As business entities go for SaaS products for mobility, the key question is to identify mobility ROI. ROI aids companies in the identification of the returns obtained on investment concerning the expenses made.
In the case of enterprise mobility solutions, this means assessing several features such as the increase in productivity, reduction of costs, and enhancement of business processes.
Understanding ROI in SaaS Products
ROI is an efficient measure of performance when it comes to the assessment of an investment. To compute it, the amount of net profit gained from the investment is divided by the cost of the investment. This result is often stated as a ratio of the initial cost of the investment. ROI for SaaS products is multifaceted, including quantitative and qualitative aspects, which means that the approach to its calculation should also be thoroughly combined.
Set out Goals and Targets or Measures
The first concept in counting the ROI is to identify the goals of implementing a SaaS mobility solution. These objectives can range from employee efficiency and ice delivery to decreasing operating expenses. Once objectives are set, set up KPIs that correspond to these goals. Common KPIs for enterprise mobility include:
- Employee productivity metrics
- Direct time-saving for individual tasks
- Reduction in operational costs
- Customer satisfaction scores
- Revenue growth
Cost Analysis of SaaS Products
Determine the TCO for the SaaS product. These are the costs of subscribing to the system, costs incurred in implementing the system, cost of training the users and any other costs including the cost of interconnecting the new system with other systems in the organization.
This is because direct costs are very likely to be complemented by indirect costs that may sometimes even outweigh the direct ones. Direct costs can be easily identified with the purchase of a license, while indirect costs can be, for example, organizational downtime when implementing or costs of training employees.
Measure Productivity Gains of SaaS Products
Among the numerous advantages of enterprise mobility solutions, one can highlight the improvement of productivity. Establish the extent to which the SaaS product improves productivity by capturing data on the organization’s performance before and after the product’s integration.
For example, if the solution implies some processes’ automation, calculate the time that occurred and transpose the results in terms of average employees’ hourly rate.
Evaluate Cost Savings of SaaS Products
Examine the impact resulting from the optimization of costs with the help of a SaaS solution. This might be in terms of cutting expenses which could include reinvestment in old technologies, maintenance costs or efficiency gains.
For instance, when the mobility solution minimizes the application’s dependence on hardware or local installations, such costs should be included in the ROI equation.
Analyze Revenue Impact
It is imperative to establish how the SaaS product in question serves to further revenues. This could be through faster time-to-market, better engagement with the customers or opening up of new markets that the mobility solution offers. Prove improved revenues in areas where the SaaS product is deployed by comparing the revenues before and after its integration.
Consider Intangible Benefits
Although improving tangible factors is easier compared to intangible factors, the latter should not be neglected or disregarded.
Some of the benefits can be increased employees’ happiness, effective cooperation, increased adaptability, and the ability to respond to the challenges of the market.
All these factors though difficult to measure have a very vast and huge impact on the total value of the SaaS product.
Conclusion
Measuring the ROI of the SaaS products in enterprise mobility is a critical process that involves cost-unknowing savings identification and increased productivity, as well as analyzing the impact on revenue.
Ways of Managing the Financial Returns of SaaS Investment Among Enterprises By objectively setting feasible key performance indicators, and other tangible and intangible values, an enterprise is in a position to evaluate most of the SaaS investment.
An accurate analysis of ROI often proves not only the feasibility of the investment but also outlines possible actions for further improvement of the company’s value.
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