it initiative roi tool-nm

document.xls User Guide 1 of 30

Business Case ROI Workbook for IT Initiatives

On This WorksheetWorkbook Table of ContentsKey FeaturesModel Components / FlowchartInstructionsDisclaimerTerms of Use / Use Rights / End-User License Agreement (EULA)Support

Workbook Table of Contents

Title Description

Organizational Profile

Initiative Descriptions

Implementation Costs

IT Labor TCO Savings Estimates IT labor TCO (as-is and to-be) and TCO savings enabled by the solution

Direct Cost Savings Estimates non-labor direct IT and business cost savings enabled by the solution.

User Productivity Benefits

Revenue Impact

Financial Analysis

Key Features

Worksheet Name

Profile

Collects information about: organization size, location, and industry; end user types and labor costs; and the initiative to be modeled. This information is used to estimate default values for all costs and benefits throughout the rest of the model. It displays a summary of costs and benefits of the scenario modeled.

InitiativesFor Reference Only: provides key features, capabilities, benefits, and common vendors/products for the 18 sample initiative types included in the model.

CostsEstimates all costs (direct and indirect) needed to implement, fully adopt, and support the solution. Cost categories include: hardware, software, IT labor, and user labor, including one-time and annual on-going costs.

IT Labor

Direct Savings

Productivity

Estimates user time/labor savings enabled by the solution. First estimates the amount of time users spend conducting common business activities then estimates how much the solution is expected to increase the efficiency of conducting key activities. The time savings is discounted using a "Productivity Conversion Factor", then converted into $ value.

RevenueEstimates how and how much the solution is expected to increase revenue. The benefit is the profit on the incremental revenue.

KPIs Key Performance Indicator Assessment (Optional)

Assessment of how the solution may impact a variety of business KPIs. In this model, these KPI changes are not converted into financial benefits.

ROI Summary of costs & benefits by type; Cash flow analysis; calculation of ROI, payback period, NPV, and IRR; and graphs

Supports most types of enterprise-scale technology initiatives. Includes sample cost and benefit data for 18 common initiative typesComprehensive assessment of initiative costs and benefitsCosts: hardware; software; IT labor, training, and services; and user labor and trainingBenefits: IT labor TCO savings, other direct cost savings, user productivity benefits, revenue growth, and non-financial key performance indicatorsCalculates annual on-going IT Labor TCO (total cost of ownership)Comprehensive financial analysis. Calculates project cash flow, cost-benefit analysis, ROI, NPV, IRR, and payback period Supports rapid (30 minute) or detailed (3+ day) assessments. This model was designed to provide either a rapid assessment (by just entering/selecting basic organizational profile and initiative information) or a very detailed (3+ day) assessment by modifying hundreds of detailed inputs.Protected, yet customizable: Essentially all values can be modified. Many custom cost and benefit items can be added. Formulas and other areas of the model that should not be modified are protected (locked) to maintain intended functionality. HCR can provide additional fee-based customization, if desired. Based on industry-standard calculations and industry-leading methodologies. It is as transparent as possible so the user is able to understand how the costs and benefits are calculated. Provides research-based default values. Default values (labor costs, user type mix, financial information, etc.) are provided based on your industry, geography, organization size and initiative type to enable more rapid assessments. Extensive research was conducted to find highly reputation sources for these. Data/estimate sources are listed. You may overwrite any of the pre-populated defaults.User-friendly. The workbook contains instructions, descriptions, and references. Results are updated real-time and are displayed graphically throughout the model. Although the model is user-friendly, we recommend users have at least a moderately-advanced understanding of business value concepts to develop a credible business case.Free download. No registration required.

This tool is a comprehensive general-purpose business value model (ROI calculator) to support the development of business cases for enterprise-scale information technology-based projects. It provides a robust structure to help organizations assess the business value (costs, benefits, TCO, and ROI) of technology projects/initiatives. This workbook can be used as a standard corporate business case template for technology-based initiatives. It can also be used by consultants and technology vendors to articulate the business value of their products and solutions.


Business Case ROI Workbook for IT InitiativesModel Components / Flowchart

Instructions

The chart below graphically presents the components of the model.

- Read the "Terms of Use" and "Disclaimer". - Before making any changes to the workbook, save the workbook under a different name. This will preserve the original default values and formulas so you may return to them at a later time. - Navigate the workbook using the worksheet tabs at the bottom. Start with the "Profile" tab. This worksheet contains the most important cost and benefit drivers. You will also see a summary view of the costs and benefits of the scenario modeled. Enter/edit data in the "input" (light yellow) cells. Edit (overwrite) the default values to customize results for your particular organization/initiative. - Review the “ROI” worksheet to pre-view costs and benefits. - Review the detailed default metrics and calculations in the "Costs" (red tab) and Benefit (green tabs) worksheets. Although not required, we recommend completing the “Costs” worksheet first to more clearly define the initiative. Not all benefit worksheets are appropriate for all initiative types (for example, some infrastructure initiatives may not have any revenue impacts). - The "Financial Analysis" report (or any other worksheet) can be printed or saved as PDF/XPS. Portions of the model may be incorporated (e.g. “Paste Special As Picture”) into a more comprehensive business case-type report. - Additional instructions are provided in the model - If fee-based consultative guidance and/or customizations are desired, contact HCR.


Business Case ROI Workbook for IT InitiativesDisclaimer

Terms of Use / Use Rights / End-User License Agreement (EULA)

Support

© Copyright, 2006-2008, Hall Consulting & Research LLC, All Rights Reserved. www.hallcr.com

This tool is intended to help guide organizations in better understanding approximate/potential costs and benefits. Due to limitations of simulation tools, actual results may differ significantly than results estimated in this tool. Investment decisions should not be based on the results of this model alone -- it is not intended to be a substitute for professional advice.

This information is provided to you as a tool “as is” with the understanding that there are no representations or warranties of any kind either express or implied.

In no event shall HCR or suppliers be liable for any damages, including those arising as a result of HCR or supplier negligence, whether those damages are direct, consequential, incidental, or special, flowing from your use of or inability to use the tool, or information provided herewith, or results of the tool's use, even if HCR or suppliers has been advised of the possibility of such damages.

By using the software/document, you accept these terms. If you do not accept them, do not use the software. - You may use, copy, redistribute, display, print, and reproduce this software/document - You may NOT sell, rent, lease, or lend this software/document or portions/derivations of it - You may NOT create derivative works from this software/document - You may NOT "reverse-engineer" the software/document - You may only modify portions of the software/document designated as "Input" cells (light yellow cells) - You must maintain all copyright and other notices contained in this software/document. - You may incorporate only static (e.g. values, graphics) portions of this software/document within other documents (e.g. a business case report) as long as the dynamic (e.g. equations, macros) functionality of the workbook is not also incorporated or duplicated.

HCR does not provide free support for free downloads. However, we do welcome any comments, suggestions, and feedback.

HCR can provide fee-based services, including telephonic support, workbook customizations, and comprehensive consulting engagements to assist with business case development and validation.

http://www.hallcr.com/

document.xls Profile 4 of 30

Organizational Profile

Required Organization/Initiative Data Summary Pre-view of Results

Average / Mixed Per PC

Industry is used to pre-select various default values (i.e. user type mix, labor costs) Costs (3-Yr) $ 1,743 $ 8,716

U.S. Benefits (3-Yr) $ 5,339 $ 26,697

Used to scale labor costs and estimate default work hours per year Net Benefits $ 3,596 $ 17,982

Suburban / Mixed NPV (Net Present Value) $ 2,782 $ 13,908

Used to scale labor costs. Urban labor costs tend to be 15-20% higher than suburban locations.206%

Total Number of PCs in Scope 5,000 IRR (Internal Rate of Return) 124%

Number of PC Users in Scope 5,000 Payback Period 9 Months

This typically is approximately the same as the number of PCs. It is used to scale most costs and benefits. Number of PCs 5000

44% 2,223

56% 2,777

100% 5,000

PC Hardware & Operating System Upgrades

Financial Information

Organization Revenue ($ Millions) $ 3,925

10.3%

Discount Rate / Cost of Capital (WACC) 10%Used in Net Present Value calculations

3

A 3-year life-expectancy is standard for many IT projects. Some major initiatives may be 5 years.

Labor Costs

25%

Standard Work Hours per Year 1,824 * Non-cash compensation, such as benefits and Social Security

Costs & Benefits ($ per PC)

One-Time

IT Staff Labor Costs Initiative CostsSystems/Network Administrator/Engineer $ 93,190 25% $ 116,488 $ 2,240 $ 63.86 Hardware $ 606 $ 91 $ 879

Software Developer/Engineer $ 96,675 25% $ 120,844 $ 2,324 $ 66.25 Software $ 150 $ 34 $ 253

Help Desk / Technical Support $ 62,781 25% $ 78,477 $ 1,509 $ 43.02 IT Labor, Services, & Training $ 213 $ 18 $ 268

End-User Labor & Training $ 273 $ 24 $ 343

Total $ 1,242 $ 167 $ 1,743

PC User Labor Costs Initiative BenefitsIWs (Information Workers) $ 74,937 25% $ 93,672 $ 1,801 $ 51.36 IT Labor/Services TCO Savings $ - $ 751 $ 2,253

Data-entry or Structured Task Workers $ 58,937 25% $ 73,672 $ 1,417 $ 40.39 Other Direct Cost Savings $ 75 $ 108 $ 400

Average (weighted) $ 66,050 $ 82,563 $ 1,811 $ 45.26 User Productivity Benefits $ - $ 539 $ 1,616

** Base compensation plus bonuses Revenue Growth $ - $ 357 $ 1,070

Total $ 75 $ 1,755 $ 5,339


This worksheet contains key inputs/assumptions that drive cost and benefit calculations throughout the model. Defaults input values are provided based on industry, location, and organization size. These default input values should be reviewed and modifed as appropriate. A summary of the results is provided to the right to assist in viewing output implications of input changes. This summary data will be updated as changes are made throughout the model.

Enter values or select the closest fit from the drop-down menus. These are the most important inputs in the model. Your answers to these key questions will have the most significant impact on default cost and benefit drivers through-out the rest of the model.

Industry - select the closest-matching from the drop-down

Organization Total ($000)

Primary geographic location - select the closest-matching from the drop-down

Primary Site Locations - select the closest-matching from the drop-down box

ROI (Return on Investment) - [Total Net Benefits / Total Costs]

% of PC Users

# of PC Users

Portion of PC Users that are Information Workers (IWs)

Portion of PC Users that are Data-entry or Structured-Task Workers

Total PC-Users (# of Employees that use PCs on a regular basis)Information Workers (Knowledge Workers) perform non-routine, cognitive, or creative work that often requires both structured and unstructured information inputs from multiple sources -- and that is not repeated throughout the course of the work day or work week. Examples include a product manager, analyst, accountant, engineer, sales executive, CFO, or CIO.Data-entry and Structured Task Workers perform routine, structured tasks typically in a repeated manner. Examples include a customer service representative, insurance claims processor, or inside sales representative.

Initiative Type - Select the project type from the drop-down box that most closely matches the initiative to be modeled

This pre-populates all costs and benefits with sample data based on the initiative type. The sample data is only provided at a moderate level of detail. If you want to start with a blank slate (all zeros), select "No Sample Data - Zero-out all costs/benefits". Sample data should not be used for making investment decisions. Sample data is not meant to represent average/typical project results and is not based on research. It should only be used as a starting point for assessing the business value of your project. Initiative costs and benefits will differ substantially from one organization to another.

