Understanding the ROI of Implementing a Faculty Information System (FIS)

Implementing a Faculty Information System (FIS) like SmartPath can bring significant cost savings and value to higher education institutions. By streamlining faculty management processes and centralizing data, institutions can: 

• Enhance efficiency
• Reduce administrative burden 
• Support strategic decision-making.

Here, let’s dig into the key value and cost components that deliver ROI on your FIS. Plus, we’ll offer expert-level guidance on how to make a compelling case to your finance team and leadership.

The Key Components of Cost

Prepare for Initial Implementation Costs

• Software Purchase/Subscription: The upfront cost of acquiring the FIS, which can vary depending on whether it is a one-time purchase or a subscription-based model.
• Implementation Services: Costs associated with setting up the system, including configuration, customization, and integration with existing systems.
• Training and Onboarding: Expenses for training faculty and administrative staff to effectively use the new system.

Plan for Ongoing Operational Costs

• Maintenance and Support: Regular maintenance fees and support services to ensure the system runs smoothly and any issues are promptly addressed.
• Updates and Upgrades: Periodic updates to the software to include new features, security patches, and compliance with evolving regulations.
• Licensing Fees: For cloud-based solutions, there may be ongoing hosting fees depending on the data storage and usage requirements.

Don’t Forget the Indirect Costs

• Transition Costs: Temporary productivity losses during the transition phase as staff adapt to the new system.
• Change Management: Costs related to managing organizational change, including communication and additional support resources.

The Key Components of FIS Value 

Operational Efficiency Is a Must

• Automation of Processes: Automating manual processes such as faculty appointments, evaluations, promotions, and tenure reviews significantly reduces administrative workload and associated costs.
• Streamlined Data Management: Centralizing data eliminates duplication, reduces errors, and ensures consistency for greater accuracy and efficiency. 
• Time Savings: By reducing the time required for administrative tasks, faculty and staff can focus on higher-value activities, such as teaching, research, and strategic planning.

Getting It Right the First Time With Enhanced Data Accuracy and Reporting

• Improved Data Integrity: Automated data entry and validation improve the accuracy and reliability of faculty data, supporting better decision-making.
• Comprehensive Reporting: Advanced reporting capabilities enable institutions to generate detailed reports for accreditation, compliance, and strategic analysis for better-informed decision-making. 

In Higher Ed, Saving Money Matters More Than Ever

• Reduced Paperwork and Printing Costs: Moving to a digital system eliminates the need for paper forms, printing, and physical storage, resulting in significant cost savings.
• Lower Administrative Costs: Streamlined workflows and automated notifications reduce the need for manual oversight and follow-up, cutting down on administrative overhead.
• Avoidance of Unnecessary Accreditation Work: Ensuring compliance with regulatory requirements and accreditation standards helps institutions avoid the risk of negative findings that can lead to rework, delays, and potential threats to accreditation status.

Benefits Rooted in Strategy

• Informed Decision-Making: Access to accurate, up-to-date data supports strategic planning and resource allocation and helps institutions achieve their long-term goals.
• Scalability and Flexibility: A configurable FIS can adapt to the changing needs of the institution in support of growth and evolving requirements without significant additional costs.

You Can’t Put a Price on Improved Stakeholder Satisfaction

• Enhanced User Experience: User-friendly interfaces and real-time updates improve the experience for faculty and administrative staff for higher satisfaction and better engagement.
• Transparent Processes: Increased visibility into workflow status and progress helps build trust and accountability among stakeholders.

Calculating ROI to Tell a Compelling Value Story

While calculating ROI can be done using a standard formula (see below), the real challenge is making the value case resonate with finance and leadership.

ROI = (Total Value Gained – Total Costs Incurred) / Total Costs Incurred) × 100

To strengthen your case:

• Quantify the Value: Use internal data to estimate time savings, reductions in administrative burden, and cost avoidance.
• Frame the Narrative: Emphasize long-term benefits such as improved strategic planning, risk reduction, and adaptability.
• Speak the Language of Finance: Break down the investment over multiple years, highlight cost offsets, and present different funding options.
• “Sell” by Example: Share success stories or benchmarks from peer institutions to contextualize your projections.
• Align the Key Points With the Institution’s Strategic Goals: Tie the FIS implementation to broader institutional objectives, such as accreditation readiness, digital transformation, or operational excellence.

An FIS like SmartPath isn’t just an IT project—it’s a technology that delivers strategic value while empowering institutions to streamline workflows, saving significant time and effort.

Ready to get the maximum ROI on every dollar spent on your FIS?