In order to give the client clear understanding of what benefits he will get after implementation of new solution Radian-QS specialist building an abstract representation (a model) of a financial decision making situation. This mathematical model designed to represent a simplified version of the performance of the new project.
Based on business plans provided by client, we estimate investments required to start the system in production (CAPital EXpenditure, CAPEX), calculate on-going expenses (operational expenditure or OPEX), evaluate income fees from the new project and connected products, and build discounted financial flows.
The prognosis is usually provided for 5 years. As a result client will get financial model adapted to particular business of client and diagram with clear break-even point.
Usually for card processing business as CAPEX we consider hardware equipment, software licenses, buildings. As OPEX we consider implementation costs, further system support, staff expenses.