Return On Investment Calculation Research Articles

Quantifying BIM investment value: a systematic review

Purpose Perceived benefits of building information modelling (BIM) have been discussed for some time, but cost–benefit benchmarking has been inconsistent. The purpose of this paper is to investigate BIM feasibility and evaluate investment worth to elucidate and develop the current understanding of BIM merit. The aim of the study is to propose a research agenda towards a more holistic perspective of BIM use incorporating quantifying investment return. Design/methodology/approach An in-depth examination of research patterns has been conducted to identify challenges in the assessment of the investment value and return on investment (ROI) for BIM in the construction industry. A total of 75 research articles were considered for the final literature review. An evaluation of the literature is conducted using a combination of bibliometric analysis and systematic reviews. Findings This study, which analysed 75 articles, unveils key findings in quantifying BIM benefits, primarily through ROI calculation. Two major research gaps are identified: the absence of a standardized BIM ROI method and insufficient exploration of intangible benefits. Research focus varies across phases, emphasizing design and construction integration and exploring post-construction phases. The study categorizes quantifiable factors, including productivity, changes and rework reduction, requests for information reduction, schedule efficiency, safety, environmental sustainability and operations and facility management. These findings offer vital insights for researchers and practitioners, enhancing understanding of ’BIM’s financial benefits and signalling areas for further exploration in construction. Originality/value The ’study’s outcomes offer the latest insights for researchers and practitioners to create effective approaches for quantifying ’BIM’s financial benefits. Additionally, the proposed research agenda aims to improve the current limited understanding of BIM feasibility and investment worth evaluation. Results of the study could assist practitioners in overcoming limitations associated with BIM investment and economic evaluations in the construction industry.

ROI for a Fall Prevention Intervention: Invest a Little, Save a Lot.

Patient falls within the hospital setting continue to be a significant challenge globally with almost one million hospital falls occurring in the U.S. annually. Recent calculations showed that the average total cost of a hospitalized patient fall was $62,521. One evidenced-based tool that has been shown to be effective is a colorful laminated poster, Fall TIPS poster, that was designed to engage and involve the patient in their fall prevention. One academic medical center utilized this implementation showing a successful return on investment (ROI). This project used a pre-post implementation design. After a successful pilot using the poster on one unit, the implementation was spread to all Adult Acute Care units (n = 10) within the institution. The outcome measures were fall and fall with injury counts and rates. The process measure was the completion of the fall prevention poster measured via audits. The calculation of ROI was completed using a four-step framework. The outcome data of fall and fall with injury showed a decrease from the pre-intervention months with both the fall count and rate decreasing by 23% and the fall with injury count and rate decreasing by 40%. The overall ROI calculation estimated an ROI of $982,700. The successful results from this project support the evidence that shows this program and the use of the Fall TIPS poster helps reduce patient falls within the hospital and yields a favorable ROI.

Return on investment from educational research grant funding: deliverables and measurement

This paper investigates the return on investment (ROI) paradigm from fundamental educational research grant funding perspectives. The researchers conducted a wide-ranging literature search regarding the educational research grant funding ROI from public policy and economics viewpoints. The preferred reporting items for systematic reviews and meta-analyses (PRISMA) were utilized to identify and analyze research articles and original reports related to ROI from educational research grant funding. The research data were screened through a literature review based on the inclusion criteria, namely study focusing on return on investment of educational research funding and study published between 2001 and 2021 (as of December 2022). This study found evidence that ROI calculation from fundamental educational research grants is not straightforward and varies. Besides, most available research focuses on research impact rather than economic and intrinsic research value. Based on the compiled literature on research-related performance attributes, this study identified three distinct deliverables of educational research funding: tangible output, intangible output, and research outcome. The present research proposes more robust and reliable methods for measuring the ROI of fundamental educational research impact, potentially generating a much-inform decision-making and resource allocation in educational research grant funding.

