Introduction to Low-code
Compared to conventional methods, low-code platforms simplify, accelerate, and reduce the cost of application development, which is especially appealing to IT departments. As the preferred technology, the digital workplace adopts low-code and no-code applications, and application development will be replaced by assembly and integration. According to recent research by Gartner, by 2025, 70% of newly developed enterprise applications will employ low-code or no-code technologies. To know more about low-code, refer to our earlier post.
How does Low-code work?
Low-code applications are developed utilizing a visual development environment with tools such as drag-and-drop modelers, intelligent services, components, and pre-built connectors. They reduce the need to write code and significantly accelerate the development and deployment of applications.
Low-code application development permits development teams and business users to create more applications (of any level of complexity) in less time than traditional coding. Low-code application development platforms enable organizations to become more agile and quickly meet enterprise business requirements such as workflow automation, streamlined business operations, improved customer journeys, and policy and regulation compliance.
Related Article: 7 Key Benefits of Low-code Platforms for Enterprises
How to measure Low-code ROI?
Measuring progress with well-defined metrics is the first step to achieving success with digital transformation (DX) initiatives utilizing low-code and ensuring that your LCAP delivers value commensurate with its cost.
1] Choosing the right platform
Before you begin calculating the number of users for your low-code platform, you should note that various types of media are available. Choosing the incorrect one will result in negative financial figures quickly. Low-code automation platforms fall into three primary categories.
The first is general-purpose platforms, which enable teams to build applications that can do virtually anything imaginable and run on any operating system. These tools are favored by seasoned developers, who value their enhanced superpowers that shorten development cycles by enabling rapid deployment and editing of new applications.
Second, mobile app development platforms are primarily designed to create mobile apps. Again, the application’s functionality can be pretty expansive, but MADPs are mainly used to generate apps that will reside on a mobile device. Some low-code tools help mobile developers work faster, while others make app development less intimidating for non-programmers.
2] Defining core goals & objectives
Before calculating ROI, you will need to determine which metrics are most important to your digital strategy. You can collect many metrics, but only the relevant key performance indicators (KPIs) will assist you in achieving strategic objectives.
To measure the metrics, it is essential to do the following:
a] Determine what you would like low-code to do for you. If your LCNC platform drives the organization’s broader application delivery objectives, you should consider time-to-market and adoption metrics. Productivity metrics should be considered if it is expected to be a point solution to a specific problem.
b] Determine the users of the platform. If your goal is to assist developers, you should search for metrics that pertain to enhancing IT output. To engage citizen developers, look for KPIs and growth related to digital transformation.
Top Metrics to measure Low-code ROI:
Digital strategies can vary from organization to organization, but you can rely on universal vital metrics to measure DX progress. The following metrics are required to evaluate the success of your low-code applications:
IT spending & dependency
IT expenditure is an essential metric for calculating the ROI of a low-code platform. Total IT expenditure compares your planned IT budget to actual IT expenditures. This KPI allows you to determine whether a project is overspending or underspending its budget. You can redirect resources, detect overspending, and create a budget by identifying the under-supplied areas of your IT infrastructure. A low-code platform should significantly impact the number of IT application requests and the speed with which developers can process them. Rapid application development (RAD) enables developers to produce apps that meet specific requirements rapidly. Low-code helps faster software delivery. On an LCAP, you can instantly design app prototypes and conduct iterations, drastically reducing the IT team’s turnaround time.
Measuring the metrics:
- Compare the cost and time required to develop an enterprise application with and without the low-code platform.
- Determine the number of individuals required to complete the project within the specified time frame.
- Estimate the additional resources required with and without the low-code platform.
- Calculate and evaluate the costs associated with alternative single-point solutions.
- Determine if low-code development can be utilized to complete delayed projects and rejected requirements. Determine if additional features and enhancements will incur additional costs when using low-code platforms.
- Determine whether developers have sufficient bandwidth to work on mission-critical projects without an LCAP.
- Examine the time required to maintain and update legacy applications without low-code.
- Compare the time it took the IT team to close requests before and after the implementation of LCAP.
- Examine and compare the impact and quality of IT output before and following implementation.
Related article: Characteristics of High-Performing Low-Code Solutions
Digital transformation benchmarks/progress
Digital transformation benchmarks quantify the scope of the business objectives you seek to accomplish through digital transformation. Measuring how often and effectively your employees use your low-code business applications enables you to determine whether your new tools are practical and efficient.
Measuring the metrics:
- Analyze your current digital transformation strategy. Determine how your roadmap would change after implementing low code and how it would compare to the current roadmap.
- Determine whether a department can implement the road map.
- Calculate employee participation and engagement with the application.
- Determine if the application encourages voluntary adoption.
- Determine if the app promotes employee productivity by integrating it with other essential workplace tools.
- Compare and track the costs associated with these digital initiatives.
Reduce Stress Factors
One of the most prevalent (yet least discussed) reasons for turning to a low-code solution is the level of constant chaos that most IT teams face. From unhappy and hostile business leaders who demand faster app development to the stress of a growing queue of requests and escalations, the pressure that IT leaders are under appears to have no end.
Although possibly the most difficult to quantify, this return may be the most valuable. A low-code platform should significantly reduce the stressors facing the IT team and the business.
Measuring the metrics:
- How much time does your IT team spend on existing application support tickets, feature enhancements, and escalated issues? The implementation of a low-code platform should drastically reduce these.
- Your IT team’s perception of their contribution to the company’s mission. If your team is demotivated by developing small apps or maintaining existing ones, they may seek more challenging work elsewhere.
- What projects have you recently rejected? When the IT team is overburdened with existing tasks, turning down and redirecting high-impact projects results in a significant loss of opportunity and increased stress.
