How to measure the ROI of an internal platform in 90 days
Unlock the true value of your internal platforms. Learn how to measure ROI in 90 days with actionable strategies and KPIs.

How to Measure the ROI of an Internal Platform in 90 Days
In today’s fast-paced business environment, internal platforms are no longer a luxury; they are a necessity. From streamlining operations to fostering collaboration and driving innovation, well-built internal tools can be a significant competitive advantage. However, the investment in developing and maintaining these platforms can be substantial. This raises a critical question for product leaders, CTOs, and technology teams: How do we measure the ROI of an internal platform?
Many organizations struggle to quantify the tangible benefits of their internal technology investments. This often leads to underfunded projects, missed opportunities, and a general lack of strategic alignment. The good news is that with a structured approach, you can effectively measure the Return on Investment (ROI) of your internal platforms, even within a tight timeframe like 90 days. This article will guide you through a data-driven methodology to prove the value of your internal platforms and secure future investment.
1. Defining Your Internal Platform’s Strategic Objectives
Before you can measure anything, you need to understand why the platform exists and what it’s intended to achieve. A clear definition of strategic objectives is the bedrock of any ROI calculation. Without this, you’re essentially measuring progress against a moving target.
Aligning with Business Goals
Your internal platform should not exist in a vacuum. It must directly support overarching business objectives. Consider:
- Efficiency Gains: Is the platform designed to reduce manual tasks, automate workflows, or speed up processes?
- Cost Reduction: Can it lower operational expenses, reduce errors, or minimize the need for external tools?
- Revenue Enhancement: Does it enable faster product development, improve sales team productivity, or unlock new market opportunities?
- Employee Productivity & Satisfaction: Does it make employees’ jobs easier, reduce frustration, and improve their ability to perform?
- Risk Mitigation: Does it enhance data security, ensure compliance, or improve disaster recovery capabilities?
Establishing Measurable KPIs
Once objectives are defined, translate them into specific, measurable, achievable, relevant, and time-bound (SMART) Key Performance Indicators (KPIs). These are the metrics you will track to demonstrate ROI.
- For Efficiency:
- Time Saved per Task: Average time reduction for a specific process.
- Throughput Increase: Number of tasks completed per unit of time.
- Reduced Error Rate: Percentage decrease in errors in a given process.
- For Cost Reduction:
- Reduced Software Spend: Savings from decommissioning redundant external tools.
- Lower Operational Costs: Decrease in resources (e.g., labor, materials) required for a process.
- Reduced Rework Costs: Savings from fewer mistakes requiring correction.
- For Productivity:
- Task Completion Rate: Percentage of tasks completed within a defined timeframe.
- User Adoption Rate: Percentage of target users actively using the platform.
- Employee Satisfaction Scores: Measured through surveys related to tool usability and effectiveness.
2. Quantifying the Investment: Total Cost of Ownership (TCO)
Measuring ROI requires a clear understanding of the total investment made in the internal platform. This goes beyond the initial development cost and includes ongoing expenses. A comprehensive Total Cost of Ownership (TCO) calculation provides a realistic picture of your investment.
Development and Implementation Costs
This is often the most visible part of the investment. It includes:
- Internal Development Team Salaries: Cost of engineers, designers, product managers, QA testers, etc., dedicated to the platform.
- External Development/Consulting Fees: If third-party resources were used.
- Software Licenses and Tools: Costs for development environments, project management software, etc.
- Infrastructure Costs: Servers, cloud hosting, databases, networking, etc.
- Training and Onboarding: Time and resources spent training users and support staff.
Ongoing Operational and Maintenance Costs
These are the recurring expenses that keep the platform running and relevant:
- Maintenance and Bug Fixing: Salaries for engineers addressing issues and performing routine updates.
- Infrastructure Costs (Ongoing): Cloud hosting fees, server maintenance, etc.
- Support Staff Salaries: Cost of helpdesk or support teams assisting users.
- Feature Enhancements and Iterations: Costs associated with adding new functionalities or improving existing ones based on user feedback.
