IT managers know it is important to isolate the return on investment (ROI) of their project management software. Yet, not all actually track savings generated by the software. Although they know, inherently, that the software has enabled them to manage their operations more efficiently, they are at a loss to quantify its value to the executive team.
To aid them, TeamDynamix has developed a simple table for calculating ROI on project management software (Calculating ROI). IT managers can track current performance against past in the categories indicated to arrive at total quantifiable ROI.
The numbers plugged into
the sample Calculating ROI table
below are drawn from average savings driven from analysis and are included to
give IT managers an idea of the impact project management software can have on
the bottom line.
A positive ROI can both justify continued expenditure in the software – and speak well of IT management prudent enough to have implemented it in the first place.
| Calculating ROI |
| Annual IT BUDGET |
$18,000,000.00 |
|
| Decreased Funding of Non Strategic Projects |
$2,700,000.00 |
15% |
| Elimination of IT Budget Overruns |
$180,000.00 |
15% |
| Money Saved Due to Decreased IT Change Orders |
$270,000.00 |
2% |
Improved IT Resources Management, Resulting
in a reduction of IT Labor Staff Costs |
$54,000.00 |
2% |
| Total Quantifiable Annual ROI |
$3,204,000.00 |
|