Evaluating Return on Investment for Digital Technology Investments in Multinational Corporations

The study examines the return on investment (ROI) of digital technology for multinational enterprises (MNEs), focusing on key metrics and challenges associated with ROI measurement. Using a mixed methods approach, it highlights that accurately measuring ROI requires establishing clear Key Performance Indicators (KPIs), conducting benchmarks, and utilizing a balanced scorecard to align digital initiatives with strategic goals. To measure ROI effectively, businesses must define KPIs that are specific, measurable, achievable, relevant, and time-bound (SMART). These KPIs should capture both financial impacts, such as cost savings and revenue growth, and non-financial benefits, such as improved operational efficiency and customer satisfaction. Benchmarking against industry standards or historical performance provides additional context for evaluating the success of digital investments. The study identifies several challenges in ROI measurement. Defining appropriate metrics can be complex, especially when objectives are not clearly articulated. Data quality issues also arise, as data required for ROI analysis is often fragmented, leading to incomplete or skewed results. Furthermore, valuing intangible assets like enhanced customer experience or improved employee productivity is difficult, complicating the ROI calculation. Addressing these challenges is crucial for obtaining a precise assessment of the impact of digital transformation.

Quantifying Success: Measuring ROI in Test Automation

Purpose: The purpose of this paper to provide strategic decision to implement test automation with measurable ROI is a favoured approach for organizations seeking to improve the quality of their software, expedite delivery, and mitigate testing expenses.
 Methodology: The present paper, titled "Quantifying Success: Measuring ROI in Test Automation," delves deeply into the fundamental aspects of ROI evaluation within the realm of test automation. It outlines the methodology behind ROI calculation, explores the cost factors and advantages associated with automation, and sheds light on the optimal strategies for achieving a favourable ROI.
 Findings: By presenting real-world case studies and examples, this paper effectively demonstrates the practical application of ROI measurement in test automation. The formula for Return on Investment (ROI) typically falls under the category of being "basic". While costs are relatively simple to measure, assessing the worth of potential advantages proves to be considerably more challenging.
 Unique Contribution to Theory, Policy, and Practice: Approaches to calculating ROI often oversimplify various aspects of test automation, subsequently resulting in inaccurate outcomes. These inaccuracies, in turn, foster impractical expectations among management in relation to test automation, ultimately culminating in failure at individual, team, and occasionally project levels, thereby offering valuable insights to organizations seeking to optimize the efficacy of their testing endeavours.

Anticipated ROI Methods for the Quantification of Servicescape Upgrading based on Intangible Values: A Literature Analysis

One of the biggest challenges faced by facilities managers is justifying the need for servicescape upgrades in monetary terms. Servicescape upgrades are often viewed as benefitting intangible aspects of business performance, such as improved levels of comfort, happiness, aesthetics, confidence, and health. This makes it difficult for facilities managers to convince upper management, particularly the finance department, that a proposed servicescape upgrade will benefit the business as there are no existing methods to anticipate a return on investment (ROI) of servicescape upgrades based on the quantification of intangible values in monetary terms. In other words, how can we determine if an improved level of comfort, happiness, pleasure, aesthetics, confidence, and health will result in profit in monetary terms? Currently, a research study is being carried out to construct a methodological framework for anticipating the ROI of servicescape upgrading based on the quantification of intangible values. The first objective of the research is to identify ROI calculation methods that can be used to anticipate the ROI of servicescape upgrade based on the quantification of intangible values. This paper reports the preliminary findings. Fifty-three literary sources, including journals, scholarly articles, website, blog posts, and books, were reviewed. Content analysis was carried out using Nvivo, and the results revealed that willingness to pay (WTP) or willingness to accept (WTA), information economic (IE), capital investment appraisal technique (CIAT), contingent valuation method (CVM), cost-benefit analysis (CBA), hedonic price method, travel cost method, comparative analysis, process of elimination, quantification technique, revealed preference, stated preference, and scenario analysis are the methods for anticipated ROI of servicescape upgrades based on the quantification of intangible values. The findings from this preliminary analysis help to identify possible methods that can be adopted in anticipating ROI based on the quantification of intangible values of servicescape upgrading.

