Guest post by Dean Wiech, managing director, Tools4ever.
No matter the industry, each time a purchase is made, business leaders always want to know what they are getting in return for their financial investment. Questions frequently asked include: “How is this going to help me?” and “What is my return on investment?” Another phrase, often uttered by “Mr. Wonderful” Kevin O’Leary from the popular show Shark Tank is, “What am I getting for my investment?”
By examining the answers to these questions, business managers and organizational leaders must ensure that their budget is being adhered to and that purchases by the organization are considered, or proven, not to be a “waste” of money.” Often, return on investment (ROI) is a combination of both “hard” and “soft” costs and savings, which can often be difficult to determine. The “hard” cost is easy to define: What am I spending now versus what will I be spending on a different product, solution or system, or by doing nothing? Alternately, how is this solution going to allow me to save money in the long run? In this scenario – “hard” costs and savings — there is a definitive dollar figure that is able to be applied to implementing a solution.
“Soft” savings are a bit more of a complex issue; they are more difficult to determine and to document. For example, time and labor saved, or stress saved by employees completing a task that takes 10 minutes versus 35 minutes are soft savings. Soft savings also might be seen in improvements in customer service or in the customer experience. It is difficult to put a dollar amount on these scenarios and improvements, but they do impact a business, its success and its financial performance.
Time is money, of course, but in the case of healthcare perhaps it’s more fitting to say that “time is life.” This savings equates to valuable potential life-saving time, as we well know, and, in turn, improves patient care. As healthcare organizations seek ways to allow clinicians the ability to focus more on patients rather than on information technology, there are some solutions available — many that that are often overlooked that allow them to reach their goals. Some of these technology solutions provide a direct correlation between a physician’s ability to enter an information system, retrieve or enter information and get back to focusing on patient care. Essentially, with these types of solutions, like access and identity management, physicians can get back to work more quickly and their interaction with the technology is reduced.