Intranet ROI: Measuring the Dollar Value of Intranets

1. 1
INTRANET ROI
Measuring Dollar Value

2. 2
TOBY WARD
Founder, Prescient Digital Media

4. 4
Intranets & Digital Workplaces

5. 5
•
…
‘
2001 2005 2011
Expanded client base
across North America
and Europe.
Growth
Expanded solutions for the
entire Digital Workplace.
Digital Workplace
Launched in Toronto.
Start
Full implementation services,
and SharePoint expertise.
Implementation
Focus on assessment, planning,
governance of intranets.
Intranets
Intranet Experts for 18 years
Multiple awards including the prestigious
Webby & Golden Quill Awards.
Awards
2016
Expansion into the US
& Western Canada
New Office Locations

6. Clients

7. 7
• Streamlining business processes
• Driving operational efficiencies
• Enhancing communications and collaboration
• Reducing the cost of internal business functions
• Improving and supporting sales process
• Increasing sales
Intranet Value
Measuring Value

8. 8
• Return on Investment (ROI) is the ratio of money gained or lost on an
investment to the amount of money invested.
Money gained $5 = 5%
Money invested $100
Defining ROI

9. 9
• US$411,000 portal investment has an estimated ROI of 355% over three
years (or $1,025,000).
Ameriking
• Improved information access: $783,750
• Over 70,000 documents available to field management saving support staff 60 mins per week
• Decreased print & distribution costs: $343,759
• 80% of previously printed accounting reports now online in saving $20k per month
• Centralized purchasing savings: $317,760
• Greater volume discounts result from aggregated purchases; Automated accounting processes
increase savings
• Decreased communication costs: $64,800
• Field managers no longer place 3 calls to process new employee forms
• 30% reduction in field staff phone and fax expenses

10. 10
• Measuring current costs is key
• Success largely depends largely on your ability to measure current
costs
• After documenting current baseline costs, future ROI estimates can
be made based on benchmark data
Measurement

11. 11
• A business case is a sales job
• ROI is all about “selling the benefit”
• Put on your sales hat
• Measure as much as possible – let management decide later what works
and doesn’t work
• Be aggressive in your measurement and estimates
Sales

12. 12
• Measuring the full ROI is at best an imperfect science
• ‘Hard savings’ such as printing or distributing documents
• ‘Soft savings’ such as enhanced access to information
• Easier to measure the ROI of applications
• ‘Chicken-and-egg’ dilemma: you cannot deploy effective applications
without infrastructure and you need an intranet home page to drive
application use
Imperfect Science

13. 13
• The intranet benefits applications as the mall benefits stores
• Shopping mall = store sales
• No shopping mall = no store sales
• Intranets drive traffic to applications = ROI
• Intranet home page = application ROI
Shopping Mall = Intranet

14. 14
• To identify 6-12 specific, measurable benefits
• Both hard and soft benefits – that demonstrate dollar value ROI
ROI Goal

15. 15
• Much of the value is latent, intangible, soft savings
• Inherently understood that the telephone is an essential value
• In many ways, intranets are like telephones – much of the value is
unseen and not measurable, but is inherently understood
Inherent Value

16. 16
• Average intranet with 4,500 employees returns a value of $1 million
(Prescient)
• An annualized return of 38% (META)
• A $1 million investment returned $5 million in value (IDC)
ROI Study

17. 17
• Hard costs
• Sales
• Customer service
• Collaboration
• Time to market
• Employee productivity
• Human resources
• Competitiveness
• Application access
• Infrastructure
Measurable Benefits

18. Hard Savings
• Print communications: newsletters, management reports, charity bulletins,
phone directories, staff bulletins, news clippings, etc.)
• Printing, distribution, physical storage, inventory, management, administration
of print
• Example: Number of software installs for 2001 = 1300, at $75/hour and 10 mins.
saved per install; printer installs were 468 at $75/hour at 5 mins. saved per
install

19. Help Desk
• Self-service, faster response times, reduced help desk call volumes
• Client example: By providing more information online and automating certain
Help Desk functions through the deployment of a web-based portal, the client
could reduce call volumes by by one-third, or 38,472 calls per year (at $18.12 per
call) – yielding an estimated savings of $697,115 per year.

20. Sales
• Respond faster to clients
• Increase customer service -> sales
• Knowledge transfer / management
• Example: Sodexho USA Sales SuperSleuth is an intranet page and application that
encourages employees to submit sales leads and prospective clients via the
intranet. The SuperSleuth intranet page generate cash rewards of up to $1000 for
the person making the submission. Sodexho says it has contributed to a 100%
increase in sales leads in the past year and led to US$90 million dollars in
managed volume (net client sales including sales by client).

24. Easy to manage
leads and to sort
by business line,
date, status, and
track sales
volume, etc.
Administrators
can also:
• e-mail the lead
to sales
executive
• request
additional
information from
the submitter
• edit lead status.

25. Sales Benefits
• Has increased leads by more than 100%.
• One easy-to-access company-wide program.
• Promotes lead exchange across business segments / breaks down silos.
• Reduces administrative effort, leads get to sales executives more quickly for
action.
• Works well in our decentralized organization.

26. Human Resources
• Reduce employee turnover
• Knowledge sharing
• Eliminate print
• Example: Mitre estimates it saves $860,000 per year in clerical staff overhead by
using online, automated property tracking in lieu of physical audits (600 clerks at
$9 per hour for 4 wks). Additionally, it estimates it retains 15 workers per year,
saving about $300,000 in recruitment costs).

