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Opportunity costs / cost savings and why actesy drastically reduces project costs!

General information


Opportunity costs (also alternative costs) refer to the costs of the alternative not chosen. They are a comparative quantity from economics, the basis of which is the handling of scarce resources.


Output-related opportunity costs are referred to as alternative costs or optimal costs. Output-related opportunity costs refer to the output or the output.

Calculation example with actesy and classical interface method:

Cost Types

classical project

actesy project

Project costs CHF

500’000

375’000

Project lead time in months

8

4

Software maintenance costs 20% pa

100’000

75’000

Personnel costs operation/maintenance in % pa

20.00%

20.00%

Personnel costs operation/maintenance pa

100’000

37’500

Costs Useful life 5 years

1'500’000

93’7500

Opportunity costs Advantage

–562’500

Opportunity costs Advantage in %

100%

–37.50%

Advantage Project duration in months

-4

Advantage project duration in %

100%

–50.00%


For a classic project, for example, project costs of CHF 500,000 would arise in 6 months, i.e. CHF 83,333 per month.


If another 20% for personnel costs and 20% for software maintenance are extrapolated per year for classic projects over the utilisation period of 5 years, opportunity costs of 200,000 CHF arise.


Over a period of 5 years, this makes the opportunity of the project costs plus 5 years X opportunity follow-up costs, i.e. a total of 1,500,000 CHF over the useful life.


For an alternative investment in actesy this means:

For example, the project with actesy will be 75% of the costs and 50% of the lifetime.


In the case of the project mentioned above, this is 375'000 CHF for a project duration of 4 months, i.e. 93'750 CHF per month.


"actesy reduces the project costs by at least 30% and times by 50% compared to classic comparative projects ".


If 10% for personnel costs (lower, because automated testing and documentation is integrated) and 20% for software maintenance per year are extrapolated for actesy projects over the period of use, opportunity follow-up costs of 112,500 CHF arise.

Over a period of 5 years, this makes the investment costs plus 5 years X the follow-up costs = a total of 937,500 CHF over the useful life.


The costs with actesy are therefore 937,500 CHF. The opportunity costs of the classic solution are 1'500'000 CHF, so the investment with actesy results in a cost advantage of 562'500 CHF or 37.5%. This does not include the shorter project duration and the associated smaller risks or the capacity freed up by the shorter duration (also opportunity costs).


The advantages in brief

  • Our clients benefit from short project durations, fast availability and a rapid return on investment.

  • With short project durations, hidden potentials can be exploited more quickly.

  • Short project durations guarantee a much smoother process and trouble-free operation.

  • Due to the much lower complexity, smaller project sprints as well as shorter project durations, the ROI improves sustainably.

  • The times of long, expensive and often inconclusive IT projects are over - what counts today are quickly assessable results with short project durations.

In summary, the following effects can be achieved for the company

  • Lower project costs

  • Better quality and results

  • Shorter project durations and thus smaller risks and faster ROI


Additional cost advantage


An additional cost advantage, as shown by previous projects, is the standardisation of the platform, the data models, the shareable workflows and the integrated APIs. The security of data consistency, data integrity (data proof of origin and provenance) as well as the advantage achieved through automatically provided documentation is a significant cost driver in the environment of more and more legal regulations in all industries, which can therefore also be largely automated.


The information, data and processes that can be called up via actesy are also available at any time for new key technologies, such as AI/AI (artificial intelligence), and can be used without restriction in real time.


See you in the next digital project!


We look forward to hearing from you at info@actesy.com





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