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Formula: (Q1 * Q2 * €6.25) + ((Q1 * (Q2 * 110%) * Q4)) * 0,5)
Here we estimate the annual savings achieved through better project management with HIPE Process.
The first part of the formula, Q1 * Q2 * €6.25, evaluates the savings in project management time, where each project benefits from a 25% reduction in working time thanks to improved processes (on €25/h average loaded salary: €6.25).
The second part of the formula takes into account projects with blocking problems (Q4) and the additional time needed to resolve them (Q1 * (Q2 * +10% of average project time)). We estimate a reduction of at least 50% in these problems, thanks to HIPE's advanced validations for better qualification and more complete gathering of customer needs, and thanks to e-mail and in-app notifications that enable more efficient collaboration while reminding each person of their day-to-day tasks (task reminders, due dates, etc.).
By combining these two aspects, this ROI calculation formula enables you to quantify the direct impact of HIPE Process on reducing project management time, as well as more effectively resolving or even avoiding blocking problems during the course of a project, giving you a realistic estimate of potential savings per year.
Sources :
Reduce project management time by 25%:
A McKinsey study has shown that the use of project management tools can increase productivity by 20-30%. Our estimate of 25% is therefore conservative and realistic.
50% fewer blocking problems:
According to the Project Management Institute, organizations using standardized project management practices have 33% fewer failed projects. Our estimate of a 50% reduction in critical problems thanks to better qualification and collaboration is therefore plausible in the current market context (many more requests from year to year for an almost unchanged volume of sales).
Impact of notifications and reminders:
A study by Asana revealed that employees spend an average of 60% of their time managing their work rather than doing it. Automated notifications and reminders can significantly reduce this unproductive time. This criterion is not even taken into account in our calculation.
Average cost of errors and delays:
According to a KPMG study, the average cost of a project failure is estimated at 12% of the project budget. Our assumption of a 10% cost premium for problem projects is therefore conservative.
Formula : (Q1 * Q3 * Q5) * 5% (Q1 * Q3 * Q5) * 5% (Q1 * Q3 * Q5)
This calculation estimates the additional sales generated by better project management. By taking the number of projects transformed into orders Q1 * Q3 and multiplying it by the average value of a closed sale (Q5), we obtain a projection of your company's revenues.
A factor of +5% is applied to reflect modest but tangible growth thanks to the increased efficiency brought about by HIPE Process.
This percentage is chosen to illustrate a realistic increase in sales, taking into account improvements in processes and project management, without overestimating the gains.
Formula: Result 1 + Result 2 -(€15,800/3)
This calculation evaluates the return on investment of HIPE Process over one year. By adding up the annual savings (R1+R2), then subtracting the total cost of the solution over 3 years (€15,800 divided by 3 to give an annual cost), we obtain an estimate of the net return on investment.
The cost of €15,800 includes initial and recurring costs for using HIPE Process, providing a comprehensive and realistic estimate of the expenses incurred. This 3-year approach allows start-up costs to be smoothed out over 1 year, and the full benefits of process improvement to be captured in year 1, providing a clear perspective on the profitability of the investment.
