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Wirearchy · Productivity in a Networked Era – Assessing ROII ...

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Saved by 9 people (0 private), first by anonymouse user on 2009-06-27


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the industrial age mindset of logic, certainty and bounded constraints to the network gestalt of interaction, self-organization, unpredictability and fewer limits to potential

Highlighted by luisalberola

ROI is an accounting and financial management concept businesses use to decide where to make investments and to assess the success of investment decisions after the fact. ROI reduces both return — R, what you expect back — and investment — I, what you expect to put in to numbers — making it possible to compare one investment opportunity to another. The numbers tie back to categories on the balance sheet and income statement, (i.e. tangible assets and hard-dollar returns).

Highlighted by bertrandduperrin

In the network era, things you can’t see are more valuable than things you can.

Highlighted by luisalberola

Measuring intangibles involves making judgment calls, so managers often exclude intangibles from their ROI calculations. Several purported authorities on calculating ROI suggest taking intangibles into account by putting them on a list but refusing to estimate their value. This leads you to comparing numbers to words, apples to oranges. 

Highlighted by bertrandduperrin

Executives manage immeasurable things all the time. The more powerful the executive, the more likely he or she is involved in effectiveness — doing the right things rather than doing things right. Intuition, judgment and gut feelings guide these more important decisions. Qualitative assessment often can make up for a concrete numeric result.

Highlighted by bertrandduperrin

Intangibles travel via networks, and networks are the infrastructure for doing business in the future

Highlighted by luisalberola

An overarching caveat here: Strategist and practitioner Stuart Henshall said trust is critical. “It’s the one qualitative factor all networks depend upon.”

Highlighted by luisalberola

In the future, organizational effectiveness will be defined by the interaction of workers in a networked environment

Highlighted by luisalberola

The answer is to improve the corporate network as a continuous process, not as a project with a hurdle rate. Improving network performance need not be all-or-nothing

Highlighted by luisalberola