Calculating ROI on IT Service Management
One of the questions I am often asked is, "How do we calculate the Return on Investment (ROI) of our ITIL Implementation".
This week, a new case study was introduced covering:
- ROI Calculator
- Case Study Synopsis
Traditionally, ROI and TCO are touted by software companies as a means to sell software. Many of us have become hardened to these calculations, as experience has show they were grossly over-inflated. To help combat this, in 2006, ITSM Academy shared a realistic, un-biased ROI calculator which enables users to estimate potential costs savings of:
- Incident Management
- Availability Management
- Unplanned Work
Existing calculations can be easily tailored to produce similar process area calculations.
Case Study Synopsis
The case study also includes a collection of 25 published ROI statements and stories, broken out by industry type. The following is one of the quotes:
"An ITIL program at Capital One resulted in a 30% reduction in system crashes and software-distribution errors, and in a 92% reduction in critical Incidents within 2 years. After the ROI analysis, the implementation of ITIL was estimated to save 10 percent to 20 percent in technology support costs over a five-year period."
~ Computerworld, CIO.com