What's the ROI on your tech stack?
Return on Investment or ROI is one of the most clichéd and paradoxical evaluation metrics used in any purchasing decision. Paradoxical as it is frequently impossible to gauge the eventual potential improvements from capital investments. However, it doesn’t stop anyone from trying and does help to guide tech stack decisions, and as flawed as it is, without it, you are buying in the dark.
The purchasing process of new software has become so muddled with exorbitant costs, exhausting timelines and conspicuous agendas. COVID-19 has certainly sped up digital transformation, and leaders are realizing that getting through this crisis involves innovation, however In many cases, CIOs and tech departments would rather trundle along with outdated systems rather than engage the sales cycle.
Developments within the software industry are streamlining processes and saving companies millions. If the buying process managed to get out of its own way and fulfill customer needs easily, the buyer’s organization could be dramatically more profitable and efficient.
The Software Purchasing Process
Olive acknowledges the trepidation of buyers and the variety of risks associated. We fully appreciate that many CIOs, digital transformation consultants and leaders put their reputation on the line in the act of procuring new tech stacks. Beyond the personal, there are numerous business risks, financially, operationally and efficiency-wise.
The extenuating process regrettably lends to cut corners and frustrations. However, each step is vital and should be carefully presided over.
Take the time to decide on your needs and survey the stakeholders for their opinions. Once the needs are listed; set parameters and filters for budgets and capabilities. Now you are equipped to draw up a list of potential vendors before shortlisting your favorites and sending out RFPs. Demo the options you receive with others from your business and evaluate based on your needs. With the thorough process complete, you are ready to make a decision and move to contracts and implementation stages.
Believe it or not, we have clients who recall a nightmarish 2+ year process in procuring software and somehow, still being left unsatisfied.
The human resources involved in a 2 year process considerably reduce the potential ROI. The costs associated with fixing, onboarding and implementing are extravagant before even addressing the recurring impacts of incorrect decisions. The headaches are simply inappropriate for today’s world and we have encountered clients who are understandably, ‘done’ with the absonant process. We couldn’t blame them but Olive is here to ensure you get software solutions that are not influenced by commission based bias.
Benefits of Conducting an ROI Analysis for Your Tech Stack
In 1965, Gordon Moore of Intel observed that transistors were becoming half the size, half the cost and twice the speed every two years in what creatively became known as Moore’s Law. While somewhat outdated now, shades of the law apply across technology overall. The necessity to be fast and first often results in occasionally overlooking the suite of ROI benefits of the perfect tech stack solution.
ROI is much more than Financial Gain / Capital Outlay x 100. The right tech stack offers bespoke benefits impacting your bottom line, your team and your future. Overlooking aspects such as the reduction of stress and frustration or sales improvements could result in missing the point of a new tech stack altogether. Sought after benefits to pursue in your ROI include:
1) Financial Benefits: the dominant feature of any self-respecting ROI analysis. Olive verified solutions provide financial value in cost efficiency, avoidance and revenue enhancement. Dramatic time savings and process improvements reduce the outlay required to produce individual units. Furthermore, making the right software investments can reduce your wage bill and capital outlays on other solutions.
2) Sales Boost: Sales are boosted for a number of reasons. Reduced costs bring down prices and an effective tech stack vastly improves customer satisfaction and experience through ease of purchase and functionality.
3) Team Perks: Productivity increases due to the automation of minor tasks. Similarly, morale and innovation are increased due to reduced frustrations with inefficient technology.
4) Forecasting: Frequently overlooked are the benefits of accurate tech stack data analytics. Control data reports highlight inefficiencies, customer preferences and market trends putting you in a position to make informed decisions for the future.
Olive Streamlines the Process for You
Developing your tech stack can be an intimidating process full of potential pitfalls and risks. The time required is a financial risk of its own and off putting to many departments.
We have heard it all from vendors over-promising, to market comparison evaluators only suggesting vendors based on commission when a more fitted solution is available. Conducting the need analysis, surveying the market and getting realistic credible options to evaluate is challenging.
Olive’s vendors are not paying to be featured on our list of solutions. It would be a conflict of interest and would undermine our credibility. We listen and take account of your need and search the market in a streamlined manner. We strictly survey potential matches to circumvent any potential over-reaching sales with the ultimate aim finding solutions without wasting your time. If they are not a fit for you, we don’t suggest them. It is as simple as it should be.
Your long-term success should be the primary driver in all software solutions and it is our aim to ensure you reach that goal. Each client has unique needs and with Olive, you are getting a partner that goes to bat for you based on what is right for your company!