Default values are provided based on inputs above. Defaults may be adequate for rapid/ballpark assessments, but otherwise should be reviewed/modified.

Source of defaults is based on analysis of data from Fortune 500, Fortune Magazine and is industry-dependent (varies depending on industry selected above)

Margin % of Revenue (Net profit margin of new revenue enabled by the initiative)Default value is based on industry average. This margin rate is used to calculate the business value of incremental revenue enabled by the initiative

Duration of analysis (years) - Select from drop-down box.

Default values are provided based on inputs above. Defaults may be adequate for rapid/ballpark assessments, but otherwise should be reviewed/modified.

Burden rate (labor overhead as a % of cash compensation)*

Average Ann'l Cash

Comp-ensation**

Burden Rate

Burdened Annual Labor Cost

Burdened Weekly Labor Rate

Burdened Hourly

rateAnnual On-

Going3-Year Total

Source of salary data: based on HCR analysis of Bureau of Labor Statistics data and various 2007 Salary Surveys. Salary data is scaled based on industry, geography, and organization size.

Source of salary data: based on HCR analysis of U.S. Department of Labor, Bureau of Labor Statistics data; The World Bank, World Development Indicators Database; and Organisation for Economic Co-operation and Development. Salary data is scaled based on industry, geography, and organization size.

Costs (3-Yr) Benefits (3-Yr)$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$1,743

$5,339

Total Costs Vs Benefits (per PC)

Co

sts

& B

en

efi

ts (

$/P

C)

3-Year Total $-

$200 $400 $600 $800

$1,000 $1,200 $1,400 $1,600 $1,800 $2,000

$879

$253

$268

$343

Cost Summary (per PC)

End-User Labor & Train-ing

IT Labor, Services, & Training

Software

Hardware

Cost

s ($

per P

C)

3-Year Total $-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$2,253

$400

$1,616

$1,070

Benefit Summary (per PC)

Revenue Growth


Other Direct Cost Sav-ings

IT Labor/Services TCO Savings

Bene

fits

($ p

er P

C)

document.xls Initiatives 5 of 30

Description of Sample Initiatives (for reference only)

Infrastructure/Platform Technology InitiativesInitiative Type Key Features, Capabilities, Benefits Sample Vendors And Products

Storage

Security

Outsourcing

PC HW/OS Upgrades

· Improved performance, reliability, security, manageability, productivity

· Microsoft Windows Vista, Linux, Red Hat, Novell· Notebook, desktop, thin-client · Dell, HP, Apple, Toshiba, Lenovo, Fujitsu, Acer, Sony, Gateway

· Intel, AMD

Server HW/SW Upgrades

· Virtualization, consolidation, clustering · Microsoft Windows Server, Novell SUSE, Red hat, Unix, Solaris, IBM AIX, HP–UX

· Improved performance, reliability, manageability, security · IBM, HP, Dell, Sun, Fujitsu, Bull· Multi-core, 64-bit, RISC/Itanium, x86· Web servers, application servers, DBMS servers, data warehouse servers, infrastructure servers, high performance

Infrastructure Mgmt / Networking

· Asset inventory/management, OS management, configuration management, change management, systems management, software distribution, application packaging

· Microsoft System Center Configuration Manager, MDOP, Active Directory

· Directory services, group policy objects · IBM Tivoli, BMC Software, CA Unicenter, HP, LANDesk, Novell ZENworks, Symantec Altiris, Cisco Systems

· IPV6, LAN, WAN· VOIP – voice over Internet protocol· Digital storage of business data and documents · EMC, HP, IBM, Sun, Hitachi, EDS, Network Appliance· Archival, records management, tape backup, SAN, NAS, disk arrays, iSCSI, fibre channel

· IBM DB2, Microsoft Exchange, Microsoft SQL Server, Oracle, SAP

· Capacity management, performance analysis, storage provisioning, quota management, event management· Security planning, assessment, incident/breach management · McAfee, Symantec, CA, Trend Micro· Identity and access management, encryption, smartcards, authentication, authorization, patch management

· Cisco Systems, NetIQ· Firewalls, antivirus, anti-malware, anti-spyware, network access control, information and data rights management

· VeriSign, IBM, Unisys

Application Development / Architecture

· Improved software quality, integration, usability · Microsoft .NET, Visual Studio· Custom developed software · IBM WebSphere, Rational· Rapid application development · Sun Microsystems Java· Middleware, application server · Java/J2EE/EE, Ruby on Rails, PHP, Python, Perl· Web services, Service-Oriented Architecture, SaaS (software as a service)

· Oracle Fusion Middleware, Application Server· Enterprise architecture (EA) · BEA Systems WebLogic, JBoss (Red Hat), SAP NetWeaver

Compliance, Governance, Risk

· Methods and software to ease compliance with regulations such as HIPPA, Sarbanes-Oxley, Basel II

· BearingPoint, Deloitte, Ernst & Young, IBM, KPMG, PricewaterhouseCoopers· ITIL, COBIT, Six Sigma, CMM, ISO 17799/9000, PMBOK

· Maturity models (Microsoft’s Infrastructure Optimization Maturity Model)

· Portfolio management, IT-business alignment, balanced scorecard, service level management, risk management · Business continuity – disaster planning / recovery · IT governance, policies, internal audit, monitoring· Outsource IT and business processes, applications, infrastructure, or initiatives to reduce costs and improve results

· Accenture, Capgemini, Cognizant, CSC, EDS, IBM, HP, Siemens, CompuCom, Infosys, Keane, Perot Systems, Satyam, TCS, Wipro, Getronics, Unisys

· Infrastructure management: helpdesk, on-site support, desktop management, data center services

· AT&T, IBM, MCI-Digex, Qwest, Rackspace, Verio

· BPO – business process outsourcing· Offshore services· Application outsourcing, web hosting

Wireless/ Mobility

· Wireless e-mail, mobile access to line-of-business applications, unified communications,

· Microsoft Windows Mobile, Palm, Symbian· VPN, mobile remote access, telecommuting · RIM BlackBerry, Nokia, Apple iPhone, Sharp, Motorola/Symbol,

Fujitsu,

· Handheld devices, smartphone, PDAs · 3Com, Cisco Systems, Nortel Networks, Siemens· Wireless LAN/WAN, 802.11n, WiMAX, CDMA, UMTS, GPRS, EDGE

· Equant, AT&T, MCI, BT, Sprint, Verizon

Sample data should not be used for making investment decisions. Sample data is not meant to represent average/typical project results, is not based on research, and is not provided at the lowest level of detail. It should only be used as a starting point for assessing the business value of your project. Initiative costs and benefits will differ substantially from one organization to another.

document.xls Initiatives 6 of 30

Description of Sample Initiatives (for reference only)Business Technology Initiatives

Initiative Type Key Features, Capabilities, Benefits Sample Vendors And Products

CRM

Office Productivity Software

· Word processing, spreadsheets, personal databases, presentation graphics software, personal information

· Microsoft Office 2007· OpenOffice.org· Sun StarOffice· Google Apps

Messaging/ Collaboration

· E-mail, calendaring/scheduling, task management, unified communications

· Microsoft SharePoint, Exchange, Live Meeting· Real-time collaboration, presence, instant messaging, web conferencing

· IBM Domino / Lotus Notes· Social computing, blogs, wikis · Oracle Collaboration Suite· Team workspaces, project management, discussion threads, document workflow

· Sun Java Enterprise System· Novell GroupWise· WebEx Communications

Content Management

· Document management, web content management, document imaging, records management, digital asset

· Microsoft SharePoint· Knowledge management, information management · EMC Documentum, FileNet, Hummingbird, IBM Content

Management, Interwoven, Mobius Management Systems, Open Text, Oracle Content Services, Stellent, and Vignette

· Intranets, Extranets, Portals

E-commerce / Internet

· Web sites for external business information dissemination, marketing, sales transactions, etc.

· Microsoft IIS, Commerce Server· Web storefronts, shopping cart management, taxation, personalization, transaction management, settlement and

· ATG, Escalate Retail, Comergent, Oracle, SAP· B2B, B2C, AJAX, mashups

Business Process Mgmt / Integration

· Process modeling, monitoring and management · Microsoft BizTalk Server, SharePoint Server· Workflow, business rules, automation, electronic forms · Captaris Workflow, EMC Documentum, Global 360, IBM FileNet,

Open Text

· BAM (business activity monitoring) · Pegasystems, Oracle, SAP, TIBCO, webMethods, BEA Systems, SeeBeyond, GXS, Sterling Commerce

· EAI (enterprise application integration)

Business Intelligence / Data Mgmt

· Database management systems (DBMS), data warehousing, data marts, online transaction processing (OLTP)

· Microsoft SQL Server, PerformancePoint Server· Master data management, data quality, metadata · Teradata, IBM, Oracle, MySQL, Ingres, PostgreSQL, Sybase

· Financial planning, corporate performance management, reporting, analytics, dashboards, scorecards, enterprise search, ETL, OLAP, query

· Oracle Hyperion, Business Objects, Informatica, Cognos, Information Builders, MicroStrategy, SAS

Business Applications (Vertical, LOB)

· Wide variety of specialized software that helps organizations streamline business processes and improve results

· Various products/vendors by business function and industry

· Customer Relationship Management · Oracle Siebel, PeopleSoft· Sales force automation, marketing campaign management, customer information management, order entry, customer

· Onyx, Sage, mySAP CRM, Salesforce.com, Amdocs· Hosted CRM · Microsoft Dynamics CRM

ERP / Supply Chain

· Enterprise resource planning: supply chain management, operations/production management, inventory management,

· SAP· Oracle Fusion (E-Business Suite, J.D. Edwards, PeopleSoft)

· Lawson, Intentia, Infor, Sage, Ariba, · Microsoft Dynamics



document.xls Costs 7 of 30

Implementation Costs

Hardware Cost per Unit

Unit Label Unit Quantity One-Time* 3-Year Total Comments

Client HardwarePCs PCs 2,500 $ 1,000 $ 150 $ 3,625,000

PC Upgrades PCs 2,500 $ 200 $ 30 $ 725,000

Mobile Devices - $ 200 $ 30 $ -

Other - $ 200 $ 30 $ -

Sub Total $ 3,000,000 $ 450,000 $ 4,350,000

Server HardwareServers Servers 1.7 $ 15,000 $ 2,250 $ 36,250

Terabytes 0.5 $ 10,000 $ 1,500 $ 7,250

Network Equipment - $ - $ -

Other - $ - $ -

Sub Total $ 30,000 $ 4,500 $ 43,500

Total $ 3,030,000 $ 454,500 $ 4,393,500

* One-Time costs are typically incurred at the beginning of the project. Annual Recurring costs are on-going costs necessary throughout the life of the project.

