justifying taxonomy projects: taxonomy boot camp 2009

18
Copyright © 2009 Earley & Associates Inc. All Rights Reserved. Justifying Taxonomy Projects Approaches for Calculating Return on Investment Getting the most from taxonomy, search and content processes

Upload: earley-amp-associatesinc

Post on 13-Jan-2015

4.616 views

Category:

Technology


0 download

DESCRIPTION

Presented by Seth Earley at Taxonomy Boot Camp 2009

TRANSCRIPT

Page 1: Justifying Taxonomy Projects: Taxonomy Boot Camp 2009

Copyright © 2009 Earley & Associates Inc. All Rights Reserved.

Justifying Taxonomy Projects Approaches for Calculating Return on Investment

Getting the most from taxonomy, search and content processes

Page 2: Justifying Taxonomy Projects: Taxonomy Boot Camp 2009

Copyright © 2009 Earley & Associates Inc. All Rights Reserved.

Leveraging Information Asset Investments

• Typical investments in information assets include:– Content management infrastructure– Portals, technologies for integration– Time and energy spent organizing information– Taxonomies, metadata standards, information

architecture

• How do you get the most from existing investments?– Improve search– Improve usability– Improve content processes

2

Page 3: Justifying Taxonomy Projects: Taxonomy Boot Camp 2009

Copyright © 2009 Earley & Associates Inc. All Rights Reserved.

Content Supports Process

• Content by itself is not very useful• Content applied to solving a problem is useful• How do we measure the ability to solve a

problem?• What is the nature of the problem?• What allows the problem to be solved?• What impedes the ability of a user to solve a

problem?

3

Page 4: Justifying Taxonomy Projects: Taxonomy Boot Camp 2009

Organizational Strategy

Business Unit Objectives

Increase customer satisfactionIncrease customer satisfaction

Expand offeringsExpand offerings Develop new marketsDevelop new markets

Business Processes

Customer SupportCustomer Support Customer acquisitionCustomer acquisition

Engineering Library

Engineering Library

Knowledge base

Knowledge base Marketing

Collateral

Marketing Collateral

Processes enable objectives

L I N K

A G

E

Alignment, linkage, measurement

Product DevelopmentProduct Development

Content Sources

Grow top line revenueGrow top line revenue

Content supports processes

Objectives align with strategy

Working here (tools,

technology, IA, taxonomy,

search, etc)

Measuring here (micro level -

effects)

Measuring here (macro level -

outcomes)

CEO- “Show me how this project will increase our revenue?”

Copyright © 2009 Earley & Associates Inc. All Rights Reserved.

www.earley.com 781-820-8080

Page 5: Justifying Taxonomy Projects: Taxonomy Boot Camp 2009

Copyright © 2009 Earley & Associates Inc. All Rights Reserved.

Task 1 Task 2 Task 3 Task 4 Task 5 Task 6 Task 7 Task 8 Task 9 Task 10

Ecommerce site – increased findability linked to increased conversions

Page 6: Justifying Taxonomy Projects: Taxonomy Boot Camp 2009

Copyright © 2009 Earley & Associates Inc. All Rights Reserved.

Content Reuse

• If we can’t find something and have to create from scratch, not a value producing activity

• Being able to find an asset and apply that asset to solving a problem reduces unnecessary activities

• Proposal creation– Consultants time can be measured, number of proposals,

amount of time per proposal, etc.

• Single sourcing of technical documentation– Create once, use in multiple locations

• Digital asset reuse– If a photo or illustration needs to be purchased rather than

reused, hard dollar costs

6

Page 7: Justifying Taxonomy Projects: Taxonomy Boot Camp 2009

Copyright © 2009 Earley & Associates Inc. All Rights Reserved.

Stock Photo Reuse

• Central marketing service organization manages Digital

Asset Management system

• System contained large amounts of stock photos –

average cost $125

• Cost of 10,000 photo inventory = $1.25mm

• Yearly downloads = 40,0000

• Assume 50% usage

• 20,000 x 125 = $2.5mm

• Net direct benefit = $1.25mm

• Compliance benefits = reduced legal exposure from incorrect

use of images, correct records management retention schedules

7

Page 8: Justifying Taxonomy Projects: Taxonomy Boot Camp 2009

Copyright © 2009 Earley & Associates Inc. All Rights Reserved.

