TITLE

Building A Credible And Conservative ROI For VOIP

PUB. DATE
May 2004
SOURCE
Business Communications Review;May2004, Vol. 34 Issue 5, p30
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
In general, return on investment (ROI) exercises, as they are actually practiced, often includes questionable assumptions about people and organizations, insensitivity to process costs, and an inadequate regard for the demands of financial analysis. To address these shortcomings, here are five simple rules for building credible, conservative ROI analyses that withstand scrutiny and raise ROI practice to meet the highest standard of business impact analysis. The first rule is that credible ROI analysis depends on reasonable expectations of people, not on what is possible in an idealized model. The second rule is that costs recur, but they also evolve, and the pace of evolution makes a big difference over the course of an investment. The third rule is never give a benchmark the benefit of the doubt. The fourth rule is that a year of process change does not pay off on day one, but even a cautious accountant accepts payoff by day 365. The fifth rule is that fractions of people's time add up to units of payroll, but cutting a fraction of effort may not yield payroll savings.
ACCESSION #
13088357

 

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