Investing in and implementing information technology (IT) can add efficiency and raise profits, however, many companies struggle to measure clear return on investment (ROI) of such technology.
This article reviews, in detail, the key metrics of IT ROI, as well as how to assess the risks and costs associated with investing in IT projects.
Technology ROI - Understand Metrics
& Assess Risk
PAYBACK PERIOD - THE AMOUNT OF TIME REQUIRED FOR THE BENEFITS TO PAY BACK THE COST OF THE PROJECT.
LEARN ABOUT THE THREE KEY METRICS OF A PROJECTS' ROI THAT IT DECISION-MAKERS MUST FOCUS ON. THESE METRICS ARE: THESE METRICS ARE:
NET PRESENT VALUE (NPV) - THE VALUE OF FUTURE BENEFITS IN TERMS OF DOLLARS TODAY.
INTERNAL RATE OF RETURN (IRR) - THE BENEFITS OF THE IT PROJECT AS AN INTEREST RATE.
ABOUT THE AUTHOR
Michael Sarkis is a Content Marketing Specialist at Jonas Construction Software, a provider of fully-integrated service and construction management software.Michael has authored several articles for numerous construction industry publications, with a main focus on the construction software industry.