Measures expected benefits
Quantitative and qualitative assessment
ROI enables decision-making
Must evaluate relevant variables
Requires understanding of service
Results included in business case
ROI evaluates:
1. Process
1.1 Define purpose and scope
ROI scope set by:
ROI aims:
1.2 Collect data
ROI categories:
Outcomes | Positive risks (opportunities) | Costs | Negative risks (vulnerabilities/threats) |
Cost savings Performance Automation Revenue increases Productivity increases Waste reduction Regulatory compliance Business continuity |
New services/products New markets New distribution channels |
Design costs Development costs Project costs Migration costs Operating expenses Licenses Maintenance Staff costs |
Data exposure Greater attack surface Loss of control Vendor lock-in Uncontrolled purchasing Inability to innovate |
1.3 Review and analyze
ROI assess VOCR data
Includes workload rates
Analysis sets baseline
Intangible recorded
Highlights:
Results:
1.4 Calculate
ROI calculation omits intangibles, two options:
Neither method perfect. Stakeholders should:
and :
Benefits | Costs | |
Tangible | Revenue from new markets Revenue from new product or service Increased sales/new features Reduced expenditure |
Marketing campaigns New distribution channels Research and development Upgrading technology Cloud migration Cloud services |
Intangible | Customer loyalty Brand visibility Employee satisfaction Ease of use |
Cultural change Skill degradation |
1.5 Report and decide
ROI presented in business case
Present to:
2. Moving to the cloud
ROI demonstrate:
Apply to:
Not a general comparison
Use a specific scenario to compare:
Decision taken based on which ROI provides the best business case in this scenario
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