Business Impact Estimator

This function calculates the Business Impact (BI Estimator) based on the following components:

• Cost Reduction

• Revenue Generation

• Risk Avoidance

Input Fields in the User Interface

Below are the input fields in the BI Estimator interface, along with their units and timeframes:

1. Cost Reduction Driver

• Required Resources for this Task [Units]: Number of personnel required to perform the task (Mandatory field).

• Average Annual Salary [USD/Year]: The average annual salary of employees.

• Time Spent on this Task [% - Daily]: The percentage of daily time spent on completing the task (%0 - %100).

• Cost of Other Resources [USD]: Cost of alternative resources.

• Time Saved by Product [% - Daily]: The percentage of daily time savings provided by the product (%0 - %100).

2. Revenue Generation

• Average Annual Revenue/Turnover [USD/Year]: The total annual revenue of the company.

• Revenue Increases [% - Annual]: The percentage increase in revenue due to the product (%0 - %999).

• Revenue Saved [% - Annual]: The percentage of revenue saved by preventing losses (%0 - %100).

3. Risk Avoidance

• Average Annual Revenue/Turnover [USD/Year]: The total annual revenue of the company.

• Lost Revenue Avoided [% - Annual]: The percentage of lost revenue prevented by the product (%0 - %100).

• Fines Avoided [USD]: The amount of fines avoided due to the product.

Output Parameters and Calculations

The BI Estimator calculates key financial impact metrics based on the provided inputs. The results include:

Cost Reduction Calculation

• Total Cost Reduction (USD): This value represents the total savings achieved through resource efficiency improvements and cost reductions.

Total Cost Reduction = (Required Resources × Average Annual Salary × (Time Spent on Task (Daily) / 100) × (Time Saved by Product (Daily) / 100)) + Cost of Other Resources

• Total Estimated Time Saved (Hours): This value quantifies the expected reduction in labor hours due to process optimization.

Total Estimated Time Saved = Required Resources × Time Spent on Task (Daily) × (Time Saved by Product (Daily) / 100)

Revenue Generation Calculation

• Total Revenue Generation (USD): The additional revenue gained from productivity improvements and revenue retention strategies.

Total Revenue Generation = Average Annual Revenue × ((Revenue Increases (Annual) / 100) + (Revenue Saved (Annual) / 100))

Risk Avoidance Calculation

• Total Risk Avoidance (USD): The estimated financial protection derived from avoiding lost revenue and penalties.

Total Risk Avoidance = (Average Annual Revenue × (Lost Revenue Avoided (Annual) / 100)) + Fines Avoided

• Lost Revenue Avoided (USD): The specific portion of risk avoidance attributed to preventing revenue loss.

Lost Revenue Avoided = Average Annual Revenue × (Lost Revenue Avoided (Annual) / 100)

Total Savings Calculation

• Total Estimated Savings (USD): The overall financial impact, summing up cost reductions, revenue generation, and risk avoidance.

Total Estimated Savings = Total Cost Reduction + Total Revenue Generation + Total Risk Avoidance

Summary

This function calculates the total business impact (BI Estimator) based on Cost Reduction, Revenue Generation, and Risk Avoidance.

• Cost Reduction: Improves workforce and resource efficiency.

• Revenue Generation: Strengthens the organization by creating new revenue opportunities and preventing losses.

• Risk Avoidance: Protects the organization by avoiding penalties and reducing financial losses.

As a result of these calculations, the Total Estimated Savings value represents the organization's total potential financial benefit.