Views: 17
Summary – The proliferation of digital tools makes true software ROI hard to isolate if you only consider license costs. By combining usage reporting (frequency, duration, modules used), specific business metrics, and governance (steering committee, business champions, targeted training), you can identify optimization levers and correct adoption gaps.
Solution: implement usage tracking → tailor KPIs by function → establish governance and rationalize the application portfolio to maximize value.
In an environment where the number of digital tools continues to grow, measuring software return on investment (ROI) remains a challenge for many decision-makers. Too often reduced to a simple comparison of license costs versus projected savings, true ROI takes the form of a combination of tangible gains and actual usage.
Adopting a broader vision focused on business integration and team adoption allows you to link the budget invested to concrete operational indicators. At a time when application density is increasing, this pragmatic, context-driven approach is essential to ensure the lasting value of your software investments.
Measuring True Software ROI
ROI is not just a budgetary equation. It is reflected in operational impact and actual use of business tools. Shifting from a theoretical calculation to an analysis based on usage data reveals discrepancies and helps to realign priorities.
Understanding the Limits of a Purely Financial Approach
Many organizations calculate ROI by comparing license costs to assumed savings, such as reduced labor hours. This approach often overlooks ancillary expenses: integration, training, support, and updates.
In practice, software can generate hidden costs due to misconfiguration, underutilized features, or lack of adoption reporting.
This gap between projections and reality can lead to a misleading ROI, masking structural usage issues and process optimization opportunities.
Collecting Usage Data to Objectify Value
Implementing usage-tracking tools (session reporting, event logging, performance indicators) provides a factual view. It allows you to measure frequency and duration of use by each business function.
These data reveal which modules are actively used and which remain inaccessible or ignored by teams.
By pairing these metrics with operational performance metrics (processing times, error rates), you can quantify the concrete impact on operations. To learn more, discover how automate your business processes.
Concrete Example from a Swiss Industrial SME
A manufacturing SME purchased a production-management solution without driving adoption. Usage reports revealed that 70% of the planning features were not activated by operators.
Based on these insights, the company adjusted its rollout and delivered targeted training. The result: a 15% reduction in delivery delays and a 25% drop in support calls.
This example demonstrates that data-driven governance enables rapid deployment adjustments and transforms software into a genuine operational lever.
Adapting ROI Indicators to Business Functions
Each department holds specific value levers. KPIs must reflect the unique challenges of production, HR, procurement, or finance. Defining tailored metrics ensures that ROI is measured where it drives the greatest impact.
HR ROI: Time Saved and Employee Autonomy
For HR teams, the adoption of a Human Resources Information System (HRIS) is measured by reduced time on administrative tasks (leave reconciliation, absence management).
A relevant KPI may be the number of man-hours freed per month, converted into avoided costs or redeployed to higher-value activities.
Employee autonomy, measured by the self-service rate (submitting timesheets or expense reports without support), completes this picture to assess qualitative gains.
Procurement and Finance ROI: Data Reliability and Expense Control
Procurement management software delivers ROI through its ability to generate compliant orders and provide expense traceability. Expense traceability ensures compliance and transparency.
Invoice anomaly rate and average approval time are key metrics for finance. They reflect data quality and process efficiency.
Close monitoring of budget variances, coupled with automated reporting, secures governance and reduces internal audit costs. Budget variances analysis supports proactive decision-making.
Example from the Training Department of a Public Institution
A public institution’s training department deployed a Learning Management System (LMS) without defining clear KPIs. An audit later showed that only 30% of the courses were completed.
After redefining the metrics (completion rate, average learning time, quality feedback), awareness sessions were conducted with managers.
Result: a 65% completion rate within six months and a 40% reduction in managerial follow-ups, illustrating the value of tailored business indicators.
Edana: strategic digital partner in Switzerland
We support companies and organizations in their digital transformation
Driving Adoption to Maximize Value
Training and change management are at the heart of ROI optimization. Without effective adoption, software remains a recurring cost. A structured support plan ensures appropriation and integration of new operational practices.
Establish Usage Governance
Setting up a steering committee that brings together the CIO, business managers, and sponsors meets periodically to review usage indicators and prioritize optimization actions.
Formalizing roles (super-users, business champions) spreads knowledge and keeps teams engaged.
This governance framework prevents best-practice erosion and fuels a virtuous cycle of field feedback.
Provide Targeted, Iterative Training
Beyond initial sessions, support is delivered in waves and short modules to maintain focus and adjust content based on field feedback.
Training is enriched with real-world cases and lessons learned, boosting learner motivation and engagement.
An internal mentoring or e-learning setup, combined with progress tracking, ensures continuous skill development. For seamless integration, consult our guide to a smooth, professional onboarding.
Example from a Customer Service Department in a Service Company
A support center deployed a new CRM tool without sustainable follow-up. After two months, the ticket logging rate had collapsed.
Joint coaching sessions in small groups and weekly follow-ups restructured the approach. Super-users shared best practices and led workshops.
In three months, the correct ticket-logging rate rose from 55% to 90%, reflecting stronger adoption and improved service quality.
Governance and Rationalization of the Application Portfolio
Regular audits of the software estate identify duplicates, underused tools, and vendor lock-in risks. Rationalization and consolidation optimize costs and reinforce process consistency.
Map and Categorize Applications
The first step is to create a comprehensive inventory of all tools, from standard packages to custom developments.
Each application is assessed based on criticality, usage frequency, and total cost of ownership.
This mapping then guides decisions on retention, consolidation, or replacement.
Prioritize by Business Impact and Risk
High-impact applications (critical production phases, transactional flows) are prioritized for security and performance audits.
Low-usage or duplicate tools become candidates for removal or functional merging.
Considering vendor lock-in helps evaluate future flexibility and anticipate migration costs.
Optimize with Modular and Open Source Solutions
Leveraging open-source components integrated into a common foundation limits licensing fees and ensures controlled scalability.
Hybrid architectures combine these components with custom developments to precisely meet business needs.
This context-aware approach avoids technological dead ends and strengthens the sustainability of the application ecosystem. Learn how to modernize your applications.
Turning Software ROI into a Strategic Lever
Measuring and managing software ROI requires moving beyond a purely budgetary view to integrate actual usage, team adoption, and portfolio rationalization. By defining precise business indicators, supporting change management, and regularly governing applications, you achieve a coherent, sustainable digital transformation.
Our experts are available to help you structure your ROI governance, define KPIs aligned with your objectives, and rationalize your application portfolio in a context where quality, cost control, and sustainability are paramount. Explore how digitalization increases a company’s value.
