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ROI shouldn”t be a factor in ECM

by | Feb 17, 2010

When evaluating if a product or service is working, many companies look at the return on investment, but one enterprise content management (ECM) expert says evaluating the ROI on information technology is "a complete waste of time."

Writing for the CMSWatch blog, Alan Pelz-Sharpe, principal with The Real Story Group, says the typical ROI calculations are just too simple when it comes to properly assessing the benefits of a solution.

In looking at recent statistics from Forrester which found that 49 percent of companies could not estimate the ROI of their ECM solutions, Pelz-Sharpe says the research firm was asking the wrong question to businesses.

"[R]ather than asking buyers of content technologies whether they can build a valid ROI for new investments, they could have been asked whether they believed new investments in content technology would deliver worthwhile benefits," he wrote. "The results from that would have been very interesting indeed, and I suspect quite different from the question that was asked."

That same report from Forrester, released late last year, seems to indicate that 2010 will be a good year for the ECM world. According to the report, 72 percent of businesses plan to increase their investment in the solution this year.