Lies, Damned Lies, and ROI

Author(s): George Goodall

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(By Info-Tech Analyst George Goodall – Printed with permission from Processor magazine www.processor.com).

Return on investment, or ROI, is the bane of IT management. ROI is supposed to guide decision makers toward optimal technology choices. But in finding "best," ROI often overlooks "good enough." The most damning failure of ROI, however, is its inability to address those pesky senior management questions about how various technology options really compare.

Here's an alternative to ROI. Return on Incremental Investment, or ROII, is a far more useful metric for the real world of IT professionals. It's about time that we had our own financial measure.

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