Glossary · Strategy & delivery
ROI
The return on an investment weighed against its cost.
ROI stands for Return on Investment. It weighs what an investment brings in against what it costs, so you can judge whether it is worth it. The return can be time saved, fewer errors, more revenue or lower costs.
The tricky thing about ROI is that not every return can be captured in euros. A system that frustrates your people less or helps your customers faster delivers value you cannot always calculate exactly. Include those softer effects in your judgement, but be honest about what you measure and what you estimate.
Calculate ROI over several years, not just the first. An investment that starts slowly but lasts a long time can ultimately deliver far more than a cheap solution you soon have to replace.
