how do I calculate ROI?

[jhonovich 0]

Have you read a vendor's literature and wondered if there ROI calculations are accurate?

 

Have you been asked to make an ROI calculation to justify a purchase?

 

 

I notice that there is a lot of talk about ROI calculations but not enough good information on how to calculate one.

 

I wrote a review to help: http://ipvideomarket.info/review/show/83

 

Here are the 4 main principles I identify:

 

- Understand the alternative to this proposed investment

- Understand the full cost

- Understand the technological deficiencies of this investment

- Verify that operational assumptions are correct

 

 

Do you provide ROIs to customers? If so, how do you do it? Have there been any issues you have seen with it?

 

Best,

 

John

[jonnybb1 0]

With the economy going the way it is, security systems are becoming as vital as communications...

[jhonovich 0]

To the extent that crime is or will be increasing, the value of security should increase.

 

However, I am not sure that this will help sales of new CCTV systems. Recessions usually result in companies decreasing capital expenditures. As a new system or an upgraded system is certainly a capital expenditure, I think there will be pressure by many to make due with what they currently have.

 

Thoughts?