At HTWC we recognize that modernization main drivers are of a strategic IT nature, with major financial benefits. Our experience shows, the most successful modernization approaches have included the shifting of IT budget from retaining status quo, to investing in state of the art technologies, designed to achieve competitive advantage. Cumulative causation is the term we refer to, indicating success breeds more success, and so on. Key to this is a plan.
As specialists, we are in a position to provide our clients with ROI forecasts for their modernization roadmap be it in one or many projects, using amortization periods selected by each client.
Our standard ROI Forecast dashboard reflects a number of key performance financial ratios based upon our initial research and analysis of current environments.
We generate monthly cashflows over the chosen amortization period consisting of savings, deducting operational and capital costs.
Internal Rate of Return, ROI (based upon Net Savings NPV) and Payback periods are just some of the metrics obtained. Our clients use this information as part of their planning for future investments in strategic IT projects.
Following is a Sample ROI forecast we conducted for one of our clients, based upon which the decision to Modernize could be taken quickly.
This can be split into several projects over one time period within which a modernization program will be amortized.
The dashboard shows a projected monthly cash flow over a the amortization period selected by the partner. Key ratios like IRR, ROI, and the NPV are calculated, to give a holistic perspective of the project in question.
Additionally, alternatives for applications are compared relatively, so is clearly understood, the benefits of maximizing the use of own, amortized IT assets far outweighs their replacement or recreation.
Like all forecasts, the more accurate the input data we have, the more accurate the forecast. To read more on our Analysis of current systems, please read more on Application OBJECT Mining or our ICON product.