Total Value of Ownership
Total Cost of Ownership (TCO) is a well-known concept when analyzing the full cost of an investment’s entire lifecycle. However, measuring the lifecycle benefits of an IT related investment is much more difficult. With Lawson business software a company’s senior management can easily solve this problem by using a new tool and method – Lawson M3 Opportunity Analyzer.
Opportunity Analyzer™ is the first strategic enterprise performance management tool that enables you to set business performance targets and identify financial and non-financial gains in advance. Quantified results can be seen before committing capital to new business process improvements.
Creating a Value Roadmap
Opportunity Analyzer allows senior management to create a time-phased value roadmap visualizing the expected total value of ownership over time.
The process begins with the board and CEO creating the current strategies and objectives and continues with the building of a model with Opportunity Analyzer depicting the:
- Current situation of revenue drivers, by product and market area;
- Cost drivers by company functions affecting selling, general and administrative costs;
- Working capital drivers, primarily focusing on the inventory tied up in the supply chain.
When using the Opportunity Analyzer expert system, opportunities for business process improvements are identified and quantified, documenting the following:
- Expected profit from the opportunity;
- Improvements in the related KPI over time;
- Best-practices approach that should be implemented;
- Business process activities affected by the change;
- Degree change management effort involved.
::: Opportunity Analyzer
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