Discusses the facilities that corporate portals can offer to an organization, it presents the
criteria for evaluating, inf...
distributing      information     while           depends to a large extent on how the
collaborating online with people ac...
access to information and productivity            advanced services to customers,
to a large user segment in an           ...
and use of the           corporate   portal         costs related to the corporate portal
infrastructure.                 ...
-   Speed, caching, load                 issues and opportunities that will need
                balancing, uptime        ...
-      eHR and                               Hardware and software
                      administrative tasks             ...
harder to quantify, but equally or even
more important than short-term gains                                   ***
and cos...
$ ' %(
       & &$

      A TerraForum Consultores é uma empresa de
      consultoria e treinamento em Gestão do
      Con...
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Developing a Business Case for Corporate Portals

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Discute as facilidades que uma ferramenta como portal corporativo pode oferecer a uma organização, apresenta os critérios de avaliação, infra-estrutura de tecnologia de informação, e o posicionamento, visão e impacto do portal na corporação.
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Developing a Business Case for Corporate Portals

  1. 1. Discusses the facilities that corporate portals can offer to an organization, it presents the criteria for evaluating, information technology, and the impact in the enterprise. Introduction Information Officer) would take the hint and in a couple of weeks would produce a nice hard-cover report with A highly advanced corporate portal a series of estimates of how the offers an organization most the IT corporate portal would impact the pieces that it will need to develop bottom-line of the organization and, sophisticated organizational and hopefully, produce a nice ROI, business models of the 21st century. payback, etc. Is he/she right? The In that respect, the decision to embark answer is a great Yes and No. on a corporate portal implementation is a very strategic decision. A This response deserves an corporate portal can influence how an explanation that starts with some organization collaborate internally and reflections on how the sources of externally with partners, suppliers and value have changed in the past few customers and how, information and years as we quickly move from the people’s intervention enable corporate Industrial Era to the processes. Thus, a corporate portal Information/Knowledge Era. It may not implementation can not be seen be obvious, but this cataclysmic outside the broader spectrum of transformation is directly impacting business transformation. Some have how IT projects will need to be said that every company is becoming evaluated. Compared to the role of IT an Internet company, but we would in the Industrial Era (automation, cost argue that without a corporate portal and time reduction, user productivity, tying and displaying disparate data etc), the role of IT in the new Era that sources and applications, companies is dawning at the beginning of the 21st are really leveraging one of the key century (at least in developed aspects of the Internet: interoperability countries and parts of developing and advanced communications. countries) is much more ingrained in all business activities. The claims in the above paragraph can be, however, easily challenged by IT must support what create value in any astute Chief Financial Officer: the Knowledge Economy: white collars show “me the ROI”. The typical and today spend countless hours in front of wise IT manager (or even Chief computers producing, analyzing and ©TerraForum Consultores 1
  2. 2. distributing information while depends to a large extent on how the collaborating online with people across corporate portal implementation is the room or thousands of miles away. positioned: Thus, informed human decision- making and creative skills are Is it part of a strategic blueprint becoming increasingly important even for the evolution of an as automation is increased. We also organization’s e-business see an increasing role of the Service platform/infrastructure? sector in the economy. Even o Cost-avoidance traditional manufacturing companies o Reduction of claim they are providing solutions; not Integration Costs products. Souces of value in this o Speed of scenario are: development of new solutions • Ability to make correct o Improved security strategic decisions at the right Is it being justified as a set of time; specific projects with known • A brand that confers trust and value propositions? innovative solutions o Revenue- • Customer loyalty; enhancement • Ability to collaborate to find o Cost-savings quick solutions or to generate o Quality of customer innovative ideas; service • Etc. o Etc. If we agree with the above statements Which of the two sets of benefits will about sources of value and how IT be emphasized in a corporate portal permeates almost all business implementation depends to a large activities, it follows that IT projects extent on the specific software solution should increasingly be ties to these that is being adopted. Some portal intangible sources of value. Thus, our solutions clearly offer more out-of-the response above: “Yes and No”. The box solutions, while others (usually “Yes” part of the equation is about more application server centric) tend being conservative, not confrontational to offer stronger development and to traditional ways of seen value and integration tools. Clearly the former to trying to be practical. The “No” part tend to produce better short-term has a lot to do with a deeper returns, while the latter, better returns understanding of how IT projects are later on when deep integration of increasingly interconnected and applications and legacy systems are dependent on the behavior and skills developed. of future users. The other aspect of estimating the return of a corporate portal Positioning a Corporate Portal Project implementation is user community involvement. A corporate portal by The methodology for the development definition is aimed at increasing of a business case for a corporate ©TerraForum Consultores 2
