KMA Webinar: What Your CFO Should Know About SharePoint

Webinar Series February 16, 2011What your CFO should know about SharePoint TOLL Free Access #: 1 877 366-0711 Canadian Toll Access #: 1 866 627-1651 International Toll Access #: Participant Passcode: 15274468# Presented by:

Webinar Series February 16, 2011What your CFO should know about SharePoint Presented by:

Housekeeping Items • Experiencing Issues? • Change color of your seat to RED • Questions for Speakers? • Submit questions during webinar • Twitter Discussion • #kmasp • Feedback • Webinar Feedback • Next Steps/Moving Forward Copyright 2011 © Knowledge Management Associates, LLC. All rights reserved. TWITTER #KMASPTwitter hashtag: (3)

ABOUT KMA• Founded in 1995, focused on New England• 25 employees, technical DNA• Industries: Professional Services, Life Sciences & Financial Services• Technologies: • SharePoint, SQL Server, Office, and Visual Studio.NET• Specialties: • Collaboration: Portals, Websites, Communities and Content Management • Insight: Enterprise Search and Business Intelligence • Productivity: Forms, Workflow, Office Client Customization Copyright 2011 © Knowledge Management Associates, LLC. All rights reserved. TWITTER #KMASPTwitter hashtag: (4)

About the Speakers – Paul Culmsee • Owner: Seven Sigma Business Solutions • SharePoint architect, trainer, facilitator and agony aunt • Sense-making practitioner and facilitator for large scale complex projects (non IT) • Speaker and author: • SharePoint Best Practice Conferences • Business Analyst World Conference • CleverWorkarounds.com • NothingButSharePoint.com • SharePointMagazine.net Copyright 2011 © Knowledge Management Associates, LLC. All rights reserved. TWITTER #KMASPTwitter hashtag: (5)

About the Speakers – Chris McNulty • Working with SharePoint technologies since 2000/2001 • 20 years consulting and financial services technology (Santander, John Hancock, GMO, State Street) • SharePoint practice lead at KMA • Write and speak often on Microsoft information worker technologies • Microsoft MCSE/MCTS/MSA • BC MBA in Investment Management Copyright 2011 © Knowledge Management Associates, LLC. All rights reserved. TWITTER #KMASPTwitter hashtag: (6)

Agenda• Paul Culmsee: How to Talk to Your CFO in Their Language• Chris McNulty: Business Intelligence and Data Visualization tools CFOs will love• Questions & Answers Copyright 2011 © Knowledge Management Associates, LLC. All rights reserved. TWITTER #KMASPTwitter hashtag: (7)

(c) Seven Sigma Business Solutions 2010

What I’ll Be Speaking To: (c) Seven Sigma Business Solutions 2010

What I’ll Be Speaking To:1. How to perform ROI analysis the way your CFO would2. Dealing with “you cannot quantify *insert platitude here+”3. Handling uncertainty in estimating (c) Seven Sigma Business Solutions 2010

Even CFO’s Have a Pie :-)Source: KPMGhttp://kpmgbe.lcc.ch/index.thtml/en/services/Advisory/Performance/AAS/index.html (c) Seven Sigma Business Solutions 2010

How You May See ROI• We need to spend $100,000 on “SharePoint”• It’s gonna be great! After 3 years we expect to make $120,000• $120k-$100k = $20,000 that like … a 20% return! Where is my bonus? Year Investment Benefit Cash Flow 0 -$100,000 0 -$100,000 1 -$20,000 $40,000 $20,000 2 -$20,000 $60,000 $40,000 3 -$20,000 $80,000 $60,000 Total return $20,000 (c) Seven Sigma Business Solutions 2010

The CFO View(c) Seven Sigma Business Solutions 2010

Risk and Return• Most organisations borrow money to fund their operations• Organisations with surplus cash can earn 4-6% interest with little risk• Why would you undertake a risky project if it returned 6%? o It is not covering financing cost or; o Park the money and earn interest risk free o This is called “Cost of Capital”• We need to discount the cash flows (DCF) by the cost of capital (c) Seven Sigma Business Solutions 2010

Your ROI Model (Discounted)• Let’s assume an 8% cost of capital = 0.08 Year Investment Benefit Cash Flow Discounted Cash Flow 0 -$100,000 0 -$100,000 -$100,000 1 -$20,000 $40,000 $20,000 $18518 (20000 / 1.08) 2 -$20,000 $60,000 $40,000 $34294 (40000 / 1.08^2) 3 -$20,000 $80,000 $60,000 $47630 (60000 / 1.08^3) Total $20,000 $442 (c) Seven Sigma Business Solutions 2010

…But You Can’t Quantify Collaboration?• Oh yes you can! o Watch for the platitude o Learn to handle uncertainty (c) Seven Sigma Business Solutions 2010

