Analyze This - How to Calculate
the Business Value of SharePoint
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@davidsamoranski
david.samoranski
@robbinsgioia.com
David Samoranski
Director, Western Region
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Session Summary
Value
Processes
Solutions
Analysis
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VALUE
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Problems
Change
Complexity
Compliance
Consolidation
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Solutions
SharePoint
Forms Services
Lync Server
Excel Services
BCS
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Better Together
Pain
Value
Problems
Solutions
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Improving Processes
Ad-hoc
Repeatable
Managed
Optimized
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Analysis Activities
IDENTIFY
EXPLORE
DESIGN
ANALYZE
Current State Metrics
Process Pains
Where can SharePoint
help the process?
Future State
Improvements
Cycle Time
Manual
Activities
Which capabilities are
needed?
50% Decrease in Cycle
Time
Work Time
Communication
Inefficiencies
What is the effort
required?
65% Decrease in Work
Time
Cost
Unnecessary
Process Steps
How much will that
cost?
40% Cost Reduction
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Identify Current State
Who
What
When
Where
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Explore Pains and Challenges
Knowledge
Management
Communication
Visibility
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Design Solution Alternatives
Content
Workflow
Integration
Reporting
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Analyze Business Value
Today
Tomorrow
Cost
Benefit
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Solution Examples
Common business processes that could be improved with SharePoint
Solution →
Collaborative
Document
Development
Automated
Performance
Reporting
Project Portfolio
Management
Records Management
Automated Forms
Standardized
Investment Decision
Making
Compliance Information
Customer Assessment
Survey
Lead Capture Rates
Marketing Plan
Execution
Historic Campaign or
Branding Information
Customer Satisfaction
Surveys
Training Materials
Employee Performance
Reviews
Strategic Human Capital
Initiatives
EEO Compliance
Information
Finance
Invoicing Forms
Financial Performance
Reporting
Financial Planning and
Budgeting
Operations
Sensitive Records
Management
Discretionary Spending
Virtual Project
Management Office
Product Development
New Product
Development
Milestone Achievement
Project Performance
Reporting
Change Request Forms
System Performance
Tracking
Organization ↓
Sales
Lead Qualifications and
Conversions
Actual Vs. Forecast
Dashboards
Lead Tracking
Customer Surveys
Marketing
HR
IT
Marketing Plan
Development
Project Status
Reporting
Managing IT Project
Requests
Billing Information
Customer Invoicing
Records
Supplier Information
Vendor Data
Management
Employee Satisfaction
Surveys
New Hire Recruiting
and Onboarding
Online Customer
Invoicing
Business Process
Automation
Customer Data and
Market Requirements
Product Requirements
Documentation
Vendor Contracts and
Warranty Information
Self-service Inventory
System
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PROCESSES
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Process Modeling
Participants
Steps
Decisions
Metrics
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Participants
Roles
Swimlanes
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Steps
Sequence
Participants
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Decisions
Approvals
Authority
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Metrics
Work Time
Cycle Time
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Problem Identification Template
ID
What is the problem?
Who is
affected?
Where does it
occur?
When does it
happen?
Why does it
exist?
1
2
3
4
5
6
7
8
9
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Process Analysis Template
Phase 1
Phase 2
Phase 3
Phase 4
Phase
Description
Stakeholders
Problems
Identified
Impact
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SOLUTIONS
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Solution Design
Brainstorm
Define
Prioritize
Select
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Solution Identification Template
ID
What is the solution?
Who is
affected?
Where does it
occur?
When does it
happen?
Why is it an
improvement?
