Business Case Migration: Invisible Cost

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We took the original study from Open Source Academy and discuss the factor of lack of knowledge infrastructure and build a migration cost model.

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Business Case Migration: Invisible Cost

  1. 1. Business Case Analysis Alexandro Colorado
  2. 2. Open Source Academy <ul><li>Based on the OSA study </li></ul><ul><li>Original report freely downloadable </li></ul><ul><li>External documentation provided by Gartner </li></ul>
  3. 3. Content <ul><li>Introduction </li></ul><ul><li>Executive Summary </li></ul><ul><li>Invisible cost </li></ul><ul><li>Analyzing the damage </li></ul><ul><li>Relevant of knowledge infrastructure </li></ul><ul><li>Change management analysis </li></ul><ul><li>Leader Opinion about Migration </li></ul>
  4. 4. Introduction <ul><li>Analyze hidden costs in an organization </li></ul><ul><li>Develop a cost model to calculate cost impact </li></ul><ul><li>Support conclusions and processes for migration intentions </li></ul><ul><li>Provide more information about the gained infrastructure </li></ul><ul><li>Integrating our findings to the 'big picture' </li></ul><ul><li>Comparing it with the leader opinion </li></ul>
  5. 5. Executive Summary
  6. 6. Drivers for Migration <ul><li>Provide factual data about migration's TCO </li></ul><ul><li>Areas where cost reduction was significant </li></ul><ul><li>Provide information for required services </li></ul><ul><li>Reutilization of data storage on open file formats </li></ul><ul><li>Key financial and qualitative cost of current environment </li></ul>
  7. 7. Cost involved in migrate <ul><li>Migration costs are similar regardless of Proprietary or free software (Total was £ 88 per seat) </li></ul><ul><li>Cost involved during migration activities including: </li></ul><ul><ul><li>Project Management 1.3% </li></ul></ul><ul><ul><li>Communication 6.27% </li></ul></ul><ul><ul><li>Training – Technical and users 34.58% </li></ul></ul><ul><ul><li>Deployment and system testing 20.19% </li></ul></ul><ul><ul><li>Document conversion and integration 13.46% </li></ul></ul><ul><ul><li>Implementation support 12.53% </li></ul></ul><ul><ul><li>Consultancy fees 11.6% </li></ul></ul>
  8. 8. Benefits of migration <ul><li>Short term </li></ul><ul><ul><li>Significant saving on licenses </li></ul></ul><ul><ul><li>Reduced pressure on storage and network </li></ul></ul><ul><ul><li>Out of vendor lock-in </li></ul></ul><ul><li>Long term </li></ul><ul><ul><li>Use of Open Standards </li></ul></ul><ul><ul><li>Long term increase in freedom </li></ul></ul><ul><ul><li>Upgrade cost and patches </li></ul></ul>
  9. 9. Invincible cost
  10. 10. Bad practices <ul><li>Poor or non-existent file system management </li></ul><ul><li>Little or no use of templates and re-usable content </li></ul><ul><li>Inefficient usage through low skill levels and “feature ignorance” </li></ul><ul><li>Proliferation of spreadsheet and desktop database with critical information </li></ul><ul><li>Bad implementations </li></ul>
  11. 11. Analyzing the impact <ul><li>We calculated the amount of hours that the bad practices took away from productivity. </li></ul><ul><li>We multiply it for the hourly rate of an average employee </li></ul><ul><li>Compiled the accumulated impact </li></ul><ul><li>For data integration we took the cost of the average support engineer and the estimate a standard billing. </li></ul><ul><li>Applied normalization criteria across the the productivity profiles </li></ul>
  12. 12. Keys of the Analysis <ul><li>No specialized training cause lack of use of the tools </li></ul><ul><li>Limited support assistance cause multiple mistakes on the infrastructure </li></ul><ul><li>1.30 – 2hrs a day takes 15% of an 8hour </li></ul><ul><li>Lack of office document policy makes management impossible </li></ul><ul><li>SOCITM study estimate a 10% increase in productivity for ECDL certified infrastructure </li></ul>
  13. 13. Gartner study conclusions <ul><li>Estimate a considerable productivity loss (if there is no training) </li></ul><ul><li>Profiles consider a high level of proficiency on the tool </li></ul><ul><li>Implies that the corporation is using collaborative systems </li></ul><ul><li>Doesn't take in account the long term sustainability </li></ul><ul><li>Exponential saving rates 33% once presented with a targeted migration strateg y </li></ul>
  14. 14. Knowledge infrastructure <ul><li>Best practices on office suite </li></ul><ul><li>Template system for rapid document development </li></ul><ul><li>Centralized file system for document audit and data preservation </li></ul><ul><li>Continuous support infrastructure </li></ul><ul><li>Affordable continuous training model </li></ul>
  15. 15. Outcome <ul><li>Identified invisible cost from lack of training present a 20% increase </li></ul><ul><li>The invisible cost can't get eradicated but minimized </li></ul><ul><li>Identified areas of opportunity for better strategies (lowering training costs) </li></ul><ul><li>Documented longer term benefits and estimate potential new ones </li></ul>

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