ACC-CostBenefit-Intranet-

AnewAmerica Intranet Cost Benefit Analysis Tool

SETUPACC Working Assumptions:

Size of your organisation's total projected intranet user population 20Size of target population for this analysis 11

Number within target population who will have Internet access 10Number within target population who will need new PCs 2Number within target population currently not networked 1Average annual salary and benefits of target population 30000 $

Average working hours in a day 8 hoursAverage working days in a year 232 days

CurrencyAll default entries are in U.S. Dollars

QueriesAddress any queries or comments about the Intranet calculator to

[email protected]

ProtectionWorksheets can be unprotected using the password 'celestine'.

AnewAmerica Intranet Portal Strategy Cost-Benefit Tool

Prepared by Carlos F. Camargo 1/13/04 Page 1

Intranet Cost Benefit Analysis Tool

COSTS

Start-up capital costsWrite-off period 3 years

Cost of a new PC 1000 $Cost of providing a network connection to a PC 300 $

Cost of web servers and server software 5000 $

Information publishingNumber of custom software applications 1

Cost per custom application 15000 $Number of off-the-shelf software applications 0

Cost per off-the-shelf application 2000 $

Intranet e-mailCost for e-mail server 2000 $Cost per e-mail client 50 $

Document managementNumber of custom software applications 0



TrainingNumber of custom software applications 1



WorkflowNumber of simple form-submission applications 1

Cost per form-submission application 1000 $Number of custom, fully-integrated applications 1

Cost per custom application 15000 $Number of off-the-shelf fully-integrated applications 1


Databases and other custom systemsNumber of custom software applications 1

Cost per custom application 25000 $

Collaborative Communications-DiscussionNumber of custom software applications 0



Start-up revenue costsData Model (DB) & Intranet GUI Design consultancy 10000 $

Promotion 1000 $Training cost 100 $ per user

Ongoing capital costsUpgrades to server hardware and software (as % of start-up cost) 25 %pa

Upgrades to off-the-shelf applications (as % of start-up cost) 25 %pa

Ongoing revenue costsNumber of editorial and design personnel 1

Cost per editorial and design person 30000 $paNumber of technical personnel 0

Cost per technical person 45000 $paCost per PC of providing Internet access 50 $pa

Maintenance of custom applications (as % of development cost) 25 %paOngoing consultancy (as % of start-up cost) 25 %pa

Ongoing promotion (as % of start-up cost) 10 %paOngoing training (as % of start-up cost) 20 %pa


Intranet Cost-Benefit Calculator

BENEFITS

Percentage of full year's benefit expected in year 1 50 %

Information publishing% of target population affected by this intranet usage 90 %

Direct cost savings1. Formal printed publications

Approx. number of pages of printed material received per person per year 500 paCost in cents per page, including delivery 6 cents

Proportion of these pages that could be delivered solely on-line 100 %

2. Internal photocopied/laser printed publicationsApprox. number of pages received per person per day 10 pd

Cost in cents per page, including delivery 4 centsProportion of these pages that could be delivered solely on-line 100 %

Labor savingsMinutes saved per person per day for each of the following:

Faster access to information 5 minsMore rapid and easy exchange of information 5 mins

Less duplication of effort - only one owner for each piece of information 2 minsThe ability to control when you access information, i.e. less interruptions 2 mins

Productivity increases% increase in personal productivity for each of the following:

Availability of more accurate and up-to-date information 5 %Availability of information not previously available 10 %

Intranet e-mail% of target population affected by this intranet usage 100 %

Direct cost savings1. 'Phone calls

Phone calls per person per day to others (incl. external) not on e-mail 2 pdCost in cents per call 15 cents

Proportion of these calls that could be replaced with e-mail 50 %

2. FaxFaxes sent per person per day to others (incl. external) not on e-mail 1 pd

Cost in cents per fax 10 centsProportion of these faxes that could be sent as e-mails (+ attachments) 90 %

3. MemosMemos sent per person per day to others (incl. external) not on e-mail 3 pd

Cost in cents per memo (paper & delivery) 5 pProportion of these memos that could be sent as e-mails 100 %

4. LettersLetters sent per person per day to others (incl external) not on e-mail 2 pd

Cost in cents per letter (paper, envelope & postage) 30 pProportion of these letters that could be sent as e-mails 100 %

5. Diskettes/other digital mediaItems sent per person per year to others (incl. external) not on e-mail 5 pa

Cost in cents per item (transfer, blank media, post & packaging) 200 centsProportion of these that could be sent as e-mail attachments 75 %

Labor savings



Minutes saved per person per day for each of the following:Less time trying to get through on the 'phone 5 mins

Less time spent preparing and checking items to be sent out 5 minsThe ability to control when you access information, i.e. less interruptions 3 mins

Productivity increases% increase in personal productivity for the following:

Faster access to information 5 %

Document management% of target population affected by this intranet usage 90 %

Direct cost savings1. Internal photocopied/laser printed documents

Pages received per person per day for review/editing/approval 5 pdCost in cents per page, including delivery 10 cents

Proportion of these that could be processed on-line 100 %

2. Diskettes/other digital mediaItems sent per person per year to others not able to access on-line 5 pa

Cost in cents per item (transfer, blank media, postage & packaging) 200 centsProportion of these that would be accessed on-line 100 %

