• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
The ROI of Collaboration featuring research from Forrester
 

The ROI of Collaboration featuring research from Forrester

on

  • 647 views

 

Statistics

Views

Total Views
647
Views on SlideShare
636
Embed Views
11

Actions

Likes
2
Downloads
24
Comments
0

1 Embed 11

https://connections.bea-services.com 11

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    The ROI of Collaboration featuring research from Forrester The ROI of Collaboration featuring research from Forrester Presentation Transcript

    • The Total Economic Impact™ of TIBCO Software’s tibbr Adrienne Breslin, Project Director TEI Consultant, Forrester Research Rob Koplowitz Vice President and Principal Analyst, Forrester Research Leandro Perez Director, Product Marketing, TIBCO Software Inc. There will be silence until we begin today’s presentation. Today’s twitter hashtag is #tibbr
    • Disclosures The audience should be aware of the following: • This document is an abridged webinar version of a full case study (Forrester Total Economic Impact of TIBCO Software’s tibbr, February 2014). • The study is commissioned by TIBCO Software and delivered by the Forrester Consulting group. • Forrester makes no assumptions as to the potential return on investment that other organizations will receive. Forrester strongly advises that readers should use their own estimates within the framework provided in the report to determine the appropriateness of an investment in tibbr. • TIBCO Software reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study. • The customer names for the interview were provided by TIBCO Software. • Forrester does not endorse TIBCO Software. © 2012 Forrester Research, Inc. Reproduction Prohibited 2
    • Table of Contents Introduction What is TEI? Executive Summary Analysis Interview Highlights Benefits Costs Flexibility Risk Financial Summary Question and Answer © 2012 Forrester Research, Inc. Reproduction Prohibited 3 Please note: this slide presentation is an abridged, graphical, and complementary representation of a full case study. For a full explanation of methodology and details on model calculations, please refer to the full case study (Forrester Total Economic Impact of TIBCO Software’s tibbr, February 2014).
    • 4 © 2012 Forrester Research, Inc. Reproduction Prohibited What is TEI?
    • Do I need a business case? 5 © 2012 Forrester Research, Inc. Reproduction Prohibited 33%, Somewhat important 4%, Somewhat unimportant 3%, Not at all important 60%, Very important Base: 825 IT decision-makers at North American enterprises • Over 90% of IT decision-makers find value in a business case • Decision-makers will likely want to apply standard criteria/factors to investment opportunities
    • What is an effective business case? • TCO and ROI only tells the story of costs and quantified benefits • TEI adjusts for risks and factors the flexibility of a product into the case study © 2012 Forrester Research, Inc. Reproduction Prohibited 6 Investment Impact Categories TCO ROI TEI IT Impact IT costs    IT cost savings    Business Impact User efficiency   Business effectiveness   Risk and Uncertainty Risk mitigation  Risk vs. reward  Strategic Impact Scalability  Flexibility 
    • TEI Framework and Components 7 © 2012 Forrester Research, Inc. Reproduction Prohibited Total Economic Impact RISK Benefits (Impact on Business) Costs (Impact on Budget) Flexibility (Options) Perform due diligence Conduct customer interview Construct financial model Write case study Conduct webinar The TEI framework centers on quantifying benefits, capturing costs, evaluating flexibility, and adjusting risk. TEI Approach and Methodology
    • 8 © 2012 Forrester Research, Inc. Reproduction Prohibited Executive Summary
    • tibbr improves workforce productivity and effectiveness through collaboration • Forrester was commissioned by TIBCO Software to examine the financial benefit of tibbr. • tibbr is a workplace social networking platform that enables employees to collaborate, share, and engage with one another, regardless of location or business function • Based on an analysis of tibbr’s customer feedback and quantified benefits, costs, risks, and flexibility, Forrester has determined that tibbr has a three-year risk-adjusted ROI of 333% with a payback period of 7.7 months 9 Executive Summary Three-Year Risk-Adjusted Financial Snapshot Source: tibbr website and marketing © 2014 Forrester Research, Inc. Reproduction Prohibited Source: Forrester Total Economic Impact of TIBCO Software’s tibbr, a commissioned study conducted by Forrester Consulting on behalf of TIBCO Software, February 2014 ROI: 333% Payback period: 7.7 months
