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ROI Analytics

ROI Analytics surface return-on-investment metrics, sensitivity analysis, and what-if scenarios so you can stress-test value models before committing to a business case. The analytics are powered by the Layer 4 ROI Calculator workflow, which evaluates value driver formulas using prospect data and industry benchmarks.

Who this is for

End User Admin Executive

Prerequisites

Step-by-step instructions

1. Open the ROI Calculator

  1. In Value Studio, select the ROI Calculator tab.
  2. The calculator loads the current value driver formulas and substituted variables.

2. Review core metrics

The aggregated results display:

Metric Description Formula context
Total Annual Value Sum of evaluated value drivers Sum of all driver results
Simple ROI Percent Annual return divided by investment (total_annual_value - investment) / investment * 100
3-Year NPV Net present value using a 10% discount rate -investment + Σ(value / (1 + 0.10)^year)
Payback Period Months to break even investment / (total_annual_value / 12)
Average Confidence Mean confidence across all drivers Sum of driver confidences / driver count

3. Run sensitivity analysis

  1. Adjust key variables using the sliders:
  2. annual_revenue
  3. employee_count
  4. implementation_cost
  5. hourly_rate
  6. Observe how metrics change in real time.
  7. Note which variables have the largest impact on NPV and payback.

4. Create what-if scenarios

  1. Click Save Scenario after adjusting variables.
  2. Name the scenario (for example, Pessimistic Q3).
  3. Create additional scenarios:
  4. Base Case — current assumptions.
  5. Optimistic Case — best-case assumptions.
  6. Pessimistic Case — conservative assumptions.
  7. Compare scenarios side by side in the scenario table.

5. Compare benchmarks

If benchmarks are available, the calculator shows:

  • Peer Median — the p50 value for your industry and segment.
  • Your Percentile — where your metric ranks among peers.
  • Assessment — top_performer, above_average, average, below_average, or needs_improvement.

6. Export results

  1. Click Model Impact to send the scenario to the Action Plan or Narrative tab.
  2. Alternatively, click Export to download a CSV of all driver results.
Investment:        $250,000
Annual Value:      $450,000
Simple ROI:        80.0%
Payback:           6.7 months
3-Year NPV:        $868,182
Average Confidence: 75%

Investment:        $250,000
Annual Value:      $320,000
Simple ROI:        28.0%
Payback:           9.4 months
3-Year NPV:        $545,455
Average Confidence: 60%

Investment:        $250,000
Annual Value:      $600,000
Simple ROI:        140.0%
Payback:           5.0 months
3-Year NPV:        $1,240,000
Average Confidence: 85%

Tip: Watch confidence levels

Drivers with low confidence highlight assumptions that need more evidence. Focus validation efforts there first. A driver with confidence below 30% should not be used in an external business case without additional proof.

Permissions required

Role Permission Scope
User View / Create scenarios Assigned accounts
Admin Edit default variables / Configure benchmarks / Set confidence thresholds Tenant-wide
Executive View / Export Portfolio

Limits and guardrails

Limit What-if scenarios are limited to 10 per account. Limit Sensitivity sliders allow ±50% adjustment from the base value. Limit Formula evaluation is capped at 25 value drivers per account.

Troubleshooting

Issue: ROI shows infinity or negative payback

Cause: Total annual value is zero or negative, or investment is missing. Resolution: Verify that value drivers have formulas and that implementation_cost is greater than zero. Check for division-by-zero in driver formulas.

Issue: Benchmark comparison is missing

Cause: No benchmark dataset matches the account industry and segment. Resolution: Ask an admin to upload or enable the relevant benchmark dataset in Governance → Benchmarks. Verify Layer 6 service health.

Issue: Scenario save fails

Cause: The account has reached the 10-scenario limit. Resolution: Delete an old scenario before saving a new one. Admins can increase the limit via configuration.

Issue: Confidence is 0% for all drivers

Cause: The graph query for variables failed, or no prospect data is available. Resolution: Check the account enrichment status and verify that annual_revenue and employee_count are populated.

Escalation path

For formula evaluation errors or benchmark sync issues, open a support ticket with severity P3 and the account ID.