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Entreprise 2.0 ROI

My Response to LinkedIn question "Enterprise 2.0 Show me the ROI"


I have been used to tackle the ROI question a lot during my career and in fact while reading your question, suddenly, I see the light.

A technology or a system doesn't have a ROI : It always costs. What matters is what you are going to do with this technology : your project.

When Bernard tapie presented the first Cofidis team for the Tour de France, the best champions were in front of the press. A journalist asked : "How much does such a team cost with all these champions ?"

Bernard Tapie said : "It's not how much it costs that is important. It's how much it will return to cofidis, (and believe me it's much more !)"

(I'm not so sure about the wording but it's the idea... :-) )

What do you want to do with this technology ?

There are 2 main cases: Case 1. The technology/system is a key enabler of your project : you can't do without it. In that case the expected revenue of your entire project should exceed the technology acquisition cost which in fact is only a portion of your entire project. So the question is how much can the project cost ?

IT, Work

Case 2. The technology/system is a nice to have. The question is than, by adopting this technology, will the bottom line bring me more than the technological costs ?

So a technology/system doesn't have an ROI by itself, it will depend on what you will do with it.

Google used Web2.0 to create Gmail, a very different way to use email by searching rather than having traditional folders. The search engine was the key enabler while the Web2.0 technology was an enabler but not really a must have. But thanks to web2.0 user-friendlyness they maybe increased their number of users by let's say 5%. Those 5% represent 5% more advertising revenue. In that case, we can guess there is good ROI.

Enteprise 2.0 will most probably achieve a good ROI for companies where communication boundaries should not be an obstacle to people's creativity and expression. At IBM it allows to enable "innovation that matters"...

Last edited on Monday, October 08, 2007 at 20:28:07 pm.