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Unified Communication: Potential Savings and Revenue Gains

December 18, 2018

A unified communications investment creates new efficiencies and avenues for expense reduction.

As a business owner, you’re always monitoring and looking for ways to optimize cash flow. A unified communications subscription model that covers third-party maintenance of your hardware and software can generate a long-term reduction in monthly expenses and the capital expenditures required to maintain your system. That frees cash flow for reinvestment in your core business.

It can also free employees who are now engaged in system maintenance to be redeployed to activities that support increased revenue growth. How can you assess its potential as a savings tool?

  • Assess the ROI. Use a break-even analysis or reimagine what an internal rate of return would be. “What do I have to spend? What’s the up-front cost to acquire an annual recurring savings? That would be reimagining an internal rate of return,” says Jared Siegel, a partner at Delap CPA.
  • Use “if-then” scenarios. What happens if you expand into a new territory or vertical market? What’s the impact if you approve employees’ requests to be allowed to telecommute half-time? “As a business explores its strategic plan, where it is now and where it wants to be, often getting clarity on how to do it requires reimagining technology and communications platforms,” Siegel says. “As business becomes more virtual, the business technology and communications infrastructures need to reflect that.”
  • What’s the impact as you scale? Think, too, about how a communication upgrade might allow your business model to evolve and what impact that might have on the company’s ability to pursue emerging opportunities or access more lucrative markets. “When we’re able to attract new client opportunities from larger, more expensive markets, the cost of conducting business is less and our ability to preserve margins is significantly better,” Siegel says. “Technology and communication platforms that are virtual allow you to access markets that would otherwise be difficult and inefficient to access.”

Once you’ve completed your calculations, you should have a sense of the extent to which this investment creates new efficiencies and avenues for expense reduction. If the investment provides a recurring annual benefit to the business, that should materialize eventually on the bottom line.

Read the Unified Communications: Making the Business Case guide to learn more about how to assess the ROI of UC and its potential savings for your business.

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