TITLE

Don't just view ROI as a financial measurement

AUTHOR(S)
Steed, Colin
PUB. DATE
May 2003
SOURCE
IT Training;May2003, p16
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
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.
ACCESSION #
9847934

 

Related Articles

  • ZUR AUSSAGEFAHIGKEIT DES RETURN ON INVESTMENT FÃœR BETRIEBLICHE PLANINGS- UND KONTROLLRECHNUNGEN. Coenenberg, A. G. // Management International Review;1972, Vol. 12 Issue 2/3, p35 

    In the practice of business planning and control, the return-on-investment concept enjoys extraordinary popularity. The reason for this may, in no small way, be due to the fact that the return-on-investment calculation provides, in the form of a single magnitude, namely, the profitability of...

  • Financial Implications of Plans: Four Common Methods. Pfeffer, Jeffrey; Fogler, H. Russell // Industrial Management;Mar71, Vol. 13 Issue 3, p4 

    Focuses on the financial implications of business planning. Method of ranking investment alternatives; Definition of payback period; Estimation of the rate of return on investment.

  • Increase closing success by determining ROI.  // Sell!ng;Jul2004, p5 

    Focuses on the way to determine the return of investment (ROI) that a product can give to guarantee a sales deal. Strategy on how to get a prospect's attention to buy a product; Information needed to calculate ROI; Steps in calculating ROI.

  • Calculating the return. Yoswick, John // South Texas Automotive Report;Mar2008, Vol. 10 Issue 6, p4 

    The article discusses the findings of a research study on customer satisfaction index (CSI). The entry indicates that shareholder value increased for companies whose customer satisfaction ranking within the same industry remained constant. It also gives information on the CSI worksheet developed...

  • Boot in Profits.  // Money Today;Aug2012, p22 

    The article discusses several issues to consider when starting a traditional or online business. It was said that a comprehensive business analysis of the existing market is essential even when starting with a relatively small capital. Radhakrishnan of Magzter.com said a new-age business plan...

  • E-commerce Realities: Business Case Development. Jesson, Joseph; Barnier, Richard // Information Executive;Jan2000, Vol. 4 Issue 1, p1 

    Focuses on electronic commerce in terms of opportunities and known risks in the context of return on investment (ROI). Trends in electronic commerce; Implementation of Internet business portals to customers and suppliers; Reasons for lack of ROI information; E-commerce critical success factors.

  • How Pada is exploring the challenges lying ahead.  // Money Marketing;7/10/2008, p36 

    The article reports on the exploration of different aspects of challenges by the Personal Accounts Delivery Authority (PADA) in Great Britain to determine how personal accounts might work. PADA wants to create strategies to minimise employer burden and to provide a low-cost scheme that will...

  • ABOUT THE BUSINESS OF CHARITY. Miller, David // ColoradoBiz;Mar2010, Vol. 37 Issue 3, p10 

    The article focuses on the use of the principles of business excellence as strategy for the success of The Denver Foundation, an institutional investor, in Colorado. The foundation has been recognized for its outstanding investment performance with a 6.21 percent average investment return...

  • Size no barrier to great agency work. Archibald, Stuart // Precision Marketing;1/20/2006, Vol. 18 Issue 12, p16 

    The article focuses on the efforts made by marketing agencies in building relationship with their customers so as to get better return on investment. It does not matter whether an agency has three boardrooms or is working out of a pub, what matters is their networks, share prices and structures....

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics