ROI (Return On Investment) has been a prevalent term in business since the mid nineties, but can be traced back as early as the 1950s when it was presented as a method to evaluate training procedures. A buzz word of late has simplified its application in many respects and is usually employed to determine the financial rewards of a given project. In reality, it is a far more complex tool which can increase overall performance and influence the value any sector of a business can have.
The various factors included in an ROI evaluation fall into two main categories. Those inclusive of hard and soft data. The first refers to an area of a company which can be represented on a monetary level, while the latter denotes facets with greater intangibility. It is far more difficult to measure and understand the implications a factor such as job satisfaction can have on a business, although no less significant.
Our role is to help provide insight into these factors by developing custom built software which takes you through the entire ROI evaluation process. Software is built subject to individual requirements, but is usually based upon the following criteria and chain of events:
- Target appropriate areas of your business or project.
- Gather the relevant data from selected areas.
- Form an evaluation.
- Present data using visual tools, such as reports, graphs, charts, etc. and
- Make recommendations based upon its findings.
The detailed evaluation will ultimately direct you to where your budget is better spent, answering questions like how are your staff performing? Does their salary compare favourably with what they earn the company? Ultimately, whether it's based on hard or soft criteria, the system converts the data and provides you with value-based, progressive options. Equipped with this information, management are able to justify levels of spending, assess quality and levels of technical support and training, apply with confidence for funding, increase performance and profits and much more.
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