What is ROI? Return on Investment is one of many ways to evaluate a proposed investment. It compares the gains anticipated from an investment against the cost of the investment.
When a company decides to implement a claims management system, several factors bring them to this decision. The decision factor is based on the ROI of the technology in question.
A good return of investment would provide your business with a more effective way of doing business. Here’s a list of several factors you should consider when making this business decision:
- Will this system allow us to gain rapid access from anywhere?
- How much time would employees save by having immediate access to claims related data (no more hunting for information or files)?
- Are there advantages by running web-based technology?
- What security access is in place with this business system?
- Will this investment in technology increase business performance, productivity, portability?
- How will this business system make my company more scalable?
- Will this system increase organizational speed?
- Will this investment provide rapid and easier access and exchange of information for my clients?
- Would this business system provide me with a new marketing tool to give my company a competitive edge in the marketplace?
- Would this business system reduce IT costs?
- Would this system bring employee satisfaction?
- How will this system support insurers/ clients?
- How will this system eliminate costly manual errors?
- How will this system make employees more accountable?
- Does this system provide several management level performance measurement tools/ reports?
- Would this business system save time and manual errors when billing files? (a very important part of your business, revenue generation)
- What costs would be saved in having a portal for insurers/ clients?
- By having input on upgrades/ enhancements made to this business system, how will this assist my company?
- What would be the training time involved, and ramp up time for my organization?
- Does the business system provide templates to assist in reducing errors and also save administrative time?
- Does this business system provide you with the tools to track employee performance and minimize mundane tasks of running an organization?
- What costs could be saved by running a paperless office?
The above list will help you identify the cost saving benefits a company can expect by implementing a software solution. Each company that reviews their cost savings will save a different amount of “cost savings” depending on the size of the company, and the different policies each company has in place and how they operate their business.
To summarize ROI in a very basic example: If a business system cost your company $80.00 per user per month, but the ROI was that each employee saved 20 minutes per day by using this system, the cumulative cost savings would be enormous. In this example, each employee would save an average of 1.66 hours per week, on a yearly basis that would amount to 86 hours per year. If you calculate the cost of running a business system vs. the cost savings it provides the company, the benefit of running a business system actually pays for itself, and actually generates additional revenue by having it in place) – Now that’s a business solution every company could use!