How Long Does it Take to See ROI From Your FM Software?
When implementing new facilities management software, there are thousands of metrics to follow. One of the most important? ROI. Any investment for your business comes at a cost, but determining the long-term value of that investment is essential for determining future business decisions. So, how long does it take to see ROI from your FM software? Here, the logistics software specialists at SCLogic discuss ways you can monitor and maximize your ROI and how our software, Intra, makes revenue generation an integral part of your workflows.
Short-Term Return Opportunities
While seeing significant ROI changes takes time, implementing a new FM software does yield noticeable returns quickly. Many facilities don’t realize how costly their legacy systems and point solutions are compared to a cloud-based software platform. Legacy systems built on-premise require significant IT and staffing costs to ensure the system is working properly at all times. With growing business intelligence solutions, the ability for integrations is limited. Reducing point solutions into one platform significantly reduces costs as well. Instead of working with multiple companies trying to juggle individual payment schedules and service costs, you have a comprehensive solution in one place.
Mastering Hybrid Workplace Management
One of the major ROI determinants for your facilities management software is cost reduction for hybrid employees. As the hybrid workforce expands, enterprises are utilizing FM software to save on real estate and energy costs. A recent study from Global Workplace Analytics found that companies can save up to $11,000 per employee working 2-3 days remotely per week, noting increased productivity, reduced rent, and lower absenteeism as factors.
How long will it take to see ROI from workplace management changes? While it varies based on the complexity of your business, you will likely see a significant change within 3-6 months of implementing your new FM platform. With our Workplace Services Workgroup, managers can identify inefficiencies in energy costs through workplace management integrations to see which spaces in their facility are most popular or are not being used. As a result, FMs can optimize scheduling for electricity, heating, air, and more. This reduces energy costs for your team and promotes greater ESG efforts, leading to opportunities for potential sustainability grants.
The Power of Proactive Maintenance
Proactive maintenance has always been one of our favorite topics to discuss. The cost savings and optimization from a true proactive maintenance strategy are astounding, and for companies trying to maximize ROI, this is how you do it. In a recent study, half of the surveyed companies said they spent 21-40% of their operating budget on their maintenance budget alone. For those solely working with reactive maintenance, this percentage is likely higher.
Our Asset Logistics Workgroup was created to help your team develop a complete proactive maintenance strategy, sending your ROI through the roof. With traditional maintenance, facilities teams are left to use equipment and technology to their breaking point, leading to increased downtime and repair costs. A 2020 ITIC study showed that over 30% of enterprises spent $1-5 million on just one hour of downtime. Imagine what a day, even a week of downtime costs would accrue. With Intra, you can create a configurable analytics dashboard to monitor the entire asset lifecycle of all vital assets.
Not only can you create customized maintenance schedules with automated task generation for your team, but you can identify factors such as the mean time between failure and the mean time to repair to identify frequent malfunctions and replacement needs. According to the U.S. Department of Energy, investing in a proactive maintenance strategy can yield an ROI of up to 10 times the cost. As for timing, ROI for maintenance will generally be seen within the first year, depending on the scale of your facility and equipment. Note that the longer your system is in place, the higher the returns.
Invest in Digital Transformation Software with SCLogic
When it comes to investing in new facilities management software, the choice can be difficult. We are in a year of unprecedented technology growth and an uncertain financial state. Business decisions this year should not be taken lightly, and we make it our job to provide your sole solution for logistics needs. While Intra immediately provides automation and optimization for your team, we know that ROI is vital to keep our system in place. We solve your most complex logistics pain points in a user-friendly platform that does it all. To learn more about our workgroups and see potential cost savings for your team, email [email protected] or schedule a demo with our team today.