Code Number of Incidents per code

Percentage of total where codes were used

Percentage of total incidents

Time per incident

Total number 25,164 (avg.) 9.6

K helpful 3,833 18% 15% 5.45K not effective

455 2% 2% 8.49

K not available

3,313 15% 13% 10.35

K not required

13,992 65% 56% 5.95

no code used 3,571 not applicable 14% 8.22

Compliance 86%

Use/Opp % 68%

KH/Use % 50%

• Average Reactive Time Per Incident (TPI) with knowledge not available (KNA) - 10.35hrs

• Knowledge Helpful (KH) Average Reactive TPI - 5.45hrs

• Knowledge Helpful Comparison to Average Time per Incident 5.45/9.6hrs = 57%

• Knowledge Helpful Time Saved Per Incident - 43%

Call Center Efficiency

Page 9: Justifying Taxonomy Projects: Taxonomy Boot Camp 2009

Copyright © 2009 Earley & Associates Inc. All Rights Reserved.

The Challenge of ROI

• Budgets are tight – pressure to show ROI in <12 months

• Significant investment already made, yet users complain

• Financial terminology and approaches seem arcane to IT (internal rate of return, net present value, discounted cash flow, etc.)

• Soft vs. hard measures, indirect vs. direct benefits

9

“Two-thirds of financial executives remain unclear about how to set IT spending levels or how to assess the business value of such spending. Only 6% of financial executives feel they have an IT strategy aligned with corporate goals.”

Fifth Annual Survey, Technology Issues for Financial Executives

Page 10: Justifying Taxonomy Projects: Taxonomy Boot Camp 2009

Copyright © 2009 Earley & Associates Inc. All Rights Reserved.

Business Investment Drivers

• Efficiency - Cost Savings– Doing the same job faster, cheaper, or with fewer

resources than it was done before

• Edge - Return on Investment– Changing some aspect of what the business does,

resulting in growth, increased revenue, mitigation of business risk, or other strategic advantage

• Effectiveness - Return on Assets– Doing a better job than the one you did before,

making other resources more productive and increasing their return on existing assets and attainment of mission

Page 11: Justifying Taxonomy Projects: Taxonomy Boot Camp 2009

Copyright © 2009 Earley & Associates Inc. All Rights Reserved.

Common Pitfalls in Specifying ROI

• Not knowing the expected payback period– Finance may only be approving same-year ROI projects

• Investments in infrastructure – Increased revenue can arise from a number of factors,

more difficult to attribute causality

• Information asset value varies (quality, type, applicability to process, target audience)– No single approach can account for value

11

Page 12: Justifying Taxonomy Projects: Taxonomy Boot Camp 2009

Copyright © 2009 Earley & Associates Inc. All Rights Reserved.

Framing the ROI Discussion

• What do you mean by ROI?• Is it a formal measure or informal impact?• What can be currently measured?• What measurement baselines are in place?• How can you project benefits?

– Pilot, proof of concept, simulation– Usability studies– Search metrics– Content process quality

• Subjective measures consistently applied– User satisfaction

12

Page 13: Justifying Taxonomy Projects: Taxonomy Boot Camp 2009

Copyright © 2009 Earley & Associates Inc. All Rights Reserved.

Understand and Defend Your ROI Analysis:

• Investment analysis with direct financial impact– If we invest $1mm in _________ it will provide new

capabilities that will have a measurable financial impact on:

• New revenue streams• Reduced costs

• Analysis of various metrics with indirect financial impact– Customer satisfaction– Asset quality– Customer retention– Employee productivity– Time to market

13

“49% of survey respondents said that finding the information needed to do their jobs is ‘difficult and time-consuming’ - 55% averaged 4 hours per week and 24% spent 8+ hours per week looking for information.”

