Total Economic Impact Study Of Yammer - By Forrester Consulting

PRESENTATION Prepared BY:
Tanya Loh, Engagement Strategist
@tloh
The Total Economic Impact of YammerA Commissioned Study by Forrester Consulting (April 2011)

Some yams are easy to measure

But what about these?
“With Yammer, we are able to connect and collaborate with subject-matter experts in our global enterprise, we have the ability to communicate between headquarters and the field, and we have the ability to share experiences and engage leadershipin conversation.”
“Yammer has been theonly cross-functional, cross-silo place for people to go to get their questions answered. It’s our global water cooler and it did a great job.”
− VP of online communications
media and technology firm
− Director of IS Strategy and Innovation
Fortune 500 pharmaceutical firm
VALUE
“The Total Economic Impact of Yammer”, April 2011,
a commissioned study conducted by Forrester Consulting on behalf of Yammer.

What is the ROI of Yammer?
Conducted by Forrester Consulting on behalf of Yammer, the purpose of this commissioned study is to:
Provide a framework to evaluate the potential financial impact of deploying Yammer and address why companies should invest
“With Yammer, we are able to connect and collaborate with subject-matter experts in our global enterprise, we have the ability to communicate between headquarters and the field, and we have the ability to share experiences and engage leadership in conversation.”

12 week commissioned study with Forrester Consulting
Interviews with 4 Yammer customers (paid licenses, mature networks)
Designed composite customer case of 7,000 users / 21,000 employees
Based on a three-year term at list pricing, risk-adjusted ROI:
Executive Summary
Table 1
Composite Organization Three-Year Risk-Adjusted ROI
Source: Forrester Research, Inc.

Tieto, a leading IT service company in Northern Europe
17,000 employees, 4,900 on Yammer
A regional division of a North American automobile and travel organization
A diversified media, technology, and information services firm
A Fortune 500 multinational biopharmaceutical company
*Yammer network totals current as of time of interview
Participating Customers
“If you were looking to solve a technical or process problem, in the past you had limited resources. With Yammer, your resource horizon is significantly greater, and getting the answer is significantly faster.”

Projected Costs
List pricing ($5 per user per month), not including discounts
All other costs, including admin support and oversight, implementation and training, based on customer experience
Total Cost: $1.7 Mn for 3 year license for 7,000 users
“Several people have said that one week on Yammer has taught them more about the organization than the years they’ve spent here.”
− Consultant, Enterprise Content Management Department
IT Services firm

Projected Benefits
Project cost savings: avoiding redundant work, reorganization of processes, improved collaboration and communication
High engagement worker: 28% of network, 1.4% productivity increase, 50% captured by company
Medium engagement worker: 32% of network, assume 0.7% productivity increase, 50% captured by company
Faster onboarding: assuming 5% turnover, with 2.3% to training, overall 10% reduction in new hire training costs
Total Benefits: $10.2 Mn for 3 year license for 7,000 users

Yammer Helped Simplify, Reuse

Additional Benefits
Improved vertical communication
Public venue for and record of conversations
Reinforcement of success drivers
“Results from the company survey came out. People are saying, ‘I’m so glad we have Yammer, I feel more connected to everyone in the company. The COO, the CEO – they are listening.’”
− Social media strategist
North American automobile and travel organization

The Total Economic Impact of Yammer
The data collected in this study indicates thatdeploying Yammer has the potential to provide a solid return on investment through quantifiable project cost savings, productivity benefits, and reduced training costs.The risk-adjusted ROI of 365%, along with a rapid payback period (breakeven point), raises confidence that the investment is likely to produce a positive outcome…[based] on these findings, companies looking to implement Yammer can anticipate significant productivity gains and cost savings.”
– Forrester Consulting
“
365% ROI, 4.3 month payback, $5.7 Mn NPV
risk-adjusted, 3 year license for 7,000 users at list pricing

http://yammer.blogs.com	216
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