How do you gauge the success of Enterprise Software?

1 Define success criteria

Before you can evaluate the performance of enterprise software, you need to define what success means for your organization. This involves setting clear and realistic objectives, indicators, and targets for the software implementation and usage. For example, you may want to improve customer satisfaction, reduce operational costs, increase sales revenue, or enhance collaboration. You should also identify the key stakeholders and users of the software and align their needs and expectations with the overall business strategy.

2 Collect and analyze data

Once you have established your success criteria, you need to collect and analyze data to measure the outcomes and impacts of enterprise software. You can use various sources and methods of data collection, such as surveys, interviews, feedback forms, usage reports, analytics tools, or dashboards. You should also compare the data before and after the software deployment to assess the changes and improvements. Moreover, you should monitor and track the data over time to identify trends, patterns, and anomalies.

3 Calculate ROI

One of the most common and important metrics to gauge the success of enterprise software is the return on investment (ROI). This is the ratio of the net benefits to the total costs of the software. To calculate the ROI, you need to quantify both the benefits and the costs of the software. The benefits may include increased revenue, reduced expenses, saved time, or improved quality. The costs may include acquisition, installation, maintenance, training, or support. The ROI formula is:

ROI = (Net Benefits / Total Costs) x 100%

4 Evaluate user adoption

Another key metric to gauge the success of enterprise software is the user adoption rate. This is the percentage of users who are actively and effectively using the software for their tasks and goals. User adoption reflects the usability, functionality, and value of the software. To evaluate user adoption, you need to measure and analyze various indicators, such as login frequency, feature usage, completion rate, error rate, or satisfaction rate. You should also provide training, support, and incentives to encourage and facilitate user adoption.

5 Compare with benchmarks

A useful way to gauge the success of enterprise software is to compare it with relevant benchmarks and standards. Benchmarks are reference points or norms that indicate the expected or desired performance of the software. They can be derived from industry best practices, competitors, or historical data. By comparing your software performance with benchmarks, you can identify the gaps, strengths, and weaknesses of your software. You can also set realistic and achievable goals for improvement.