Years ago, a large part of the sales cycle of a technological solution was dedicated to validating its quality and technical feasibility. Today, the decision to implement a given technological solution is mainly a business decision.
As Francesc Pérez, Chief Revenue Officer of Latinia, explains “as technology solution providers, we can no longer limit ourselves to merely promoting the functional and technical benefits of our products, we must also guide and help our clients to measure the economic impact of their decision to implement our products, whether in terms of generating business, cost reduction, operational efficiency, return on investment, among others”.
This exercise is not only carried out when deciding to purchase a new product, but is also used to measure the economic impact of a technological solution already in operation, to measure its degree of use, and to determine whether its potential is being fully exploited to optimize impact on the business.
As a provider of real-time decision-making and communication software for banking, Latinia didn’t want to abandon its customers when faced with this challenge. According to Francesc Pérez, “our mission is to help our clients exploit our products in the most efficient way possible and in order to do so, we must be able to measure their performance in business terms. We don’t just solve technical problems: we advise our customers on how to exploit our products in the most efficient way to maximize their impact”.
What can I get from Latinia’s products?
“How much will Latinia cost me? What impact would it have on my business? What benefits would it generate for the bank? How and when would that happen? Are we taking advantage of all the product’s functionalities and extracting the maximum benefit? What impact would it have in terms of business to use the product differently? Our clients ask themselves these questions, and as a company we have the capacity to answer them based on a business case methodology, the result of years of experience”, explains Juliana Ortiz, Head of Customer Success at Latinia.
The preparation of a business case is not solely an accounting exercise, but rather the goal is to obtain a report of high strategic value, which measures the return on investment (ROI) made and facilitates decision making. “Based on this objective, in Latinia we have a tool to develop business cases on our products and services. This tool unites the experience we’ve gained over more than 20 years working with clients in 14 countries as software providers for the financial sector, so its use is not only a theoretical exercise, but yields a realistic response regarding the economic impact of the decision to purchase Latinia’s products,” explains Francesc Pérez.
Decisions based on data, not assumptions
The tool created by Latinia is based on approximately 100 variables that, through close collaboration between the bank and Latinia, automatically generates the business case as data is entered into the system. “With our business case, the bank will find out three fundamental pieces of information about our products: the profit generated, the ROI and how long it will take to recover invested capital or payback,” explains Juliana Ortiz. “In many cases, the client themselves are not clear on how to prepare a business case, or have a lot of difficulty in finding a certain piece of information that is key to its preparation. This tool provides a proven methodology that guides the client in its preparation, based on business intelligence gathered over many years from many clients, which allows for conclusive results, speeding up the decision-making process,” she adds.
The tool is helping Latinia’s clients to measure the economic impact of the decision to migrate Latinia’s products from their current on-premises infrastructure, to a cloud infrastructure. The results are clear. In this respect, Juliana Ortiz explains that “in one of our business cases, very significant data related to the efficiency of the new platform was reported: a 30% reduction in the costs associated with the infrastructure, an 80% reduction in product update times, as well as an increase in the quality of service to end customers by reducing processing time by 20%”.
“Through this tool, Latinia offers our clients all of our business experience and specialized knowledge, which allows us to go beyond the traditional client-technical supplier relationship. In this way, we provide advice aimed at applying best practices, and promoting the efficient use of our products to maximize the impact on our clients’ businesses,” concludes Francesc Pérez.