About Acme Industries
Acme Industries is a regional Property Management Company with 135 employees, agents and contractors. Acme has been profitable through its entire 15 years of operation, but has recently lost business to smaller, more nimble competitors. To counter this trend, Acme wants to modernize their technology and business processes.
For example, they are equipping their client-facing employees with mobile devices and have procured several new apps that will automate their business processes. They also plan to expand into several new markets and will be hiring new staff to support their growth.
They realize, however, that their current staff is siloed by functional area and does not have the skills to meet their expanded job responsibilities. Also, they are concerned about how they will onboard the new employees needed to support their expansion plans.
As a service industry, Acme’s payroll is their single largest expense item. Acme’s current monthly labor budget (salary plus benefits) is $752,180 per month; or an average of $5,015 per employee per month.
Acme decided to outsource the implementation project to SySworld. But this is up to you; you can do it yourself if desired and reduce or eliminate your professional service fees.
Acme meets with SysWorld, an OptEngage Technology Partner. SysWorld proposes a three year OptEngage subscription plan as the knowledge management platform to support Acme’s modernization strategy. The proposal is quoted for 150 users; to support Acme’s current staff plus their planned new hires.
SysWorld manages the implementation, trains the Acme users and provides support for 12 months. This engagement is priced at a fixed-cost of $19,500.
Acme assigns Carol Jacobs—a senior Business Analyst—as Project Manager. While SysWorld does all the heavy lifting, Carol is responsible for:
- Participating in a fact finding meeting with the SysWorld team.
- Completing several web forms and spreadsheets that provide details of Acme’s product line, marketing practices, software applications, organizational structure and the like.
- Collecting documentation (such as Procedure Manuals, Employee Handbook, and the like) from other Acme employees.
- Downloading an Acme employee census file from their HR system.
- Participating in a training session to learn how to manage the site.
- Customizing the launch communications from templates provided by SySWorld.
- Communicating project status updates to Acme leadership.
SysWorld follows the proprietary OptEngage implementation process and activates the platform on day 45.
Acme commits to a total three year spend of $64,050. This is split between the $19,500 implementation fee plus three subscription payments of $14,850 per year for use of the hosted platform. The annual subscription payment is based on a Per Employee Per Month (PEPM) fee of $8.25 for 150 employees.
When factoring in the $19,500 implementation fee, ABC experiences a net increase in their labor budget of $11.86 over the three year subscription period; with the option to renew the subscription for subsequent years.
The incremental spend of $11.86 per employee per month for the OptEngage subscription represents a negligible increase in Acme’s labor budget of 0.236%; less than a quarter of one percent.
Acme was pleased with both the operational and financial results.
On the operations side, they liked the rapid 45 day implementation and how the platform facilitated their employee on-boarding, cross-training; and increased their employees business knowledge and decision making skills.
Also, their clients report improvements in service; which Acme attributes to the fact that their workforce now has immediate online access to all Acme product, sales, and service information through OptEngage.
For example, they see an increase in up-sells attributable to the fact that their employees are now more knowledgeable about Acme’s product line, and how their products meet client needs.
On the financial side, they are extremely satisfied that they realized these benefits at a fully allocated PEPM cost of only $11.86; less than a quarter of one percent increase to their labor budget.
And when they renew their subscription at the end of the initial three year period, their PEPM will decrease because at renewal they will not incur any implementation charges.