CCMG Showcase KZN

Presented by : Debbie McLarty20 November 2013

Challenges the Industry is Facing

• Lack of capital to expand or start up;

• Dwindling Fees and margins from customers;

• Shorter contract terms;

• Idle capacity of equipment;

• High per seat costs;

• Mismatch between revenue/fees and costs/investment;

Challenges the Industry is FacingContinued ………

• Highly competitive environment;

• High staff turnover;

• Technology is getting expensive;

• Lack of custom made solutions for the specifics of the call center industry.

What you currently do?

• You buy Cash and Brand new, why ?

• Lack of custom made solutions from suppliers;

• That’s what you have always done;• Subjective personal preference;• Cash/Funding is readily available;• Donate;• Global supplier agreements;• Sweating Strategy.

Disadvantages of Buying Cash

• Tying up Capital;

• Using cash slows down company growth dramatically;

• Mismatch between revenue and cash spent;

• Contracts cancelled or suspended, you sit with idle capacity;

• Can’t bid on short term campaigns/contracts because of cash outlay;

Disadvantages of Buying CashContinued ……………

• Out of warranty issues, hidden capital costs;

• End of term disposal;

• Trying to be an IT company, causing downtime and lost income;

• Being out priced by competitors because your costs are too high.

Paradigm Shift 1

Cash Purchasing vs Pay for Use

The Right Way : Paradigm Shift 1Current Challenge Our Solution

Tying up of Capital Preserve Capital by paying monthly

Mismatch between revenue and spend

By paying small amounts monthly you match your income to expenses

Funding substantial business, slows down cash flow

Have extra cash in the bank to expand, due to monthly rental

Cancelled contracts Scale down, hand back equipment

Short term contracts, expensive

Access equipment from 1 month to 36 months

Out of warranty issues and costs

Take away hidden costs of spares and labour

Out priced by competitors due to high setup costs

Small monthly premiums make you more competitive

The Right Way : Paradigm Shift 1continued

Current Challenge Our Solution

Trying to be an IT company Maintenance and upkeep headache is ours

Disposal of IT assets We remove non-core equipment and take away the headache of eWaste/Carbon footprint disposal

Balance Sheet heavy, eroding shareholders wealth

Off balance sheet financing

Ownership Challenges, focusing on core business

Pay-per-Use Cost per seat

Paradigm Shift 2

“Classify your users between Power and Non-Power Users”

• What percentage of staff are average/medium and high end users?

• Do all your users need the state of the art equipment?

• What do the users actually use the machines for on a daily basis?

• Do they all need to use the full application suites?• Forgetting your buying and replacement policy,

which users need a regular refresh every 3 years?• What informs our buying decision?

Case Study

• Discovery Health have 7000+ users and only give 20% of their users Innovent rented equipment, the other 80% use our Qrent offering of refurbished machines.

• Discovery have saved in excess of R10million on desktop spend in their first replacement cycle, which continues to grow as they expand.

• R51billion worth and they still look at ways of saving.

• Extract from Discovery Case Study:

Paradigm Shift 2

“Scenario – Fit for Purpose”

• 1000 users @ R7,500 per PC = R7,5million• Profile your users, including applications

20% Power Users @ R7,500 = R1,5million 80% Non-power Users @ R4,000= R3,2million

• Total Cost = R4,7million SAVING = R2,8million – 35% +

• 200 Users use Innovent at prime less % Vendor warranties and support

• 800 Users use Qrent at reduced monthly rates Warranties, insurance, tier one brands, SLA

• Rental Calculator

Advantages

Innovent – Traditional

• Maintain relationships with existing suppliers;

• Negotiate your pricing up front;

• Off balance sheet;

• Stronger Cash Flow

• End of term disposal

Advantages

Qrent – Alternative• Priced at 50% of traditional rental;

• No credit line impact;

• Short terms / flexibility; 1 day to 36 months

• Scale up and down;

• Hassle free : includes warranties, insurance, spare units, SLA’s;

• Tier one brands, standardise environmentPLUS PLUS PLUS ………………………………….

Contact Details :

Johannesburg : +2711 884-8274 Head Office sales@innovent.co.za +2711 791-0645 Qrent JHB info@qrent.co.za

Cape Town : +2721 020-0104 jmeyer@innovent.co.za

Durban : +2731 830-5220 dmclarty@innovent.co.za

Zimbabwe : mlamwe@qrent.co.zw Zambia : bkambita@qrent.co.zm Tanzania : smohamed@qrent.co.tz United Kingdom : dlent@innoventco.uk

Conclusion

Contact : Debbie McLartyLand line : 031 830-5220Cell No: 082 556 6209Email : dmclarty@innovent.co.za

Thank you

Q & A