intranet roi: 5 approaches - bryan robertson
DESCRIPTION
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.TRANSCRIPT
Bryan RobertsonSr. Analyst OpenRoad
Intranet ROI:
Five Approaches
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#3 The information in this presentation is confidential. Please do not redistribute. Thanks!Andrew Magill – (CC)
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Introduction
Ideas are plentiful
Money and Time are scarce
ROI is what makes the difference between ideas that are implemented and those that are not
ROI APPROACHES
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Your ROI approach must fit your organization
Eric E Castro – (CC)
Yoel Ben-Avraham – (CC)
HARD NUMBERS#1
$ £ ¥ €
Directly linked
Realized
Digitize
Automate
Intranet 1.0 ROI
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Mikhail Esteves– (CC)
Dan Dzurisin – (CC)
Hard Numbers
Require: real currency, directly linked investment to outcome, must be realized
Traditionally digitization and automation
Associated with Intranet 1.0, largely evaporating
Hard Number Solutions
Piggybacking and bundling projects
Skunk works projects
NOT POSSIBLE / FAITH BASED ROI
#2
Jeffrey Walker (late)CEO of Atlassian, 2007
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.
Andrew McAfee Robert Kaplan David Norton
Intangible Asset Value
=Ability to help
an organization implement its strategy
Andrew Magill – (CC) Eliazar Parra Cardenas – (CC)
ROI Not possible:
Some believe that it isn’t worth quantifying benefits as financials
Value of these “Intangible Assets” is in the ability it provides an org to implement strategy
Time/Money required can be used to compare opportunity costs
LAGGING ROI#3
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Paul Sapiano – (CC) Katrina Tuliao – (CC)
Lagging ROI:
Request an innovation bucket of funds
Treat it as a stock portfolio. Return at portfolio level not individual projects
Make clear there will be some failure
Report back regularly on progress and ask for more money or cancel program
ROI OF SOLVED PROBLEMS#4
Jon MellSocial Business blogger, 2008
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.
Supply chain metaphor image
Dennis Howlett
Dennis HowlettZD Net blogger, 2008
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.
Russ [rfduck] – (CC)
Solved problems:
Solve a specific problem instead of making a generic business case
e.g. Make case to solve supply chain issues rather than justify extranet
SOFT / PROXY NUMBERS#5
anyjazz65 – (CC)
Sales
Finding ROI: Measuring Intranet InvestmentsPrescient Digital
Productivity
CompetitivenessApplication Access
InfrastructureCollaboration
Time to market
Customer Service
Human Resources
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CAUTIO
N
Peter Merholz
Soft/proxy numbers:
Use non-financial numbers that will show improvement in an aspect of corporate performance
Use caution when using time savings metrics
IDENTIFYING THE RIGHT APPROACH
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SUMMING UP
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Yoel Ben-Avraham – (CC)
Approaches
#1 Hard Numbers
#2 Not Possible / Faith Based ROI
#3 Lagging ROI
#4 ROI of Solved Problems
#5 Soft / Proxy Numbers
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