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Project Conference '14: ROI Accelerating Your Time to Value PC238

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Get on the fast track to multiplying business value with Project Online. Economic justification and an analysis of both concrete and qualitative savings will be explored. Tad and Cindy will take a fun fresh look at this important trend and topic.

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Project Conference '14: ROI Accelerating Your Time to Value PC238

  1. 1. What independent evidence is out there?
  2. 2.    
  3. 3.    
  4. 4. Considerations
  5. 5. Up and running quickly Shorter learning curve for online Respond to CXO’s desire for Software change and always up to improve-ment date Remote, multidevice, access information anywhere Don’t have to deal with system admin
  6. 6. What do you consider when evaluating the ROI of online applications?
  7. 7. Accelerating ROI
  8. 8. Goal – up and running as fast as possible Configure during deployment
  9. 9. PM Maturity Proof of Concept Deployment Portfolio Selection Resource Management Business Processes Security Options Task Updates/ Timesheets
  10. 10. Recognizing Value with Project Online at Major Automotive Retailer
  11. 11. Easily collaborate with others to quickly start and deliver winning projects Easily plan and manage your projects Manage anywhere Give effective presentations Anticipate change Save time & effort Work seamlessly across tools Communicate in real time Discover and share info Explore the Office Store Try Project Pro for Office 365
  12. 12. TCO Comparison
  13. 13. Automotive Retailer is evaluating the options of deploying Project Online and Project server for 60 Project Pro for Office 365 users and 460 Project Online users. Evaluating the total cost of ownership over six years show that Automotive Retailer can expect to save about 19% on Project Online. Annual TCO Over Six Years 350,000 300,000 250,000 Deployment 200,000 Operations 3rd Party SW 150,000 MS Software 100,000 Hardware 50,000 Project Server Project Online Total Hardware Microsoft Software and Services 3rd Party Software and Services Operations Deployment and Migration Total Annual Cost for 6 years Total Annual Cost per User Average Monthly Cost per User % difference versus on-premises Project Server US$ 32,731 US$ 70,498 US$ US$ 185,564 US$ 14,379 US$ 303,171 US$ 757.93 US$ 63.16 Project Online US$ US$ 189,403 US$ US$ 55,040 US$ 490 US$ 244,933 US$ 612.33 US$ 51.03 -19%
  14. 14. Cumulative Costs Over 6 Years 2,000,000 Cost Comparison 600,000 1,800,000 500,000 1,600,000 1,400,000 400,000 1,200,000 1,000,000 Project Server 800,000 Project Server Project Online 300,000 Project Online 200,000 600,000 400,000 100,000 200,000 - Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 This chart shows the total cost over the 6-year period for Project Online is $349,430 less than the cost for Project Server. Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 This chart shows the annual cost for the two options over a 6-year period. The chart makes it easy to see when costs are incurred for each option.
  15. 15. This table shows the details behind the Project Online TCO numbers. Costs are shown for Hardware, 3rd Party Software and Services, Operations, Deployment, and Microsoft Software and Services. Project Hardware 3rd Party Software and Services Operations Deployment and Migration US$ US$ US$ US$ Microsoft Software and Services US$ Total US$ Year 1 Project Online 55,040 980 ? ? ? ? 189,403 ? 245,423 Year 2 Project Online 55,040 980 ? ? ? ? 189,403 ? 245,423 Year 3 Project Online 55,040 980 ? ? ? ? 189,403 ? 245,423 Year 4 Project Online 55,040 - ? ? ? ? 189,403 ? 244,443 Year 5 Project Online 55,040 - ? ? ? ? 189,403 ? 244,443 Year 6 Project Online 55,040 - ? ? ? ? Average 55,040 490 189,403 ? 189,403 244,443 244,933
  16. 16. This table shows the details behind the Project Server TCO numbers. Costs are shown for Hardware, 3rd Party Software and Services, Operations, Deployment, and Microsoft Software and Services. Costs have also been included for SharePoint Server since it is required for a Project Server deployment. The full cost of upgrading to the latest version of SharePoint and operating the SharePoint environment is included in this analysis. Project Hardware 3rd Party Software and Services Operations Deployment and Migration US$ US$ US$ US$ Year 1 Project 2013 38,528 104,080 10,192 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Average 15,595 104,080 3,397 US$ 211,494 ? Microsoft Software and Services US$ US$ US$ US$ US$ 80,864 185,564 43,138 211,494 8,664 185,564 - 8,664 185,564 - 80,864 185,564 43,138 211,494 8,664 185,564 - 8,664 185,564 - 32,731 185,564 14,379 70,498 Total US$ 521,059 194,228 194,228 521,059 194,228 194,228 303,171 81,484 - ? ? ? - ? 4,536 81,484 Next Version Year 6 Next Version 4,128 104,080 - Microsoft Software and Services 32,946 Next Version Year 5 Next Version 4,128 104,080 - 42,336 ? ? ? SP2013 Year 4 Next Version 38,528 104,080 10,192 US$ US$ US$ 81,484 SP2013 Year 3 Project 2013 4,128 104,080 - SharePoint Hardware Operations Deployment and Migration Total Hardware 3rd Party Software and Services Operations Deployment and Migration SP2013 Year 2 Project 2013 4,128 104,080 - 42,336 - ? ? ? - ? 211,494 ? 4,536 81,484 32,946 ? ? ? Next Version 81,484 - ? ? ? - ? 4,536 81,484 17,136 - ? ? ? - ? 70,498 4,536 81,484 10,982
