King County GIS ROI Study

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This presentation describes a Return on Investement study of King County GIS in Washington state, covering the period 1992 through 2010. The study was conducted by Dr. Richard Zerbe and Associates from the University of Washington School of Public Affairs.

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King County GIS ROI Study

  1. 1. Using ROI Methodology to Document the Benefits of King County GIS Esri Annual User Conference San Diego, California - July 24, 2012 Greg Babinski, MA, GISP Finance & Marketing Manager King County GIS Center Seattle, WA URISA President Summit Chief Editor
  2. 2. Agenda Introduction & background to the GIS ROI Study GIS ROI Documentation Studies 2010-2012 Oregon/King County GIS ROI Study Preliminary Results Next Steps Discussion
  3. 3. ROI Estimates & Benefit-Cost Analysis
  4. 4. ROI Estimates & Benefit-Cost Analysis  Common tool for analyzing & configuring development plans  Typically result in an estimate or forecast of business benefits
  5. 5. King County, Washington  Microsoft  Boeing  Paccar  Nordstroms  Amazon  Starbucks  Port of Seattle  WeyerhaeuserPopulation (1,931,000 (14th most populous US county)  Univ. of WashingtonArea: 2130 square miles (sea level to 8,000‟)39 incorporated cities  GoogleViable agricultural and private forestry areas  SkypeRemote wilderness & watershed lands
  6. 6. King County GIS – 1992 GIS ROI Estimate
  7. 7. King County GIS – 1992 GIS ROI Estimate
  8. 8. King County GIS - Development History:  Originated with 1992 PlanGraphics study  1992 Benefit Cost Analysis  PlanGraphics identified 126 business applications and a $22 million capital cost estimate  1992-1994 King County – Seattle Metro merger  1993 joint King County – Metro GIS scoping plan – reduced $6.8 million scope approved by King County Council  1993-1997 GIS capital project executed  1997 KCGIS O&M begins  2002 KCGIS Consolidation implemented
  9. 9. 2012 KCGIS Development:  500+/- desktop GIS users  100,000 annual internal web based GIS user sessions  2.2 million annual external web based GIS user sessions  50 GIS professionals  GIS use expanded from 12 to 35 county departments and offices  But where are we really on the optimal development of GIS in King County?  What was (is) our ROI?
  10. 10. GIS ROI Documentation Studies?  Why are they not required?  Why are they not performed?
  11. 11. GIS ROI Documentation Studies?Baltimore County, MD
  12. 12. GIS ROI Documentation Studies? Baltimore County, MD
  13. 13. Why GIS ROI Documentation Studies? State of Oregon
  14. 14. Why GIS ROI Documentation Studies? State of Oregon
  15. 15. GIS ROI Documentation Study Breakthrough New Zealand
  16. 16. GIS ROI Documentation Study Breakthrough New Zealand
  17. 17. Oregon/KCGIS GIS ROI Study Project Conceived during 2009 URISA AC in Anaheim Approach finalized during 2009 ULA in Seattle State of Oregon & King County joint funding KCGIS 2010 Priority Initiative Managed by KCGIS Center
  18. 18. KCGIS GIS ROI Study May 2010 RFP sent to targeted consultants June 2010 consultant selection August 2010 contract signed July 2010 work began September & October 2011 Preliminary Results Released March 2012 Final Report Published
  19. 19. KCGIS GIS ROI StudyConsultant Team from UW Evans School of Public Affairs: Prof. Richard W. Zerbe  Danielle Fumia & Travis Reynolds  Pradeep Singh & Tyler Scott
  20. 20. KCGIS GIS ROI StudyConsultant Team from UW Evans School of Public Affairs: Benefit-Cost Analysis Center
  21. 21. KCGIS GIS ROI StudyScope of Work:  Literature Review  Qualitative Interviews (n = 30)  Quantitative Survey (n = 200)  Final ROI Report  Revised Interview/Survey Instruments for future studies
  22. 22. KCGIS GIS ROI Study: MethodologyWith or without survey methodology:  How has GIS altered agency output levels?  Benefits associated with FTE reductions to produce the same (pre-GIS) level of output  Benefits associated with enhanced production with the same FTE levels  Three stage analysis:  Interview agency heads and key employees to assess the types of applications and business uses. Interviews were used to build an employee survey.  Employees and managers across King County responded to the survey to record their pre and current (or with vs. without) GIS productivity by output types.  Interview and survey results were compiled by output type, agency, and productivity levels. Results were then monetized.  Monetized benefits compared to detailed GIS capital O&M, and end-user costs
  23. 23. KCGIS GIS ROI Study Results
  24. 24. KCGIS GIS ROI Study Results“The most conservative estimate presented finds that the use of GIS has producedapproximately $775 million in net benefitsover the eighteen year period from 1992 to 2010….Thus a reasonable estimate of total gains is between $180 million and $87 million in 2010.”
  25. 25. KCGIS GIS ROI Study ResultsTheoretical basis for cost and benefit calculations
  26. 26. KCGIS GIS ROI StudyFuture Steps:  Article in ICMA ESRI Press Book of GIS for Elected Officials  Likely articles by Dr. Zerbe & colleagues in GFR, URISA Journal  Analyze detailed department results  Analyze detailed benefits by output type  Analyze detailed benefits by productivity type  Tell our bosses - great interest within KC government  Compare with Twin Cities/Metro GIS Parcel Data ROI study  Compliment & Inform Multnomah County ROI study  URISA ROI Workshop development  Refine methodology  Encourage/support more studies
  27. 27. KCGIS GIS ROI StudyQuestions & Answers:  At what stage is KCGIS in the total potential business use of GIS?  Are the KCGIS results „good‟?  How do we know?  Do we need similar studies of other large counties?  What about a single „latitudinal‟ study of 10 mid-sized cities in Washington & Oregon?  Are government agency officials not now compelled to pursue full GIS development?
  28. 28. Acknowledgement:  State of Oregon GIS and Cy Smith, Oregon GIO  KCGIS Technical Committee  Richard O. Zerbe & UW GIS ROI Study Team  KCGIS Center Interview team:  George Horning, Manager  Greg Stought, Enterprise Services Manager  Dennis Higgins, GISP, Client Services Manager  Debbie Bull, GIS DBA  Greg Babinski, GISP, Finance & Marketing ManagerQuestions, Comments & DiscussionLearn More:• ArcNews: Summer 2012: http://www.esri.com/news/arcnews/summer12articles/king- county-documents-roi-of-gis.html• Access full report on King County web site: www.kingcounty.gov/gis
  29. 29. Greg Babinski, MA, GISPURISA President-ElectSUMMIT Chief EditorFinance & Marketing ManagerKing County GIS Center201 South Jackson Street, Suite 706Seattle, WA 98104206-263-3753greg.babinski@kingcounty.govwww.kingcounty.gov/gis

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