Home > ITIL, Point of View > How much money did you save?

How much money did you save?

I am not sure ITIL is “only” about saving money… most consultants would claim that there are huge investment savings over a period of time…

Having a process implemented in your IT environment should also

  • Felicitate the Operations
  • Bring business and IT closer
  • Increase ability to translate requirements and business goals into actionable IT plans
  • Ease out the pain areas in execution of activities
  • Empower business to improve and plan ahead
  • Make the organization people independent and role dependent

and so on…

All of these are not directly tied to any $$$ savings directly, but would ultimately lead to it with time.

There are times when the potential high savings that are projected would not really be achieved… take for instance a business case for upgrading to Windows 7 that I came across… The logic was that Windows 7 loads on an average 5 minutes faster than the other existing Operating Systems on the end-user systems.

Multiply this number to the number of users… lets say a ballpark figure of 1000, which means a saving of 5000 man-minutes everyday… How many $$$s does that save?

Lets assume an hourly rate of about $80 per user which roughly translates into $1.3 per minute… And the total figure of $$$ saved everyday would be about $6666.67 and for a month with 20 working days, the figure would be well over $100,000… Mighty impressive!

But does that really justify upgrading to Windows 7 for the entire organization? In theory, an Emphatic YES! in the real world would I see $100,000 worth of productivity gain every month from an organization of 1000 users? Anybody’s guess!

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Categories: ITIL, Point of View
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