Platitudes“The Montgomery Burns Award for Outstanding Achievement in the Field of Excellence" (c) Seven Sigma Business Solutions 2010

The Platitude IndicatorIf you cannot reasonably disagree with anobjective, or measure it, then it is a platitude ‘Most corporate mission statements are worthless. They often formulate necessities as objectives; for example, "to achieve sufficient profit." This is like a person saying his mission is to breathe sufficiently.’ Russel Ackoff (c) Seven Sigma Business Solutions 2010

SharePoint Platitudes“We are improving collaboration” (c) Seven Sigma Business Solutions 2010

SharePoint Platitudes “We are improving collaboration”“We are providing a best-practice collaboration platform” (c) Seven Sigma Business Solutions 2010

SharePoint Platitudes “We are improving collaboration” “We are providing a best-practice collaboration platform”“We are providing a quality collaborative experience for our users” (c) Seven Sigma Business Solutions 2010

SharePoint Platitudes “We are improving collaboration” “We are providing a best-practice collaboration platform”“We are providing a quality collaborative experience for our users” “It’s a SharePoint project” (c) Seven Sigma Business Solutions 2010

A Non Platitude Example “To produce high-quality, low cost, easy to use products that incorporate hightechnology for the individual. We are proving that high technology does not have to be intimidating for noncomputer experts.“ Apple Mission Statement (c) Seven Sigma Business Solutions 2010

SharePoint Non Platitudes “We are proving that through better information management, we can improve our customer relationship and trust building without over-burdening our staff” “We are proving that we can grow the organisation whilereducing email volumes and centralising document storage”“By building communities of practice, we prove that we canreduce information overload and allow our users to find the right expertise” (c) Seven Sigma Business Solutions 2010

I’m Too Uncertain to Estimate…• We implement new tools and systems to make a positive difference o Otherwise why bother?• Ask yourself what the ‘difference’ actually looks like o This is where you will find your metrics o Example: Faster turnaround, reduced wastage, reduced complaints, repeat business, reduced customer churn, etc o Hint: visit www.kpilibrary.com for a database of potential measures (c) Seven Sigma Business Solutions 2010

I’m Too Uncertain to Estimate…• It is not about finding the *exact* value o Vaguely right is better than precisely wrong o Provide an estimate within a lower and upper range that you feel confident about o If your CFO does not like your estimate, run a workshop to reduce the range, but do not be coerced into reducing your uncertainty! o The range of possibilities can be modelled via the discount cash flow method (c) Seven Sigma Business Solutions 2010

Key Takeaways• Geeks don’t sign the cheques, CFO’s don’t architect SharePoint – Some shared understanding goes a long way• Ensure that you take into account cost of capital when modelling ROI• Do not chase mirages disguised as platitudes – Platitudes delude us into thinking that we have an end in mind when we actually do not – Hone your platitude radar – Don’t confuse the means with the end. Focus on the difference SharePoint will make.• If you are uncertain, offer a ranged estimate and model the possibilities – Don’t be coerced into artificially reducing your uncertainty. Copyright 2011 © Knowledge Management Associates, LLC. All rights reserved. TWITTER #KMASPTwitter hashtag: (27)

Goals for BI Design• Answering the known questions about our business• Allowing users to self-discover patterns and answers to questions we haven’t yet been asked Copyright 2011 © Knowledge Management Associates, LLC. All rights reserved. TWITTER #KMASPTwitter hashtag: (29)

SharePoint BI Evolution Custom Performance Solutions Point • Mapping Enabling • Dashboards • Web Parts technologies • Analysis • Etc. • Business Services Excel Connectivity Services Services • Excel Web • SQL Reporting Access Services Chart • Pivot • PowerPivot Web Part • Dallas Copyright 2011 © Knowledge Management Associates, LLC. All rights reserved. TWITTER #KMASPTwitter hashtag: (31)

Excel Services• Use the world’s #1 BI modeling tool• Render data, charts, interface using native Excel components (e.g. Slicers)• Data stored in Excel• Host a presentation layer using Excel Services• Use native SharePoint Status Indicators (KPIs)• Use when users are skilled in Excel modeling and charting and data lives in spreadsheets Copyright 2011 © Knowledge Management Associates, LLC. All rights reserved. TWITTER #KMASPTwitter hashtag: (32)

PowerPivot• “Project Gemini” – host 1-10MM row datasets• Excel and SharePoint components – Excel optimized to handle data management and memory cache – SharePoint builds cache and optimizes for server web access• Data doesn’t live in spreadsheet; comes from – SQL, Analysis Services Cube, SSRS Report – Access – Power Pivot/Excel – Data Feeds (XML, Atom, Azure, WCF OData, Dallas) – Oracle, Teradata, Sybase, DB2 – ODBC – Text files• Use when Excel modeling skills are high but data is too large or too heterogeneous to keep in multiple Excel spreadsheets Copyright 2011 © Knowledge Management Associates, LLC. All rights reserved. TWITTER #KMASPTwitter hashtag: (33)

