Return on Investment in Software Development

Hi I thought I would write a series of articles on a topic that I believe is becoming absolutely critical in the software development industry, that being the magical and mysterious ROI (return on investment) in software development.

As the owner of a programming company here in South Africa, I decided at the outset of the company that a rule of thumb for accepting any software development project would be that I would need to figure out how to measure the ROI in that particular project. Now you may or may not be surprised to know that in most instances my clients don’t actually think of this measure before taking on the project, they know that they have a business problem or business need that needs to be solved with technology and are willing to pay an amount of money for that. Experience over the years however has shown me that the best way to retain that client in the long term and or to make more business from that client is to prove a ROI in some way on that software development project.

I find this measure to be critical because for my companies purposes it shows exactly how successful a project is to my client in monetary terms. The bigger my impact through the software I develop, the more successful I have been at satisfying that clients need, the easier it is for me to go back to that client and offer further services. Contrary to popular belief, I don’t believe that a project coming in on time or under cost is a great measure of the success of that project at all, this is typically what IT companies do. If I really want to do a great job for my client then I always intentionally build a monitoring tool into the software I develop for them and that tool must track the ROI for the client in some way and present a report to the client whenever they want to see what this piece of software really is worth to them, be it through savings, additional income, time savings, it doesn’t matter so long as you track the value.
So how do you go about figuring out the ROI on software development project?

This is the difficult portion because it requires listening to the clients need carefully and scoping there need correctly, once you have done this, it should become fairly obvious what the client is trying to solve by having the software developed, this should then be a clear indication of the measure to be used on ROI. For example,a client of mine wished to have a system developed that automated the process of allowing shareholders in various properties to swap there owned weeks with each other. Before the client came to me they did this process manually, ie called there shareholders to find out if they were willing to exchange a week with a fellow shareholder that already gave an indication that they wanted to swap there week etc. This took a lot of time and for the administration fee that the client asked to do this, I suspect the profit was very little. Once we had developed the system and allowed the shareholders to interact with each other through the website instead of the web system, the ROI was very clear, why?

-We tracked each exchange in the system, each exchange has a monetary value associated to it.

-The clients telephone bill dropped significantly

-More swaps occur because of the ease at which shareholders can swap weeks, instead of having to go through a process of calling the company then waiting etc, this increase in sales is measurable

-Because the client offered the service electronically he could increase his administration fee.

All this information the client could get through there system thereby ensuring that he could very clearly see what his ROI was.
Conclusion

I believe without a doubt that if you truly want to complete a software development project successfully for a client, then you need to build a ROI tool into the software. Convince the client to do this, if you cant do that then build it free of charge, but make sure that you get your client to look at these figures. In the long term this will have a positive effect on your business and keeps your software development projects honest in terms of creativity and keeping the clients needs in mind constantly.

Please offer your comments and views on this topic, I am very sure that peoples opinions and views on this vary quite considerably, I am very willing to listen to other opinions in this regard.

In my next article on ROI and software, I will be describing more specifically how you can measure ROI on certain types of projects, in this case it will be how to measure ROI precisely in SMS campaigns.

Software Development And The Growing Cloud Based Server Trend

Working from your office or even remote location using cloud based computer systems are one of the most amazing growth areas for which software development companies are increasingly finding their services requested. Even a year ago when you mentioned handing over a company’s entire database, customer records or financial reports to a third party most people laughed. The very idea of a completely separate company who would control an organisation’s software systems and the storage of data was treated with great suspicion and derision.

Developments in the modern world move fast though and today the idea is all the time more popular one for many reasons. Software development service providers are undertaking greater responsibility for supply, production and management of business systems. Companies can now avail themselves of the latest technologies, at a fraction the cost of traditional IT sourcing methods and get the latest updates as soon as they are released.

The use of third party software systems that provide remote access services mean that there is no need to worry about purchasing hardware or software packages and there is an additional saving on space that normally computers and servers would require. The combination of cloud based systems and software as a service (SaaS), is seen as a way for companies to broaden their horizons without over stretching themselves financially. They can have access to up to date software developments, system upgrades and technical support from their web developers as and when required.

As alien a concept as this was a year or so ago, this is gradually becoming a recognised alternative for many businesses. It offers many practical program development solutions, is an effective cost cutting method and at the same time gives businesses direct access to systems developers who can create bespoke software services, database management and enhanced provision for clients.

