Saving money
Here is a real life example, where a client produced these figures in his consideration of implementing a videoconferencing project.
The application:
A construction company, with 5 offices spread around the UK.
The main problems:
Directors would meet for Board meetings, both main Board and subsidiary, once a month. This could mean many individuals travelling a number of times per month. Meetings typically took two hours in duration.
The monthly costs of the meetings:
| Direct Costs | |
|---|---|
| Item | Cost |
| Travel to meeting location - petrol costs etc | £300 |
| Subsistence | £125 |
| Indirect Costs | |
|---|---|
| Item | Cost |
| Lost productivity through travel, say £50 per hour per Director | £1,000 |
| Total Cost | £1,425 per meeting |
| Monthly meeting cost | £7,125 |
The Video Conference solution:
It was decided to hold two meetings each quarter by video, the third would be face to face as before, and become a quarterly review. This left the face to face meetings costing £2,375 per month.
| Equipment Costs | |
|---|---|
| Item | Cost |
| Appliance based Video Conferencing solution for medium sized room with plasma screen and ability to share & display full XGA graphics. Price includes support & training. | £50,000 (5 x £10,000) |
| 2Mb SDSL lines - annual cost, albeit non dedicated use | £18,000 |
| Total Equipment Costs | £68,000 |
| Monthly Costs | |
|---|---|
| Item | Cost |
| Depreciation of Capital equipment over 4 years | £1,042 |
| SDSL monthly cost | £1,500 |
| Monthly Costs | £2,542 |
MONTHLY SAVING of £2208 is achieved by replacing 2 out 3 meetings with Video Conferencing meetings. OR, PUT ANOTHER WAY, THE EQUIPMENT PAID FOR ITSELF IN LESS THAN 2 YEARS.
Not only savings... but also the Directors now find that they are able to be more productive.
- Directors have a more beneficial work/life balance.
- Meetings are more action based, more efficient and have a greater amount of decisions made.
- More adhoc meetings take place in addition to action urgent needs rather than waiting for the monthly meeting. This creates competitive advantage.
- The company is more environmentally friendly using less fuel for travelling.
- Directors & employees are happier and less stressed.
AND IT COSTS LESS TO ACHIEVE ALL OF THIS THAN THE ALTERNATIVE SOLUTION - TRAVELLING!