Business Connectivity Services• Read write access to external data sources in SP2010 (aka Business Data Connectivity)• Pull data into SharePoint user interface• Push data into external sources – (SQL, .NET, Windows Communication Frameworks (e.g. Dallas)• Republish data to consuming applications (e.g. Outlook 2010)• Use when key data lives outside SharePoint direct control – e.g. accounting systems Copyright 2011 © Knowledge Management Associates, LLC. All rights reserved. TWITTER #KMASPTwitter hashtag: (35)

SQL Server Reporting Services (SSRS)• “Code free” but requires development tools• Designed using Business Intelligence Developer Studio• Host in SQL Server or SharePoint Copyright 2011 © Knowledge Management Associates, LLC. All rights reserved. TWITTER #KMASPTwitter hashtag: (36)

PerformancePoint 2010• Dashboard Designer (browser downloadable)• Integrates Excel Services, SSRS, and Performance Point Elements• Sophisticated self service modeling• Decomposition Tree• Ideal for SSAS but also work with standard data sources (lists, SQL)• Requires true SQL development to build and maintain SSAS cubes for KPIs and scorecards Copyright 2011 © Knowledge Management Associates, LLC. All rights reserved. TWITTER #KMASPTwitter hashtag: (37)

2010 BI Solutions in SharePointLarge Datasets Visual Navigation PowerPivot Pivot PerformancePoint Mapping SharePoint list KPI / Status Indicator SQL Reporting Services Chart Web Part Printing or Excel Services exporting Small Datasets Copyright 2011 © Knowledge Management Associates, LLC. All rights reserved. TWITTER #KMASPTwitter hashtag: (39)

Resources• From Seven Sigma: • Blog: www.cleverworkarounds.com • “Learn to speak to your CFO” – 5 part series • Why do SharePoint projects fail – 8 part series • The one best practice to rule them all – 6 part series • SharePoint ROI sample spreadsheet • http://www.cleverworkarounds.com/PMIS%20Scenario.zip• From KMA • Webinars, white papers and blogs at www.kma-llc.net/insights • Chris’s blog at: http://blogs.kma-llc.net/microknowledge/• From Microsoft: • Business Intelligence: http://www.microsoft.com/bi/ • BI Blog: http://blogs.msdn.com/b/bi/ Copyright 2011 © Knowledge Management Associates, LLC. All rights reserved. TWITTER #KMASPTwitter hashtag: (41) (c) Seven Sigma Business Solutions 2010

Resources: How KMA Can Help• Content: • Online content, blogs, articles available through www.kma-llc.net/insights • Monthly live seminars/webinars, recent topics at www.slideshare.net/kmallc • One-to-one discussions with you about your unique business problem• Upcoming Events: • March 16 Webinar: SharePoint for the PMO • March BASPUG: BI and Data Visualization • More at: http://www.kma-llc.net/insights/Pages/NewsEvents.aspx• Offerings • SharePoint Health Check, Readiness Assessments - short-term, fixed price engagements • Deployment Planning Services – co-funded by Microsoft and with SA benefits • NEW: Solution Architect Sessions Copyright 2011 © Knowledge Management Associates, LLC. All rights reserved. TWITTER #KMASPTwitter hashtag: (42)

Special Solution Briefing Offer for Webinar AttendeesA complimentary Solution Briefing with your IT and business leaders, by a KMA Solution Architect.You will be provided with an explanation of how to map business problems to solutions poweredby Microsoft technologies, featuring: • Demonstrations and/or Case Studies • Business Analysis Design • HighCalculator Level Conceptual • ROIDelivered via: • Two-hour IT and business location with your session at your leaders. • Written Report including analysis and design summary, and ROI calculator.Audience: • IT and Business LeadersRetail Value: $1,000 (43) Twitter hashtag: Copyright 2010 © Knowledge Management Associates, LLC. All rights reserved.

In Closing…• How to get (and share) a copy of today’s slides• How to continue the conversation: Name Twitter E-mail Phone Chris McNulty @cmcnulty2000 Cmcnulty[at]kma-llc[dot]net 781.693.6829 Paul Culmsee @paulculmsee paul.culmsee[at]sevensigma[dot]com[dot]au Mike Gilronan @mikegil Mgilronan [at]kma-llc[dot]net 781.693.6823• How to provide feedback Thank you to our speakers and attendees!!! Copyright 2011 © Knowledge Management Associates, LLC. All rights reserved. TWITTER #KMASPTwitter hashtag: (44)

KMA Webinar: What Your CFO Should Know About SharePoint

by Knowledge Management Associates, LLC

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