Database Management facilities are the latest in database control that mean large scale providers are establishing large custom built data centres where vast amounts of information can be safely stored. This is then easily access through Saas systems, simply and when required. Leading security software developers have already constructed substantial cloud based storage facilities that allow for real time access, without the worry of on site security requirements. This is seen as a way for clients to have the highest possible level of security for their data with complete ease of access from anywhere in the world.

Advantages of Custom Software Development for Different Businesses

Every software company strives to maintain a close relationship with its customers by offering customized solutions to their various requirements. Hence, the role of custom software development has grown in prominence in recent times. During a period when business organizations are making all kinds of efforts to become the industry leaders, a stereotypical product with the same age-old functionalities may curtail their advancing chances.

For securing exclusivity in business goals, custom-made or user-friendly software is the most excellent choice at the moment. The major goal of custom software development is to generate an as precise end-product as demanded by the customer. A tailor-made product must be developed after understanding the requisites and preferences of the client.

Customized packages are devised by making use of the most recent technology. They are exclusively developed to satisfy the customer’s business needs. Any difficulty or disliking of the customer that grows out of the building process can be rectified during the formulation of the software with his/her permission and this is the most important advantage of such package development.

As soon as the system is built and delivered to the client, there may be no requirement to make changes to it since it is already developed to perfection. In case of a ready-made package, a business concern may need to carry out a stringent procedure of reconstituting their goals (usually called configuration) so as to comply with the application (which usually turns out to be very expensive since you are dependent on the product provider for development).

Businesses may need to get in touch with the manufacturer of the product for alterations in the presently existing system to match the necessities. This consumes plenty of precious time, energy and financial resources. The tailor-made product is built eyeing specific requirements of the end users and therefore, the complete custom application development costs need to be paid by one client which does not take place in case of the ready-made software.

After the development stage, custom-made system can be implemented right away because the customer hardly requires any modification in the delivered product. The time invested at the time of building custom system may be greater. However, this must not be an impediment in selecting a customized package for an organization’s particular function. However, the question arises why the software development life cycle goes up during the building phases.

This is because of the fact that the procurement of the ideal tailor-made product demands strict inspection to ensure proper comprehension, analysis and precise execution of thoughts into the final product. In addition, ready-made package may result in lower levels of expenses than custom software development; but, the high expenditure in the latter case takes place only due to profound research and mounting customer demands since the end product needs to be an output sought by the client.

A committed custom application development company always communicates with the client through teleconferencing, telephone, electronic mail or chat, regardless of being onshore or offshore. This is the most crucial activity since the requirements can be transmitted and understood regularly and no possibility for ambiguities is brought forth. Customized software demands frequent communication before as well as after the development stage.

