De-Mystifying ROI Calculation for SharePointSarah Haase, The SharePoint Librarian@sarahhaasehttp://sarahlhaase.wordpress.c...
Collaboration & Search EngineerTechnical writerCMS/KM implementation & supportInformation architectLibrarianUser adoption ...
• Reduce email                               • Focus on                                  • Leverage all                   ...
Businesses shouldn’t be run via spreadsheets          stored on shared drives.
Left to their own devices, well-intentioned   people will live in information chaos.
Your SharePoint solution isn’t complete until     you’ve measured its effectiveness.
ROI is meaningless without context.
Agenda•   What is ROI?•   What does good ROI look like?•   Units of measure & common methodologies•   Building your valuat...
What is ROI?
ROI is…•   A cool acronym•   A method of quantifying benefits reaped•   A way to “feel good” about an investment•   A way ...
BETTER measurements      Shortened       Quantifiable      Quantifiable       business       drop in user        drop in  ...
The hard part is…people don’t understand how to make the leap in their organization
Quantitative ROI                                              Qualitative ROI       Money                             Emot...
For most for-profit companies, cash is king.In some cases, SharePoint may (in and of itself)be a revenue stream. But for m...
Tool elimination example                                                 Expenditure                                      ...
TIME savings
Base formula    Time to                    # of       Hourly    Process   complete                 iterations   $$$ rate  ...
Base formula    Time to                          # of            Hourly        Process   complete                       it...
“Before” process   cost            Cost           savings“After”            (ROI)process  cost
Evolution of work& Emotional ROI
Key “emotional” factors•   Push content to the right people at the right time•   Eliminate the “soul crushing” work•   Don...
User             stories                   SurveysSharePoint  usage metrics                   Interviews             Serio...
- Sue HanleyA Practical Framework for SharePoint Metrics  http://www.susanhanley.com/white-papers.htm
Step 1: Find what is needed• Ask questions:   –   What do we value?   –   How do we work? (aka how formal are we?)   –   W...
Step 2: Plant your stake                                     Define                 Pick a focus                          ...
Step 3: Take baseline measurements
Step 4: Define success criterion From the general                                      To the specific Reduce duplicate st...
Step 5: Calculate your ROI•   Be consistent•   Answer the “What’s in it for me?” question•   Phrase your success in real $...
Step 6: Spread the word•   Money talks•   Build your elevator speech•   Partner, don’t conquer•   Don’t forget the higher-...
Sarah Haase,The SharePoint Librarian@sarahhaasehttp://sarahlhaase.wordpress.com/sarah@splibrarian.onmicrosoft.com
De-Mystifying ROI Calculation for SharePoint
De-Mystifying ROI Calculation for SharePoint
De-Mystifying ROI Calculation for SharePoint
Upcoming SlideShare
Loading in...5
×

De-Mystifying ROI Calculation for SharePoint

3,953

Published on

ROI is a "fancy" acronym for Return on Investment. While ROI implies success, it usually involves mysterious mathematical formulas that many people can't see or understand. So how does an everyday SharePoint business owner tackle the ROI puzzle? Do you just "flip the switch" on your implementation and move on? Or are you so busy with post-launch support that you don't have time to circle back and quantify your results?


This session will help you demonstrate the business value for your SharePoint implementation. We'll examine common ROI calculation methodologies while providing strategies for identifying your ROI niche and quantifying the business value of your SharePoint implementation.

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
3,953
On Slideshare
0
From Embeds
0
Number of Embeds
6
Actions
Shares
0
Downloads
105
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Transcript of "De-Mystifying ROI Calculation for SharePoint"

