Bryan RobertsonSr. Analyst OpenRoad

Intranet ROI:

Five Approaches

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#3 The information in this presentation is confidential. Please do not redistribute. Thanks!Andrew Magill – (CC)

David Goehring – (CC)

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V. H. D. – (CC)

Introduction

Ideas are plentiful

Money and Time are scarce

ROI is what makes the difference between ideas that are implemented and those that are not

ROI APPROACHES

Kbear65 – (CC)

Your ROI approach must fit your organization

Eric E Castro – (CC)

Yoel Ben-Avraham – (CC)

HARD NUMBERS#1

$ £ ¥ €

Directly linked

Realized

Digitize

Automate

Intranet 1.0 ROI

V. H. D. – (CC)

Mikhail Esteves– (CC)

Dan Dzurisin – (CC)

Hard Numbers

Require: real currency, directly linked investment to outcome, must be realized

Traditionally digitization and automation

Associated with Intranet 1.0, largely evaporating

Hard Number Solutions

Piggybacking and bundling projects

Skunk works projects

NOT POSSIBLE / FAITH BASED ROI

#2

Jeffrey Walker (late)CEO of Atlassian, 2007

ROI? Wrong question. That may not be a popular thing to say in a CFO’s office, or perhaps a CIO’s office, but these people are not the ones driving 2.0 adoption, or buying 2.0 tools, in the vast majority of instances. What’s the ROI on email? What’s the ROI on IM? If there’s a study, I guarantee it’s crap. ROI studies on any software are famous fiction.

Andrew McAfee Robert Kaplan David Norton

Intangible Asset Value

=Ability to help

an organization implement its strategy

Andrew Magill – (CC) Eliazar Parra Cardenas – (CC)

ROI Not possible:

Some believe that it isn’t worth quantifying benefits as financials

Value of these “Intangible Assets” is in the ability it provides an org to implement strategy

Time/Money required can be used to compare opportunity costs

LAGGING ROI#3

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Paul Sapiano – (CC) Katrina Tuliao – (CC)

Lagging ROI:

Request an innovation bucket of funds

Treat it as a stock portfolio. Return at portfolio level not individual projects

Make clear there will be some failure

Report back regularly on progress and ask for more money or cancel program

ROI OF SOLVED PROBLEMS#4

Jon MellSocial Business blogger, 2008

The conclusion I took away was that ROI only makes sense when applied to a specific business problem - then you piggy-back on the ROI of that business problem, rather than trying to make a generic ROI case for widespread wiki, blog, or social software adoption.

Supply chain metaphor image

Dennis Howlett

Dennis HowlettZD Net blogger, 2008

In my argument, breakthrough ROI comes from seeing these technology through the lens of collaboration, which in turn implies process and context. I am mindful that huge amounts of value continue to be locked up in supply chains. AMR quoted a number of $3 trillion in 2005. Has that materially changed? Simply being able to communicate across supply chains in a meaningful manner could do wonders to lubricate those rusty wheels.

Russ [rfduck] – (CC)

Solved problems:

Solve a specific problem instead of making a generic business case

e.g. Make case to solve supply chain issues rather than justify extranet

SOFT / PROXY NUMBERS#5

anyjazz65 – (CC)

Sales

Finding ROI: Measuring Intranet InvestmentsPrescient Digital

Productivity

CompetitivenessApplication Access

InfrastructureCollaboration

Time to market

Customer Service

Human Resources

David Goehring – (CC)

CAUTIO

N

Peter Merholz

Soft/proxy numbers:

Use non-financial numbers that will show improvement in an aspect of corporate performance

Use caution when using time savings metrics

IDENTIFYING THE RIGHT APPROACH

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SUMMING UP

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Yoel Ben-Avraham – (CC)

Approaches

#1 Hard Numbers

#2 Not Possible / Faith Based ROI

#3 Lagging ROI

#4 ROI of Solved Problems

#5 Soft / Proxy Numbers

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Jessica.Tam – (CC)

mandiberg – (CC)

Bryan Robertsonbryanr@thoughtfarmer.com

604.694.0554 x105

twitter.com/bryantrobertson

thoughtfarmer.com/blog