If you curious to discover more about ROI with software application, it is easy for you to find out in Google and there were people have been tried to measure it in project basis. At Glodon, we have also adopted the traditional approach to measure ROI on operational basis. Today, we will bring you all to take a deeper look and see how software application does benefits us mathematically
Research studied that it is rather sophisticated to measure software ROI with traditional approach, especially with construction project adopting technology. At some research on technology adoption ROI, it is being identified that the return is justified in a few categories including but not limited to energy efficiency analysis, ease in facility management, rework reduction, lessen RFI, lesser on-site work discrepancies, improved personnel emotional ROI, et cetera. Lately, research even identified that in terms of software application in project cost management may even returned with increased work efficiency, better collaboration lesser discrepancies and rework, mitigate unplanned changes, lower down risk of spreadsheet error.
Picture shows the collaborations of team with assistance of software application.
As one identified that based on a power station (TNB Sub-Station in Malaysia) scale, conventional practice comparing with software adoption. It is identified that the project scaled at near 2,000sqft to 3,000sqft may help to improve efficiency by RM5,000 and above. Roughly taking such project to scale up the size to a high-rise project of 40 floors. Assuming each floor comes with rather low density of 8 units per floor, each unit consist of average 1,000sqft. Despite the circulation and common area, per floor could roughly at the scale of 8,000sqft to 10,000sqft. As the high-rise tower of 40 floors, a project could consist of 320,000sqft to 400,000sqft. With the rate calculated at RM5,000 efficiency saving on 2,000sqft to 3,000sqft project scale, a project that consist of 320,000sqft to 400,000sqft could easily be saving around RM670,000 to RM800,000 by improved efficiency. Other than proving the speed to carry a measurement works, the precision result, lesser workman required for commitment, and also with greater QS roles justifies the overall return of investing into software application.
The formulas above showed the benefits and possible ROI of software application in comparison with conventional methods.
Other than the project-based ROI calculation, at Glodon we also adopted the rather traditional measures to ROI in terms of business operations. Over the two years operations with the aid of software application, the company could have a possible gained at the total of RM90,370. At the initial months, the investment may not be able to show return as promised. However, over the time of two to three months of learning curve, when operators are rather capable, a breakeven through the investment could be possible by the fourth month. At the duration of a year time, the ROI could goes up to RM40,670.
ROI statistics of showing the implementation of Glodon Cubicost TAS & TRB.
Though it may be scientifically identified that software application ROI may find difficult to be measured, but in business operational or project-oriented investment may still find long-termed or in bigger sized project software investment brings great return of investment. Other than that, the research concluded the associated benefits are already justifies the investment itself. Software implementation is inevitably bringing better ROI, greater work efficient, build-up cooperate professionality.
