Developing a Business-Case for Intranet Investment and ... · investments to implement an intranet...

Developing a Business-Case for Intranet Investment and Measuring ROI

Strategic Intranets Summit 19 August 2010 Steve Lapwood [email protected]

Developing a Business Case for Intranet

Is your intranet user-centric? How do you ensure your intranet strategy and development is

linked to employee and organisational performance? Can you say that your intranet and knowledge management is

based on good business practice? Is your intranet able to enhance collaboration? Organisations often struggle with these questions as they attempt to justify further intranet development and investment to senior management and at the same time get employee buy-in. … learn more about the tools that will enable your intranet to truly enhance your organisation’s performance.

Theme of the conference


Using practical examples, we examine how organisations justify investments to implement an intranet or refresh an existing one.

Identifying the problem: Why do we needed to invest? What improvements/benefits will be derived from the investment?

What makes a strong and believable business case?

How do you quantify and measure ROI?

Developing a Business Case for Intranet Investment and Measuring ROI


Do you need a business case for intranet? 5 years ago the answer would probably be “no”

Now? Well, “yes” ….. But….

Question ???


50% of SharePoint implementation had a business case half required financial justification

Most have no management plan on features to be used

25% of organisations have no experience of ECM/DMs

22% provide guidance on content types and classification

15% have retention/disposal policies

“… risking content chaos within SharePoint as well as outside of it”

In a recent AIIM’s study:


What’s changed?

Tighter Credit

Higher RoI

Reduced Capex/Opex

Higher approval

Greater Justification

Delegation Limits

Closer Scrutiny Job

(in) security

Recession

What makes a strong business case?


“Business Value”

Economic Value

Shareholder Value

Customer Value

Managerial Value

Employee Value

Partner Value

Supplier Value

Source: Wikipedia


Market share, revenue, profitability

(New) products & services Speed to market, adoption rate

Profitability, loyalty/churn rate

Reduced cost Process improvement, shared services, self service, leverage

investments, upgrade/refresh

Intangible benefits Satisfaction, market perception, referrals

Perceived “business value” for Management


The Productivity Curve

Time

Per

form

ance

Initial State

BPI begins

Learning Curve

Don’t quit here!

Improved future state

Source: Karl Wiegers (2005)


PROPOSAL

Business Case or “Proposal”?

Executive summary

Scope and Objectives

Success factors

Approach & Solution

Plan and deliverables

Benefits & Costs

BUSINESS CASE

Executive summary

Scope and Objectives

Success factors

Approach & Solution

Plan, risks and deliverables

Investments, RoI

Implementation Plan

Benefits metrics


Key stakeholders

Sponsor Business “owners”

Customers

Suppliers

Staff

“doubters”

Executives


How many business cases? Strategic/Conceptual/ Inception/Preliminary

Outline/High Level

• Post Requirements

Full/Final

• Post high level design and plan

Phase review

• Initiation, Deployment

Post deployment review

• Pre-BAU


Persuasive descriptions of: What is proposed and why

How it will be implemented Functions, Processes, Information, People

When – phases, timelines

How much – financial plus organisational investments

How will it cope with agile business needs

What are the benefits, how and when will they be realised

Successful Business Cases


Business Case Content - example 1. Reference • Project name/reference

• Origins/background/current state 5. Deliverables • Outcomes, deliverables and benefits

planned (with metrics) • Organisational areas impacted (internally

and externally) • Key stakeholders • Dependencies

2. Context • Business objectives/ opportunities • Business strategic alignment (priorities)

6. Workload • Approach • Phase/stage definitions

• Project activities • Technical delivery activities • Workload estimate/ breakdown • Project plan, schedule & critical

path • Execution plan

3. Value Proposition

• Desired business outcomes • Outcomes roadmap • Business benefits (by outcome) • Quantified benefits value • Costs/ROI Financial scenarios • Risks/costs of not proceeding • Risks (project, benefits & business)

