General discussion

Locked

A Proposal That Will Save 90,000$

By HimaTech ·
The organization is going to buy a printing system that will cost about 90,000$. I did a project using Perl and Linux that replaces this printing system. How to propose my project the right way? in other words how to translate the proposal to a big bonus?

This conversation is currently closed to new comments.

10 total posts (Page 1 of 1)  
| Thread display: Collapse - | Expand +

All Comments

Collapse -

Cost comparison and layout

by gralfus In reply to A Proposal That Will Save ...

You need to draft a proposal to your management. If you have never done this before, you will want to ask for help from your immediate manager. Most large companies expect a certain format (executive summary, index, breakdown of ideas and equipment and costs, summary and expected outcome).

You need to show the actual costs for equipment, coding, system architecture, robustness, and system support. You will also need to demonstrate that your system works. Often, companies would rather go with a vendor simply because they can pass liability off to the vendor when things go awry.

Selling a system to a company isn't as easy as coding a program. There is a lot more involved. If you can sell it to them, you will have learned a valuable skill.

Collapse -

by waidz176 In reply to A Proposal That Will Save ...

You have to sell the system to them by :
- Addressing how your system satisfies the basic need (in this case - printing.
- How cost effective the system is.
- Provide detailed comparitive documentation on how your sytsem and the $90k one compares - feature for feature.
- Document the benefits of using your system.
- Document a support strategy for the system. How will you support the system. Document a support document in terms of functional specifications, technical specifications, known issues, work arounds, turn around time on software enhancement etc

By the way - The company probably now owns that software that you have developed and are probably under no obligation to give you a cent (unless they are big on Recognition of staff).
You would need to be direct and tell them that you would appreciate a raise and bonus for the $$$ you haev saved the company.

NB : If you are a wild risk taker - you could sell your software if it compares that greatly to the $90k system and make a huge packet on Licencing etc....Just an idea :) Good luck.

Collapse -

That's a tad scary

by Prefbid II In reply to

You make it sound like a huge, scary ordeal. Remember we are only talking $90K. That may sound like a lot, but you don't want to spend $60K proving that you can beat a $90K solution.

My suggestion is that you sell your idea to management one layer at a time. Often it is the hidden costs of a product that will undo a proposal. Identifying those hidden costs takes a certain amount of experience. Each layer of management will be good at adding a few more pieces to the puzzle. Your proposal will look better as it goes up the chain.

As for a bonus -- don't hold your breath. I've saved companies more than $500,000 in one afternoon and did not get much more than an "appreciative nod" from the CFO (well there may have been a grunt in it too) **(Yes, Mike-- I still remember)**. However, there are ways to turn that event into future dollars that have nothing to do with a direct bonus. The real benefit is that you get to put those experiences on your resume. So, once you get your idea accepted, make sure you keep the final statistics that you compiled. Example: "Proposed enterprise printing solution that saved the company $42,000 on a $90K proposal".

Collapse -

$$$

by waidz176 In reply to A Proposal That Will Save ...

You have to sell the system to them by :
- Addressing how your system satisfies the basic need (in this case - printing.
- How cost effective the system is.
- Provide detailed comparitive documentation on how your sytsem and the $90k one compares - feature for feature.
- Document the benefits of using your system.
- Document a support strategy for the system. How will you support the system. Document a support document in terms of functional specifications, technical specifications, known issues, work arounds, turn around time on software enhancement etc

By the way - The company probably now owns that software that you have developed and are probably under no obligation to give you a cent (unless they are big on Recognition of staff).
You would need to be direct and tell them that you would appreciate a raise and bonus for the $$$ you haev saved the company.

NB : If you are a wild risk taker - you could sell your software if it compares that greatly to the $90k system and make a huge packet on Licencing etc....Just an idea :) Good luck.

Collapse -

It is not just about purchase cost ....

by mrTibbs In reply to A Proposal That Will Save ...

Your solution must make management comfortable: This means addressing issues like 'support', 'warranty' and 'maintenance'.
Managers like paying for things, to an extent! It makes them feel comfortable because 'they have paid x for it, so it must be worth it!'
Can your proposed solution be packaged to include comparable support, maintenance and warranty? If this meant getting a 3rd party to support your idea for a suitable price management may be more comfortable paying for a 'vendor supported solution' that costs 20,000 rather than trusting an in-house project.
Also remember that your time and energy has a cost so this should be factored in to any proposal.

Collapse -

Will it really save $90k?

by Emanon KM In reply to A Proposal That Will Save ...

ROI & TCO analysis is the answer. Know what your system costs from end-to-end vs. their system.

While their solution costs $90k, yours isn't really "free". The company pays for you to work there - the assumption being that part of what they pay for your talents went for time spent developing the solution. Do an analysis of the time you took to create, plus what it might cost to implement (server space, installation effort, support costs, etc.) Consider also, ongoing support and maintenance costs - are they included in the $90k, but require more expense/salary under your plan? Compare all this to the $90k and present it to your boss.

One important note - if your proposal isn't accepted, don't bad-mouth the selected solution...it will only reflect poorly on you.

Collapse -

Don't forget the add-ons

by alexp023 In reply to A Proposal That Will Save ...

The Printing Solution software may cost $90K, but don't forget there may also be a yearly maintenance cost factor.

Just another little piece of the puzzle.

Good Luck !!!

Collapse -

Future support

by matsonl In reply to A Proposal That Will Save ...

The support issue cannot be overstated. A reputable vendor will usually offer a service agreement. Management needs to have a certain amount of reliability and continuity built into any system or product.

In order for your custom solution to even be considered, you have to prove beyond a shadow of doubt that your system could be seemlessly handed off to another person.

If you are a relatively young person, you may only be with this company for a few years. Try not to focus too much on a bonus. Make sure your legacy is something you can be proud of and will earn you a glowing future reference.

good luck

Collapse -

This works

by caliban In reply to A Proposal That Will Save ...

1) Bring your resume up to date.
2) Write up your proposal "as if" it is white paper. Include a one-page-or-less Executive Overview section that emphasizes the business opportunity of your proposal (ex: expected return on having the $90K added back into bottom line).
3) DO NOT attack the other proposal -- simply identify its weaknesses and show them as strengths in your system; identify its strengths and emphasize the same strengths in your system.
4) It is nice if you can include a "working model".
5) Include a summary section, and in it ASK FOR THE SALE -- even if you already 'did that' (as you ought) in the Executive Overview.
6) The most important parts (a, and b, following): (a) Identify who is pushing the present proposal and decide if you want to categorize yourself as that person's or group's opponent. (b)Go to your boss, or his boss (if appropriate) and ASK FOR A RAISE. When challenged to justify your request, do so AND include your proposal.

Collapse -

Buy versus Build

by JamesRL In reply to A Proposal That Will Save ...

Having written a lot of proposals in my time, I do know that many companies take a long term strategy on buying rather than building solutions.

This is because if they buy from a reputable company, there is a good chance that they will be able to get support when they need it, and to a certain extent if we are talking interoperability, it is less risky to go with a big vendor who has similar clients.

So if you are going to propose to build instead of buy, you have to overcome some of that suggestion of risk.

One of the risks is that you build something, then move on to another job or another company and something goes wrong. What you have to do to overcome that is demonstrate that you will thoroughly document your solution, do thorough testing, and provide well documented source code in case of an issue popping up. You have to show that you aren't as risky as they might assume.

In terms of the bonus - I wouldn't hold my breath - I have saved many companies a great deal of money, but rarely got more than a pat on the back. At a certain level its expected.

James

Back to IT Employment Forum
10 total posts (Page 1 of 1)  

Related Discussions

Related Forums