| Can My Business Afford Web-Based
Application? |
| There are several situations
where IT can really make a difference, as when it leads to measurable
productivity gains, sustainable competitive advantage, top-line growth,
and improved risk management. Also, if you look around you can find all
sorts of things in your daily business life that can be improved. However,
to better determine the viability of a web application for your business,
you can examine its Return on Investment. ROI can be stated in raw
benefits or in dollar values. |
| Return
On Investment In Raw Benefits
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ROI has more credibility when it's stated in raw benefits, which are sometimes
non-quantifiable, rather than translated into dollars. That translation is often fuzzy and
inconclusive.
- Improve customer service to channel partners; improve collaboration with and connectivity to suppliers.
- Using middleware integration tool saves time and money, both in deployment and maintenance.
- Faster to market with new products; a reduced risk of failure during system upgrades and changes; customers receive consistent data in all channels
- Lower development and maintenance costs; faster deployment of new features
- Global sharing and reporting of information; better service to global customers; e-business
enabling
- Get better deals from vendors; savings on development and maintenance
- Single view of customer activity across the company's multiple business units improves service
- Users can generate their own reports without relying on IS; applications are easier to maintain and support
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| Return
On Investment in Dollars |
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A Return on Investment (ROI) is calculated to measure the performance of one investment relative to another. ROI is expressed as a percentage and is based on returns over an associated time period, usually one year. For example, a 25 percent annual ROI means that a $100 investment would return $25 in one year. Thus, after one year, the total investment becomes $125.
To calculate monetary ROI, identify the total financial benefit your organization
will draw from a web application and then subtract from that the total investment made to develop, produce, and deliver that program. Though it's difficult to measure all of the costs associated with the program and even harder to isolate the financial benefits from the program,
we find this exercise worth completing.
((total benefit - total costs) /
total costs) X 100 = ROI
Total benefits include money saved by the organization, money made, and anything that adds directly or indirectly to the bottom line.
Total costs include the obvious and the not-so-obvious: development costs,
training, upgrade, maintenance, etc.
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| Affordable
Web Applications Is Our Objective |
The possibilities for Web Applications are limitless for any business. The only limitation has been that small and medium sized businesses cannot afford to implement them because they simply are too expensive. Hiring a small army of IT staffers and equipment simply puts the idea of an effective Web Application out of sight for the small or medium sized business.
Microlead was formed to offer this Web Application Concept to the small and medium sized businesses
as an affordable option.
Web Applications can add tremendous value to a company, for example, a Web Application can:
- Allow your customers to create an online PO and set up shipping and product delivery schedules
.
- Allow your customers to pay for their PO online.
- Allow customers to log in and view the progress of their
orders.
- Allow your site to display real time prices and product availabilities
.
- A Web Application can also allow a company to share documents and other valuable information in a safe, informative and secure environment.
The possibilities are endless... |
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