ROI means “Return on Investment”. This is a simplified financial notion that allows managers to determine whether it make sense to take some course of action. We do this intuitively all the time, and many of us do this with numbers for our companies weekly. ROI for capital investment and more recently, Marketing and Advertising campaigns (using mostly media costs) are commonplace. This ROI conceptual template or framework, allows a group of people to assess what is the properly scoped and dimensioned ROI metric to use for their given situation Sometimes, the cost of defining and populating a sophisticated ROI model can outweigh the benefit of having accurate results. It all depends on the eventual outcomes; whether value creating or value destroying.
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