Driving Business Value with SharePoint and Enterprise Social

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As presented at SPS Jamaica

As presented at SPS Jamaica

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  • Productivity – output per personConnectivity – decision quality
  • ROA aggregated across companies. “The continuing ROA gap between top performers and bottom performers is not unexpected. It is significant, however, that even for the top quartile, ROA has declined from 12.9 percent in 1965 to 9.7 percent in 2012. The bottom quartile has declined more—from 1.2 percent in 1965 to -11.5 percent in 2012.”http://www.inc.com/encyclopedia/return-on-assets-roa.htmlhttp://dupress.com/articles/success-or-struggle-roa-as-a-true-measure-of-business-performance/http://dupress.com/articles/the-burdens-of-the-past/
  • The story of the ROA decline is that there has been an over-investment or bad mix of investments in traditional assets. Returns on “everything else that isn’t accounted for as an asset” have on average been better, but have been under-invested in. Return on Intellectual Capital is the best proxy for return on “everything that is not in the asset bucket of balance sheet,” and this intellectual capital is primarily human intellectual capital. But it also includes information and knowledge and connections among expertise that are organized in computer systems. These types of computer-based constructs that enhance human intellectual capital are not typically not accounted for as an asset in the balance sheet. While software systems themselves generally are accounted for as an asset, it is likely that on average they have higher returns than are typically formally measured because they enable these types of follow-on productivity enhancing structures and insight extraction capabilities that are not formally accounted for financially. For example, if you tag content so that it is more easily found in SharePoint, it is not accounted for as an asset, but it provides on-going streams of benefits just as a formally accounted-for asset would. Multiply variations of this example by billions of times, and the path toward ROA improvement is clear. (ManyWorlds Research) “ROA is a lagging indicator. Its trajectory provides insight into the quality of prior decisions and also helps challenge the fundamental assumptions that these decisions were based on.” Deloitte And what the data suggest is on average proportionally too much investment in traditional assets at the expense of intellectual capital! That does not hold for every company or every industry, but on a macro level, it is an inescapable conclusion.Anecdote: Large SP user with billions of dollars of capex/year with slow SP implementation due to under-investment in that area that would be tiny fraction of their other asset expenditures. An extra dollar spent in this area would have significantly greater return than in traditional capex areas. Not understanding what is really strategic for them: enhancing intellectual capital!
  • Andrew McAfee: By now we’re all familiar with digitized text, digitized audio, and digital video. One of the profoundly interesting and important things going on these days is that lots of other information is being digitized. Our social interactions are being digitized, largely thanks to all the different social networks and social media that we have. The attributes of the physical world are being digitized, thanks to all of these sensors that we have for pressure, temperature, force, stress, strain, you name it. Our whereabouts are being digitized, thanks to GPS systems and smartphones.James Manyika: We also have other forms of digitization. Physical products and goods continue to be quite physical but are coming wrapped in data. Think about your container on a ship that’s tagged, and it turns out that even the actuarial models for how the tracking of that is valued and insurance contracts are constructed is different whether the thing is tagged and tracked versus not.Andrew McAfee: If this encroachment really is taking place faster and more broadly than it ever has before, there are a couple of implications. There’s good news and challenging news here. The good news is that the variety and volume and quality of things that we’ll be able to consume will go up, and the prices will go down. The challenge comes from the fact that if this encroachment really is happening quicker, more broadly, and deeper than before, the phenomenon is that technology is going to race ahead, but it could leave a lot of people behind in the capacity of folks who want to offer their labor to the economyhttp://www.mckinsey.com/insights/energy_resources_materials/reverse_the_curse_maximizing_the_potential_of_resource_driven_economiesRising resource prices and expanded production have raised the number of countries where the resource sector represents a major share of the economy, from 58 in 1995 to 81 in 2011. That number will rise: to meet soaring demand for resources and replace rapidly depleting supply, the world should invest a total of up to $17 trillion in oil and gas and in minerals by 2030, double the historical rate. In 20 years, almost half of the world’s countries could depend on their resource endowments for growth
