Understanding the expected value of a possible future event allows us to make mathematically sound decisions. We can decide if we want to make an investment. We can assign a reasonable price for our services. We can prioritize requirements. Expected value is a calculation that should be used when calculating ROI.
Archive of ROI Articles
(4 votes, average: 4.5 out of 5)
Loading ...February 1st, 2006
Definition of ROI - Return on Investment
We talk about ROI all the time - what is it, in layman’s terms?
ROI is the acronym for return on investment. Another way to think of it is “How much profit will we make if we invest in this project?” Profit is revenue minus costs. Technically, the question should be “How much [...]
(2 votes, average: 4 out of 5) Loading ...January 6th, 2006
The Best Way to Improve ROI is With Good Requirements
Statistics that support the critical need for requirements management improvements…
