ROI is an important topic, and many times I’ve seen customers are not focusing on ROI assessment before starting PDM/PLM implementation. At the same time, I always found ROI definition and calculation as somewhat mystical. One of my best slides about ROI belongs to CIMData.
SolidWorks made available PDM ROI calculator. I find an CIMData logo on the website. The following disclaimer proves that methods were reviewed by CIMData: CIMData has reviewed this ROI model and finds its benefits ranges to of CIMData’s ROI research and ROI study undertaken by CIMData. The calculator is free and available on this link. Yesterday, I’ve made some experiments. Take a look on the example of the calculation I’ve made.
What is my conclusion? There is no conclusion today. In general, the logic of the calculator makes sense to me. Some of the assumptions are very straightforward, such as dependencies between annual revenues and time-to-market saving; number of ECOs and risk-reduction saving. Try to play with this and tell me what do think. I’d be interested to know your impression and feeling about the data. Does it feel right?