  17. 17. Business Benefits
  18. 18. Easily collaborate with others to quickly start and deliver winning projects Reduce Administrative Time on Projects Reduce Travel Costs with Reduce License Costs Improved Collaboration Reduce Low Value Projects with Portfolio Management $100,221 Reduce Project Cost Overruns Decrease Project Reporting Time $5,000 $2,000 $43,200 Not Included in Analysis $120,266 Total Benefits per Year: $270,687 NOTE: Customers may use this framework to estimate potential benefits. Microsoft cannot guarantee benefit amounts and makes no warranties, express or implied, with respect to the estimates provided here.
  19. 19. Stay organized Potential Benefit Reduce Project Administrative Time by up to 25% $100,221 estimated savings per year
  20. 20. Potential Benefits Help reduce project administrative time by up to 25% by allowing management of projects from virtually anywhere and on virtually any device. “I like to sign into my Project Online from any computer, even my tablet device. All my project data is stored in the cloud and I have it at my fingertips wherever I am." -Dr. Anders Lehr, Senior Project Manager, Bassier, Bergmann & Kindler *Available with Office 365
  21. 21. Potential Benefits Help reduce project administrative time by up to 25% by quickly creating project plans and sites to manage team communications and documents. “Not only can I share information in my team, I can open a project website for my customers as well and give them more transparency with their projects." -Dr. Anders Lehr, Senior Project Manager, Bassier, Bergmann & Kindler
  22. 22. Potential Benefits Help reduce project administrative time by up to 25% by quickly tracking tasks and status timelines, while spending less time in status meetings “I have a very good status reporting. I can see what task is active and who is working on it at the moment. A lot of the emails that were necessary before are now gone.” -Dr. Anders Lehr, Senior Project Manager, Bassier, Bergmann & Kindler
  23. 23. Deliver projects successfully Potential Benefit Reduce Project Cost Overruns by 10% Potential Benefit Reduce Low Value Projects by 1% with Portfolio Management $5,000 $2,000 estimated savings per year estimated savings per year
  24. 24. Potential Benefits Help reduce project cost overruns by 10%* by providing capabilities to better manage expected project costs. *Forrester indicates that a project solution can help reduce project cost overruns by 10%, “The ROI Of Project Portfolio Management Tools”, 2009 “I haven’t seen Business Intelligence functionality in project management before, but with MS Project 2013 and Microsoft BI products this can be a fundamental new part of my daily work routine. ” -Dr. Anders Lehr, Senior Project Manager, Bassier, Bergmann & Kindler
  25. 25. Potential Benefits Help reduce project cost overruns by 10% by more providing capabilities to better manage project risk. Improving risk management can also help reduce project failure rate by 15%.* *Forrester indicates that a project solution can help reduce project cost overruns by 10% and reduce project failure by 15%, “The ROI Of Project Portfolio Management Tools”, 2009 “Most of my project management is about communication, knowledge & information management. Project Online with SharePoint services helps me to do that in a more centralized way. ” -Dr. Anders Lehr, Senior Project Manager, Bassier, Bergmann & Kindler
  26. 26. Potential Benefits Help reduce project cost overruns by 10% by more providing capabilities to better manage project risk. Improved resource allocation can also help improve project throughput times by 10%.* *Forrester indicates that a project solution can help reduce project cost overruns by 10% and improve project throughput times by 10%, “The ROI Of Project Portfolio Management Tools”, 2009 “The combination of Project Online and SharePoint gives us not only a better approach to project management, but better data and knowledge management. ” -Dr. Anders Lehr, Senior Project Manager, Bassier, Bergmann & Kindler
