How CFOs & CIOs are Funding Digital Transformation with OPEX, not CAPEX -CFOs and CIOs, collaborating to drive the accelerated digital transformation necessitated by rapid technology advances and COVID-19, now... -
CFOs and CIOs, collaborating to drive the accelerated digital transformation necessitated by rapid technology advances and COVID-19, now have a smart alternative to traditional financing and management of IT assets that boosts business efficiencies and competitiveness.
This is an expensive undertaking to fund using traditional models. An organisation purchasing just 100 new laptops for staff to work remotely could be looking at a R2 million investment.Either way, the organisation faced further challenges and costs, as 100% ownership also means maintaining, upgrading and eventually disposing of IT assets responsibly, which typically become obsolete in 2 – 3 years.
This leasing option allows CFOs and CIOs to align strategic growth plans with cost-effective, innovative, and flexible IT investment – enabling swift digital transformation through immediate affordable access to the right advanced technology from a range of IT vendors. “The subsidised finance model eliminates the need for expensive CapEx and enables organisations to preserve their working capital and healthy credit lines with banks, and to redirect their cash reserves to core business activities that can help generate profits,” says Zakhe Khuzwayo, co-founder and CFO at InnoVent.