The concepts of return on investment (ROI) and total cost of ownership (TCO) have been used for decades in enterprise evaluations of IT investments, including enterprise resource planning (ERP) systems. However, with the emergence of important new technological advances, executives are now expanding these traditional formulas to account for new opportunities. Learn more about their new methods for measuring ERP value.
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is out, and real accounting is in, he says. Although ROI has been the go-to metric that is most understood by CFOs and CIOs, it's a very internally focused point of view, and that can be myopic, Fillios says. They need a more well-rounded analysis. TCO is another popular metric that should not be taken alone. That metric is not very meaningful here, says Beth Gold- Bernstein, chair of ebizQ, a Web portal for information on the topic of business and IT agility. It doesn't take into account all of