Why Measuring Tech ROI Can Be Complicated and How to Simplify It - BBN Times

For a multitude of reasons, organizations may find it challenging to calculate their actual earnings from technological investments.

These investments include the implementation of AI and other automation technologies to make daily work operations more efficient. To understand the true ROI of AI, organizations must ask themselves three key questions.

The task of accurately evaluating the returns on the implementation of AI and other automation technologies is different from calculating the ROI in other areas such as material procurement and packaging. Firstly, AI and other technologies are present in several areas of an organization (even the lesser-known ones), so it is hard to get a measure of their actual scope. Additionally, organizations need to decide the type of returns (monetary, qualitative or efficiency-based) they are trying to note down.

There are some issues that may prompt organizations to second-guess themselves while measuring the ROI of AI and other IT systems. These issues can be:

a) No ‘Correct’ Starting Point

There are no fixed points while calculating the IT ROI of your organization. As stated earlier, AI may be present in so many aspects of your organization that it is hard to keep track of its true influence on your revenues.

b) Intangible Qualities

There are certain things that cannot be measured. For example, how AI gives you a head start for your business operations. This is an attribute that can be measured in time, not money. As a result, there...

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