ABSTRACT

If there is one concept that is spoken and written about a lot and yet is the least understood, it is ROI. Sales and business people use it, developers use it, managers use it and yet often it is hard for them to really express how to calculate it. We discussed the business case for maximizing ROI in the previous chapter. In this chapter, we will define and describe ROI in more detail and discuss why ROI along with TCO are good mechanisms for minimizing risk and maximizing benefits of software development and new application adoption.