Return on IT: Measuring Agility

Oracle: According to Oracle, enterprises that want to know the true value of IT need to answer two questions: “What is the relationship between IT resources and improved operational efficiencies or organizational effectiveness?” and “How do IT resources and strategies generate competitive advantage?”

The company suggests that true value can’t be measure by ROI or TCO. Instead, it suggests the following formula: Return on IT = Return on Fixed IT Portfolio + Return on Options. The paper then goes on to explore the benefits of what it calls “an option-based IT strategy.”