AIIM, July, 2008

Page 14: Justifying Taxonomy Projects: Taxonomy Boot Camp 2009

Copyright © 2009 Earley & Associates Inc. All Rights Reserved.

Create a Compelling Cost Justification

• Need capabilities whose benefits are difficult to quantity – look for hard business numbers

• New methods for doing business – models not established, e.g. reusing content from a travel book and sending to cell phones as “travel tip of the day”

• Focus on direct cost reduction, better return on existing assets, business benefits with competitive edge

14

“An enterprise with 1,000 knowledge workers wastes $48,000 per week – $2.5 million per year – due to an inability to locate and retrieve information.”

The High Cost of Not Finding Information, IDC

Page 15: Justifying Taxonomy Projects: Taxonomy Boot Camp 2009

Copyright © 2009 Earley & Associates Inc. All Rights Reserved.

Taxonomy Benefit Examples

ECM Taxonomy Framework1. Reduced IT cost for unified

information architecture development

2. Reduced cost of deployment for successive migrations (taxonomy development, content tagging, governance)

3. Increased operational efficiency and search accuracy

4. Unified business process context for content drives increased enterprise agility and strategic BI visibility

Records Management Taxonomy1. Reduced labor costs for

retention classification

2. Reduced administrative support costs for records tracking and retrieval

3. Increased effectiveness of Legal Department for records retention policy enforcement

4. Mitigation of business risk for legal discovery compliance

Page 16: Justifying Taxonomy Projects: Taxonomy Boot Camp 2009

Copyright © 2009 Earley & Associates Inc. All Rights Reserved.

Projected Value of Benefits

312,500

117,188

312,500

468,750

146,484

312,500

468,750

244,141

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

$1,100,000

$1,200,000

Year 1 Year 2 Year 3

3-Year Benefit Contribution

Mitigation of business risk for legaldiscovery compliance

Increased enterprise agility andstrategic BI visibility

Increased effectiveness of Legal Departmentfor RM policy enforcement

Increased efficiency and accuracy forWorkers’ Compensation LOB

Improved return on assets for more effectivedeployment of ECM/RIM SW

Reduced cost of deployment for successiveLOB migrations

Reduced IT cost for unified informationarchitecture development

Reduced administrative support costs forrecords tracking and retrieval

Reduced LOB labor costs for retentionclassification

Page 17: Justifying Taxonomy Projects: Taxonomy Boot Camp 2009

Copyright © 2009 Earley & Associates Inc. All Rights Reserved.

• Information on content management strategy

• Free webinars• White papers and research

17

Contact:Seth EarleyPresident, Earley & Associates, [email protected]

Register at www.earley.com and download:

• Topics include:– Content analysis– Taxonomy and metadata– Search and search integration– Content lifecycles

Earley & Associates is now offering the AIIM Information Organization and Access course.

Page 18: Justifying Taxonomy Projects: Taxonomy Boot Camp 2009

Copyright © 2009 Earley & Associates Inc. All Rights Reserved.

18

Core CapabilitiesDocument/Content/Management:• Strategy and requirements planning• Taxonomy, Metadata, Object modeling• Audit and analysis• Migration • Tagging and indexing • Lifecycle and workflow planning• Technology selection, RFP development• Governance

Taxonomy & Metadata:• Taxonomy strategy• Taxonomy development (for e-

commerce, faceted search, ECM, DAM, enterprise taxonomy, thesauri)

• Taxonomy evaluation and testing• Taxonomy implementation • Taxonomy governance and training• Taxonomy tool selection• Metadata standards development• Metadata schema design• Metadata governance 

18

Digital Asset Management:• DAM strategy• DAM taxonomy• DAM technology evaluation• Asset lifecycle management• Marketing resource management (MRM)

Information Architecture/Usability:• Usability studies (site, navigation, taxonom

y)• Wireframes and IA design 

Search:• Search audit and user testing• Search strategy and ROI analysis• Taxonomy for faceted search and search

optimization• Search deployment • Search and business intelligence• Search tuning and SEO• Search technology evaluation/tool

selection