Measuring Financial Returns on IT Investments
Not what you're looking for?
Total Cost of Ownership (TCO) and 2) Return on Investment (ROI). Describe each of these approaches, state your preference, and analyze the advantages and disadvantages of each with a focus on IT investments.
Purchase this Solution
Solution Summary
The expert measures financial returns on IT investments.
Solution Preview
------
There are two primary approaches to measuring financial returns on IT investments: Total Cost of Ownership (TCO) and 2) Return on Investment (ROI).
Describe each of these approaches and analyze the advantages and disadvantages of each with a focus on IT investments. Which approach do you favor and why?
Return on Investment (ROI).
ROI calculations quantify both costs and the expected return of specific IT project over a specific timeframe. ROI is very useful concept of any kind of investment of any resource providing service or benefit to the invertor (or) an organization. The higher ROI indicates always allures investors. This is the widely used industry standard to justify an investment.
ROI can also be used as a performance measure to evaluate the efficiency of an investment or to compare the efficiency of the number different investment options in hand. A simple formula to calculate ROI (%) = (Net Profit / Investment) * 100
Net profit = Gains from investment - Investment
Advantages:
a) All activities are assigned to a specific dollar amount that empowers mangers to decide whether the task is worth of the investment.
b) There are many ways to determine ROI it is easy incorporate into any system: IT, management, consumer or external ...
Purchase this Solution
Free BrainMass Quizzes
Basic Networking Questions
This quiz consists of some basic networking questions.
Inserting and deleting in a linked list
This quiz tests your understanding of how to insert and delete elements in a linked list. Understanding of the use of linked lists, and the related performance aspects, is an important fundamental skill of computer science data structures.
Java loops
This quiz checks your knowledge of for and while loops in Java. For and while loops are essential building blocks for all Java programs. Having a solid understanding of these constructs is critical for success in programming Java.
C++ Operators
This quiz tests a student's knowledge about C++ operators.
Word 2010: Tables
Have you never worked with Tables in Word 2010? Maybe it has been a while since you have used a Table in Word and you need to brush up on your skills. Several keywords and popular options are discussed as you go through this quiz.