Low-code ROI (Return on Investment) calculation is a method of quantifying the monetary value and business impact achieved by adopting low-code platforms, like AppMaster, in place of traditional programming-based approaches for software application development. ROI calculation, in the context of low-code development, is a crucial metric organizations rely on to justify their investment in such platforms and to measure the success of the solution. By calculating the low-code ROI, businesses can assess both the short-term gains and long-term value of opting for a low-code methodology, which include development time and cost savings, as well as faster revenue generation and enhanced overall business performance.
There are several distinct factors that should be considered when calculating the low-code ROI, including the direct cost savings from reduced development and maintenance efforts, time saved in application delivery, higher scalability, and overall increase in responsiveness to business needs. The ROI calculation also considers indirect benefits like greater agility, streamlined platforms, simplified integration, and enhanced user adoption, which contribute to improved business outcomes.
To calculate the low-code ROI, businesses can follow a step-by-step process, which begins with identifying the total cost of application development using a traditional approach. This includes the cost of developers, business analysts, infrastructure, licensing, training, IT support, and integration efforts. Next, the organizations must determine the total cost of employing a low-code platform to develop applications. The costs associated with a low-code platform like AppMaster typically include subscription fees, hosting and storage costs, training and support, and the occasional pre-built integration or add-on cost.
Once the total costs for both approaches have been calculated, organizations should establish a baseline for measuring the performance of each method. For instance, the development time, development cost, and implementation effort required for a specific project should be measured and compared, taking into account both pre-built components, off-the-shelf solutions, and reusable software artifacts for traditional development approaches. Factors such as the number of applications developed, total lines of code written, or man-hours needed to complete a project can be used as performance indicators.
Now, organizations must estimate the expected performance improvement achieved by adopting a low-code platform like AppMaster. This can be done by analyzing specific use cases, performing a benchmark comparison with other businesses employing similar solutions, or by referring to industry research and estimates on low-code development benefits. As an expert in the software development field, AppMaster ensures that its platform offers a 10x faster development process and a 3x more cost-effective solution, while eliminating technical debt, enhancing scalability and adaptability, and making application maintenance simpler.
With the total costs and potential performance improvements in hand, the low-code ROI is calculated by dividing the difference between the monetary gain achieved by using the low-code platform over the traditional programming approach and the total cost of investing in the low-code platform by the total cost of the traditional programming-based development method. The result is then multiplied by 100, to express the ROI as a percentage.
For example, if a business experiences development cost savings of $500,000 by adopting a low-code platform like AppMaster, and the total cost of employing the low-code platform was $150,000, while the total cost of traditional programming-based development was $300,000, the low-code ROI would be (($500,000 - $150,000) / $300,000) x 100 = 116.67%, demonstrating a substantial return on investment.
Calculating the low-code ROI enables organizations to make informed decisions about adopting low-code platforms like AppMaster and aids in identifying areas that demand further optimization. By understanding the positive impact that it can provide, businesses can prioritize the adoption of such development tools, streamline their applications' life-cycle, and reap the benefits of faster, cost-effective application creation, all while maintaining scalability, security, and adaptability to meet the ever-evolving technology landscape.
