Summary
This document is a technical report detailing the OpenBook® methodology used by Allari, Inc. to measure cost compression in enterprise resource planning (ERP) engagements. It outlines the measurement protocol behind the reported compression curve, which indicates a median run-rate reduction of -8% in Year 1, -22% in Year 2, and -30% in Year 3, based on a defined baseline. The report specifies how the baseline is established, what costs are included in the total cost of ownership, and the process for monthly reconciliations. It clarifies that the figures presented are measured medians from actual engagements and are not guarantees or forecasts. The document also discusses the governance and auditability of the methodology, including client access to the ledger and the ability for external auditors to verify the reported figures. Definitions of key terms related to the methodology are provided to ensure clarity and precision in understanding the document's content.