  3. 3. access to information and productivity advanced services to customers, to a large user segment in an speed to market of new IT systems, organization. Therefore, if the user synergy among different business community does not get involved, units, higher levels of security, does not learn how to use the new employee morale, productivity and wave of tools and the organization as continuous learning. whole does not develop a good governance model, the implementation might not produce all 2. High-Level Impact on Different the potential benefits. Community of Users Following the discussion above, a While the corporate portal is a typical business case for corporate pervasive infrastructure solution that portal will include the following items: has the potential to impact how everyone (including external partners, 1. The Vision clients and so forth) access critical information, applications and How the corporate portal will support collaborate, it is clear that some user the vision set by top management. segments or business units will more Often times, organizations miss this clearly and more rapidly benefit from important and critical link. Corporate the portal implementation. portals can touch almost every aspect of the delivery of services in the Thus, in many cases, a detailed financial sector. Therefore, it is of analysis of benefits across user utmost importance that the corporate segments is highly recommended. portal initiative to be framed within the Some benefits will easier to quantify, corporate strategy. Typical issues while others will have a more here are related to the deliver of qualitative aspect. AUDIENCE QUANTITATIVE QUALITATIVE Observations BENEFITS BENEFITS Top Management Prod. Development Risk Management HR Professional Tellers Customers This kind of analysis is very important eventually for effective deployment for stakeholder alignment, support and ©TerraForum Consultores 3
  4. 4. and use of the corporate portal costs related to the corporate portal infrastructure. implementations. Investment and costs will generally escalate with 3. Evolution of the e-business breadth and depth of the portal. infrastructure The key variables that impact the A horizontal corporate portal investment side of a portal deployment will eventually affect how implementation and that need to be all data sources and applications are taken into consideration are: linked, processed and presented. It is the blueprint for how IT supports Volumes business processes and goals. The - # of users establishment, therefore, of a blueprint - # of business units with for the evolution of an organization e- unique requirements (in business infrastructure needs to be terms of interface and tightly linked to the choice and specific integration of deployment of a corporate portal. In applications) particular, the following components of - # of distribution an e-business blueprint architecture channels will need to be laid out: - # of device types for rendering the portal User Access Standards and services Strategies - Volume of content Security Identity and Role Management Ease and Speed of Integration Search - Unfamiliar development Taxonomy environment Collaboration & Workflow - Small number of native Access to Structured and applications within the Unstructured corporate portal Information solution and - Deep integration of Applications existing applications & Access to Web Services legacy systems Enterprise Application - # of E-business Integration services to be Standards for Development integrated that are out- Environment of-the box Network Management - # of E-business services to be 4. Required Investment integrated that required deep customization Based on the vision for the evolution of the e-business infrastructure, a few Performance scenarios must then be developed to estimate the investment and on-going ©TerraForum Consultores 4
  5. 5. - Speed, caching, load issues and opportunities that will need balancing, uptime to be examined are the following: requirements Current costs, organization and - Security Level required infrastructure for web publishing, UI development, Readiness Level etc; - Lack of good & On-going application organized corporate development that may present directory future integration costs; - Level of non-audited Accuracy, efficiency and speed content spread in of information delivery and different departments employees access to critical and business units information and applications; - Lack of content Improve use and leverage of management software previous investments on and processes in place business intelligence applications; Opportunities for streamlining 5. The Imperative for a Corporate Portal IT services and corporate Implementation communications ! " ! # Development of more efficient While it is hard to argue that in the push and pull e-learning medium and long-term all major strategies based on role-based organizations will implement a customization and employee’s corporate portal infrastructure, it is preferences; critical to highlight the most pressing Training costs of developers needs for a corporate portal and users of applications; implementation. Cost avoidance, On-going integration costs of rework, integration decisions and data, information and speed to market tend to be typical applications; issues that are closely related to Relevant security issues; making a decision about a corporate Opportunities for immediate portal solution. cost saving through out-of-the- box functionality and self- In this regard, in the process of service administrative process developing a business case for a savings: corporate portal, the project team - New-hires needs to focus on a few items that will - Employee move- clearly demonstrate the quantifiable add-change return of a corporate portal transactions implementation. The most typical ©TerraForum Consultores 5