- How do other departments feel about IT? Ask other business leaders how they think of IT in a survey. Are they pleased with the response time, development time, and other measurables? As IT becomes an enabler rather than a stopgap, a low-code development platform can significantly improve these relationships.
How to choose the right Low-code platform for your business?
Low-code platforms with various functionalities, such as general development, process automation, content management, and integration, are available on the market.
The ideal low-code platform for any organization would satisfy current and future digital needs to increase productivity and profits. How can businesses select the optimal low-code forum? How can companies identify the appropriate capabilities to realize benefits?
- What capabilities do the current systems possess?
Understanding the capabilities of your current systems is crucial, as it enables you to plan for the capabilities your business requires. Will a low-code platform upgrade or augment your system’s capabilities? Or are you seeking a complete digital overhaul? Low-code capabilities are evolving to meet dynamic mobility, security, and user requirements, so you must know precisely which capabilities you need.
2. Do you understand the needs and desires of your organization’s stakeholders?
Line-of-business stakeholders work closely with particular business processes and are familiar with the existing challenges and user expectations. Include them in the decision-making process and carefully consider their input. In addition to their in-depth knowledge of market demands and regulatory requirements, they can provide insightful recommendations for selecting the optimal low-code platform.
3. Which business processes do you intend to automate?
Instead of considering only platforms with limited functionality to address a particular challenge, think a low-code platform with extended functionality. Some low-code vendors provide off-the-shelf solutions that target a specific functionality. However, what if you need a solution to address a different challenge within the same process?
4. Will your core systems integrate with a low-code platform?
A low-code platform should provide seamless integration with your organization’s core systems. Consider a platform with proven integration capabilities and accelerators to automate processes easily and a comprehensive view of vital data or information for end-to-end visibility for all departments, management, customers, and employees.
5. How will you evaluate the success of your low-code platform?
It would help if you benchmarked the current environment to determine how a low-code platform will add value to your organization. Include insights on current challenges, performance, and user experiences to clarify and identify other areas where a low-code platform may provide additional benefits.
Examples of ROI achieved through Low-Code platform
Automation Vehicle finance for a leading lender
Redefining processes to increase productivity, optimize cost and provide seamless integration.
The key issues faced by a leading company in vehicle finance were low salesforce productivity, poor user experience, compliance issues and limited ability to make process changes. Apart from these, they also had difficulty processing large volumes of leads and with integration.
Autonom8’s low code platform helped reimagine their internal process to create a single view & execute complex rules – with the ability to manage multiple borrowers & vehicles configured the platform with a weekly review of UX and business rules, with a variety of client stakeholders. The entire implementation was completed within 60 business days and subsequently saw lower IT dependencies as well. Read the entire case study here
Chatbot orchestration for work-sharing platform
Customization of the platform to deliver multiple workflows for rapid deployment of product
An emerging fintech player wanted to fully outsource technology in order to focus on sales and credit. The two top priorities were the rapid deployment of product variants and the creation of a market differentiator based on rapid disbursement.
Autonom8 customized the platform to deliver multiple workflows tailored to product specifications. This included taking the entire process online making it easy to upload documents and supporting images. The entire process was implemented in 15 business days. The low code platform was agile to accommodate changes at the field and business level within 8 to 16 hours and involved minimal involvement from the IT department, except for integration with their back-end systems. Sales efficiency grew by 25%, while back-office productivity by 45%. Read the entire case study here
Note: In both these cases, the turn around time saw a phenomenal increase of 4x times!
Low-code platform trial – Autonom8
There is a good chance that low-code platform implementation will generate a positive return on investment. However, keep in mind that adopting low-code is a platform adoption. After completing the initial project, organizations work more often with low code. Utilize our low-code ROI calculator to determine if this technology can benefit your business. Autonom8 is an excellent starting point for low-code/no-code investigation. We have low-code solutions to streamline and automate processes. In addition, our pricing structure makes it one of the most affordable options.
FAQs on Low-code ROI
How can you determine whether low-code platforms will generate a positive return on investment (ROI) now that you know how businesses can utilise them? Many CIOs and IT leaders are able to enumerate the benefits of low-code, but few have a method for determining whether it is worth the investment. The low-code interface is model-driven and drag-and-drop. You can create a variety of metrics to measure the success of low-code, but here are five options (that you are probably already tracking) that can help you determine whether or not a low-code platform is worth the investment. 84% of companies with the most stringent enterprise requirements use low-code development and see a return on investment, according to a Forrester report. The research demonstrates that low-code has the ability to overcome the most formidable obstacles to successful digital transformation. In fact, the survey revealed that 100% low-code adopters have realized a positive return on investment.
What is low-code?
How to measure Low-code ROI?
(1) Reducing IT Spending & dependency
(2) Digital Transformation progress
(3) Boosting IT Output
(4) Reducing Stress Factors
What is the ROI growth going to be with low-code platforms?
How can you determine whether low-code platforms will generate a positive return on investment (ROI) now that you know how businesses can utilise them? Many CIOs and IT leaders are able to enumerate the benefits of low-code, but few have a method for determining whether it is worth the investment. The low-code interface is model-driven and drag-and-drop.
You can create a variety of metrics to measure the success of low-code, but here are five options (that you are probably already tracking) that can help you determine whether or not a low-code platform is worth the investment.
84% of companies with the most stringent enterprise requirements use low-code development and see a return on investment, according to a Forrester report. The research demonstrates that low-code has the ability to overcome the most formidable obstacles to successful digital transformation. In fact, the survey revealed that 100% low-code adopters have realized a positive return on investment.