As IT managers consider which technologies to invest in this year, they should exercise caution with supply chain and customer relationship management (CRM) projects but expect high yields from business intelligence (BI) efforts.
That's the upshot of a new report that's due from Nucleus Research on the best and worst IT return on investment areas for 2003. The forward-looking study is based on a mix of customer case studies and vendor product road maps.
"We've seen companies throw a lot of money at CRM with minimal results when they fail to separate out the business objectives," vice-president of research at Nucleus Research, Rebecca Wettemann, said.
The possibilities for companies to overspend and lower their ROI "are greater with CRM" than other types of IT projects, Nucleus Research President and CEO, Ian Campbell, said. "Think of CRM as the Big Dig of the technology world - you can go way over your head."
To avoid that scenario, Wettemann suggested two rules of thumb when approaching CRM projects: never spend more than twice on consulting what you've paid for the software and be sure to achieve project deliverables within six months.