Feasibility of Fishing Business with Purse Seine in Gentuma, North Gorontalo, Indonesia

The Purse Seine becomes a fishing gear commonly used by fishermen in Gentuma, North Gorontalo. A business feasibility analysis needs to be carried out to assess business opportunities to consider whether the business is feasible to continue or not. The components analyzed include Payback Period, Revenue Cost Ratio, Break Even Point and Return on Investment. This study aims to analyze the feasibility of the business of fishing for purse boats in North Gorontalo Gentuma. This research is based on a case study on MV. Inka Mina 730 operating in Gentuma waters, North Gorontalo. Based on the calculation of financial analysis indicators on MV. Inka Mina 730, obtained profit/loss analysis results of Rp. 388,287,988, R/C Ratio obtained 1.46, Payback Period analysis results of 4,12 means that to return the investment value it takes an interval of 4,12 years, while the BEP value is Rp. 3.220,383,810, then also obtained a BEP (kg) value of 236,382 kg, and a ROI (Return on Investment) calculation of 24%. The purse seine fishing business in Gentuma, North Gorontalo, Indonesia is feasible and profitable based on the NPV, IRR, and B/C ratio, with return on capital included in the fast return on capital category.

A return-on-investment analysis of impacts on James Cook University medical students and rural workforce resulting from participation in extended rural placements.

Although all James Cook University (JCU) medical students complete multiple rural placements, some undertake extended 5-10 month rural placements in their final year. This study uses return-on-investment (ROI) methodology to quantify student and rural medical workforce benefits of these 'extended placements' from 2012 to 2018. Forty-six medical graduates were sent a survey exploring the benefits to students and to the rural workforce from participation in extended placements, as well as estimated costs to students, deadweight (how much change would have occurred without participating), and attribution (how much change was due to other experiences). The key student and rural workforce benefits were each assigned a 'financial proxy' to allow calculation of ROI as a dollar value that could be compared with the costs to students and to the medical school. Of the graduates, 25/46 responded (54%), reporting the major benefit was 'greater depth and breadth of clinical skills'. The overall cost of undertaking extended placements for students was $60,264 (AUD), while the medical school costs were $32,560 (total costs: $92,824). Given the total value of benefits ($705,827) calculated for the key student benefit of increased clinical skills and confidence in the internship year ($32,197) and for the key rural workforce benefit of willingness to work rurally ($673,630), the ROI from the extended rural programs is $7.60 for every dollar spent. This study confirms significant positive impacts of extended placements on final-year medical students with longer-term benefits for rural workforce. This positive ROI is important evidence for shifting the conversation around supporting extended placements from one of cost to one of value.

WaterProof—A Web-Based System to Provide Rapid ROI Calculation and Early Indication of a Preferred Portfolio of Nature-Based Solutions in Watersheds

Watersheds are being degraded around the world, with dire impacts on water security. Nature-based solutions (NbS) can preserve or restore degraded watersheds, thereby addressing critical water security issues; however, there is a lack of NbS uptake and investment. This is in part due to the complexity and time required to demonstrate an NbS portfolio’s positive return on investment (ROI) for desired water security outcomes. WaterProof is a web-based decision support tool to provide a rapid ROI calculation and early indication of a preferred portfolio of NbS for any watershed in the world using Natural Capital ecosystem service models (InVEST and RiOS). WaterProof is intended to engage stakeholders interested in exploring green infrastructure solutions for local water challenges and for prioritization of locations of possible NbS water security programs. WaterProof version 1.0 is freely available and open-sourced, with clear methodology and metadata, with a user-friendly interface suitable for a wide range of potential audiences.

Barriers, Drivers, and Social Considerations for AI Adoption in Supply Chain Management: A Tertiary Study

Background: The number of publications in supply chain management (SCM) and artificial intelligence (AI) has risen significantly in the last two decades, and their quality and outcomes vary widely. This study attempts to synthesise the existing literature in this research area and summarise the findings regarding barriers, drivers, and social implications of using AI in SCM. Methods: The methodology used for this meta-study is based on Kitchenham and Charters guidelines, resulting in a selection of 44 literature reviews published between 2000 and 2021. Results: As a summary of the results, the main areas of AI in SCM were algorithms, followed by the Internet of Things (IoT). The main barriers to AI adoption in SCM are change management, existing technical limitations, and the acceptance of humans for these techniques. The main drivers of AI in SCM are saving costs and increasing efficiency in combination with reducing time and resources. The main social factor is human–robot collaboration. As a result, there will be a decreased amount of labour needed in the future, impacting many existing jobs, especially in low-income areas. Conclusions: Therefore, it is essential for organisations that implement new technology to start as early as possible to inform the organisation about the changes and help them successfully implement them. It is also important to mention that constant learning and improvement of the employees are critical for adopting and successfully using new AI tools. Before investing in new technology, a solid Return on Investment calculation (ROI) and monitoring costs and value are critical to transforming the business successfully.

