Build the ROI equation with full costs

I use a simple equation so the discussion stays concrete.

ROI = (Value_of_outcomes – Total_costs) / Total_costs

Value_of_outcomes = (time_saved * loaded_cost) + revenue_uplift + loss_avoidance
Total_costs = build_costs + run_costs + governance_costs + change_management_costs

Build costs include engineering, platform work, evaluation, security reviews, and integration with systems of record. Run costs include inference, retrieval, storage, monitoring, incident response, and vendor costs. Governance costs include audits, red-team exercises, and policy maintenance. Change management costs include training, workflow redesign, and support during adoption.

Teams underestimate run costs early. They also underestimate the effort required to keep a system stable as models and data sources evolve.