Dig.IT and Digital Investment: Build the Business Case First

Start with the Cost of the Process

A production problem may be visible on the shop floor while absent from management reports. Before selecting software, record the actual interruption, rework or repeated data entry. Distinguish a measured loss from an estimate and a possible improvement from a saving that has already been achieved.

A national downtime statistic cannot establish the cost of an hour in your factory. Use the relevant production contribution, labour, recovery costs and contractual effects, while avoiding double counting.

What a Funding Programme Can Change

Dig.IT is a digital-transformation funding instrument associated with the Industrial Development Agency and FENG. Its value to a particular company depends on the rules of the relevant call: eligible applicants, activities, expenditure, assessment criteria, aid basis, implementation dates and settlement obligations.

Check the current call documents from ARP and the European Funds portal. This article does not announce an open call, grant amount, support rate or eligibility decision.

Match the Investment to the Rules

Prepare a budget separating software, development, integration, migration, infrastructure, training and operation. For each item, record whether the call allows it, any limits and the date from which costs may be eligible. Do not infer that hardware, cloud subscriptions or advisory work qualify because another programme funded them.

Check enterprise size, sector, location, financial criteria and aid cumulation for the applicant and any linked enterprises. The applicable de minimis or other state-aid basis must come from the call and current law; a simplified label does not remove these checks.

An Illustrative NPV Model

The following is an invented example for learning the calculation. It is not a QA10 client result, price or Dig.IT funding offer.

Assume an investment costs 1,400,000 PLN at the start. It produces 340,670 PLN of additional net cash benefit at the end of each of three years, after the operating costs included in this model. At a 10% discount rate:

Present value = 340,670/1.1 + 340,670/1.1² + 340,670/1.1³ ≈ 847,196 PLN

NPV without a grant ≈ 847,196 − 1,400,000 = −552,804 PLN

If a hypothetical 700,000 PLN grant were received at the start, the model’s net initial outlay would be 700,000 PLN and NPV would be approximately 147,196 PLN. If reimbursement comes later, discount it at the actual receipt date and account for bridge financing. The assumed grant is not evidence of an available aid rate.

Test lower benefits, delayed implementation, additional maintenance and a scenario with no grant. NPV is only as useful as the assumptions. Time released by staff is capacity, not automatically a cash saving. Include its financial effect in the cash-flow model only where it reduces expenditure or produces additional net cash flows.

See NPV and IRR and activity-based costing for the underlying methods.

Plan the Work and the Evidence

Map the process, establish a baseline, define the software scope and agree how results will be measured. Where appropriate, process analysis can help identify variants and bottlenecks. It requires usable evidence; a technology label does not guarantee that the required logs exist.

Decide which existing systems remain authoritative and assess integration options. Adding a layer around an ERP is an architecture choice, not the definition of Zero Trust. Access verification, least privilege and other security controls need their own design.

Budget for Cash Flow and Operation

A grant award does not remove the need to pay suppliers, meet payment milestones and sustain the result. Check advances versus reimbursement, evidence requirements, procurement rules, changes to the project and the consequences of non-compliance. Retention and durability periods depend on the applicable rules.

Agree who owns the data, maintains the software, trains staff and handles incidents after implementation. Compare total cost and the exit plan, not only the subsidised purchase price.

Where QA10 Fits

AiP is part of Q-Journey, with Express and Platinum options and Lean/Muda consulting in Platinum. Scope and dates are agreed individually. An application after an audit belongs to Q-Journey’s second stage, including without AI. Q-Dev covers separately scoped custom software projects.

Technical scope and process evidence can inform an application, but this does not promise grant preparation, an award, reimbursement or a measured saving. Establish any funding-advisory responsibilities separately with the appropriate specialists.