Towards
a Better Technology ROI (Return on Investment)
Most companies make decisions
to build technology based on some projection of its dollar value.
Revenues.
Savings.
Financial
ratios such as ROI (Return on Investment).
The missing pieces for such
financial projections:
The success
rate.
The
chance that someone can use the technology successfully.
Clear understanding of what
is a "successful" use of a technology.
If someone can buy something
at a web site in a reasonable time on their own, that is a success.
The cost for each successful
use of technology.
The time it takes the
employee or customer.
The allocated cost of
computer resources per each use.
The cost for each unsuccessful
use of technology.
If someone must call
the help desk to fill out a form, that is arguably not a "success."
Using the technology costs more time and money than using the old
form.
The lack of visibility and
accountability for the success rate of technology has been a major contributor
to the failure of web sites and technology projects.
IT projects can and do
get cancelled due to not meeting user needs.
Typically IT management
will fault businesspeople for lack of clear input.
The dot.com crashes.
Even if people wanted
to buy something, they could only 40% of the time at web sites.
(per uie.com)
Many early web sites
were geared towards boardroom presentations, not towards a successful
use by the customer.
Why build technology unless
it can be used successfully?
Of course, nothing is
perfect, so what success rate is required for your technology? 99%?
60% 40%?
If success rate mattered
from the outset, this rate would be monitored and tracked early in development
and throughout the technology life cycle.
Any financial decision to
justify technology expenditures that included a success rate would undoubtedly
recognize the primary importance of maximizing this rate.