ROI Impact of Adopting Microsoft Power Apps

Introduction

According to a research conducted by Forrester Institute reveals that the majority of developers around 89%, has engaged with low code platforms in the past year to streamline their work processes. Additionally 79% of developers reported using code/no code tools or digital process automation (DPA). These findings indicate not the adoption but also the willingness of developers to incorporate these technologies into their work and view themselves as active participants in this evolving landscape. Microsoft Power Apps aims to empower both experienced and citizen based developers, with a variety of applications, services, connectors and a solid data platform all tailored to provide a quick and effective development setting for constructing business applications. 

Boost ROI with Microsoft Power Apps: Streamline Development, Cut Costs

Power Apps provides a range of tools and features that enable users to build customized business solutions quickly and efficiently by integrating with various data sources available on both cloud and on-premises platforms. The financial effect of Microsoft Power Apps can be significant, as it reduces development costs and accelerates time to market for new applications. The ROI impact of adopting Microsoft Power Apps is also noteworthy, as it enhances business efficiency while lowering expenses. Power Apps makes it easier for both experienced developers and tech-savvy individuals to create business apps by streamlining the development process and minimizing the need for complex coding abilities.

Microsoft partnered with Forrester Consulting to conduct a study, on the Total Economic Impact™ (TEI) focusing on evaluating the return on investment (ROI). The study aims to provide businesses with insights into how utilizing standalone Power Apps licenses could lead to benefits, for their organizations. 

ROI Impact of Adopting Microsoft Power Apps

Forrester interviewed five people from four companies who have used Power Apps Premium to understand the benefits and risks of this investment in detail.They also spoke with eight representatives from organizations about how they use features of the Power Platform and the advantages of integrating Power Apps with other tools, on the platform. For this research project Forrester gathered the input from these discussions and constructed a composite organization that has 30k employees and earns $10 billion, in revenue. 

Prior, to embracing Power Apps adoption participants noted that their companies tackled business obstacles using applications requiring coding skills and lengthy development timelines or relied on manual methods instead.In instances some individuals turned to shadow IT fixes to handle issues independently.This led to delays, in application approval and implementation processes as the associated dangers of shadow IT practices. After trying to make operations more efficient, in the pasts businesses still deal with delays in approvals and complex high code programming along with manual procedures and the ongoing issue of unauthorized software use in the background.These challenges have had an impact, on the work output of users and software experts alike. 

After investing in Power Apps companies found themselves capable of addressing a range of scenarios that were beyond their reach. The investment yielded outcomes such as improved efficiency for both users and developers and better compliance and governance practices. There was also a decrease in shadow IT use and an overall enhancement in employee satisfaction. 

 

Key Findings 

ROI Impact of Adopting Microsoft Power Apps

Benefits that are measurable. Benefits for the composite organization with a three-year risk-adjusted present value (PV) quantification include: 

  • Users save a lot of time with Power Apps! Businesses use both Microsoft Power Apps and Microsoft Power Automate to create and workflows that connect different systems and applications seamlessly. This helps a group of users in situations, saving about 250 hours every year. Which is around 12% of their working time.More employees benefit from this too but in a way by saving 10 hours per year. Various typical uses involve tasks, in the field setting up operations and managing customer relationships as training employees and streamlining workflows among other functions. In a timeframe of three years the enhancements in efficiency delivered by Power Apps are estimated to be worth $31.3 million for the organization. 
  • There has been a 50% reduction, in the time it takes to create apps thanks to Power Apps at the organization where professional developers work on internal applications development projects efficiently and quickly now using this technology instead of relying on complex custom coding due, to its seamless integration features and user friendly interface that streamline app creation and update processes. In the three years the time saving benefits of Power Apps have added up to a total value of $14 million, for the company. 

 

Unmeasured advantages. The following benefits add value to the composite organisation but are not measured in this study: 

  • Improved management and adherence, to rules and regulations have been emphasized by those interviewed when discussing the use of Power Apps in their organizations The platform facilitates the implementation of workflows and procedures to ensure consistent compliance with regulatory requirements They specifically mentioned important aspects like access restrictions audit trails and data validation as key elements that give their organizations better control over data security integrity and compliance, with internal policies and regulations 
  • Reducing Shadow IT is crucial according to some interviewees who emphasized the significance of Power Apps in this effort. By providing a user platform for users to create their business applications within a monitored and secure environment, Power Apps enables individuals to develop tailored solutions. This feature helps decrease the reliance on uncontrolled applications resulting in lowered risks associated with shadow IT. By permitting application development following IT approved standards Power Apps addresses the issues presented by software. 
  • Participants, in the interviews pointed out that Power Apps greatly improves the employee experience by letting users create and customize their applications without relying on IT or development teams.This independence enables employees to better meet their business needs and fosters a sense of ownership and empowerment among them. They also highlighted the user interface and intuitive design of Power Apps along with its integration, with other Microsoft tools and third party software. This blend results in more user experience, for employees interacting with the software applications. 

 

Prices. Risk-adjusted, three-year PV costs for the composite organisation consist of: 

  • The organization will be spending a total of $11.3million on licensing fees for using Microsoft Power Apps over a three year period, resulting in an expenditure of $11.3million, for licensing purposes. 
  • In the course of three years three directory period time duration period duration time organization is expected to invest $1.9 million, in staff wages and training costs for overseeing the introduction of Power Apps and providing training to both developers and citizen developers. 
  • The combined entity incurs continual management costs amounting to $ 2 million within a span of three years.  

  

Based on discussions and financial assessments carried out with company officials revealed that this integrated company has gained benefits totaling $46.1 million over the course of three years while incurring costs of $15.1 million during the period. Consequently, its net present value (NPV) stands at $31 million. It boasts a return on investment of 206%. 

ROI Impact of Adopting Microsoft Power Apps

 

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