Technological innovation and its estimation through ROITI

Abstract

The technological revolution has impacted the whole industrial world, and it brought to formalize the concept of Industrie 4.0. This phenomenon has been widely studied in the literature, especially in reference to the estimation of the IT phenomenon's effects on companies’ performance. From a conceptual point of view, according to the empirical evidence of the field, we have shifted from the productivity paradox  to a new productivity paradox (Anderson et al, 2003), which makes larger profits than expected. In mathematical and economic models applicable to the estimation of IT return on investment is important the declination of ROI based on a direct approach evaluating not the return on the total enterprise investment, but only the contributions (expenditures and prospective savings) related to the implementation of the information system in company complex. New technologies enable to improve the business performance, in reference to the application of both CRM  systems and artificial intelligence. This improvement can be estimated through Return on Information Technology Investment.