April 19, 2015  
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ROI and TCO

Business executives are demanding that IT investments deliverable tangible benefits and incur predictable costs. This research section presents current adoption rates along with return on investment (ROI) and total cost of ownership (TCO) studies for a various types of IT investments. Reports in this section are supported by Computer Economics original research on technology trends. These reports also include practical recommendations to ensure that benefits are realized.

The following highlights some of our recent popular research in this section.


Supply Chain Management Adoption Trends and Customer Experience
Competitive pressures, globalization and increasingly complex offshore manufacturing relationships are spurring organizations to expand their supply chain management systems, which encompass a wide variety of technologies and capabilities. This report quantifies the current adoption and investment trends for SCM systems as well as the benefits driving companies to expand their SCM implementations. We assess these trends by organization size, sector and geography. We look at the ROI and TCO experience of those that have adopted SCM along with current investment per SCM user. We conclude with practical advice for those considering investment in SCM technology.  (23 pp., 11 figs.)
[Research Byte]

IT Financial Management Solution Adoption Trends and Customer Experience
IT financial management (ITFM) systems are taking on added importance as IT organizations navigate the transition to cloud applications and infrastructure. In this study, we examine ITFM adoption trends, customer experience, and the major providers of ITFM solutions. Our study indicates that ITFM systems are being consistently used by organizations of all sizes and in all industry sectors. While many are achieving excellent results by adopting ITFM, buyers should closely manage implementation to ensure economic returns are achieved. (15 pp. 7 fig.)
[Research Byte]

HCM Adoption Trends and Customer Experience
Recruiting, developing, and retaining the best people creates a sustainable, competitive advantage, and human capital management (HCM) systems can play an important role in achieving this advantage. This report quantifies the current adoption and investment trends for HCM technology as well as the benefits driving companies to expand their HCM implementations. We assess these trends by organization size, sector, and geography. We look at the ROI and TCO experiences of adopters along with current investment levels per employee. We conclude with practical advice for planning new investments in HCM systems. (19 pp., 11 fig.)
[Research Byte]

Desktop Virtualization Adoption Trends and Customer Experience
Desktop virtualization adoption continues to rise. This study provides an overview of key concepts and vendors in this space. We then examine desktop virtualization adoption and investment trends, providing data on how many organizations have the technology in place, how many are in the process of implementing it, and how many are expanding implementations. We present worldwide adoption and investment rates, adoption by organization size, and adoption in North America over time. We also look at the return on investment experience and total cost of ownership experience of adopters and report on how much they are budgeting per user for new and follow-on investments in virtual desktop solutions. (18 pp., 10 fig.)
[Research Byte]

ERP Adoption Trends and Customer Experience
ERP systems have become the platform for integration of data, information, and applications in the well-managed enterprise today. This study helps IT executives understand how aggressively their peers are investing in ERP and the risks and rewards presented by those investments. We report worldwide adoption and investment rates by sector, organization size, and geography. We also measure customer experience in terms of the success rates for return on investment (ROI) and total cost of ownership (TCO). Finally, we assess ERP investment levels for new implementations and improvements to existing systems. We wrap up with our recommendations for improving the ROI of ERP installations. (15 pp., 11 fig.)
[Research Byte]

CRM Adoption Trends and Customer Experience
This study analyzes the market forces that are driving the increased popularity of CRM systems today. We show the three-year trend in CRM adoption and investment rates, with a breakdown by sector, organization size, and geography. We also measure customer experience in terms of the success rates for return on investment (ROI) and total cost of ownership (TCO). Finally, we assess CRM investment levels for new implementations and improvements to existing systems. We wrap up with our recommendations for improving the ROI of CRM. (17pp., 12 fig.)
[Research Byte]

SaaS Adoption Trends and Customer Experience
This study quantifies the current investment trends for software-as-a-service and identifies the benefits driving companies to expand their SaaS implementations. It also identifies which of a wide variety of SaaS applications are driving adoption, and assesses adoption and investment trends by organization size and geography. Finally, we examine the highly positive ROI and TCO experience of adopters and conclude with practical advice for those considering deployment of SaaS solutions.  (26 pp., 11 figs.)
[Research Bytes]

