ROI (Return on Investment)
ROI (Return on Investment) measures what an investment actually returns relative to its cost, usually expressed as a percentage or a multiple. For a digital project, it isn't limited to revenue, hours saved, errors avoided, and reduced mental load count too.
A company automating a manual invoicing process can calculate ROI in hours of processing saved each month rather than direct revenue: if the tool costs 20,000 euros and saves two people 15 hours a week, the payback period can be measured in months. Working out this calculation before launch also serves as an argument for prioritizing the project over other internal requests.
The trap is calculating ROI based only on the initial development cost, forgetting the cost of operational maintenance and third-party maintenance over several years, which artificially inflates the expected return. It's also worth accepting that some benefits, like reduced stress on a support team, are real but harder to quantify precisely. An honest ROI includes a range rather than one overly optimistic figure.
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