LAWSON STUDY IDENTIFIES DRAMATIC BENEFITS FOR PROFESSIONAL SERVICE FIRMS FROM WEB-BASED SYSTEMS
Added: (Fri Nov 17 2000)
Pressbox (Press Release) -
LONDON, 16 NOVEMBER 2000: A study commissioned by Lawson Software has identified that professional service organisations can gain potentially dramatic financial benefits by implementing self-service software, accessible via the Web at any time from anywhere. It revealed that a large professional services organisation could see productivity increase by around 10% across all of its consultants from improvements in administrative procedures alone, with an additional 12% possible for senior consultants involved in managerial tasks.
When salaries and day rates are taken into account, such productivity gains can translate into very significant benefits for the bottom-line. For the 'average' large management consultancy represented by the study findings, for instance, if such productivity gains are measured in cost savings alone, these would equate to an annual saving of around £25 million. However, if measured in terms of fee-earning potential, the possible benefit is a staggering £88 million per annum.
For the 'average' large engineering consultancy, where salaries are typically lower than in management consultancy, this would equate to annual cost saving of around £10 million. Again, however, if measured in terms of fee-earning potential, the possible benefit is £33 million.
Commenting on the findings, Syed Rizvi, Lawson Software's Director of Service Industries, Europe, says: "As this study has identified, even a relatively small increase in efficiency can lead to large returns for professional service organisations, with big improvements on 'the bottom line'. The reason for this is that any time which consultants save on carrying out administrative and management tasks can instead be used to earn fees. This is in addition to all of the other benefits that implementing business solutions can bring, such as improved decision-making as a result of more accurate, up-to-date information being made available to more people within a firm.
"While, in reality, it is unlikely that all of the productivity gains identified by the study could be translated totally into cost savings or fee-earning business, achieving even a fraction of the potential gains would bring very significant financial advantage to professional service organisations."
The study was conducted by Metrica Research on behalf of Lawson Software during late October/early November, 2000. It involved 30 interviews with ten each of the largest professional service organisations in management consultancy, recruitment (staffing agencies) and engineering consultancy in the UK.
The study determined the average number of fee-earning consultants in a typical firm, broken down by levels of seniority. It also addressed the amount of time that could be saved through the use of fully computerised systems for a variety of administrative and management tasks. This data was then used to calculate productivity gains in terms of cost savings and fee-earning potential.
More details on the study can be obtained free of charge by emailing Andrea Dunderi at firstname.lastname@example.org or by calling Lawson on 020 8560 0826 ext 5328.
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Note to Editors:
Lawson Software is a leading provider of integrated e-business solutions. Lawson offers role-based Self-Evident Applications™ (SEA), transaction engines and e-business extensions powering financial, human resources, supply chain, analytic, enterprise relationship management and e-commerce solutions. IDC states that Lawson is "...primed for the next generation of enterprise-applications utility." According to the Aberdeen Group, "Lawson's commitment to Internet application standards and the delivery of e-business-enabling enterprise applications...should propel it to the forefront of this market space." Headquartered in St. Paul, Minn. and London, Lawson has offices and affiliates serving North and South America, Europe, Asia and Africa. Additional information about Lawson Software is available on the Web at http://www.lawson.com, or by calling +44 (0) 20 8560 0825 in the UK.
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