Cost-Benefit Exhibit

Cost  Benefit Webinar

The $5,900 cost-benefit study

Cost  Benefit Models Webinar

The $5,900 cost benefit study

Cost  Benefit Models Webinar

These Cost-Benefit Analysis Models are BOTH discovery tools as well as financial analysis tools. They help you quickly discover and easily analyze scenarios you may not have considered.

We deliver a wide variety of Cost Benefit Models including:

þ   Technology CB models that provide the benefits of new technology.
þ   Re-engineering CB models that provide the benefits of labor cost savings.

Our cost-benefit models include scenario planning models so you can play "what if" and perfect your project benefits on paper before you actually incur any expenses.

Cost Benefit Exhibit 1

Summary: This bank conducted cost benefit analyses using Orient Point's models that achieved an annual operating cost reduction of $14 million at an initial IT cost of $2.1 million.

This National Bank knew it had lost productivity costs and poor service quality problems that were being caused by "follow up" activities because its systems did not provide transaction status information for more than 270 banking products. They could easily determine the costs of adding status functionality to their systems but they could not determine which product systems needed this functionality the most nor quantify the benefits of a proposed project to enhance its transaction systems.

The Operations and IT departments engaged Orient Point Consulting to deliver operating cost models of this follow up work to determine the operating cost improvements (benefits) of enhancing its systems to provide status information. This report was part of their follow up cost model.

Using these cost benefit models, a collaborative team of operations and IT staff were able to determine the specific labor cost benefits that would be earned if transaction status functionality was added to each of its systems. This what if analysis was completed in 3 days using their cost benefit models. They determined that 91% of their follow up labor costs could be eliminated by modifying 11 systems.  This bank's managers determined that they would reduce their follow up activity costs by more than $14 million. The total initial IT costs of the status functionality would be 2.1 million first year and $300,000 annual maintenance thereafter.

They proceeded to implement system enhancements that provided receipts of transaction requests, confirmations of completed transactions, and the status of pending transaction.  They booked operating cost savings of $11 million during the first 12 months and reduced operating expenses by more than $14 million thereafter. They also improved their customer service and saw their customer retention improve, which increased profits.