  • How many people supporting assets, retail manufacturingDisconnect with managing information assets40 people supporting SAP , 4 people supporting SharePoint
  • This basically the Return on Intellectual Capital opportunity in each industryAlso mention lean manufacturing processes – embedding six sigma
  • The question now is, how do you improve the LOB systems that you’ve already invested in to make everyone in your organization more functional?These are some of the challenges customers like you are facing on a regular basis {Summarize points on screen in blue}As we’ve talked about, most of the time business-critical data is siloed in one LOB system and the people who need visibility into it don’t have accessThat doesn’t mean that everyone should have access to all data, but people who use certain data on a regular basis do need role-based access based on business prioritiesBy connecting LOB systems to SharePoint, you can make sure that you surface the right subset of information to the right people at the right time {Click through animation until SharePoint logo and 3 blue boxes are fully animated}To use SharePoint as a solution to bridge integration gaps, there are three key steps to take:First, connect SharePoint to your LOB systemsThen, surface the LOB data in SharePointFinally, deliver those business-critical solutionsOnce you’ve completed these steps you’ve accomplished two key things:You’ve driven up the value of SharePoint within your organization by allowing users access to the data they need, which helps them do their jobs betterYou’ve increased the value of your existing LOB systems because now you’re not only serving the specific discipline that each LOB system was designed to serve, but you’re sharing the data within those systems with those who need it
  • But don’t just take my word for it…Over the past year, BCSP partners and customers have come together to lock on some of the main drivers of ROI for BCSP solutions Through 3rd party research, it was discovered that there is a particular “flow” to the value experienced by BCSPThese are some of the common benefits from a business, process, and IT perspectiveIT-related benefits are realized in “getting to the solution” which then drives process impacts around time and productivityBoth of these then lead to the business impact, which is often what can be measured in value (dollars and cents) {Summarize the benefits listed for each section}These benefits are what customers are seeing within their organization when they take the Business-Critical SharePoint approach, and these are all benefits that you want to bring to your organization to help deliver the best possible experience for your customers
  • Spain's richest man owns 59 percent of Inditex, the world's largest clothing retailer and parent of the Zara fashion chain. The Arteixo, Spain-based company operates more than 6,000 stores and, in 2012, had revenue of 16 billion euros and net income of 2.4 billion euros. Through two closely held investment companies, Ortega also holds office and retail property in major cities throughout Europe and the U.S.
  • This is another example of the massive opportunity for Return on Intellectual Capital–machine-based intellectual capital in the from of information and algorithms combined with human intellectual capitalhttp://www.mckinsey.com/insights/business_technology/open_data_unlocking_innovation_and_performance_with_liquid_informationOpen data—machine-readable information, particularly government data, that’s made available to others—has generated a great deal of excitement around the world for its potential to empower citizens, change how government works, and improve the delivery of public services. It may also generate significant economic value, according to a new McKinsey report.1 Our research suggests that seven sectors alone could generate more than $3 trillion a year in additional value as a result of open data, which is already giving rise to hundreds of entrepreneurial businesses and helping established companies to segment markets, define new products and services, and improve the efficiency and effectiveness of operations.Although the open-data phenomenon is in its early days, we see a clear potential to unlock significant economic value by applying advanced analytics to both open and proprietary knowledge. Open data can become an instrument for breaking down information gaps across industries, allowing companies to share benchmarks and spread best practices that raise productivity. Blended with proprietary data sets, it can propel innovation and help organizations replace traditional and intuitive decision-making approaches with data-driven ones. Open-data analytics can also help uncover consumer preferences, allowing companies to improve new products and to uncover anomalies and needless variations. That can lead to leaner, more reliable processes.However, investments in technology and expertise are required to use the data effectively. And there is much work to be done by governments, companies, and consumers to craft policies that protect privacy and intellectual property, as well as establish standards to speed the flow of data that is not only open but also “liquid.” After all, consumers have serious privacy concerns, and companies are reluctant to share proprietary information—even when anonymity is assured—for fear of losing competitive advantage.

