For the past several quarters when my colleagues meet with CIO’s and their team, they are confronted with the statement “I don’t have any money!”. Upon further analysis that statement usually means that the client does not have any money for CAPEX (capital expenditures).

However, all companies spend considerable dollars every year on OPEX (operating expenses).

OPEX normally includes maintenance for current hardware & software, staff compensation, utilities, rent, courier services, supplies (tapes,paper etc.)

IPM has  found considerable opportunity to lower OPEX for clients by investing in new technologies. Comparing the status quo cash flows  to the new solution cash flows, adding in a NPV (net present value) and ROI calculation usually results in an an opportunity for the CIO (with or without IPM) to present a legitimate and reasonable proposal to a client’s CFO in his/her language.

This methodology assists us to focus on insuring that a project has a realistic benefit for the client. Summarizing this analysis in a simple to understand spreadsheet allows for valuable discussion and partnership.

It‘s a great time to be in the thick of things and as always “If It’s Virtually Possible, We Do it!!

by Myron Bari – November 8, 2009 (mbari@ipm.com)

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