Return on Investment (ROI)

Return on Investment (ROI)

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Term2.png RETURN ON INVESTMENT (ROI)
The profit or loss resulting from an investment transaction, usually expressed as an annual percentage return. ROI is a return ratio that compares the net benefits of a project with its total costs. Decision makers evaluate the investment by comparing the magnitude and timing of expected gains to the investment costs. Return on investment enables organizations to make investments in learning solutions with the expectation that the solutions will have a measurable impact on performance by achieving specific business outcomes. Measuring the value of learning solutions help organizations to demonstrate the return on investment they make in training. In addition, organizations that measure training are able to increase the contribution of their learning solutions using continuous improvement processes that drive higher levels of return through enhanced performance over time. [1]



References

  1. whitepapers.zdnet.com ( 28 July 2008), www.venturechoice.com ( 28 July 2008), http://solutionmatrix.com (28 July 2008)