Number Crunching

Efficiency

If you run at a baseline of 1, and you change your business to keep with the times and your software is unable to adapt you may drop to an efficiency of 90%. Now, operating at a -10% impact factor over a period of 5 years:

Baseline:

1.0 efficiency ^ 5 years = 1.0 overall productivity.

Post-Change with non-adaptable software:

0.9 efficiency ^ 5 years = 0.59 overall productivity.

Note: over a 5 year period, that’s a HUGE fall in efficiency – over 40% drop 

Now, if your software is able to increase your efficiency by just 10%, over 5 years, you get:

1.1 efficiency ^ 5 years = 1.61 overall productivity

Note: That’s a MASSIVE improvement over 60% increase from baseline and a 273% increase from software that doesn’t fit your business!