A Basic ROI Model
The basic ROI model has two elements: building the case and quantifying the benefits. Often, the process for projecting the costs and benefits involves educated guesswork, based on multiple sources, and just plain guesswork. The assessment process can be very effective—if the appropriate data have been collected over the evaluation period.
As shown in Figure 13-1, the goal is to determine when the project has broken even—delivering additional value that matches the costs. The project begins in the red—there have been expenses with no recouping of the investment yet. The starting point coordinates are determined by the purchase and implementation costs (vertical axis) and the deployment date. As the investment becomes operational, ...
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