    • 10 © 2014 Forrester Research, Inc. Reproduction Prohibited Analysis › Interview Highlights › Benefits › Costs › Flexibility › Risk
    • Interview Details A leading professional services company, with 145,000 employees dispersed over 152 countries. About 60,000 users are currently set up on tibbr across 20 countries, in their phased global rollout. A global energy management company with more than 150,000 employees, with a presence in over 120 countries. All employees have access to tibbr, with 51,000 users that log in each week. © 2014 Forrester Research, Inc. Reproduction Prohibited 11 Interviews were conducted for this study involving representatives from the following two TIBCO customers:
    • Interview Highlights Collaboration is a critical part of business. Traditional means of collaboration were not enough. Integration, security, and a strong vendor were key factors in selecting a social collaboration platform. tibbr was easy to use and intuitive. © 2014 Forrester Research, Inc. Reproduction Prohibited 12 Our interviews uncovered the following drivers behind their search for a workplace collaboration platform:
    • Interview Highlights © 2014 Forrester Research, Inc. Reproduction Prohibited 13 “The challenge is that [the legacy systems] don’t support flexible, open communication outside of a formal team. That’s where the real impact of tibbr is.”
    • Interview Highlights © 2014 Forrester Research, Inc. Reproduction Prohibited 14 “The challenge is that [the legacy systems] don’t support flexible, open communication outside of a formal team. That’s where the real impact of tibbr is.” “We found that what really matters is making sure that you can work with a vendor or a tool that supports you and is interested in innovating with you as a customer. TIBCO has shown an incredible commitment to working with us.”
    • Interview Highlights © 2014 Forrester Research, Inc. Reproduction Prohibited 15 “The challenge is that [the legacy systems] don’t support flexible, open communication outside of a formal team. That’s where the real impact of tibbr is.” “We found that what really matters is making sure that you can work with a vendor or a tool that supports you and is interested in innovating with you as a customer. TIBCO has shown an incredible commitment to working with us.” “tibbr is simple, easy to use, and available on any mobile device. Not too many of our applications can claim that.”
    • Benefit Summary © 2014 Forrester Research, Inc. Reproduction Prohibited Source: Forrester Total Economic Impact of TIBCO Software’s tibbr, a commissioned study conducted by Forrester Consulting on behalf of TIBCO Software, February 2014 Benefits Cost Savings from Improved Business Processes Reduced Cost of Communicating To Employees Better Innovation and Idea Management Faster Employee Onboarding Improved Workforce Productivity
    • Benefit Summary 1) Improved Workforce Productivity • Enables employees to have better access to people and info across company • Gets info faster regardless of function or location 2) Faster Employee Onboarding • Supports new employees in training and coming up to speed • Provides key info as they learn new position, shortening ramp-up times 3) Cost Savings From Improved Business Processes • Helps employees improve on existing processes, creating efficiency and cost savings 4) Reduced Costs of Companywide Communication to Dispersed Employees • Offers easier means of communicating with employees spread over distributed sites and time zones. 5) Better Innovation and Idea Management • Provides platform for employees to share ideas and aids in management and aggregation of ideas © 2014 Forrester Research, Inc. Reproduction Prohibited Source: Forrester Total Economic Impact of TIBCO Software’s tibbr, a commissioned study conducted by Forrester Consulting on behalf of TIBCO Software, February 2014 Benefits
