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Building an ROI for credit automation: the four steps to justifying the purchase of an automated credit and collections system.

Business Credit

| January 01, 2003 | Parisi, Jeff | COPYRIGHT 2003 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Introduction

Today's IT purchasing environment is a very difficult one, given the state of the economy. In this environment, there has been very little capital spending, so it stands to reason that only projects that demonstrate exceptional return on investment (ROI) are going to get approved by CFOs.

According to the Gartner Group 2002 IT Spending and Staffing Survey, enterprises cut IT spending by approximately 7 percent in 2002 and will hold budgets flat in 2003.

While this forecast is not particularly alarming, it underscores the growing importance of justifying IT investments prior to and after purchase. According to an Ernst & Young ...

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