7. Resources • Project leadership team • Project governance team • Team resources • Funding

4. Focus • Problem/solution scope • Assumptions/constraints • Options identified/evaluated • Size, scale & complexity assessment

8. Commitments Required

• Project controls • Reporting processes • Deliverables schedule • Financial budget/schedule

Source: Wikipedia

• Outcomes roadmap • Business benefits (by

outcome) • Quantified benefits value • Costs/ROI Financial

scenarios

• Outcomes, deliverables and benefits planned (with metrics)


76% of executives rate RoI as “somewhat” or “very” important BUT only 6% were actually measuring

Priorities: Increase in competitive advantage

Reduced cost of doing business

Improved efficiency

Improved customer service

Increased revenue

Importance of RoI

Source: Prescience Digital Media 2009


Succeed, 32%

Challenged, 44%

Fail, 24%

Only 32% of projects are seen as successful by the business

24% are cancelled or never implemented

Sponsors are now held accountable for benefits realisation

For some it is career limiting/terminating

Sponsors increasingly need to validate the benefits

long after the deployment

Project teams are now an integral part of the deployment and change management to achieve BAU

How about benefits actually realised?

Source: Standish CHAOS Report 2009

How do you quantify and measure RoI?


PLACE TO FIND STUFF

Scope of Intranet/Extranet

Information portal

Content libraries

Communications

People

Dashboards

Ideas

Best practice guides, how2

Discussions

Feeds

PLACE TO DO STUFF

Transact (through applications)

Information capture

Collaboration

Forms

Self service

Workflow

Content create, review, publish

Virtual meetings

Instant messaging


TANGIBLE

Benefits

Top line

Faster time to market

Faster, more services

Customer loyalty

Reduced costs

Travel costs

Mailing costs

Email traffic

Search time, duplication

Reduced errors, rework

Staff replacement

Faster applications development

Maintenance and support

Performance

Transactions per staff

Growth without growth


INTANGIBLE

Benefits

Improved knowledge base

Integrated applications and information

Hold admin level with growth

Self-service reports

Platform for applications

Speed and cost of intranet applications

Flexibility for changing business needs

Improved service

Faster order to delivery

Increased loyalty, reduced churn

Increase referrals

Staff attraction and retention

Staff education and development

Greater empowerment

Reduced escalation


ROI MEASURES – QUANTITATIVE

RoI Framework

Customers lost, gained

Customer satisfaction, referrals

Days outstanding

Staff turnover – cost and time

Learning time - effectiveness

Time to market

New offerings

Number of transactions

Size of transactions

Staff satisfaction levels

ROI MEASURES - QUALITATIVE

Staff morale

Quality of transactions

Quality of information

Level of compliance

Effort to process requests

Reputation in market, with peers

Awards, certification

Staff capability development

Staff empowerment

Senior management focus - strategy and leadership


Global corporate insurance company - collaboration 1 new product per year, 10% take-up

442% over 5 years

Global wealth management company – extranet portal

Sharing analysis with high value clients – 12% loyalty

£1M per year revenue increase

Examples


UK engineering manufacturer – extranet portal Gained second service contract

£50M over 10 years

Regional Development Bank – extranet collaboration Reduced cycle time from 18 months to 9 months

Improved quality of loans, increased approvals

Examples


IBM W3

Examples

52% are more satisfied to be an IBM employee because of information obtained on W3

MSWEB 33% agree completely that MSWeb saves them time

27% agree completely that it has helped to improve their productivity



US FACILITIES MGT CO

Examples

Has increased leads by more than 100%.

$90 million dollars US in sales volume

UK TELCO Ideas Jar encourages staff to be submit ideas online

Approx. 10% of ideas are implemented

Saved £100m over 4 years


Summary


Looked at why we need a business case

Discussed what makes a strong business case

Reviewed the tangible and intangible measures for RoI

Summary

To achieve measurable benefits for the business

Thank You

Developing a Business-Case for Intranet Investment and ... · investments to implement an intranet...

Documents

Transcript of Developing a Business-Case for Intranet Investment and ... · investments to implement an intranet...