Cost Performance Index in software

The cost of software development, upgrade and maintenance projects can be a sore point because they don’t come cheap. Whether you take-on the projects in-house or outs...

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The cost of software development, upgrade and maintenance projects can be a sore point because they don’t come cheap. Whether you take-on the projects in-house or outsource them, there are technology and resourcing costs that can spiral when unmanaged, causing them to go over-budget.

As with any project, a quick return on investment is wanted from software projects. When your business is reliant on technology to run and be profitable, extended tech projects that don’t perform or deliver value fast are a thorn in the side of business continuity as well as the bottom line.

Here’s an idea of software project costs

In Dubai, the cost of the average app development project ranges from $5 000 to $10 000. For complications and multi-feature app, prices shoot to between $267 000 and $360 000. 

Need a website? For a small and simple business website, expect to pay in the region of $15 000.  For a conversion or lead-focused website, the cost will be about $30 000, and $50 000 upwards for a complex, feature-rich website. 

The average cost of a business software upgrade, from Enterprise Resource Planning and Customer Relationship Management systems to IT security, can range from a few thousand to hundreds of thousands of dollars, depending on the size and the type of business you are in.

Don’t underestimate the time and financial resources needed to build quality, functional software applications. There is a lot that goes into it and costs begin to stack-up when the project doesn’t perform or goes over-budget. 

Use the Cost Performance Index to measure project cost efficiency

The Cost Performance Index is a measure of the financial effectiveness and efficiency of a project, and represents the amount of work completed for every monetary unit spent. Project managers can use CPI to measure the cost efficiency of software projects against the work actually completed for an early flag that budget or scope adjustments need to be made. Simply put, it is a way of demonstrating whether or not your project is on budget and performing.

Using the CPI will give you an honest view of the cost efficiency of budgeted resources as a ratio of earned value to actual costs. 

The power of one

You can calculate the Cost Performance Index by dividing the Earned Value (EV) by Actual Cost (AC). When we talk about Earned Value (EV), we are talking about the amount of the task that is actually completed compared to what was planned to be done by a particular stage. It is expressed in terms of the budget set for the project. For instance, if the budget is $10,000 but only 20% of the work has been completed halfway through the six month project timeframe, then the EV is $2,000. The Actual Cost (AC) is the amount of money that has been spent on the task.

So, CPI = EV / AC 

For example, if a project has an EV of $30 000 but the AC is $15 000, the CPI is 2. 

But what does that mean?

CPI < 1a CPI that is less than one means the earning is less than the amount spent. You can say the project is over budget. 

CPI > 1a CPI that greater than one means the earning is more than the amount spent. This is when you can happily say that the project is under budget. 

CPI = 1a CPI equal to one means the earning and spending are equal. Everything is going according to plan and the project is performing well. 

The upside and downside of technology

In this digital age, you know that technology not only enables your business but powers it. There is a downside though. Software needs constant maintenance and frequent upgrades. Don’t consider maintenance or upgrade projects as a nuisance. Instead, see upgrades as an investment into better efficiencies, seamless continuity, improved productivity, more features, greater functionality, happier employees, more engaged customers, tighter IT security and reduced risks. The list of rewards from optimised software goes on, and they translate into business growth. Maintaining your software systems will ensure that they are up-to-date, bug-free, cyber-secure and working as they should. 

Hand it over

Budget, skills and resourcing constraints will impact the progress and ultimate success of your software projects, whether it’s a new app development or a website upgrade. Poor planning leads to slow progress and failing to reach the goals you want to achieve. You want a CPI equal to one or more if you want the most bang for your buck.

Not your forte? Hand it over. At Digital Grind we eat, sleep and drink this stuff. We have an established team of tech experts who understand the software development, maintenance and user experience design landscape. We also know that getting ROI on software projects is important to our clients. So planning and sticking to budget and project timelines is non-negotiable. We aim for a CPI of one or more on every project we undertake. Have a look at what we did for Moro Hub

Got a goal or a project in mind? Start it now with Digital Grind.


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Brandon Busuttil
10 years immersion in the marketing, events and digital sectors, accompanied by an honours degree in Marketing Management. An unmistakable passion for connecting brands and people, fuelled by an entrepreneurial ‘make–it–happen’ approach to life.

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When it comes to brand visibility, you can’t go wrong with a solid search strategy in place. After all, it involves small tweaks that will help users find you if and w...

When it comes to brand visibility, you can’t go wrong with a solid search strategy in place. After all, it involves small tweaks that will help users find you if and when they need to. Of course, there are other elements at play, like your marketing strategy and specific business objectives, but a universal goal is growth and awareness, and that you’ll find on the search engine results pages - if you know-how. 

