There has been a growing trend in the last few years trend among small and midsize businesses (SMBs) who are looking to purchase project management software. These SMBs are usually purchasing software for the first time. They also need to build a business case by creating an analysis for the benefits and costs of a PM solution as well as calculating the software's ROI. The steps are listed below:
Step 1: Gather the Necessary ElementsWhen potential buyers want to build a business case for project management software, their case needs to include the following elements:
- Executive summary
- Execution timeline
Step 2: Use ROI to Make Your CaseThe most important aspect for all decision makers when purchasing a software is the cost of purchasing and implementing the new PM solution. Their role when picking a software is to create a balance between organizational spending with internal efficiency and output. This means they will want to see financial benefit and a business justification for the purchase. They need to know that the benefits of implementing the software will outweigh the costs. After which, the decision makers determine if the case is accurate and whether or not the benefits would actually outweigh costs. They will do this by calculating the return on investment (ROI). Since they will be considering ROI as the main deciding factor, the argument should structure around this as well. This is the way to calculate the ROI: (gain from investment – cost of investment) / (cost of investment).
Step 3: Calculate Your ROIThe biggest return on the investment when it comes to implementing project management software is the cost savings caused due to the increase in efficiency. Project management software improves working processes, making everything faster and now users have time on their hands to do non-repetitive tasks and keep track of their projects better.
- A lot of SMBs are looking to invest in project management software for their businesses
- They need to influence the stakeholders and decision makers to invest in PM software
- This can be done by creating an analysis to showcase the cost and benefits and the increase in ROI by installing the software over time