Software

The software license is typically a one-time cost. Software maintenance (Software Assurance) is an optional annual recurring cost

3-Year Total Comments

Client SoftwareApplication A 1,500 $ 300 $ 69 $ 760,500

Application B - $ 100 $ 23 $ -

Desktop Operating System 2,500 $ 100 $ 23 $ 422,500

Client Access Licenses (CALs) 1,500 $ 10 $ 2 $ 25,350

Other $ -

Sub Total $ 715,000 $ 164,450 $ 1,208,350

Server SoftwareServer Operating System 1.7 $ 2,000 $ 460 $ 5,633

Database 2 $ 8,000 $ 1,840 $ 22,533

Server Application 2 $ 10,000 $ 2,300 $ 28,167

Utilities - $ - $ -

Other $ -

Sub Total $ 33,333 $ 7,667 $ 56,333

Total $ 748,333 $ 172,117 $ 1,264,683


One-time Implementation Labor/ServicesTime

Time Unit One-Time 3-Year Total Comments

Planning, Evaluation and Project Person-weeks 30.0 $ 2,240 $ 67,204

Engineering Person-weeks 18.0 $ 2,240 $ 40,323

Development Person-weeks 33.6 $ 2,240 $ 75,269

Lab Testing Person-weeks 7.2 $ 2,240 $ 16,129

Pilot Testing Person-weeks 12.0 $ 2,240 $ 26,882

Rollout Person-weeks 36.0 $ 2,240 $ 80,645

Performance Tuning Person-weeks 4.8 $ 2,240 $ 10,753

Documentation Person-weeks 4.8 $ 2,240 $ 10,753

Implementation User Support Person-weeks 4.8 $ 2,240 $ 10,753

Consultants Person-weeks 48.0 $ 6,720 $ 322,581

External Services Person-weeks 9.6 $ 6,720 $ 64,516

Other Person-weeks 12.0 $ 2,240 $ 26,882

Total $ 752,689 $ - 752,689

*1 Person-week is equivalent to 2 employees each dedicating 50% of a week to the task or 1 person dedicating 8 hrs per week over 5 weeks.

Annual Recurring*

Storage (including backups, redundancy, power supplies, etc.)

License Quantity

One-Time (License)

Annual Recurring

(Main-tenance)

Annual Recurring

Cost per Time Unit

This worksheet estimates all costs needed to implement the initiative, including hardware, software, IT labor/services, and user labor costs.


Implementation CostsThis worksheet estimates all costs needed to implement the initiative, including hardware, software, IT labor/services, and user labor costs.

Annual On-Going Labor/ServicesUnit Quantity

Unit* One-Time Cost per Unit 3-Year Total Comments

Maintenance Full Time Equivalents 0.20 $ 116,488 $ 69,893

Support FTEs 0.20 $ 116,488 $ 69,893

Customization FTEs 0.10 $ 116,488 $ 34,946

Development FTEs 0.20 $ 116,488 $ 69,893

Upgrades FTEs 0.04 $ 116,488 $ 13,979

Performance Tuning FTEs 0.04 $ 116,488 $ 13,979

External Services FTEs - $ 174,731 $ -

Bandwidth - $ -

Other - $ -

Total $ - $ 90,860 272,581

*FTE (Full Time Equivalent): 1 full time employee is equivalent to 2 employees each dedicating 50% of their work time to the task

Incremental Help Desk Calls

40%

1.5

25

Additional service desk time (hours) 1250.0

Total $ 53,781

IT Training

3-Year Total Comments

Staff trained with this type of training 11.2 56.0 56.0

Hours of training per staff member 32 16 40

Labor Cost per Hour $ 64 $ 64 $ 64

Training time (labor cost) $ 2,044 $ 1,022 $ 2,555

$ 1,500 $ 300 $ 75

Cost per Employee Trained $ 3,544 $ 1,322 $ 2,630

Total Cost $ 39,689 $ 74,022 $ 147,255 $ 260,966

End-User Labor & TrainingEnd-User Labor

Hours per User Impacted

% of Users Impacted # Of Users One-Time 3-Year Total Comments

Solution planning & testing 2% 100 10 $ 45,265

2% 100 1 $ 4,526

6% 300 5 2 $ 149,374

System configuration 20% 1000 4 0 $ 181,059

4% 200 0 10 $ 271,589

Other 0% 0 0 0 $ -

Other 0% 0 0 0 $ -

Total $ 298,748 $ 117,689 $ 651,814

Annual Recurring

Percentage of users who contact the service desk due to issues/questions related to the solution implementation

Number of contacts per user (who contact the help desk)

Average service desk resolution time per call (in minutes)

Formal (Classroom) Training

Internal Training

Independent Learning (Self-

Study)

Class and Additional Fee Cost per trainee

Annual On-Going

Downtime (Unable to be productive); e.g. during implementation of the solution

Resolution of issues related to the new solution

Data entry (not previously required)


Implementation CostsThis worksheet estimates all costs needed to implement the initiative, including hardware, software, IT labor/services, and user labor costs.

End-User Training

Total Comments

% of Employees trained 10% 20% 40%

Employees trained 500 1,000 2,000

Hours of training per employee 4 3 8

Labor Cost per Hour $ 45 $ 45 $ 45

Training time (labor cost) $ 181 $ 136 $ 362

$ 100 $ 60 $ 3

Cost per Employee Trained $ 281 $ 196 $ 365

Total Cost $ 140,530 $ 195,795 $ 729,238 $ 1,065,562

Summary Organization Total Per PC

One Time 3-Year Total One Time Annual Recurring 3-Year TotalHardware

Client Hardware $ 3,000,000 $ 450,000 $ 4,350,000 $ 600 $ 90 $ 870

Server Hardware $ 30,000 $ 4,500 $ 43,500 $ 6 $ 1 $ 9

Sub-Total $ 3,030,000 $ 454,500 $ 4,393,500 $ 606 $ 91 $ 879 Software

Client Software $ 715,000 $ 164,450 $ 1,208,350 $ 143 $ 33 $ 242

Server Software $ 33,333 $ 7,667 $ 56,333 $ 7 $ 2 $ 11

Sub-Total $ 748,333 $ 172,117 $ 1,264,683 $ 150 $ 34 $ 253 IT Labor, Services, & Training

One-time Implementation Labor/Servic $ 752,689 $ - $ 752,689 $ 151 $ - $ 151 Annual On-Going Labor/Services $ - $ 90,860 $ 272,581 $ - $ 18 $ 55 Incremental Help Desk Calls $ 53,781 $ 53,781 $ 11 $ - $ 11

IT Training $ 260,966 $ 260,966 $ 52 $ - $ 52

Sub-Total $ 1,067,435 $ 90,860 $ 1,340,016 $ 213 $ 18 $ 268 End-User Labor & Training

End-User Labor $ 298,748 $ 117,689 $ 651,814 $ 60 $ 24 $ 130

End-User Training $ 1,065,562 $ 1,065,562 $ 213 $ - $ 213

Sub-Total $ 1,364,310 $ 117,689 $ 1,717,376 $ 273 $ 24 $ 343

Total $ 6,210,079 $ 835,166 $ 8,715,576 $ 1,242 $ 167 $ 1,743

External Classroom Training

Internal Training

Independent Learning (Self-

Study)

Class and Additional Fee Cost per trainee

Annual Recurring


Implementation CostsThis worksheet estimates all costs needed to implement the initiative, including hardware, software, IT labor/services, and user labor costs. One Time 3-Year Total One Time Annual Recurring 3-Year Total

Hardware $ 3,030,000 $ 454,500 $ 4,393,500 $ 606 $ 91 $ 879 Software $ 748,333 $ 172,117 $ 1,264,683 $ 150 $ 34 $ 253 IT Labor, Services, & Training $ 1,067,435 $ 90,860 $ 1,340,016 $ 213 $ 18 $ 268

End-User Labor & Training $ 1,364,310 $ 117,689 $ 1,717,376 $ 273 $ 24 $ 343

Total $ 6,210,079 $ 835,166 $ 8,715,576 $ 1,242 $ 167 $ 1,743


Annual Recurring

3-Year Total$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

$879

$253

$268

$343

Total Implementation Costs (Per PC)

End-User Labor & Train-ing


Software

Hardware

Cost

s ($

per P

C)

3-Year Total$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

$10,000,000

$4,393,500

$1,264,683

$1,340,016

$1,717,376

Total Implementation Costs

End-User Labor & Training


Software

Hardware

Tota

l Cos

ts

3-Year Total$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

$870

$9 $242 $11

$151 $55 $11 $52

$130

$213


End-User Training

End-User Labor

IT Training


Annual On-Going Labor/Services

One-time Implementation Labor/Services

Server Software

Client Software

Server Hardware

Client Hardware

Tota

l Cos

ts ($

per

PC)

3-Year Total$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

$10,000,000

$4,350,000

$43,500 $1,208,350

$56,333 $752,689 $272,581 $53,781 $260,966 $651,814

$1,065,562

Total Implementation Costs

End-User Training

End-User Labor

IT Training



One-time Implementa-tion Labor/Services

Server Software

Client Software

Server Hardware

Client Hardware

Tota

l Cos

ts

document.xls IT Labor 11 of 30

IT Labor TCO and TCO Savings

IT Labor TCO by General FunctionTotal IT Employees (IT Staff) FTEs 157.8 IT Employees as % of Total PC Users 3.2%Ratio of PC Users to IT Staff 31.7 Source of User to IT staff ratios is based on analysis of U.S. Department of Labor, Bureau of Labor Statistics data and is industry-dependent

FTEs* Comments

PC Management Services 17% 27 $116,488 $ 625 $ 3,124,482

Help Desk (Tech Support) 16% 25 $ 78,477 $ 396 $ 1,981,118

Server & Network Mgmt Services 21% 33 $116,488 $ 772 $ 3,859,654

Application Development 30% 47 $120,844 $ 1,144 $ 5,719,992

Administration & Other 16% 25 $110,803 $ 559 $ 2,797,190

Total IT FTEs 100% 158 $ 3,496 $ 17,482,436 * include management, except senior management; which is included in "Administration"

** Base compensation plus bonuses X burden rate. Defaults are from "IT Staff Labor Rates" on the Profile worksheet.

Detailed IT Labor TCO and Savings

Description FTE's Savings Comments

PC Management Services

PC HW / SW Evaluation 5% 1.4 18.0% $ 33 $ 27 $ 5.92

PC Image Management Design, test, certify, and update images 7% 1.9 36.0% $ 44 $ 28 $ 15.75

User Admin & Provisioning User adds, moves and changes. 9% 2.4 45.0% $ 56 $ 31 $ 25.31

Application Management 16% 4.2 36.0% $ 99 $ 63 $ 35.52

Software Deployment 11% 2.8 63.0% $ 66 $ 24 $ 41.44

Security Assessm't & Planning 9% 2.4 18.0% $ 56 $ 46 $ 10.12

Security Patch Management 4% 1.1 27.0% $ 25 $ 18 $ 6.75

Security Incident Remediation 2% 0.5 63.0% $ 12 $ 5 $ 7.87

Data Mgmt, Backup & Restore 5% 1.3 36.0% $ 31 $ 20 $ 11.25

Tools/GPO Management 13% 3.5 36.0% $ 82 $ 53 $ 29.60

3rd Level Support 19% 5.2 36.0% $ 120 $ 77 $ 43.33

Total ($ per PC) 27 $ 232.87 $ 625 $ 392 $ 232.87

Total (% of Total TCO) 100% 37.3%

% of Total*

Average Burdened

Cost**As-Is

TCO / PCTotal IT Labor TCO /

Year

PC/User administration, security, sw/hw deployment, data backup

Service Desk / Technical Support. Call center (remote), and deskside (on-site) support of user computing

Management and administration of servers, data storage, and the network

Application development, testing, troubleshooting, and support.

Finance, purchasing, training, planning, administration, senior management overhead, other

% of Total

% Re-duction

As-Is TCO To-Be TCO

PC hardware and software planning & evaluation

Configuration, packaging, compatibility testing, inventory, piloting

Software deployment, changes, and removal

Security policy setting, assessment and planning.