Search engine optimization is split up into two main categories in terms of the logistics. The first is on the backend, where the structure of your site and aspects of your code help determine visibility and give Google the lay of the land. Typically SEO specialists need to interact with this backend to ensure that pages are structured and categorized correctly, that duplicate content is marked as “invisible” to crawlers and that the site loads quickly enough for it to be convenient to users.

These are just a few basic and oversimplified examples for context. However, you don’t need to be a fully-fledged tech expert to make a significant difference to a site’s ranking - as there’s a whole nother element to gaining search cred. 


What is on-page SEO?

On-page SEO relates to activities you can do on the front-end to improve your site’s ranking, support link-building strategies and make content more inclusive and easily indexable. It’s also a good place to create mechanisms for users to engage with what you’re publishing and be able to process it all quickly and easily.

Why is this so important? Because it helps search engines like Google and Firefox determine how relevant your content is to a specific search query, which means the people who are looking for your products and services are more likely to find you. In fact, 68% of online experiences begin with a search engine. (BrightEdge)

In order to start improving your presence online and making the necessary changes to become more visible, it’s important to master the basics. Here’s how: 

  • Use keywords thoughtfully: Conducting basic keyword research using a keyword planner, can give you a good indication of what users in your segment are searching for, in relation to your brand. You can use the search volumes to determine a list of keywords by priority - primary, secondary and tertiary or thematic keywords.

    These keywords go into the metadata but also have special placements in the copy, on-page. You can show topic hierarchy by using the primary keyword in the title, and first and last 100 words of the page, the secondary keyword in the first subheading, and thematic keywords sprinkled throughout.

  • Get meta: Creating metadata for your pages and posts is a good way to optimise what users see when they search for your brand pages or related keywords. In the CRM you can write custom titles and descriptions for your page, using your primary keyword which is the keyword most searched for by your audience. Descriptions are usually truncated at 155 characters, so keep them short and engaging.

    This way users are more likely to read the whole thing and click through to your site. Plus, it has the added benefit of showing Google and other search engines what the page is about, as their technology indexes keywords. If you don’t create a custom one, it will automatically showcase the first few lines of text on the page. Pro tip: keep your primary and most important keyword close to the beginning of your title and description.

  • Create scannable content for users: Search engines allocate a  readability score to content that determines how easy it is for users to consume. This is based on factors like scannability of content, sentence length, and language use.

    Optimising your pages for better readability
    means formatting your pages with subheadings and bullet points, for example, considering language use and ensuring clean, well-written copy that takes punctuation, grammar and spelling into account.

  • Be inclusive: When uploading images onto your site, you can include alt tags and captions that describe images and give them context. This serves two functions. First, it makes the images more inclusive for the visually impaired interacting with the site, as these tags and captions are read via audio channels. Secondly, it allows search engines to index the images more thoroughly and gives them a thematic context in the same ways as keywords do. From here, they can determine relevance to search queries.

  • Make it meaningful: The quality of your content is what’s going to ultimately keep readers on your page, which means fluff won’t cut it. Similarly, by linking to reputable sources you can up the credibility of your work. The key to great SEO is simply creating genuinely good content that serves a purpose and fits a theme. So allocate the necessary resources to create something that meets needs and offers the reader more than what they expected.

  • Share it: The more traffic that goes to your site, the more likely it is to rank higher in the SERPs (MTU Edu). A good way to drive traffic is through sharing your content on social channels. By adding social icons, you can also encourage users to share with their audiences, helping you generate a larger readership on your site.

All told, basic on-page search knowledge is a must-have for any marketer or creative working particularly in the digital copywriting space - but it’s also an important part of your content strategy.

Without at least some consideration for search queries, you won’t get the most value from your site, which means wasted resources, missed leads and simply taking up space online. We can help you formulate better on-page strategies and drive new business to your digital doors. Speak to us for more information.

We had our very first podcast recording with the incredibly talented Lauren Haworth

Lauren Haworth is a business professional who actively invests and works with NFT projects – but her experience is that most NFT projects out there don’t have any real, tangible impact in the world (and many are scams or pyramid schemes). We sat down with Lauren to unpack some of her hands-on experience with NFT investing, and to figure out why and how businesses should incorporate NFTs into their day-to-day operations. Lauren also shares her experience with Green Tokens, some practical insights into an NFT project she’s currently involved in that’s bringing education to underprivileged children, and how she makes sure she invests in credible, profitable NFT projects.

Resources mentioned in this episode: Investopedia

To the untrained ear, the phrase “martech” sounds like another buzzword, and maybe in some ways, it is. It seems like everybody is adding the “tech” to words that alre...

