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ROI Calculator Methodology

Understanding the calculations behind our Archibus savings estimate.

Here we detail the principles, formulas, and assumptions our interactive Return on Investment (ROI) calculator uses to provide you with an estimate of potential savings by implementing the Archibus solution.

1. Calculator Purpose

This calculator is designed as a tool to help potential clients (medium/large companies, hotels, organizations) estimate theapproximate annual financial savings they could achieve by transitioning from their current methods of managing real estate, space, and maintenance to an integrated system like Archibus.

The goal is not to provide an absolutely precise calculation (as this depends on many specific factors), but rather to offer arealistic potential estimate based on the data entered by the client and onaverage improvement factors observed among existing Archibus users.

2. Basic Operating Principle

The calculator works by identifyinghidden costs and inefficiencies in the client's current mode of operation (without Archibus) and applying a percentage improvement (savings) that Archibus typically brings to these areas.

Formula (Conceptual):

Estimated Annual Savings = Σ ( Estimated Cost of Inefficiency * Improvement Factor with Archibus (%) )

Where “Σ” denotes the sum of savings from all included categories (Space, Maintenance, Administration, Optional).

3. Calculation Categories and Formulas

The calculator collects data through several key sections. The user can select (toggle on/off) which sections to include in the calculation.

A) Space Management & Utilization

Savings Goal: Reduce costs associated with unused or sub-optimally utilized space. Archibus helps identify such spaces and make decisions regarding their repurposing, lease termination, or better allocation.

Required Client Inputs:

  • Total Managed Area (m²): The total area they manage.
  • Average Annual Cost per m² (€/m²): The cost of ownership/lease and upkeep per square meter.
  • Estimated Percentage of Unused Space (%): How much space is not fully functional.

Formula Logic:

  1. Calculate Total Annual Cost of Unused Space:
    (Total Area * % Unused Space / 100) * Average Cost per m²
  2. Calculate Estimated Savings:
    (Total Annual Cost of Unused Space) * Utilization Improvement Factor (%)

Utilization Improvement Factor (Our assumption, e.g., 15%):Represents the percentage of the cost of unused space that can realistically be saved or repurposed using Archibus tools.

B) Maintenance Management

Savings Goal: Reduce the costs of reactive (emergency) maintenance, which is more expensive than planned maintenance, and optimize the costs of external contractors. Archibus enables better planning, work order tracking, and cost analysis.

Required Client Inputs:

  • Number of Maintenance Staff: Internal team.
  • Average Annual Gross Salary of Maintenance Staff (€): Cost of the internal team.
  • Estimated Percentage of Time on Reactive Maintenance (%): How much time is spent on “firefighting”.
  • Annual Cost of External Maintenance Services (€): Amount paid to third-party companies.

Formula Logic: Consists of two parts:

1. Savings on Internal Maintenance:

  • Calculate Cost of Time Spent on Reactive Maintenance:
    (Number of Staff * Average Salary) * (% Time on Reactive / 100)
  • Calculate Estimated Savings:
    (Cost of Time Spent on Reactive Maintenance) * Reactive Maintenance Reduction Factor (%)

Reactive Maintenance Reduction Factor (Our assumption, e.g., 25%):The percentage reduction in inefficient reactive work achieved by shifting to planned maintenance.

2. Savings on External Maintenance:

  • Calculate Estimated Savings:
    (Annual Cost of External Services) * External Cost Optimization Factor (%)

External Cost Optimization Factor (Our assumption, e.g., 10%):The percentage of savings achievable through better control and analysis of external services.

3. Total Savings (Maintenance) = Savings on Internal + Savings on External.

C) Administrative Efficiency

Savings Goal: Reduce the time (and thus cost) that administrative staff spend on manual, repetitive tasks like data entry, information retrieval, and report generation. Archibus automates many of these processes.

Required Client Inputs:

  • Number of Staff in Real Estate/FM Administration: Personnel performing these tasks.
  • Average Annual Gross Salary of Admin Staff (€): Cost of these staff members.
  • Estimated Percentage of Time on Manual Work (%): How much time is spent on non-automated tasks.

Formula Logic:

  1. Calculate Cost of Time Spent on Manual Work:
    (Number of Admin Staff * Average Salary) * (% Time on Manual Work / 100)
  2. Calculate Estimated Savings:
    (Cost of Time Spent on Manual Work) * Manual Work Reduction Factor (%)

Manual Work Reduction Factor (Our assumption, e.g., 30%):The percentage reduction in manual work achieved through automation and data centralization in Archibus.

D) Optional: Energy & Assets

Savings Goal: Identify opportunities to reduce energy consumption through better monitoring and analysis (if supported by Archibus modules) and reduce costs associated with loss or inefficient management of assets (furniture, equipment).

Required Client Inputs:

  • Estimated Annual Energy Cost (€).
  • Estimated Value of Assets (€).

Formula Logic:

1. Savings on Energy:

  • Calculate Estimated Savings:
    (Annual Energy Cost) * Energy Savings Factor (%)

Energy Savings Factor (Our assumption, e.g., 8%): The percentage reduction in energy costs possible through better tracking.

2. Savings on Assets:

  • Calculate Estimated Savings:
    (Estimated Asset Value) * Asset Loss Reduction Factor (%)

Asset Loss Reduction Factor (Our assumption, e.g., 3%):The percentage of asset value whose cost (loss, replacement) can be avoided with better tracking.

3. Total Savings (Optional) = Savings on Energy + Savings on Assets.

4. Total Estimated Annual Savings

The result displayed to the user is thesum of the estimated savings from all sections included by the user(Space + Maintenance +Admin + Optional).

5. Key Assumptions and Limitations

  • Estimate, Not Guarantee: We emphasize that the results are an estimate. Actual savings depend on the accuracy of the data entered, the specifics of the client's operations, and the quality of the Archibus implementation.
  • Improvement Factors: The percentages used (e.g., 15%, 25%, 30%) areour expert assumptions based on experience and industry averages. They are key to the calculation and represent the average potential that Archibus brings.
  • Focus on Savings: The calculator primarily shows potential annual savings in operational costs. It does not include the initial investment cost for Archibus (licenses, implementation), although this information can be used later for a full ROI (Return on Investment) calculation.

Conclusion

The ROI calculator is a valuable tool for quantifying the potential benefits of Archibus. By using client data about their current operations and applying realistic improvement factors, it provides a tangible estimate of annual savings, helping clients more easily assess the financial viability of investing in a modern IWMS solution.