How do I calculate the ROI of CMMS?
Calculating the ROI for any program is certainly difficult and can be estimated to some degree. There are a lot of tools that can help you estimate this, but it is always dependent on your current business and workflow.
Since it seems like you are most interested in calculating the ROI of mobile CMMS, I’ll try to highlight my thoughts around that rather than just providing generic information about CMMS as a whole.
Obviously to calculate ROI the simple equation is
CMMS ROI = (CMMS Value – CMMS Cost) / CMMS Cost
Once we get past all of that, we realize that ROI value on CMMS systems are completely dependent on how your team adopts a CMMS and if they follow through with using it. I’d like to say that often cases there is a net negative ROI on CMMS because implementations fail and money is poured down the drain. At the end of the day what is most important is – are we getting actionable insight into our workflow using a CMMS and is this making our jobs easier?
1 – The biggest ROI for mobile CMMS is in productivity.
Ask yourself… How much time is wasted running back and forth to a desktop inputting information in? Realize that there is a huge issue of double entry with desktop solutions. Technicians wind up writing notes on a pencil and paper, and then come over to a desktop to enter all of their information into their web based CMMS. With iPads and tablets out in this field they can completely eliminate this step.
2 – Document Management
How much time is wasted sorting through papers and files? Would it have been easier to scan a barcode to get directly to a particular file… Or going through your digital document management system
3 – Setup costs
Nowadays with web based solutions setup costs are baked into the monthly or annual cost of the software so you don’t wind up paying anything upfront to the vendor. However, there is a big setup cost involved with purchasing tablets for your team and training them internally on how to use the system.
Obviously, we at UpKeep are committed to ensuring a positive ROI and a successful implementation of your CMMS. If you have any questions, please reach out to me at firstname.lastname@example.org