Enterprise 2.0 vs. ROI

ROI is called as Return On Investments where it gives a broad idea of what profits and benifits will be achived in terms of the investment for the project. I personally experienced how difficult it is measuring ROI for the enterprise 2.0 projects.

As mentioned in my previous posts it is one of my projects to create a proposal about library 2.0 for the QUT library and as a part of the proposal it was required to do the ROI. I was thinking about this for so many hours and did so many research as well. But it was totally a mess to come up with ROIs for the library case, it doesn’t mean that the proposal doesn’t give any benefit but it is all about how we can measure it.

Some of the benefits of web 2.0 tools are esier to comunicate, collaborate and find information. In order to come with proper ROI it is required to measure how much of time does employees save with the use of those web 2.0 tools and what is the monitory value in terms of less working hours.

As Jeremy Thomas of Social Glass puts it:

“I suppose Search is the easiest to quantify. The average knowledge worker spends 25% of his day looking for content. So let’s say that company X has 1,000 knowledge workers who make an average of $80,000/year. This means the company ‘wastes’ 20 million/year in funding with the time workers use to find content.”

Another way to measure ROI is to examine if employees can make more money with Web 2.0. Can sales people make more calls because they have more time? Are customers that participate in your company’s social network 50 percent more likely to renew contracts?

But the challange I was experiencing was, we didn’t really have much information about how many hours library staff spend on looking for content or sending emails, their anual pay and such details that are required to analyse the profits. The ROI wholly depends on the statistics and without proper and relevant statistics it is very hard to come up with a realistic measures for ROI.

ROI has also to consentrate on the what is the value of the time it takes IT to setup and maintain a system of blogs, wikis and social networks? How long will it takes employees to learn the new software, and what’s the value of their time? Is there a cost for new software or hardware? But as I guess most web 2.0 tools are available  for free of charge.

Some of the usefull links for measuring ROI and examples are:

The revenue impact of Enterprise 2.0

IBM study

Measuring ROI for Enterprise 2.0 and collaboration

Determining the ROI of Enterprise 2.0


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