TECHNOLOGY IN VIEW
FROM IAN INSIGHTS
Ian is a recognized expert on the return on investment (ROI) and total cost of ownership (TCO) analysis of technology and has written and presented extensively on a range of organizational topics and the importance of matching technology to business organizational objectives.
The Shift from Best-of-Breed to Integrated Suites: Streamlining Costs and Enhancing AI Capabilities
Nucleus has noticed an increasing trend away from best-of-breed applications towards integrated suites. This shift is primarily driven by cost considerations in acquisition, integration, and support. We know integration and consulting costs can often exceed the cost of the software itself, making an integrated approach more cost-effective per work desktop. However, integrated suites offer unified…
How to Build a Value Culture
In the world of business, understanding value is crucial for making effective decisions and prioritizing projects. By focusing on value, organizations can maximize the return on their technology investments and create a culture where employees drive value. Here are some key principles for building a value culture: Focus on Operational Results Value in business is…
The ROI of Analytics: Transforming Decision-Making and Driving Business ROI
In today’s rapidly evolving business landscape, the ability to make informed decisions is crucial. Nucleus has found companies that leverage analytics to drive decision-making gain benefits in three primary areas: reduced costs, increased productivity, and new business opportunities. Reducing Costs Through Data-Driven Insights One of the most significant benefits of analytics, and by our estimate,…
Compliance: A Hidden Driver of Sales
In the world of return on investment (ROI), compliance is often viewed as a necessary evil. It’s not something that directly contributes to the bottom line, but rather an obligation that must be met to avoid future problems. However, when positioned correctly, compliance can be a powerful driver of sales. Imagine a chemical plant that…
Three ways you’re being manipulated by IRR
Internal rate of return (IRR) is often confused with return on investment (ROI). Using IRR sounds impressive but in reality it has nothing to do with measuring the value of an investment. In fact, it’s the most easily manipulated metric there is. If someone is using IRR to convince you to move forward with an…
Human Factors
We talk a lot about ROI, and that’s the focus of Nucleus Research as a technology research firm, but I’ll let you in on a secret, human factors are the driving force to a successful project that delivers a high ROI. You can never overlook the fundamental fact: if the user won’t use it, the…
What is IRR?
Internal Rate of Return (IRR) is a topic that just won’t die. It came up during a conversation with a few CEOs here in Maimi when one insisted it was the best way to evaluate a project. His reasoning was that IRR took into account the time value of money while ROI did not. When…
What is the best timeframe for a business case?
What’s the correct time horizon to use when building a business case? We advocate for a 3-year look but why not 5 or 10 years? Wouldn’t a longer horizon build a more accurate business case? No. Let’s start with a quick refresh on the ROI calculation. ROI is an annual, not cumulative value. A 10%…
How do you create an ROI marketing message?
If we look at the typical objectives of a marketing team they are to generate awareness (and associated lead generation), position against competitors, and educate the market on the product. These are the broad categories, and associated KPIs that keep a CMO awake at night. But you may be missing a critical message that could…
How do you measure the value of reduced risk?
“So how do you measure the ROI from reduced risk?” I was asked that question during a podcast a few weeks ago. It’s a great question, but with a less than satisfying answer. The value of reducing risk is nothing more than the estimate of the cost of an event times the estimate of the…
How perfect does the ROI need to be?
The short answer is that it needs to be good, but no need to reach absolute perfection. Credibility on the other hand is critical to closing a deal. To be clear, we’re looking at ROI as part of a business case to justify a technology investment and help the customer make a “buy” decision. If…
Features vs benefits
Your solution may do a lot of things but ultimately you can deliver value to your customers in only three ways. You can reduce costs, increase productivity, or as a byproduct of those, increase profits. Those are the only outcomes that are possible. But wait you say… my product does a lot more than that….
How do you build a better ROI tool?
Closing a deal today is more likely to include an ROI business case. That’s good news but generating those ROI numbers can be a chore for a sales rep in the heat of a deal. Many organizations turn to custom ROI tools to help with the process, but getting a sales rep to use the…
Managing in a downturn
My daughter asked me about a class she was considering in graduate school on how to manage a growing company. “Pass” I said. It may be a little interesting, but any reasonable manager can manage a company through a growth stage. The real challenge is managing a company through a downturn. Racing in the rain….
IRR versus ROI
Let me net it out. Internal Rate of Return (IRR) is not a measure of the Return on Investment (ROI). If it were ROI, it would be called ROI. It’s not. IRR has nothing to do with measuring the return on a project but rather is related to the NPV calculation. Some folks see the…
Will AI shorten the work week?
No. Sorry, stop crying. Still no. I’ve seen a few postings by the oeconomica illiteratus arguing that the ability of artificial intelligence to increase worker productivity by 20 to 40% should translate into a 1 or 2-day shorter workweek (here and here). First, that’s their increase in productivity estimate, not ours. Second, France’s effort to…
Zoho Ulaa is a real privacy-forward browser
Starting from a simple CRM solution in 2005, Zoho continues to impress with expanded capabilities that have made it a comprehensive, cost-effective toolset for running your organization. Any small to upper mid-sized organization should have Zoho on their shortlist. Ulaa is just one more reason to be impressed with the Zoho team. Let’s face it,…
Three ROI mistakes that could derail your next deal
It’s no secret building an ROI business case can help drive a deal, and with an increasingly shaky economy, “no decision” is becoming the more common decision facing technology sales reps. This is why it’s more important than ever to lead with a strong value message. But what defines a strong vs weak value message? When…
Can AI replace HR?
AI and ChatGPT have dominated conversations in the HCM space lately and for good reason. These artificial intelligence tools have finally reached a level of usability that can generate significant productivity value for organizations, but many are raising questions about how these tools could be used and which (if any) jobs they will ultimately replace….
How two tech giants have sustained growth without going public
The past year has seen a slow down in the number of tech companies going public, and while there are a lot of reasons for a technology company to IPO, many technology companies have found success without jumping on the quarterly treadmill. By going public, you ostensibly gain money to expand operations, stroke the founder’s…