Facility management software can result in significant ROI for many organizations.
There are often immediate returns realized from eliminating multiple license fees associated with legacy software systems.
And within a few months, there’s a noticeable decrease in employee hours due to automating manual processes. But the most significant savings are often achieved from improving space utilization and reducing operating costs.
While the time it takes to see a return on investment in facility management software varies depending on the size and complexity of your organization, here are some general guidelines to keep in mind.
What are the financial benefits of facility management software?
One in five workplace leaders are considering an investment in some type of facility management software, such as an integrated workplace management system (IWMS), according to the latest Verdantix research.
To justify that investment, it’s imperative to demonstrate the financial benefits you expect to achieve. Failure to show near-term savings is a common deal-breaker that could derail your proposal. Here are six of the most common financial benefits to focus on:
- Eliminating multiple legacy systems
- Reducing employee hours
- Centralizing real estate processes
- Reducing building operating costs
- Optimizing real estate costs
- Improving employee productivity
Many legacy facility management systems are built on-premise, which makes them expensive to maintain and update. Moving to cloud-based facility management software eliminates the costs of IT hardware and staff. Reducing your workplace technology stack also eliminates fees associated with having multiple systems.
Automating manual processes, such as service requests or preventive maintenance tasks, can save your team significant time—and after all, time is money! Review your team’s work hours from the past 6-12 months and determine what tasks could be eliminated by implementing facility management software.
As organizations expand and acquire new assets, they often inherit different facility management software platforms. In a case study outlined in a 2018 Verdantix report, The Business Case for Integrated Workplace Management Systems, one global technology firm had more than 60 decentralized systems! Implementing a single, integrated platform allowed them to eliminate or restructure 100 redundant positions, allowing employees in those positions to focus on more strategic priorities.
Reactive maintenance is expensive. Facility management software with preventive maintenance capabilities allows organizations to avoid costly repairs. A comprehensive cost analysis showcasing how preventive maintenance software costs compare to the cost of replacing equipment—including downtime—can help your executive team understand what’s at stake.
The most significant savings from a facility management software investment often comes from optimizing real estate costs. With the average real estate costs per employee as high as $15,000, you could potentially save hundreds of thousands annually, depending on the size of your company. For instance, global IT firm Lenovo reduced its annual occupancy cost by $1 million by improving its space utilization, according to Verdantix. And the New York City government reduced its office space by 400,000 square feet, saving $15 million in annual rent and $4 million in energy costs.
While gains in employee productivity are more difficult to quantify, they are arguably where your organization will see the most significant return on investment. The best facility management software is designed for employees as well as facility managers, allowing them to access everything they need to be productive. It should empower employees to find any person or place, reserve conference rooms, request service and more.
How quickly do customers see ROI with iOFFICE?
Many of our customers see a return in their facility management software investment right away. In our most recent customer survey, 27% reported they saw immediate ROI. Another 25% said the software paid for itself within one to three months.
What’s also interesting to note in the survey is that the benefits often go beyond reducing costs. For instance:
- 64% of customers said our software creates a simplified, consumer-like experience for their workforce
- 53% said it increased employee productivity
- 44% said it allowed them to reduce their workplace technology stack
For Pokémon USA, implementing iOFFICE to manage space, moves, assets, mail, visitors and service requests has greatly improved operational efficiency. It has also allowed the company to plan ahead for its future space needs.
“Our company continues to grow on a rapid basis, and iOFFICE really helps me to perform better forecasting and helps me come up with restack plans,” said Russell Benson, senior facilities manager. “Keeping all these systems under one umbrella is very helpful.”
And for Acorda Therapeutics, implementing iOFFICE completely transformed their customer service process as well.
“We have increased productivity due to better tracking of tickets completed,” said Gerry Almazan, associate director of facilities. “This data is very useful when going over mid-year reviews and end-of-year reviews. It makes it so much easier to compensate our team for their efforts and production levels.”
Ready to see how much you can save with iOFFICE’s facility management software? Answer a few quick questions to uncover your ROI.