Working on a modular approach to how to calculate ROI, TCO and IRR

If you sell ITIL, itSMF based solutions or any other business solution to organizations, you must have a compelling business justification to convince your potential customer, why they should buy from you. Most companies would tell their customers, whatever they want to hear but they don't have a processes based approach that can justify any new investment at the customers end.

Couple of things from sellers end that should be mandatory are;

1. Find as much as possible about their pain points from financial perspective, i.e.,

• What is it costing you at this time and where would you like to be?
• Why is it costing you so much?

2. How do you translate efficiency to a monetary value?

• If you add so much efficiency to "x" process what will be your cost saving "y"
• Do you what will be your transitional cost "z" to bring about this new change?

3. Do ask what is your operating cost?

This could be IT organization or departmental but asking this question will most certanly help you put a case to sell easily.

4. What is more important to you, cost cutting or efficiency gain and why?

If you want to know more about this topic, please contact me via email or by adding a comment to this blog and I will be in touch with you.

If you want to ocntribute your experience to this discussion, please we all encourage you to do so.