Return On Investment Calculations Research Articles

Digital Marketing Metrics and ROI Analysis: Evaluating Effectiveness and Value

In the rapidly evolving landscape of digital marketing, businesses are increasingly focusing on measuring the effectiveness of their strategies and evaluating the return on investment (ROI) to optimize their marketing efforts. This paper explores the critical metrics and methodologies used to assess digital marketing performance and ROI. Key performance indicators (KPIs) such as website traffic, social media engagement, email open rates, and paid advertising costs are examined for their role in providing actionable insights. The paper also delves into advanced ROI analysis techniques, including basic ROI calculations, customer lifetime value (CLV), and attribution models, to demonstrate how businesses can accurately measure the impact of their digital marketing investments. Through detailed case studies, this paper highlights practical applications of these metrics and analysis methods, showcasing their effectiveness in real-world scenarios. Challenges associated with digital marketing measurement, such as data accuracy and attribution complexities, are discussed, along with best practices for overcoming these obstacles. The findings underscore the importance of a comprehensive approach to digital marketing metrics and ROI analysis, providing businesses with the tools and insights necessary to enhance their marketing strategies and achieve sustainable growth. This paper contributes to a deeper understanding of how digital marketing metrics can be effectively used to drive decision-making and maximize marketing value.

ROI Analysis of RFID-Based Intelligent Inventory Management Systems

This paper investigates the return on investment (ROI) of RFID-based intelligent inventory management systems. RFID (Radio Frequency Identification) technology has revolutionized inventory management by providing real-time visibility, improved accuracy, and enhanced operational efficiency. The study employs a mixed-methods approach, integrating both qualitative insights from industry experts and quantitative data from surveys and existing literature. Initial setup costs, ongoing maintenance expenses, and tangible and intangible benefits are thoroughly analyzed. The findings reveal that while the initial investment in RFID technology can be substantial, the benefits in terms of reduced labor costs, minimized inventory shrinkage, and improved inventory accuracy significantly outweigh the costs. ROI calculations, including payback period and net present value (NPV), demonstrate the economic viability of RFID systems. Comparative analysis shows that RFID systems outperform traditional inventory management systems, especially in sectors such as retail and healthcare. This paper provides a comprehensive framework for evaluating the ROI of RFID technology and offers practical recommendations for businesses considering its adoption.

Analyses of the return on investment of public health interventions: a scoping review and recommendations for future studies

Return on investment (ROI) analysis is increasingly being used for evaluating the value for money of public health interventions. Given its potential role for informing health policies, it is important...

Demonstrating the Value of the Clinical Nurse Specialist: A "How-to" Guide.

The purpose of this article is to provide a guide to identifying measurements of value and how to calculate different types of return on investment (ROI). Exemplars of clinical nurse specialist (CNS) work efforts with ROI will be presented. The CNS is the oldest advanced practice role; however, the role can be vague, making it difficult to articulate the value of the CNS in the organization. Functioning in 3 spheres of impact, the CNS can easily impact practice; however, demonstrating the value of this work is not always on top of mind and is rarely taught in academic programs. This article describes the difference between revenue generation, cost savings, and cost avoidance, as well as various structural, process, and outcome measures that can be used to calculate ROI. Resources available for performing ROI calculations will be described and shared. Distributing work across the 3 spheres creates various opportunities for the CNS to demonstrate value; however, the CNS must be able to articulate that value to the organization. Developing the skill set to consistently identify metrics can be challenging; however, it is critical to the ongoing success and future of the CNS role. Utilizing these metrics to demonstrate the value and then disseminating the outcomes of these contributions will continue to promote the value of the CNS in the future.

