As you've seen, calculating ROI isn't difficult, just structured. Keep in mind a few points when embarking on an ROI calculation:

• Use a 3-year horizon and calculate ROI using the average savings over the 3-year period divided by the initial cost.
• Payback is an indicator of risk - the shorter the payback, the better off you are.
• Don't get misled and include costs that are not associated with the project. Conservative estimates are good, but resist the temptation to add so many costs that you talk yourself out of potentially good projects.
• There are only six categories of cost, and both costs and savings can be one-time or recurring.
• Benefits can be either direct or indirect. Direct benefits are good, but don't overlook indirect benefits.
• Fairly assess indirect benefits by correcting productivity gains for inefficient transfer of time.
• Choose a consistent methodology and apply it to every technology decision.

Nucleus provides continuous research and analysis to help you understand, from a quantitative point of view, the real savings and costs associated with the regular technology decisions management makes throughout the year. Using these financial metrics, you can be sure you are making the decision that maximizes the return for your company.