    • Forrester TEI: Composite Organization 18 © 2014 Forrester Research, Inc. Reproduction Prohibited Source: Forrester Total Economic Impact of TIBCO Software’s tibbr, a commissioned study conducted by Forrester Consulting on behalf of TIBCO Software, February 2014 • For this TEI study, Forrester created a composite organization to illustrate the quantifiable costs and benefits of implementing tibbr • The composite organization is based on the interviews with the existing customers provided by tibbr • The Forrester TEI framework is based on the experiences of the composite company, as is the associated ROI analysis that illustrates the areas affected financially. • The composite organization that Forrester synthesized represents an organization with the following attributes: › A globally dispersed company based in the US. › 145,000 employees in offices located across 136 countries. › 60% actively use tibbr, or 60,900 employees.
    • • tibbr enables employees to better collaborate with peers across functional and geographical boundaries • tibbr aided employees in doing their overall jobs better with better access to people and information • Mobile is a factor in increased productivity Largest Benefit From Improved Workforce Productivity 19 © 2014 Forrester Research, Inc. Reproduction Prohibited Source: Forrester Total Economic Impact of TIBCO Software’s tibbr, a commissioned study conducted by Forrester Consulting on behalf of TIBCO Software, February 2014 Benefits Ref. Metric Calculation Year 1 Year 2 Year 3 A1 Number of employees on tibbr 50,000 55,450 60,900 A2 Average fully loaded salary per person $75,000.00 $75,000.00 $75,000.00 A3 Percentage productivity improvement 0.5% 0.9% 1.2% A4 Percent of time captured 50% 50% 50% At Improved workforce productivity A1*A2*A3*A4 $9,375,000 $18,714,375 $27,405,000
    • • New employees have a place to search for answers to questions around training and onboarding • interviewed organizations found that many questions are already out there in tibbr › tibbr enables these new employees to quickly search for and find the information to their question, where someone else has already asked and answered the question. Faster Employee Onboarding and Training 20 © 2014 Forrester Research, Inc. Reproduction Prohibited Source: Forrester Total Economic Impact of TIBCO Software’s tibbr, a commissioned study conducted by Forrester Consulting on behalf of TIBCO Software, February 2014 Benefits Ref. Metric Calculation Year 1 Year 2 Year 3 B1 Employee turnover 4.00% 4.00% 4.00% B2 Number of employees 145,000 145,000 145,000 B3 Annual salary $75,000.00 $75,000.00 $75,000.00 B4 Estimated training cost per employee as percentage of salary 10% 10% 10% B5 Estimated reduction of training time 2% 2% 2% Bt Faster employee onboarding/training B1*B2*B3*B4* B5 $870,000 $870,000 $870,000
    • • Prior to tibbr, workgroups were working in silos and lacked the ability to see and understand how other internal processes and external projects were being done. • By implementing tibbr, these issues were brought to the surface, › employees began to work together and leverage the experience of other groups to improve their own processes and projects. › Avoided reinventing the wheel • This benefit was further impacted by tibbr’s ability to connect with other applications within the organization Cost Savings From Improved Business Processes 21 © 2014 Forrester Research, Inc. Reproduction Prohibited Source: Forrester Total Economic Impact of TIBCO Software’s tibbr, a commissioned study conducted by Forrester Consulting on behalf of TIBCO Software, February 2014 Benefits Ref. Metric Calculation Year 1 Year 2 Year 3 C1 Number of processes affected within the organization 5 8 10 C2 Number of hours saved per process 5 min/60 min 0.0830 0.0830 0.0830 C3 Number of employees benefiting from improved processes 50,000 57,000 60,900 C4 Average fully loaded salary per person ($75,000/2,08 0 work hours a year) $36.05 $36.05 $36.05 Ct Cost savings from improved internal and external business processes C1*C2*C3*C4 $748,038 $1,364,420 $1,822,219
    • Reduced Costs of Companywide Communication to Dispersed Employees An Investment In tibbr Helps Companies Save Money 22 © 2014 Forrester Research, Inc. Reproduction Prohibited Source: Forrester Total Economic Impact of TIBCO Software’s tibbr, a commissioned study conducted by Forrester Consulting on behalf of TIBCO Software, February 2014 Reduces the need for formal processes for communication Innovation and Idea Management Calculation focuses specifically on time and money saved in managing and aggregating these ideas Avoided cost of $101,661 Avoided cost of $121,993 Benefits
