7 ROI: WHAT IT IS AND WHY YOU NEED TO SHOW IT
Let’s say you’re an IT manager and you want the board to approve a significant IT investment. What is very important to you – the problems the investment will solve and the opportunities it will create – might not be very important to the board unless you can demonstrate the business benefits. More often than not, that means speaking the language of money – and in particular, return on investment, or ROI for short. If you can demonstrate an acceptable ROI, you’re much more likely to get the investment you need.
ROI BASICS
ROI can be a very simple calculation. First of all, you estimate how much the proposed change will cost. Then you estimate the financial benefit it will bring. Deduct the cost ...
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