Taking Stock

Alinean extends IT ROI and value assessment tool kit

Orlando, FL Ñ February 28, 2003 Ñ Alinean said this week it shipped ValueIT version 2.0 with an expanded return on investment (ROI) and IT budget analysis tool kit for technology decision-makers to assess and justify proposed projects, create balanced budget plans and benchmark IT spending and resultant performance against peers.

ValueIT 2.0 has more than 25 business case ÒtemplatesÓ and 100 ROI worksheet components for assessing the value of high-stakes IT investments. The provider said enterprise users can custom-build IT investment business cases with the ROI templates, questionnaire builder and library of common ROI worksheets as a starting point. This expanded portfolio includes customer relationship management (CRM), supply chain management (SCM), enterprise resource planning (ERP), human capital management, server and storage consolidation, platform migration, PC refresh, storage management, security, enterprise portals, and data warehouses.

"CIOs, consultants and vendors are under pressure to ensure the success of technology projects while keeping a tight reign on costs. As the economic recovery begins, there's also the risk that companies overly conservative with IT dollars could be left behind," said Tom Pisello, Alinean's president and CEO. "By implementing a strict ROI discipline, stakeholders can ensure that technology delivers real bottom-line corporate impact."

Version 2.0 also expands the peer comparison component with new financial and IT benchmarks for approximately 1,500 European companies, so enterprises can compare their own IT performance with that of market leaders worldwide, including Bayer AG, Schering-Plough, GlaxoSmithKline, BP, Ericcson, Unilever, BMW, Groupe Bull and Euro Disney S.C.A.

Alinean said its analysis of IT spending and financial performance from over 10,000 companies revealed benchmarks against specific companies and industries is more meaningful than industry averages. ValueIT includes a database because it bases its benchmarking metrics on core business fundamentals, which may include the underlying business model, geographic reach, revenue or target market.

By setting IT spending and performance benchmarks, executives and consultants can then establish investment plans and measure their own performance at year-end. This fiscal approach, according to Alinean, also makes it easier for chief financial officers to give budgets the stamp of approval, rather than slashing spending based on assumed spending levels of competitors, or average overall spending research studies.

"CIOs are craving meaningful financial data that ties IT spending and performance and helps guide strategic planning," said Paul Strassmann, the chief information officer of NASA and a member of Alinean's board of directors. "Until now, they've had to settle for sketchy profiles of peer or industry averages, which mean almost nothing. Alinean's IT spending and financial performance data for more than 10,000 companies worldwide shifts the balance of power for IT managers, by giving them a crucial business planning, budgeting and measurement tool."