Building Bullet Proof SharePoint Business CasesPresentation Transcript
How We Do It: Building Bulletproof SharePoint Business Cases For World Class OrganisationsJanuary 2013Symon Garfield – Head of Business Consulting
Connect, communicate, collaborateSymon GarfieldHead of Business ConsultingSymon.firstname.lastname@example.org://www.foundation-sp.comhttp://www.symongarfield.me.uk http://www.twitter.com/symon_garfield http://www.LinkedIn.com/symon_garfield
Why are we here? “Unfortunately they haven’t produced any slides about the financial benefits, not entirely sure why but I guess it’s because no-one has come up with any figures ” Global law firm in reference to the business case for their intranet
What am I going to talk about?1 Who am I?2 What is a „business case‟ anyway?3 What are the costs of SharePoint?4 What are the benefits of SharePoint?5 What have we been talking about?6 Questions?
Introducing Foundation SP
What Is A Business CaseAnyway?
It‟s the justification for a change project
Why do we need a business case? Understanding the current situation & opportunities Gain funding for a proposed project Prioritisation and selection of projects Successful co-ordination of stakeholders Evaluation of success
What are the dimensions of a business case?
What‟s a right brained business case?
What‟s a left-brained business case? Cost of Capital 10.0% Year 1 Year 2 Year 3 Total “Don’t get hung up on Cash In -450,000 0 0 -450,000 ROI” Cash Out 75,000 75,000 75,000 225,000 Net Cash flow -375,000 75,000 75,000 -225,000 Multiple 0.50 ROI (%) 50.00 IRR -44.2% NPV -£222,577.01 TCO £ 450,000 Pay Back Period (years) 6
What are the costs of aSharePoint project?
Capital expenditureHardware / virtualisationSoftware licensesProfessional services – infrastructureProfessional services – softwareProfessional services – roll out and change
Operating expenditureFull time employees – technicalFull time employees – business3rd party supportHosting or usage costs for cloud / hostedsolution
Lessons Learnt “We should have been more honest with ourselves about the on-going costs” – Project manager for a SharePoint based collaboration project at a European Central bank in a project review meeting
What are the benefits ofSharePoint?
SharePoint has no benefits! “Technology provides no benefits of its own; it is the application of technology to business opportunities that produces ROI” Robert McDowell, “In Search Of Business Value”
Are there really no benefits from technology?
Two steps to success: Step 1 What are you trying to do?
Two steps to success: Step 2 How will you know when you‟ve done it?
Clear objectives? “There is no greater “A problem well stated is a impediment to knowledge problem half solved” than the ambiguity of words” Charles Kettering (1876 - Thomas Reid (1710 – 1769), 1958), American inventor Scottish Philosopher
What is SharePoint? “What is SharePoint? This is still a question I get asked when out visiting customers... It’s kind of magical in a certain way. It’s a really special kind of product... It’s kinda like an operating system”Ballmer, Steve (2009), Keynote speech at the Microsoft SharePoint Conference 2009, Las Vegas, USA
What is this organisation trying to do? “In essence, staff want to work together, to share knowledge, to work informally, to communicate, to connect across boundaries, and to innovate. They want to move from a set of happy families defined by organisational structure to a networked community” UK Public sector SharePoint RFP 2010
What is this organisation trying to do? “To create a collaborative and inclusive knowledge management platform that connects [employees] around the world, no matter if they are sitting at a desk or based in the field, through strong design, relevant and value added content, robust tools, training and governance, and reflects business objectives and best practice community that makes us one [client name] UK Private sector SharePoint Intranet RFP 2012
What is this organisation trying to do? “The development of a global intranet will revolutionise the way [our] people locate and communicate with one another, and how they share information, innovation and best practice. It will be one central hub for people to find, share and contribute information and it will replace isolated failed ventures… has the ability to improve employee effectiveness and productivity Global media organisation Intranet RFP 2012
Is this the most useful model ever? Strategy Business Processes Technology
Could you make it more complex please?
Developing your SharePoint strategy
Great. But have you got any examples?
Why are SharePoint business cases so difficult? Solutions Capabilities
The productivity myth Productivity = output / input
The cost of searching for information 1. Time spent searching 2. Cost of re-working 3. Opportunity
Final thought “You can’t manage what you can’t measure and you can’t measure what you can’t describe” Kaplin and Norton (2004), “Strategy Maps”
What have we beentalking about?
Key messages1. A business case is the justification for a change project2. It tells the story of What? Why? And how?3. It has left-brained and right-brained dimensions4. Costs are easy to identify and measure5. But don‟t underestimate operating expenditure especially for user adoption6. Technology has no benefits unless applied to a problem or opportunity7. Benefits are difficult to estimate if you don‟t know what you are trying to do, or how you will know when you‟ve done it8. Organisations achieve objectives through processes underpinned by technology9. Strategy mapping can help understand cause and effect chains10. Implement process specific solutions or generic capabilities