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When investing in learning technology, look at value, not just ROI

Tuesday, April 27th, 2004

“In French, le roi means ‘king.’ And in today’s business world, ROI-an acronym for return on investment-is king as well. Companies must now make sure that IT investments have clear value, whether in increased revenues or decreased costs.

In recent years a growing number of organizations have shifted from a single dogged focus on ROI to a more complete analysis called ROV, or return on value. These companies have been able to paint a more accurate picture of the overall impact of investments on their businesses. ROV broadens the analysis of ROI to include financial costs and hard returns as well as intangible benefits like having a scalable business, or increasing employee competence and customer satisfaction.

ROV is realized through improved operational efficiencies and effectiveness, and enhanced customer, partner, and employee value. A variety of improvements come together to create more value for organizations, even though not all of the returns are easily quantified. For example, there is tremendous value in keeping customers happy through good experiences with knowledgeable customer-support representatives, though it is difficult to measure in dollars.”

The entire article can be found at http://www.clomedia.com/content/templates/clo_feature.asp?articleid=464&zoneid=37.

This entry was posted on Tuesday, April 27th, 2004 at 4:33 pm by Judith Norton and is filed under News

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