This is week 7 now, and the topic for this week is “ROI”. So, what is ROI stands for? It stands for Return On Investment. Obviously, it analysis how a company used a financial metrics for evaluating the financial consequences of business investments, decision, or actions; moreover, it indicates the value that return from investment must cover all the enterprise’s targets. As a result, how can those successful enterprises calculate ROI value?
As we can see from the formula, ROI can simply be calculated. And the main element is “investment cost”; if the investment is much lower than gains, it makes profits and return good value; on the contrary, if the investment costs is higher than income, it decreases the ROI value and might damage to the company. Therefore, ROI is essential around the enterprise 2.0; it assists the company and identifies the good returns.
Here is a case study about the financial benefits of using LAN Planner and Broadband Planner in Motorola.
Both LAN Planner and Broadband Planner help system integrators and resellers propose, design and deliver indoor and outdoor wireless network solutions that afford maximum performance at minimum costs.
Business analysis of the benefits reveals the following highlights, based on a three-year study period:
- By using LAN Planner for designing indoor wireless networks, a system integrator or reseller will gain a cumulative, projected three-year net benefit of $73,300, driven by reduced labour and troubleshooting costs, avoiding the purchase of unnecessary hardware and software, and increased revenue. The system integrator or reseller will see a three-year ROI of 482%, with a payback period of seven months.
- By using Broadband Planner to design integrated outdoor wireless mesh and point-to-multipoint networks, a system integrator or reseller will gain a cumulative, projected three-year net benefit of $101,400, driven by bid preparation savings, reduced labour and troubleshooting costs, avoiding the purchase of unnecessary hardware, and increased revenue. The system integrator or reseller will see a three-year ROI of 412%, with a payback period of five months.
Transfer to diagram:
Even though LAP Planner designs for indoor wireless networks, Broadband designs for outdoor wireless mesh and point-to-multipoint networks; but why they have different value of ROI? And, because of the ROI value is higher than Broadband Planner. Would you suggest this company to adopt LAN Planner as outdoor networks? Leave that to you. 🙂
Motorola, Inc.(2010). “The Financial Benefits of Using LANPlanner and BroadbandPlanner”. Retrieved September 12, 2012.
Blanchard,O.(2012). “101 success stories: yes. 101 examples of ROI: no. Here’s why”. Retrieved September 12, 2012.
Marty J. Schmidt.(2012). “Return on Investment (ROI): Meaning and Use”. Retrieved September 12, 2012.