Calculating Net Benefit and ROI

 
 
By Loren Weinberg  |  Posted 2010-10-27 Email Print this article Print
 
 
 
 
 
 
 


Calculating net benefit and ROI

Once your organization has determined the projected net benefit of WEM based on the metrics most relevant to your goals and strategies, this number should be compared to the TCO for the WEM solution. The TCO is calculated by adding software license fees, professional services costs for implementation, and ongoing maintenance and support fees for the WEM project. The TCO of any preexisting Web content management system (CMS) should then be subtracted from this amount to calculate the true incremental TCO of the new system.

Using projected net benefit and incremental TCO, you can then determine how quickly you can pay back the investment you make in WEM. Using these data points, you can calculate both payback time in months and the annual ROI payback percentage you expect to achieve. These figures are important for building both a strong business case for investment and showing the success of WEM projects over time.

WEM offers significant business benefits for organizations of all types, including higher customer satisfaction and loyalty, an enhanced brand, and improved employee job satisfaction and performance. No matter what solution or approach you choose for WEM, beginning with a clear understanding of potential ROI and then continuing to measure and analyze your results over time will be the key to achieving your desired goals and demonstrating results to your stakeholders.

Loren Weinberg is Senior Vice President of Marketing and Product Management at FatWire Software. Loren is responsible for FatWire's global corporate strategy, corporate marketing, product marketing and product management. Loren joined FatWire in September 2007. A strategy and marketing expert, Loren has 15 years of IT industry experience in corporate strategy, product marketing, product management and software sales strategy. Loren holds a MBA degree from Harvard Business School and a Bachelor's degree, magna cum laude, from Yale University. She can be reached at loren.weinberg@fatwire.com.




 
 
 
 
Loren Weinberg is Senior Vice President of Marketing and Product Management at FatWire Software. Loren is responsible for FatWire's global corporate strategy, corporate marketing, product marketing and product management. Loren joined FatWire in September 2007. A strategy and marketing expert, Loren has 15 years of IT industry experience in corporate strategy, product marketing, product management and software sales strategy. Loren holds a MBA degree from Harvard Business School and a Bachelor's degree, magna cum laude, from Yale University. She can be reached at loren.weinberg@fatwire.com.
 
 
 
 
 
 
 

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