The internet is awash with vendor's ROI calculator figures. You know this very well if you are currently shopping online for costly assets. ROI and TCO are in the spotlight in purchase decisions for large IT systems, vehicles, production machines, and lab equipment. Vendors ROI Calculators in the Spotlight The vendor predicts an attractive ROI for you. Should you believe it? Vendor ROI calculator figures are also center stage when they deliver customer ROI and TCO estimates along with the sales proposal. Many vendors seem to believe that sale closing follows when they show customers attractive ROI and TCO figures. The immediate questions for customers, of course, are these: Should we trust the vendors ROI calculator? Are the vendor's TCO figures really comprehensive? Will we really see these results? To answer for your own situation, look first for the source of "returns" in the figures from the vendor's ROI calculator. Unfortunately, most vendor-produced ROI figures—most "ROI calculators" in use for sales support—know only one kind of business "return," or business benefit: cost savings. In fact, investments in costly assets can bring many other kinds of business benefits besides cost savings, and these can be large and real. But don't expect to see them in ROI figures from most vendors. Read more of this post Marty Schmidt | November 6, 2016 at 10:26 am | URL: https://www.business-case-analysis.com/blog/?p=3855 |