27. IBM ROI
Total
Mobile Workforce: Real Estate Savings
eCollaboration: Web Conferencing, Surveys
Travel: On-line Travel
Learning
Human Resources: Employee Self Service
Human Resources: On-line Expense System
IT: IBM Standard Software Installer, Virtual Help Desk
IT: Asset Management Tool, Global Web Architecture
Procurement: Employee Self Service
Corporate Communications: News, Licensing
Customer Relationship Management
$452,600
$ 0
$ 0
$ 0
$243,950
$ 0
$ 0
$ 0
$450,000
Enabled by
in (000s)
$ 0
$164,100
$ 0
$ 11,091
$ 11,771
$284,000
$ 4,022
$ 35,826
$201,000
$133,000
$ 0
$ 3,000
$ 0
Direct Impact
in (000s)
$ 683,710 $1,310,650

28. Ideas Jar
• BT Ideas encourages staff to be submit ideas online
• Implemented ideas pay out rewards
• Aprx. 10% of ideas are implemented
• Ideas has saved BT nearly £100m (US$173 million) over the past four years
• 10 per cent of the savings up to a maximum of £30,000
• BT paid out £400,000 (about US$700,000) to employees in the fourth year

29. More Than ROI
• "It's like an option-value in the future. The value of investing in the Web comes from
the options it will create for an organization in the future.”
David Upton, Harvard School of Business Professor
• "Our high-level (priority)…is to make it easier for people to give information to others
and to use information from others to solve the next problem that comes along,"
Mark Maybury, Executive director of IT, Mitre Corp.

30. Business Case
• A business case should weave a complete story
• Detail the pain points, and potential benefits
• ROI should only be one component

31. Social Drives Profit

32. Tax Season ROI
• T. Rowe Price adds 1,500 workers to its call center each tax season & transferred
the entire training program to a wiki.
• Price encouraged new employees to take notes during the sessions and then add
notes, comments & recommendations to the wiki.
• As a result, the company estimates that it saves 1-2 mins. per call at $20 per min.
(net result = millions of dollars).

33. Social Networking ROI
• Flight reservation system company, Sabre, developed their own employee
networking platform with a Q&A application that garners frequent use:
• 60% of questions answered within one hour of posting
• 90% of questions answered within 24 hours of posting
• Each question posted receives an average of 9 answers
• People find information faster
• New-hires ramp up faster
• US$500,000 hard cost savings in first year

36. Social ROI
• Barclay’s Bank developed a mobile intranet site with impressive results:
• 22% increase in employee engagement
• Increase in colleague satisfaction to 97% across frontline staff
• 500% increase in the run rate of customer digital product registrations
• Staff-generated ideas delivering in excess of £1m avoided costs per annum
• 60% reduction in internally distributed campaign material delivering
approximately £1m cost benefit in 2013

37. Cloud Intranet
• Cloud-based intranet solutions deliver 1.7 times more ROI than on-premises
• Require 40% less consulting
• Cost 25% less in support
• 4 out of 5 (cloud) deployments deliver increasing benefits over time
Nucleus Research

38. Cox Communications
38

45. Liberty Mutual Digital Assistant
45

46. Liberty Mutual Insurance implemented a chatbot to drive efficiencies across its IT help desk and improve employee satisfaction
levels. The chatbot was piloted to all mobile users for the following use cases: unlock phone, register/unregister devices, and
sync calendar. After just two months, Liberty realized significant benefits and large ROI projections.
Objective Prior Chatbot
(2 months)
Reduce Average
Handling Time (AHT)
15 Minutes 2 Minutes
Reduce Average Speed
of Answer (ASA)
142 Seconds 0 Seconds
Convert 5% of mobile
help desk call volume to
chatbot
0 18%
Increase Satisfaction
(eNPS)
9 10
Business Value
93% Expense reduction per help
desk transaction
10% Increase in employee satisfaction
*Annualized savings/capacity calculated at a 50% adoption rate based on average mobile
calls per year and average salary data.
2 FTE Capacity savings annualize*
$222,250 Projected annualized savings*

47. Use Case Calculation Annualized Value
Approval Time Savings
Significant time savings
per transaction to action
approval (login & clicks)
(754,962 approvals) * (45 secs
saved per approval)
Over 9,000
Hours Saved
Approvals $$ Savings
Reduce time managers
spend on approvals
(566,221 minutes saved) *
(avg. employee
rate per minute)
$639,829
Notifications $$ Savings
Move notifications outside
of email and time spent
searching
(5 min per week) * (50,000
employees) * (avg rate
per minute)
$6,720,000
With smart notifications, Liberty Mutual consolidated approvals and notifications into one view outside of email. Approvals and
notifications can be directly actioned from the digital workplace vs. the native system of record, removing the productivity
burdens of context switching between applications.
90% adoption by managers
performing approvals in digital
assistant vs native system.
Millions of dollars’ worth of
reclaimed productivity.
5 minutes saved on average per
week per employee
70% Reduction in number of clicks
required for employees to obtain key
information

50. Questions
50

51. Intranet Insight Newsletter
PrescientDigital.com
51

52. 52

53. IntranetGlobalForum.com
October 1 & 2, 2020
53

54. www.PrescientDigital.com 416.926.8800 toby@prescientdigital.com