Inflow Analysis Report: Businesses Can Avoid Layoffs by Harvesting Operating Capital from Inflated Technology Budgets

White Paper Demonstrates How Enterprises Can Harvest Millions in Operating Capital by Leveraging Procurement Auctions

SALT LAKE CITY, UT / ACCESSWIRE / January 23, 2024 / AIQ (www.aiq.co), a leading technology-enabled cost management and profitability improvement company backed by Copley Equity Partners, announced the availability of a white paper that details underutilized methods for reducing business expenses and improving profitability. The white paper, "Harvest Capital From Your Technology Budget Instead of Cutting Staff and Budgets," is authored by Inflow Analysis, a research, advisory, and consulting services firm that specializes in strategies for technology-enabling business processes. The white paper is sponsored by AIQ and is available at www.aiq.co/harvest-capital-from-your-technology-budget/.

"Our research has shown that overpaying for technology is common among enterprises," said David Mario Smith, founder and principal analyst for Inflow Analysis. "In today's economic climate, where many businesses are considering slashing headcount and budgets to achieve profit margin, it makes more sense to inspect and correct excess spending, and instead use those monies to improve productivity, invest in new strategies, and increase EBITDA. This report will help businesses understand the dynamics of these procurement initiatives, and understand how activities like reverse auctions can have a profound impact on financial and operational performance."

Key findings in the white paper:

• Enterprise technology categories, such as CRM, cloud and data services, billing, software, network storage, business process outsourcing, telecommunications services, and data center technology, represent anywhere from eight to fifteen percent of revenue for medium and large enterprises - a significant pool of expenses that, if properly reduced, can result in meaningful savings of hundreds of millions of dollars
• Over-spending on enterprise technology is common, with companies paying, on average, 79 percent higher technology costs than market conditions require
• In contrast to layoffs and budget cuts, harvesting operating capital from technology budgets can improve an enterprise's profitability without negatively impacting company culture or operational capacity
• Employing a data-driven process to analyze spend, identify opportunities for savings, and re-bid contracts via reverse auctions can be more than twice as effective for reducing cost than traditional procurement methods like RFPs and one-on-one vendor negotiation

The white paper includes real-world examples of companies using procurement auctions to drive outcomes like cost savings, EBITDA improvement, and enterprise value growth.

Headquartered in Salt Lake City, AIQ provides end-to-end technology vendor assessment, procurement, and negotiation services to large enterprises around the world. Through AIQ's proprietary reverse-auction process, clients have enjoyed supplier savings of 44 percent, on average, since the company's inception 20 years ago. AIQ handles all facets of the procurement process, including vendor identification and vetting, reverse auctions and direct negotiations, finalizing terms and conditions, and executing contracts. AIQ's clients organically increase enterprise value and improve their cash positions without having to reduce headcount, slash budgets, or secure external funding.

"Businesses constantly struggle with the challenge of meeting profitability objectives while also ensuring that they can still maintain talent and other important assets to facilitate growth," said Blake Wetzel, chief executive officer at AIQ. "This white paper is a terrific resource for CIOs, CFOs, and other executives who are in need of innovative ideas to reduce expenditures and exercise greater control of their bottom line."

For more information, download the white paper from www.aiq.co/harvest-capital-from-your-technology-budget/.

About AIQ:

For over 20 years, the AIQ team has helped clients increase their enterprise value and operating cash by materially reducing IT costs. AIQ is backed by Boston-based private equity firm Copley Equity Partners. AIQ specializes in creating industry-leading savings of technology-centric IT services in over a hundred categories, such as cloud, SaaS, digitization, and big data, through the application of its unique tools, expertise, and business processes. Its patented technology and business process platform ensures maximum savings for clients, while measurably improving quality and service levels from IT suppliers. www.aiq.co.

About Copley Equity Partners:

Established in 2012, Copley is a private investment firm with offices in Denver and Boston. Copley partners with growing, lower-middle market private companies. The firm invests out of an evergreen, single-family office capital base and is comfortable in both majority and minority ownership positions. Copley's patient and flexible capital base allows the firm to provide each portfolio company significant support post investment. www.copleyequity.com.

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SOURCE: AIQ