- Security and Compliance Updates: Ensuring the platform remains secure and compliant with evolving regulations.
Example: A company develops an internal CRM for its sales team. The initial development cost was $150,000. Over the first year, ongoing costs for cloud hosting, maintenance, and a dedicated support engineer amount to $50,000. The TCO for the first year is $200,000.
3. Calculating the Tangible Benefits: Quantifying Value Creation
This is where the real work of demonstrating ROI happens. You need to translate the improvements driven by your internal platform into monetary terms.
Direct Cost Savings
These are the most straightforward benefits to quantify.
- Reduced External Software Spend: If your internal platform replaces a paid SaaS tool, calculate the annual subscription cost saved.
- Example: Replacing a $5,000/month project management tool with an internally built solution saves $60,000 annually.
- Reduced Labor Costs: If automation or efficiency gains mean fewer people are needed for a task, or existing staff can handle more, quantify the salary savings.
- Example: An automated invoice processing system reduces the need for 0.5 FTE in the finance department, saving $30,000 annually (assuming an average salary of $60,000).
- Reduced Error Costs: Quantify the cost of fixing mistakes that your platform prevents. This could include wasted materials, customer service credits, or rework hours.
- Example: An internal data validation tool reduces data entry errors by 90%, saving an estimated $15,000 annually in correction time and associated costs.
Productivity Gains and Revenue Impact
These benefits are often less direct but can be even more significant.
- Increased Employee Productivity:
- Time Saved x Hourly Rate: If your platform saves an employee 1 hour per week, and their loaded hourly rate is $50, that’s a saving of $2,600 per employee per year (52 weeks * $50).
- Increased Output: If a sales team can now handle 10% more leads due to a better internal tool, and each lead converts at a certain rate, you can project increased revenue.
- Faster Time-to-Market: For product development platforms, a shorter development cycle can lead to earlier revenue generation. Quantify the potential revenue gained by launching a product sooner.
- Improved Decision-Making: If your platform provides better data insights, leading to more profitable decisions, try to quantify the impact of those decisions.
Formula for Tangible Benefits: Tangible Benefits = (Direct Cost Savings) + (Quantified Productivity Gains) + (Quantified Revenue Impact)
4. The 90-Day ROI Measurement Strategy: A Phased Approach
Measuring ROI within 90 days requires a focused, iterative approach. It’s about proving initial value and setting the stage for ongoing measurement.
Phase 1: Baseline Establishment (Days 1-15)
- Confirm Objectives & KPIs: Revisit and finalize the strategic objectives and the specific KPIs you will track. Ensure they are agreed upon by stakeholders.
- Gather Baseline Data: Before the platform is fully deployed or as soon as it’s live, collect data on your chosen KPIs without the platform’s influence. This is your starting point.
- Example: If measuring time saved on report generation, record the average time it takes to create reports manually.
- Document TCO: Compile all known development and initial implementation costs.
Phase 2: Implementation & Initial Tracking (Days 16-60)
- Deploy & Onboard: Ensure the platform is rolled out to the target user group and that onboarding is effective.
- Monitor Usage & Adoption: Track how many users are actively using the platform and for what features. Low adoption can significantly impact ROI.
- Collect Post-Implementation Data: Begin collecting data on your KPIs with the platform in use.
- Example: Start timing report generation using the new platform.
- Identify Early Wins & Bottlenecks: Look for immediate positive impacts and any areas where users are struggling or the platform isn’t performing as expected.
Phase 3: Analysis & Reporting (Days 61-90)
- Analyze KPI Trends: Compare the post-implementation data with your baseline data. Calculate the percentage improvement or reduction for each KPI.
- Quantify Benefits: Translate the KPI improvements into monetary terms using the methods described in Section 3.
- Calculate Initial ROI: Use the ROI formula:
- ROI = [(Total Benefits - Total Investment) / Total Investment] * 100%
- For a 90-day measurement, your “Total Investment” will primarily be the development and initial rollout costs, and your “Total Benefits” will be the sum of quantified savings and gains realized within that period.
- Prepare Your Report: Present your findings clearly, highlighting the achieved ROI, key benefits, user feedback, and any lessons learned.
