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How to measure business value (BP)
This best practice provides recommendations to help determine the business value of your digital workplace solution.
Determining the business value of your digital workplace starts in the planning phase. You have two options when measuring business value:
- ROI (return on investment) - a quantitative method which measures financial gains or monetization. It determines the overall cost savings and/or increases in corporate revenues.
- ROO (return on objective) - a qualitative method that measures the incremental value the solution brings to your overall business - how much has the organization improved since the solution was put in place.
Business value benchmarking
Measurement systems provide a rational basis for business decisions, as long as the right thing is being measured in the right way. When benchmarking the success of your digital workplace solution, here are some common business areas that other companies measure:
- Are you getting new products or services to market faster?
- Are there cost reductions in existing business units because of improved processes and communications?
- Are your employees more productive due to improved knowledge sharing? (e.g. best practices and tools that improve the quality of processes, products or services.)
- Are your customers more loyal?
- Have your net promoter scores gone up?
- Has customer churn reduced?
- Have support costs reduced?
- Has employee turnover reduced?
- Have employee satisfaction survey scores gone up?
- Have your new employee onboarded faster? Better test scores?
- Has the quality of new hires improved because of better recruiting processes?
- Increased customer conversion revenues (number of sign-ups, increased registrations, etc.)
- Increased number of comments or how many times a piece of content has been favorited
- Improved customer engagement
- Increased SEO placement
- Decreased SEM spending
- Decreased marketing spend (promote products and events within the community)
- Increased customer satisfaction
- Decreased customer support calls
- Increased brand awareness of your products and company
- Increased customer insight and loyalty
- Indirect revenue improvement
Increased product knowledge
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