Selling MOM Solutions to Risk Adverse Businesses By Utilizing Performance-based ROI Guarantee and Contracts
The Basic Idea-
Conduct a structured ROI tailored to Key Business Drivers of business in Production Transformation Assessment (PTA) to establish a baseline for Performance-base Contracting (PBC) : a. Quantify Production waste streams, b. Idenfiy Corresponding form and high level requirements of high impact manufacturing operations management (MOM) solutions, c. Tangible defendable return-on-investment (ROI) benefits and calculations, d. Solution Risk Profile and Mitigation Requirements
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PTA Baselines establish Solution Risk Profile for solution provider and customer to make the ultimate Go/NoGo decision on a PBC approach going forward
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If risks are manageable and shared equitably between vendor and end user, the baselines and payment criteria are incorporated in terms and conditions for PBC
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All consulting services, software fees, and implementation services typically carry 30-40% hold back until 50% of ROI is met based on Value-Add Audits with executive status review during plant adoption of MOM solution
