Week:10 - Return on Investment (ROI) of Social Technology implementations.

Hello Friends. This is my last blog of this Subject.

Today I gonna discuss about the Return on Investment(ROI) of Social Technology implementations.

                              
Issues with using basic ROI calculations

ROI calculations can be manipulated if you are not careful. project savings/ income and expenditures should be measurable and realistic. But sometimes they are not always easily measurable and their realism is questionable. It is not always possible when forecasting costs and benefits, to obtain a high degree of certainty with the project costs and benefits.

 Tangible Benefits

IT system projects ROI should be based on tangible (or hard) benefits. Examples of tangible IT benefits (project savings / income) include:

• travel reduction, online meetingsreplacing face-to-face meetings, remote support replacing onsite support
• Increased productivity and reduction in time to complete tasks
• Reduced length / number of customer service calls
• Reduced numbers of errors
• Improved system reliability and having less maintenance or fewer problems to resolve
• Improved software vendor support eg quicker responses, faster fixes

Intangible benefits

Intangible  benefits should not be included within ROI calculations. Whilst they are often as important as tangible benefits, they are very difficult to financially quantify. Instead intangible benefits should be fully explained within the business case and where possible details given of any quantification or measurement. Examples of intangible IT benefits include:

• increased customer satisfaction
• ability to offer improved customer service and support
• increased usability leading to increased sales
• increased user satisfaction
• improved / automated business processes that the new system supports and enables
• faster and more accurate information
• improved analytical solutions
• better forecasting
• better controls to improve data input accuracy
• improved software vendor support and service, improved communications, better knowledge of software, system set up

In conclusion, inter collaboration and communication can be boosted by using public blog. Especially the articles that require the crowd to support to implement in the future. Intra collaboration and communication can be promoted by a limited authorized people to keep a professional atmosphere for ideas sharing.

Thankyou for reading my blog. Have a Good day.

References:

• Hibbard, C. (2010). How IBM Uses social media to spur employee innovation. Retrieved From. http://www.socialmediaexaminer.com/how-ibm-uses-social-media-to-spur-employee-innovation/
• ValueNet works and Verna Allae Associates, (2011). Chapter 5. Advanced Analysis. Tips for cost/ Benefit analysis and ROI. Retrieved from: http://www.valuenetworksandcollaboration.com/advanced/tipsforcostbenefit.html