Sample ROI Report for a small-medium size company

Find out how collaboration tools can help you save USD 2500 per month.

Many companies take collaboration tools as optional non-profitable expenses which doesn't seems bring much value to the company. This is absolutely wrong if a good collaboration tools is being in placed and employee fully utilized it. Let goes through a sample Return Of Investment (ROI) report to find out how it can help your company to save USD 2500 per month..

Company Background
  • 20 Employees (18 employees and 2 project managers)
  • Specialized in software development & consultancy
  • Employee often works as project basis at various customer sites.
The Business Problem
  • Email Fatigue
  • Search ability of information often time consuming
  • Employees in customer site have difficulties to communicate/cooperate with each other.
  • Top management has difficulties to monitor the progress of each project. They often spend a lot of time to call and meeting with project team member.
The Solution
  • Implement AJAXWorkspace focused on executing/monitoring projects and collaboration among organization.
  • Functionalities:
    • Everyone is working in online workspace which is accessible anywhere and anytime.
    • Advanced task management are available to manage all tasks
    • News/Document/File Sharing are stored in central location
    • Account management to keep track member and customer contact information
    • Online calendar allow sharing of upcoming events, meeting, and appointment.
    • Discussion board is available to do further discussion and making decision.
    • Project monitoring and real-time reports are available to top management.
    • Search capability across the entire workspace.
The Success Factor

Hard Benefits

  • Reduction of email communication which is time consuming
  • Better internal communication
  • Lesser and shorter meeting
  • Improved production time
  • Shorter development cycle
  • Less call to support
  • Reduced time to search for information
  • Reduced time to manage/monitor task assigned to everyone.

Soft Benefits

  • Increased client satisfaction
  • Less frustration for employee to communicate among each other
  • Better cross departmental communication
  • Shorter adaption time for new employees
  • Employees often work at customer site able to stay in touch with their organization.
The Cost (Monthly)
  • 20 user licenses with unlimited projects cost USD 32 per month
The Benefits (Recurring)

1. Speed up Email Management

The cost

  • Averagely a manager spends 30 minutes a day replying emails to his team members.
  • The average salary is USD 100,000 per year.
  • This means a cost for the company of:
  • 2 managers * 100000/221 working days = USD 905 salary per day.
  • 30 minutes will cost 905/16 = USD 56 per day.

The reduction

  • Thanks to the new software, managers only need 20 minutes to reply emails. So the new cost is: (56/3)*2 = USD 37.30 per day or a cost saving of USD 18.70 per day.

The total cost saving per month = USD 374 per month

2. Improved Search Time

The cost

  • Averagely an employee spends 20 minutes a day looking for project information.
  • The average salary is USD 60,000 per year.
  • This means a cost for the company of:
  • 20 employees * 60000/221 working days = USD 5430 per day.
  • 20 minutes will cost 5430/24 = USD 226 per day.

The reduction

  • Thanks to the new software, employees only need 12 minutes to look for project information. So the new cost is: (226 /20)*12 = USD 135.60 per day or a saving of USD 90 per day.

The total cost saving per month = USD 1,800 per month

3. Improved Team Collaboration/Project Management

The cost

  • Averagely managers spend 30 minutes a day having meeting, phone calls or answering email to his team-members in order to manage/monitor their task.
  • The average salary is USD 60,000 per year.
  • This means the cost for the company of:
  • 2 managers * 100000/221 working days = USD 905 salary per day.
  • 30 minutes will cost 905/16 = USD 56 per day.

The reduction

  • Thanks to the new software, employees only need 20 minutes to attend to meetings and answer emails to find out the project status. So the new cost is: (56/3)*2 = USD 37.30 per day or a cost saving of USD 18.70 per day.

The total cost saving per month = USD 374 per month

Total Benefit

Activities Monthly Saving
1. Lesser Email USD 374
2. Improved Search Time USD 1,800
3. Better Team Collaboration USD 374
Total Saving USD 2,548

 
The Result

The final result after deduct the cost are shown as below. It definitely help a company to save a lot of money and increase employee efficiency and productivity.

1 month 1 Year
Cost USD 32 USD 384
Saving USD 2,548 USD 30,576
Total Benefit USD 2,516 USD 30,192