Although we may prefer it otherwise, we live in interesting times. It’s probably fair to say we’ve heard our fair share of clichéd phrases in the past year. Whether we’re adapting to the “new normal” or finding “new ways of working”, UK businesses have seen an acceleration in their digital transformation programs.
Credit is due to the large number of organisations that reacted quickly to the exponential rise in demand for connectivity and collaboration solutions that would enable a remote workforce. As we settle in and get a clearer picture of the longer-term implications of this workplace revolution, short-term fixes will need to be secured and made permanent.
IT spending has remained stagnant in recent years. The increase in unpredictability brought about by the pandemic is likely to see these finite budgets stretched even thinner. So, at a time when there is obvious reticence to invest large amounts of capital, how can businesses effectively source the technologies that will deliver much needed agility and business continuity?
In partnership with our vendors and supply chain, Datrix have been working on a range of finance models that allow our customers to gain rapid access to transformative technologies. For years now, we have offered a flexible approach to project funding that allows customers to accelerate the introduction of new technologies and reduce the time to see value on their investment.
Here’s one example: Our client, a UK local government organisation, faced an all-too-common dilemma. Against a backdrop of evolving compliance obligations and an increasingly demanding user base, its existing network infrastructure was struggling to cope. Budget restrictions further complicated matters, with little or no capital expenditure available. Balancing the needs of the community with financial reality was delaying the rollout of any new technology, impacting on both operational efficiency and user experience.
The answer was the introduction of a subscription model for networking. This allowed the local authority to roll out an upgrade to its network infrastructure across all existing bricks-and-mortar premises. Not only did this deliver an immediate operational and service delivery improvement to every department, but it also allowed them to meet their new regulatory requirements.
Importantly, the local authority did not need to rely on traditionally allocated CapEx budgets, which fell short of the investment required, but used OpEx funding by offsetting against identifiable operating cost savings.
Network subscription enabled the local authority to purchase all the equipment upfront, without waiting for future budget releases. The hardware and service wraparound were bundled together into a single, predictable monthly payment. The subscription model also allows the local authority to manage future technology upgrades without the risk and penalties associated with other finance options. We even offered a deferred start, which allowed the technology to be installed before subscription payments started.
In our experience, the key to securing a flexible finance option is to get early buy-in from your finance department. Engagement with stakeholders across the organisation will not only pave the way for a successful deployment, but also ensure the financial model suits the needs of the business. Aligning the financial and technological objectives of the business is a clear way to build a rock-solid business case for digital transformation and will provide the much-needed agility and resilience necessary to negotiate these interesting times.
If you need help building a business case for your next technology investment, or would like to discuss our range of flexible financing options, call now on +44 (0)20 7749 0800 or email firstname.lastname@example.org.