When you look up the definition of ROI (Return on Investment) on the Web, the definition is quite clear:
“Return on investment (ROI) is a ratio between net profit (over a period) and cost of investment (resulting from an investment of some resources at a point in time). … In economic terms, it is one way of relating profits to capital invested.”
Still, one of the problems with this definition is its simplicity. After all, how do you measure investments in infrastructure projects that typically do not return a profit? While they may improve the resiliency of a service and minimize the potential for failure, the results cannot be reflected as profit. This technical note will further explore ROI for infrastructure projects.