3 ms·
And how will you measure that ROI? Over what timescale? If the potential value of someting is saving/preventing future costs that thus would not occur, was tha
by PeterStuer 3y ago
And how will you measure that ROI? Over what timescale?
If the potential value of someting is saving/preventing future costs that thus would not occur, was that real or not?
ROI is an external viewpoint on a blackbox investment at a point in time. At best it is a speculation based on assumptions and beliefs when discussing the future.
What is the ROI of seatbelts and airbags in your car? 0 right up to the point where you get into an accident.
- deterministic 3y agoROI is income/cost. The money customers pay for the software is income, and the money you spend on software developers, offices etc. is cost. Companies typically use quarterly or yearly ROI calculations to guide decisions. And yes all plans and speculations are based on assumptions and beliefs about the future. Obviously. ROI is what you use to measure if your assumption/beliefs are correct after you make a change. For example, the claim that spending $ making the software more understandable will increase ROI is easily tested. However what you really need to test against is the ROI of spending the same $ adding features instead. The article argues that the ROI of improving the software always in all cases is a better ROI than any other possible investment. That is simply not true.