What is your return on integration assets (ROIA)?

return-integration assets-ROIA

In part one of this blog series, I introduced the different ways reusable integration assets can be valuable. Here I’ll provide a simple for assessing the projected return on integration assets (ROIA), which can help inform how your organization prioritizes integration development.

Note that there are various sources of value that a reusable integration asset can create, however, this framework will focus on the value opportunities that stem from development and maintenance efficiencies. To learn about other sources of value, such as monetization potential, impact on customer experience, etc. see our related whitepaper.

The framework for calculating ROIA, an example

Two ways to measure

Note that there are two ways to measure the value of a reusable asset from a development and maintenance perspective. In the above example, we use method No. 2:

No. 1: Compare API-led approach to non-API-led approach

With this method, you calculate a “comparative” value by measuring the cost difference between developing and maintaining an integration asset using a custom, point-to-point approach to that of an API-led approach. Essentially, you are calculating “x – y”, where “x” = cost to develop/maintain integration without API-led approach and “y” = cost to develop or maintain integration with an API-led approach. 

For example, let’s assume the cost of development and maintenance for a non-API-led approach is $10,000 (x), while the cost for an API-led approach is $5,000 (y). To find the value of this asset, subtract x from y ($10,000 – $5,000) to get $5,000.

No. 2: Identify cost of API-led approach

With this method, you calculate an “absolute” value by only looking at the actual cost to build and maintain an integration asset using an API-led approach. In this case, you determine “y”, where “y” = cost to develop/maintain an integration with an API-led approach. 

For example, let’s assume the API-led approach costs $5,000 to build and maintain. The value of this asset is $5,000.

This post should help you assess the value of your integration assets, drive an optimal ROIA, and help inform your integration development prioritization. In my final blog post of the series, we’ll review a case study of how a U.S. high-tech company used this framework to generate significant value from reusable integration assets.

To learn more about the total , download our whitepaper, How to articulate the value of integration.

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One Response to “What is your return on integration assets (ROIA)?”

  1. This is a great article – a view of one layer of the asset. There is usually a one-time and then on-going cost of infrastructure to run the asset. That is beside the man hours to run and maintain. But can be easily added to the calculation above.

    Other indicator of ROI could also be time saved on API led initiatives when there is CI CD pipeline available to automate code delivery to production.

    Time to market vs time to actual revenue: if it used to take me 6 months to build a reusable revenue generating asset (a soap xml web service that opens an account) vs 3 weeks by using API technology and automation, my revenue starts coming in sooner. And $X dollars in revenue earned now vs the same amount 6 months later holds more value.

    Sometimes, you might find yourself turning something legacy off when you are launching a new asset. That translates into some cost savings that can now be repurposed elsewhere.