De-Mystifying ROI Calculation
for SharePoint
SHAREPOINT FEST DC
APRIL 2015
SARAH HAASE
Librarian http://blog.splibrarian.com
[email protected]
Number of
children: SharePoint
ROI
Saturday Adoption
2 Twin Cities @sarahhaase Governance
“Strive not to be a success, but rather to be of value.”
- Albert Einstein
The Dark Ages…
The Age of Justification
The Age of Mystery
The Age of Enlightenment
Your SharePoint solution isn’t complete until
you’ve measured its effectiveness.
“What
you get
for your
“Getting effort”
back more “More
ROI
than you money
put in” saved than
paid”
“Say what you mean;
mean what you say!”
“ROI = Risk of Ignorance”
ROI is…
• A cool acronym
• A method of quantifying benefits reaped
• A way to “feel good” about an investment
• A way to offset opportunity costs
• A method for validating good decisions
• An afterthought
TYPICAL measurements
Number of sites
Successful upgrade Business adoption
and site collections
Percentage of
“business critical”
Space consumption Business reliance
docs stored in
SharePoint
BETTER measurements
Shortened Quantifiable Quantifiable
business drop in user drop in
processes confusion “hunting” time
Use in place of Successful
Actual dollar
expensive replacement of
savings
alternatives legacy systems
The cost of ignoring ROI
Quantitative ROI Qualitative ROI
Money Emotional
-Increased revenue -Improved employee morale
-Eliminated tools -Elimination of unpopular tasks
-Increased productivity -Reduced user confusion
-Lowered overhead per sale -Happier customers
Time Evolution of work
-Streamlined business processes -Ability to focus on higher-value tasks
-Just-in-time (JIT) information -More automation, fewer mistakes
-Less rework -Simplify the “hairball”
-Faster time-to-market -Reduce employee turnover
Tool Replacement
• Need
– Replace the legacy version of Siemens’ Team Center.
• Solution
– Built a “lite” PLM tool in SharePoint 2013 to track item-level attributes, create/track item-
level schedules and enable storage/collaboration on item-level documents.
• Benefits
– The SharePoint PLM was built and deployed in 3 months at a cost of less than $50,000
– SharePoint offers better system performance and requires fewer clicks to “get the job done”
– Stronger document management features enable faster document retrieval, quicker online
collaboration & reduced wait times
– Avoided a costly $1.25 million upgrade for Siemens’ Team Center
– Saved $154,000/year in license support, hardware and infrastructure costs
Proof of Concept (POC) Testing
Expenditure
$800,000
• Build a proof of concept
$700,000
– Low/no cost
$600,000
– Leverage existing platform
$500,000
– Minimal infrastructure changes
$400,000
– Leverage existing resources
$300,000
– Test out requirements
$200,000
$100,000
$0
Other Sharepoint
Application
Revenue Generation
• Need
– Efficient process for setting up & managing pre-order titles
• Solution
– Moved data online to SharePoint
– Built a 5-stage workflow to manage the item setup process
• Benefits
– Faster speed-to-market, stronger pre-order sales
– Increased market share in pre-order titles
– Customer satisfaction increase—we had the products they’re looking to buy
– Version history & metadata enables easy tracking & reporting
– Total savings/revenue generation for Year 1 = $240,000+
More $$$ savings…
• Fewer email attachments Lower messaging costs
• Single source storage Lower space costs
• More effective search (aka “findability”) Less document re-
creation cost
Base formula
Time to
# of Hourly Process
complete
iterations $$$ rate cost
1 iteration
10 minutes $433
4 hours x 52 times/year x $50/hour = $10,400
“Before”
process
cost
Cost
savings
“After”
(ROI)
process
cost
Time Savings
• Need
– Build automated charts to summarize User Acceptance Testing (UAT) results
• Solution
– Migrate UAT data to SharePoint lists
– Use Google Visualization APIs or Collabion Charts web part to auto-chart data
• Benefits
– No more time spent manually building/formatting charts in Excel
– Charts are dynamic, containing up-to-the-second reporting on test cases
– Charts are accessible online; no more emailing large Excel spreadsheets
– Project Managers are freed up to focus on value-add tasks
– Total savings = $30,000+/year
The BAD
The HOW
Work Evolution
• Need
– Rebuilt our SharePoint User Group (SPUG) community site to drive engagement/learning.
• Solution
– Re-branded our site with a new ”Learn. Play. Get Help. Join us!” theme
– Built a formal issue intake process for SharePoint help requests
• Benefits
– New branding enables quick & easy navigation
– Dashboard tracking allows us to assign, review and close out help requests quickly
– Prominent display of event posters has helped drive a 35% increase in meeting attendance
– Site visits are up 400%
– “Taking the site away would fundamentally erode user confidence. The end result would
be a drop in SharePoint usage.”
Find what is needed.
Plant your stake.
Find the “right” first project
Business team that Solution you can
Business PAIN includes key build with OOB
influencers components
Right-sizing – you
Simple problems
need something
that hit a lot of Early adopters
you can deliver
people
quickly
Succinct business
need – ideally with Frequent business
Quantifiable ROI
repeatable rhythm
elements
Take baseline measurements.
Calculate.
Calculating ROI: A how-to guide
Build your Gather your Choose a
solution data medium
Ask the key Draft the ROI
Wait!
questions summary
Schedule a Explain your Review &
review methodology approve
Spread the word.
“Most SharePoint projects…despite the rhetoric and case
studies, have fundamentally failed.”
- Ant Clay
The SharePoint Governance Manifesto
https://leanpub.com/The-SharePoint-Governance-Manifesto
SHARE 2013| 46
Questions?
http://blog.splibrarian.com/
sarah@splibrarian. com
@sarahhaase