  6. 6. - eHR and Hardware and software administrative tasks investments; (performance Development & maintenance review, costs.; compensation Direct cost savings; planning, learning Cost savings related to management, travel estimated productivity gains; and expense, etc.) Revenue enhancement - Training opportunities. - Printing & Calculations of ROI, IRR and distribution costs Payback. - Help desk and related support It is important, however, to highlight usage that the decision to implement a - Reduced costs with corporate portal will be increasingly other systems that seen as the “cost of doing business”. become redundant This is the same concept as cost of - Reduced use of PABX, email, etc. Without a robust emails with heavy corporate portal solution organizations attachments will face serious impediments to (reduced network collaborate internally and externally in and storage costs) an effective manner. In the emerging and “broadcast” age of Collaborative Commerce and emails Knowledge and Intellectual Capital - Reduced Management, this could be an telecommunications important competitive disadvantage. costs (phone bills and private networks) 7. Strategic Opportunities A corporate portal that is implemented 6. ROI Estimates within a broader strategic e- architecture will most likely reduce the An ROI estimate in a detailed often hidden costs of complexity: it will spreadsheet should be developed to provide permanent reductions in IT take into account all potential and budgets due to integration, measurable benefits. These maintenance, developers’ training and calculations should take into account development costs. It can also be different software solutions and a strongly argued that it will provide the number of assumptions related to the critical foundation for the rapid variables highlighted in item 4. Thus, development of future e-business the ROI estimates will be tied to a few applications in a scalable and secure scenarios and migration paths that will environment. be strategically proposed. It will include estimates for: There are also a number of strategic opportunities that are, sometimes, ©TerraForum Consultores 6
  7. 7. harder to quantify, but equally or even more important than short-term gains *** and cost reductions. A few examples of strategic opportunities that might be José Cláudio C. Terra é presidente da highlighted and/or investigated in more TerraForum Consultores. Atua como consultor detail (if time and budget allow) are e palestrante no Canadá, nos Estados Unidos, the following: em Portugal, na França e no Brasil. Também é professor de vários programas de Reduced costs due to pósgraduação e MBA e autor de vários livros centralization of certain sobre o tema. Seu email é operations to lower-cost jcterra@terraforum.com.br locations; Increased Sales due to reduced time to market (leveraging intelligence and know-how – speed of roll-out of new applications); Implementation of a broad knowledge management initiative and growth in number and reuse of documents and knowledge objects; Better brand management (internally and externally) ; Provide a solid and secure infrastructure to extend and improve critical relationships with suppliers, partners and clients. Thus, creating the conditions for the development new business models centered on much deeper levels of collaboration with external entities. Readiness level for integration of independent businesses – critical for success of mergers and acquisitions. Corporate Portals can make it much easier to $ % integrate disparate Challenges and Opportunities in the Internet for Media Companies systems both on the presentation layer Portais Corporativos: novo instrumento de gestão da informação (more easily) and on Entendendo os Diferentes Níveis de Sofisticação de um Portal Corporativo the back-end (true data integration). ©TerraForum Consultores 7
  8. 8. $ ' %( & &$ A TerraForum Consultores é uma empresa de consultoria e treinamento em Gestão do Conhecimento (GC) e Tecnologia da Informação. Os clientes da empresa são, em sua maioria, grandes e médias organizações dos setores público, privado e terceiro setor. A empresa atua em todo o Brasil e também no exterior, tendo escritórios em São Paulo, Brasília e Ottawa no Canadá. É dirigida pelo Dr. José Cláudio Terra, pioneiro e maior referência em Gestão do Conhecimento no país. Além disso, conta com uma equipe especializada e internacional de consultores. ) * $ - ( & % .% ' + , & % $/ ) Gestão do Conhecimento e E-learning na Prática Portais Corporativos, a Revolução na Gestão do Conhecimento Gestão do Conhecimento - O Grande Desafio Empresarial Gestão do Conhecimento em pequenas e médias empresas Realizing the Promise of Corporate Portals: Leveraging Knowledge for Business Success Gestão de Empresas na Era do Conhecimento ©TerraForum Consultores 8

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