Category Archives: ROI

Review of Making Technology Investments Profitable

Posted on January 13, 2011 by

In their book Making Technology Investments Profitable: ROI Road Map to Better Business Cases, Jack M. Keen and Bonnie Digrius make the case for business cases, walk through the process of creating a business case, provide insights for finding and … Continue reading →

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Break-Even Analysis

Posted on January 1, 2011 by

Like the formula for Net Present Value (NPV) explored in an earlier post, break-even analysis is based on a time series of cash inflows and outflows. It is simply the time required for the discounted cash inflows to equal the … Continue reading →

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Let’s Consider Time: Net Present Value (NPV)

Posted on December 24, 2010 by

As I mentioned in my prior post, the traditional ROI formula does not consider time. But in weighing the costs and benefits of a project, we must take into account the fact that neither costs nor benefits materialize instantaneously, each … Continue reading →

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The Formula for ROI, Just a Little too Simple

Posted on December 20, 2010 by

Recently, I reviewed a book on calculating ROI, but today I’d like to call into question this iconic phrase. The formula for calculating Return on Investment (ROI) could hardly be simpler. Just subtract the cost from the gain and divide … Continue reading →

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Calculating ROI: A Review of Show Me the Money

Posted on November 21, 2010 by

I hear the term ROI often enough but rarely see it calculated. It is said that business is all about numbers– financial statements, stock prices, bonus plans–but then there are IT projects, with budgets that are clear enough (or at … Continue reading →

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