monte-carlo-simulator/examples/simulations/software-investment-roi.yaml

Business decision framework with Monte Carlo risk analysis - instant via npx

name: Software Investment ROI Analysis
category: Technology Investment
description: Comprehensive ROI analysis for software investments including productivity gains, cost savings, automation benefits, and risk-adjusted returns
version: 1.0.0
tags: [software-investment, roi, productivity, automation, cost-savings, technology]

parameters:
  - key: initialInvestment
    label: Software Investment ($)
    type: number
    default: 250000
    min: 10000
    max: 10000000
    step: 10000
    description: Total software purchase, implementation, and training costs

  - key: affectedEmployees
    label: Employees Affected
    type: number
    default: 50
    min: 5
    max: 10000
    step: 5
    description: Number of employees who will use or benefit from the software

  - key: averageEmployeeCost
    label: Average Employee Cost ($/year)
    type: number
    default: 120000
    min: 50000
    max: 300000
    step: 5000
    description: Fully-loaded annual cost per affected employee

  - key: productivityGain
    label: Productivity Gain (%)
    type: number
    default: 15.0
    min: 2.0
    max: 50.0
    step: 1.0
    description: Expected productivity improvement per affected employee

  - key: implementationMonths
    label: Implementation Timeline (months)
    type: number
    default: 6
    min: 1
    max: 24
    step: 1
    description: Time required for full deployment and adoption

  - key: adoptionRate
    label: User Adoption Rate (%)
    type: number
    default: 85.0
    min: 50.0
    max: 100.0
    step: 5.0
    description: Expected percentage of users who will fully adopt the software

outputs:
  - key: annualProductivitySavings
    label: Annual Productivity Savings ($)
    description: Annual savings from improved employee productivity

  - key: annualMaintenanceCost
    label: Annual Maintenance Cost ($)
    description: Ongoing annual costs for software maintenance and support

  - key: netAnnualBenefit
    label: Net Annual Benefit ($)
    description: Annual benefits minus maintenance costs

  - key: simpleROI
    label: Simple ROI (%)
    description: First-year return on investment percentage

  - key: paybackMonths
    label: Payback Period (months)
    description: Time to recover initial investment

  - key: threeYearNPV
    label: 3-Year NPV ($)
    description: Net present value over three years (10% discount rate)

  - key: implementationRisk
    label: Implementation Risk Score (%)
    description: Risk adjustment factor based on timeline and complexity

simulation:
  logic: |
    // Calculate annual productivity savings
    const annualEmployeeCost = averageEmployeeCost
    const productivitySavingPerEmployee = annualEmployeeCost * (productivityGain / 100)
    const totalProductivitySavings = affectedEmployees * productivitySavingPerEmployee * (adoptionRate / 100)
    
    // Add implementation risk and execution variance
    const implementationRisk = Math.max(0.5, 1.0 - (implementationMonths - 6) * 0.05)  // Longer implementations have more risk
    const executionVariance = 0.7 + random() * 0.6  // ±30% execution variance
    const realizedSavings = totalProductivitySavings * implementationRisk * executionVariance
    
    // Calculate maintenance costs (20% of initial investment annually)
    const annualMaintenanceCost = initialInvestment * 0.20
    const netAnnualBenefit = realizedSavings - annualMaintenanceCost
    
    // ROI calculations
    const simpleROI = initialInvestment > 0 ? (netAnnualBenefit / initialInvestment) * 100 : 0
    const paybackMonths = netAnnualBenefit > 0 ? (initialInvestment / (netAnnualBenefit / 12)) : 999
    
    // 3-year NPV (10% discount rate)
    const discountRate = 0.10
    const year1NPV = netAnnualBenefit / (1 + discountRate)
    const year2NPV = netAnnualBenefit / Math.pow(1 + discountRate, 2) 
    const year3NPV = netAnnualBenefit / Math.pow(1 + discountRate, 3)
    const threeYearNPV = year1NPV + year2NPV + year3NPV - initialInvestment
    
    return {
      annualProductivitySavings: Math.round(realizedSavings),
      annualMaintenanceCost: Math.round(annualMaintenanceCost),
      netAnnualBenefit: Math.round(netAnnualBenefit),
      simpleROI: Math.round(simpleROI * 10) / 10,
      paybackMonths: Math.min(Math.round(paybackMonths * 10) / 10, 99.9),
      threeYearNPV: Math.round(threeYearNPV),
      implementationRisk: Math.round(implementationRisk * 100)
    }