1
2
3
4
5
6
7
8
9
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Solution Analysis Template
ID
Solution
Value
Complexity
1
2
3
4
5
6
7
8
9
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Detailed Value Analysis
ID
Solution
Urgency
Scale
Impact
Reuse
Value
1
2
3
4
5
6
7
8
9
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Detailed Complexity Analysis
ID
Solution
Implementation
Training
Support
External
Complexity
1
2
3
4
5
6
7
8
9
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Prioritization Matrix Template
Complexity
High 5
Shared calendaring / presence
awareness to determine
resource availability
Searchable employee
profiles, skill-sets, and
contact information
3
Searchable, collaborative
document repository and
storage
Improved ability to track
changes, compare, and
integrate document
versions
Low 1
Low 1
3
Value
High 5
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Process Analysis Template
Phase 1
Phase 2
Phase 3
Phase 4
New Phase
Description
Stakeholders
Improvements
Benefit
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Anticipated Benefits
ID
Process Phase
Improvement
Benefits
Features
Required
KPI
Impact
Stakeholders
Affected
1
2
3
4
5
6
7
8
9
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ANALYSIS
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Communicating Value
Cost
Benefit
Value
Return
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Common Cost Elements
Cost Element
Cost Equation
Software
Pilot Program
Licenses x cost of license
Hardware components x cost
IT hours x cost per hour
Cost of labor, hardware, software
Development Time
Consultant cost + IT hours x cost per hour
App Testing/Remediation
IT hours x cost per hour
Image Engineering
IT hours x cost per hour
IT hours x cost per hour
Install time x cost per hour
Training class expense + employee training time
IT hours x cost per hour
Desktop & server costs
Hardware
Planning Time
Installation Time
Employee Downtime
Training
Support Costs
Ongoing Maintenance
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Cost Analysis Template
Cost Element
Item
One-Time Cost
Recurring Cost
Software
Hardware
Planning
Installation
Development
Training
Support
Maintenance
Total
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The Cost Line
Financial Measure
Implementation Costs
Year 0
Year 1
Year 2
Year 3
($850,000)
($850,000)
($50,000)
Recurring Support Costs
Total
($50,000)
($50,000)
($150,000)
Benefits (one-time)
$0
Benefits (on-going)
$1,000,000
$1,000,000
$1,000,000
$3,000,000
$2,000,000
Net Cash Flow
($850,000)
$950,000
$950,000
$950,000
Cumulative Cash Flow
($850,000)
$100,000
$1,050,000
$2,000,000
Discount Rate
10%
Net Present Value (NPV)
$1,535,900
NPV per User (1k users)
$1,535
Payback (months)
Internal Rate of Return (IRR)
15
53%
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Benefit Equations
Reduced Operating Cost =
Improvement in work time per hour
X Number of hours annually
X Fully burdened resource cost/hour
= Dollars Saved
Increased Profit =
(Future close rate – current close rate)
X Number of Opportunities
X Average Revenue per closed sale =
X Gross Margin
Dollars Earned
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Benefit Analysis Template
ID
Phase
Improvement
Cost Decrease
Revenue Increase
Benefit
1
2
3
4
5
6
7
8
Total
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The Benefit Line
Financial Measure
Implementation Costs
Year 0
Year 1
Year 2
Year 3
($850,000)
($850,000)
($50,000)
Recurring Support Costs
Total
($50,000)
($50,000)
($150,000)
Benefits (one-time)
$0
Benefits (on-going)
$1,000,000
$1,000,000
$1,000,000
$3,000,000
$2,000,000
Net Cash Flow
($850,000)
$950,000
$950,000
$950,000
Cumulative Cash Flow
($850,000)
$100,000
$1,050,000
$2,000,000
Discount Rate
10%
Net Present Value (NPV)
$1,535,900
NPV per User (1k users)
$1,535
Payback (months)
Internal Rate of Return (IRR)
15
53%
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Cost/Benefit Analysis
Discount Rate
NPV
Payback Time
IRR
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The Analysis Line
Financial Measure
Implementation Costs
Year 0
Year 1
Year 2
Year 3
($850,000)
($850,000)
($50,000)
Recurring Support Costs
Total
($50,000)
($50,000)
($150,000)
Benefits (one-time)
$0
Benefits (on-going)
$1,000,000
$1,000,000
$1,000,000
$3,000,000
$2,000,000
Net Cash Flow
($850,000)
$950,000
$950,000
$950,000
Cumulative Cash Flow
($850,000)
$100,000
$1,050,000
$2,000,000
Discount Rate
10%
Net Present Value (NPV)
$1,535,900
NPV per User (1k users)
$1,535
Payback (months)
Internal Rate of Return (IRR)
22
53%
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QUESTIONS?
David Samoranski | @davidsamoranski | (707) 843-3082
david.samoranski@robbinsgioia.com
@davidsamoranski
THANK YOU!
@davidsamoranski