Digital value creation in German SMEs – a return-on-investment analysis

Implementation of digital technologies requires financial resources to create value. These resources are more limited in small and medium-sized enterprises (SMEs), and digital use cases or best practices are not well known. Therefore, the purpose of this qualitative study was to investigate how SME managers are adding value and achieving a measurable return on investment (ROI) by using certain digital technologies. The results of this study were derived from 48 in-depth expert interviews conducted within cross-sectoral SMEs in Germany. The findings showed a set of 57 ROIs based on multiple digital use cases. Here, digital solutions either increased revenue through higher sales and new business models or cut operational expenditure (OPEX) and personnel costs. This study’s weighted digital ROI average was 33.77, with a median of 5.29. The results emphasize the need to implement digital solutions, offer robust guidelines to support SMEs with their digitization strategy and help measure the tangible value of digital projects. Moreover, the suggested technologies and added value can be used as benchmarks. As this study examines the impact of digital transformation on SMEs’ business performance, the research is novel, and the presented ROI calculations are original. The findings enrich the literature on entrepreneurial SMEs.

What does return on investment (ROI) mean to the pharmaceutical/biotechnology industry?

Return on investment (ROI) calculations are common tools used by pharmaceutical and biotechnology companies in evaluating product returns, guiding decisions on further product development or terminating programs prior to company losses. ROI calculations compare the estimated profits from a product to the investments necessary to get the product developed, approved and marketed. Risk factors are incorporated into the ROI, which consider multiple factors including competitor products and market demand. ROI calculations enables a company to set and apply metrics for the evaluation of projects that can be applied consistently, across a portfolio, and goes beyond simple profitability assessments. When coupled with additional financial tools and strategic evaluations such as strengths, weaknesses, opportunities and threats (SWOT) analysis, ROI can provide invaluable and comparable insight into the value of potential projects and products. Here, we present a framework for executing ROI calculations to enable investment or termination decisions for research and development projects. This is augmented with insight on how to apply the framework to academic, government and NGO evaluations where ‘profits’ are not always measured in purely economic terms. Implementing ROI in the evaluation process facilitates go/no go decisions and the comparison of projects using a simple, consistent financial approach.

Engineering the Financialization of Urban Entrepreneurialism: The JESSICA Urban Development Initiative in the European Union

AbstractUrban entrepreneurialism and neoliberal urban governance are assuming new forms under finance‐dominated accumulation. We examine and contribute to theorizing the mechanisms through which urban governance is financialized, taking as a case study JESSICA, one of the European Union's initiatives to implement an ‘urban sensitive’ policy for sustainable and integrated development. Like other initiatives promoting financialization, JESSICA deploys the logic of finance to select and fund urban social initiatives and development projects on the basis of their potential return on investment (ROI). Understanding this process requires placing questions of political economy—how urban governance is shaped by the broader political‐economic context—with questions of governmentality—how stakeholders are enrolled in and come to take for granted new governance initiatives. Following the multi‐scalar institutional infrastructure is crucial to understanding how this works. Taking a relational multi‐scalar approach, we trace how changes at the supranational scale filter down to shape urban policy selection and performance in Sofia, Bulgaria, where we document how ROI calculations conflict with social welfare priorities. Contrasts between the trajectory of financialization of urban governance in the European Union and the United States demonstrate how this is geographically variegated, shaped by the broader context/conjuncture within which such financialization is embedded.

Return on investment from fuel treatments to reduce severe wildfire and erosion in a watershed investment program in Colorado

A small but growing number of watershed investment programs in the western United States focus on wildfire risk reduction to municipal water supplies. This paper used return on investment (ROI) analysis to quantify how the amounts and placement of fuel treatment interventions would reduce sediment loading to the Strontia Springs Reservoir in the Upper South Platte River watershed southwest of Denver, Colorado following an extreme fire event. We simulated various extents of fuel mitigation activities under two placement strategies: (a) a strategic treatment prioritization map and (b) accessibility. Potential fire behavior was modeled under each extent and scenario to determine the impact on fire severity, and this was used to estimate expected change in post-fire erosion due to treatments. We found a positive ROI after large storm events when fire mitigation treatments were placed in priority areas with diminishing marginal returns after treating >50–80% of the forested area. While our ROI results should not be used prescriptively they do show that, conditional on severe fire occurrence and precipitation, investments in the Upper South Platte could feasibly lead to positive financial returns based on the reduced costs of dredging sediment from the reservoir. While our analysis showed positive ROI focusing only on post-fire erosion mitigation, it is important to consider multiple benefits in future ROI calculations and increase monitoring and evaluation of these benefits of wildfire fuel reduction investments for different site conditions and climates.

