Center for Technology in
Government Publishes Guide to Analyzing IT Investments
Contact: Karl Luntta (518) 437-4980
ALBANY, N.Y. (November 22, 2004) -- A new guide
released by the University at Albany's Center
for Technology in Government (CTG) is designed
to help public sector managers reduce the risks
of their next information technology (IT) investment.
"Most new government IT projects require
a return on investment (ROI) analysis before
they get that needed line item in the budget.
Unfortunately, there aren't a lot of models
out there that show public sector managers where
or how to begin that analysis. That's why we
put this guidebook together," said CTG
Deputy Director Anthony Cresswell, author of
"Return on Investment in Information Technology:
A Guide for Managers. "
According to Cresswell, IT systems are serious,
potentially risky investments for government
agencies and nonprofit organizations. They often
require substantial funding and personnel time.
What's more, the failure of a high profile,
high cost IT system in a government agency is
bound to make headlines.
The book provides a general overview for the
types of ROI analyses most often conducted for
government IT projects, and includes case studies
Before investing in any IT project, the guide
suggests considering a number of questions,
- · Is the proposed project critical
to the business objectives to your agencies
- · What are the risk factors associated
with the investment?
- · Who will be impacted - positively
or negatively - by the proposed project?
Answering these questions will help determine
the type of ROI analysis that should be conducted.
Any ROI analysis requires making many choices
among the ideas and methods available and conducting
an analysis appropriate to the decision situation.
The different choices are discussed in the guide.
"Considering an ROI analysis for an IT
project is a little like saying you want to
live a healthier lifestyle. It's easy to say,
but it requires a collection of factors, methods,
skills, tools, activities and ideas. The guide
helps to understand what those factors are and
how they may best be combined for certain projects,"
The guide can be downloaded at www.ctg.albany.edu/publications/guides/roi.
To request printed copies, call (518) 442-3892.
The Center for Technology in Government works
with government to develop information strategies
that foster innovation and enhance the quality
and coordination of public services. They conduct
applied research and partnership projects on
the policy, management, and technology issues
surrounding information use in the public sector.