What is your return on integration assets (ROIA)?

return-integration assets-ROIA

In part 1 of this blog series, I displayed the different ways reusable assets can be valuable. I will take this one step further and introduce a simple for assessing the projected return on integration assets (ROIA), which can inform how your organization prioritizes integration development. 

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 other ways to articulate the value of integration, such as monetization potential and broader , see our related white paper.  

There are two ways to measure the value of a reusable asset from a development and maintenance perspective.

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

Calculate “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. 

With this method, measure the cost difference between developing and maintaining the integration asset using a custom, point-to-point code approach to the cost of developing and maintaining the integration asset using 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

Determine “y”, where “y” = cost to develop/maintain integrations with an API-led approach. 

With this method, only look at the actual cost to build and maintain the asset using 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 have helped you assess the value of your integration assets, to drive an optimal ROIA and prioritize development. 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.