Managing IT Change—Return on Investment (ROI) as a Motivational Tool

Previous articles in this series have provided examples for management accountants to understand integrated business processes and the role that they play. In a world where enterprise resource planning (ERP) applications define the operation of integrated business functions, understanding and interpreting the financial results becomes a more operational role. In this article, the authors extend this view to the implementation program itself, whether initial implementation or continuing additions. While ROI calculations are widely understood for evaluating and managing capital investments, the role they play in change management is often undervalued. While identifying and accurately measuring these can be challenging, not developing them handicaps program teams' ability to engage employees to provide critical support. This article discusses revenue and cost functions that are normally affected by the conversion to integrated business processes. Along with this analysis, how these areas are defined, estimated, and tracked becomes more important to project success. Most of the changes discussed in previous articles are implemented to improve efficiency and effectiveness of business processes. Taking the time to establish not only the metric itself, but also the measurement approach can be a key role that management accountants play both for executive leadership and for change management within the implementation program. © 2017 Wiley Periodicals, Inc.

Evaluating investment in quality improvement capacity building: a systematic review

PurposeLeading health systems have invested in substantial quality improvement (QI) capacity building, but little is known about the aggregate effect of these investments at the health system level. We conducted...

The Effect of Inverter Failures on the Return on Investment of Solar Photovoltaic Systems

Return on investment (ROI) analyses of solar photovoltaic (PV) systems used for residential usage have typically shown that at least 10 to 12 years is needed to break even, with this amount varying based on tax credits and reliability. This paper discusses the challenges with the reliability of current solar photovoltaic systems and the key reliability bottlenecks, with a focus on the ROI. The problem stems primarily from reliability issues of currently available power electronics hardware. This paper’s analysis of failure data shows that the short warranties and reliability concerns associated with solar PV inverters reduce the long-term ROI of residential solar PV systems by up to 10%. This paper, therefore, provides key insights for accurate ROI calculations for solar PV investments. Furthermore, methods to improve the reliability of PV inverters, such as selection of capacitors, inverter topology, and incorporating wide-bandgap semiconductor devices, are presented.

The social surplus of broadband initiatives in compulsory education

In 2010, the New Zealand government embarked upon an ambitious programme of broadband infrastructure investment, a process that will continue until at least 2019. Part of this investment is specifically targeted at compulsory education, with initiatives that include bringing fibre connections to the school gate, supporting on-site network upgrades (including wireless) and providing teaching, learning and support services delivered through these networks. Such investments are not made without some projections of the likely rate of return, but calculating return on investment (ROI) in educational broadband is complex, as it encompasses a range of factors. This article reports on an interview-based study engaging a range of stakeholders in educational broadband provision. The study utilises a research model that considers the various elements of social surplus, namely; producer surplus (savings), producer surplus (profit) and consumer surplus (perceived value over and above cost), to explore the elements of social surplus that have been used to define educational broadband ROI calculations and justify the scale of investment. The results indicate that all three components of social surplus are relevant, though the concept of profit can only be seen in the broader context of long term contributions to the economy. A note of caution is that projections of ROI based only on positive returns fail to acknowledge the potential for some innovations to actually increase costs. Further, purely quantitative models do not properly take into account qualitative components of consumer surplus.

