how to calculate ROI for (telecommunications-related) ICT projects. The first part of the paper presents an educational tool for technical staff members, and is intended to improve awareness and understanding of the overall financial and organisational impact of certain ICT projects.

This ROI paper covers the following:
1. The purpose of financial metrics and the different ways these metrics can be used to support the decision making process;
2. The key metrics the CFO looks at and how are they calculated;
3. The basic steps for using an ROI tool to build the business case for a technology project;
4. Examples: ROI calculations for ICT projects: 2 cases

 

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