Management and distribution of security patches

Handling of security breaches, unauthorized access, theft, etc.

PC-based information and data management (file shares) & backup

Directory services, group policy objects, sw distribution, & other tools

Advanced diagnostics/troubleshooting - escalated from help desk

PC HW / SW Evaluation

PC Image Management

User Admin & Provisioning

Application Management

Software Deployment

Security Assessm't & Planning

Security Patch Management

Security Incident Remediation

Data Mgmt, Backup & Restore

Tools/GPO Management

3rd Level Support

$0 $20 $40 $60 $80 $100 $120 $140

PC Management TCOTo-Be TCOAs-Is TCO TCO ($/PC)

This worksheet estimates IT Labor TCO by estimating/allocating labor effort across common IT staff activities (as a % of total by category). The number of FTEs (full-time equivalents) the calculated. Then the likely % reduction in effort (for existing activities only) enabled by the solution is estimated. All increases in labor (required to implement/support the new solution) should be included in the "Costs" worksheet. As-is (current) and To-be (after the solution is fully implemented) TCO is calculated on displayed in bar charts to the right. The benefit (summarized at the bottom) is any annual on-going TCO savings enabled by the initiative.


IT Labor TCO and TCO SavingsThis worksheet estimates IT Labor TCO by estimating/allocating labor effort across common IT staff activities (as a % of total by category). The number of FTEs (full-time equivalents) the calculated. Then the likely % reduction in effort (for existing activities only) enabled by the solution is estimated. All increases in labor (required to implement/support the new solution) should be included in the "Costs" worksheet. As-is (current) and To-be (after the solution is fully implemented) TCO is calculated on displayed in bar charts to the right. The benefit (summarized at the bottom) is any annual on-going TCO savings enabled by the initiative.Help Desk (Tech Support)

Proprietary Applications Custom developed application support 30% 7.5 40.0% $ 118 $ 71 $ 47.04

Standard Desktop Software Commercial off-the-shelf applications 15% 3.8 40.0% $ 59 $ 35 $ 23.66

Operating Systems Operating system-related issues 15% 3.7 40.0% $ 58 $ 35 $ 23.14

Hardware (except printers) Hardware troubleshooting/repair 12% 3.1 30.0% $ 49 $ 34 $ 14.68

Data Comm./Network Networking 10% 2.5 30.0% $ 39 $ 27 $ 11.57

Password Resets Reset user passwords 5% 1.2 70.0% $ 19 $ 6 $ 13.65

Databases Database troubleshooting 5% 1.1 20.0% $ 18 $ 14 $ 3.60

Service Requests Forward requests for other services 4% 1.1 20.0% $ 17 $ 13 $ 3.31

Voice Communications Telecommunications 3% 0.7 20.0% $ 10 $ 8 $ 2.07

Printers Printer troubleshooting/repair 2% 0.6 30.0% $ 10 $ 7 $ 2.93

Others 0% - 30.0% $ - $ - $ -

Total ($ per PC) 25 $ 146 $ 396 $ 251 $ 145.64


Server & Network Mgmt Services

Network management 12% 4.0 15.0% $ 93 $ 79 $ 13.89

Hardware management 11% 3.6 15.0% $ 85 $ 72 $ 12.74

Operating system support 16% 5.3 30.0% $ 124 $ 86 $ 37.05

Server application mgmt 24% 8.0 30.0% $ 185 $ 130 $ 55.58

Security 14% 4.7 25.0% $ 110 $ 83 $ 27.57

Storage management Storage capacity planning and management 11% 3.6 15.0% $ 85 $ 72 $ 12.74

Database Mgmt & Admin 12% 4.0 15.0% $ 93 $ 79 $ 13.89

Other 0% - 15.0% $ - $ - $ -

Total ($ per PC) 33 $ 173 $ 774 $ 601 $ 173.46


Application DevelopmentDesign Needs assessment, conceptual design 6% 2.8 9.0% $ 69 $ 62 $ 6.18

Development Detailed engineering, development 42% 19.9 12.0% $ 480 $ 423 $ 57.66

Testing Test and pilot 22% 10.4 9.0% $ 252 $ 229 $ 22.65

Support 30% 14.2 12.0% $ 343 $ 302 $ 41.18

Other 0% - 9.0% $ - $ - $ -

Total ($ per PC) 47 $ 128 $ 1,144 $ 1,016 $ 127.67


Administration & Other

Planning 19% 4.8 7.0% $ 106 $ 99 $ 7.44

Purchasing 14% 3.5 21.0% $ 78 $ 62 $ 16.45

Finance Budgeting and chargeback tasks 18% 4.5 28.0% $ 101 $ 73 $ 28.20

Training IT and end-user training 16% 4.0 7.0% $ 90 $ 83 $ 6.27

Senior management Senior IT management overhead 28% 7.1 7.0% $ 157 $ 146 $ 10.96

Other Administration and other 5% 1.3 7.0% $ 28 $ 26 $ 1.96

Total ($ per PC) 25 $ 71 $ 559 $ 488 $ 71.27


Manage network communication infrastructure

Deployment, configuration, administration, support



Planning, assessment, patching, issue remediation

Index management, replication, log administration, data recovery, optimization

Advanced support and troubleshooting (escalated from help desk)

Needs assessment, standards development, evaluation, business case development, project planning

Purchasing, procurement, and vendor management

Proprietary ApplicationsStandard Desktop Software

Operating SystemsHardware (except printers)

Data Comm./NetworkPassword Resets

DatabasesService Requests

Voice CommunicationsPrintersOthers

$0 $20 $40 $60 $80 $100 $120 $140

Help Desk TCOTo-Be TCOAs-Is TCO TCO ($/PC)

Network management

Hardware management

Operating system support

Server application mgmt

Security

Storage management

Database Mgmt & Admin

Other

$0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200

Server & Network Mgmt TCOTo-Be TCOAs-Is TCO TCO ($/PC)

Design

Development

Testing

Support

Other

$0 $100 $200 $300 $400 $500 $600

Application Development TCOTo-Be TCOAs-Is TCO TCO ($/PC)

Planning

Purchasing

Finance

Training

Senior management

Other

$0 $20 $40 $60 $80 $100 $120 $140 $160 $180

Administration & Other TCOTo-Be TCOAs-Is TCO TCO ($/PC)


IT Labor TCO and TCO SavingsThis worksheet estimates IT Labor TCO by estimating/allocating labor effort across common IT staff activities (as a % of total by category). The number of FTEs (full-time equivalents) the calculated. Then the likely % reduction in effort (for existing activities only) enabled by the solution is estimated. All increases in labor (required to implement/support the new solution) should be included in the "Costs" worksheet. As-is (current) and To-be (after the solution is fully implemented) TCO is calculated on displayed in bar charts to the right. The benefit (summarized at the bottom) is any annual on-going TCO savings enabled by the initiative.

SummaryIT Labor TCO / PC / Year Full-Time Equivalents

Savings As-Is FTEs Savings

PC Management Services $ 625 $ 392 $ 232.87 37% 26.8 19.5 7.3

Help Desk (Tech Support) $ 396 $ 251 $ 145.64 37% 25.2 18.5 6.8

Server & Network Mgmt Services $ 774 $ 601 $ 173.46 22% 33.2 27.1 6.1

Application Development $1,144 $ 1,016 $ 127.67 11% 47.3 42.6 4.8

Administration & Other $ 559 $ 488 $ 71.27 13% 25.2 22.4 2.9

Total $3,499 $ 2,748 $ 751 21% 157.9 130.1 27.8

Key SoftGrid Benefits


As-Is TCO

To-Be TCO

Savings %

To-Be FTEs

As-Is TCO To-Be TCO $-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$625 $392

$396

$251

$774

$601

$1,144

$1,016

$559

$488

IT Labor TCO Comparison


Application Devel-opment


Help Desk (Tech Support)


TC

O p

er

PC

pe

r Y

ea

r




Application De-velopment


$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

0

5

10

15

20

25

30

35

40

45

50

$625 $396 $774 $1,144 $559 $392 $251 $601 $1,016 $488

26.8 25.2

33.2

47.3

25.2

19.5 18.5

27.1

42.6

22.4

IT Labor Comparison

As-Is TCO To-Be TCO As-Is FTEs To-Be FTEs

TC

O p

er

PC

pe

r Y

ea

r

FT

Es

(F

ull

Tim

e E

qu

iva

len

ts)

document.xls Direct Savings 14 of 30

Direct Cost Savings

Direct Cost Savings - ITReduce/Avoid Software Costs - PCs

Capabilities/features included in the proposed solution that can reduce the need for (planned) or current costs of 3rd party software.

% of PCs 3-Year Total Comments

Application A 25% $ 100 $ 20 $ 200,000

Application B 15% $ 200 $ 40 $ 240,000

Imaging tools 50% $ 10 $ - $ 25,000

Encryption tools 30% $ 20 $ 90,000

OS virtualization 20% $ 20 $ 60,000

Security Utilities 100% $ 20 $ 300,000 Total $ 300,000 $ 205,000 $ 915,000

Reduce/Avoid Software Costs - ServersCapabilities/features included in the proposed solution that can reduce the need for current or expected costs of 3rd party software.

100

Quantity 3-Year Total Comments

Business Applications 6 $ 6,000 $ 900 $ 52,200

Back-Up / Recovery 6 $ 200 $ 30 $ 1,740

OS virtualization 4 $ 200 $ 30 $ 1,160

Security Utilities 4 $ 200 $ 30 $ 1,160

Other 2 $ 500 $ 75 $ 1,450 Total $ 39,800 $ 5,970 $ 57,710

Reduce/Avoid Hardware Costs


4 $ 6,000 $ 900 $ 34,800

Virtualization 2 $ 6,000 $ 900 $ 17,400

Peripherals $ - $ - $ -

Replacement $ - $ - $ -

Other $ - $ - $ - Total $ 36,000 $ 5,400 $ 52,200

Reduce/Avoid IT Service Costs


Consulting Services (Hours) 80 $ - $ 150 $ 36,000

Outsourcing (Hours) 80 $ - $ 150 $ 36,000

Other - $ - $ - $ -

Other - $ - $ - $ -

Other - $ - $ - $ - Total $ - $ 24,000 $ 72,000

One-Time Costs Avoided

Annual Costs Avoided

Approximate Total Number of Existing Servers





Server Consolidation - avoid purchasing new servers



This workbook estimates various direct IT and business cost savings enabled by the solution.


