Investing
How to Get More Value From Your Technology Investments
Published by Jessica Weisman-Pitts
Posted on November 14, 2023
6 min readLast updated: January 31, 2026
Global Banking & Finance Review®
Company
Published by Jessica Weisman-Pitts
Posted on November 14, 2023
6 min readLast updated: January 31, 2026
As a business owner, technology acquisitions are a kind of investment. You’re spending money in exchange for tools and systems that can help your business flourish, often in more than one way.
There’s no inherent guarantee that all your technology investments will be fully “worth it.” So what steps can you take to get more value out of those investments and secure a higher return on investment (ROI)?
According to Cetaris, the ROI of a piece of software, like the ROI of any investment, is calculated using measurements of both the cost and the benefits of the investment. It’s debatably the most important metric for determining how much value a given piece of technology gives you.
If you could concretely measure both sides of the equation, you would end up with a clear picture of whether this piece of technology is a source of value to your organization, and exactly how much value it provides, relative to how much you’re spending on it.
For example, let’s say you buy a piece of software for $100 a month, and it gives you $200 of value every month. That’s a return on investment of 100 percent (or 200 percent, depending on how you want to describe it), and clearly a demonstration that this piece of software is valuable.
But what if there’s a piece of software out there that does something similar for just $80 a month, and because it’s easier to use, you speculate that it’s capable of giving you $240 of value every month. Now we’re looking at a return on investment of 200 or 300 percent (again, depending on how you want to describe it). Obviously, this piece of technology is superior.
ROI is useful because it forces you to answer the question of value as objectively and specifically as possible. It also eliminates some of the problems associated with estimating value, such as being blinded to the costs; if a piece of technology gives you $10,000 worth of value, it’s not automatically valuable, as costs above $10,000 could constitute a net loss.
To get more value out of your technology investments, you need to tip the ROI equation in your favor. You can do that either by reducing the cost side of the equation or increasing the value side of the equation. We’re going to explore both options, as using both together tends to produce even better results.
On the cost side of the ROI equation, there are several measures you can take to facilitate reductions:
What about the value side of the equation?
These are your most important tips for success:
If you want your technology investments to pay off, you need to make sure they return ample value to your organization. Staying aware of ROI, reducing costs, and increasing value are the best tools in your arsenal for accomplishing this.
With higher awareness and more tactical decision making, you should end up with much better technologies at the foundation of your business.
ROI, or Return on Investment, is a financial metric used to evaluate the profitability of an investment. It is calculated by dividing the net profit from the investment by the initial cost.
A minimum viable product (MVP) is a basic version of a product that includes only essential features. It is used to test a concept and gather user feedback before full-scale development.
Technology acquisition refers to the process of obtaining new technology or systems to improve business operations. It involves evaluating, purchasing, and implementing technology solutions.
Cost management is the process of planning and controlling the budget of a business or project. It involves estimating, budgeting, and monitoring expenses to ensure financial efficiency.
Value maximization is a strategy aimed at increasing the worth of a business or investment. It focuses on enhancing revenue and reducing costs to improve overall profitability.
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