Formula: (Q1 * Q2 * €6.25) + ((Q1 * (Q2 * 110%) * Q4)) * 0.5)

Here, we estimate the annual savings achieved through improved project management with HIPE Process.

The first part of the formula, Q1 * Q2 * €6.25, assesses the time savings in project management, where each project benefits from a 25% reduction in work time due to process improvements (based on an average loaded salary of €25/hour: €6.25).

The second part of the formula accounts for projects encountering critical issues (Q4) and the additional time required to resolve them (Q1 * (Q2 * +10% of the average project time)). We estimate at least a 50% reduction in these issues thanks to HIPE’s advanced validations for better qualification and more comprehensive collection of customer needs, as well as email and in-app notifications that enable more effective collaboration by reminding each person of their tasks daily (task reminders, deadlines, etc.).

By combining these two aspects, this ROI calculation formula allows you to quantify the direct impact of HIPE Process on reducing project management time, as well as more efficient resolution or even avoidance of critical issues during a project, giving you a realistic estimate of potential annual savings.

Sources:

25% reduction in project management time:
A McKinsey study showed that using project management tools can increase productivity by 20-30%. Our estimate of 25% is therefore conservative and realistic.

50% reduction in critical issues:
According to the Project Management Institute, organizations that use standardized project management practices have 33% fewer failing projects. Our estimate of a 50% reduction in critical issues through better qualification and collaboration is therefore plausible in the market context we know (with increasing demand year after year for nearly the same revenue volume).

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 actually doing it. Automated notifications and reminders can significantly reduce this unproductive time. This factor is not even included in our calculation.

Average cost of errors and delays:
According to a KPMG study, the average cost of a project failure is estimated to be 12% of the project budget. Our assumption of a 10% overrun for problematic projects is therefore conservative.

Formula: (Q1 * Q3 * Q5) * 5%

This calculation estimates the additional sales generated by improved project management. By taking the number of projects converted into orders (Q1 * Q3) and multiplying it by the average value of a closed sale (Q5), you can project your company’s revenue.

A +5% factor is applied to reflect modest but tangible growth thanks to the increased efficiency brought by HIPE Process.

This percentage is chosen to illustrate a realistic increase in sales, accounting for the 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 the annual savings (R1 + R2) and then subtracting the total cost of the solution over 3 years (€15,800 divided by 3 for the annual cost), you get an estimate of the net profitability of the investment.

The €15,800 cost includes initial fees and recurring costs for using HIPE Process, providing a complete and realistic estimate of the expenses incurred. This 3-year approach spreads the startup costs over 1 year and fully captures the benefits from process improvements as early as year 1, offering a clear perspective on the profitability of the investment.