The departmental spend will be reduced by D365. Current annual spend impacted by D365 ($) These costs once passed to customers result in margin increase. Increase in chargeable revenue by passing on costs to customers (%)Ī D365 identifies areas where costs have been incurred and not passed to customers. The orders can be dealt with on the basis of their profitability rather than passively dealing with every request that arrives. chargeable telephone calls to customersĭ365 gives visibility of order profitability that was not previously available. This is 100% margin as costs were incurred to provide the service in any case, e.g. Identifies areas where invoices (revenues) are raised for services that would otherwise have been missed. General benefitsįor example, a D365 may increase cross and up-sell opportunities. The benefits available for analysis can be divided into suites, and the following list is some of the benefits that may be relevant to calculate on. The benefits can be built from predefined templates. The cost picture of the business case can often be presented based on non-recurring costs and recurring costs per month. The cost of open tender visualizes the cost of delaying the implementation, and how much savings is needed to justify a delay and keeping an open tender process. Internal Rate of Return is the calculated return rate of the investment, and is relevant to compare against other investments (like building a new warehouse etc) “Net Present Value” is the current value of the benefit improvement after 36 months. The high-level end-result of a business case can be presented like this, where ROI are visualized, and as here shown that the payback time is 16,5 months. I’m used to quantify costs and benefits on a granular way to better see the value of a business case, and even to compare different business cases towards each other. Cashflow through an implementation and onwards Key ROI measures Payback, Net Present Value and Internal Rate Of ReturnĤ.

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