CIOs: Categorize And Define Technology Investment Risk

September 21st, 2009

Summary

Failed, delayed, and misaligned IT projects have fueled business executives' dissatisfaction with IT. The benefit and cost estimates of technology investments provided by IT executives are often far from the realized business costs and benefits. To set the business' expectations appropriately, IT must understand the role that risk plays in technology investments. Forrester includes an analysis of the impact of risk on project estimates in its Total Economic Impact™ (TEI) methodology. Using TEI to calculate and communicate a risk-adjusted ROI, IT executives can communicate a more meaningful and accurate estimate of costs and benefits to the business, as well as help pacify business doubts and ultimately strive to meet realistic project objectives.

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