Example 90-Day Scenario:
- Investment: $50,000 (development + initial rollout)
- KPI: Time saved on customer support ticket resolution.
- Baseline: Average resolution time = 30 minutes.
- Post-Platform: Average resolution time = 20 minutes (200 support tickets resolved in 90 days).
- Time Saved: 10 minutes per ticket * 200 tickets = 2000 minutes = 33.3 hours.
- Loaded Hourly Rate of Support Staff: $40/hour.
- Quantified Benefit: 33.3 hours * $40/hour = $1,332.
- ROI (90 Days): [($1,332 - $50,000) / $50,000] * 100% = -97.34%.
Initial analysis might seem negative, but this highlights the importance of looking at the annualized potential. If this saving continues for a year, the benefit is $5,328. The ROI over a year would be significantly different. The 90-day report is about demonstrating progress and predictive value. The goal is to show that the platform is on track to deliver substantial ROI over its lifecycle.
5. Beyond 90 Days: Continuous ROI Management
The 90-day mark is a crucial milestone, but it’s not the end. Effective ROI management is an ongoing process.
Establishing a Continuous Measurement Framework
- Regular Reporting Cadence: Schedule quarterly or bi-annual ROI reviews to track progress and adapt strategies.
- Iterative KPI Refinement: As the platform evolves and business needs change, revisit and update your KPIs to ensure they remain relevant.
- User Feedback Loops: Implement mechanisms for ongoing user feedback to identify areas for improvement and new opportunities for value creation.
- Benchmarking: Compare your platform’s performance against industry benchmarks or similar internal tools in other organizations.
The Intangible Benefits: Don’t Forget Them
While the focus is on quantifiable ROI, acknowledge and document intangible benefits. These can be harder to put a dollar figure on but are vital for strategic decision-making.
- Improved Employee Morale and Engagement: Happier employees are often more productive and less likely to leave.
- Enhanced Collaboration and Knowledge Sharing: Platforms that break down silos foster a more connected and innovative workforce.
- Increased Agility and Responsiveness: The ability to adapt quickly to market changes.
- Stronger Company Culture: A well-designed internal tool can reflect and reinforce positive organizational values.
Checklist for 90-Day ROI Measurement
To help you navigate this process, here’s a concise checklist:
- Define clear, SMART strategic objectives for the internal platform.
- Identify and prioritize key KPIs that directly align with objectives.
- Document all development and implementation costs (initial TCO).
- Establish a baseline for each KPI before full platform impact.
- Deploy the platform and ensure effective user onboarding.
- Track platform usage and user adoption rates.
- Collect post-implementation data for all defined KPIs.
- Quantify direct cost savings (e.g., software, labor).
- Quantify productivity gains and potential revenue impact.
- Calculate the 90-day ROI using the formula.
- Prepare a clear, data-driven report summarizing findings.
- Discuss results with stakeholders and plan for ongoing measurement.
Conclusion: Proving Value, Driving Future Investment
Measuring the ROI of an internal platform in 90 days is an achievable goal when approached strategically and systematically. By clearly defining objectives, meticulously tracking costs and benefits, and employing a phased measurement approach, you can provide concrete evidence of your platform’s value. This data is not just for reporting; it’s a powerful tool for securing future investment, justifying ongoing development, and ensuring your internal technology truly serves as a catalyst for business growth.
At Alken, we specialize in helping B2B software companies and their technology teams build and optimize internal platforms that deliver measurable business outcomes. We understand the nuances of quantifying ROI and can assist you in developing robust measurement frameworks, identifying key metrics, and translating your platform’s impact into tangible business value.
Ready to unlock the true ROI of your internal platforms?
Contact us today at [email protected] to learn how Alken can help you measure, optimize, and maximize the value of your internal technology investments.
Downloadable Metrics Template:
[Link to your downloadable template here - e.g., a Google Sheet or Excel file]
(Note: In a real-world scenario, this would be a hyperlink to a downloadable file containing a template for tracking TCO, KPIs, benefits, and ROI calculations.)