Why must we double our workforce for the virtual platform to make sense?

Question

We are going to have the break-even point with 1000 employees, and with more employees the virtual platform would already make sense in my opinion. What do I miss?

Answer 1

Thanks for the questions! Happy to clarify.

Basically, they now have only 500 employees. So for the digital platform to make sense financially (break even) they would need at least 1000 employees (so double the workforce).

When doing the interpretation, it’s also useful to comment on the fact that this is just the financial criteria, but the client should take other things into account as well. For instance, even though it might not sense to upgrade to the digital solution with less than 1k employees, they might still choose to do that to be consistent with their digital-oriented brand.

Hope this helps and don’t hesitate to reach out if you have follow up questions.

Answer 2

Workers required to breakeven: 1000

Current workforce: 500

1000 / 500 = 2x current workforce.

I believe you missed this detail in the initial prompt.

Answer 3

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