1. Injecting a New Lease of Life into Your System David Mitton Sales Manager Sage Finance

2. Agenda IT Investment The return Constraints How can we help?

3. IT Investment

4. What Return? “The organisations we spoke to are evenly split over whether they formally measure the return on investment (ROI) from their enterprise applications: 44% do so, the same proportion (44%) do not, and 12% are unsure what they do about this”. Source - PMP Research

5. Why Invest?

6. Return on Investment - Example Investment Objective: To reduce debtor days by 10% for a customer of £10M T/O and >200 customers, assuming ADD of 50. Solution: Credit Control enhancements providing; –Enhanced Reporting –Integrated promised dates –Instant query management Return: minimum of £10,000 return to the business Cost: £12,000

7. Constraints

8. How can we help? We already are! –£2,000,000 plus of existing lease rentals –£ 500,000 of outstanding systems change New Initiatives New Projects

9. ROI - The non cash alternative –10% reduction in debtor days –Return £10,000 per annum –Capital outlay £12,000 –Return in 15 months Alternatively –Enhanced credit control solution= £420 per month –Monthly return on investment= £833 per month –ROI is £833 + tax allowance (22% of fee £92)= 220%

10. New Initiatives Version upgrades Additional modules and projects Annual/multi-year maintenance Services Hardware upgrades Operating systems Databases

11. Highlights - Lease Rental All inclusive agreement –100% software –3-5 years maintenance –services –hardware Financial –no depreciating assets on balance sheet –preservation of capital expenditure –tax advantages –pay as you use Systems Change –flexibility –control over spend –protect cashflow

12. Summary Investment is required –Operational efficiency –Migration New Sage products in line with market demands –Internet/e-commerce –Customer focus Cost constraints can be managed Customer focused initiatives to be launched

13. THANK YOU Jim Wigmore