ITIL Adoption and Best Practices
Providing excellent IT service management to help a business achieve its strategic targets is a much debated but seldom achieved goal. The Information Technology Infrastructure Library (ITIL) is perhaps the most widely accepted framework to accomplish this elusive goal. This study begins with a brief explanation of ITIL's history and current framework for IT service management. We next study ITIL adoption and practice levels in North America, examining levels of adoption by organization size and sector. The study concludes with best-practice suggestions for successful ITIL implementations. (10pp., 5 figs.)
[Research Byte]

Unified Communications Adoption and Experience
This study shows that early adopters are achieving positive results with unified communications, both in return on investment (ROI) and total cost of ownership (TCO). Risk appears low, due to predictable costs. While this technology is still early in its adoption cycle, our research points to rising interest. This article assesses the growth in unified communications by analyzing current adoption and investment activity and provides a view of the ROI and TCO experienced by adopters. We also examine adoption and investment rates by organization size and sector. (13 pp., 7 figs.)
[Research Byte]

Mobile Business Application Adoption and Economic Experience
This study examines adoption and investment trends for mobile business applications, providing data about how many organizations have mobile apps in place, how many are considering such investment, how many are in the implementation stage, and how many are expanding implementations. To give additional insight, we look at the economic experience of those that have implemented mobile apps: we examine return-on-investment experience and balance the potential ROI against the risks, measured in terms of the percentage of organizations that exceed budgets for total cost of ownership. (12 pp., 7 figs.)
[Research Byte]

Legacy System Renewal Adoption, ROI, and TCO
The decision whether to renew or replace legacy applications is an economic one that many IT managers are wrestling with as organizations seek to exploit Internet-enabled business processes and mobile applications. In this study, we assess current adoption and investment rates for legacy system renewal projects based on our annual survey of 200 IT organizations. Next, to determine risks associated with renewal projects we look at the return on investment (ROI) and total cost of ownership (TCO) experiences of organizations that have undertaken such projects. Finally, we examine trends by organization size and conclude with a summation of best practices. (12 pp., 7 figs.)
[Research Byte]

Predictive Analytics ROI and TCO Experience
Business intelligence (BI) solutions are moving beyond monitoring business activity to making predictions about customers, products, and markets. The ultimate objective is to make predictions in real-time so decisions can be automated to increase customer value, reduce fraud, improve operations, or achieve other purposes. This study examines adoption trends for predictive analytics, providing data on how many organizations have the technology in place, how many are implementing it, and how many are expanding implementations. We examine return on investment (ROI) experience, and total cost of ownership (TCO) risk, measured by the percentage of organizations that exceed TCO budgets. We conclude with recommendations on implementing the technology. (13 pp., 7 figs.)
[Research Byte]

VoIP Adoption, ROI, and TCO Trends
Investment in Voice over IP (VoIP) is widespread and growing, although some organizations are having difficulty precisely estimating their total cost-of-ownership. This study examines VoIP adoption trends, providing data on how many organizations have the technology in place, how many are in the process of implementing it, and how many are expanding implementations. To give additional insight, we look at the economic experience of those that have adopted the technology. We examine return on investment (ROI) experience in terms of the percentage of organizations that report positive and break-even ROI within a two-year period. We also balance the potential ROI against the risks, measured in terms of the percentage of organizations that exceed budgets for total cost of ownership (TCO). (16 pp., 10 figs.)
[Research Byte]

Social Media Adoption Trends
Social media effectively shifts the one-to-many model of traditional publishing and broadcasting to a many-to-many model that fosters and sustains dialogue. Today many IT managers are asking: What does this mean for the enterprise? This study examines how many companies are leveraging social media and what their experiences have been thus far. We provide data on adoption trends, ROI experience, and TCO experience. We also disclose how organization size and sector influence adoption and economic experience with social networking. We conclude with our viewpoint on the potential benefits of enterprise social media. (14 pp., 8 figs.)
[Research Byte]

Storage Virtualization Adoption Trend and Economic Experience
Organizations are having a highly positive economic experience with storage virtualization, nearly as positive as with server virtualization. Nevertheless, adoption rates are moderate and nearly one-third of organizations are still at the researching stage. This study first examines adoption trends, providing information on how many organizations have storage virtualization in place, how many are in the process of implementing it, and how many are expanding existing implementations. We also look at the economic experience of those that have adopted virtualized storage. We examine ROI as the percentage of organizations that achieve positive or break-even ROI within a two-year period. We also balance the potential ROI against the risks, measured in terms of the percentage that exceed budgets for total cost of ownership. (14 pp., 9 figs.)
[Executive Summary]