  27. 27. Potential Benefits Help eliminate 1% of low-value projects* and save time by focusing on higher value projects through better portfolio management. *Forrester indicates a project solution can help reduce the number of low-value projects by 10%, “The ROI Of Project Portfolio Management Tools”, 2009 “We finally have a central repository that is standardized, has common custom fields, and makes the data extraction to create reports much easier. Thus, some decisions really can be made faster!“ -Felipe Braun Azambuja, Senior Database Administrator, Intelbras
  28. 28. Improve everyday collaboration Potential Benefit Reduce Travel Costs with Improved Resource Planning &Collaboration Potential Benefit Decrease Project Reporting Time $43,200 $120,266 estimated savings per year estimated savings per year
  29. 29. Potential Benefits Reduce travel costs with improved resources planning and collaboration. Improve project scheduling accuracy. “Having the ability to mouse over a resource an get its contact info, or even opening the Lync chat windows from that point makes us save time in a daily basis. ” -Felipe Braun Azambuja, Senior Database Administrator, Intelbras
  30. 30. Potential Benefits Make better project decisions with improved analytical and reporting capabilities. Save time generating custom reports “It’s much easier to present project information through SharePoint than through our portal, and with mobile access, employees and customers can access and update project data on the go. ” -Dr. Anders Lehr, Senior Project Manager, Bassier, Bergmann & Kindler
  31. 31. Simplify IT Potential Benefit Reduce License Costs Not Included in Analysis estimated savings per year
  32. 32. Easily collaborate with others to quickly start and deliver winning projects Reduce Administrative Time on Projects Reduce Travel Costs with Reduce License Costs Improved Collaboration Reduce Low Value Projects with Portfolio Management $56,124 Reduce Project Cost Overruns Decrease Project Reporting Time $5,000 $2,000 $24,192 $67,349 Total Benefits per Year: $154,665 Not Included in Analysis NOTE: Customers may use this framework to estimate potential benefits. Microsoft cannot guarantee benefit amounts and makes no warranties, express or implied, with respect to the estimates provided here.
  33. 33. Easily collaborate with others to quickly start and deliver winning projects Reduce Administrative Time on Projects Reduce Travel Costs with Reduce License Costs Improved Collaboration Reduce Low Value Projects with Portfolio Management $275,609 Reduce Project Cost Overruns Decrease Project Reporting Time $8,000 $3,200 $118,800 $330,730 Total Benefits per Year: $736,339 Not Included in Analysis NOTE: Customers may use this framework to estimate potential benefits. Microsoft cannot guarantee benefit amounts and makes no warranties, express or implied, with respect to the estimates provided here.
  34. 34. Hospital is evaluating the options of deploying Project Online and Project server for 100 Project Pro for Office 365 users and 1,100 Project Online users. Evaluating the total cost of ownership over six years show that Hospital can expect to spend just slightly more for Project Online. Annual TCO Over Six Years 600,000 500,000 400,000 Deployment Operations 300,000 3rd Party SW MS Software 200,000 Hardware 100,000 Project Server Project Online Total Hardware Microsoft Software and Services 3rd Party Software and Services Operations Deployment and Migration Total Annual Cost for 6 years Total Annual Cost per User Average Monthly Cost per User % difference versus on-premises Project Server US$ 7,797 US$ 78,466 US$ US$ 281,720 US$ 8,297 US$ 376,280 US$ 342.07 US$ 28.51 Project Online US$ 344 US$ 409,273 US$ US$ 73,744 US$ 490 US$ 483,851 US$ 439.86 US$ 36.66 29%
  35. 35. Potential Benefits Multiple PC installs per user (userbased licensing) and available as subscription through Office 365. Click-to-Run helps speed deployment. Online Licensing Model PM vs. Timesheet or Task User only “By using a cloud-based solution, we got the agility we were seeking. We can use Project Online with 20 people, or we can scale to all 20,000 employees. It is easy to use and satisfies nearly 100 percent of our business needs. ” -Dr. Christian Buddendick, Head of Workplace Platform Services, Hilti Corporation *Available with Office 365
  36. 36. Planned to Spend $65,000 Actually Spent $85,000 Services Training Reconfiguration Retraining
  37. 37. Planned to Spend $47,500 Spent same amount Services Sample Data Cleanup Training Support
  38. 38. Project Online POC delivered in 25% of the time with 15% of the cost
  39. 39. Call to Action – Proof of Concept
  40. 40. 1. All takeaways can be found here: http://advisicon.com/projconf.htm 2. Slide deck 3. Nucleus On-Premise versus On-Demand TCO Tool http://tinyurl.com/p3l8bsc 4. Questionnaire - Successful Deployments 5. Webinar Request – Successful Deployments
  41. 41. tadhaas@microsoft.com cindy.lewis@advisicon.com

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