Return on Investment in IT Service Management
Traditionally, when enterprise professionals discuss the Return of an Investment, they are mostly thinking of "financial" benefits. Today, organizations must also consider the "non financial" benefits of an investment.
Financial Benefits include impacts on the organization's budget and finances, e.g., cost reductions or revenue increases.
Non Financial Benefits are the so-called "intangibles", "soft", or "unquantifiable" benefits of an investment. Unlike financial returns, there may be no widely-accepted metrics that can be applied. However, Softexpert Solutions' potential for producing positive impacts on business performance and mission results are undeniable. These include improved customer satisfaction, better information, and shorter cycle-time.
The benefits calculation for ITSM should include both revenue enhancement, cost reduction and cost avoidance. Besides providing better service to clients, ITSM reduces running cost to improve profitability, utilizing industry's proven best practices to achieve increased productivity.
SoftExpert IT Service Management (ITSM) solution provides the following benefits:
Increased income by
Reduced IT operational cost by
- Leveraging opportunities for new revenue sources.
- Reducing lost revenue through better service level management.
Increased productivity of IT staff through:
- Reducing overhead expenses.
- Reduced costs in developing procedures and practices.
- Reducing need to add IT staff and reassigning them to more productive tasks.
- Improving asset utilization and life cycle management.
- Increasing resource utilization.
- Optimizing end-to-end service cost.
- Improved risk management
Improved process management:
- Process automation
- Reducing the number of manual tasks and reducing time per task.
- Better communication and information flows between IT staff and customers.
- Best use of skills and experience.
- Reduces cost of incident resolution.
- Reduces self-inflicted incidents via integrated and reliable change.
- Reduces service cycle times.
Return on Investment (%)
- Investment in SoftExpert PLM will depend upon the business unit size and implementation approach.
Payback Period (years)
- ((((Total Annual Savings) x n years) – Initial Investment) / Initial Investment) x 100
- Initial Investment / Total Annual Savings
Non Financial ROI:
- Increased customer satisfaction with improved quality of IT services delivered.
- Increase in customer satisfaction leads to increase in customer retention rate, reputation, market share and revenue.
- There is a defined process to provide proactively value added services to customers, improving IT governance and driving continual improvement.
- More reliable business strategy support though clearer IT capabilities.
- Improved regulatory compliance with appropriate standards and guidance.
- Improved availability, reliability and efficiency of security and business continuity.
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