10 Steps To Increase The ROI Of Your IT Systems

Increase The ROI Of Your IT Systems

It’s an unfortunate fact of life that, very often, IT systems, once purchased, are underutilised. This can lead companies to question the ROI promised by suppliers and industry experts. In fact, on average, only 10-20% of the full capabilities of systems are utilised by the end user. However, rather than questioning the suppliers’ promises, we should perhaps re-examine the internal processes of implementation, maintenance and integration.

This is because the work shouldn’t end when the purchase contract has been signed. Quite the contrary; installation is just the beginning of the most important and laborious phase required to maximize the ROI from your IT systems.

Low ROI is often a result of omissions or may be down to poor qualification of the chosen IT vendor. It’s often followed by wasted investments that pass under the radar due to low levels of support and involvement from company management in the implementation process. Another barrier to realising higher ROI is strong resistance from employees, who, by nature, can be reluctant to change.

Below are ten steps to enable you and your team to extract more value from the investments in your existing enterprise systems.

1. Improve your argument

What do you do if you know what must be done to improve the level of system utilisation, but you’re unable to get approval from management? A good part of the fault is in the delivery, as we cannot put 100% of the blame on the decision maker. You also need to know your audience to get “buy-in” from management. Structure your project and show the expected results clearly, both in terms of business benefits and financial results.

2. Map your processes

You can’t automate a process that is not explicitly mapped out. Trying to automate something that is in someone’s head is very close to the children’s game of “telephone,” where mistakes and misunderstandings are made as a whispered message gets passed down from person to person. Clearly mapping the process is the beginning of the discussion on how improvements can be made, but take care to not lose your focus, which, ultimately is to extract better results from current systems.

3. Improve the use of existing resources

Under-utilised IT systems represent a wasted resource. With documented processes in hand, call the vendor to discuss any existing routines the system isn’t supporting, but which it may be able to, to maximise its ROI.

4. Customise to automate

Customisation is something that should be avoided as much as possible, but if you have talked to the vendor as suggested and no out-of-the-box solutions exist, now is the time to customise. The word of caution here is that the customisation needs to be done in a way that enables you to continue to upgrade your systems without creating additional difficulties and costs. Always be on the lookout for automation opportunities. Don’t create routines for users. If there are stable rules that enable the development of automated routines, automate the processes!

5. Integrate your systems selectively

Do not integrate for the sake of integrating. Putting everything on the same system may actually be a detriment to process efficiency. Look for the best opportunities for real-time integration between the most relevant and important processes and systems.

6. Mobilise your processes

It’s also possible to improve the usage of current systems by mobilising processes and enabling employees access to these, through mobile devices from any location, at any time. System use can be jeapordised if employees have to return to the office to input data.

7. Fully train your users

You’ve done everything possible to optimize usage of your current systems; do not forget to fully train your users. This issue is critical and is often not given the importance it deserves.

8. Bring the concept of business intelligence to the operational level

Many BI implementations focus only on extracting information which can be used at a strategic level. Since this has traditionally been based on outdated, archived data, the resulting intelligence has had limited use, and, as a result, BI systems have been underutilised. The best path to make people use BI data is to provide near real-time information that can benefit employees’ day-to-day tasks and responsibilities. Setting up a dashboard using relevant KPIs to monitor team performance is a good example of using BI at the operational level.

9. Keep your systems up-to-date

Do not settle. Upgrade your systems! We know that upgrading systems requires a significant amount of validation effort beforehand and the ‘cleanup’ of unexpected side effects after, but every new version brings many improvements that should be harnessed.

10. Revisit your processes

With the previous steps done, it is time to revisit the process from step one, discuss and plan improvements.

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David Akka is Managing Director at Magic Software Enterprises UK. David is a successful executive manager with a proven track record as a general manager with a strong background in sales, marketing, business development and operations. Past experience in technology and service delivery include both UK and European responsibilities.