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