Filetype Excel XLSX | Posted on 16 Aug 2022 | 3 years ago
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248x Filetype XLSX File size 0.06 MB Source: in.nau.edu
Sheet 1: ROI Definitions-page i
| Return on Investment (ROI) - Definitions and Descriptions | |
| Term | Definition |
| Business Process Advisory Committee (BPAC) | The committee formed to develop tools and processes to aid in implementation of business process. |
| Return on Investment (ROI) | The ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested, expressed as a percentage. |
| ROI Results | ROI is a calculated ratio of benefit to cost. A higher positive ROI is more desirable than a lower positive score with a negative ROI being the least desirable. It is also important to consider the ROI score over a period of time as opposed to just the first year. It is important to note that ROI is just one component that should be considered when deciding to automate a process. See the Factors for Decision Making document for more guidance. |
| ROI Formula | ROI = ((total benefit - total costs)/total cost) * 100 a. Total benefit = the payback to a business unit for a given time, in dollars, this will include any material saving also. b. Total cost = cost to implement and maintain for a given time period, in dollars |
| Steps to Complete Template | Step Description |
| 1) Enter Project Information | Define and enter the project information using ROI-Summary-page1 Project Name Project Tracking Identifier Project Executive Description/goal |
| 2) Enter Resources and Rates | Collect the resource data for the project. Analyze the current business process and estimate the future business process resources. Enter the position title/description and hourly rates using Personnel Resource Rates-page 2. |
| 3) Enter Implementation Cost | Collect internal and vendor quotes, proposals, project scope and Statements of Work (SOW) for estimating the implementation costs for all years which apply. -Enter resources on Costs-ImpResourcesbyHour-page 3 -Enter good and services on Costs-Goods-Services-page 4 |
| 4) Enter Benefits | Analyze the business process to estimate all benefits saved by implementing the solution. Estimating the current and future operational resources along with the units being processed through the business process will be captured for all years which apply. -Enter resources on Benefits-Resources-page 5 -Enter good and services on Benefits-Goods-Services-page 6 |
| 5) Review ROI | Review the results on ROI-Summary-page1 for the annual cumulative number for your project. |
| Page Name | Page Descriptions |
| ROI-Summary-page 1 | Provides the ROI Result in a percentage and dollar amount. It shows initial year and subsequent years to the max five year software lifespan. |
| Personnel Resource Rates-page 2 | This page provides resource rates as of 2010 based on Human Resources and BPAC input. Data MUST be entered on this sheet before it will display in the list for the cost and benefits pages, also if you select a resource on the cost or benefits pages and then change the data on this resource rate page, you MUST reselect the data on the cost or benfits page to update the edited information. |
| Costs-ImpResourcesbyHour-page 3 | This page is used by departments to enter the resource cost to implementing a project. This is an estimate based on quotes and project scope. Add additional resource rows for each different resources. |
| Costs-Goods-Services-page 4 | This page is used by departments to enter the asset cost to implementing a project. This is an estimate based on quotes and project scope. Add additional asset rows for each different asset. |
| Benefits-Resources-page 5 | This page is used by departments to enter the resource efforts involved with performing the current business process and the estimated effort involved with performing the new business process. Add additional resource rows for each different resources. |
| Benefits-Goods-Services-page 6 | This page is used by departments to enter the estimated savings from new assets and supplies required by the new process. Add additional asset rows for each different asset. |
| ROI - Analysis Results Summary | |||||||
| Project Name | |||||||
| Project Tracking # | |||||||
| Project Description | |||||||
| Project Notes | |||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
| Total Cost | 0 | 0 | 0 | 0 | 0 | ||
| Cumulative Total | 0 | 0 | 0 | 0 | |||
| Total Benefits | 0 | 0 | 0 | 0 | 0 | ||
| Cumulative Total | 0 | 0 | 0 | 0 | |||
| Benefit minus Cost by Year | 0 | 0 | 0 | 0 | 0 | ||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
| ROI by Year | #DIV/0! | #DIV/0! | #DIV/0! | #DIV/0! | |||
| ROI by Year(Cumulative) | #DIV/0! | #DIV/0! | #DIV/0! | #DIV/0! | #DIV/0! | ||
| Estimated Units Gain/(Loss) Quantity | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | ||
| Estimated Units Gain/(Loss) Percentage | #DIV/0! | #DIV/0! | #DIV/0! | #DIV/0! | #DIV/0! | ||
| ROI by Year (Cumulative) is the value used by the business as the true Return on Investment results for this worksheet. | |||||||
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