Questions tagged [return-on-investment]

For questions regarding Return-on-Investment (ROI) calculations for project justification.

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Should I calculate ROI as Benefits/Costs or Gains-Investment/Investment? Which is rather correct?

I am kind of puzzled as various sources give either of those formulas to calculate ROI: Cost of Benefits /Cost of Investments or (Gains - Investment) / Investment The obvious problem that if I ...
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2answers
68 views

How to calculate ROI of a necessary feature to an existing sytem?

I have a business system that works well and is currently in maintenance mode, using up maybe 5% annually of its original cost. So if it was 1,000 hours of development early on, annually we work on it ...
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4answers
407 views

Priority vs Business Value

We use a sort of cruddy old SLDC module in Service Now for keeping track of sprints. It has a field for Story Points and Priority. Priority is 1 - Critical through 5 - Moderate. Does this track ...
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1answer
72 views

What can I say is the ROI of this AdWords account?

So I have an AdWords campaign with the following numbers: Total Sales through Ads: 630000 Cost of the goods: 590000 Cost of Advertising: 22500 If I follow AdWords ROI formula, I have a ROI of 2.85%: ...
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2answers
135 views

Breaking Down a Code Review of a Prototype

I'm the Product Owner on a project, which is essentially the integration of a new technology into an existing product. A prototype has been written by an external developer and we are now tasked with ...
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4answers
942 views

How to use ROI to justify a project that is solely a replacement of an out-of-date system?

We want to get a project justified, but the ROI model is not helping us since this is a replacement of a very old, antiquated and out of date system. There will be no increase in revenue, no process ...
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1answer
504 views

How to articulate ROI for “strategic” project?

I want to initiate a project to enable communication within the organization. Although the cost is pretty clear, the benefits are obvious but not easily quantifiable. I am reticent to make ...