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Intranet ROI: 5 Approaches - Bryan Robertson

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Not sure where to start in finding Return on Investment (ROI) for your Social Intranet business case? Bryan takes a look at some of the intranet value and ROI models in the industry and helps you categorize your organization for best fit. This review will put some structure around your thinking and give you a launch pad for having the ROI discussion with your CFO.

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Intranet ROI: 5 Approaches - Bryan Robertson

  1. 1. Intranet ROI:<br />Five Approaches<br />Bryan Robertson<br />Sr. Analyst OpenRoad<br />
  2. 2. PP Digital – (CC)<br />
  3. 3. #3 The information in this presentation is confidential. Please do not redistribute. Thanks!<br />Andrew Magill – (CC)<br />
  4. 4. David Goehring – (CC)<br />
  5. 5. Dplanet::– (CC)<br />
  6. 6. V. H. D. – (CC)<br />
  7. 7. Introduction<br />Ideas are plentiful<br />Money and Time are scarce<br />ROI is what makes the difference between ideas that are implemented and those that are not<br />
  8. 8. ROI Approaches<br />
  9. 9. Kbear65 – (CC)<br />
  10. 10. Your ROI approach must fit your organization<br />
  11. 11. Yoel Ben-Avraham – (CC)<br />Eric E Castro – (CC)<br />
  12. 12. Hard Numbers<br />#1<br />
  13. 13. $ £ ¥ €<br />Directly linked<br />Realized<br />
  14. 14. Digitize<br />Automate<br />
  15. 15. Intranet 1.0 ROI<br />
  16. 16. V. H. D. – (CC)<br />
  17. 17. Mikhail Esteves– (CC)<br />
  18. 18. Dan Dzurisin – (CC)<br />
  19. 19. Hard Numbers<br />Require: real currency, directly linked investment to outcome, must be realized<br />Traditionally digitization and automation<br />Associated with Intranet 1.0, largely evaporating<br />
  20. 20. Hard Number Solutions<br />Piggybacking and bundling projects<br />Skunk works projects<br />
  21. 21. Not Possible / Faith Based ROI<br />#2<br />
  22. 22. ROI? Wrong question. That may not be a popular thing to say in a CFO’s office, or perhaps a CIO’s office, but these people are not the ones driving 2.0 adoption, or buying 2.0 tools, in the vast majority of instances. What’s the ROI on email? What’s the ROI on IM? If there’s a study, I guarantee it’s crap. ROI studies on any software are famous fiction.<br />Jeffrey Walker (late)<br />CEO of Atlassian, 2007<br />
  23. 23. Andrew McAfee <br />Robert Kaplan<br />David Norton<br />
  24. 24. Intangible Asset Value<br />=<br />Ability to help <br />an organization <br />implement its strategy<br />
  25. 25. Andrew Magill – (CC)<br />Eliazar Parra Cardenas – (CC)<br />
  26. 26. ROI Not possible:<br />Some believe that it isn’t worth quantifying benefits as financials<br />Value of these “Intangible Assets” is in the ability it provides an org to implement strategy<br />Time/Money required can be used to compare opportunity costs<br />
  27. 27. Lagging ROI<br />#3<br />
  28. 28. Paul Sapiano – (CC)<br />Katrina Tuliao – (CC)<br />#FAIL<br />ArtemFinland– (CC)<br />
  29. 29. Lagging ROI:<br />Request an innovation bucket of funds<br />Treat it as a stock portfolio. Return at portfolio level not individual projects<br />Make clear there will be some failure<br />Report back regularly on progress and ask for more money or cancel program<br />
  30. 30. ROI of solved Problems<br />#4<br />
  31. 31.
  32. 32. The conclusion I took away was that ROI only makes sense when applied to a specific business problem - then you piggy-back on the ROI of that business problem, rather than trying to make a generic ROI case for widespread wiki, blog, or social software adoption.<br />Jon Mell<br />Social Business blogger, 2008<br />
  33. 33. Supply chain metaphor image<br />Dennis Howlett<br />
  34. 34. In my argument, breakthrough ROI comes from seeing these technology through the lens of collaboration, which in turn implies process and context. I am mindful that huge amounts of value continue to be locked up in supply chains. AMR quoted a number of $3 trillion in 2005. Has that materially changed? Simply being able to communicate across supply chains in a meaningful manner could do wonders to lubricate those rusty wheels.<br />Dennis Howlett<br />ZD Net blogger, 2008<br />
  35. 35. Russ [rfduck] – (CC)<br />
  36. 36. Solved problems:<br />Solve a specific problem instead of making a generic business case <br />e.g. Make case to solve supply chain issues rather than justify extranet<br />
  37. 37. Soft / Proxy Numbers<br />#5<br />
  38. 38. anyjazz65 – (CC)<br />
  39. 39. Human Resources<br />Sales<br />Customer Service<br />Productivity<br />Application Access<br />Competitiveness<br />Infrastructure<br />Collaboration<br />Time to market<br />Finding ROI: Measuring Intranet Investments<br />Prescient Digital<br />
  40. 40. David Goehring – (CC)<br />
  41. 41. CAUTION<br />Peter Merholz<br />
  42. 42. Soft/proxy numbers:<br />Use non-financial numbers that will show improvement in an aspect of corporate performance<br />Use caution when using time savings metrics<br />
  43. 43. Identifying the right approach<br />
  44. 44. Dave Keeshan – (CC)<br />
  45. 45. Summing Up<br />
  46. 46. Yoel Ben-Avraham – (CC)<br />Eric E Castro – (CC)<br />
  47. 47. Approaches<br />#1 Hard Numbers<br />#2 Not Possible / Faith Based ROI<br />#3 Lagging ROI<br />#4 ROI of Solved Problems<br />#5 Soft / Proxy Numbers<br />
  48. 48. V. H. D. – (CC)<br />
  49. 49. Jessica.Tam – (CC)<br />
  50. 50. mandiberg – (CC)<br />
  51. 51. Bryan Robertson<br />bryanr@thoughtfarmer.com<br />604.694.0554 x105<br />twitter.com/bryantrobertson<br />thoughtfarmer.com/blog<br />

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