Direct Cost SavingsReduce Power/Electricity Usage Costs

PCs Servers Ann'l Total 3-Year Total Comments

Average Watts per PC/Server 140 800

60 10

Total 200 810 kW-hours per day 3.36 19.20

Electricity cost per kW-hour $ 0.09 $ 0.09 Electricity cost per PC/Server per year $ 110 $ 631

Number of PCs/Servers 5,000 100

50% 100%

14 24

100% 100%

Total Benefit per PC/Server $ 32 $ 631 Total $ 160,965 $ 63,072 $ 224,037 $ 672,111

Other IT Cost Avoidance/Reductions


Reduce Bandwidth Costs 10 $ - $ 150 $ 4,500

Reduce Heating, Cooling Costs 2 $ - $ 1,200 $ 7,200

Reduce Other Facilities Costs 10 $ - $ - $ -

Other 10 $ - $ - $ - Total $ - $ 3,900 $ 11,700

Direct Cost Savings - Business

Reduce/Avoid Travel Expenses Comments

445

5

3%

Trips avoided 67

Cost of average trip $ 1,100 Total Annual Benefit $ 73,355 3-Year Total $ 220,066

Reduce Business Services


Consulting Services (Hours) - $ - $ 150 $ -

Outsourcing - $ - $ 150 $ -

Other - $ - $ - $ -

Other - $ - $ - $ - Total $ - $ - $ -

Reduce Other Business Expenses


Supply costs - $ - $ 70 $ -

Raw Material Costs - $ - $ 90 $ -

Inventory carrying costs - $ - $ 30 $ -

Operations - $ - $ 60 $ -

Other - $ - $ 60 $ -

Other - $ - $ - $ -

Other - $ - $ - $ -

Other - $ - $ - $ -

Average Watts per monitor (CRT/LCD mix)

% PCs/Servers likely to be impacted by power saving measures

Average time per day (hours) that power will be reduced for impacted PCs/Servers

% reduction in power usage during this time



# of employees impacted (travel regularly and are likely to benefit from the proposed solution)

Average number of trips per year currently per impacted employee

% of trips that could be avoided due to the proposed solution






Direct Cost SavingsTotal $ - $ - $ -

Summary

Organization Total Per PC

IT Savings One Time 3-Year Total One Time Annual Recurring 3-Year TotalSoftware - Clients $ 300,000 $ 205,000 $ 915,000 $ 60 $ 41 $ 183 Software - Servers $ 39,800 $ 5,970 $ 57,710 $ 8 $ 1 $ 12 Hardware $ 36,000 $ 5,400 $ 52,200 $ 7 $ 1 $ 10 IT Services $ - $ 24,000 $ 72,000 $ - $ 5 $ 14 Power/Electricity Usage $ 224,037 $ 672,111 $ - $ 45 $ 134 Other IT Costs $ - $ 3,900 $ 11,700 $ - $ 1 $ 2 Total $ 375,800 $ 468,307 $ 1,780,721 $ 75 $ 94 $ 356

Business SavingsTravel Expenses $ 73,355 $ 220,066 $ - $ 15 $ 44 Business Services $ - $ - $ - $ - $ - $ - Other Business Expenses $ - $ - $ - $ - $ - $ - Total $ - $ 73,355 $ 220,066 $ - $ 15 $ 44

Total $ 375,800 $ 541,662 $ 2,000,787 $ 75 $ 108 $ 400


Annual Recurring

3-Year Total $-

$50

$100

$150

$200

$250

$300

$350

$400

$450

$183

$12 $10 $14

$134

$2 $44 $- $-

Direct Cost Savings

Other Business Expenses

Business Services

Travel Expenses

Other IT Costs

Power/Electricity Usage

IT Services

Hardware

Software - Servers

Software - Clients

Bene

fit ($

per

PC)

document.xls Productivity 17 of 30

User Productivity Benefits Assessment

On This Worksheet:Allocation of Time Across Business Activity CategoriesAllocation of Time Across Detailed Activities and Efficiency ImprovementsSummary of Productivity Improvements (Time Saved)Business Value of Time Saved

Allocation of Time Across Business Activity Categories

Time Allocation Hrs / Wk

Info Wrkr Comments

Activity Category TotalsIndividual Computing 32% 30% 11.2 10.5

Collaborative Computing 21% 3% 7.4 1.1

PC Systems Management 4% 2% 1.4 0.7

Non-Computing-Related Activities 43% 65% 15.1 22.8

Total (Must sum to 100%) 100% 100% 35.1 35.1

Activity Sub-CategoriesIndividual Computing

Document Creation 25% 28% 2.8 2.9

Data & Information Access/Analysis 10% 5% 1.1 0.5

Email, Calendar, Contact, & Task Mgmt 24% 8% 2.7 0.8

LOB Application-Related Activities 31% 52% 3.5 5.5

Other 10% 7% 1.1 0.7

Total (Must sum to 100%) 100% 100% 11.2 10.5Collaborative Computing

Document Collaboration 60% 47% 4.4 0.5

Workflow (routing) 15% 28% 1.1 0.3

Coordination / Project Mgmt 16% 15% 1.2 0.2

Other 9% 10% 0.7 0.1

Total (Must sum to 100%) 100% 100% 7.4 1.1PC Systems Management

Support, Self-Help, & Learning 35% 40% 0.5 0.3

Performance 25% 25% 0.4 0.2

Mobility & Remote Connectivity 17% 6% 0.2 0.0

Security & Privacy 13% 15% 0.2 0.1

System UI Navigation 6% 8% 0.1 0.1

Availability & Reliability 4% 6% 0.1 0.0

Total (Must sum to 100%) 100% 100% 1.4 0.7

Non-Computing-Related Activities 15.1 22.8

Total 35.1 35.1

Task Wrkr

Info Wrkr

Task Wrkr

Info Wrkr Task Wrkr0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

11.2 10.5

7.4

1.1

1.4

0.7

15.1

22.8

Time by Business Activity - Summary

Non-Computing-Re-lated Activities

PC Systems Management

Collaborative Computing

Individual Comput-ing

Hour

s per

Wee

k

This worksheet estimates the business user productivity benefits enabled by the initiative. These benefits are calculated based on time savings of conducting common business activities. Although these benefits are "Indirect" (not part of the IT budget), they do typically improve profitability. The method below tends to be more conservative (yet more comprehensive) than other methods of estimating business user impacts. This productivity analysis only estimates efficiency improvements, not effectiveness (agility, decision-making) improvements. A "conversion factor" is applied because not all saved time may be used to conduct other value-added activities.


2.0

4.0

6.0

8.0

10.0

12.0

2.8 2.9

1.1 0.5

2.7

0.8

3.5

5.5

1.10.7

Time by Business Activity - Individual Computing

Other

LOB Application-Re-lated Activities

Email, Calendar, Contact, & Task Mgmt

Data & Information Access/Analysis

Document Creation

Hour

s per

Wee

k

Review/modify how much time (as a portion % of total work time) users typically spend conducting the common business activities below. Allocate time for the activity categories then the activity sub-categories. This is done for both information workers and structured task workers. The resulting hours per week is calculated.


User Productivity Benefits Assessment

Allocation of Time Across Detailed Activities and Efficiency Improvements

Individual Computing Time % Hours / Week Time Saved

Activity Info Wrkr Comments

Document CreationDocument general layout/set-up 5% 5% 0.14 0.15 1% 0.00 0.00

Formatting documents 20% 15% 0.56 0.44 3% 0.02 0.02

Searching for functionality "how do I…" 10% 5% 0.28 0.15 3% 0.01 0.00

Creating graphics 10% 10% 0.28 0.29 3% 0.01 0.01

Typing, thinking 55% 65% 1.54 1.92 0% 0.00 0.01

Total (Time % must sum to 100%) 100% 100% 2.81 2.95 1% 0.04 0.04

Data & Information Access/AnalysisInternet browsing/viewing 40% 45% 0.45 0.24 3% 0.01 0.01

Searching for documents & folders 20% 15% 0.22 0.08 9% 0.02 0.01

Collecting/combining information 20% 20% 0.22 0.11 8% 0.02 0.01

Finding/accessing/combining data 10% 10% 0.11 0.05 9% 0.01 0.00

Data analysis & reporting 10% 10% 0.11 0.05 9% 0.01 0.00


Email, Calendar, Contact, & Task MgmtProcessing email 75% 75% 2.02 0.63 0% 0.00 0.00

Managing calendar, contacts, and tasks 15% 15% 0.40 0.13 0% 0.00 0.00

Note-taking, management 10% 10% 0.27 0.08 0% 0.00 0.00


LOB Application-Related Activities

20% 40% 0.70 2.19 10% 0.07 0.22

80% 60% 2.78 3.28 5% 0.14 0.16


OtherDevelopment time (macros, VBA, Access) 4% 4% 0.04 0.03 0% 0.00 0.00

Reading, thinking, etc. 96% 96% 1.08 0.71 0% 0.00 0.00

Other 0% 0% 0.00 0.00 0% 0.00 0.00


Total 11.22 10.52 2% 0.18 0.29

Efficiency Improve-

mentTask Wrkr

Info Wrkr

Task Wrkr

Info Wrkr

Task Wrkr

Data entry into LOB (line-of-business) applications

Using LOB applications (or the predecessor activity)


1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

4.4

0.5

1.1

0.3

1.2

0.2

0.7

0.1

Time by Business Activity - Collaborative Computing

Other

Coordination / Project Mgmt

Workflow (routing)

Document Collab-oration

Hour

s per

Wee

k


0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

0.50.3

0.4

0.2

0.2

0.0

0.2

0.1

0.1

0.1

0.1

0.0

Time by Business Activity - PC Systems Management

Availability & Reli-ability

System UI Navigation

Security & Privacy

Mobility & Remote Connectivity

Performance

Support, Self-Help, & Learning

Hour

s per

Wee

k

Allocate user time across each of the detailed activities below. Hours per week is calculated/displayed. Then estimate the percent improvement in activity efficiency enabled by the initiative. Hours saved per week is calculated/displayed. For example, if a user spends 1 hour per week conducting an activity, a 10% efficiency improvement should free up 6 minutes per week for other value-adding work. Note that a 10% efficiency improvement does not imply that the user will spend 10% less time conducting that activity (they may do more of that activity if they are more efficient at it); it does imply that the user is expected to complete that activity 10% more efficiently.


User Productivity Benefits AssessmentCollaborative Computing Time % Hours / Week Time Saved


Document Collaboration

60% 60% 2.65 0.30 0% 0.00 0.00

Meetings (document-collaboration-focused) 35% 35% 1.55 0.17 0% 0.00 0.00

Document management 5% 5% 0.22 0.02 0% 0.00 0.00


Workflow (routing)

50% 50% 0.55 0.15 0% 0.00 0.00

Workflow activities - electronic 50% 50% 0.55 0.15 0% 0.00 0.00



70% 70% 0.83 0.11 0% 0.00 0.00

Coordination of other business activities 30% 30% 0.35 0.05 0% 0.00 0.00


Other

70% 90% 0.46 0.09 0% 0.00 0.00

30% 10% 0.20 0.01 0% 0.00 0.00

Other 0% 0% 0.00 0.00 0% 0.00 0.00


Total 7.37 1.05 0% 0.00 0.00

PC Systems Management Time % Mins / Week


Support, Self-Help, & LearningSupport time (helpdesk) 20% 20% 5.9 3.4 15% 0.9 0.5

Unproductive resolution lag time (downtime) 15% 15% 4.4 2.5 15% 0.7 0.4

PC upgrade; OS re-install 5% 5% 1.5 0.8 23% 0.3 0.2

Install SW, patches, peripherals, drivers 20% 20% 5.9 3.4 25% 1.5 0.8

40% 40% 11.8 6.7 6% 0.7 0.4


PerformanceProcessor/HDD response time 30% 30% 6.3 3.2 50% 3.2 1.6

Network/Server response time 30% 30% 6.3 3.2 50% 3.2 1.6

PC start-up, shut-down, resume 40% 40% 8.4 4.2 20% 1.7 0.8



Remote & wireless connectivity, Network issues 20% 20% 2.9 0.5 10% 0.3 0.1

Lost productivity due to dead laptop battery 15% 15% 2.1 0.4 12% 0.3 0.0

Laptop shut-down, start-up, wake/resume 45% 45% 6.4 1.1 12% 0.8 0.1

Time managing/accessing files for off-line use 20% 20% 2.9 0.5 9% 0.3 0.0


Security & PrivacySecurity pre-cautions 90% 90% 9.8 5.7 18% 1.7 1.0

Virus, adware and other security issues 5% 5% 0.5 0.3 24% 0.1 0.1

Intrusion, unauthorized use, data loss 5% 5% 0.5 0.3 24% 0.1 0.1


System UI NavigationUser Interface navigation 75% 75% 3.8 2.5 18% 0.7 0.4

Change system settings, preferences 25% 25% 1.3 0.8 18% 0.2 0.1


Availability & ReliabilityRecovering from crashes/conflicts 70% 70% 2.4 1.8 35% 0.8 0.6

