Calculating  ROI

Of the many factors that contribute to ROI , some are less easy than others to calculate as a monetary value. However, in the case of Immediacy it is straightforward to build a compelling ROI model using cost savings alone.

 

Consider the figures in the tables below.

Static Site: Development Costs

 

Role Rate Hours/Page Cost
Web Developer

£40

2

£80,000
Web Designer

£30

1

£30,000
Content Conversion - Web Developer

£40

0.5

£20,000
Total Cost    

£130,000
Cost per Page    

£130

Content Management System Site: Development Costs

 

Role Rate Hours/Page Cost
Web Developer

£40

8

£3,200
Web Designer

£30

2

£1,200
Content Conversion - Web Developer

£25

0.25

£6,250
Total Cost    

£10,650
Cost per Page    

£10.65

 

Costs indicated are based on a website of 10 templates and 1000 pages

 

The model shows a web site of 1000 pages and compares the development costs of a site of static pages with those of a site managed using Immediacy templates. The model assumes 10 templates would be required for 1000 pages. In practise there may well be fewer than this. The hourly rates shown for Web Developers, Designers and for content conversion/entry are based upon notional averages.

 

Even for a moderately sized web site, the model reveals more than a tenfold difference between the development costs involved. Adjusting the variables to allow for lower hourly rates and different levels of development activity may reduce the difference slightly, but the savings will remain substantial.

 

This is a compelling result. However, omitted from this table is the initial investment required - system costs, deployment and user training. With many systems these costs are substantial, requiring either a very large site of a much longer period in order to deliver ROI at all.

 

On the other hand, the transparent and competitive pricing of an Immediacy solution means that the savings illustrated are sufficient, even against higher enterprise levels of Immediacy deployment, to deliver ROI within months of acquisition. Thereafter, the on-going cost savings in Web maintenance will continue to enhance the ROI into the future.