The market for the integration platform as a service (iPaaS) is evolving and changing every aspect of businesses. While the digital age enterprise demands for effective ways to integrate modern solutions, they’re still skeptical about shifting to the Next Generation iPaaS. The market now speaks for itself. Yet, users are still confused, unaware of how and where to start, or what might be their Return on Investment (ROI).
ROI is used to determine the probability of gaining a return made from an investment. It helps measure the gain or loss from the investment made relative to its cost.
Well, here’s how you can use the key metrics to evaluate the ROI of an iPaaS platform.
1. Determine the total cost
When you’re considering to set up an integration solution, you need to think about the total setup costs and how you can best reduce it. Setup cost is not the only thing you will be paying here, there’s recruiting and training, too.
To make things easy, we’ll divide these into three categories –
I. Hiring developers – try to calculate the overall number of developers you will need to complete the project, followed by calculating the average salary compensation for each of them.
i.e. no. of developers * average developer salary = total talent cost
Once you multiply both the numbers you get the total cost of how much you would be spending on each developer.
But if you further intend to made additional custom-coding integrations and to maintain the codes, you will need another developer team for backup.
II. Calculating the hours of productivity – you need to start analyzing the time a developer spends when the integration process is going on. Once you’ve figured this, you must convert the time into the days saved along with the overall annual savings. For instance, if you manage to save an hour doing the same repetitive task, this could be the timeline where you need to dedicate yourself and do something more productive.
III. Cost of the server/ overhead – you might need to fix the costs of the other integration tools if you’ve used them. Besides this, there are chances where you might need to bear the costs of other professional services that are keeping your integration process fully operational. However, the costing may change as per the business priority, change of plan, or when APIs keep evolving.
2. The key is to determine and interpret the right perspective of ROI
On finalizing the total costs, determining the benefits of the integration platform for an Enterprise is crucial as this will help on paving your company’s journey to future success in moving towards an integration initiative.
With the help of these three perspectives, you can determine why iPaaS solution is critical to organizations –
Perspective 1: Operational ROI
This applies when you use custom-code integrations.
Operational ROI helps evaluate cost-cutting and maintenance of integrations. This could either be calculated in cents or dollars i.e. total costs needed to keep the integration services up and running. When this gets evaluated, a comparison can be made with the cost of the iPaaS platform.
Perspective 2: Aspirational ROI
An ROI that monitors the future condition of the organization which involves efficiency, productivity, and the total costs. This also gives information about the type of digital transformation and innovation goals developed by the organization.
Perspective 3: Case-specific ROI
Case-specific ROI happens when an organization has already started the execution of the iPaaS solution. If this event occurs, you need to find out the estimated timeframe, whether the solution provided is manual or not. Adding up the exact figures using the formula gives you the costs and savings the integration solution must offer.
A move toward an iPaaS platform enables employees with the agility to perform valuable tasks. With multiple advantages the platform offers, creating a holistic view based on a shared vision is crucial. However, this could either be done in two ways –
1. Department-specific: creating smooth customer interaction through integrations
2. Organization-wide: favor integration to boost the overall productivity and scalability. Both tactical and strategic approach is crucial to achieving long-term investment. More importantly, if the organization seeks to grow as we as stay in sync with existing stakeholders.
3. Going beyond traditional integration solution
Besides integration, businesses are in a dire need of replatforming applications to cloud to leverage AI, automation, and bots to tackle the new age threats posed by Covid-19 and simultaneously achieve revenues and business goals. Whatever tool the organization uses should be able to move data in real-time, must be cloud compatible and should execute tasks as well without delaying the timelines.
Earlier, the timeline to achieve integration project used to be 12-24 weeks, however, this has reduced to <2 weeks. One of the major reasons why businesses are seeking IT to take initiative and be the changemakers.
You need to ensure to find the right solutions that will not only meet your automation needs but iPaaS needs as well. Doing so will help boost your ROI.
Before analyzing how to evaluate iPaaS solutions, you need to ask yourself these questions, “how will this tool serve my current and future organizational needs?
What’s more in the package?
eZintegrations™ platform by Bizdata, Inc. is an easy to use self-service cloud integration platform as a service that can be accessed on any web browser to connect any system, application, conversation and database in your enterprise. It requires no certification, no technical qualification and no long hours of training to use the platform. It has ample product support from the team of experts available 24/7 * 365 on phone, chat and email.
The video tutorials serve as guide to the community of users to get started with the platform. eZintegrations™ has been built keeping in mind the business user to empower them easily develop and maintain integrations. It minimises the need for programming knowledge to do integrations. Furthermore, it helps you do real-time integrations.
Traditionally, such unique perks could only be availed at the cost of hiring developers and domain consultants that adds to the integration overheads.
Bizdata team and our partners have in-depth knowledge of how things work along with best practices in building integrations. They are extremely capable of guiding you from the initial phase of ideation, testing, and implementation of integrations. eZintegrations™ platform provides advanced integrations ideal for all business divisions and needs in marketing, finance, product quality, demand, supply, IT, HR, sales and service without needing to reinvent the wheel.
This intelligent iPaaS platform enables autonomous integrations that can enable automation at low cost, and it is a smart choice for organizations. However, make sure you have a strategic plan and right perspective identified before selling your pitch to your colleagues and business leaders. You need to do your research well and dig insights about the current organization’s weakness, past solutions they’ve implemented, why it didn’t work, and what can you offer to improve in the upcoming days.