  1. 1. De-Mystifying ROI Calculation for SharePointSarah Haase, The SharePoint Librarian@sarahhaasehttp://sarahlhaase.wordpress.com/
  2. 2. Collaboration & Search EngineerTechnical writerCMS/KM implementation & supportInformation architectLibrarianUser adoption enthusiastCode-free SharePoint solution builderAuthor
  3. 3. • Reduce email • Focus on • Leverage all Community development Information architecture dependency structured knowledge data assets • Provide just-Process optimization in-time • Incorporate • Build tools information taxonomies people want for efficient to use • Build retrieval automated • Folksonomies workflow • Focus on lists, (tagging for processes not libraries the masses)
  4. 4. Businesses shouldn’t be run via spreadsheets stored on shared drives.
  5. 5. Left to their own devices, well-intentioned people will live in information chaos.
  6. 6. Your SharePoint solution isn’t complete until you’ve measured its effectiveness.
  7. 7. ROI is meaningless without context.
  8. 8. Agenda• What is ROI?• What does good ROI look like?• Units of measure & common methodologies• Building your valuation roadmap
  9. 9. What is ROI?
  10. 10. ROI is…• A cool acronym• A method of quantifying benefits reaped• A way to “feel good” about an investment• A way to offset opportunity costs• A method for validating good decisions• An afterthought
  11. 11. TYPICAL measurements Number of sites Successful upgrade Business adoption and site collections Percentage of “business critical” Space consumption Business reliance docs stored in SharePoint
  12. 12. BETTER measurements Shortened Quantifiable Quantifiable business drop in user drop in processes confusion “hunting” time Use in place of Successful Actual dollar expensive replacement of savings alternatives legacy systems
  13. 13. The hard part is…people don’t understand how to make the leap in their organization
  14. 14. Quantitative ROI Qualitative ROI Money Emotional -Increased revenue -Improved employee morale -Eliminated tools -Elimination of unpopular tasks -Increased productivity -Reduced user confusion -Lowered overhead per sale -Happier customers Time Evolution of work -Streamlined business processes -Ability to focus on higher-value tasks -Just-in-time (JIT) information -More automation, fewer mistakes -Less rework -Simplify the “hairball” -Faster time-to-market -Reduce employee turnover
  15. 15. For most for-profit companies, cash is king.In some cases, SharePoint may (in and of itself)be a revenue stream. But for many of us,SharePoint represents “soft money”—akamoney that we can avoid spending on a varietyof other tools. Or money we can save bylowering our overhead costs and decreasingour time-to-market.
  16. 16. Tool elimination example Expenditure $800,000 • “Proof of concept” $700,000 – Speed to Market $600,000 – Low / No Cost $500,000 – Leveraged existing platform $400,000 – Minimal infrastructure cost $300,000 – Leverage existing resources $200,000 – Quick to deploy & modify $100,000 $0 New Sharepoint Application
  17. 17. TIME savings
  18. 18. Base formula Time to # of Hourly Process complete iterations $$$ rate cost 1 iteration
  19. 19. Base formula Time to # of Hourly Process complete iterations $$$ rate cost 1 iteration 15 minutes $650 4 hours x 52 times/year x $50/hour = $10,400
  20. 20. “Before” process cost Cost savings“After” (ROI)process cost
  21. 21. Evolution of work& Emotional ROI
  22. 22. Key “emotional” factors• Push content to the right people at the right time• Eliminate the “soul crushing” work• Don’t make them have 45 windows open at once• Make your employees & customers happy• Personal measure of “What’s in it for me?”• Ability to focus on higher value-add tasks• Don’t take it away!
  23. 23. User stories SurveysSharePoint usage metrics Interviews Serious anecdotes
  24. 24. - Sue HanleyA Practical Framework for SharePoint Metrics http://www.susanhanley.com/white-papers.htm
  25. 25. Step 1: Find what is needed• Ask questions: – What do we value? – How do we work? (aka how formal are we?) – What matters to management? – What does “good” look like? – How do we talk about our successes & failures?• Find examples of success and backtrack
  26. 26. Step 2: Plant your stake Define Pick a focus checkpoints on area your route Build a Define your timeline & plan role for delivery Determine Garner support training needs
  27. 27. Step 3: Take baseline measurements
  28. 28. Step 4: Define success criterion From the general To the specific Reduce duplicate storage of content Eliminate 15GB in duplicated storage within 6 months Reduce time it takes to complete a business process Reduce weekly overhead of XXX process by 15% Generate value Generate $250,000 in BPR savings within 1 year
  29. 29. Step 5: Calculate your ROI• Be consistent• Answer the “What’s in it for me?” question• Phrase your success in real $$$• Unite quantitative & qualitative metrics for a richer experience• Add up all the ROI for every project• Think about your delivery mechanism
  30. 30. Step 6: Spread the word• Money talks• Build your elevator speech• Partner, don’t conquer• Don’t forget the higher-ups
  31. 31. Sarah Haase,The SharePoint Librarian@sarahhaasehttp://sarahlhaase.wordpress.com/sarah@splibrarian.onmicrosoft.com

×