NON-TRADITIONAL CALCULATION OF ROI: Using Collaborative BUSINESS RE-ENGINEERING

ROBERT S. PUTRUS, PE, CMC, CFE

This paper introduces a creative approach to the calculation of Return-on-Investment (ROI) that is based on business re-engineering approach of an enterprise initiative that enables companies to realize quantum benefits. The approach is based on a methodology that is easy to understand and execute, fast to implement, quantitative in nature, and sensitive to corporate politics.

The approach is a process that can assist company management in performing business analysis and justification based on company objectives and critical success factors. Management can make great use of this process by determining investment opportunity contributions, pay back and priority for each one of the business objectives. The outcome of this process serves as management guidelines for investment and allocation of resources such as investment capital and human resources. Also, this approach helps ensure that management has communicated and developed a consistent understanding of the company business objectives. The approach provides a communication tool as well as a structure for investment opportunities, business re-engineering and management aided decisions.