Functionality or ROI?

Q: When you look at new IT projects what do you consider first: Functionality or ROI? EWeek just published an article stating that in 2008, CIOs would be looking at functionality and strategic purpose and down playing extensive ROI calculations. What do you as an IT professional think about that?

A: Hi ..,
I think the ROI calculations are just a part of the full governance in IT projects and CIOs must govern the projects. I simply do not recommend going with ROI alone, terms of return must be defined in advance. It is not feasible to compare functionality vs. ROI since both of them may include each other. Full life-cycle of the solution should be interpreted into evaluation for CIOs. When you look at all IT projects, you may classify them in 4 main categories or a mix these 4:
1- Projects that increase efficiency
2- Projects that reduce cost
3- Projects that reduce risk
4- Projects that increase competitiveness

A CIO must have a grand plan with targets (tactical/strategic) and this plan must be carried out with a structured program. Any new project should be weighted against the program where ROI is just an initial evaluation item. The programs are not static, and the governance of the program itself should be structured as well.

Let me know if you have a specific question,
regards,
- yinal