legal color legal less legal marks legal wish legal flower legal dollar legal night legal sonic legal flag legal widget legal client legal over legal blaster legal formula legal gang legal splash legal messenger legal member legal dish legal request legal urban legal sustain legal water front legal sparkle legal surreal food less food pipe food send food charts food wish food collector food econo food cupid food fiesta food grabber food gorilla food rule food muscle food last minute food matche food kayak food arrow food hotrod automotive send automotive marks automotive lion automotive request automotive collections automotive other automotive excel automotive treasure automotive rail automotive streaming automotive rally automotive crawler automotive hard automotive catcher automotive charm automotive appeal automotive cupid health positive health last health variety health offline health normal health joker health millions health omega health glamour health guerrilla health electra health urban health glory health precision health flavor health intergrity health collections health collector health calculator health other health excel health sugar health metric health hard health opedia health fame health classy health draw health slide health vector health collect health sweet health legacy home a bundant home back home battle home brite home browser home buddies home cache home calculator home catch home catcher home charm home charte home charts home chase home circus home collector home companion home dollar home dollars home stick home letter home flag home widget home client Food Products Financial Products General Auctions operating systems product activation Product Keys Product Key Finder Heating Systems Home Automation Home Automation System Building Supplies Building Designer Building Consultants Bathroom Accessories Appliance Repairs Equipment Hire Extensions & Additions Floor Coating Products Furniture Removal Garden Maintenance Garden Designer Interior Designer Interior Decorating Kitchen Design Landscape Construction Landscape Design Project Management Landscaping & Gardening Patio Cover Installations Tile Suppliers Home Access Control Home Alarm Systems Home Intercom Systems Home Security Card Access Plumbing Installation Home Entertainment System Home Improvement Mistakes Home Improvement Leads Home Improvement Tips Home Improvement Grants Home Improvement Stores Home Improvement Projects Green Home Improvements Marketing strategy Marketing Concept Affiliate marketing Smart Affiliate Marketing Strategies Best Affiliate Marketing Networks Women Lawyers sex dictionary sex diseases sex education film sex facts for teenagers sex health tips sex medicine for male sex positions during pregnancy sex power medicine sex relationships Vibrators and Adult Toys sex pills for women sex relationships online dating business online dating catfish online dating elite Adult Superstore sexuality counseling sex facts and tips sex power medicine sex relationships sex related words sex pills for women sex relationships Free Online Casino Online Casino Games the best online casino games Winning Strategy Games Best Gaming Experience Play Online Casino Games Online Casino gambling Slots gambling The Best Online Casino Play Online Casino Games Play Online Casino Play Online Pokies Real Money Slots Online Slots and Casino Play Online Slots Real Money Casinos Play Slot Machines Online Real Casino Jackpot Party Casino Slots Real Casino Slots Apps sex dictionary sex diseases sex education film sex facts for teenagers sex health tips sex positions during pregnancy sex power medicine sex relationships sex related words Vibrators and Adult Toys sex pills for women online dating business online dating catfish online dating elite Adult Superstore sexuality counseling sex facts and tips online dating service sex good for health sex positions during pregnancy sex power medicine Home and Patio Decor Center Home Remedies The Best Smart Home Security Systems Home Design Ideas Home Decorating Ideas Best Home Builders Home Building Online Courses Home Builder Marketing Top Living Room Flooring Best Logistics Software Best Application Comparison Shipping Software Solutions Logistics Management Software Logistics Software Systems Software Developers Systems Software Developers Software Developer Education Most Popular Software Applications Technology Applications Phone System Software Information Technology Spy Phone Technology download Smartphone Spy Phone Technology Software Developers Systems Software Developers Software Engineer Software Developer Education Android Software Applications Most Popular Software Applications Cell Phone Monitoring Software Software Technology Technology Applications Best Application Comparison Shipping Software Solutions Wedding Ideas Virgin on Wedding Night find the meaning of wedding Wedding Websites Virgin on Wedding Night Wedding Planning wedding planning tips business plan Online Services for Businesses public relations Small Business Trends Tips Small Business Best Application Comparison Software Developers Software Developer Education Android Software Applications Most Popular Software Applications cheap ray ban sunglasses Travel Insurance Information Backpacker Advice Kitchen Design Patio Cover Installations tw girl asia chat tube Landscape Construction Landscape Design Cheap Hotels Travel Tips Travel Guides Travel Information Cheap Flight and Hotel Packages‎ Travel Insurance Cheap Hotels and Flights Best Restaurants Vegetarian Restaurants Hotels And Resorts Best Hotel Restaurant Travel Information Trip Travel Insurance