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ERIC Number: EJ941892
Record Type: Journal
Publication Date: 2011-Jul
Pages: 6
Abstractor: As Provided
Reference Count: 23
ISBN: N/A
ISSN: ISSN-1556-8180
Return on Investment: A Placebo for the Chief Financial Officer... and Other Paradoxes
Andru, Peter; Botchkarev, Alexei
Journal of MultiDisciplinary Evaluation, v7 n16 p201-206 Jul 2011
Background: Return on investment (ROI) is one of the most popular evaluation metrics. ROI analysis (when applied correctly) is a powerful tool of evaluating existing information systems and making informed decisions on the acquisitions. However, practical use of the ROI is complicated by a number of uncertainties and controversies. The article reveals some of these controversies in an engaging and thought-provocative manner. Purpose: The intent of this note is to highlight several of the ROI paradoxes in a format of an opinion or a viewpoint with a hope that drawing attention of the ROI practitioners and researchers to these issues will contribute to more transparent and responsible application of the ROI evaluation. Setting: Not applicable. Intervention: Not applicable. Research Design: Not applicable. Data Collection and Analysis: Review of current practice. Findings: The article reveals three weaknesses of the ROI evaluations, which in the absence of the commonly accepted ROI standard, can make results of the ROI evaluations uncertain or questionable.
Evaluation Center, Western Michigan University. 1903 West Michigan Avenue, Kalamazoo, MI 49008-5237. Tel: 269-387-5906; Fax: 269-387-5923; e-mail: eval-center@wmich.edu; Web site: http://www.jmde.com
Publication Type: Journal Articles; Reports - Evaluative
Education Level: Elementary Secondary Education; Higher Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A