Transcript

  • 1. n.moneypenny@manyworlds.com
  • 2. “Show Me the” www.Synxi.com
  • 3.   
  • 4. ROA ROIC Historical Returns ROA has fallen dramatically. What is the solution?? Answer: Leverage the superior Returns on Intellectual Capital (ROIC) to improve ROA! Source: ManyWorlds Research
  • 5. “The good news is that the variety and volume and quality of things that we’ll be able to consume will go up, and the prices will go down. The challenge comes from the fact that if this encroachment really is happening quicker, more broadly, and deeper than before, the phenomenon is that technology is going to race ahead.”
  • 6. Business Value Drivers Value Drivers Productivity Information and Decision Quality Innovation and Growth • Revenue Increases • R&D Throughput • Operating Margin Increases • Capital Expenditures ROI Increases • Operating Margin Increases • Increased Output • Operating Expense Reductions Example Financial Impact
  • 7. Data Information Insights Institutionalized Insights & Processes Findings Value = Conversion to Intellectual Capital Data Acquisition Data Filtering Data Storage Search & Discovery Predictive Analytics Process & Collaborate Data-to-Action Lifecycle Decide Act Source: ManyWorlds Research
  • 8. Experimentation Evolving Established Extended Maturity Level Productivity Information and Decision Quality Innovation and Growth Business Value Driver • Business Intelligence • Expertise Management • Process Efficiency • One Source of Truth • Skill and Asset Mapping • Info Silo Busting • Business Intelligence • Expertise Discovery • Process Integration • Process Efficiency • Org Silo Busting • Info Silo Busting • Interest Discovery • Collaborative Design w/Suppliers and Customers • Interest Discovery
  • 9. ERPs are the embodiment of business process reengineering efforts. BUSINESS-DRIVEN SharePoint grew from file shares, document/records management. IT-DRIVEN
  • 10. • • • • Fuzzy business objectives: Only 55% feel that the business objectives of their projects are clear to them. • Requirements definition processes do not reflect business need: Less than 20% describe the requirements process as the articulation of business need. • Source: Geneca
  • 11.  
  • 12.
  • 13. The average $1 billion company maintains 48 disparate financial systems and uses 2.7 ERP systems The Hackett Group
  • 14. An Opportunity Exists to Bridge the GapDo You Face These Challenges? Extend the value of your LOB systems Connect SharePoint to LOB/backend systems Surface LOB data via SharePoint Deliver business-critical solutions
  • 15. 1st Year ROI $200-$300K Annual cost savings 50-80% Shorter cycle time up to 90% Fewer errors/re-work 60% Faster deployment 95% Fewer IT support hours The Connected Value of ROI
  • 16. World’s largest fashion retailer. Zara delivers new products twice each week to its 1,670 stores around the world. This adds up to more than 10,000 new designs each year
  • 17. Open data can help unlock $3 trillion to $5 trillion in economic value across seven sectors Apply Advanced Analytics to Both Open and Proprietary Knowledge
  • 18.      Source: ManyWorlds Research
  • 19. Experimentation Evolving Established Extended Maturity Level Productivity Information and Decision Quality Innovation and Growth Business Value Driver • Business Intelligence • Expertise Management • Process Efficiency • One Source of Truth • Skill and Asset Mapping • Info Silo Busting • Business Intelligence • Expertise Discovery • Process Integration • Process Efficiency • Org Silo Busting • Info Silo Busting • Interest Discovery • Collaborative Design w/Suppliers and Customers • Interest Discovery
  • 20. Experimentation Evolving Established Extended Maturity Level Productivity Information and Decision Quality Innovation and Growth Business Value Driver • Business Intelligence • Expertise Management • Process Efficiency • One Source of Truth • Skill and Asset Mapping • Info Silo Busting • Business Intelligence • Expertise Discovery • Process Integration • Process Efficiency • Org Silo Busting • Info Silo Busting • Interest Discovery • Collaborative Design w/Suppliers and Customers • Interest Discovery
  • 21. Experimentation Evolving Established Extended Maturity Level Productivity Information and Decision Quality Innovation and Growth Business Value Driver • Business Intelligence • Expertise Management • Process Efficiency • One Source of Truth • Skill and Asset Mapping • Info Silo Busting • Business Intelligence • Expertise Discovery • Process Integration • Process Efficiency • Org Silo Busting • Info Silo Busting • Interest Discovery • Collaborative Design w/Suppliers and Customers • Interest Discovery
  • 22.   