Step 1
Be sure you're measuring your ROI correctly. Calculate your ROI
with the following equation: (revenue - investment)/investment. A
common mistake is using different timeframes in the numerator and
denominator. For example, if you're using a year's revenue in your
denominator, be sure to accurately reflect the entire cost of a
year's worth of the software, or online subscription, in the
numerator. Or, you may wish to calculate month-by-month ROI. If so,
use only a month of revenue and a month of the software
subscription fee.
Step 2
At this point, if your ROI is accurate and still demonstrates a
negative or less than acceptable return, you should evaluate your
company's business processes. Often, a software product is
implemented to automate a single process before a thorough,
end-to-end process review is completed across all areas of a
company. Sadly, software is all too often used to put inefficient
processes online and not to make them more efficient. A good
exercise is to draw your current processes on a white board and
identify steps that could be eliminated or made more efficient.
Following the suggestions provided in your software will help point
out areas for improvement. Once you have streamlined processes by
leveraging the capabilities of the software, you should recalculate
your ROI to account for the increased efficiency. Refer back to
Step 1 and recalculate your ROI. If it still has not improved,
continue on to Step 3.
Step 3
With your processes in mind, research available packaged and
subscription-based solutions. Consider costs, how well the software
works with your processes, and how easily your staff can adapt. If
you find a solution that matches your needs and budget, you should
consider switching to the new solution. If you can't find a
solution on the market that meets your needs, you may want to
consider a custom software solution.
About Custom Solutions
When a software package or subscription service doesn't match
your processes, you have the option to create software that does.
Many development companies will begin with your exact needs and
either develop an entirely new solution or modify a solution to fit
your requirements, objectives, and processes. When you are
estimating future ROI for either a packaged or custom solution, be
sure to include realistic costs associated with keeping the
solution up-to-date on technology, regulations, and other factors
that affect your industry.
Request a free consulting session about custom software by clicking here or
Calling 1.866.ONSHARP.