Blog Archives

Review of Making Technology Investments Profitable

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

Posted in Book Review, Business Case Analysis, Project Selection, ROI

Break-Even Analysis

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

Posted in Break-Even Analysis, Business Case Analysis, NPV, Project Selection, ROI

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

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

Posted in Business Case Analysis, NPV, Project Selection, ROI

The Formula for ROI, Just a Little too Simple

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

Posted in Business Case Analysis, Project Selection, ROI

Calculating ROI: A Review of Show Me the Money

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

Posted in Book Review, ROI