Recent news reports announced that many large U.S.-based companies are sitting on record levels of cash. Due to fears that the economic
downturn is far from over, companies are staying the course by not hiring or making few investments in new plants, products and technology.
Decision makers feel it is necessary to scrutinize each allocation of funds, if and when any allocation is made.
Return on Investment Analysis Service Offering For IT Vendors
Phase 1 - Uncovering Benefits
Our experienced consultants collaborate with your sales and marketing teams to develop benefits that reflect the business value of your
products and services in a language that decision makers understand.
CIO, CFO, CMO, VP of Sales, VP of Marketing in IT Vendor Companies
Aware that this climate of fear exists, IT vendor companies are required to present proof that investment in their products is worthwhile. A
company wishes to know more than ever why it should make an investment in a vendor's product or service. Prospective clients may require
an IT vendor company to meet with their decision makers to allay fears of investing in new products and services.
The Return on Investment Analysis for IT Vendors service offering delivers a working model to an IT vendor company for use with its
prospective clients to demonstrate the worthiness of investing in the company's product or service. Each phase of the three phase offering is
important yet a company may elect to develop an ROI model only to produce case studies and an industry paper. Therefore, the ROI model
would not require the amount of attention to detail as one that will be used by a vendor's sales team and the amount of time spent in phase
2 is reduced.
Vendor executives all have a vested interest in developing an ROI model for client companies. Sales and marketing executives understand
the importance of providing the sales team with new tools that will:
• Provide an estimate of financial justification for an investment
• Validate a vendor's selling points
• Provide a competitive edge
• Present an understanding of client's needs
• Demonstrate technology talking points in layman's terms
What is the best tool to use to assist a vendor's selling efforts and establish proof that an investment in the product or service you are
selling is worthwhile?
The most popular metric to confirm business benefits is "return on investment" (ROI). Key decision makers rely on this measure to
demonstrate and justify an investment's value and establish tangible results.
ITPMG works with an IT vendor company to create an ROI metric as a tool so the vendor's sales team can demonstrate real, measurable
benefits to a prospective client company. A vendor company can then interact with client financial decision makers to present a credible,
common measure of benefits that your company can deliver.
ITPMG has assisted a variety of technology vendor companies in constructing ROI models. These models help to communicate the selling
points necessary to alleviate the fears that companies have in making an investment in an uncertain environment.
You can use an ROI tool to:
How do you convert technical jargon into business benefits that determine an ROI?
Sales and marketing benefits identified for use with collateral materials
Phase 2 - Creating an ROI model
The ITPMG consultants assist a vendor's staff in determining what product and service features best translate into measurable benefits.
Once these benefits are determined, the working team decides a structure for an ROI model; that is, the best platform for the model to be
delivered, the size and appearance of the model, how to build in ease of use to the model, etc. The ROI-building team will provide a limited
number of iterations in the creation of the model until decision makers are satisfied.
What business benefit will enable achievable and credible metrics?
• Project plan for the creation of an ROI model
• An ROI model created to measure business benefits of a specific technology
Phase 3 - Proving Benefits
ITPMG consultants work with representative vendor clients to identify appropriate inputs to test the model with three existing clients of the
vendor. The model must produce credible results that include the measurable benefits of the product or service, which make sense to
evaluate, and ring true to an executive decision maker.
What is the best means to demonstrate a credible ROI to decision makers?
Three case studies as a result of client interviews and evaluations of investments made in vendor products or services.
An industry report on a specific vendor technology
• Allow sales representatives to call higher in the client organization
• Provide what top-level client management is requiring to make ROI decisions
Vendor and Technology Analysis Service Offerings
Return on Investment Analysis Service Offering for IT Vendors
Business Intelligence Strategy
Vendor/Product Short List
Data Center Strategy
Data Center Consolidation