Table: Running the Numbers
Here's the skinny on the most common methods of assessing ROI:Quick calculators: These are fill-in-the-blank forms, often on the Web sites of tech companies. Potential customers plug in facts about their business and get a ballpark estimate of how much they can save.How useful: Because the formulas are so general, experts don't consider them to be reliable forecasts of savings. Case studies: Tech outfits often trot out case studies of completed projects to try to persuade potential customers to buy their products. How useful: Problem is, each company's situation is different. ROI forecasts: Detailed info about a company's technology and business performance is collected and compared with results from its peers. How useful: This is fairly reliable because it focuses on one company.ROI assessments: These studies are done after a project is finished. How useful: The approach is highly accurate. But because it's done after the fact, it doesn't help with buying decisions.