How to Accurately Measure the ROI of an Enterprise Mobile Application?

Are you reluctant to make your Enterprise go mobile because you are unsure of the ROI? Read on to find out how to correctly measure the ROI of your Enterprise Mobile Application…





Enterprises have begun to mobilize their work applications and those who haven’t started yet are seriously considering taking this step. Some organisations, however, are still reluctant to go mobile because they are unsure of the Return on Investment (ROI) for enterprise mobile apps.

Even though the decision-makers confirm their willingness to deploy enterprise mobile applications to support their line-of-business activities, they question “What will be the Return on Investment?” Therefore, how can we accurately measure the ROI for an Enterprise mobile application?

The general process of calculating the ROI of a product or service is fairly simple – divide the ‘net profit’ by ‘investment’. The ROI of an enterprise mobile application and the way that you measure it are not so straight-forward.

The fact is that the accuracy of an ROI calculation for mobile business applications lies in pre-determined values that can be measured. Based on multiple factors and extensive experience, I have formulated a step-by-step approach designed to accurately calculate the ROI of these applications.


STEP 1: Identify all the measurable KPIs

The primary step to effectively calculate the ROI of your mobile business application is to list down the measurable key performance indicators (KPIs) that resonate well with your roi8organisation’s goals and strategy.

Start by answering these basic questions – What are the prime goals of your mobile application? What are the business challenges that you expect to resolve with a mobile app? Are you aiming to setup an efficient system for your service engineers? Or looking to improve your employees’ productivity?

The goals that you are trying to achieve with the enterprise application should be directly reflected in your KPIs. Such KPIs differ based on your industry and department using the application.


Some common KPIs for Business Mobile Apps include:

  • Improved sales among the sales and marketing teams.
  • Less paperwork required to complete complex tasks.
  • Faster response times for the field technicians.
  • Increased first-time fix rates for technicians out on job sites.
  • Lower production costs for product based companies.



 STEP 2: Determine the Benefits

The benefits of an enterprise mobile application can be categorised into two different types: Quantitative and Qualitative benefits.roi7

  • Quantitative benefits are the benefits that can be precisely calculated in numbers. For example, percentage rise in cost savings, reduced time to complete a task etc.
  • Qualitative benefits are challenging to measure, due to their intangible nature. But the importance of these benefits cannot be ignored. Such benefits include employee effectiveness, increase in employees’ productivity, customer satisfaction etc.

Another characteristic under the qualitative benefits is business enablement. Enterprise mobile applications create a new approach to processes, which eventually leads to enablement of new business opportunities.



STEP 3: Calculate the Costs

Another important aspect to take under consideration is the cost of the mobile application.

The cost of an enterprise mobile application depends on various factors like

  • Whether you are developing the Application from scratch or you are purchasing a product and doing necessary customizations to it
  • Whether you are using an MADP (Mobile Application Development Platformroi5) or developing using the Native environments of the respective mobile operating systems.
  • Whether you are developing the application in-house or you are outsourcing it.

The cost that you incur for such an application can be classified into two categories:

  • Perpetual costs, which involve licensing, application development, testing, device procurement, etc. These one-time costs vary based on your employee count, the mobile devices you choose and the mobile platforms you use for development
  • Recurring costs, which include costs like maintenance, IT support, upgrades, etc. You would need to define the lifespan of the Mobile Application, say 10 years, and then calculate the recurring costs for that entire lifespan.



STEP 4: Weigh your KPI measurement against Costs
Once you have completed the above mentioned steps successfully, you can then begin to calculate the ROI of the mobile app. The suggested way to do this is to weigh your KPIs against your Costs.

Once you do roi1this, you will be able to see a real ROI number that you can weigh against the value of your mobile strategy. This will enable you to make strategic and analytical enhancements later down the road when updating or changing your enterprise app, as you will be able to analyse which features are creating wonders for your strategy, and which are not.

As we’ve seen, determining the R
OI of your enterprise mobile solution can be a little tricky and depends on numerous factors. But here’s the key: your definition of what ROI means depends on your answer to the question “Why mobile?” When you understand the value enterprise mobility can offer your business, you’ll have a better idea of which methods will define your ROI.

Dinoop Surendran

Manager, Enterprise Mobility at Avenir IT
Dinoop Surendran is an Enterprise Mobility expert, with vast experience in Presales and Solution Architecting of complex Mobile Solutions. As Manager-Enterprise Mobility, he heads the Mobility practice at Avenir, taking care of the Competence and the Presales activities.

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3 thoughts on “How to Accurately Measure the ROI of an Enterprise Mobile Application?

  1. Your article is actually educational. More than that, it is interesting, convincing and well-written. I would want to see even more of these types of wonderful writing. Bye

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