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Keep ROI models understandable. A simple model with visible assumptions is more useful than a complex model nobody trusts.

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Labour capacity

Annual hours released = annual volume × minutes saved per item ÷ 60 Capacity value = annual hours released × loaded hourly cost Then ask how the capacity will actually be used. If no headcount is removed, frame this as capacity rather than guaranteed cash saving.

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Avoided hiring

Avoided hiring value = FTE requirement avoided × loaded annual FTE cost Use only where the organisation genuinely expects to add capacity absent the change.

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Error reduction

Annual benefit = current error volume × cost per error × expected reduction Include downstream rework, credits, complaints or operational cost only where supported.

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Revenue opportunity

Expected revenue benefit = relevant volume × conversion uplift × average contribution per conversion Contribution is often more useful than headline revenue when costs scale with sales.

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Payback

Payback period = implementation investment ÷ monthly net benefit

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Simple ROI

ROI = (annual benefit − annualised cost) ÷ annualised cost

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Sensitivity analysis

Change the two or three assumptions that drive the model most. Typical sensitivity variables include adoption, minutes saved, transaction volume and implementation cost.
Do not present Iris-generated or consultant-estimated ROI as realised benefit. The diagnostic establishes an expected case; realised value must be measured after implementation.

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Minimum assumptions table

For each input include: source, owner, current value, scenario value, confidence and review date.