Tuesday, February 12, 2008

Realized ROI

Every software project promises an ROI, or they wouldn't get funding. Sometimes the return is expressed in terms of convenience or quality improvements. But the only way to get senior leadership to buy into the lasting change that is necessary to achieve the benefits is to express the return in terms in dollars. Soft cost-savings don't get many people very excited. And significant hard cost-savings are often a painful route involving workforce reductions and other onerous measures.

If you can identify an incremental and profitable revenue opportunity that is enable by your initiative, the task of cost justification becomes far easier. The trick there is to make sure that the sales team can defend your revenue & margin projection. Sometimes, revenue protection can be used, but we'll talk about that later.

No comments:

Post a Comment