The keys to evaluate a software ROI
What is a typical Software ROI?
Many B2B software packages promise 200%+ ROI’s. But what does this actually mean? It means that for every £1 spent the client will either save or earn £2. For most businesses this will be a driver in establishing the business case for implementing new software solutions. In the current economic environment this will only increase.
Hard vs Soft ROI
Hard ROI is a numerical value, calculated as above. In addition to this, you should consider soft ROI’s. This can be a reduction of risk, which can be difficult to measure or quantify. For example, what monetary value do you place on avoiding a criminal conviction!?
How is this achieved?
Business software ROI’s typically derive their value from enabling people or processes to be more efficient. Taking manual processes and automating them.
How should you evaluate an ROI?
Many ROI’s will aim to wow with a large figure, so it is important to test this figure against your specific circumstances. Every business is different.
This will likely take 20 minutes over a call with a salesperson but is a crucial part of building an internal business case. Understanding the specific cost/benefit for your use case will also provide a valuable measure against which you can determine success.
A little about our ROI
We work with managers in several different sectors to make worksite health and safety easier. Forsite digitises a compliance process, enabling people to check-in and induct on their smartphone. This provides value to a business in a few ways:
- Compliance workload – Automated workflows send health and safety documents (inductions, permits, hazards) to a contractor’s smartphone. This eliminates almost all compliance workload and enables users to be more efficient on site by inducting themselves.
– Compliance admin costs
Elimination of workload saves personnel time
+ On site productivity
Self check-in enables more time completing job.
- On site visibility – Forsite provides 100% accurate attendance logs. These give managers powerful visibility of activity when working with external suppliers.
– Incorrect supplier invoicing costs
Attendance logs enable easy validation of invoicing
In addition to these, Forsite helps organisations not only improve health and safety, it enables them to prove their compliance. The value of this is often difficult to quantify – especially when it helps prevent harm to people and criminal prosecutions!
The cost of compliance is different for all businesses. Try our compliance cost estimator calculator to get some indicative numbers around your expected ROI.
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