Investing in and implementing information technology (IT) can enhance efficiency and increase profitability, however, many 
companies struggle to quantify the actual 
return on investment (ROI) of such technology.

This article examines, in detail, the key metrics of IT ROI, as well as how to assess the risks and costs associated with investing in IT projects.


CFMA - Technology ROI - Understand Key Metrics & Assess the Risks

by Michael Sarkis

ONE

PAYBACK PERIOD – THE AMOUNT OF TIME REQUIRED FOR THE BENEFITS TO PAY BACK THE COST OF THE PROJECT.

LEARN ABOUT THE THREE KEY METRICS SURROUNDING A PROJECTS’ 
ROI THAT IT DECISION-MAKERS MUST FOCUS ON. THESE METRICS ARE:

TWO

NET PRESENT VALUE (NPV) – THE VALUE
OF FUTURE BENEFITS IN TERMS OF 
DOLLARS TODAY.

THREE

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.

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