Wednesday, September 14, 2011
What type of benefits do the Alinean ROI / TCO Calculators / Sales Tools typical use to quantify value?
Benefits are calculated across as many dimensions as needed, but are usually grouped into a few different benefit categories:
· Cost avoidance – avoiding the need to purchase certain goods or services as a result of implementing the proposed solution
· Cost savings – the ability to reduce current expenditures on goods or services
· Productivity improvements – the ability to streamline a business process or task, reducing the number of tasks required, time it takes to complete the task, or resource needed
· Revenue benefits – calculated as the net margin from driving additional revenue opportunities, such as increasing the number of transactions or average unit price
· Net Fixed Asset savings – a savings in net fixed assets, including an avoidance of the capital needed to purchase the assets, and the carry cost savings
· Risk avoidance / reduction – the value of avoiding certain business risks, such as avoiding the risks and potential costs of security issues.