Labor savingsMinutes saved per person per day for each of the following:

Less time spent sending out documents for review/editing/revision 5 minsLess time spent locating/obtaining docs for review/edit/revision 2 mins

Less duplication of effort (data/content shared between docs) 2 minsLess errors caused by undertaking work on incorrect versions 2 mins


Faster access to accurate & up-to-date business documents 3 %

Training% of target population affected by this intranet usage 90 %

Direct cost savings1. Travel and accommodation

Number of classroom courses attended per person per year 2 paAverage cost per person per course for travel and accommodation 50 $

Proportion of these courses that could be delivered over the intranet 100 %



2. Course delivery costsAverage number of attendees per classroom course 10

Average length in hours of each course 7 hoursAverage cost per course for trainer, room and equipment 780 $

Labor savingsHours saved per person per year travelling to courses 4 hours

Reduction in time to complete training by using self-instructional methods 50 %


Immediate access to required knowledge and skills 1 %

Workflow% of target population affected by this intranet usage 90 %

Direct cost savingsNumber of forms completed per person per year 100 pa

Print, paper and delivery costs per form 10 pProportion of these forms that would be completed & submitted on-line 100 %

Labor savingsLess time spent per person per form in obtaining up-to-date copies 2 paFor each fully-integrated application identified under Costs above:

Number of days saved overall in admin time per year 100 days


Faster and more reliable admin processes 1 %

Databases/custom systems% of target population affected by this intranet usage 90 %

Labor savingsMinutes saved per person per day for the following:

Less time required to learn applications 2 minsLess time required to use applications 5 mins

Productivity increases% increase in personal productivity for the following:The availability of information not previously available 1 %

Discussion% of target population affected by this intranet usage 0 %

Direct cost savingsNumber of meetings attended per person per year 200 pa

Approximate cost of travel and accommodation per meeting 20 $% of these that could be effectively conducted using the intranet 100 %

Labor savingsMinutes saved per person per day for the following:

Less time spent travelling to meetings 5 minsLess time spent in meetings 5 mins

Productivity increases% increase in personal productivity for each of the following:

Faster resolution of issues/concerns 1 %Resolution of issues/concerns that would not otherwise be possible 1 %


Results Confidential Page 1

Organization Areaanalyzed

Start-up capital costsNew PCs 2000Networking 300Server hardware & software 5000 2750Applications:Information publishing 15000 8250E-mail (server) 2000 1100E-mail (clients) 550Document management 5000 2750Training 7500 4125Workflow 21000 11550Databases/custom systems 25000 13750Discussion 1000 550

Total 47675

Start-up revenue costsDesign consultancy 10000Promotion 1000Training 1100

Total 12100

On-going capital costsServer upgrades 1250 687.5Applications upgrades 3250 1925

Total 2612.5

Ongoing revenue costsEditorial/design personnel 30000Technical personnel 0 0Internet access 500Maintenance of custom apps 15875 8731.25Design consultancy 2500Promotion 100Training 220

Total 42051.25

Summary of costs



Direct cost labor Productivity Totalsavings savings benefits benefits

Information publishing 1216 8663 38739 48617E-mail 2609 8938 15714 27261Document management 1247 6806 8650 16704Training 2534 1760 2941 7235Workflow 99 26395 2941 29435Databases/custom systems 0 4331 2941 7272Discussion 0 0 0 0

Total 7706 56893 71926 136524

Summary of benefits



Year 1 Year 2 Year 3 Year 4BenefitsInformation publishing 24309 48617 48617 48617E-mail 13630 27261 27261 27261Document management 8352 16704 16704 16704Training 3618 7235 7235 7235Workflow 14718 29435 29435 29435Databases/custom systems 3636 7272 7272 7272Discussion 0 0 0 0

68262 136524 136524 136524Depreciation of capital costsNew PCs 667 667 667 0Networking 100 100 100 0Server h'ware & s'ware 917 1146 1375 688Applications 14208 14850 15492 1925

15892 16763 17633 2613Revenue costsEditorial/design personnel 30000 30000 30000 30000Technical personnel 0 0 0 0Internet access 500 500 500 500Maintenance of custom apps 0 8731 8731 8731Design consultancy 10000 2500 2500 2500Promotion 1000 100 100 100Training 1100 220 220 220

42600 42051 42051 42051

Total costs 58492 58814 59685 44664

Profit or loss 9771 77711 76840 91861Accumulated profit or loss 9771 87481 164321 256182

Profit & loss by year



Start-upCapital costs 47675Revenue costs 12100Total investment 59775

Year 1 Year 2 Year 3 Year 4Benefits 68262 136524 136524 136524Ongoing capital costs 0 2613 2613 2613Ongoing revenue costs 30500 42051 42051 42051Net return 37762 91861 91861 91861

Return on investment (%) 63 154 154 154Accumulated ROI (%) 63 217 371 524

Payback period (months) 15

Return on investment by year



Year 5

4861727261167047235

294357272

0136524

00

68819252613

300000

50087312500100220

42051

44664

91861348042




Year 5136524

26134205191861

154678



Graphs Confidential Page 1

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Benefits by type and intranet use

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Documents

ACC-CostBenefit-Intranet-