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Return On Investment (ROI) used to evaluate the efficiency of an investment in finance and economics. Most forms of ROI analysis compare investment returns and costs by constructing a ratio, or percentage.

The computation formula of ROI can be:

 ROI = Annual return / Investment cost ×100%

The formula can be modified which depends on what you include as returns and costs.

ROI can be easily calculated, but it does not consider the factor of the time value of money, which is lack of Overall Viewpoint.

There is a good blog about Maslow’s Hierarchy of Enterprise 2.0 ROI

The pyramid provide us with a clear view of a variety of benefits caused by implementing Enterprise 2.0.

Implementing Enterprise 2.0 is a kind of investment. As the Enterprise 2.0 still in the early stages, many community mangers are looking for more detailed guide of how to measure the benefits of Enterprise 2.0.

I have posted a blog about the benefits of implementing Enterprise 2.0 before. It can be seen that the benefits include Enhance productivity and efficiency, engagement, knowledge and reputation.

For explame, how to calculate the ROI at the aspect of the employee engaement? I found a blog which give a method.  According to the post, many companies already measure the level of employee engagement by aggregating engagement ratings. Through the use of regression analysis (a mathematical way to model relationships), calculate what impact an employee level of activity in the network (the independent variables) has on his engagement score (the dependent variable).

P.S. There is a case about the ROI of Enterprise 2.0:

The ROI of Enterprise 2.0: Four Ways Wachovia Justified Wikis, Blogs and Other Social Networks

How to Estimate Your Social Media Return on Investment


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