Tuesday, March 10, 2009

The Challenge of Return on Investment

Here's an interesting article published by an architectural news organization. Although my personal interest is in mid-size manufacturing and distribution, many of the concepts hold true. What I found interesting is the author's focus on cash flow as an indicator of success. If, after a new technology is introduced, then the organization's cash flow position improves then the project is a success.

That's a simple and useful measure. However, teasing out the effects of a new IT project and separating them from other business conditions is difficult, at best, in all but the largest and most disciplined organizations. (Find me a mid-sized company that audits its capital projects - please!)

Still, the author has interesting things to say and he may tickle some useful thoughts in your head.

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