Software ROI: How to Make Sure Your Software Delivers Value

Ahmad El Chayati
December 19, 2022

Want to Know if You’re Getting the Best Software ROI?

Good call. Too often, organizations end up with software they don’t use.

Here’s what you need to know about maximizing the ROI of your software and how to make sure it delivers value.

Why Do Organizations Waste Money on Software They Don’t Use?

I have witnessed many organizations buying and renewing their licensing agreements from international vendors without ever using them.

This always led me to question why they would continue to do so. What are they winning on the deal and why are they wasting their organization’s money?

That made me think. 

Why do we wait so anxiously for Black Friday? Or major discount deals?

Often, we end up spending more money than we originally planned, but we justify it with the excuse of a good bargain.

But is what we’re buying worth it? 

It’s the same when organizations buy software they don’t use. Let me explain.

Why Companies Don’t Get the Best Software ROI

A friend of mine works in a well-known corporation, responsible for the organization’s transformation. He is a key decision-maker who authorizes contracts with large suppliers to aid them in their transformation journey.

During the few times I had met with him, he would always boast about how he and his team were able to get discounts from their suppliers.

During one of these meetings, he seemed lost in thought. Out of the blue, he asked me, “Who makes the purchases in your family?”

I wondered what had prompted him to ask this question, but still, I answered, “My wife and I. Why?”

He told me:

“My wife and I are juggling demanding schedules. Due to the limited time we have, and our clashing schedules, we have assigned this task to the house manager.

My concern is that she purchases many items that she thinks we need when, in reality, we have no use for them.

Although she stays within the budget we have set, the items are unnecessary and often, frivolous.

For example, I don’t drink coffee, but I have a 2000-dollar coffee machine at home.

Although she thinks she is doing the best for me by providing me with the best coffee at home, I believe the two thousand dollars could have been put to better use.

What bothers me most about this situation is not the overpriced coffee machine, but rather she answers when I asked her about it.

She told me she had saved me one thousand dollars. I asked her, ‘how?’

She carefully explained to me that the original price of this coffee machine was three thousand dollars, but she managed to bargain with the salesman and convince him to sell it to her for only two thousand dollars.

Since he was clearly upset about this unnecessary spending, I consoled him by telling him, “You’re rich. You will earn enough to cover this unneeded expense”.

My comment drew him out of his deep thought. He explained:

“I am not concerned about money.”

What disturbs me is that I realize I’ve wasted our organization’s money in the past.

I have always focused on getting the highest discount possible to save money. I thought the better the discount, the better the deal for the organization. I didn’t look at the bigger picture.

I need to evaluate what I am paying for versus what I am receiving for that price and how necessary it is. After a thorough discussion and analysis, I realized that even with the concessions I was given, what we are purchasing is not being properly utilized. The items we have purchased are not adequate to complete the tasks we have in our organization.

It seems that I do not have a clear understanding of the value in regard to money. We cannot reverse time, but I hope I can use this lesson going forward and avoid wasting our organization’s money.

The best way to accomplish this would be through understanding the value and quality we are getting for the price we are paying; in short, “get our money’s worth.”

How Can You Make Sure You Get an ROI on Your Software?

I agree with my friend.

The discount doesn’t matter.

Yes, you might save money. But in the end, you’re losing more if you buy a product or service that you never use.

When you look at your software ROI, there’s ONE thing you need to look at: The value it brings.


Is it performing a job at your company?

And is that job contributing to your company’s success?

With StemeXe, we ensure that our software is executing a specific job for our customers. We charge our customers based on the value they get for our software executing that job. This means:

A guaranteed software ROI.

You never waste money on software that doesn’t bring in more than it takes.

How to Start Buying Software That Serves You

Now you know how software ROI works. You need to GET more than you GIVE.

Software ROI
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