Digital Disruption

How to Measure ROI in this Dynamic Digital Age?

Digital transformation has provided many benefits and opportunities for enterprises and individuals to flourish. However, this digital wave has created some challenges as well due to its dynamic nature. A primary challenge among these is ROI measurement. ROI calculation has always been a tedious job and now it has become even harder with digitization. The time-to-market and shelf life of a product have shortened in this digital age. Thus, there are many factors to consider for ROI calculation in a short span of time, thereby complicating things further.

In this article at The Enterprisers Project, Todd Loeppke tells us why it is still essential to measure ROI and what are the three best ways to do it.

Does It Matter?

People might wonder if they still need ROI measurement in this digital era. Yes, they do. Without ROI calculation, it is hard to tell if a company’s financial resources are optimally utilized or not. Any organization neglecting ROI will fail soon enough. ROI calculations follow well-defined guidelines for any new investment to generate positive returns in a specific time period. But digitization has introduced some new factors that now form a part of this process. The author has listed three use cases below that are likely to help in calculating ROI easily.

The Proven Angle:

Companies with stable and established product lines have an easy process to follow. Their ROI calculation has predefined figures for the value of positive return and the minimum percentage of return that should be generated in a specific number of months. They are least affected by the digital wave.

The Technology Angle:

The ROI measurement might be flexible for a technology enabled product. The expected time for positive return will extend and the minimum percentage of return will reduce.

The Wild West Angle:

Here, the company might be relatively new with a fresh product in the market. Thus, the factors essential for these firms will be time-to-market, revenue, and Y-O-Y growth.

To read the original article in detail, click on the following link:

Priyanka Chakraborty

Priyanka Chakraborty is a content specialist, currently a part of CAI Info India. She holds diverse experience in content writing spanning domains like Information Technology, Digital Marketing, Social Media, Content Marketing, Nutrition, Health & Fitness, Photography, Website Design, Career Advancement, etc. In the past, she has worked with the leading job portal of India,, and then moved on to a UK-based online education company, Shaw Academy, before joining CAI India. A writer by day and a reader by night, she loves to explore her creative instincts further in art and painting.

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