ROI is the key to business success for many companies this year, particularly in a recession. Info-Tech Research Group has recently uploaded a couple of ROI tools, a worksheet and calculator, all in the same downloadable zip file. First, the worksheet helps users gather the data needed to input into the calculator. There are three things you will need to do before plugging in the numbers:
- Calculate the Total Cost of Ownership (TCO). This is the total cost of the technology over the course of its lifecycle and identifies what you will spend. A True TCO Calculator is available in the Knowledge Network.
- Calculate the benefits. This step lays out all benefits and associated money gained or saved by these benefits.
- Map out your project plan. This process will reveal all of the hidden or overlooked costs that will affect your TCO, benefits and your final ROI calculation.
After gathering the appropriate data, open the ROI Calculator and input the data. The calculator separates the costs into different categories such as applications, hardware, staffing, etc. and the benefits into categories such as increased revenue, inventory reduction, etc. The calculated data will reveal total benefits, a yearly net benefit, a cumulative benefit and a three-year ROI.
The Knowledge Network also has several other documents that help companies address ROI and TCO.