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Learning Guide: ROI

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In this Issue

>>	What is ROI?
>>	How do you calculate ROI?
>>	ROI reality check
>>	ROI resources to help you learn more

What is ROI?

Karen Guglielmo
Editor, SearchCIO.com

Return on Investment (ROI) measures how effectively a business uses its capital to generate profit; the higher the ROI, the better. ROI is arguably the most popular metric to use when comparing the attractiveness of one IT investment to another.

See our complete definition for ROI

How do you calculate ROI?

ROI is usually stated as a percentage over a specific amount of time; in IT purchasing, three years is the most common time span since technology is often effectively obsolete after three years. Calculating ROI involves two parts: knowing what to measure and understanding how to quantify the value of those measurements into actual dollars.

How do I calculate ROI?

Metrics for calculating ROI

"ROI Insider" tips and newsletters

ROI reality check

by Peter A. Buxbaum

Maybe the problem with IT investments these days is that corporate higher ups failed to properly assess the current business environment. Shutting down IT budgets or refusing to invest in anything but small projects with quick ROIs sounds like a crisis response. But is that the most appropriate approach to the current environment?

Read Peter's advice

Related Articles:

Why doesn't my ROI add up?

ROI - Benchmark or bull?

ROI calculators: Honest projections or fuzzy math?

ROI Resources

ROI white papers

Ask our ROI expert a question

Product & Vendor SolutionCenter

Interview &Webcast: Understanding ROI

Browse search results for ROI

IT News: ROI

LAST UPDATED:

07 Sep 2004

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