Don't just view ROI as a financial measurement

Steed, Colin
May 2003
IT Training;May2003, p16
Trade Publication
One issue that everyone seems to be confused about is the old chestnut of return on investment (ROI).The problem is that ROI has a number of different meanings, depending on how, and by whom, the phrase is applied. Popular among business analysts and corporate strategists, ROI is used to persuade management that any given project will be good for the business. Managers and directors expect to be shown a figure for ROI on technology or business-change projects and this drives the project planners to seek ways to demonstrate this through calculation. While ROI presented in financial terms is justifiable and acceptable, it can be widened and expressed in other ways that incorporate more intangible human elements, like increased motivation or customer satisfaction, which don't show up on the balance sheet.


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