Ccmg presentation 20 november2013

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  • Welcome and Introduction of selfI come from a traditional hardware supplier and know that customers wasted a lot of money that could have been put to better use. Now I’m in a position that I am saving those very same customers a lot of money.So in saying that I am going to present two cost saving scenario’s to you and show you how to make a shift to achieving more from spending less.
  • Limits business growth due to capital being invested in non-income generating assets;Our profit margins are reducing quickly due to more competitors opening;Customers want to sign shorter contracts;Equipment sitting idle while contracts are trying to be won;On balance sheet equipment is expensive so cost per seat is higher;Most contracts are paid monthly why shouldn’t your expenses be monthly;
  • Call Centres are highly competitive environments so do something different;Staff comes and goes as do contracts;Mix and match your technology to suit the campaign.
  • The suppliers are just providing equipment/kit and not offering a custom solution to suit your needs;Why change what has always been done, not considered other options;You prefer to buy outright so you can hand the equipment down to users or give staff the option to buy;You company is cash positive;You want to do your bit for the community, there are laws around supplying equipment in working order so be careful;You sweat your kit for as long as possible;Ask audience for any other reasons they buy;
  • Tying up capital that could be used in growing the business and marketing;Most contracts are done on a monthly annuity payment stream but spend isn’t;Empty desks cost money;Have to think twice before considering, smaller or shorter contracts;These costs are usually not considered but can be considerable as they add up, hard drives, memory, motherboards etc.;
  • These costs are usually not considered but can be considerable as they add up, hard drives, memory, motherboards etc.;Companies tend to put redundant equipment into a storeroom which takes up space and isn’t eWaste efficient;Focus on what you know best, we can’t all be masters at everything;Get your annuity revenue to match your monthly expenses to win contracts.
  • Cow and milk analogy
  • Would you buy a R3million Ferrari for a 85 year old granny?Would you give a fully loaded M16 to a 5 year old child ?You could but it would be very costly !!!!When these questions are answered honestly, it will become apparent that an organisation’s users can broadly be broken into two categories:- power users and non-power users. The split is generally more than 50% of the organisation’s users are non-power users ie they do not require latest and greatest desktops to perform their work effectively. It is this user that has cost companies millions in expenditure as they get high capacity which the organisation pays for, but hardly utilized and no return on investment is realized on it.Qrent has got a practical, cost effective solution that can save significant amounts by assisting large organisations apply the right technology to the right user/environment.
  • Take a scenario of 1000 users and start profiling the users, it may seem like a long winded process but it’s worth the time and effort;1000 users at R7000 will cost you R7million to replace;Most companies have identified that 20% are power users and 80% non-power users so we will use this calculation for the purpose of this presentation;Average price for power users is around R7000 per user and R4000 for our Qrent model which is a total cost of R4,6million a saving of R2,4million in a replacement cycle – 35% to your bottom line;
  • Innovent :We don’t dictate who you buy from or what you buy;You negotiate as normal with your existing suppliers;Rentals are off balance sheet so your bottom line is healthier;Stronger Cash Flow to grow your business and keep the shareholders happy;We take the hassle out of disposing of your equipment the right way
  • Qrent :We don’t touch your credit line with the banks because we use our own funding;One MRA signed and equipment added and removed as required;Add and remove equipment as you needed;We take away the pains of warranty, insurance and will supply a spare unit per 20 machines on site for quicker turn around time, ensuring your users are always up and running;We have 1000’s of tier one machines so you can standardise on your environment;
  • ConclusionNow what? Talk to us for a free consultation on how we can help you save and be more competitiveOur websites are……Business cards are available after the presentation @......Contact Person: Debbie, email address, mobile and telephone number
  • Ccmg presentation 20 november2013

