RFID use in Libraries: ROI

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A presentation for the Canadian Libraries Association on the return on investment for implementing RFID systems for self service, elibraries, sortation, security and public access management.

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  • JEFF
  • JEFF (and Alice)ALICE -- Reducing Risk -- systematically gathering evidence that can be used to make a decision. – less subjective/emotional decision makingJEFF-- Process shines light into dark corners Forecasting & resource allocation –human and $$ resources-- BEFORE A BREAK/HANDS-ON WORK TIME -– think about possible projects in their library, what’s on the drawing board at your library, which ones do you think you could put through this process? -- because next, we want to start working on a skeleton of a project -- Organize folks – have them work together or separately -- FEW MINUTES TO MAKE NOTES ABOUT YOUR OWN ENVIRONMENT
  • Who does what – and what are they paid?-- What standard are you going to use – is the standard time? If so, need to know how much time different things to take, and what hourly wage you assign to it - know who fulfills what roles ahead of time, determine their fully burdened wages in order to get the most accurate sense of costs.-- decide how granular you want to be – are you going to round figures off? - Are your averaging wages? Do you have folks at different pay rates doing the same task?-- Are you going to consider overhead costs of employee, or the more tangible cost (task E takes Y seconds, x Fully burdened hourly wages)
  •  Which one do folks think would have the biggest savingsAlice notes: remove values, mix up orderSpeed of check-in$2, 371Inventory$4,106Shelf Reading$6,969New Collection Processing$2,114Circulation Desk Staffing$26,330Total projected annual savings$41,890
  • Jeff
  • We are entering into an intangible economy
  • Question: what barriers do you see to your project?Competitors? Alternatives? What if you don’t do it, what is at risk?Barriers @ MRU -- For us, downward trend in Circ was a barrier, potential staff anxiety around implementing such a change.cost relative to payback period, including labour, time lost on other projects Alternative – lower cost, EM self-check would do some of the same for us.Question – why would you want to do this NOW?Enablers – why NOW? What opportunities are there for moving ahead? Potential partners?Funders? Transitional opportunity that could help implementation? PR opportunity?@ MRU For us, transition to university – a climate of change anyway, and could use the profile boost with our new status. Building plans – we are going to be in flux, new space will mean a new way of doing business and organizing ourselves – good time to change AND will be handling items one by one anyway. Powerful enablers.Report Content ExampleExecutive SummaryBackground & AssumptionsProject ObjectivesMethodologyData Collection & AnalysisProject CostsROI and Payback PeriodQualitative FactorsImplementation IssuesConclusion & Recommendations
  • ALICE:@ MRUTime required for an ROI study will be relative to size and scope of the project- Predicting the time spent was difficult. Thought it would take a few weeks – it ended up taking months - Hour a week for 8 weeks in meetings - Data collection – was tough to predict – lots of number crunching and observing -Report writing and re-writing – took several more weeks, and was the most time-consuming, but a lot of this was due to being in different cities, having tight schedules and different styles. - Versioning – establish up front how you will do this, who will be the keeper of the records! (would assume a librarian would have been good at file management – au contraire) I would have formed the team differently – perception of walking into a dept and asking a bunch of questions about their business alarmed some folks, needed a bigger team Learned about my library – what people do and how. Surprised by how often I’ve calledupon the data numerous – to determine costs associated with mailing notices, to determine cost savings of an interim self-check unit we are considering until we can go ahead with RFID
  • RFID use in Libraries: ROI

    1. 1. How to Quantify the Return on Investment of Library Technology Projects<br />Alice Swabey, Coordinator - Access Services, <br />Mount Royal University Library <br />Jeff Narver, Library Productivity Specialist, <br />3M Canada Library Systems<br />
    2. 2. What this Process is … and isn’t<br />Forecast<br />Process not a tool<br />Not to prove <br />Gap analysis<br />Not for all projects<br />
    3. 3. Why Use Project ROI?<br />Reduce risk <br />Resource allocation<br />Defining a balanced value perspective<br />Qualitative, quantitative, strategic, tactical, short & long term<br />Funding tool<br />Validate claims<br />
    4. 4. Step 1: Environmental Scan<br />Collect & evaluate potential projects<br />Prioritize projects<br />Organize the team<br />Library circumstances<br />
    5. 5. Step 2: Program Assumptions<br />Outline of problem<br />Possible solutions<br />Possible alternatives<br />Go / no go’s<br />Program parameters <br />Size & scope<br />Gut check<br />
    6. 6. Step 3: Program Objectives<br />Simple, measureable, realistic<br />Financial, time, learning<br />Benchmarking<br />
    7. 7. Step 4: Identify Impact Points<br />Break down current process<br />Break down new process<br />Identify and compile master list<br />
    8. 8. RFID Sample Impact Points <br />Speed of circulation<br />Shelf management <br />New materials processing<br />Reduction in materials handling<br />Speed to shelf<br />
    9. 9. Step 5: Conversion Standard<br />What standard will you use?<br />If it doesn’t fit, don’t force it<br />For example ...<br />79 652 circs/yr x 7.5 seconds/item = 165 hours x 28.98/hr wages = $4781<br />
    10. 10. Step 6: Data Collection<br /><ul><li>Review impact points
    11. 11. Collect data
    12. 12. Observation
    13. 13. Interviews
    14. 14. Timing
    15. 15. Surveys
    16. 16. Benchmarking
    17. 17. Secondary sources
    18. 18. Tests
    19. 19. Subject matter experts</li></li></ul><li>Data examples<br />Hard <br />Soft<br />Circulation<br />Lost items<br />Discrepancies<br />Salaries<br />Customer complaints<br />Staff turnover<br />Efficiency<br />Processing time<br />Process improvement<br />Leadership<br />Reputation<br />Customer loyalty<br />Customer complaints & impressions<br />Staff complaints<br />Staff satisfaction<br />Staff Safety<br />
    20. 20. Then Estimate Change<br />Agree upon change estimates<br />Don’t force it (step 8)<br />
    21. 21. Project Savings <br />
    22. 22. Step 7: Project Costs<br />It isn’t the just the equipment<br />Capital vs operational<br />1 year or 3-5 years <br />
    23. 23.
    24. 24. Qualitative factors drive projects<br /> Intangibles are the invisible advantage<br />Jack Phillips, 2007<br />
    25. 25. Step 8: Qualitative Benefits<br />Help tell the story<br />Customer satisfaction<br />Staff satisfaction<br />
    26. 26. Step 9: Return on Investment <br />Calculate the annual project benefits (step 6)<br />Divide them by the project costs<br />Payback <br />average 3-7 years<br />
    27. 27. Step 10: Writing the Report<br />Barriers & enablers to implementation<br />
    28. 28. Step 10: Write Report<br />Know your audience<br />
    29. 29. Step 11: Do follow-up<br />Test assumptions after project implementation<br />
    30. 30. What we learned<br />Listen to the data<br />Time<br />Manage staff anxiety<br />It isn’t always the quantitative<br />Process milestones & credibility<br />Learning about your library<br />
    31. 31. Wrapping Up<br />Alice Swabey<br />Mount Royal University<br />aswabey@mtroyal.ca<br />Jeff Narver<br />3M Canada<br />jdnarver@mmm.com<br />
    32. 32.
    33. 33. Adding it all up...<br />

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