Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

The Business Case: Page 10 of 10

Pros: Forces you to justify IT purchases with hard numbers tailored to your type of business; forces IT and business units to collaborate; bridges communication gap with financial management.

Cons: Organizational pressure and lack of business expertise often produce unrealistic numbers; analysis is performed early in the life of a project, when little is known about returns; numbers are seldom revisited after project goes live; difficult to apply to knowledge-based businesses.

Investment-Portfolio ROI

Pros: Encourages periodic re-examination of assumptions and results; rewards experimentation; requires collaboration among IT, finance and business units, fostering accountability.

Cons: Can become burdensome if reviews occur too often; still difficult to apply to knowledge-based businesses.