Rework due to lost work 30% 30% 1.0 0.8 35% 0.4 0.3


Total (Hours per Week) 1.40 0.70 21% 0.29 0.15

Non-Computing-Related Activities 15.08 22.80 0% 0.00 0.00

Total 35.1 35.1 1% 0.5 0.4

Efficiency Improve-

mentTask Wrkr

Info Wrkr

Task Wrkr

Info Wrkr

Task Wrkr

Document collaboration (collaborative authoring, sharing, reviewing, debating, mark-up, change consolidation)

Workflow activities – paper-based (review, approval, routing, signature collection)

Document-creation-intensive project coordination/management (issue tracking, task management, document status)

Reporting - Disseminating and managing documentation/reports

Social networking (connecting people, sharing re-usable knowledge)

Efficiency Improve-

ment

Time Saved (Mins)

Task Wrkr

Info Wrkr

Task Wrkr

Info Wrkr

Task Wrkr

Self-help - system "how-to" questions; Peer support


User Productivity Benefits AssessmentSummary of Productivity Improvements (Time Saved)

Info Workers Task Workers Total (Weighted Average)

As-Is To-Be Saved As-Is To-Be Saved As-Is To-Be SavedIndividual Computing

Document Creation 2.8 2.8 0.04 1% 2.9 2.9 0.04 1% 2.9 2.8 0.0 1%Data & Information Access/Analysis 1.1 1.1 0.07 6% 0.5 0.5 0.03 6% 0.8 0.7 0.0 6%Email, Calendar, Contact, & Task Mgmt 2.7 2.7 0.00 0% 0.8 0.8 0.00 0% 1.7 1.7 0.0 0%LOB Application-Related Activities 3.5 3.4 0.07 2% 5.5 5.3 0.22 4% 4.6 4.4 0.2 3%Other 1.1 1.1 0.00 0% 0.7 0.7 0.00 0% 0.9 0.9 0.0 0%Total 11.2 11.0 0.18 2% 10.5 10.2 0.29 3% 10.8 10.6 0.24 2%

Collaborative ComputingDocument Collaboration 4.4 4.4 0.00 0% 0.5 0.5 0.00 0% 2.2 2.2 0.0 0%Workflow (routing) 1.1 1.1 0.00 0% 0.3 0.3 0.00 0% 0.7 0.7 0.0 0%Coordination / Project Mgmt 1.2 1.2 0.00 0% 0.2 0.2 0.00 0% 0.6 0.6 0.0 0%Other 0.7 0.7 0.00 0% 0.1 0.1 0.00 0% 0.4 0.4 0.0 0%Total 7.4 7.4 0.00 0% 1.1 1.1 0.00 0% 3.9 3.9 0.00 0%

PC Systems ManagementSupport, Self-Help, & Learning 0.5 0.4 0.07 14% 0.3 0.2 0.04 14% 0.4 0.3 0.1 14%Performance 0.4 0.2 0.13 38% 0.2 0.1 0.07 38% 0.3 0.2 0.1 38%Mobility & Remote Connectivity 0.2 0.2 0.03 11% 0.0 0.0 0.00 11% 0.1 0.1 0.0 11%Security & Privacy 0.2 0.1 0.03 18% 0.1 0.1 0.02 18% 0.1 0.1 0.0 18%System UI Navigation 0.1 0.1 0.01 18% 0.1 0.0 0.01 18% 0.1 0.1 0.0 17%Availability & Reliability 0.1 0.0 0.02 35% 0.0 0.0 0.01 35% 0.0 0.0 0.0 35%Total 1.4 1.1 0.29 21% 0.7 0.5 0.15 22% 1.0 0.8 0.22 21%

Non-Computing-Related Activities 15.1 15.1 0 0% 22.8 22.8 0 0% 19.4 19.4 0.0 0%

Total 35.1 34.6 0.5 1.4% 35.1 34.6 0.4 1.3% 35.1 34.6 0.5 1.3%

SummaryIndividual Computing 11.2 11.0 0.18 2% 10.5 10.2 0.29 3% 10.8 10.6 0.2 2%Collaborative Computing 7.4 7.4 0.00 0% 1.1 1.1 0.00 0% 3.9 3.9 0.0 0%PC Systems Management 1.4 1.1 0.29 21% 0.7 0.5 0.15 22% 1.0 0.8 0.2 21%Non-Computing-Related Activities 15.1 15.1 0.00 0% 22.8 22.8 0.00 0% 19.4 19.4 0.0 0%Total 35.1 34.6 0.5 1.4% 35.1 34.6 0.4 1.3% 35.1 34.6 0.5 1.3%

% Savings

% Savings

% Savings

The table below summarizes time saved by business activity category.

Individual Computing



Non-Computing-Related Activi-ties

0 5 10 15 20 25

10.8

3.9

1.0

19.4

10.6

3.9

0.8

19.4

Summary

To-BeAs-Is

Time (Hours / Week)

Document Creation

Data & Information Access/Analysis

Email, Calendar, Contact, & Task Mgmt

LOB Application-Related Activities

Other

0 1 2 3 4 5

2.9

0.8

1.7

4.6

0.9

2.8

0.7

1.7

4.4

0.9


To-BeAs-Is

Time (Hours / Week)

Support, Self-Help, & Learning

Performance


Security & Privacy

System UI Navigation

Availability & Reliability

0.0 0.1 0.2 0.3 0.4

0.4

0.3

0.1

0.1

0.1

0.0

0.3

0.2

0.1

0.1

0.1

0.0


To-BeAs-Is

Time (Hours / Week)

Document Collaboration

Workflow (routing)


Other

0 1 2 3

2.2

0.7

0.6

0.4

2.2

0.7

0.6

0.4


To-BeAs-Is

Time (Hours / Week)


User Productivity Benefits AssessmentBusiness Value of Time Saved

Productivity Conversion Factor* (0%-100%) 50%

Value per User per Year

Info Wrkr

Individual ComputingDocument Creation $ 110 $ 74 $ 90 $ 45 $ 45 Data & Information Access/Analysis $ 189 $ 66 $ 121 $ 60 $ 60 Email, Calendar, Contact, & Task Mgmt $ - $ - $ - $ - $ - LOB Application-Related Activities $ 186 $ 460 $ 338 $ 169 $ 169 Other $ - $ - $ - $ - $ - Total $ 484 $ 600 $ 549 $ 274 $ 274

Collaborative ComputingDocument Collaboration $ - $ - $ - $ - $ - Workflow (routing) $ - $ - $ - $ - $ - Coordination / Project Mgmt $ - $ - $ - $ - $ - Other $ - $ - $ - $ - $ - Total $ - $ - $ - $ - $ -

PC Systems ManagementSupport, Self-Help, & Learning $ 181 $ 81 $ 125 $ 63 $ 63 Performance $ 356 $ 140 $ 236 $ 118 $ 118 Mobility & Remote Connectivity $ 70 $ 10 $ 36 $ 18 $ 18 Security & Privacy $ 89 $ 40 $ 62 $ 31 $ 31 System UI Navigation $ 39 $ 21 $ 29 $ 14 $ 14 Availability & Reliability $ 52 $ 31 $ 41 $ 20 $ 20 Total $ 787 $ 323 $ 529 $ 265 $ 265

Non-Computing-Related Activities $ - $ - $ - $ - $ -

Total $ 1,271 $ 923 $ 1,078 $ 539 $ 539

SummaryIndividual Computing $ 484 $ 600 $ 549 $ 274 $ 274 Collaborative Computing $ - $ - $ - $ - $ - PC Systems Management $ 787 $ 323 $ 529 $ 265 $ 265 Non-Computing-Related Activities $ - $ - $ - $ - $ - Total $ 1,271 $ 923 $ 1,078 $ 539 $ 539


Task Wrkr

Weighted Avg

*Total Adjusted

Adjusted (Per PC)

The table below calculates the value of time saved. Annual value is calculated by multiplying the hours saved per year times fully burdened hourly rate. The adjusted value is discounted by the "Productivity Conversion Factor". The adjusted value is the productivity benefit value used elsewhere in the workbook.

*Not all saved time will necessarily be used to conduct other value-adding activities. For example, if an employee completes assigned work more quickly and simply goes home earlier, no added business value will result. However, organizations typically do find ways to convert most time saved into real business value (even without laying off employees). For example: avoid hiring as the organization grows; redistributing work; re-deploying employees; conducting other activities; or simply filling in the saved time with more work that wouldn't otherwise get done. The "Productivity Conversion Factor" discounts the value of the time saved to account for inefficiencies/delays in converting the time saved into real business value. Since estimating time savings cannot easily be done accurately, it is also used to provide more conservative $ values. A 100% Productivity Converstion Factor applies no discount.

$-

$100

$200

$300

$400

$500

$600

$274

$-

$265

Business Value of Produc-tivity Benefits




An

nu

al P

rod

ucti

vity

Be

ne

fits

($

/PC

)

document.xls Revenue 22 of 30

Revenue Increase Enabled by the Solution

Segment Revenue Revenue Increase Driver %

Revenue ($000) Oth

er

Comments

Segment A1 3.0% $ 117,744 10.3% 1.5% 0.0% 0.5% 0.0% 0.0% 0.0% 0.0% $ 243

Segment A2 3.0% $ 117,744 10.3% 1.5% 0.0% 0.5% 0.0% 0.0% 0.0% 0.0% $ 243

Segment A3 3.0% $ 117,744 10.3% 1.5% 0.0% 0.5% 0.0% 0.0% 0.0% 0.0% $ 243

Segment A4 2.0% $ 78,496 10.3% 1.5% 0.0% 0.5% 0.0% 0.0% 0.0% 0.0% $ 162

Segment B1 2.0% $ 78,496 10.3% 1.5% 0.0% 0.5% 0.0% 0.0% 0.0% 0.0% $ 162

Segment B2 2.0% $ 78,496 10.3% 1.5% 0.0% 0.5% 0.0% 0.0% 0.0% 0.0% $ 162

Segment B3 2.0% $ 78,496 10.3% 1.5% 0.0% 0.5% 0.0% 0.0% 0.0% 0.0% $ 162

Segment B4 1.0% $ 39,248 10.3% 1.5% 0.0% 0.5% 0.0% 0.0% 0.0% 0.0% $ 81

Segment C1 1.0% $ 39,248 10.3% 1.5% 0.0% 0.5% 0.0% 0.0% 0.0% 0.0% $ 81

Segment C2 1.0% $ 39,248 10.3% 1.5% 0.0% 0.5% 0.0% 0.0% 0.0% 0.0% $ 81

Segment C3 1.0% $ 39,248 10.3% 1.5% 0.0% 0.5% 0.0% 0.0% 0.0% 0.0% $ 81

Segment C4 1.0% $ 39,248 10.3% 1.5% 0.0% 0.5% 0.0% 0.0% 0.0% 0.0% $ 81

All Other (Not Impacted) 78.0% $ 3,061,348 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% $ -