Economic Evidence for US Asthma Self-Management Education and Home-Based Interventions

The health and economic burden of asthma in the United States is substantial. Asthma self-management education (AS-ME) and home-based interventions for asthma can improve asthma control and prevent asthma exacerbations, and interest in health care-public health collaboration regarding asthma is increasing. However, outpatient AS-ME and home-based asthma intervention programs are not widely available; economic sustainability is a common concern. Thus, we conducted a narrative review of existing literature regarding economic outcomes of outpatient AS-ME and home-based intervention programs for asthma in the United States. We identified 9 outpatient AS-ME programs and 17 home-based intervention programs with return on investment (ROI) data. Most programs were associated with a positive ROI; a few programs observed positive ROIs only among selected populations (eg, higher health care utilization). Interpretation of existing data is limited by heterogeneous ROI calculations. Nevertheless, the literature suggests promise for sustainable opportunities to expand access to outpatient AS-ME and home-based asthma intervention programs in the United States. More definitive knowledge abouthow to maximize program benefit and sustainability could be gained through more controlled studies of specific populations and increased uniformity in economic assessments.

The state of information security towards the close of the first decade of the 21 st century

Return on Investment (ROI) are three words which are expected to kindle executives’ interest in security. And there are ample ROI calculations available – mathematical formulae have been written along with books to produce that Holy Grail equation. But monthly columnists Dario Forte and Richard Power strongly dismiss ROI this month – saying security is a necessary overhead and shouldn’t have to earn its keep until disaster strikes. “Unless you can show us ROI for fire extinguishers, locked doors and burglar alarms, ROI for information security is a sham,” say Power and Forte. Experts Power and Forte look at the highs and lows of IT security.

Evaluating outdoor experiential training for leadership and team building

Advocates of outdoor experiential training (OET) fervently believe in its efficacy, but often have difficulty mustering “hard data” on the business results attributable to OET. OET adherents tend to rely on testimonials of how it promotes leadership and team development. Return on investment (ROI) analysis is perhaps the best way to demonstrate the impact of OET. ROI calculations treat leadership and team development training expenditures as an investment and evaluate the financial returns to an organization relative to that investment. This paper outlines a model by which the ROI of OET can be calculated, and encourages research in this area.

Commentary: senior-serve: an ethical case study

A small but growing number of watershed investment programs in the western United States focus on wildfire risk reduction to municipal water supplies. This paper used return on investment (ROI) analysis to quantify how the amounts and placement of fuel treatment interventions would reduce sediment loading to the Strontia Springs Reservoir in the Upper South Platte River watershed southwest of Denver, Colorado following an extreme fire event. We simulated various extents of fuel mitigation activities under two placement strategies: (a) a strategic treatment prioritization map and (b) accessibility. Potential fire behavior was modeled under each extent and scenario to determine the impact on fire severity, and this was used to estimate expected change in post-fire erosion due to treatments. We found a positive ROI after large storm events when fire mitigation treatments were placed in priority areas with diminishing marginal returns after treating >50–80% of the forested area. While our ROI results should not be used prescriptively they do show that, conditional on severe fire occurrence and precipitation, investments in the Upper South Platte could feasibly lead to positive financial returns based on the reduced costs of dredging sediment from the reservoir. While our analysis showed positive ROI focusing only on post-fire erosion mitigation, it is important to consider multiple benefits in future ROI calculations and increase monitoring and evaluation of these benefits of wildfire fuel reduction investments for different site conditions and climates.

Corporate competitiveness and information technology

The analysis of investment in information technology (IT) appears quite different from that applied to other types of investment. Corporate managers have difficulty in evaluating investment in IT, especially Return on Investment (ROI). There is an increasing need for frameworks and techniques for formulating strategies for IT and for evaluating investment in it. The principal problem in using ROI calculations is measuring the benefits of IT technology and its effect on corporate competitiveness. In this article, Hans Björnsson and Roger Lundegård suggest a more appropriate framework for evaluation.