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Cost Justification and ROI Analysis

For a given use of money in an enterprise, the ROI (return on investment) is how much profit or cost saving is realized. An ROI calculation is sometimes used along with other approaches to develop a business case for a given proposal. The overall ROI for an enterprise is sometimes used as a way to grade how well a company is managed.

If an enterprise has immediate objectives of getting market revenue share, building infrastructure, positioning itself for sale, or other objectives, a return on investment might be measured in terms of meeting one or more of these objectives rather than in immediate profit or cost saving.

This is a good article:

http://www.darwinmag.com/read/060104/taoroi.html

Rich's Recommended Web Sites

ComputerWorld's ROI Page

http://www.computerworld.com/managementtopics/roi/

ROI of Usability: A Collection of Links

http://www.rashmisinha.com/useroi.html

Rich's Recommended Reading List

Making Technology Investments Profitable: ROI Roadmap to Better Business Cases by Jack M. Keen & Bonnie Digrius

Achieving Business Value from Technology: A Practical Guide for Today's Executive by Tony Murphy

Buy these books from Amazon.com

Have a question about this topic?

Then please just email me your question! If the answer is short & sweet, I will pop you back an answer. If the question requires further research, I will look into it and post the reply on my blog, AskRichBohn.com, to share with others. As always, you can email me at rich@sellmorenow.com !

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