Total 100% $ 3,924,805 2.3% $ 1,784

Summary

Revenue ($000) Margin ($000)Improved Sales Effectiveness $ 12,952 $ 1,338 $ 268 Improved Marketing Effectiveness $ - $ - $ - Improved Customer Service $ 4,317 $ 446 $ 89

New/Expanded Channels/Geographies $ - $ - $ -

New/Enhanced Products/Services $ - $ - $ -

Improved Product Availability (fill rate, up-time) $ - $ - $ -

Other $ - $ - $ - Total (Annual) $ 17,269 $ 1,784 $ 357 Total (3-Year) $ 51,807 $ 5,351 $ 1,070


Addressed Segments (products, channels, geographies, business

unit, and/or markets)

Revenue (% of Total)

Profit Margin (% of Sales) Im

pro

ved S

ale

s Eff

ect

iveness

Impro

ved

Mark

eti

ng

Eff

ect

iveness

Impro

ved

Cust

om

er

Serv

ice

New

/Expanded

Channels

/Geogra

ph

ies

New

/Enhance

d

Pro

duct

s/Serv

ices

Impro

ved P

roduct

A

vaila

bili

ty (

fill

rate

, up-t

ime)

Annual Benefit ($000)

Benefit ($ per PC)

This worksheet estimates incremental revenue enabled by the solution. Not all projects will have credibly quantifiable revenue impacts. Revenue impacts can be difficult to accurately assess. Research, analysis, and supplemental modeling is likely needed to credibly estimate true revenue impacts. One key is to target (at a detailed level) precisely what portion of revenue is likely to be impacted (the segment) and how the solution is enabling the revenue increase (the driver). This model assumes the initiative will enable a one-time revenue increase (the same annual revenue benefit throughout the life of the solution).Note that the benefit is the marginal profit on the incremental revenue, not the revenue itself. We recommend using net operating profit, not gross margin: in the long run, on average, fixed costs tend to increase at the same rate as revenue growth.

Benefit ($ per PC)

$0

$50

$100

$150

$200

$250

$300

$350

$400

$268

$-

$89

$- $- $- $-

Revenue Growth (Margin)

Other

Improved Product Availability (fill rate, up-time)New/Enhanced Products/Services

New/Expanded Chan-nels/Geographies

Improved Customer Service

Improved Marketing Effec-tiveness

Improved Sales Effec-tiveness

Ann

ual B

enefi

t pe

r PC

The table and graph below summarize the annual revenue gain and margin on the revenue gain (the benefit).

document.xls KPIs 23 of 30

Key Performance Indicator (KPI) Assessment (Optional)

Organization Performance Percentile KPI Value

Business Objective KPI / Metric Laggard As-Is To-Be As-Is To-Be Comments

Sales/Marketing PerformanceCustomer Acquisition 15% 19% 30% 30% 16% 16% 0%

Customer Retention Customer annual turnover (%) 12% 10% 30% 30% 11% 11% 0%

Customer Satisfaction 30% 95% 40% 40% 56% 56% 0%

Time to respond to RFP (days) 10.0 5.0 30% 30% 8.5 8.5 0%

Business Management Effectiveness

10.0 5.0 30% 30% 8.5 8.5 0%

Business Visibility 15% 75% 30% 30% 33% 33% 0%

Business Alignment 15% 75% 30% 30% 33% 33% 0%

Decision success rate % 65% 75% 30% 30% 68% 68% 0%

Information Availability % of desired information readily available 30% 60% 30% 30% 39% 39% 0%

Information Quality 30% 75% 30% 30% 44% 44% 0%

5.0 3.0 50% 50% 4.0 4.0 0%

Supply/Operations Performance

30% 70% 30% 30% 42% 42% 0%

Defect rate 45.0 2.0 50% 50% 23.5 23.5 0%

Forecast Accuracy Avg forecast error % 25% 13% 30% 30% 21% 21% 0%

On-time delivery 90% 95% 30% 30% 91% 91% 0%

Cash Cycle Time Days 30.0 24.0 30% 30% 28.2 28.2 0%

50% 70% 30% 30% 56% 56% 0%

Technology Effectiveness

30% 99% 30% 50% 51% 65% 27%

SLA achievement % 10% 90% 40% 70% 42% 66% 57%

Maturity Level Best practice adoption % 10% 90% 40% 70% 42% 66% 57%

System response time 3.0 0.2 50% 80% 1.6 0.8 52%

Application delivery agility 120.0 35.0 50% 80% 77.5 52.0 33%

30% 95% 40% 60% 56% 69% 23%

Security # of vulnerabilities (reduce attack surface) 50.0 20.0 40% 70% 38.0 29.0 24%

Industry KPI Values

World Class

Improve-ment %

Close rate (% of qualified sales opportunities)

% of customers that are highly satisfied when surveyed

Sales-based document collaboration Efficiency

Decision-Making Speed / Reaction Time to Market Event/Opportunity

Days to accumulate information, analyze, collaborate, decide, plan (for information-intensive decisions)

% of analytical data easily accessible to authorized decision-makers

% of org. with auto-updated KPIs linked to corporate objectives

Decision-Making Effectiveness

% of analytical data with single trusted access point

Mergers & Acquisition Analysis Speed

Months to complete analysis, workflows, due diligence, regulatory approvals, legal docs, etc.

Quality of Products/Services

Customer preference vs. competitive products % (e.g. blind taste test)

# of process/product/service defects/errors per 1000

Supply Chain Effectiveness

Project management effectiveness

% of document-intensive projects that complete on-time / on-budget

Records Compliance (centralized content control)

% of electronic content (shared documents, reports, web content, email) that is controlled (retention, security, reuse, storage) centrally

Service Level Agreement Performance

Average system (local/LAN/WAN) response delay (Seconds)

Time (days) to deliver applications; time to start delivery

User computing experience satisfaction

% of users that are highly satisfied when surveyed

Not all benefits can credibly be translated into financial ($) benefit terms. These are sometimes referred to as intangible benefits. This worksheet provides a structure (one of many) to estimate how the initiative may impact non-financial KPIs.

The percentiles shown are how the organization's KPI performance compares to others in the industry. 0% represents worst performance in the industry (laggard); 50% is average performance; 100% is best in the industry (world class performance). For example, being at the 20th percentile implies that 80% of the other organizations in the industry perform better. The "Improvement" indicates how much the organization is expected to improve KPI performance due to the solution. The model assumes a linear relationship between KPI performance and industry percentile -- a simplifying assumption.

Select "Business Objectives" and KPIs that are important to your business and are expected to be significantly impacted by the solution. Estimate "Laggard" and "World Class" KPI values in your industry. Next determine what percentile your organization is currently performing at (the as-is KPI value is calculated). Next determine to what percentile you expect the initiative will take you to. The to-be KPI value (and % improvement) are calculated.

document.xls KPIs 24 of 30

Key Performance Indicator (KPI) Assessment (Optional)Summary

PercentileAs-Is To-Be Imp.

Sales/Marketing Performance 33% 33% 0%Business Management Effectiveness 33% 33% 0%Supply/Operations Performance 33% 33% 0%Technology Effectiveness 41% 69% 27%Average 35% 42% 7%


Sales/Marketing Performance

Business Man-agement Effec-

tiveness


Technology Effec-tiveness

0%

20%

40%

60%

80%

100%

33% 33% 33%

41%

33% 33% 33%

69%

KPI Performance Comparison As-IsTo-Be

Performance Percentile

World Class

Laggard

The category as-is, to-be, and improvement average percentiles are summarized below. Note: the improvement (Imp.) is not the KPI value % improvement, it shows the percentile point improvement.

document.xls ROI 25 of 30

Financial Analysis

Summary of Results

Per PCCosts (3-Yr) $ 1,743 $ 8,716 Benefits (3-Yr) $ 5,339 $ 26,697 Net Benefits $ 3,596 $ 17,982 NPV (Net Present Value) $ 2,782 $ 13,908

206%

IRR (Internal Rate of Return) 124%Payback Period 9 MonthsNumber of PCs 5000

Costs & Benefits ($ per PC) Costs & Benefits ($000)

One-Time One-Time 3-Year TotalCosts $ 1,242 $ 167 $ 1,743 $ 6,210 $ 835 $ 8,716 Benefits $ 75 $ 1,755 $ 5,339 $ 376 $ 8,774 $ 26,697

Cost Summary

Costs ($ per PC) Costs ($000)

One-Time One-Time 3-Year TotalHardware $ 606 $ 91 $ 879 $ 3,030 $ 455 $ 4,394 Software $ 150 $ 34 $ 253 $ 748 $ 172 $ 1,265 IT Labor, Services, & Training $ 213 $ 18 $ 268 $ 1,067 $ 91 $ 1,340 End-User Labor & Training $ 273 $ 24 $ 343 $ 1,364 $ 118 $ 1,717

Total $ 1,242 $ 167 $ 1,743 $ 6,210 $ 835 $ 8,716

Organization Total ($000)

ROI (Return on Investment) - [Total Net Benefits / Total Costs]

Annual On-Going

3-Year Total

Annual On-Going

Annual On-Going

3-Year Total

Annual On-Going

Costs (3-Yr) Benefits (3-Yr)$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$1,743

$5,339

Total Costs Vs Benefits

Co

sts

& B

en

efi

ts (

$/P

C)The tables and graphs summarize the costs and benefits and calculates ROI, NPV, IRR, and payback period. The results are shown average per PC

and the total for the organization.

Below are the initial design/development/deployment and added annual on-going costs required to fully deploy, adopt and support the initiative. Additional details can be found below and on the "Cost" worksheet.

This model simulates the costs and benefits of the initiative. The tables and charts below summarize the tool results.

3-Year Total $-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

$879

$253

$268

$343

Initiative Cost Summary (per PC)

End-User Labor & Training


Software

Hardware

Cost

s ($

per P

C)

3-Year Total $-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$2,253

$400

$1,616

$1,070

Initiative Benefit Summary (per PC)

Revenue Growth


Other Direct Cost Sav-ings

IT Labor/Services TCO Savings

Bene

fits (

$ pe

r PC)


Financial AnalysisThis model simulates the costs and benefits of the initiative. The tables and charts below summarize the tool results.

