Technology companies determine their return on investment (ROI) by evaluating the profitability associated with their investments relative to the costs incurred. This involves analyzing factors such as increased revenues, reduced operational costs, and improved efficiency against the expenses of development, marketing, and deployment. By calculating ROI, companies can assess the effectiveness of their strategies and make informed decisions regarding future investments. This metric serves as a key performance indicator (KPI), guiding resource allocation and identifying areas for potential improvement and growth within the organization.