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How to Calculate

Your Technology ROI


What is your Return on Investment or ROI when purchasing

new technology? For many businesses calculating ROI can

be tricky especially when it comes to IT spending. Find out

some tips on calculating your technology ROI.

Whenpurchasingnewtechnology, howoften

do you consider its return on investment?

Here are a few tips so you can gain a better

understanding of technology ROI and how

you can calculate it in your business.


First should you consider ROI before or

after you make a technology purchase?

The answer is both. Before purchasing,

you want to carefully consider whether

a technology service or product is worth

your money. Then months after you’ve

implemented it, you should analyze whether

or not you made a good investment.


How to calculate ROI.

When calculating

ROI, it doesn’t have to be perfect. Here is

a simple formula to get you started. ROI

= net gain/cost. Example, you spend $100

and make $150. Your net gain is $50. ROI =

50/100 = 50%......... If you’ve yet to purchase

a service or new equipment, you obviously

don’t know how much profit it will generate,

so you’ll have to do a bit of guesswork

and estimation. It’s also important to

consider some intangibles. Think about the

productivity costs of staff time, disruption,

and frustration. Think about how much

time your staff will save if you implement,

say for example, a Managed Services

solution? With your employees no longer

having to put out IT fires daily, what if your

entire staff saves 50 hours a week because

of it? How much does that add up to in

saved salary expense? It’s important not

just to think about the savings in time, but

also what your staff could be doing with

those extra 50 hours. They could put those







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