Note, there are two categories here:

1. Technological change with no purchase of additional equipment. This typically means being able to produce more with the same level of inputs (for example, having workers process paperwork faster, or finding a new way of performing a task that uses fewer labor or material inputs). It typically results in a cost saving to your production process. These should only be cost savings.

Example: Chen's Pipefitters is a family-friendly extrusion company that typically operates during standard 9am to 5pm hours. But, after the flood in their town destroyed the local public school building and a majority of employees requested and adjustment in their time schedules for homeschooling during reconstruction, Chen's accommodated the needs of its employees and switched to second shift operations (3p-12a). As an electricity-intensive company, they soon realized significant savings in electricity as their electric distribution utility charges lower rates during industrial off-peak periods. Over the ten-month period that they altered their operating hours, they estimate they spent $122,000 less on electricity. (Enter as $122,000 savings)

2. Technological change with the purchase of additional equipment. Examples would be finding a new way of performing a task that is enhanced by purchasing additional equipment. You would need to combine the annualized cost of using the equipment (adjusted for any time period other than a single year) and the input it uses or saves and then compare this to the cost of using the input to produce the same level of output as before but without the new equipment.

Example: During the Covid-19 pandemic, SpectrumSupport LLC., a health services firm specializing in autism therapy, was forced to transition to a predominantly telehealth-based service model for most of its clients for 14 months. In this process, they were forced to replace their longstanding paper record keeping process with an electronic records system. The electronic system was hired as a subscription-based service, at $100,000 annually. During this time, SpectrumSupport estimates that it improved record keeping efficiency and saved dozens of hours per technician. They estimate the total record keeping savings over this 14-month period at $24,000. Noting that the cost of the subscription during their recovery was $117,000 ($100k per year at 14 months), their total cost was $93,000 (or $117k-24k). (Enter as $93,000 cost).