In Part 1 we talked about the real value of a Viewer License for ReportFYI and specifically about the value components and how they can be broken down into three categories. In part two, we are going to look at a practical example of the true value of a Viewer License.
While the unit cost of a Viewer License is quite reasonable, we are going to walk you through the what the intrinsic value of a Viewer License could be to an organization investing in one additional license – using a real-life quantitative example.
A Brake Manufacturer produces financial reporting using Microsoft Excel. Consolidation is manual and time consuming, and distribution can take anywhere from 4-6 weeks after a monthly close. Excel reporting is at the account balance level. The South Carolina Central Manufacturing Director notes her Fleet Vehicle Costs are 40% over budget for October. No other supporting or accessible information is available.
- Time spent by Fleet Operations Director (and her team) trying to frame underlying cause = 3 hours.
- 4 detailed emails sent to Accounting and Finance = 2 hours.
- Time spent reading & researching by Accounting = 2 hours.
- Scan and email with comments explaining the issue between Accounting and Fleet Director + her staff = 5 hours.
- Total time spent on single reporting issue = 12 hours.
Let us assume that the average fully loaded cost per hour between Accounting and Director = $85 x 12 hours = $1,020 to resolve and answer questions on a single issue.
Assume that a Cost Center owner has 6 spend (or revenue) issues per year of a similar complexity = $6,120.
Now…. Let us assume that the average annual cost of a single Viewer License for Report FYI is (depending on volume and cloud) $100.
Let us think about the ROI on a single license given this example. While the 12 hours likely will not disappear, for the sake of this discussion let us reduce it to two hours to be consistent. So, the positive cash flow is (10 hours x $85 per hour) = $850 hard savings x 6 questions a year = $5,100.
That is a 5,000% ROI on the $100 investment of a single Viewer License in a year. Said another way – 1.02-week payback period. This ROI example is only the operational efficiencies gained via using a self-service Viewer License. It does not even include the more intangible, but VERY REAL soft savings discussed above. Inclusion of the savings from avoiding bad spending outcomes and achieving competitive advantage via fast, transparent, self-serviced reporting can bring this ROI to the moon.
For more information on how your organization can gain a competitive advantage through robust financial reporting software that can scale, contact FYIsoft and line up a Demo and soon you might be getting a 5,000% return on your $100 investment of a single viewer license in a year.