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Chapter Two: Methods of ROI Analysis for IT

Choosing and using the various methods of ROI analysis requires both good knowledge and good judgment: knowledge about the methods and judgment about how best to apply them to a particular IT project and its setting. This section presents an introduction to the methods. It is intended to impart enough knowledge so that the reader can exercise effective judgment about whether to use a particular method, how and to what extent it may be applied, and where to go for more complete information and resources.

We begin with a discussion of the issues associated with project time frames and scale, then present various approaches to process analysis and measurement. We conclude with a brief overview of risk analysis.