As organizations strive to make more data-driven decisions, the demand for reporting and analytics has skyrocketed. However, the journey to embedding analytics within applications is fraught with complexity and cost considerations. Herein lies the value of tools like Explo's Embedded Analytics ROI calculator. We designed this calculator to help businesses understand the potential return on investment (ROI) of using Explo's embedded analytics solution versus the cost and time of building similar capabilities in-house. 

The purpose of this blog is to provide transparency and clarity in how the ROI calculator works, the inputs it requires, and its methodology to estimate costs and savings.

Introduction: Explo's Embedded Analytics ROI Calculator

Explo's Embedded Analytics ROI Calculator quantifies the financial and temporal benefits of leveraging its embedded analytics solution compared to the traditional route of developing analytics capabilities from scratch. It caters to organizations pondering the pivotal decision of buy vs. build for their reporting and analytics needs. By integrating Explo, companies can embed white-label dashboards and report generation directly into their applications, offering their end-users real-time data insights without the hefty investment of creating a custom solution. The calculator evaluates various parameters to determine how much time and money can be saved, thereby assisting organizations in making an informed decision.

Required ROI Calculator Inputs

First Step: Understanding Data Sharing Needs

The initial phase involves an assessment of how an organization intends to share data with its users. The type of analytics and reporting required by end-users can vary significantly, impacting the complexity and cost of implementation. Explo's calculator considers several data-sharing scenarios:

- In-app dashboards

- In-app tabular data reports

- Self-service dashboards and report creation

- Emailing reporting

Second Step: Quantifying the Analytics Needs

After identifying the types of analytics needed, the next step is to quantify the volume of reports and dashboards to be built and shared with customers. This involves considering:

- The number of customers who will access the dashboards and reports

- Monthly requests for custom reporting

- The necessity for custom dashboards and reporting

Calculator Methodology

Explo's ROI calculator uses the inputs from the previous sections to generate outputs, offering a comprehensive view of the potential savings. Here's how it breaks down:

Annual Cost Estimates

The  calculator takes into account whether custom reports are required, the number of customers (ranging from 1 to 10,000), and the volume of data reporting requests per month (from 1 to 100), to determine: 

- Total In-House Cost: Estimated total cost of developing and maintaining analytics capabilities internally.

- Build Time (Hrs):Estimated hours required to build the analytics solution.

- Maintenance Time (Hrs):Hours needed annually to maintain the solution.

- Total Time (Hrs):The aggregate of build and maintenance hours.

Explo Software Costs

The base annual cost of using Explo's software is included against the calculated in-house costs to highlight potential savings.

Constants (Annual) - Assumptions

Several assumptions underpin the calculator's estimations:

- Engineer Salary (All inclusive): $190,000

- PM Salary (All inclusive): $190,000

- Base Build Time (hours): 120

- Base Maintenance Time (hours): 80

These figures reflect average industry salaries and estimated times required for building and maintaining an analytics solution. They emphasize the significant investment needed for in-house development, from staffing to time allocation.

Final Thoughts

Explo's Embedded Analytics ROI Calculator offers a pragmatic approach to evaluating the financial and operational advantages of using an embedded analytics solution. By meticulously assessing your organization's analytics needs and comparing them against the substantial costs of in-house development, the calculator provides a clear picture of potential savings in both time and money. While these estimates are based on assumptions and may vary according to specific circumstances, they serve as a valuable starting point for organizations considering embedded analytics solutions. Ultimately, Explo's calculator aids in making an informed decision, steering businesses towards efficient and cost-effective data-driven strategies.