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How much??? Assessing Software Return on Investment
Businesses are aware that the right software is important because it helps increase productivity, gives a competitive edge and opens up new opportunities. However buying new software for your business can be a costly proposition, making a quantifiable Return on Investment (ROI) justification all the more essential.
When entering a new software buying process it is vital for companies to illustrate the benefits and costs for adopting a new software package. ROI (Return on Investment) analysis provides companies the key component in identifying and measuring the benefits and costs of new software which will lead managers to making an informed decision.
When running an ROI assessment, vital benefits must include:
..and the main costs which need to be considered before opting for a new system are:
Transparent costs - To avoid errors in long term cost calculations, companies need to make sure to identify what the software's full cost is. For instance, you may purchase the software for an initial sum but then you could be required to pay licence and service fees annually on top of the original price. Project and training costs may also be an additional charge. Companies have to ensure that all of these costs are made abundantly clear before entering into an agreement.
In it for the long-haul - But what is often missed by many companies when calculating the ROI is that it is essential to consider the long-term vs short-term benefits. New software may benefit you in years to come, but that is no good if your cash flow can’t support it right now. Equally, short term benefits are one thing, but if the return soon dies away, you may find that other products on the market provide longer term benefits, and therefore are a wiser investment.
You can find examples on ROI measurements on the websites listed below:
SDSD specialise in software and consultancy services for the maritime industry and can help you to evaluate and make the right software selection.