Thursday, 11 December 2008

ROI of Social Software

I love writing about ROI and here is another post that interested me. The post from the blog of Jon Mell describes how ROI can be used to get approval for a Social Software application.

There are a number of reasons for this...

Firstly "Social software can often be approved on the basis of time saving, even if the true value is innovation."

Secondly "it is easier to make ROI cases for social software projects which involve collaboration between people who know each other, as opposed to projects designed to help you find people you don’t know"

Finally "there is a good reason why social projects to help you find expertise and innovate with people you might not otherwise know have such trouble with ROI. Traditional IT projects have an ROI because they help speed up business processes. They might allow a client to sign up over the web, for example. An organisation knows how many clients they sign up per month, how long that would take their staff over the phone, and what that cost is in terms of salary. They can therefore work out how much they would save if 50% of their clients signed up over the web instead"

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