Home > Uncategorized > Return Of Investment (ROI) with Enterprise 2.0 and examples of such calculations

Return Of Investment (ROI) with Enterprise 2.0 and examples of such calculations

As it has been identified in pervious posts, implementation of Enterprise 2.0 has benefits and risks for organisations. Logically, more benefits and less risks of such implementation will gain more and optimize the revenue of such organisations. This post will define the concept of the return of investment (ROI) and how can be calculated by implementing Enterprise 2.0, and provide examples of such Enterprise 2.0 success within investments.

What is the return of investment (ROI)?

ROI is defined as the net value that gained or lost of the cost of investment. This means an investment needs an amount of money to be set, and then the investment gained more or lost of the original amount of money. The ratio of increasing or decreasing the cost of original cost represents the return of investment value.  The following formula explains how to calculate such value:

However, sometimes it is impossible or difficult to count how much valuable the usage of social media within organizations due to the complicity of direct or indirect impact of such implementations. Overall, the return of investment will be recognized and assessed after long time period. The following diagram explains the ROI Model over time:

Examples of calculating ROI of implementing Enterprise 2.0:

This is a great video showing so many organizations where ROI has been calculated:

Categories: Uncategorized
  1. October 17, 2011 at 4:19 am

    Dear author,

    great work you have notice what is ROI standard for which is really interesting point.

    I have wrote similar topic you can access to my blog through this link http://wp.me/1K0gS


  2. October 17, 2011 at 9:06 pm

    Thanks Ayoub, This post is actually providing some clarifications and proves of ROI, with examples of such calculations.

    • October 17, 2011 at 9:13 pm

      Moreover, it shows how ROI model over time is and if it is considered the complicity of such calculations, the model in the figure above shows overall explanations of ROI.

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