ROI calculation

RedBridge ROI calculation report

http://www.redbridgesoftware.com

Introduction

This ROI calculation tool gives a clear indication of how much time and money will be saved due to the implementation of an appropriate LCM solution. Of course this tool is not perfect if not fully tailored to your organization. It allows you to reflect on how an LCM implementation can help your organization to move forward in the right direction. We are happy to receive your feedback.

The model shows the time savings after the implementation of LCM. We back these savings with numbers and percentages we found in the literature. You will find those figures in the MARKET STANDARD column. We are open to your experiences, opinions and feedback to fine-tune this ROI model. We also invite you to read the business case.

We have set a default of 1 server plus 5 agents, using the subscription plan of 5 years. For different configurations please contact us for a personal calculation.

At the end of this document the sample figures and your own estimation of potential savings are used to calculate the possible return on investment. You will see the results obtained by using the sample possible savings percentage and the results based on your own savings estimation.

Select your currency

Euro Dollar

Select your OS
Note: If you're using a mixed environment then select the "Linux" option.

Windows Linux

Working hours

Note: If you want to adjust these values you'll need to optimize the calculation (adjust hours per stakeholder) on the next page.

Team composition


What's next

At this point we offer you the choice to either optimize your calculation (you can adjust hours, salary and savings) or to skip these details and move on to the conclusion using the Market Standards.

Optimize calculation Skip to conclusion

To calculate the impact of an LCM solution on your organization, the composition of your development team and the complexity of your software environment is vital. The more complex, the larger the team; the more diverse the team, the higher the potentials savings following on the investment of an LCM solution. Please fill in the input boxes to calculate the impact of an LCM solution on your organization.

This ROI model automatically assumes 1 CEO, 1 CFO and 1 CIO.

You can adjust the hours each stakeholders spends on development related tasks (such as versioning, Build process,...) by clicking the "Adjust hours" button.

Team composition

Developers

To calculate the impact of an LCM solution, it is key to have an understanding of what an internal stakeholder does during the week. In an average organization a developer spends 1,5 hours per day (7,5 per week) on the saving of his documents, communicating, checking his version, going back to an old code version.

Most developers are also spending time on the build of an application, need time to update certain issues and will be responsible for or support the deploys and release of an application. Our experience also tells us that he spends 2 to 5 hours on specifying requirements and communicating with business analysts.


How many hours per week does an average developer in your organization spend on:

 Your estimateMarket average

Build Managers

If your organization has a person who is responsible for the build processes, our experience from previous clients tells us that he spends at least 30 hours per week on the building process itself. Build managers spend time on checking if they are using the correct code and on reporting of the project status. Most of the time, he or she is also involved in the approval and reporting process.


How many hours per week does an average build manager in your organization spend on:

 Your estimateMarket average

Deploy Managers

A typical deploy manager is of course responsible for the deployment procedure of the application, but due to the nature of his job he is also closely involved with reporting and spends time on the compliancy of the projects. He spends up to 30 hours a week on the different deploys, must give his approval on several projects and needs to report on the status of a project.


How many hours per week does a typical deploy manager spend on:

 Your estimateMarket average

Testers

Testers are responsible for the quality of the developed software. They are responsible 'to test' the application during the build and deploys phases. We believe that a tester spends approx. 20 hours per week on the testing process itself, but of course checking changed issues and reporting will take a portion of his time as well.


How many hours per week does a typical tester spend on:

 Your estimateMarket average

Project managers

Project managers are responsible for the entire project and are in contact with almost every stage of the development process. They spend time checking the requirements, finding the latest versions of the codes, checking which issues require an update, and controlling the different deploys and final release. Of course, the project manager has to give several approvals and is involved in the reporting of the projects.


How many hours per week does an average project manager in your organization spend on:

 Your estimateMarket average

CIO, CFO and CEO

This ROI model automatically assumes 1 CEO, 1 CFO and 1 CIO.

 CIOCFOCEO

How many hours per week does your CIO, CFO & CEO spend on:

 Your estimateMarket average
 CIOCFOCEOCIOCFOCEO

Next: Savings

Savings

Summary hours and salary

Based on the numbers you entered, we can deduct the following figures.

Number of hours per week people spend on:

 Require-
ments
Version
Control
BuildUpdating
issues
DeployApprovalReportingCompli-
ance

Total cost price per activity per week per role (EUR)

 Require-
ments
Version
Control
BuildUpdating
issues
DeployApprovalReportingCompli-
ance

Savings by implementation of LCM

We have calculated the time and salary spend without LCM in the tables above. Now we set the savings percentage that will be reached in all aspects of the development life cycle after the implementation of LCM. The ROI is based on our sample figures, but also on your own estimation of potential savings.

 Require-
ments
Version
Control
BuildUpdating
issues
DeployApprovalReportingCompli-
ance

Salary cost after implementation of LCM (EUR)

Salary cost per activity on a weekly basis after the implementation of our LCM Solution (EUR).

 Require-
ments
Version
Control
BuildUpdating
issues
DeployApprovalReportingCompli-
ance

Total yearly salary savings (EUR)

Total yearly salary savings due to the implementation of our LCM Solution (EUR).

 Require-
ments
Version
Control
BuildUpdating
issues
DeployApprovalReportingCompli-
ance

Intangible savings (EUR)

In what amount does a faster time-to-market contribute to your business value.


Next: Conclusion

Conclusion

The implementation of LCM has a strong positive impact on your business.

  • The development cost will decrease dramatically
  • Products of higher quality and a faster time-to-market
  • An automated and controlled development process

We have set a default of 1 server plus 5 agents, using the subscription plan of 5 years. For different configurations please contact us for a personal calculation.

 Your estimationMarket

Sanity check: According to Forrester an LCM investment repays itself after 3 to 6 months. (More quotes of industry experts on LCM can be found in our case study document)


Investment cost vs Total savings (EUR)

In the first year the saving are estimated on 329658 by an investment of only 116756 resulting in 237% return on investment.


Total costs before and after implementing LCM (EUR)

The total cost of all development related activities in your organization will decrease with 46% from 736678 to 401239. LCM ensures that your working hours and finances are well spend.


Savings per activity (%)

Most savings will be achieved by eliminating redundant manual and repetitive tasks, such as manual versioning, manual issue updating or when building and deploying is not automated and thus labour intensive. Developers can focus on development, build and deploy managers can be sure that the production is perfectly promoted to the next level. Management is sure that any delivery is done according to the upfront decided manner, so that chances of expensive re-calls are almost non-existent.


Return on investment (EUR) in months

Implementing the solution has a quick return on investment of only 5 months.


Intangible benefits

Even more important are the intangible benefits: chances of financial consequences due to human errors are reduced to a minimum. Rules once defined are enforced and all activities are identifiable.




The information contained in this RedBridge ROI calculation is intended solely to provide general guidance on matters of interest for the personal use of the reader, who accepts full responsibility for its use. While every effort has been made to offer current and accurate information, errors can occur. Therefore this information is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied. You should consult with a RedBridge official sales person familiar with your particular factual situation for advice concerning specific numbers or other matters before making any decision
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