How to measure ROI on an enterprise software project: metrics and calculation model

Measuring ROI on an enterprise software project is not an accounting exercise — it's the difference between a project that secures funding for the next phase and one that dies in the first sprint for lack of justification to management.

• •Define success metrics before writing the first line of code: hours saved per week, error reduction, capacity increase without adding headcount, and cycle time reduction are the four most universal KPIs.
• •Enterprise software ROI always has two components: direct return (operational cost eliminated) and indirect return (commercial velocity gained, errors avoided, ability to scale without hiring).
• •To justify the investment to management, use the 36-month comparison model: project cost vs accumulated status quo cost (manual time × hourly cost × months + error impact).

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