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Return on Investion This is the most important metric to use for evaluating a technology investment and prioritizing projects within your company. With ROI, you get to an in-depth look at how each dollar spent will yield in returns. If your initial calculations yield an ROI less than expected, consider the following: Change cost timing: Move costs out of the initial year by spreading your variable costs. Negotiate on price: Small decreases in cost can drastically increase your ROI. Ramp cost with employees: Try gradually increasing the costs for training and other areas as employees begin using the technology. Change deployment strategy: Use the technology to support a small, key return group first, or try outsourcing. The technology can be more broadly deployed later. Re-examine your correction factors: If you've been too conservative in your correction factors and productivity gains estimates, you may be influencing a bad decision.
The following DII notes provide a series of ROI discussions that may be helpful as you work though a ROI analysis. EIS ROI: How to calculate Return on Investment for an EIS implementation |
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