Managerial Accounting
Managerial Accounting
Reality Check Summaries
Professor Shin
Hee-Lim Shin
1001006
Reality Check – What’s your blog’s ROI?
Summary
ROI has been always one of the important factors to determine how profitable the business is doing. However, for until last few decades, ROI was only implementing to evaluate the hard assets like buildings and equipment. But in nowadays, many companies are using ROI to evaluate the investment in technology, such as blog. As a following example, it shows that ROI on a new software project is certainly one step toward gaining corporate approval and funding. This article states the example of General Motors’ FastLane blog (http://fastlane.gmblogs.com/). General Motors get benefits from the blog in terms of providing valuable customer insights and suggestion, and media coverage which increases brand awareness. In addition, the article explains the importance and the difficulties of calculating the ROI, mentioning still a lot of firms are struggling with how to get exact estimation of ROI. However, article is saying that although it is still hard work to many firms to calculate an exact ROI, this process is essential step as a company to start eCommerce investment.
Opinions
The fact in the article that the General Motor’s blog’s ROI was 99% in 2005 and 61% in 2006, indicate that company is investing more budget in 2006 compare to 2005. This result the blog with more complicates programs. Why is this happening? It is due to an increase of peoples’ internet usage, and they want more information through internet, the usage of blog is getting more diversity. Thus the increase of Company’s investment on developing new systems of blog is necessary in order to meet the customer’s need. Today, blogging has become an important tool in part of marketing, other than just a place to state the information about company’s products; it evolved into the place where the companies communicate with the customers back and forth, a tool to
Reality Check Summaries
Professor Shin
Hee-Lim Shin
1001006
Reality Check – What’s your blog’s ROI?
Summary
ROI has been always one of the important factors to determine how profitable the business is doing. However, for until last few decades, ROI was only implementing to evaluate the hard assets like buildings and equipment. But in nowadays, many companies are using ROI to evaluate the investment in technology, such as blog. As a following example, it shows that ROI on a new software project is certainly one step toward gaining corporate approval and funding. This article states the example of General Motors’ FastLane blog (http://fastlane.gmblogs.com/). General Motors get benefits from the blog in terms of providing valuable customer insights and suggestion, and media coverage which increases brand awareness. In addition, the article explains the importance and the difficulties of calculating the ROI, mentioning still a lot of firms are struggling with how to get exact estimation of ROI. However, article is saying that although it is still hard work to many firms to calculate an exact ROI, this process is essential step as a company to start eCommerce investment.
Opinions
The fact in the article that the General Motor’s blog’s ROI was 99% in 2005 and 61% in 2006, indicate that company is investing more budget in 2006 compare to 2005. This result the blog with more complicates programs. Why is this happening? It is due to an increase of peoples’ internet usage, and they want more information through internet, the usage of blog is getting more diversity. Thus the increase of Company’s investment on developing new systems of blog is necessary in order to meet the customer’s need. Today, blogging has become an important tool in part of marketing, other than just a place to state the information about company’s products; it evolved into the place where the companies communicate with the customers back and forth, a tool to