Rethinking ROI and Value When Making Technology Decisions

These days, higher education leaders are under constant pressure to demonstrate return on investment (ROI), especially when it comes to technology purchases. One might think that evaluating ROI would be a relatively straightforward proposition, like it is in corporate finance or retail, where returns can be tracked against revenue growth or cost savings. But when it comes to technology modernization, the traditional formula — ROI = (Net Benefit / Investment Cost) x 100 — falls short. Especially for higher education technology, modernization doesn’t always pay off in year one, and value isn’t only measured in dollars. That leaves decision-makers like CIOs, CFOs, and college presidents wrestling with the same question: How do you calculate ROI when the returns go beyond dollars and cents?

The latest white paper from The Tambellini Group, “Beyond the Bottom Line: Redefining ROI in the Era of Higher Ed Modernization,” suggests a broader definition of ROI. Below, we examine some highlights from the white paper and identify a few ways institutions can begin rethinking ROI.

Where ROI Calculations Fall Short

Efforts to modernize technology often fail to deliver the expected return on investment, and The Tambellini Group identifies several common reasons why. Siloed decision-making, misalignment between tools and talent, and a focus on short-term gains can all undermine an institution’s ability to realize meaningful ROI.

To counter these challenges, the report recommends that institutions take a strategic, long-term approach: Build cross-functional alignment from the outset, ensure staff are trained or recruited with digital-first skills, and treat modernization as they would a new campus building—a sustained investment in relevance, resilience, and future readiness.

This perspective sets the stage for a broader understanding of ROI—one that goes beyond simple cost calculations and incorporates multiple dimensions of institutional value.

Strategic, Operational, Cultural, and Opportunity ROI

According to The Tambellini Group, there are four main types of ROI that institutions should consider when evaluating a technology purchase.

• Strategic ROI: How well does modernization align with the mission, improve future readiness, or help differentiate the institution?
• Operational ROI: Does it deliver measurable gains in process efficiency, data access, and user satisfaction?
• Cultural ROI: Will this technology encourage innovative thinking, and will it positively impact the accountability and responsiveness of staff, faculty, and students?
• Opportunity ROI: What are the costs of inaction — from missed enrollment and lost funding to inefficiencies that erode staff capacity and morale?

In other words, true ROI is not just about dollars saved or spent—it’s about the long-term benefits a technology brings to the institution, its people, and its students. Recognizing these broader dimensions helps colleges and universities make more informed, strategic decisions and ensures that modernization efforts deliver value well into the future.

ROI = Return on Innovation

 As The Tambellini Group’s analysis makes clear, modernization is not just about technology — it’s about people, processes, and long-term competitiveness. The institutions that succeed will be those that measure ROI not just in financial terms, but as returns on innovation, impact, and institutional relevance.

You can read the full white paper, “Beyond the Bottom Line: Redefining ROI in the Era of Higher Ed Modernization” here. Also be sure and register for our upcoming webinar on September 30 at 2:00 PM to learn how to apply these insights on your campus.