Green IT Taking Root Despite Uncertain Payback
The term green IT most frequently refers to initiatives to reduce IT energy consumption but can also entail recycling, proper disposal of toxic materials, and even telecommuting. Although the adoption of green IT is on a sharp upward curve, the economic rationale for these investments is unclear. This study first looks at adoption trends, which provide insight into how many organizations have green IT initiatives, how many are in the process of implemention, and how quickly such environmentally-friendly investments are likely to increase over the next year. We then examine the economic experience of those that already have made such investments by examining the percentage of organizations that report positive and break-even ROI within a two-year period and the percentage that exceed budgets for total cost of ownership. (9 pp., 7 figs.)
[Executive Summary]

Adoption of IT Asset Management Reaching Maturity
IT asset management (ITAM) systems improve the tracking of location, configuration, and identity of computer assets and related data, while reducing the effort required to collect and maintain this information. This study provides an overview of ITAM systems adoption and economic experience. We review key activities supported by ITAM systems and key features found in leading vendor solutions. We then assess adoption trends, return on investment (ROI) experience, and total cost of ownership (TCO) experience of organizations. The data is assessed for the composite sample of 200 organizations and by organization size and sector. We conclude with our recommendations on requirements that ITAM systems should meet. (14 pp., 11 figs.)
[Executive Summary]

Open Source Business Applications: Adoption and Participation Trends
In this study, we examine adoption trends and the economic experiences of organizations that have deployed open source business applications. The analysis addresses current adoption levels, current investment activity, return on investment experience, and total cost of ownership experience. We also examine variations in adoption and investment levels by organization size and industry sector. Finally, we look at a related issue: the number or organizations actively contributing to open source development projects. We conclude with key considerations for IT managers who are assessing the suitability of open source business applications. (7 pp., 10 figs.)
[Executive Summary]

Virtualization Improves Productivity of Data Center Staff
One of the least recognized factors of server virtualization ROI is the positive impact that virtualization has on the productivity of data center personnel. In this article, we provide statistics showing that the productivity of data center staff improved significantly from 2006 and 2007, concurrent with an increase in OS virtualization levels. These trends are consistent across Windows, Unix, and Linux platforms. We conclude by summarizing the reasons that data center staff productivity benefits from increasing the level of virtualization. (4 pp., 4 figs.)
[Executive Summary]

Configuration Management Database ROI Requires Careful Implementation
All IT managers need up-to-date knowledge of organizational IT assets and resources. Yet, maintaining timely information on all IT assets, their configurations, and relationships can be a monumental task. One solution to this problem is the Configuration Management Database (CMDB). In this study, we examine adoption trends of CMDB solutions among small, medium, and large companies, as well as the return on investment (ROI) and total cost of ownership (TCO) experiences of the companies that have implemented these systems. We conclude with recommendations for companies considering implementing a CMDB solution. (4 pp., 4 figs.)
[Executive Summary]

Application Consolidation: Adoption Trends and Benefits
Although consolidation of multiple applications or multiple system instances into a single system can be a great undertaking, the resulting benefits can be huge. This study investigates the payoffs and risks associated with application consolidation, which is based on our survey of more than 200 IT organizations. We provide statistics on the adoption rate for application consolidation along with the percentage of organizations that experience positive or negative return on investment (ROI). Analysis of  application consolidation cost experiences are also included along with the quantitative effect that application consolidation has on IT budgets. The report concludes with  practical guidelines for application consolidation that mitigate the risks of the effort. (6 pp., 8 figs.)
[Executive Summary]

Radio Frequency Identification (RFID) Adoption Stalls
Although the promises of Radio Frequency Identification (RFID) are great, the adoption rate of RFID technology has stalled significantly in the last year. What went wrong? This article examines RFID adoption statistics in the U.S. and Canada by industry sector, and reports the ROI experiences of organizations that have implemented RFID. It also analyzes the factors that are contributing to the slow-down in RFID adoption rates along with the applications and environments where RFID appears to be showing the strongest success. (10 pp., 6 figs.)
[Executive Summary]


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