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Summary

The Internet and e-commerce presents executives with a new variant on an old problem: determining "What am I getting out of this technology investment?" When faced with this question in the normal context of business activity, a concrete answer can be elusive. However, the ability to answer this question effectively clearly separates the successful e-commerce organization from the rest. Having faced this question with technologies such as data warehouses, ERPs, and knowledge management systems, successful CEO-CIO teams understand the value of an activity-based approach to IT ROI analysis, the basis of which has four stages:

  1. The creation of an ROI value criteria

  2. Creation of a metrics program to monitor the ROI value criteria

  3. Data capture

  4. Actual ROI analysis from the metrics data


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