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QUESTION POSED ON: 30 April 2003
Which wireless technology investments show the greatest ROI?
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Demonstrating a clear ROI continues to be a monkey on the back of
wireless applications. The reality is that the ROI varies drastically
based on three key elements: the timeframe for measuring the return, the
scope of the deployment, and most importantly the specific applications
that are enabled. In terms of timeframe, we hear CIOs tell us that 6
months is ideal and on occasion, 1 year is acceptable to measure ROI for
a given deployment. In reality, it is difficult for vendors to win
contracts without promising a 6-month return. As for scope, the larger
deployments that integrate with a multitude of back-end corporate
resources invariably generate the highest long-term ROI. However, the
initial cost is huge and the time to deployment can easily exceed one
year. As a result, most deployments we see are pilot programs that
effect only 50 or so users at most. Finally, the most important factor
we see in generating a strong ROI for wireless applications (from the
viewpoint of a vendor) is a strong understanding of the given customer's
vertical market and the line-of-business applications that are being
enabled. Ultimately, wireless technologies are merely a vehicle for
enabling new business process efficiencies and it is critical to deploy
these solutions with a strong understanding of the customer's original
business needs and concerns.
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