6.4. BI Implementation: Estimation of Return on Investment
The relationship between a company’s value and the implementation of an IT system (including a BI system) may be proved if the implementation is interpreted as an investment project. If the potential increase of a company’s value due to an investment project is measured by net present value (NPV), a direct relationship can be observed:
NPV > 0 → potential increase of company’s value.
We can talk here only about the potential increase of value because a concrete investment project does not exist in a vacuum. Quite the opposite, it shares resources with other processes and coexists with other investment projects. And that’s why the project itself may be successful as an investment, but ...