Posted by: Naif Sheshah | September 20, 2011

How to Calculate ROI for Enterprise 2.0 projects?

Enterprise 2.0 tools have been used wildly in global business but the ingoing question was what values can Enterprise 2.0 tools add to business. However, the answer will be different for organisation to other but in general we can say that business through using  wikis , blogs and  social networks organisation gets number of benefits such as  extra customers and brand loyalty which will led grows revenue  it also saved money by making employees more efficient.

A good example for that is TransUnion Company they save around 2.5 million in five month while spending about $50,000 on a social networking and this saving comes from buying less stuff. As result of that companies reconnaissance the increasing in implementing Enterprise 2.0 tools required sold returns on investment measurement mouthed

Return on investment (ROI), is used to determine how much cash the company earn form a project. To do so, it essential to know what is your target and chooses the appropriate formula. Companies required to finger out how much the Enterprise 2.0 project will cost and how much it will save. For example, if the implantation of Enterprise 2.0 project will cost $20000 and it was estimated during the tow year the company will save 1200000$. This can be calculated by using the fallowing formal:

 (Gains from investment – Costs of investments) / Costs of investments * 100

However, there are large number of formals that can be used depend in what you want to measure and the nature of the project. Each of theses formals required different type of information. Moreover, Idealizes Model of ROI can be useful guide that demonstrate the relationship between value and cost explaining factor that my play impotent role while calculate ROI for Enterprise 2.0 projects consider both aims and resources Which facilities the understanding of all element  related to the project.

In Short, it clear that Enterprise 2.0 brings value for both company and employee that will improves the overall organization performance. As a result it is important that companies find the right tool to apply in order ensure that all parity are happy with implanting Enterprise 2.0 within the company. So, using ROI are essential for measure the technology’s success for businesses in terms of Soft and hard benefits

What are the Soft and hard benefits for implementing Enterprise 2.0 in Company?



  1. Obviously organizations have to adopt Enterprise 2.0 tools if they want to gain great benefits such as increase revenue and improve productivity of their employees. Also you have provided a great example with good ROI explanation. Thanks

  2. Yp, that true Enterprise 2.0 is powerful way of improvement for both companies and employees

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