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Targus Consulting
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Report “Targus Consulting”
Incremental AI cost: £954,000.00 per year. These are two different valuations of the same output gain. Do not add them together. Neither value is a guaranteed minimum or maximum.
Capacity-based value
The cost of the engineer time used for more work. It is not a cash saving.
£7,605,000.00 per year · ROI 697.17%
Revenue-linked value
A hypothetical contribution scenario. It is not a sales forecast.
£238,700.00 per year · ROI -74.98%
Inputs - company
Item | Value | Source |
|---|---|---|
| Revenue, last completed financial year | £93,000,000.00 | Your figure |
| Business-as-usual revenue growth | 0.00% | Illustrative, not validated |
| Incremental contribution margin | 35.00% | Illustrative, not validated |
Inputs - workforce
Item | Value | Source |
|---|---|---|
| Engineering FTE (annual average) | 3,000 | Your figure |
| Licensed seats (annual average) | 2,100 | — |
Inputs - AI tool costs
Item | Value | Source |
|---|---|---|
| Engineers with a paid seat | 70.00% | Illustrative, not validated |
| Seat price per month | £25.00 | Illustrative, not validated |
| Extra usage per active engineer per month | £15.00 | Illustrative, not validated |
| Implementation, training and governance (year one) | £0.00 | Illustrative, not validated |
Inputs - productivity and adoption
Item | Value | Source |
|---|---|---|
| Engineering work eligible for AI | 50.00% | Illustrative, not validated |
| Net time saved on eligible work | 20.00% | Illustrative, not validated |
| Active engineers (adoption) | 60.00% | Illustrative, not validated |
| Released time used for extra output (redeployment) | 50.00% | Illustrative, not validated |
Inputs - commercial response
Item | Value | Source |
|---|---|---|
| Engineering commercial response | 40.00% | Illustrative, not validated |
| Commercial diffusion loss | 45.00% | Illustrative, not validated |
| Downside commercial transmission | 100.00% | Illustrative, not validated |
Workforce cohorts
Location | Seniority | FTE | Fully loaded cost (original currency) | FX rate | Rate date | FX source | Loaded cost (GBP) | Capacity benefit |
|---|---|---|---|---|---|---|---|---|
| UK | junior | 600 | £52,000.00 | 1 | — | reporting currency (no conversion) | £52,000.00 | £936,000.00 |
| UK | mid | 1,500 | £78,000.00 | 1 | — | reporting currency (no conversion) | £78,000.00 | £3,510,000.00 |
| UK | senior | 900 | £117,000.00 | 1 | — | reporting currency (no conversion) | £117,000.00 | £3,159,000.00 |
Incremental annual AI cost
Item | Value |
|---|---|
| Licences | £630,000.00 |
| Additional usage | £324,000.00 |
| Implementation, training and governanceExcluded (set to 0) - not a claim that deployment is free | £0.00 |
| Total incremental AI cost | £954,000.00 |
Productivity chain
Item | Value |
|---|---|
| Active engineers (annual average) | 1,800 |
| Released time per active engineer | 10.0000% |
| Theoretical output uplift per active engineer | 11.1111% |
| Released baseline time, whole workforce | 6.0000% |
| Realised workforce output uplift | 3.3333% |
| Adverse output change (stress channel) | 0.0000% |
Capacity-based value
Item | Value |
|---|---|
| Capacity benefit (cost-equivalent of redeployed time)Not a cash or payroll saving | £7,605,000.00 |
| Net value after AI cost | £6,651,000.00 |
| Capacity economic ROI | 697.17% |
| Benefit / cost | 7.97× |
Revenue-linked contribution value (scenario)
Item | Value |
|---|---|
| Forecast BAU revenue (no AI) | £93,000,000.00 |
| Incremental revenue scenarioScenario, not a sales forecast | £682,000.00 |
| Incremental contribution benefit | £238,700.00 |
| Net value after AI cost | -£715,300.00 |
| Commercial scenario ROI | -74.98% |
| Benefit / cost | 0.25× |
| Effective commercial response e × (1 − d) | 22.0000% |
Diagnostics (calculated by the model, not audited)
Item | Value |
|---|---|
| Engineering-addressable contribution per FTE | £4,340.00 |
| BAU revenue at which the two valuations are equalNeither valuation is a fixed minimum or maximum | £2,962,987,012.99 |
Sensitivity - net time saved on eligible work ±10 points
Scenario | Shift | Capacity benefit | Capacity ROI | Commercial benefit | Commercial ROI |
|---|---|---|---|---|---|
| Conservative | -10% | £3,802,500.00 | 298.58% | £113,068.42 | -88.15% |
| Base | 0% | £7,605,000.00 | 697.17% | £238,700.00 | -74.98% |
| Optimistic | 10% | £11,407,500.00 | 1,095.75% | £379,111.76 | -60.26% |
Reproducibility
Reproduced exactly by the current engine (0.1.3). Input hash f207dcdc6823e1b1…, output hash 71577c11b4238e9d….
- Capacity-based and revenue-linked values are two alternative valuations of the same output gain. Never add them.
- Neither valuation is a guaranteed minimum or maximum; which one is higher depends on the inputs.
- Capacity value is the cost-equivalent of redeployed engineer time, not a payroll or cash saving.
- Revenue-linked value is a hypothetical scenario based on stated assumptions, not a causal sales forecast.
- Illustrative estimate - not an observed financial result until supported by evidence.
- Dodone Model v1 is a controlled draft for independent methodological audit; it has not been audited.
- One 12-month period; a new AI tool compared with no tool. Not valid for replacing an existing AI tool.