Rethinking ROI: Revenue, Operations, and Innovation
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The traditional use of the term ROI means return on investment—the result of something you’ve already done. But by then, it is too late. It’s time to rethink ROI and focus on the front end—revenue, operations and innovation—rather than the end result.
Revenue for revenue sake is dangerous. Too many chief executives are enamored with boosting the top line. The theory goes, “where revenue flows, profit will follow.” Not always, just look at Groupon, which struggled after going public because of its early high-volume/low-margin business model.