When businesses invest in new technology, the next logical question is to determine the returns on investment which is the same for the content management system (CMS).
While you might have heard about its multiple benefits, such as boosting productivity and streamlining your processes, purchasing one still warrants the question: is it worth it?
Of course, the value of the cms software varies from organization to organization. In fact, it might even be different from department to department within the same office.
There is no standard formula that will accurately calculate the returns across industries.
However, you only need to classify your resources and the tasks so that you can compute the money and time that you save using the software.
For instance, you need to determine the time factor.
How long does it take for each task to finish prior to the CMS and after it’s adoption?
Then you can begin to calculate the cost.
It should be noted that more and more organizations are shifting to content management software when performing a task or service.
According to data, the CMS software market has an estimated compound annual growth rate of 16.7% between 2019 and 2026. In 2018, the industry was worth $35.9 billion, but it is expected to swell to $123 billion at the end of the forecast period.
Any IT or marketing department will tell you that any venture is not worth pursuing without first knowing the ROI.
So, even if the investment returns should not be the point when investing in cms software, you still have to justify the expense.
Making Your Own Formula to Calculate ROI
The simplest way to calculate the ROI is to review your costs and compare them with the benefits.
What could potentially be the expenses in a CMS?
- The proprietary software
- Annual licenses
- Subscription fees and, add-on charges
- Installation and integration
- Organization and migration
- Repair and maintenance
The next step is to look at the expected benefits.
You need to determine if you managed to reach the following outcomes after installing the cms software.
- Improved revenues
- Higher productivity
- Reduced wastage
- Less time printing and photocopying documents
- Increased time to market (delivery chain)
- Fewer mistakes in processes
- Fewer human errors
Then you also have to consider other factors that are harder to quantify, such as your brand image and enhanced customer experience.
To determine the cost, for instance, you only need to track each stage in the lifecycle of product development.
What are these stages?
- Product concept
- Research and development
- The period to design the product
- The time to study the market and viability of the product
- Testing the product
- Introducing the product to the market
Each task is impacted by cost and time. Once you have the clarity of how much each stage costs, you can now make a comparison. Of course, it does not have to be accurate.
As already mentioned, some of the benefits of content management software could not be quantified.
But when you reduce the time involved in finishing a task, it is already considered a clear benefit of using the CMS.
Finally, one crucial benefit of using technology is that it makes the task easier for your employees. Also, they would not have to worry about administrative tasks, which will be handled by the CMS.
As a result, they can finish the job quicker and go home to their family less-stressed.
This post is written by Guest Contributor