Return on investment
What ROI can you achieve?
Some features are specifically designed to increase profitability. In this case, you should have a minimum expected return on investment from them. Use this straightforward return on investment (ROI) calculation to see how much you could save:
Development team cost
The cost of the teams that didn’t achieve their expected benefits multiplied by how long they spent on the work.
For example:
£1m annual cost per team (2 teams worked on this) multiplied by half a year (0.5) = £1m lost.
Opportunity cost
The expected benefits of the failed feature.
For example:
Expected benefits of £1.2m to £1.6m were not achieved.
Even if you don’t have an exact figure for the opportunity cost, it is unlikely that you would have wanted to spend more on development than you get back.
But the results weren’t guaranteed!
Innosee’s methods can help you find out if your strategy won’t work earlier. For example, you could even stop at the strategy stage if you discover the problem you are solving isn’t big enough. Worse still, you may not even be measuring your changes and not know your results.
Anti-patterns and ROI
Consider your own organisation’s maturity against the following four areas. Where do you need to improve?
