Return On Investment (ROI) IBS
worksheet
1) Calculating the value of lost data
3) Calculating company image loss
How often is the system backed up ?
1 time a week
2 times a week
3+ times a week
1 time a month
less than 1 time a month
2 times a month
Number of alternate suppliers of same
service
1
2
3
4
5+
or product ?
How many users depend on the system
either directly (word-processors)
Estimated failures per year ?
or indirectly (CEO who needs reports)
?
Estimated % of customers who will
select
What percent of data is NOT
recoverable
another supplier if unable to get
service /
after system crash ?
product because of system problems ?
Company size (gross revenue) ?
Total image loss
Number of employees ?
Company's gross sales * (% of turn-aways)
Employee contribution
Company's gross revenue / number of
employees
Total costs per failure
Employee hourly contribution
Total =
Employee contribution / total business
hours in year
(Cost of data loss) + (Cost of
personal down-
time) + (Cost of image)
Cost's of day's worth of data
(Employee hourly contribution * # of
users on LAN)
Estimated # of failures over five
years
* (8 hr. day)
Total cost of data loss
(cost of day's worth of data) * (% of
data
Total losses over five years
not recoverable)
Total =
2) Calculating personnel downtime
(Total cost per failure) * (Estimated
# of
failures over five years)
Type of failure ?
Natural
Fire
Theft
Hardware
Software
Electrical
Neglect
Mean time to repair (hours) ?
Average hourly wage of users ?
Salary cost
Average wage of users * # of users *
mean
time to repair
Consultant or overtime cost ?
Consultant hourly fee * Mean time
Total cost
Salary cost + overtime cost, if
applicable +
consultant's cost, if applicable)
