When purchasing a new piece of technology for your team or the whole organization, you need a strong business case proving the tool’s effectiveness. As attractive as new technology can be, it comes with the cost of time and money. That’s why effective organizations simulate the return of investment (ROI) and value prior to purchasing new technology
The ROI for technology depends on each customer’s case and is sometimes difficult to simulate depending on what you wants to know. Your aim might be monetary benefits, such as revenue, or earn values such as speed, efficiency, and data visibility.
Ultimately, outlining the ROI will make purchases more appealing to your boss and decision makers, and assure your company is investing wisely.
How do you calculate your ROI?
Revenue and speed/efficiency are some of two of the most common key values companies consider when purchasing a new piece of technology. Here are two formulas to determine them:
Estimate the ROI for revenue:
ROI = (Gain of Investment) - (Cost of Investment) / (Cost of Investment)
Estimate the ROI for speed and efficiency:
ROI = (Cost Savings of Investment) - (Cost of Investment) / (Cost of Investment)
Another important factor is data visibility, but measuring that has its own unique challenges.
It shouldn’t take you a lifetime to see if your purchase was worth it.
There are two key factors that come into play when adopting technology: understanding how to evaluate value prior to purchase and being able to measure value after purchase. If you purchase a piece of technology but have no way to assess (or simply don’t lay out a strategy to track your ROI), you might end up with limited to zero visibility on a technology’s value to your bottom line.
This can lead to a lack of clarity about the true value of a piece of technology, which in turn makes you susceptible to the sunk cost fallacy: the longer you use and invest in it, the more obligated you feel to stick with it even if it doesn’t offer any real benefit to your goals.
A company that makes your ROI a priority
At Kintone, we help our companies measure their ROI in order to give them the information they need to make the best choice for their needs. Not only does measuring ROI help companies make a decision, it also helps our platform users a realistic idea of what to expect when they start using Kintone.
Calculating your ROI with Kintone
For companies in the research and investigation phase, our free ROI calculator gives you the ability to check Kintone’s ROI based on five key factors. We also offer several ROI Kintone-use benchmarks customers use to evaluate their progress:
- Our customers see improved workflows within four months of purchasing Kintone
- It takes around the same amount of time (four months) to get a return on investment
- On average, our customers take only 30 days to go live with Kintone
ALSO: Download the full G2 Crowd report comparing Kintone with Quick Base and Zoho Creator.
Here are what Kintone users say about their return on investment:
1. NK Agri
A company with zero farming experience ventures into the agriculture market with IoT & low-code database apps. Within four years of using Kintone’s cloud-based data management platform to input, track and analyze real-time data from sensors in the field, harvest production volume increased by 30% and the company was able to keep the sales loss down to .04%.
“When it comes to farming, our intuition and experience alone may not be sufficient when trying to increase profit or maintain a steady shipment. Using data to influence our actions and share them with the company has helped us increase the production volume.”
2. AB Emblem
A manufacturing company in business for more than 200 years producing emblems, patches, and insignia for companies around the world faced a workflow problem. Although AB Emblem shifted from paper-based to Excel, Outlook, QuickBooks, and a variety of other tools, the new process couldn’t handle the volume and level at which they were doing business and looked for a new solution and found Kintone.
"I ended up working with my colleague to build a solution in Kintone that solved her problem. It took about a couple days to do, but the result was fantastic. What took her three days to do in our original software took her three minutes in Kintone. It was a breakthrough.....We estimate Kintone reduced our overhead by 50 percent. We had a lot of duplicate steps in our original workflow process, and Kintone completely eliminated those redundancies."
Global beauty product company faced a serious set of business problems related to data, including difficulty maintaining IBM Notes systems due to the lack of engineers and reaching the breaking point of using multiple Excel to track and manage research. Shiseido replaced their IBM Notes system and excel spreadsheets to Kintone.
“It took more than 30 hours to collect Excel files from each team to one Excel file, but now each entry from a team is added directly to Kintone, so the work time for the collection has been reduced to zero.”
4. Sunsar Maya
A non-profit organization that provides educational opportunities to improve the lives of Nepali vulnerable children were facing challenges in managing the children’s progress through spreadsheets. The traditional database was not feasible in measuring the children’s progress over time, nor as a whole group, or by segments such as age and class.
“It’s been pretty life changing for our organization to be able to see our data as a whole and to be able to use it instantly...To find something like Kintone that allows us to see our progress, and identify needs in such a robust way without the cost of some of these crazy installations has been incredible for our organization to be able to do that.”
Calculate Your ROI
Calculate your ROI when implementing Kintone for your solution through a simulator. This is based on our research of the most common use cases we’ve seen businesses face. Calculate your ROI today and get the full report with the breakdown of the result!
About the Author
Lena is the Marketing Strategist at Kintone. With her background working at one of the top business consulting firms, she understands how much data is important but can be a nightmare as well. That's why she loves it when new teams on-board Kintone and are able to save time and say good-bye to spreadsheet nightmares. She's very passionate growing the Kintone family as much as she loves Honey Lavender ice cream, her favorite!