Return on investment (ROI) is commonly used by companies as financial metrics or benchmarks to evaluate business performance and efficiency of investment.
Here is the ROI formula:
When it comes to Enterprise2.0, the gains and costs are very difficult to measure directly. Most companies prefer to use money to calculate returns and seek a lucrative investment, but it is really difficult and impossible to see the immediate financial benefits at the beginning of implementing Enterprise2.0. Calculating the ROI is more than math, and companies should from the financial and non-financial points to assess the benefits of using social media. Read the rest of this entry »