ROI  Resources - Economic Justification of Wireless LANs 

As businesses implement wireless technologies, quantitative and qualitative data is becoming available to build a solid case for wireless networking return on investment. The data available here comes from a variety of reputable research sources. Keep in mind, however, that there is a wide range of wireless deployment scenarios and user groups. Variables include such factors as usage models, applications, and organization size. Regardless of the variations from study to study one thing is clear: Wireless networking brings positive returns to companies of every size and business model. 

Everyday ROI
Wireless LANs are a smart investment and offer real return for your business. They enable you to install only the amount of networking you need right now and to realize immediate cost savings from increased productivity and efficiency. Should your business grow, you can build on what you already have. Wireless computing systems and other mobile devices, such as handhelds, have also decreased in cost significantly. This is enough to make wireless implementation a reality for many businesses like yours.

The following pages provide information on developing a financial business case and developing an ROI model for wireless LANs:

• For an overview on building a business case for mobile solutions, Go to the main Mobile Computing Benefits Page

• WLANA (Wireless LAN association) study on ROI of wireless LANs - Full report

• Report from Cisco - a vendor of wireless LANs 

Statistics From WLANA Show Gains for Wireless Network Users: ***1

• Average time to fully pay back the initial costs of WLAN installations was 8.9 months. 

• 97 percent of customers said that wireless LANs met or exceeded their expectation, to provide their company with a competitive advantage.

• Productivity benefits quantified were found to be 48 percent of the total return on investment.

• 92 percent found definite "economic and business benefits" after installation.

• 92 percent reported plans to continue to deploy WLANs in the future.

• The WLAN market is growing at a 40-60 percent annual rate.

For additional information on methodology and findings, go to WLANA website. 

From a study reported by Cisco* - NOP World-Technology (2001) 

Workers Report Benefits 

• Users, on average, increased productivity by 22 percent.

• At an average salary of $64k, this indicates the annual productivity improvement is worth $7k. For an average large corporate organization, this results in a productivity improvement of $63m per annum. · Most companies underestimated the financial benefit in their ROI calculations.

• 63 percent of end users report that WLAN technology improves the accuracy of everyday tasks. 

• 51 percent of healthcare organizations found a 50 percent improvement in accuracy.

• 87 percent of end users believe WLAN improves their quality of life by increasing flexibility, productivity, and time-savings.

• 43 percent believed this improvement was significant. 
  

***2 - From a study prepared for Cisco* by NOP World-Technology (2001)