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Justifying Taxonomy Projects - Calculating ROI from Information Assets
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Presented by Seth Earley at Taxonomy Boot Camp 2009
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Justifying Taxonomy Projects - Calculating ROI from Information Assets
1.
Justifying Taxonomy Projects
Approaches for Calculating Return on Investment Getting the most from taxonomy, search and content processes
2.
3.
4.
Increase customer satisfaction
Expand offerings Develop new markets Customer Support Customer acquisition Engineering Library Knowledge base Marketing Collateral Alignment, linkage, measurement Product Development Grow top line revenue Content supports processes Working here (tools, technology, IA, taxonomy, search, etc) Measuring here (micro level - effects) Measuring here (macro level - outcomes) CEO- “Show me how this project will increase our revenue?” Copyright © 2009 Earley & Associates Inc. All Rights Reserved. www.earley.com 781-820-8080 Organizational Strategy Business Unit Objectives Business Processes Processes enable objectives L I N K A G E Content Sources Objectives align with strategy
5.
Task 1 Task
2 Task 3 Task 4 Task 5 Task 6 Task 7 Task 8 Task 9 Task 10 Ecommerce site – increased findability linked to increased conversions
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
Projected Value of
Benefits
17.
18.
Editor's Notes
------------------------------------------------------------------------------------------------------------------------------------------------------------- DIRECT BENEFITS Start-up Year 1 Year 2 Year 3 Totals Direct labor cost savings Reduced LOB labor costs for retention classification 0 312,500 312,500 312,500 937,500 (2 days/yr) * (# of LOB employees) * (LOB employee $/hr) Reduced administrative support costs for records tracking and retrieval 0 13,438 13,438 13,438 40,313 (12 days/yr) * (# of LOB admins) * (LOB admin $/hr) ------------------------------------------------------------------------------------------------------------------------------------------------------------- TOTAL DIRECT BENEFITS $0 $325,938 $325,938 $325,938 $977,813 ------------------------------------------------------------------------------------------------------------------------------------------------------------- INDIRECT BENEFITS Start-up Year 1 Year 2 Year 3 Totals Improved technology management Reduced IT cost for unified information architecture development 0 31,250 46,875 15,625 93,750 (30 days/yr) * (# of LOB systems/yr) * (IT employee $/hr) Reduced cost of deployment for successive LOB migrations 0 65,200 97,800 32,600 195,600 ($32,600) * (# of LOB systems/yr) Improved technology asset return Improved return on assets for more effective deployment of ECM/RIM SW 0 10,000 10,000 10,000 30,000 ($10,000/yr) Improved process management Increased efficiency and accuracy for Workers’ Compensation LOB 0 117,188 468,750 468,750 1,054,688 (30 mins/day) * (75 LOB employees) * (LOB employee $/hr) Increased effectiveness of Legal Department for RM policy enforcement 0 11,719 23,438 23,438 58,594 (1 hr/day) * (# of Legal staff) * (Legal counsel $/hr) Increased enterprise agility and strategic BI visibility 0 0 146,484 244,141 390,625 (4 hrs/wk) * (# of LOB systems) * (3 mgrs/LOB) * (LOB manager $/hr) Improved risk management Mitigation of business risk for legal discovery compliance 0 12,500 12,500 12,500 37,500 ((8 days/yr) * (2 Legal staff) * (Legal counsel $/hr)) ------------------------------------------------------------------------------------------------------------------------------------------------------------- TOTAL INDIRECT BENEFITS $0 $247,856 $805,847 $807,053 $1,860,756 -------------------------------------------------------------------------------------------------------------------------------------------------------------
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