| ROI survival kit | |
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| >> | What is ROI? |
| >> | How do you calculate ROI? |
| >> | The ROI identity crisis |
| >> | ROI resources to help you learn more |
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What is ROI? | ||||||||||||||||
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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.
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How do you calculate ROI? | ||||||||||||||||
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| 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.
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Is ROI having an identity crisis? | ||||||||||||||||
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| by Ed
Parry It seems that the term "ROI" is in the midst of an identity crisis. The business units often define the term differently than the IT organizations. Related Articles:
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ROI Resources | ||||||||||||||||
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ROI white papers Ask our ROI expert a question |
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Webcast: Doing more with less - Maximizing the value of IT
investments |
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This was first published in March 2004