Simplified Return on Investment or how to assess the intangible benefits of a project
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40 min
Sometimes product owners and analysts have to answer questions:
- What do we get out of implementing your system?
- How can we benefit from your product?
How do you answer these questions if there is no direct financial benefit to your product and the acquisition costs are not quickly recouped? How do you understand your customers' goals and come up with methods for measuring intangible benefits? How do you show customers the value of using your product?
When complete and reliable data for calculating ROI is not available, another approach can be used that rejects the idea of calculating ROI in absolute terms and focuses on more specific calculations, such as the Simplified Return on Investment (SROI) approach that considers various criteria (economic, quality and efficiency) for projects.