How to measure and optimize ROI on intranet software

HOW TO MEASURE AND OPTIMIZE ROI ON AN INTRANET SOFTWARE

W W W. P R E C U R I O . C O MI N F O @ P R E C U R I O . C O MT W I T T E R : @ P R E C U R I O

INTRODUCTION

- It makes a lot of sense to measure the return on investment pm any enterprise technology investment like Intranet software.

- The ROI can be calculated using any of the following three methods.- Hard ROI- ROI from solutions to specific problems- Impact on ROI from Intranet on KPIs

All three methods are discussed in detail here.

HARD ROI

- The hard ROI method measures returns as an output having linear relationship with the investment.

ROI = returns / investment

- This linear relationship of ROI with investment is a fair enough approximation

- There are non-linear spill-over effects of technology and returns to scale that a business accrues due to intranet usage.

ROI FROM SOLUTIONS TO PROBLEMS

- This considers returns obtained by reducing wastages of cost, time and resource engagement in the execution of a business assignment as a result of deployed intranet systems

- For example:- Increase in sales 12%- Reduced cycle time of closing a deal 7%- Reduced costs of liaison with customer service: 7%- Reduction in mobile tariff and fax costs: 9%- Reduced cycle time in document search: 8%Etc.

IMPACT OF ROI FROM INTRANET ON KPI

- This method is the most exhaustive, for it covers impact of the Intranet deployment on KPIs across sales, marketing, customer service, talent management, training etc.

- For example: Time saved on KPIs such as document search, brainstorming, speed of after sales customer service etc. can be calculated per employee, and hence for the company as a whole, and a dollar amount can be put on that time saved.

See examples with calculations here.

“You need to consider both monetary and non-monetary returns of an Intranet system to optimize appropriately.”- Mayor Brain, Precurio Intranet

For details on these three methods and more, please read this blog post.

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