The next phase for the technological evolution will clearly be dominated with the rapid acceleration in the development of compelling mobile apps. This is due to the efficient mobilization of the business processes through mobile apps and the ROI it gives has the most reactive approaches. Many businesses are now focusing in app development and ROI strategies which would overall contribute to the competitiveness and profitability to their business. However developers are often pressurized and stressed about making difficult choices for an array of creative options, open questions and options to implement in the app working design, which processes to prioritize and which platforms to target on build the apps for. The situation gets further complicated when it comes to the ROI documentation which gives the basic foresight overview on how the app will generate revenue. With constant and exhausting changes to meet the unique challenges from the investor or user, many people question upon the assumptions made for ROI.
Investment firms must realize the full productivity and profitability gains from the full functional app and must adapt to the developmental strategies optimized by the developer to accommodate the creativity coding and programming in the app. With the over-exceeding number of smart phones and smart devices, the revenue streamlines for apps would yield significant levels of return on investment which would further lead to a flood of development of apps.
Furthermore, the forecasts and timelines presented for the revenue streamlines is more tactical rather than strategic which is often viewed as an impediment. While making the ROI documentation to calculate profit and loss statements, revenue streamlines and forecasts, it is imperative for investors to understand that developers make use of scarce resources and respond to the ever-increasing demands for improvements for issues such as:
- New platform technology integration
- Creative changes,
- Functionality issues regarding the UI (User-Interface) and UX (User Experience)
Such competing demands usually need more scrutiny and investments. Without understanding the complexity of the app project, investment funding and ROI timelines, many investments fail to live up to the expectations of the revenue generation which the app would make.
What Key Decisions should the ROI Documentation Analysis Contain?
While making the ROI documentation for the app with foresight overview, streamlines, assumptions on ROI and forecasts, it should also contain the following:
- The strategic objectives of the business achieved through the app
- The importance of the investment for the overall architectural design of the app
- The type of financial analysis conducted (data analysis and statistical methods) best suited to be able to calculate ROI on investments
While giving a brief overview on such pointers, these strategic objectives for the ROI documentation will effectively be used to determine the potential of the app being developed. Thus the ROI documentation would reduce the risk factors associated with the investment, gain confidence from the investor based upon the ROI assumptions and the fulfillment of business objectives and the developmental issues faced and overcome to be worth the investment of not?
All such objectives can be easily answered in the ROI documentation and would help to identify the useful resources need to make a substantial investment. While focusing on the fulfillment of strategic objectives for the business or for the investor; ROI benefits can easily be expected from the investment made for the app.
However, while making ROI, it is also important to include all the useful financial information regarding
- The technological app infrastructure (direct costs to incur for the development)
- Business processes (training designers and coders) for the proposed platform integration
- Organizational Environment (Other costs and returns linked with the development of the app)
- External Relationships (External resources needed to support the app project)
The measurement of ROI will be expanded beyond cost savings and will be influenced from the performance of the app project goals in the proposed timeline.
Don’t forget to check out our blog post next week on ‘marketing strategy’ for app development.