Video Briefing

Your ROI Slide Is Wrong and This is How to Fix it

A walkthrough of how to build your own software ROI model instead of relying on vendor numbers, applied to SAP Change Impact Analysis. Covers five figures, where each one physically lives in your organization, who to ask for it, and how long it should take to pull, so the business case survives scrutiny in a steering committee.

SAPSAP TestingTestingQAProcurementSDLC

Key Takeaways

  1. 01

    Vendor ROI numbers are calculated against someone else's program and rarely survive scrutiny, so build your own model with your own data.

  2. 02

    The cost of one regression cycle should include functional analyst time, which books to business cost centers and never appears on IT timesheet exports.

  3. 03

    Pull cycles per year from actual transport import history rather than memory, and count emergency imports separately since they trigger partial regressions.

  4. 04

    The time it takes your team to answer which test cases a transport touched is itself a measurement of why regression scope never shrinks.

  5. 05

    The price of one escaped defect is usually the largest line item in the model and often closes the business case on its own.

Your ROI Slide Is Wrong and This is How to Fix it: transcript and chapter notes

Every software vendor will give you an ROI number. I sell software and I have handed out plenty. In this video I explain why you should throw those numbers out, including ours, and build your own instead. This video applies specifically to SAP Change Impact Analysis but the concept is applied across all software ROI metrics.

The blog linked below lays out the full model. This video adds some additional context, which is where each number physically lives, who to ask for it, and how long it should take to pull.

The five numbers we cover:

  1. The cost of one regression cycle, including the functional analyst time that never shows up on IT timesheet exports
  2. Cycles per year, pulled from your actual transport import history rather than anyone's memory
  3. Your real change rate, and why the time it takes to answer that question is itself a finding
  4. A defensible reduction figure you can stand behind six months later
  5. The price of one escaped defect, which is usually the largest line item and the one that wins the case

If you run the annual regression spend calculation and it is not the first time you have ever seen that number, I owe you lunch. Fill out the contact form and tell me.

Read the full model here: https://www.merito.com/resources/blogs/your-sap-change-impact-business-case-needs-five-numbers-and-none-of-them-come-from-a-vendor

Want a second set of eyes on your numbers or help building your ROI deck? Bring your release cadence and your last regression cost and we will work through it with you. https://www.merito.com/book-consultation

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