A return-on-investment analysis of impacts on James Cook University medical students and rural workforce resulting from participation in extended rural placements.

Although all medical students at James Cook University (JCU), Queensland, Australia, undertake rural placements throughout their course, a proportion (currently about 20 per year out of 170-190 final-year students) undertake extended rural placements in rural and remote towns - 5-month Integrated Rural Placement (IRP) or 10-month Longitudinal Integrated Clerkship (LIC) programs. This study uses a return-on-investment (ROI) approach to quantify student and rural medical workforce benefits arising from these 'extended placements' between 2012 and 2018. Seventy-two JCU MBBS graduates participated in extended rural placements between 2012 and 2018. In 2019, 46 of these graduates who had reached at least postgraduate year 2 and provided consent to be contacted for health workforce research were emailed a link to an online survey. Questions explored the key benefits to students' development of competencies and to rural medical workforce as a direct result of student participation in the IRP/LIC activities, as well as estimations of costs to students, deadweight (how much change would have occurred without participating in an extended placement), and attribution (how much change was due to other programs or experiences). The key student and rural medical workforce benefits were each assigned a 'financial proxy' to allow calculation of ROI from 2013 to 2019 as a dollar value, compared with the costs to students and to the JCU medical school from implementing the IRP/LIC programs between 2012 and 2018. Twenty-five of the 46 JCU medical graduates who undertook an extended placement responded (response rate 54%), reporting that the most common (96%) and most important benefit (56%) from their extended placement was 'greater depth and breadth of clinical skills'. Seventy-five percent (18/24; one missing response for this question) of the respondents also reported intending to have a full-time career in rural and remote practice. The overall cost of undertaking an IRP or LIC program for students between 2012 and 2018 was calculated to be $60,264, while the cost to the JCU medical school for sending 72 students out on extended rural placements was calculated as $32,560, giving total costs of $92,824. Given the total value of benefits ($705,827) calculated for the key student benefit of increased clinical skills and confidence in the internship year from participating in an extended placement ($32,197) and for the key rural medical workforce benefit of willingness to work in a rural or remote town ($673,630), the ROI from the extended rural programs between 2013 and 2019 (after students graduated and entered the workforce) is calculated at $7.60 for every dollar spent. This study confirms that undertaking an extended placement has significant positive impacts on final-year medical students' clinical confidence, clinical skills and communication skills into their internship year. In addition, the extended placements have longer-term impacts on the non-metropolitan health workforce by inspiring more JCU medical graduates to take up rural generalist, rural general practitioner or generalist specialist positions in rural and remote towns. This positive ROI from extended rural placements is important evidence for shifting the conversation around supporting these programs from one of cost to one of value.

Automated hospital pharmacy supply chain and the evaluation of organisational impacts and costs

ABSTRACT Supply chain digitalisation equipment’s raise concerns for hospital decision-makers, especially regarding the cost-efficiency ratio, usually evaluated through health technologies assessments (HTA) at a national level or by return on investment (ROI) calculations by the hospital finance department. Unfortunately, none of the two methods identifies organisational impacts, nor hidden gains and costs, especially those that are related to the internal reallocation of resources as shows the example of automated dispensing systems (ADS) in the central pharmacy of a French hospital with a posteriori analysis from the hospital perspective. The introduction of the ADS caused some hidden costs or gains, which do not generate any financial flow and which are therefore not valued. When they are valued, as we do in this study by including them in the ROI calculation, the results change dramatically: the profitability of the investment goes from negative to positive. Given the importance of hidden gains and costs related to organisational impacts, they should be included in evaluations.

A Return on Investment Model for the Implementation of New Technologies on Wind Turbines

Renewable energy from wind and solar is considered to be the main alternative to fossil fuels. The costs of renewable energy technologies are high and without tax credits they are not currently competitive with fossil fuels in many markets. Improvements in the performance or reduction in operational costs will have significant impacts on the price of renewable energy and ultimately impact their competitiveness. New technologies targeted at improving the efficiency of the current systems or reducing their life-cycle costs will help; however, these technologies are expensive and detailed cost tradeoff and return on investment (ROI) analysis are required to make business cases for them. In this paper, we formulate an ROI model and describe its implementation in a stochastic discrete-event simulator to calculate financial tradeoffs and enable business cases for technology insertion into wind farms. The new ROI model includes changes in revenue and operations costs (including changes in reliability due to the technology insertion) and introduces the concept of identical timeline conditions to guarantee a meaningful ROI calculation. A case study for using light detection and ranging (LIDAR) to increase the efficiency and improve the reliability of wind turbines in a wind farm is provided.

