Using Technology to Gain advantage in global Transportation
1. A Value Proposition:
The Benefits of Using the Graphical User Interface
Technology in Today’s Freight Forwarding Operations
Jeffrey D. Plumley
2. Executive Summary
In today’s business environment, Graphical User Interface (GUI) technology is the premier
method for accessing Information Technology Applications. Throughout the 1990’s, and
early 2000’s, most companies worked toward the elimination of Character-based User
Interface (CUI), also known as “Green Screen,” or “Dumb Terminal,” for application access.
Most IT investment initiatives require significant cost justification for any business segment.
This is especially true for freight forwarders in this time of intense competition and the
paradigm shift towards lower cost models. Freight forwarders should examine the cost
benefits of upgrading to GUI technologies for application access.
3. Why Use GUI Technology?
Organizations with experienced green-screen / CUI business application users may experience
resistance to investments in new generation systems built using Web based technology, as well
as to Web Based technology use in general. However, studies show that organizations can
realize tremendous productivity gains, and corresponding Returns on Investment (ROI), by
migrating from a “Green Screen” environment to an advanced Graphical User Interface
(GUI). Most organizations also find that new generations of workers dislike and are dissatisfied
with green- screen applications. Several studies generated results pointing toward the
tremendous benefit of using Web Based technology.
Microsoft Study
In 1990, Microsoft and Group Bull (now known as Temple Barker & Sloane) commissioned an
independent study to identify differences in the performance of graphical and character-based
user interfaces for applications software.
The research results show that Graphical User Interfaces provides benefits over CUI in most
work environments. Some specific results include:
• GUI users complete tasks faster and more accurately than CUI users
• This results in higher productivity for GUI users versus CUI users independent of the application
accessed
• Experienced GUI users completed an average of 35 percent more tasks than CUI users in the
same time: 50 tasks versus 37 tasks
• GUI users accurately completed a higher percentage of the tasks they attempted: 91 percent
versus 74 percent
• These results demonstrate that experienced GUI users accomplished 58 percent more correct
work in the same time versus users of CUI technology
• GUI users express both lower frustration and, lower fatigue than CUI users
• After spending two days learning to use PC’s with GUI applications, GUI novices rated their
frustration at 2.7 (out of 10), at the same time as CUI novices rated their frustration at 5.3
• GUI users are better able to self-teach and explore, as well as to learn more capabilities of an
application versus CUI users
• GUI novices attempted 23 percent more tasks than CUI novices when given new tasks to
perform.
These findings support three powerful conclusions for the corporation. Use of Graphical User
Interface generates:
• Higher output per work-hour, through higher productivity,
• Higher output per employee, as a result of lower frustration levels and reduced
fatigue, and
• Greater return on information technology investment than CUI, as users master more
capabilities with a smaller amount of training and support
4. Gartner Group Research
In a research note published in November 1994, the Gartner Group substantiated the Temple
Barker & Sloane study findings. Some of the study highlights include:
• Users know instinctively that the GUI work environment is more beneficial to them. Industry
studies demonstrate that the benefits are real and tangible
• Novice users complete more tasks in a GUI environment than a CUI environment by an
estimated ratio of 6 to 1
• Experienced users complete an average of 25 percent more tasks using GUI versus utilizing
CUI application access
• Task accuracy can be improved by as much as, or more than, 50 percent
• The learning curve for new applications is reduced when employing GUI technology
• Users of Graphical User Interface have fewer support requirements than users of Character-
based User Interface for application access
• A GUI leads to improved productivity, quality and ease of use
• The use of a well-designed GUI can result in overall productivity improvements of up to 45
percent for novice application users and up to 75 percent for experienced users, compared to
using the same application with a CUI
Graphical User Interface Technology
Since the time of these studies, the IT Industry has experienced the emergence of advanced GUI
technology. The above studies were based upon early generations of Graphical User Interface
technology. This early GUI technology did not take advantage of the myriad of advancements in
GUI technology now in existence. The advancements in technology over the past twelve years
has likely increased the Return On Investment achieved by earlier GUI technology. The
following study supports this position.
American Medical Informatics Association
In a study published in March of 2000, the American Medical Informatics Association put forth
evidence of significant productivity gains for GUI users versus traditional CUI application
access. In this study, GUI users completed tasks 68% faster compared to legacy character based
application access. Additionally, users of traditional Character Based technology completed
tasks with errors six times higher than their GUI using counterparts. So clearly, the studies of
the early 1990’s are still, if not more, relevant in today’s business environment.
5. Quantifying Cost Savings
How do these findings translate in cost savings? Using the research study findings, the following
example provides a framework for estimating the Return On Investment from employing GUI
technologies at the user level. The assumptions are easily changed to reflect a company specific
situation.
Basic Assumptions
Average Users Yearly Compensation $22,000
Average Users Overhead Burden 25%
Average Burdened Compensation $27,500
Workdays Per Year 230
Average Cost Per Workday $120
Number of Users 50
Percentage of User’s Time Spent Using Application 50%
Gartner estimates productivity gains (increase in more accurate work one user can accomplish in
the same amount of time using GUI technology versus CUI) ranging from 45% to 75%; Temple
Barker & Sloane estimate 58%. If we apply these percentages to the amount of time spent using
the application; it yields the following range of results.
• Gartner Low Estimate: 45% productivity gain on 50% average time spent using
application = 22.50% Net Productivity Gain
• Temple, Barker & Sloane 58% gain on 50% average time spent using
application = 29.00% Net Productivity Gain
• Gartner High Estimate 75% gain on 50% average time spent using
application = 37.50% Net Productivity Gain
What is the value of those productivity gains?
The following is based upon the above assumptions
Net Productivity Gain: 22.50% 29% 37.50%
Value Per User Based on $27,500 Total compensation: $6,187.50 $7,975.00 $10,312.50
Value Per 50 Users: $309,375.00 $398,750.00 $515,625.00
In this scenario, productivity savings range from $309,375 to $515,625 per year based upon 50
users. Larger user communities spending a greater percentage of time using an application
would experience dramatically higher levels of productivity gains as illustrated by the following
chart:
6. Yearly Value of Productivity Gains from employing advanced GUI Technology
Gartner Low Estimate
$3,500,000
Temple, Barker & Sloan
$3,000,000 Gartner High Estimate
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
50 Users 100 200 300
Users Users Users
In addition to these pure numerical calculations, an organization should consider the following:
Quality
• If more work is completed accurately, then the time that would have been spent correcting
errors is eliminated
• If transaction quality is improved, customer satisfaction is improved
Employee Satisfaction
• If workers are less frustrated turnover is reduced. Associated recruiting, administration and
training costs are eliminated.