RFID use in Libraries: ROI
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RFID use in Libraries: ROI

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A presentation for the Canadian Libraries Association on the return on investment for implementing RFID systems for self service, elibraries, sortation, security and public access management.

A presentation for the Canadian Libraries Association on the return on investment for implementing RFID systems for self service, elibraries, sortation, security and public access management.

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  • JEFF
  • JEFF (and Alice)ALICE -- Reducing Risk -- systematically gathering evidence that can be used to make a decision. – less subjective/emotional decision makingJEFF-- Process shines light into dark corners Forecasting & resource allocation –human and $$ resources-- BEFORE A BREAK/HANDS-ON WORK TIME -– think about possible projects in their library, what’s on the drawing board at your library, which ones do you think you could put through this process? -- because next, we want to start working on a skeleton of a project -- Organize folks – have them work together or separately -- FEW MINUTES TO MAKE NOTES ABOUT YOUR OWN ENVIRONMENT
  • Who does what – and what are they paid?-- What standard are you going to use – is the standard time? If so, need to know how much time different things to take, and what hourly wage you assign to it - know who fulfills what roles ahead of time, determine their fully burdened wages in order to get the most accurate sense of costs.-- decide how granular you want to be – are you going to round figures off? - Are your averaging wages? Do you have folks at different pay rates doing the same task?-- Are you going to consider overhead costs of employee, or the more tangible cost (task E takes Y seconds, x Fully burdened hourly wages)
  •  Which one do folks think would have the biggest savingsAlice notes: remove values, mix up orderSpeed of check-in$2, 371Inventory$4,106Shelf Reading$6,969New Collection Processing$2,114Circulation Desk Staffing$26,330Total projected annual savings$41,890
  • Jeff
  • We are entering into an intangible economy
  • Question: what barriers do you see to your project?Competitors? Alternatives? What if you don’t do it, what is at risk?Barriers @ MRU -- For us, downward trend in Circ was a barrier, potential staff anxiety around implementing such a change.cost relative to payback period, including labour, time lost on other projects Alternative – lower cost, EM self-check would do some of the same for us.Question – why would you want to do this NOW?Enablers – why NOW? What opportunities are there for moving ahead? Potential partners?Funders? Transitional opportunity that could help implementation? PR opportunity?@ MRU For us, transition to university – a climate of change anyway, and could use the profile boost with our new status. Building plans – we are going to be in flux, new space will mean a new way of doing business and organizing ourselves – good time to change AND will be handling items one by one anyway. Powerful enablers.Report Content ExampleExecutive SummaryBackground & AssumptionsProject ObjectivesMethodologyData Collection & AnalysisProject CostsROI and Payback PeriodQualitative FactorsImplementation IssuesConclusion & Recommendations
  • ALICE:@ MRUTime required for an ROI study will be relative to size and scope of the project- Predicting the time spent was difficult. Thought it would take a few weeks – it ended up taking months - Hour a week for 8 weeks in meetings - Data collection – was tough to predict – lots of number crunching and observing -Report writing and re-writing – took several more weeks, and was the most time-consuming, but a lot of this was due to being in different cities, having tight schedules and different styles. - Versioning – establish up front how you will do this, who will be the keeper of the records! (would assume a librarian would have been good at file management – au contraire) I would have formed the team differently – perception of walking into a dept and asking a bunch of questions about their business alarmed some folks, needed a bigger team Learned about my library – what people do and how. Surprised by how often I’ve calledupon the data numerous – to determine costs associated with mailing notices, to determine cost savings of an interim self-check unit we are considering until we can go ahead with RFID

Transcript

  • 1. How to Quantify the Return on Investment of Library Technology Projects
    Alice Swabey, Coordinator - Access Services,
    Mount Royal University Library
    Jeff Narver, Library Productivity Specialist,
    3M Canada Library Systems
  • 2. What this Process is … and isn’t
    Forecast
    Process not a tool
    Not to prove
    Gap analysis
    Not for all projects
  • 3. Why Use Project ROI?
    Reduce risk
    Resource allocation
    Defining a balanced value perspective
    Qualitative, quantitative, strategic, tactical, short & long term
    Funding tool
    Validate claims
  • 4. Step 1: Environmental Scan
    Collect & evaluate potential projects
    Prioritize projects
    Organize the team
    Library circumstances
  • 5. Step 2: Program Assumptions
    Outline of problem
    Possible solutions
    Possible alternatives
    Go / no go’s
    Program parameters
    Size & scope
    Gut check
  • 6. Step 3: Program Objectives
    Simple, measureable, realistic
    Financial, time, learning
    Benchmarking
  • 7. Step 4: Identify Impact Points
    Break down current process
    Break down new process
    Identify and compile master list
  • 8. RFID Sample Impact Points
    Speed of circulation
    Shelf management
    New materials processing
    Reduction in materials handling
    Speed to shelf
  • 9. Step 5: Conversion Standard
    What standard will you use?
    If it doesn’t fit, don’t force it
    For example ...
    79 652 circs/yr x 7.5 seconds/item = 165 hours x 28.98/hr wages = $4781
  • 10. Step 6: Data Collection
  • Data examples
    Hard
    Soft
    Circulation
    Lost items
    Discrepancies
    Salaries
    Customer complaints
    Staff turnover
    Efficiency
    Processing time
    Process improvement
    Leadership
    Reputation
    Customer loyalty
    Customer complaints & impressions
    Staff complaints
    Staff satisfaction
    Staff Safety
  • 20. Then Estimate Change
    Agree upon change estimates
    Don’t force it (step 8)
  • 21. Project Savings
  • 22. Step 7: Project Costs
    It isn’t the just the equipment
    Capital vs operational
    1 year or 3-5 years
  • 23.
  • 24. Qualitative factors drive projects
    Intangibles are the invisible advantage
    Jack Phillips, 2007
  • 25. Step 8: Qualitative Benefits
    Help tell the story
    Customer satisfaction
    Staff satisfaction
  • 26. Step 9: Return on Investment
    Calculate the annual project benefits (step 6)
    Divide them by the project costs
    Payback
    average 3-7 years
  • 27. Step 10: Writing the Report
    Barriers & enablers to implementation
  • 28. Step 10: Write Report
    Know your audience
  • 29. Step 11: Do follow-up
    Test assumptions after project implementation
  • 30. What we learned
    Listen to the data
    Time
    Manage staff anxiety
    It isn’t always the quantitative
    Process milestones & credibility
    Learning about your library
  • 31. Wrapping Up
    Alice Swabey
    Mount Royal University
    aswabey@mtroyal.ca
    Jeff Narver
    3M Canada
    jdnarver@mmm.com
  • 32.
  • 33. Adding it all up...