What's the ROI on your tech stack?
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.
Digital transformation is about finding the right technology that will meet the needs of your business in collaboration with key stakeholders. Unfortunately, the process of finding these solutions has become so muddled with exorbitant costs, exhausting timelines, and conspicuous agendas. COVID-19 has undoubtedly sped up digital transformation, and leaders realize that getting through this crisis requires innovation. However, in many cases, CIOs and tech departments would rather trundle along with outdated systems rather than engage in the process of finding the right solutions.
Developments within the software industry are streamlining processes and saving companies millions. Ironically, the technology buying process hasn’t caught up until now... 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 Selection Process, key to Digital Transformation
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 key stakeholders for their opinions. Once the requirements 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 them based on your needs. With the thorough process, 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 evaluating technology and somehow, still being left unsatisfied.
The human resources involved in a lengthy inefficient 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 get it! Olive is here to ensure you find solutions that are not influenced by bias or evaluation fatigue. We want to help you streamline your process and accelerate digital transformation.
1) Sales Boost: 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.
TCO (Total Cost of Ownership) on your Tech Stack
According to CIO.com, TCO is a vital part of the ROI calculation for enterprise software. The Total Cost of Ownership (TCO) for enterprise software is the sum of all direct and indirect costs incurred by that software and is a critical part of the ROI calculation. Unfortunately, TCO is often ignored or underestimated.
When calculating ROI, include TCO costs that can be incurred by your solutions;
Costs per license, number of licenses that will be needed in the future with expected growth. Off-the-shelf software usually has an up-front software cost plus user licenses. Remember to include any finance charges.
Costs like servers and storage to run the software and other expenses like backup and disaster recovery. (This does not apply to cloud software)
Any costs associated with the implementation. Setting up, configuring, and testing software so it can be used in production. Cost of training initiatives and employee support. With custom software, the configuration is usually part of development.
The cost of moving data from the old to the new system, including data format changes. Often this is not economically viable, so the old system is archived in a read-only mode.
Olive helps you identify technology that will transform your business, and your bottom line
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 too many departments.
We have heard it all from vendors over-promising to market comparison evaluators only suggesting vendors based on commission when a more fitting solution is available. Conducting the need analysis, surveying the market, and getting realistic, credible options to evaluate technology is challenging, but the process is necessary to find the solutions that will transform your business and your bottom line.
Olive’s vendors are not paying to be featured on our list of solutions. This would be a conflict of interest for our brand and would undermine our credibility. Instead, Olive takes your needs - and invites the market to respond to those needs. You, the buyer, remain anonymous, and vendors can bid on your opportunity while you create it. Olive only recommends best match vendors, and you will see clearly, who is a match and why.
Our process aims to circumvent any potential over-reaching sales and identify the right solutions without wasting your time. If they are not a good fit for you, we don’t suggest them, and you don’t spend time, money, or resources to find out eventually they don’t fit your business needs. It is as simple as it should be.
Your long-term success should be the primary driver in your digital transformation strategy, and we 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 suitable for your company!
Read how Olive helped Freddy’s Frozen Custard and Steakburgers streamline the process of finding a new POS system.