Friday, 9 July 2010

World Cup 5 - SharePoint ROI

Even though we are still having a World Cup theme ROI here means ‘Return on Investment’ not Republic of Ireland. At least France didn’t prosper too much from the dodgy goal against the Irish. Yes, I am going to try and explain how even in these difficult economic times the different ways that investing in SharePoint can bring a Return On Investment.

So what ‘Return on Investment’ (ROI) should companies expect to see then with SharePoint? A good starting point whenever trying to estimate ROI of any project is to break them down in to three types of ROI’s. The three are Hard ROI, Soft ROI and Risk Mitigation. Let me try and explain what these mean;

To keep my World Cup theme let’s look at the FA’s decision to not sack Fabio Cappello. A ‘Hard ROI’ is a direct saving of a system. So by keeping Mr. Cappello the FA don’t have to pay him a big wad of compensation. Also, they don’t have to have the costs of advertising and interviewing for a new manager. A ‘Soft ROI’ is an indirect benefit. For example, because Sir Trevor Brooking doesn’t have to spend days looking for a replacement manager then he can spend his time doing other things like finally setting up a National Football Academy. Another Soft ROI of keeping Cappello could be they will save on hotel costs for the 2012 European Championships. ‘Risk Mitigation’ is often the hardest to estimate as it is really what might go wrong if you didn’t do something. It is a bit like having car insurance. Although you might not have a crash how much would a crash cost if you didn’t have insurance. So if Cappello wasn’t kept on and the FA had employed somebody else who was a bigger disaster (remember Steve McClaren) and they had to quickly sack them, how much would the FA have to pay him?

So let’s now break down these ROI’s for a SharePoint Project;

Hard ROI
Will it replace any existing systems and associated licences?
Will it reduce any maintenance or support contracts?
Will it reduce cost of development work for third party solutions it replaces?
Will it reduce any training costs?
Will it reduce the amount of stationary to be purchased?
Will it reduce cost of physically transporting information?
Will it reduce cost of development work for third party solutions it replaces?

Soft ROI
Will it save employees time they can spend doing something else. - If there are 200 people in your company and everyone saves just 10 minutes a day, your company would: Recover the equivalent of £100,000 in salaries? Have the equivalent of an extra 5 man years?
Will it improve process speeds of information meaningless delays?
Will it reduce printing costs?
Will it reduce energy costs?
Will it encourage employees to be more productive as they have more information available?
Will it help relationship with customers or suppliers?
Will it help gain certifications or standards that will help generate more sales?
Will the shared information reduce marketing costs (i.e. all corporate images stored in one central location)?
Will having one main system reduce IT Helpdesk calls?

Risk Mitigation
What would be the cost if you lost paper copies or data?
Without it will you lose certifications and if so what would be the possible loss to the business?
How secure is the current data and what would be the cost if it leaked out?
Is the current system still supported and what would the cost be if it breaks down.

If you are starting a SharePoint Project then the Office Talk SharePoint Project Checklist is a great place to start and best of all (unlike sacking Fabio) it is FREE. Just click the link below to request your copy. Free SharePoint Checklist

So on Sunday is the World Cup Final and excitingly there will be a new country as World Champions as neither Spain nor Holland have won the golden trophy before. Good luck to both countries and I am going to predict a score of Holland 2 Spain 1, but then I thought England would be champions. At least the team of referees will be English. The big question though is who Paul ‘the psychic’ Octopus is going to predict the winner to be? If only he had not predicted Germany to beat England.

If you haven’t yet tested this SharePoint I keep going on about then why not try it for free now at promise we won’t ask for your credit card number or inside leg measurement.

No comments: