Getting Maximum Return on Your Software Investment

1
Getting Maximum Return on Your Software Investment

• Ray H. Killam, CFSP, CFC
• Amgraf User Group
• February 21, 2002

2
Productivity

• Fortune magazine, 1995
• Over past 30 years, 1 Trillion
• Less than 1 productivity
• Issues
• Lack of standards
• Lack of connectivity
• Technical complexity
• Lack of training

3
Now, Improvement

• More than 3 annually
• Internet
• World Wide Web
• Standards
• Infrastructure
• Productivity tools at desktop
• New tools evolving

4
Training Issues

• Software more powerful, but more complex
• Plenty of training opportunities, but more costly
• More demands on people do more with less

5
Elements of ROI

• Costs- fully allocated payroll, travel, lost
  productivity while away
• Expected benefits- faster output, better quality,
  more output, more capabilities
• Results- increased sales, competitive advantage,
  lower costs per unit, reduced turnover

6
More ROI

• Each result must be
• Significant
• Measurable
• Predictable
• Achievable
• Doesnt count as savings unless these results can
  be consolidated

7
Examples

• Cost of badly designed forms averages 1,000
  per form per year over the entire population
• Cost of badly designed processes can be huge (A/P
  Process example)
• Amgraf Payback Calculator simple, but powerful

8
Conclusions

• Dont get deceived by soft cost argument
• Measure results quantify improvements
• Show how savings was achieved more output,
  fewer people, new customers, faster turnaround
  time, etc.