Blog: Business
How can I tell if it's worth investing in a LIMS?
10th January 2024
Given that many organizations and their laboratories are looking to improve efficiency and reduce costs, it may seem self-evident that introducing a Laboratory Information Management System (LIMS) should help in achieving that aim. However, tangible evidence in the form of a projected Return on Investment (ROI) and business plan is frequently required. In addition, these can provide a basis on which the success of the project can be measured. Autoscribe Informatics has just published an updated version of their popular white paper ‘Justifying the Purchase of a LIMS’. This is designed to help any organization develop a detailed, evidence-based justification for investing in a LIMS. This updated version discusses the key factors to be considered in an ROI assessment, and also provides models and examples for how ROI may be calculated.
Any ROI calculation should, if applicable, compare the acquisition and implementation of a new system against developing a system in house from scratch, or updating an existing, but no longer suitable, system. The white paper emphasizes how cost savings and productivity improvements can be identified and quantified as a precursor to calculating the ROI. Estimating actual cost savings in each functional area where LIMS may be deployed is especially challenging. However, a practical example shows how cost savings associated with improving just the sample reception process can be estimated.
Clearly identifying these potential cost savings is fundamental to the ROI calculation, but it is also important to give due consideration to intangible benefits as well. These may include projected extra business from increased efficiency savings, improved data integrity and accuracy and an increased ability to realize the value of data within the organization.
The key message of the white paper is the importance of devoting sufficient time to preparing your justification. Understand and identify the pain points as perceived by higher management and focus on solving these as well as general day to day workflow issues within the laboratory. Autoscribe Informatics staff have many hundreds of years of combined industry experience and have helped organizations do this many times. We are more than happy to help you in preparing an ROI analysis for your company to justify the purchase of a LIMS. Why not contact us? We can provide you with plenty of ideas!
