As most companies have learned over the period from late-2001 to 2002, every dollar invested in areas such as IT has to bring a measurable return over a relatively short period. In an economy with little financial fault tolerance, most organizations can't afford to allocate funds without assurance that they'll bring business improvements that impact the bottom line.

What technology expenditures are effecting the greatest return on investment (ROI) these days? IT investment analysts with Nucleus Research offers advice on best strategies based on ROI studies it's performed for Global 2000 companies in 2002.

Integration and e-learning bring solid returns

One of the best investment performers for 2002 has been integration work, Nucleus says. Platforms such as Microsoft BizTalk Server and BEA WebLogic Integration let companies continue to use existing IT systems and applications through internal and business-to-business (B2B) integration. Nucleus' research suggests integration projects cut costs, improve performance, and create new revenue streams.

Customers launching e-learning solutions (for both employees and customers) have also seen quick "first-tier" benefits -- e.g., reduced travel costs, human resources overhead, and customer support expenses. Second-tier benefits typically include improved employee performance, which boosts profitability. Nucleus says companies can gain significant returns even from modest investments in e-learning technology.

ROI losers

Which investments haven't panned out? Nucleus research shows three areas of low ROI.

First, companies that have invested in e-commerce and business-to-business marketplaces to attract new partners have seen limited returns. Nucleus analysts suggest these companies would have been better off investing in specific integration strategies with their most important partners.

In addition, those spending on large CRM projects probably won't achieve a positive ROI. Consulting and software costs for these massive CRM projects typically outweigh returns, Nucleus says. A better strategy is to invest in CRM products you can deploy rapidly with a small footprint and expand them over time.

Finally, standalone content management implementations have proven to be financial failures, for the most part. Many Web server and portal products now include content management functions, and stand-alone solutions can be expensive to deploy and integrate. Nucleus says companies that achieve high returns on content management initiatives usually do so as part of a larger strategy with tight integration.

Who's counting?

Nucleus says both CIOs and CFOs are paying more attention to how technology spending impacts the company's bottom line. However, analysts say a poll of one firm's IT managers suggests that although financial justification of IT projects is important, only 40 percent of decision makers actively research ROI figures.