What does Return on Investment (ROI) primarily measure?

Return on Investment (ROI) primarily measures the monetary benefits resulting from previous investments. This financial metric is crucial in assessing the effectiveness of the resources allocated to various projects, including educational technology. By calculating ROI, educational leaders can determine whether the financial returns of an investment justify the initial costs. This assessment helps inform future investment decisions and ensures that funds are utilized effectively to enhance educational outcomes.

The focus on monetary benefits emphasizes the need to evaluate not only how much was spent but also how those expenditures translate into tangible gains, such as improved student performance, increased operational efficiencies, or enhanced teaching capabilities. A positive ROI indicates that the investment is yielding benefits greater than the costs, making it a fundamental concept for leaders in educational technology to grasp in their planning and implementation efforts.