    • Benefit Breakdown Over the Three-Year Analysis 23 Three-Year Non-Risk-Adjusted Benefits Benefit Year 1 Year 2 Year 3 Total Improved workforce productivity $8,812,500 $17,591,513 $25,760,700 $52,164,713 Faster employee onboarding/training $817,800 $817,800 $817,800 $2,453,400 Cost savings from improved business processes $703,155 $1,282,555 $1,712,886 $3,698,597 Reduced costs of communicating to broad audiences $30,498 $40,664 $50,831 $121,993 Innovation and idea management $27,110 $33,887 $40,664 $101,661 Total benefits $10,391,063 $19,766,419 $28,382,881 $58,540,363 © 2014 Forrester Research, Inc. Reproduction Prohibited Source: Forrester Total Economic Impact of TIBCO Software’s tibbr, a commissioned study conducted by Forrester Consulting on behalf of TIBCO Software, February 2014 Benefits
    • Costs Summary Yearly Licensing and Maintenance Costs • The annual billable cost of tibbr Professional service fee • One-time cost paid to TIBCO for professional services helping with the planning, implementation, and training for the tibbr investment Internal administrative support costs • The annual administration fee to support the tibbr investment. • This includes both the internal IT resources, as well as the cost of offshore reviewers. Planning, implementation, training, and adoption costs • This is the cost associated with planning the tibbr deployment, and developing training materials and content to drive adoption of tibbr. © 2014 Forrester Research, Inc. Reproduction Prohibited Source: Forrester Total Economic Impact of TIBCO Software’s tibbr, a commissioned study conducted by Forrester Consulting on behalf of TIBCO Software, February 2014 Three-Year Non-Risk-Adjusted Costs Costs Initial Year 1 Year 2 Year 3 Total Total costs ($4,223,375) ($3,778,688) ($3,778,688) ($124,688) ($11,905,438 )
    • Flexibility and Risk Components of tibbr 25 Flexibility • Flexibility represents an investment in additional capacity or capability that could be turned into business benefit for some future additional investment. • Organizations can easily expand their use of Tibbr Risks • Risk is used as a filter to capture the uncertainty surrounding different cost and benefit estimates. • The risk-adjusted numbers should be taken as “realistic” expectations, since they represent the expected values considering risk. • In general, risks affect costs by raising the original estimates and they affect benefits by reducing the original estimates. *Please refer to Appendix slides for details on how to use the risk adjustment table © 2014 Forrester Research, Inc. Reproduction Prohibited Source: Forrester Total Economic Impact of TIBCO Software’s tibbr, a commissioned study conducted by Forrester Consulting on behalf of TIBCO Software, February 2014
    • 26 © 2014 Forrester Research, Inc. Reproduction Prohibited Financial Summary
    • Comparison of Risk and Non-Risk Adjusted Cash Flows 27 Three-Year Risk-Adjusted Cash Flow Initial Year 1 Year 2 Year 3 Total PV Costs ($4,223,375) ($3,778,688) ($3,778,688) ($124,688) ($11,905,438) ($10,875,107) Benefits $0 $10,391,063 $19,766,419 $28,382,881 $58,540,363 $47,106,783 Net Benefits ($4,223,375) $6,612,376 $15,987,732 $28,258,194 $46,634,926 $36,231,676 ROI 333% Payback Period 7.7months © 2014 Forrester Research, Inc. Reproduction Prohibited Source: Forrester Total Economic Impact of TIBCO Software’s tibbr, a commissioned study conducted by Forrester Consulting on behalf of TIBCO Software, February 2014 Three-Year Non-Risk-Adjusted Cash Flow FlowInitial Year 1 Year 2 Year 3 Total PV Costs ($4,211,500) ($3,772,750) ($3,772,750) ($118,750) ($11,875,750) ($10,848,467) Benefits $0 $11,054,323 $21,028,105 $30,194,554 $62,276,982 $50,113,599 Net Benefits ($4,211,500) $7,281,573 $17,255,355 $30,075,804 $50,401,232 $39,265,133 ROI 362% Payback Period 6.9 months
    • The three-year risk-adjusted cash flow for tibbr shows a positive ROI of 333%, with a payback period of 7.7 months. 28 Three-Year Risk-Adjusted Cash Flow Initial Year 1 Year 2 Year 3 Total PV Costs ($4,223,375) ($3,778,688) ($3,778,688) ($124,688) ($11,905,438) ($10,875,107) Benefits $0 $10,391,063 $19,766,419 $28,382,881 $58,540,363 $47,106,783 Net Benefits ($4,223,375) $6,612,376 $15,987,732 $28,258,194 $46,634,926 $36,231,676 ROI 333% Payback Period 7.7months © 2014 Forrester Research, Inc. Reproduction Prohibited Source: Forrester Total Economic Impact of TIBCO Software’s tibbr, a commissioned study conducted by Forrester Consulting on behalf of TIBCO Software, February 2014
    • Q&A
    • Take tibbr for a test drive.