Nibletz Staff
Conventional wisdom says that technology is a sure-fire way to success. Abid Afzal Butt, on LinkedIn, believes that technology has an impact on everything from decision making to expansion. If you don’t think this is true, the numbers are pretty revealing. In 2017, 77% of companies rely on technology for success. However, there is one problem: quantifying the impact of tech isn’t easy. Therefore, it is not easy to figure out the actual effects, positive or negative. Businesses need to know whether their plans are working, which is why measuring the ROI is essential. To uncover the truth, here’s what you need to do.
Use A Basic Formula
The good news is that there is a simple formula which will help you figure out whether the investment is good or bad. Even better, you don’t need a degree in mathematics. The trick is to keep it basic, which is why you only need concern yourself with three things: ROI; cost, and net gain. The equation comes to ROI = net gain/cost. All you need to work out this equation are the relevant values and costs, which shouldn’t be difficult.
Hire An Accountant
There will be people whose math skills stop short at equations. Mathematics is one of those subjects you get or don’t, and it might not be your forte. If this is the case, don’t continue without professional help. Although it is fulfilling to tackle the problem alone, you could do more harm than good. Quite simply, the numbers which come from the equation will be the ones you use to decide on the investment. If the figures are wrong, you could pull the plug on a piece of tech which was helpful. With an accountant, you can be certain the numbers are correct.
Invest In Analytic Software
Clever entrepreneurs will realize that they can’t work out the return on their investment until they have the facts and figures. This sounds obvious, yet it is something lots of companies don’t have, even in this era. With an embedded BI program, there is no limit on the amount of data you can collect. The software acts like an analytics program, relaying the info you need in real time. As long as you set it up properly, it is possible to control the data you collect from various sources. If business intelligence doesn’t sound like your thing, Google Analytics is still popular.
Think About Added Value
Sometimes, a business has to focus on things other than money. For example, a piece of technology might not have an immediate financial impact, but it could in the future. Everyone knows tech smoothes out business processes, making them more efficient. The same goes for employees, too. When a company increases its output and efficiency, it will create less waste and create more. Simply put, the profit margins will skyrocket. Apart from efficiency, think about communication and teamwork, too.
Measuring the return on a piece of tech is not simple, but it is possible. By following these tips, you can now figure out which investments are worth your while.
