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Summary – Securing an IT budget requires a precise assessment of direct and hidden costs, an evaluation of non-compliance risks (LPD/GDPR) and a prioritization of business objectives to demonstrate ROI and control CAPEX/OPEX spending. The proposal is structured around aligned KPIs (time-to-market reduction, efficiency gains), Good/Better/Best scenarios incorporating three-year TCO and a phased plan of Discovery, MVP and Scale.
Solution: build a quantified business case, present differentiated scenarios and a governance plan to reassure CFO and CEO, ensure measurable deliverables and business impact.
Every IT budget request must be grounded in data-driven figures, a clear risk framework, and a prioritized set of business objectives. Before requesting additional funds, it’s essential to demonstrate how this investment will deliver measurable returns, cut hidden costs, and protect the organization from regulatory sanctions. By ensuring CAPEX and OPEX spending is predictable and by crafting an appropriate financing plan, you reassure the CFO about risk management and the CEO about business impact.
This guide presents a structured method for building a strong business case, centered on diagnosing key challenges, quantifying value, outlining differentiated budget scenarios, and defining a phased roadmap with tailored governance and financing.
Diagnose and Quantify Business Costs and Risks
Unanticipated IT costs undermine organizational profitability and performance. A precise assessment of current losses and compliance risks is crucial to win over the finance team.
Analysis of Direct and Indirect Costs
To establish a reliable diagnosis, start by listing direct IT costs: licensing, maintenance, support, and hosting. To these you must add often underestimated indirect expenses, such as service interruptions, time spent managing incidents, and staff turnover driven by IT team frustration.
For example, a service firm with an in-house support team found that over 30% of its monthly budget was consumed by corrective tasks, leaving no allocation for strategic projects. This drift jeopardized its ability to innovate.
This analysis allows you to accurately quantify current financial efforts and identify potential savings. These figures form the foundation of your argument to the CFO, who values transparency and spending predictability above all.
LPD/GDPR Non-Compliance Risks
In Switzerland, compliance with the Federal Act on Data Protection (LPD) and the GDPR places significant responsibility on organizations and can result in substantial fines. Ongoing attention to data collection, processing, and retention processes is mandatory.
An internal audit may reveal gaps in consent management, archiving, or data transfer procedures. Each non-compliance instance carries the potential for financial penalties, reputational damage, and remediation costs.
Incorporate these risks into your proposal by estimating the average cost of a fine and the expense of corrective measures. This projection strengthens your case by showing that the requested budget also serves to prevent far higher unforeseen expenditures.
Case Study: A Swiss SME Facing Budget Overruns
An industrial SME outside the IT sector experienced a 20% increase in software maintenance costs over two years, with no funding allocated to improvement projects. Support teams spent up to 40% of their time on urgent fixes.
As a result, their ERP update was postponed, exposing the company to security vulnerabilities and GDPR non-compliance. Remediation costs exceeded 120,000 CHF over three months.
This example highlights the importance of quantifying and documenting the incremental rise in hidden costs to illustrate the urgent need for additional budget. It also shows that lack of preventive investment leads to massive, unpredictable corrective expenses.
Quantify Value: KPIs, ROI, and Time-to-Market
Defining clear business and financial indicators legitimizes your budget request. Projecting gains in CHF and time savings speaks the language of the executive team.
Define Strategic KPIs and OKRs
Begin by aligning IT KPIs with the company’s business objectives: reduced time-to-market, improved customer satisfaction, and increased revenue per digital channel. Each KPI must be measurable and tied to a specific goal.
OKRs (Objectives and Key Results) provide a framework to link an ambitious objective with quantifiable key results. For example, an objective like “Accelerate the rollout of new customer features” could have a key result of “Reduce delivery cycle by 30%.”
Clear indicators bolster your credibility with the CFO by showing how IT investments directly support growth and competitiveness priorities.
Estimate Operational Efficiency Gains
For each KPI, project savings in labor hours or CHF. For instance, an automation of approval workflows might cut back-office time by 50%, yielding 20,000 CHF in monthly savings. These estimates must be realistic and based on benchmarks or case studies.
Calculate ROI by comparing investment costs with anticipated annual savings. Present this ratio for each initiative, distinguishing between quick-win projects (ROI under 12 months) and medium/long-term investments.
This approach simplifies the CFO’s decision-making by demonstrating how each franc invested generates measurable returns, thus reducing the perceived risk of the project.
