1. Developing a Business-Case for Intranet Investment and Measuring ROI
Strategic Intranets Summit
19 August 2010
Steve Lapwood
steve.lapwood@intergen.co.nz

2. Is your intranet user-centric?
How do you ensure your intranet strategy and development is linked to employee and organisational performance?
Can you say that your intranet and knowledge management is based on good business practice?
Is your intranet able to enhance collaboration?
Organisations often struggle with these questions as they attempt to justify further intranet development and investmentto senior management and at the same time get employee buy-in.
learn more about the tools that will enable your intranet to truly enhance your organisations performance.
Theme of the conference
3. Using practical examples, we examine how organisations justify investments to implement an intranet or refresh an existing one.
Identifying the problem: Why do we needed to invest? What improvements/benefits will be derived from the investment?
What makes a strong and believable business case?
How do you quantify and measure ROI?
Developing a Business Case for Intranet Investment and Measuring ROI
4. Do you need a business case for intranet?
5 years ago the answer would probably be no
Now?Well, yes .. But.
Question ???
5. 50% of SharePoint implementation had a business case
half required financial justification
Most have no management plan on features to be used
25% of organisations have no experience of ECM/DMs
22% provide guidance on content types and classification
15% have retention/disposal policies
risking content chaos within SharePoint as well as outside of it
In a recent AIIMs study:
6. Whats changed?
Higher
approval
Recession
Higher
RoI
Reduced
Capex/Opex
Tighter
Credit
Greater
Justification
Closer
Scrutiny
Delegation
Limits
Job
(in) security
7. What makes a strong business case?
8. Business Value
Source: Wikipedia
9. Market share, revenue, profitability
(New) products & services
Speed to market, adoption rate
Profitability, loyalty/churn rate
Reduced cost
Process improvement, shared services, self service, leverage investments, upgrade/refresh
Intangible benefits
Satisfaction, market perception, referrals
Perceived business value for Management
10. The Productivity Curve
Improved future state
Initial State
BPI begins
Performance
Learning
Curve
Dont quit here!
Time
Source: Karl Wiegers (2005)
11. Business Case or Proposal?
Businesscase
Proposal
Executive summary
Scope and Objectives
Success factors
Approach & Solution
Plan, risks and deliverables
Investments, RoI
Implementation Plan
Benefits metrics
Executive summary
Scope and Objectives
Success factors
Approach & Solution
Plan and deliverables
Benefits & Costs
Selling
Selling
Control
12. Key stakeholders
Sponsor
Business
owners
Suppliers
Customers
doubters
Executives
Staff
13. How many business cases?
14. Persuasive descriptions of:
What is proposed and why
How it will be implemented
Functions, Processes, Information, People
When phases, timelines
How much financial plus organisational investments
How will it cope with agile business needs
What are the benefits, how and when will they be realised
Successful Business Cases
15. Business Case Content - example

Outcomes roadmap

16. Business benefits (by outcome) 17. Quantified benefits value 18. Costs/ROI Financial scenarios 19. Outcomes, deliverables and benefits planned (with metrics)Source: Wikipedia
20. 76% of executives rate RoI as somewhat or very important
BUT only 6% were actually measuring
Priorities:
Increase in competitive advantage
Reduced cost of doing business
Improved efficiency
Improved customer service
Increased revenue
Importance of RoI
Source: Prescience Digital Media 2009
21. Only 32% of projects are seen as successful by the business
24% are cancelled or never implemented
Sponsors are now held accountable for benefits realisation
For some it is career limiting/terminating
Sponsors increasingly need to validate the benefits
long after the deployment
Project teams are now an integral part of the deployment and change management to achieve BAU
How about benefits actually realised?
Source: Standish CHAOS Report 2009
22. How do you quantify and measure RoI?
23. Place to find stuff
Scope of Intranet/Extranet
Information portal
Content libraries
Communications
People
Dashboards
Ideas
Best practice guides, how2
Discussions
Feeds
Place to do stuff
Transact (through applications)
Information capture
Collaboration
Forms
Self service
Workflow
Content create, review, publish
Virtual meetings
Instant messaging
24. Tangible
Benefits
Top line
Faster time to market
Faster, more services
Customer loyalty
Reduced costs
Travel costs
Mailing costs
Email traffic
Search time, duplication
Reduced errors, rework
Staff replacement
Faster applications development
Maintenance and support
Performance
Transactions per staff
Growth without growth
25. Intangible
Benefits
Improved knowledge base
Integrated applications and information
Hold admin level with growth
Self-service reports
Platform for applications
Speed and cost of intranet applications
Flexibility for changing business needs
Improved service
Faster order to delivery
Increased loyalty, reduced churn
Increase referrals
Staff attraction and retention
Staff education and development
Greater empowerment
Reduced escalation
26. ROI measures quantitative
RoI Framework
Staff morale
Quality of transactions
Quality of information
Level of compliance
Effort to process requests
Reputation in market, with peers
Awards, certification
Staff capability development
Staff empowerment
Senior management focus - strategy and leadership
Customers lost, gained
Customer satisfaction, referrals
Days outstanding
Staff turnover cost and time
Learning time - effectiveness
Time to market
New offerings
Number of transactions
Size of transactions
Staff satisfaction levels
Roi measures - qualitative
27. Global corporate insurance company - collaboration
1 new product per year, 10% take-up
442% over 5 years
Global wealth management company extranet portal
Sharing analysis with high value clients 12% loyalty
1M per year revenue increase
Examples
28. UK engineering manufacturer extranet portal
Gained second service contract
50M over 10 years
Regional Development Bank extranet collaboration
Reduced cycle time from 18 months to 9 months
Improved quality of loans, increased approvals
Examples
29. IBM W3
Examples
52% are more satisfied to be an IBM employee because of information obtained on W3
MSWeb
33% agree completely that MSWeb saves them time
27% agree completely that it has helped to improve their productivity
Source: Prescience Digital Media 2009
30. US Facilities MGT CO
Examples
Has increased leads by more than 100%.
$90 million dollars US in sales volume
UK Telco
Ideas Jar encourages staff to be submit ideas online
Approx. 10% of ideas are implemented
Saved 100m over4 years
Source: Prescience Digital Media 2009
31. Summary
32. Looked at why we need a business case
Discussed what makes a strong business case
Reviewed the tangible and intangible measures for RoI
Summary

To achieve measurable benefits for the business