Verdantix has a simple summary of the NPV of carbon management software implementation (see below), indicating a payback period of just under 1 year. Considering the immense challenges that organizations faced when implementing similar types of enterprise-wide software systems in the past, it’s difficult to say how believable these figures are. A few questions that come to mind include:
- How were the time-savings figures computed? What do they include? What “baseline” times were used?
- How were the implementation cost figures computed? What do they include (software, customization, training, tying to existing data flows, inputting baseline figures existing in baseline systems like Excel, maintenance, etc.??).
- What are the confidence intervals of these numbers? What reasonable factors may drive them higher or lower? What is the sensitivity of these figures to modeling assumptions?
- What risk factors were or were not included?
- Do costs and savings disappear after 2012?