Illustration: A Swiss Service Company
A professional training provider implemented an online registration portal, halving phone inquiries and manual processing. Their KPI “average validation time” dropped from 3 days to 12 hours.
This improvement yielded estimated annual savings of 35,000 CHF in support costs. Finance approved a budget equivalent to six months of these savings for a nine-month project, accelerating budget approval.
This case shows how embedding concrete metrics in your business case accelerates budget approval and builds decision-makers’ confidence in delivering the promised benefits.
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We support companies and organizations in their digital transformation
Develop Good / Better / Best Budget Scenarios
Offering multiple scenarios demonstrates investment flexibility and adaptability to business priorities. Each should include a three-year TCO breakdown in CAPEX and OPEX, plus a sensitivity analysis.
Good Scenario: Minimal CAPEX, Flexible OPEX
The Good scenario focuses on targeted improvements with low CAPEX requirements and gradually increasing OPEX. It favors open-source solutions and hourly-based services to limit initial financial commitment.
The three-year TCO covers acquisition or initial configuration, followed by adjustable support and maintenance fees based on actual usage. This option offers flexibility but may restrict medium-term scalability.
A Good approach is ideal for piloting a use case before committing significant funds. It allows you to validate needs and measure early benefits without exposing the company to high financial risk.
Better Scenario: Balanced CAPEX and OPEX
In this scenario, you allocate moderate CAPEX to secure sustainable, scalable technology components while optimizing OPEX through packaged support contracts. The goal is to reduce variable costs while ensuring functional and technical stability.
The TCO is planned with CAPEX amortized over three years and OPEX optimized via negotiated SLAs and volume commitments. This scenario meets the CFO’s predictability requirements while providing a robust foundation for business growth.
Better is often chosen for projects with defined scope and a business case that justifies a high service level. ROI is calculated based on support cost reduction and accelerated deployment of new features.
Best Scenario: Proactive Investment with Controlled OPEX
The Best scenario entails significant CAPEX investment in a robust open-source platform, combined with a long-term partnership. OPEX is capped through comprehensive service agreements, covering governance, monitoring, and planned upgrades.
The three-year TCO includes modernization, training, and integration costs, offering maximum predictability and limited risk via contract milestones tied to deliverables. A sensitivity analysis illustrates the budget impact of ±10% changes in key assumptions.
Phased Implementation Strategy, Governance, and Financing
A three-phase rollout minimizes risk and delivers tangible results at each stage. Clear governance and tailored financing options ensure stakeholder buy-in and budget predictability.
Discovery Phase: In-Depth Diagnosis and Scoping
The Discovery phase validates business-case assumptions and refines the target architecture. Deliverables include a detailed needs report, preliminary costing, and a current-systems map. Outputs feature a functional scope, mockups, and a tight timeline.
By dedicating 10% of the total budget to this phase, you limit uncertainties and build consensus among business and IT stakeholders. It’s an ideal stage to secure initial executive commitment and funding.
This milestone quickly measures alignment between strategic goals and technical requirements, allowing scope adjustments before moving forward. The CFO recognizes it as a low-risk investment with tangible deliverables.
MVP Phase: Proof-of-Value and Adjustments
The MVP phase delivers a minimum viable product addressing core use cases. Its goal is to prove technical feasibility and business value before committing larger resources. Deliverables include a functional prototype, user feedback, and initial KPI measurements.
This stage consumes about 30% of the overall budget. It provides the proof of concept upon which the main investment decision is based. Measured KPIs feed into the funding case for the next tranche.
Presenting an operational MVP builds confidence with finance and executive teams. Actual ROI can be compared to forecasts, enabling plan adjustments and securing a larger budget for full deployment.
Build a Convincing IT Budget Case
To secure your IT budget, rely on a data-driven diagnosis of costs and risks, define KPIs aligned with strategy, present Good/Better/Best scenarios with a three-year TCO, and follow a phased approach—Discovery, MVP, then Scale. Ensure clear governance (SLAs, SLOs, milestones) and explore suitable financing options (CAPEX, OPEX, leasing, grants).
Our experts are ready to help you structure your business case and win buy-in from IT, finance, and executive teams. Together, we’ll translate your business needs into financial metrics and concrete deliverables, delivering a budget proposal that inspires confidence and ensures measurable business impact.