Optimal allocation of static VAR compensator by a hybrid algorithm

Flexible AC transmission system (FACTS) devices are gaining popularity in electrical transmission networks for the last few years due to their ability to improve a system’s performance without restructuring or expanding the existing network. But, placing the FACTS device at any arbitrary location in the network may not be optimally beneficial. Also, judging the optimally beneficial location of these devices becomes necessary prior to investment owing to their high expense of installation and maintenance. In this paper, a novel hybrid algorithm combining Cuckoo Search Algorithm (CSA) and Chemical Reaction Optimization (CRO) is proposed to solve the problem of optimally allocating a static VAR compensator (SVC) for the standard IEEE 14-bus, 30-bus and 57-bus transmission systems under heavily loaded condition. The optimal allocation of SVC is done by considering technical aspects like voltage stability, power generation minimization and line loss reduction and also by considering commercial facets like savings on annual cost of power generation and return-on-investment (ROI) time period for the expenditure incurred on the SVC. The ROI calculation is a novel addition to the problem formulation which adds a practical outlook to the feasibility of investment. Thus, a holistic approach is followed for determining the optimal location of the SVC in the power network and the results validate the superior performance of the proposed algorithm.

Public Health Policy in Support of Insurance Coverage for Smoking Cessation Treatments.

Insurance coverage for evidence-based smoking cessation treatments (SCTs) promotes uptake and reduces smoking rates. Published studies in this area are based in the US where employers are the primary source of health insurance. In Ontario, Canada, publicly funded healthcare does not cover SCTs, but it can be supplemented with employer-sponsored benefit plans. This study explores factors affecting the inclusion/exclusion of smoking cessation (SC) benefits. In total, 17 interviews were conducted with eight employers (auto, retail, banking, municipal and university industries), four health insurers, two government representatives and three advisors/consultants. Overall, SCT coverage varied among industries; it was inconsistently restrictive and SCT differed by coverage amount and length of use. Barriers impeding coverage included the lack of the following: Canadian-specific return on investment (ROI), SC cost information, employer demand, government regulations/incentives and employee awareness of and demand. A Canadian evidence-based calculation of ROI for SC coupled with government incentives and public education may be needed to promote uptake of SCT coverage by employers.

PENGUKURAN KINERJA KEUANGAN BERDASARKAN ROI (RETURN ON INVESTMENT) DENGAN PENDEKATAN SISTEM DUPONT PADA PT. TROPICA COCOPRIMA

The purposes of this study are: (1) to analyze financial performance at PT. Tropica Cocoprima based ROI (Return On Investment) with Dupont system approach in the period 2012-2014 year, (2) Comparing the ROI (Return On Investment) on PT. Tropica Cocoprima year period 2012-2014. This study will be conducted at PT. Tropica Cocoprima which is housed in the City Hall No. 12 Manado. This study was conducted over two months, from the month of September until the month of October 2016. This study uses secondary data to be retrieved directly from the company PT.Tropica Cocoprima. Methods of data collection in this research with the study documentation in the form of financial statements of income and balance period of 2012, 2013 and 2014. The data are taken from the financial statements is the data that supports the measurement of ROI (Return On Investment), such as cost of goods sold , cost of sales, administrative expenses, tax, sales, cash, bank, accounts receivable, inventory and fixed assets. In this study, analysis of the data used is quantitative analysis by performing the calculation of ROI (Return On Investment). Regarding these calculations in this study will be conducted by a systems approach Dupont. This study emphasizes the use of data in the form of numbers that is processed and analyzed to obtain conclusions about the picture of the financial performance of the company PT. Tropica Cocoprima. Dupont system is basically used to be able to evaluate the effectiveness of the company to see how the company's return on investment. In Dupont analysis needs to be calculated: ratio of activity and profitability. Based on the results of measurements of financial performance using Dupont analysis shows that during the period 2012-2014: (1) The financial performance of PT. Tropica Cocoprima based on Return On Investment (ROI) with Dupont System Analysis approach can be said to be in stable conditions, although less stable companies still able to produce a return on the investment made. Rise and fall of Return On Investment (ROI) is caused by the rise and fall of the Net Profit Margin (NPM), Net Profit Margin (NPM) in unfavorable conditions due to net income experienced a significant decline, the decline in net income is affected by total cost increased, this increase occurred due to the increase of cost of sales, especially in the purchase of raw materials is very large. while Total Assets Turn Over (TATO) in good condition because increased during the years 2012-2014. (2) The calculation Systems Analysis Dupont also show that the percentage of Return On Investment (ROI) in 2013 better than the percentage level Return On Investment (ROI) in 2012 and 2014, and the percentage rate of return on investment in 2012 better compared Return on Investment (ROI) in 2014.