Compare Cheap Holiday Travel Insurance Find Cheap Hotel Discounts Cheap Hotels and Flights Cheap Hotels Travel Tips Travel Guides Travel Insurance Find Cheap Hotel Discounts Addiction Causes Causes of Alcohol Addiction Causes of drug addiction Drug Abuse Information Substance Abuse Programs Choosing a Addiction Rehab Program Drug Rehab Treatment Information New Drugs Online Personal product Sell Products Online Marketing Product Product Research Analyst Product Research Facilitator The Food Products General Products Beauty Products Business beauty salon product stroke sony Natural Health Magazine Bedroom Designs interior design ideas bedroom Premature ejaculation Health Tonics Herbs Natural Health Magazine Electrical System Vehicle The Shop Bulk Online Premature ejaculation www.777chat.info www.777good.info www.twshowkiss.info www.twtalk080.info www.twavtalk.info www.twshowlove.info www.twavsexy.info www.twavroom.info www.twavmovie.info www.twsexy888.info www.twsexyadult.info www.adult506.info The Legal Adviser www.twavshow.info www.twavnice.info www.asia222.info lawyer Legal advisor The Lawyer Portal good tube Drug Abuse Information Travel Guides Hotel and Travel business shuffle business precision business flavor business verde business intergrity business gratis business epic business anchor business clearance business eastside business corporation business feature business cellar business plum business divine business pronto business carnival business east bay business dodge business prestige business razor business atlantic business husky business remarkable business fighter business quantum business courier business construct business sparkle business rainforest business falcon business lightning business blod business downtown business curious businessafter businesss alvage business overnight business captive business amazing business abundant business designing business blender business imagine business just business surreal shoppinghusky shoppingnations shoppingremarkable shoppingfighter shoppingquantum shoppingpeach shoppingpresident shoppingsparkle shoppingrainforest shoppinglightning shoppingdowntown shoppingraven shoppingsalvage shoppingpriority shoppingmystical shoppingpermanent travellightning travellowprice travelmeasure travelmillions travelmystical travelnations travelnature travelnobel travelnormal travelnorthamerican traveloffline travelomega traveloneday travelouter travelpickup travelplatinum travelplum travelprecision travelprestige travelpriority travelpronto travelquantum travelrainforest travelraven travelremarkable travelrhino travelsalvage travelscribe travelshuffle travelsleuth travelsnapshot travelsouthbeach travelsparkle travelsunflower traveltopsecret travelurban travelyankee legalagenda legalcupcake legaldodge legaleastbay legalescrow legalgecko legalglory legalguerilla legallimited legalmystical Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Personal product Sell Products Online Marketing Product Product Research Analyst Product Research Facilitator The Food Products General Products Beauty Products Business beauty product skin care beauty salon product online product Marketing Products to Advertise online shop originals Product New Products Products Definition gigi hadid super model product marketing Personal Products Booking Apartments Definition of Apartment Secure Apartment Design Apartments girl room decoration free information Apartment Asia Apartment Girl Makeup Products Girl Clothing Girl Cookies chat girl chat adult channel asia Girl Dress Cosplay Japanese School Girl Dress apartment for girl Apartment Brokers Apartment Nice Best Affiliate Programs Digital marketing Internet Marketing Services digital transformation Seo Web Marketing Web Marketing Ecommerce Marketing Strategy Ecommerce Marketing and Technology The Lawyer The Business Law Bankruptcy Lawyer Law Firms Legal Information Attorney Best Lawyers The Best Advice Lawyer Lawyer Requirements Lawyer Employment Law Reports Wedding Ideas Virgin on Wedding Night wedding definition quotes wedding definition of marriage find the meaning of wedding Wedding Planning Wedding Planning Guide Wedding Websites wedding planning tips Small Wedding Planning kitchen cabinet water damage waste disposal Patio Furniture glass shower home builders custom cabinets Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Apartments Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web gkcplaw.us gldrlaw.us gprblaw.us krwnlaw.us lhyrlaw.us lrmhlaw.us mcsglaw.us mgdllaw.us mkmblaw.us mngzlaw.us mwpxlaw.us nkynlaw.us nltnlaw.us nthslaw.us nzsllaw.us pktqlaw.us qcpqlaw.us qrrblaw.us rbfylaw.us rcfblaw.us rdlblaw.us rgbqlaw.us rghwlaw.us rlnglaw.us rmfdlaw.us rzyzlaw.us skwtlaw.us spyzlaw.us tdgclaw.us tdgwlaw.us thtxlaw.us tzkflaw.us wgjnlaw.us xkdrlaw.us yrnclaw.us zwknlaw.us zwnblaw.us jclblaw.us rxdnlaw.us ghzwlaw.us zflglaw.us mbczlaw.us pyfwlaw.us hjcwlaw.us ydmflaw.us zkzflaw.us ptpwlaw.us jcdxlaw.us fgmdlaw.us ystjlaw.us fglxlaw.us txxrlaw.us nzsblaw.us fgmdlaw.us rbbflaw.us mxdhlaw.us dpmqlaw.us knwhlaw.us jzdmlaw.us ntsnlaw.us dpszlaw.us dmztlaw.us yswklaw.us fxbslaw.us mhjslaw.us pdxrlaw.us crbnlaw.us dcjplaw.us pzsflaw.us tzhmlaw.us xrlnlaw.us mczflaw.us dzpylaw.us qnfllaw.us pshllaw.us zfzjlaw.us wpqrlaw.us gngjlaw.us lnqrlaw.us hwyrlaw.us dnjnlaw.us wbljlaw.us rbsqlaw.us mnjslaw.us sqxrlaw.us ntxnlaw.us gnkflaw.us lcntlaw.us lcmjlaw.us xrwnlaw.us mnkplaw.us gnbylaw.us gymrlaw.us yrtnlaw.us dnwmlaw.us fhphlaw.us bnxnlaw.us hrxnlaw.us xdxrlaw.us tyljlaw.us dmrnlaw.us dypflaw.us gnfllaw.us nbnrlaw.us wbhllaw.us nyrqlaw.us tnsflaw.us hxynlaw.us ltqrlaw.us