Benefits Summary

Benefits ($ per PC) Benefits ($000)

Benefit Summary One-Time One-Time 3-Year TotalIT Labor/Services TCO Savings $ - $ 751 $ 2,253 $ - $ 3,755 $ 11,264 Other Direct Cost Savings $ 75 $ 108 $ 400 $ 376 $ 542 $ 2,001 User Productivity Benefits $ - $ 539 $ 1,616 $ - $ 2,694 $ 8,082 Revenue Growth $ - $ 357 $ 1,070 $ - $ 1,784 $ 5,351

Total $ 75 $ 1,755 $ 5,339 $ 376 $ 8,774 $ 26,697

Benefit Sub-CategoriesIT Labor/Services TCO Savings $ - $ 751 $ 2,253 $ - $ 3,755 $ 11,264 Other Direct Cost Savings

IT Savings $ 75 $ 94 $ 356 $ 376 $ 468 $ 1,781 Business Savings $ - $ 15 $ 44 $ - $ 73 $ 220 Total $ 75 $ 108 $ 400 $ 376 $ 542 $ 2,001

User Productivity BenefitsIndividual Computing $ - $ 274 $ 823 $ - $ 1,372 $ 4,115 Collaborative Computing $ - $ - $ - $ - $ - $ - PC Systems Management $ - $ 265 $ 794 $ - $ 1,323 $ 3,968 Total $ - $ 539 $ 1,616 $ - $ 2,694 $ 8,082

Revenue Growth $ - $ 357 $ 1,070 $ - $ 1,784 $ 5,351

Total $ 75 $ 1,755 $ 5,339 $ 376 $ 8,774 $ 26,697

Cash Flow

Initial Year 1 Year 2 Year 3 Year 4 Year 5 Total NPVCosts $ 1,242 $ 167 $ 167 $ 167 $ - $ - $ 1,743 $ 1,657 Benefits $ 75 $ 1,755 $ 1,755 $ 1,755 $ - $ - $ 5,339 $ 4,439 Net Benefits $ (1,167) $ 1,588 $ 1,588 $ 1,588 $ - $ - $ 3,596 $ 2,782 Cumulative Cash Flow $ (1,167) $ 421 $ 2,009 $ 3,596 $ 3,596 $ 3,596 Payback Period (Months) 9

Annual On-Going

3-Year Total

Annual On-Going

0 1 2 3 4 5-$2,000

-$1,000

$0

$1,000

$2,000

$3,000

$4,000Cumulative Cash Flow

Year

Cu

mu

lati

ve

Cash

Flo

w (

$/P

C)

Below are the benefits enabled by the initiative. The detailed calculations are below and on the green benefit tabs.

Shown below are the costs and benefits by year, the net benefits (benefits-costs), and the cumulative cash flow. This is used to calculate payback period, IRR, and NPV.



Cost Details

Costs ($ per PC) Costs ($000)

Cost / Benefit Category One-Time One-Time 3-Year TotalHardware

Client Hardware $ 600 $ 90 $ 870 $ 3,000 $ 450 $ 4,350 Server Hardware $ 6 $ 1 $ 9 $ 30 $ 5 $ 44

Total $ 606 $ 91 $ 879 $ 3,030 $ 455 $ 4,394 Software

Client Software $ 143 $ 33 $ 242 $ 715 $ 164 $ 1,208 Server Software $ 7 $ 2 $ 11 $ 33 $ 8 $ 56

Total $ 150 $ 34 $ 253 $ 748 $ 172 $ 1,265 IT Labor, Services, & Training

One-time Implementation Labor/Services $ 151 $ - $ 151 $ 753 $ - $ 753 Annual On-Going Labor/Services $ - $ 18 $ 55 $ - $ 91 $ 273 Incremental Help Desk Calls $ 11 $ - $ 11 $ 54 $ - $ 54 IT Training $ 52 $ - $ 52 $ 261 $ - $ 261

Total $ 213 $ 18 $ 268 $ 1,067 $ 91 $ 1,340 End-User Labor & Training

End-User Labor $ 60 $ 24 $ 130 $ 299 $ 118 $ 652 End-User Training $ 213 $ - $ 213 $ 1,066 $ - $ 1,066

Total $ 273 $ 24 $ 343 $ 1,364 $ 118 $ 1,717

Total Costs $ 1,242 $ 167 $ 1,743 $ 6,210 $ 835 $ 8,716

Annual On-Going

3-Year Total

Annual On-Going

3-Year Total$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

$870

$9 $242 $11

$151 $55 $11 $52

$130

$213


End-User Training

End-User Labor

IT Training



One-time Implementation Labor/Services

Server Software

Client Software

Server Hardware

Client Hardware

Tota

l Cos

ts ($

per

PC)

The table/chart below provide additional cost details.



Benefit Details

IT Labor/Services TCO SavingsBenefits ($ per PC) Benefits ($000)

One-Time One-Time 3-Year TotalPC Management Services $ - $ 233 $ 699 $ - $ 1,164 $ 3,493 Help Desk (Tech Support) $ - $ 146 $ 437 $ - $ 728 $ 2,185 Server & Network Mgmt Services $ - $ 173 $ 520 $ - $ 867 $ 2,602 Application Development $ - $ 128 $ 383 $ - $ 638 $ 1,915 Administration & Other $ - $ 71 $ 214 $ - $ 356 $ 1,069

Total $ - $ 751 $ 2,253 $ - $ 3,755 $ 11,264

Other Direct Cost SavingsBenefits ($ per PC) Benefits ($000)

One-Time One-Time 3-Year Total

IT SavingsSoftware - Clients $ 60 $ 41 $ 183 $ 300 $ 205 $ 915 Software - Servers $ 8 $ 1 $ 12 $ 40 $ 6 $ 58 Hardware $ 7 $ 1 $ 10 $ 36 $ 5 $ 52 IT Services $ - $ 5 $ 14 $ - $ 24 $ 72 Power/Electricity Usage $ - $ 45 $ 134 $ - $ 224 $ 672 Other IT Costs $ - $ 1 $ 2 $ - $ 4 $ 12

Total $ 75 $ 94 $ 356 $ 376 $ 468 $ 1,781 Business Savings

Travel Expenses $ - $ 15 $ 44 $ - $ 73 $ 220 Business Services $ - $ - $ - $ - $ - $ - Other Business Expenses $ - $ - $ - $ - $ - $ -

Total $ - $ 15 $ 44 $ - $ 73 $ 220

Total Other Direct Cost Savings $ 75 $ 108 $ 400 $ 376 $ 542 $ 2,001

Annual On-Going

3-Year Total

Annual On-Going

Annual On-Going

3-Year Total

Annual On-Going

As-Is TCO To-Be TCO

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$625 $392

$396

$251

$774

$601

$1,144

$1,016

$559

$488

IT Labor TCO Comparison


Application Devel-opment




TC

O p

er

PC

pe

r Y

ea

r




Application De-velopment


$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

0

5

10

15

20

25

30

35

40

45

50

$625 $396 $774 $1,144 $559 $392 $251 $601 $1,016 $488

26.8 25.2

33.2

47.3

25.2

19.5 18.5

27.1

42.6

22.4

IT Labor Comparison

As-Is TCO To-Be TCO As-Is FTEs To-Be FTEs

TC

O p

er

PC

pe

r Y

ea

r

FT

Es

(F

ull

Tim

e E

qu

iva

len

ts)

The tables/charts below provide additional details regarding each of the four quantified benefit types.



User Productivity BenefitsBenefits ($ per PC) Benefits ($000)

One-Time One-Time 3-Year Total

Individual ComputingDocument Creation $ 45 $ 135 $ - $ 225 $ 674 Data & Information Access/Analysis $ 60 $ 181 $ - $ 302 $ 906 Email, Calendar, Contact, & Task Mgmt $ - $ - $ - $ - $ - LOB Application-Related Activities $ 169 $ 507 $ - $ 845 $ 2,535 Other $ - $ - $ - $ - $ -

Total $ - $ 274 $ 823 $ - $ 1,372 $ 4,115 Collaborative Computing

Document Collaboration $ - $ - $ - $ - $ - Workflow (routing) $ - $ - $ - $ - $ - Coordination / Project Mgmt $ - $ - $ - $ - $ - Other $ - $ - $ - $ - $ -

Total $ - $ - $ - $ - $ - $ - PC Systems Management

Support, Self-Help, & Learning $ 63 $ 188 $ - $ 314 $ 941 Performance $ 118 $ 354 $ - $ 590 $ 1,770 Mobility & Remote Connectivity $ 18 $ 55 $ - $ 91 $ 273 Security & Privacy $ 31 $ 93 $ - $ 154 $ 463 System UI Navigation $ 14 $ 43 $ - $ 72 $ 217 Availability & Reliability $ 20 $ 61 $ - $ 101 $ 304

Total $ - $ 265 $ 794 $ - $ 1,323 $ 3,968

Total User Productivity Benefits $ - $ 383 $ 1,148 $ - $ 1,913 $ 5,738

Annual On-Going

3-Year Total

Annual On-Going

3-Year Total $-

$50

$100

$150

$200

$250

$300

$350

$400

$450

$183

$12 $10 $14

$134

$2 $44 $- $-

Direct Cost Savings

Other Business Expenses

Business Services

Travel Expenses

Other IT Costs

Power/Electricity Usage

IT Services

Hardware

Software - Servers

Software - Clients

Bene

fit ($

per

PC)




Non-Computing-Related Activi-ties

0 5 10 15 20 25

10.8

3.9

1.0

19.4

10.6

3.9

0.8

19.4

Time per Activity

To-BeAs-Is

Time (Hours / Week)

$-

$100

$200

$300

$400

$500

$600

$274

$-

$265

Business Value of Productiv-ity Benefits



Individual Comput-ing

An

nu

al P

rod

ucti

vity

Be

ne

fits

($

/PC

)


Financial AnalysisThis model simulates the costs and benefits of the initiative. The tables and charts below summarize the tool results. Revenue Growth

Benefits ($ per PC) Benefits ($000)

One-Time One-Time 3-Year TotalImproved Sales Effectiveness $ 268 $ 803 $ - $ 1,338 $ 4,013 Improved Marketing Effectiveness $ - $ - $ - $ - $ - Improved Customer Service $ 89 $ 268 $ - $ 446 $ 1,338 New/Expanded Channels/Geographies $ - $ - $ - $ - $ - New/Enhanced Products/Services $ - $ - $ - $ - $ -

$ - $ - $ - $ - $ -

Other $ - $ - $ - $ - $ - Total $ - $ 357 $ 1,070 $ - $ 1,784 $ 5,351

Summary of Non-Financial Key Performance Indicator Changes

Percentile

As-Is To-BeSales/Marketing Performance 32.5% 32.5% 0.0%Business Management Effectiveness 32.9% 32.9% 0.0%Supply/Operations Performance 33.3% 33.3% 0.0%Technology Effectiveness 41.4% 68.6% 27.1%Average 35.0% 41.8% 6.8%

Annual On-Going

3-Year Total

Annual On-Going

Improved Product Availability (fill rate, up-time)

Improve-ment


Benefit ($ per PC)

$0

$50

$100

$150

$200

$250

$300

$350

$400

$268

$-

$89

$- $- $- $-

Annual Revenue Growth (Margin)

Other

Improved Product Availability (fill rate, up-time)

New/Enhanced Products/Services

New/Expanded Channels/Ge-ographies

Improved Customer Service

Improved Marketing Effectiveness

Improved Sales Effectiveness

Ann

ual B

enefi

t pe

r PC

Sales/Marketing Performance

Business Man-agement Effec-

tiveness


Technology Effec-tiveness

0%

20%

40%

60%

80%

100%

33% 33% 33%

41%

33% 33% 33%

69%

KPI Performance Comparison As-IsTo-Be

Performance Percentile

World Class

Laggard

The table/chart below provides a summary of the 4 categories of non-financial KPIs. There are 4 to 10 specific KPIs in each category. The percentiles shown are how the organization compares to others in the industry. 0% represents worst performance in the industry (laggard); 50% is average performance; 100% is best in the industry (world class performance). The "Improvement" indicates how much the organization is expected to improve KPI performance due to the solution. Additional details can be found in the "KPIs" worksheet.


it initiative roi tool-nm

Documents

pc systems managementsupport

hall consulting

3rd party software

network mgmt services

pc systems management

information access analysis email

key performance indicator

productivity conversion factor