We always love when our CEO, Brad Geldenhuys, imparts his wisdom. Read on for some quick tips on SharePoint ROI from the man himself.
Understanding SharePoint ROI is a tricky area if you are put on the spot with specific questions like “How much did this SharePoint project cost us and how much are we saving?” or “We spent a lot of money on this SharePoint application, how can we tell if we are getting our money’s worth?”
To be brutally honest, back in the day when I was a freelance consultant before I knew how to answer those questions they were completely disarming. I knew I had put in a massive amount of effort into the project, I had spent time with everyone involved in the business process, I analyzed each step, created a technical spec master piece, and delivered a spectacular SharePoint application under budget and in time. It all means nothing, when someone asked me “How much money am I now saving because of this SharePoint?”
I missed a crucial step in the entire process. I never worked out how much the current business process cost the company without the SharePoint application, and then I never checked to see how much time the SharePoint solution now saved.
I had to go back to square one and do my due diligence, which included the following.
So if an accountant costs the company $5000 per month (180 hours) and spends 2 hours a day (2×20 = 40 hours a month) on a process you will get $5000/180(hours in a month)*40(work hours) = $1,111 a month on that specific process.
The accountant now spends 2 hours a week on the process which is $5000/180(hours in a month)*8(work hours) = $222 a month on the new process, which is a saving of $ 889 per month and $10 668 per year
There you have it a great way to calculate SharePoint ROI with the usage of Web Analytics or Site usage stats.