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Created with Fabric.js 1.4.5 Qualitative returns are difficult to measure because the values cannot be calculated, measured or tracked as easily as quantitative metrics. However, qualitative measures can increase the potential to maximize profit. But a Penny Should Be Pennies Earned... But a Penny Should Be Pennies Earned... - - Customers are the main reason you are in business so it is sensible to ensure new technologies or lack thereof are not highly disruptive to your operations. Problems such as failure to upgrade, slower service or unsatisfactory customer service can create a negative perception of an organization. In a competitive environment, as customer expectations rise, consumers will choose companies that more closely meet their expectations. An assessment on how this new technology affects customer satisfaction, brand loyalty, perception, and the overall customer experience is vital to properly evaluatingan investment. CONNECT WITH US: - How will the technology impact your business? - Will this technology investment boost employee morale?- What are employee views on the new technology?- Will the technology improve employee retention?- Will it increase efficiency? - How much training is needed? Is it intuitive? - Does it require ongoing maintenance?- Will this technology make tasks easier? Faster? How? SALES / REVENUE & EXPENSES: A spike in sales or revenue after implementation of a new investment usually indicates added value. Reduced costs such as overhead, energy costs, labor costs, and insurance costs reflect an improvement in efficiency. PAYBACK PERIOD: The amount of time required for the benefits to pay back the cost of the project.NET PRESENT VALUE (NPV). The value of future benefits restated in terms of todays money.INTERNAL RATE OF RETURN (IRR). The growth rate a project is expected to generate. Shrewd business people know the value of any investment should far exceed the dollar amount spent, however, calculations are not always easy to determine. Companies struggle to justify investments because of obscure results. Return on Investment (ROI) is a simple metric used by businesses to appraise the value of an investment considering potential "costs and returns. But, the problem is in the definition of gains and costs. The true valuation of ROI includes much more than numbers. Frequently, decision makers use quantitative measures to calculate ROI however, qualitative benefits from technologies can also greatly impact operations. The value of new technologies can save time, build morale, brand equity, enhance partnerships -- or could result in the reverse if improperly implemented. Below is a quick guide to assist managers in the evaluation, and ultimate success, of implementing technology investments: A Penny Saved is a Penny Earned... A Penny Saved is a Penny Earned... Most commonly used are financial metrics which are reflected in the organization's financial statements. CUSTOMER PERCEPTION QUANTITATIVE MEASURES TIPS: (GAINS - INVESTMENT COST)---------------------------------- INVESTMENT COST CUSTOMER PERCEPTION ROI = @ Datamaticsinc CALCULATE: ASSESS CUSTOMER PERCEPTION: ASSIGN VALUES TO YOUR ALTERNATIVES: Two Two Spent Spent MEASURE: EMPLOYEE PERCEPTION: Employee buy-in is crucial to achieving success in any project. Employee perception can influence productivity especially if the employees are directly impacted by the new investment. Below are a few questions to consider when assessing the impact of the investment on employee perception: 1) Record all metrics before & after implementation.2) Be cognizant of all opportunity costs.3) Involve all key personnel affected by the investment.4) Conduct adequate research. A quick, uninformed decision can be costly.5) Consider the impact on competition.6) Consider implementation costs.7) Assign comparable values to allmeasurements @ Datamatics Management Services, Inc @ Datamatics Management Services, Inc PRIORITIZE: For the investment in question, list the most important goals or factors in considering the ROI and organize them from most important to least. (eg. increase sales, decrease customer turnover, decrease labor costs, etc.) Also, ask all key personnel to repeat the same exercise including the CEO, CFO, CTO, and COO. In comparing, all lists may be significantly different in regards to goals and priorities. This exercise can help align interests and uncover additional factors to measure. Consider your opportunity costs. What else could you be doing with your money? What kind of return or benefits could you receive? Every decision forgoes another decision and the benefits you could have reaped. QUALTITATIVE MEASURES
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