July 5, 2011
Traditionally, ROI is defined as “The amount expressed as a percentage that is earned on a company’s total capital calculated by dividing the total capital into earnings before interest, taxes, or dividends are paid” (Webster’s Online Dictionary). In recent years, additional areas have been identified, and discussions about Social Return on Investment (SROI), and Return on Environment (ROE) are not a rarity (the latter will be discussed in a separate, future blog).
Return on Investment (ROI) is considered to be a fundamental aspect for business success in every industry, and one of the most important calculations a business should do. The digital signature technology’s economic rate of return is high, achieving an exceptional value for the business, its customers, and its shareholders. The deployment of digital signature solution shows significant rises in profit gains, business productivity, and improved efficiency due to:
- Reduction of variable costs – eliminates the Print – Sign – Scan – Delivery of documents
- Reduction of fixed costs – eliminates the need for storage, maintenance, and security of documents
- Proper use of workforce – staff freed from paper handling to handle core business
- Reduction of Directorial related costs – internal and external managerial monitoring operations take place online
A survey conducted in 2010 compared the gain of benefits to set-up costs for users of digital signatures technology. The feedback revealed that 63% of users achieved ROI in 12 months or less, and 78% in 18 months or less. The results exceeded users’ expectations and represented an incomparable financial outcome for an IT project. (Doug Miles, 2010, AIIM, www.aiim.org/research)
Whether we call it ROI, Rate of Profit, or just Return, — We Show You the Money!
Till next time,
Cheers, John.