Users’ Satisfaction and Return on Investment (ROI) for Online Database Library Databases: A Malaysian Technical University Perspective

This study aimed to identify the quality of the online databases and how it impacted users’ satisfaction and their future intention to continue using the online databases. This study also investigates the library “Return on Investment” (ROI). A total of 80 users participated to yield a response rate of 29%. It is found that online databases’ quality dimensions are significantly related to users’ satisfaction and their intention to continue using online databases. Calculation of ROI based on a research grant shows a positive ratio that indicates that more benefit has been generated through the research grant.

Teaching ROI Analysis in an Era of Social Media

Measuring the financial performance of communication programs is essential, and ROI (return on investment) is the most important measure of financial performance. But university programs in advertising and marketing communication often have given little attention to ROI. The result has been complaints from business executives that graduates of these programs are inadequately prepared to conduct a financial analysis of communication campaigns. The calculation of ROI for social media campaigns is more complex than might be thought and adds to the challenge facing students. This paper describes the difficulties of performing financial analysis of social media campaigns and suggests a six-step process for teaching this important topic.

The return on investment for undergraduate degrees in hospitality and tourism management

Increasing concerns regarding the value of higher education in the United States have motivated several organizations to calculate the return on investment (ROI) for college education by employing diverse methodologies. This study evaluates these methodologies by using data from a survey of alumni of Rosen College of Hospitality Management at the University of Central Florida. The results reveal that the highly publicized low ROI for college education might be inaccurate, confusing, and misleading for several reasons, among which is the assumption of zero income while studying, causing debt to be the total of a student’s expenses. Data reveal that Rosen College graduates who work in mandatory paid internships and hold part-time jobs could be debt-free within 2 years if they pay 20% of their salary toward their debt. A more valid and reliable education ROI calculation method is proposed for the United States and other countries where students must pay tuition and acquire loans to cover their educational expenses.

Mobile Health Care Operations and Return on Investment in Predominantly Underserved Children with Asthma: The Breathmobile Program

Underserved populations have limited access to care. Improved access to effective asthma care potentially improves quality of life and reduces costs associated with emergency department (ED) visits. The purpose of this study is to examine return on investment (ROI) for the Breathmobile Program in terms of improved patient quality-adjusted life years saved and reduced costs attributed to preventable ED visits for 2010, with extrapolation to previous years of operation. It also examines cost-benefit related to reduced morbidity (ED visits, hospitalizations, and school absenteeism) for new patients to the Breathmobile Program during 2008-2009 who engaged in care (≥3 visits). This is a retrospective analysis of data for 15,986 pediatric patients, covering 88,865 visits, participating in 4 Southern California Breathmobile Programs (November 16, 1995-December 31, 2010). The ROI calculation expressed the cost-benefit ratio as the net benefits (ED costs avoided+relative value of quality-adjusted life years saved) over the per annum program costs (∼$500,000 per mobile). The ROI across the 4 California programs in 2010 was $6.73 per dollar invested. Annual estimated emergency costs avoided in the 4 regions were $2,541,639. The relative value of quality-adjusted life years saved was $24,381,000. For patients new to the Breathmobile Program during 2008-2009 who engaged in care (≥3 visits), total annual morbidity costs avoided per patient were $1395. This study suggests that mobile health care is a cost-effective strategy to deliver medical care to underserved populations, consistent with the Triple Aims of Therapy.