To the untrained ear, the phrase “martech” sounds like another buzzword, and maybe in some ways, it is. It seems like everybody is adding the “tech” to words that already exist these days and making it a thing. However, there is real merit to understanding the intricacies behind the growing movement towards using technology in marketing and the applications and mechanisms that make this possible. 

As brand owners, playing in the marketing space, there are universal challenges that we have to overcome and tech provides us with a ton of ways to get there. 

The data conundrum

One of the biggest problems we face in the digital landscape today is making sense of enormous amounts of data available to us. In fact, according to TechJury, “1.7MB of data was created every second by every person during 2020” and these numbers only seem to be growing. With such a substantial base of information to sift through, it can seem impossible to draw truly valuable insights and manual detection of brand mentions can only get us so far. There just aren’t enough hours in a day or people on Earth to do the job of monitoring software, which is so key to improving performance in our industry. 

Does this mean that human power is now redundant? Of course not. But it is a good example of how embracing martech makes our everyday operations more efficient and helps create the right environment for smarter people-power. Without social listening and media monitoring, we create unimaginable amounts of work for employees, and by introducing data that needs to be manually vetted and constantly added to, we’re back at square one in terms of lacking resources for comprehending the digital spaces we operate in.

According to GlobalNewswire, the media monitoring software market was approximately USD 2,260 million in 2018 and is expected to generate around USD 7,236 million by 2027, at a CAGR of around 13.9% between 2019 and 2027”. What does this tell us? That data filtering is on the rise, and is quickly becoming part of our everyday operations in terms of monitoring, listening and reporting. 

As a result of this, new SaaS solutions are springing up around the globe, with major players in competition to get the monopoly. For brands and agencies, this shows an important skills gap to fill when it comes to understanding this software and developing the ability to draw meaningful insights and base campaigns on key findings. In order to future-proof the success of your digital marketing, you will need a firm grasp on the data landscape around your brand and the infrastructure to understand it. 


Martech skills development will grow massively in select nations

While the world is already adopting marketing technologies at a faster rate than pre-pandemic, we’re seeing a massive uptake of interest and skills development in tech-driven nations. For example, the first knowledge hub, related specifically to martech, popped up in the UAE in 2019. Now, only 3 years later, there’s a range of publications and supporting organizations coming to the fore, such as MartechNews and the Daily Martech Roundup, each with loyal followings. 


Spending and investment is on the rise

In the Gartner 2019 - 2020 survey (which conducts research from the responses of over 340 participants), it was reported that top-line marketing spend would decrease for the first time in over 5 years. So, this means that martech spend should decrease too, right? But the opposite has happened. The same survey findings showed that “martech spending rose to 29% of total budgets” - a phenomenal leap in light of the current scarcity of resources.

What does this mean for businesses, brands and entrepreneurs? It’s time to adopt or die. This level of investment and shift in spending is usually spurred on by greater ROI and predictive forecasting, which means the data is showing consistently high returns, either on resource savings or generation, that comes as a direct result of using martech more. 


New tools are emerging at a rapid rate

While some technological industries are forging partnerships within the ranks, martech seems to be a competitive and fast-paced environment. In fact, Martech Today reported that there are more than 8000 notable tools currently on the market for combining brand messaging and analytics with tech. 

These were mostly data analysis tools. To some, this may seem like an opportunity to join forces, but it appears that barring a few buyouts and acquisitions, we still haven’t quite solved the problem of adequately centralising data analytics and media interactions. Until this is achieved, and someone takes the monopoly, a rang of tools will continue to emerge.  


Preparing for the future

With growth in the martech sector becoming more evident and having an increasingly significant impact on marketing professionals, a few things are clear. The first of which is that brands must put the infrastructure in place to navigate a changing digital landscape or face some level of becoming obsolete. In short, there are a few critical steps towards preparing for the continued rise of martech:

  • Setting up infrastructure requires internal skills development and enlisting the help of expert service providers who already understand the space.
  • Marketing tools can automate daily tasks and take the grunt-work out of manually interpreting data. As this becomes the norm, it’s important for brands to be able to use and interact with these tools.
  • Businesses should designate marketing teams to help them continue to drive brand growth and capitalise on the growing level of opportunity available to them.
  • Outsmarting competitors will mean savvy, integrated marketing that’s based on data but does not forgo the human element. 
  • A bigger focus on allocating resources to marketing is a must in order to stay competitive and stay relevant to key audiences. 

At Digital Grind, we work tirelessly to understand the digital landscape and to keep building our technical infrastructure to meet the growing demands of the industry. Speak to us for more information or enlist our services on your next project and we can start to work together to ensure your business is fit for the future.