When analyzing anticipated ROI, some financial analysts often dismiss “time savings” as an elusive benefit since the time saved is often not replaced by hard dollar cost savings related to resource reduction. While tangible costs may not be returned immediately, one can argue that saved time can now be applied to revenue-generating activities such as:
More complete ROI models take these potential benefit sources into consideration. The best ROI models allow for multiple input assumptions so the simulated benefits can be analyzed with many levers being pulled. The trick is making the models usable by the non-finance experts so there can be buy-in from all key stakeholders in the company.
Many firms such as Nucleus Research offer custom research for ROI quantification. While these offer a tailored and complete analysis, we came up with the Qlik ROI Calculator which leverages our own software to create custom ROI quantification scenarios. The calculator incorporates advanced functionality such as monte-carlo simulation, scenario analysis, dynamic cash flow tables, calculating net present value (NPV) and payback periods. Check out this YouTube video for a five minute demo video or you can request a custom ROI evaluation by contacting Qlik here.Photo credit: LendingMemo / Foter / CC BY