    1. 1. CCMG Showcase KZN Presented by : Debbie McLarty 20 November 2013
    2. 2. Challenges the Industry is Facing • Lack of capital to expand or start up; • Dwindling Fees and margins from customers; • Shorter contract terms; • Idle capacity of equipment; • High per seat costs; • Mismatch between revenue/fees and costs/investment;
    3. 3. Challenges the Industry is Facing Continued ……… • Highly competitive environment; • High staff turnover; • Technology is getting expensive; • Lack of custom made solutions for the specifics of the call center industry.
    4. 4. What you currently do? • You buy Cash and Brand new, why ? • Lack of custom made solutions from suppliers; • That’s what you have always done; • Subjective personal preference; • Cash/Funding is readily available; • Donate; • Global supplier agreements; • Sweating Strategy.
    5. 5. Disadvantages of Buying Cash • Tying up Capital; • Using cash slows down company growth dramatically; • Mismatch between revenue and cash spent; • Contracts cancelled or suspended, you sit with idle capacity; • Can’t bid on short term campaigns/contracts because of cash outlay;
    6. 6. Disadvantages of Buying Cash Continued …………… • Out of warranty issues, hidden capital costs; • End of term disposal; • Trying to be an IT company, causing downtime and lost income; • Being out priced by competitors because your costs are too high.
    7. 7. Paradigm Shift 1 Cash Purchasing vs Pay for Use
    8. 8. The Right Way : Paradigm Shift 1 Current Challenge Our Solution Tying up of Capital Preserve Capital by paying monthly Mismatch between revenue and spend By paying small amounts monthly you match your income to expenses Funding substantial business, slows down cash flow Have extra cash in the bank to expand, due to monthly rental Cancelled contracts Scale down, hand back equipment Short term contracts, expensive Access equipment from 1 month to 36 months Out of warranty issues and costs Take away hidden costs of spares and labour Out priced by competitors due Small monthly premiums to high setup costs make you more competitive
    9. 9. The Right Way : Paradigm Shift 1 continued Current Challenge Our Solution Trying to be an IT company Maintenance and upkeep headache is ours Disposal of IT assets We remove non-core equipment and take away the headache of eWaste/Carbon footprint disposal Balance Sheet heavy, eroding shareholders wealth Off balance sheet financing Ownership Challenges, focusing on core business Pay-per-Use Cost per seat
    10. 10. Paradigm Shift 2 “Classify your users between Power and Non-Power Users” • What percentage of staff are average/medium and high end users? • Do all your users need the state of the art equipment? • What do the users actually use the machines for on a daily basis? • Do they all need to use the full application suites? • Forgetting your buying and replacement policy, which users need a regular refresh every 3 years? • What informs our buying decision?
    11. 11. Case Study • Discovery Health have 7000+ users and only give 20% of their users Innovent rented equipment, the other 80% use our Qrent offering of refurbished machines. • Discovery have saved in excess of R10million on desktop spend in their first replacement cycle, which continues to grow as they expand. • R51billion worth and they still look at ways of saving. • Extract from Discovery Case Study:
    12. 12. Paradigm Shift 2 “Scenario – Fit for Purpose” • 1000 users @ R7,500 per PC = R7,5million • Profile your users, including applications  20% Power Users @ R7,500 = R1,5million  80% Non-power Users @ R4,000= R3,2million • Total Cost = R4,7million  SAVING = R2,8million – 35% + • 200 Users use Innovent at prime less %  Vendor warranties and support • 800 Users use Qrent at reduced monthly rates  Warranties, insurance, tier one brands, SLA • Rental Calculator
    13. 13. Advantages Innovent – Traditional • Maintain relationships with existing suppliers; • Negotiate your pricing up front; • Off balance sheet; • Stronger Cash Flow • End of term disposal
    14. 14. Advantages Qrent – Alternative • Priced at 50% of traditional rental; • No credit line impact; • Short terms / flexibility;  1 day to 36 months • Scale up and down; • Hassle free : includes warranties, insurance, spare units, SLA’s; • Tier one brands, standardise environment PLUS PLUS PLUS ………………………………….
    15. 15. Contact Details : Johannesburg Cape Town Durban Zimbabwe Zambia Tanzania United Kingdom : +2711 884-8274 Head Office sales@innovent.co.za +2711 791-0645 Qrent JHB info@qrent.co.za : +2721 020-0104 jmeyer@innovent.co.za : +2731 830-5220 dmclarty@innovent.co.za : : : : mlamwe@qrent.co.zw bkambita@qrent.co.zm smohamed@qrent.co.tz dlent@innoventco.uk
    16. 16. Conclusion Contact : Debbie McLarty Land line : 031 830-5220 Cell No: 082 556 6209 Email : dmclarty@innovent.co.za
    17. 17. Thank you Q&A

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