There is an increased scrutiny today on c-suite executives, and with that scrutiny comes a must-have core competency in putting together a convincing business case for any business decision. Why? Because a business case is the communication tool that details the benefits, costs and risk assessment of something.
The business case is intended to help lead to a well-informed decision, and eventually, should translate to a company’s profitability. So, whether that is making a case for IT investment, for adding more employees, or for implementing a collaborative operations software, many times, those kinds of investments are kept on the backburner until a crisis arises.
To get those types of investments moved to the forefront, the key is to convey the current state of where the company is, and show what the future state will look like when the proposed change is implemented. Not only that, but you must prove how it makes financial sense.
Below are the key points that will help you make the best business case for implementing a collaborative operations software.
Step 1: Start With the Intro A collaborative operations software just makes sense. While this is true, and while you might know it is true, the intro of your “business case” must show exactly how modernizing the business process with collaborative operations software can be justified in dollars. Here, you should discuss how the maintenance team plays a critical role in generating cost savings for your company. You will talk about how the maintenance team is a critical element in the effective running of the organization. Then, instead of just showing the features and functions of the collaborative operations software system, you should, instead, talk about the process improvement. Answer the big question: What is the real reasons we need to implement a collaborative operations software?
Step 2: Educate This is the part of your “business case” where you would talk about your current process and educate upper management on the functionality of a collaborative operations software. How can it be utilized? What is the process improvement aspect? How can the system be used to reach your company’s objectives? Focus on the process as a new way of thinking and operating.
Step 3: Optimization A collaborative operations software can help significantly in effectively managing tasks and will help to create a streamlined process. This section of your “business case” is where you can talk about the cost benefits for utilizing a collaborative operations software. Focus on work overtime, downtime, inventory, productivity gains, planning, proactive maintenance and the other potential savings annually that implementing it could have on your maintenance and repair budget.
Step 4: What Happens if collaborative operations software Isn’t Utilized Here, you can discuss the reasons for not moving forward with a collaborative operations software. What will that cost look like in the long run? If upfront cost of implementing a collaborative operations software is the reason for holding off, talk about how much more it will cost the organization in the long run if they choose to forgo it. If the time spent learning a new system, configuring it and training others on adapting to it, is the reason your company is waiting to buy a collaborative operations software, instead, focus on how much time they might save by implementing it. And if they are worried about altering whatever system is in place right now, they need to decide based on data and not on emotion.
Step 5: Summary Lastly, you can further talk about the ROI formula and review all the benefits of implementation. You can show a one-year calculation that includes the costs of the software purchase, training, and support costs etc., but you would also show the value of those costs. Talk about what your expected reduction in maintenance costs will be. Look at reduced asset downtime, which impacts a company’s revenue and how adding a collaborative operations software will maximize an asset’s lifespan. Talk about productivity, labor, and inventory. Look at how much your company has lost due to insufficient inventory or lost work orders.
In closing, it shouldn’t take much to prove that it is worth it to add a collaborative operations software. Many companies that have implemented a collaborative operations software have put ROI’s in the first year anywhere from 25% to 300% (some even 400%) and that can only increase over time. Not only that, but there are so many intangible long-term benefits including greater employee accountability, less tenant turnover, and of course, better communication.