ssa03 business case - aiim · enterprise content and records management ... yexisting sharepoint...

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SharePoint CertificateProgramSpecialist Course

Module SSA‐3

Business Case

AIIM SharePoint Certificate Program

SharePointPractitioner

SharePointSpecialist

SharePointStrategy

Case StudySharePointSpecialist

Copyright © AIIM I All rights reserved.

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SharePoint Specialist Course Outline

Implement SustainTransitionAssess

Strategy

Information Gathering

Test Train

Change Management

Customization

Integration

Documenting Requirements

Records Management

Business Case

Test, Train, Sustain

Migration


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Governance

Module 3

Business CaseBusiness CaseHow to build a business case for enterprise content and records management


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Objectives

At the end of this module, you will be able to:

Quantify the technical administrative andQuantify the technical, administrative and productivity benefits of implementing SharePoint

Identify the level of effort and cost elements to execute the strategy and program plan

Identify the business case areas for justifying enterprise content and records managemententerprise content and records management


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Agenda

Business Case Overview3.1

Cost Areas3.2

Benefits Overview3.3

Quantitative Benefits3.4

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Qualitative Benefits3.5

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Agenda


Cost Areas3.2



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Traditional ECRM Rationale

Enterprise content and records management (ECRM) historically justified with intangible benefits:

Productivity savings“Knowledge workers will spend less time looking for documents”

Knowledge management“We will be more effective by capturing tacit information into explicit information for re use and distribution”into explicit information for re‐use and distribution

Compliance and risk avoidance“Reliable access to current documents versions prevents us from being non‐compliant and avoids incidents”


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Traditional ECRM Rationale (continued)

Difficulties with the traditional rationale:

Unable to be measuredUnable to be measured

Were the benefits ever realized?

Relied on identifying events that did not occur

Required acceptance of many assumptions


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New ECRM Rationale

Legal and regulatory compliance, for example:

HIPAA Sarbanes‐Oxley SEC Rule 17a‐4 (US)HIPAA, Sarbanes‐Oxley, SEC Rule 17a‐4 (US)

Data Protection Directive (European Commission)

Freedom of Information Act (UK, US, Australia, and others)

New mandates for digital patient records and security b h l t i h lthbreach alerts in healthcare


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New ECRM Rationale (continued)

Necessary for discoverable information and managing eDiscovery costse sco e y cos s

Catalysts included:Zubulake v. UBS Warburg

The Federal Rules of Civil Procedure‐ 2006 amendments

Platform and/or application consolidation


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Business Case Overview

A business case:

Justifies conducting some recommended course ofJustifies conducting some recommended course of action (e.g., program, project, decision)

Evaluates the cost, benefits, and risks associated with the recommended course of action

Outlines the commitments required by the organization to realize the benefitsorganization to realize the benefits

Purpose: obtain management commitment and approval to proceed


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Prerequisites for Your Business Case

Data collected during Information Gathering stage

ECRM strategyECRM strategy

ECRM program plan, including high level estimates and resource requirements

Support from the sponsor of the ECRM strategy effort


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Business Case Contents

Various formats, templates, and guidelines available

Key elements:Key elements:

Overview of current state, problem(s) to addressLeverage information gathering results

Recommended course of actionSummarized in ECRM strategy and program plan

Costs

Benefits


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Agenda


Cost Areas3.2



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Cost Areas

Hardware

SoftwareSoftware

Program execution

Training

Operations and maintenance


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Hardware

Hardware (e.g., servers, storage) required to support the ECRM strategy and program plane s a egy a d p og a p a

Only include additions to current costs

Cost estimates should include:

New hardware

Hardware upgrades (if required)

All environments (development, test, production, etc.)

Disaster recovery or co‐location facilities


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Software

Software required to support the ECRM strategy and program planp og a p a

Only include additions to current costs

Cost estimates should include new software and software upgrades (if required):

Server software for all environments

Cli t ftClient software

Utilities, development tools

Peripheral products and add‐ons


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SharePoint Software

Costs include more than just SharePointServer infrastructureSe e as uc u eSQL ServerMicrosoft SharePoint Server – Standard or Enterprise (Foundation is free)Microsoft SharePoint Standard and/or Enterprise client access licenses (CALs)FAST Search Server (if applicable)SharePoint Server 2010 for Internet Sites (for external users, if applicable)


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SharePoint Licensing

Refer to Microsoft sites:

SharePoint 2010: How to Buy –SharePoint 2010: How to Buy http://sharepoint.microsoft.com/en‐us/buy/Pages/defalt.aspxIncludes a SharePoint Editions comparison chart to help you understand differences in capabilities

Microsoft License Advisor –http://www.microsoft.com/licensing/mla/product.aspx


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SharePoint Hardware and Software

Estimates will vary, based on:Existing SharePoint environment, licensing, software assuranceSize and geographic distribution of user baseRelationship with MicrosoftHigh level architecture and whether the environment includes:Load balancing and fault toleranceLoad balancing and fault toleranceDisaster recoveryDedicated services (Indexing, Excel, Forms, Access, etc.)


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Program Execution

Labor costs to implement the ECRM solution and execute the strategye ecu e e s a egy

Includes staffing for each project in the program plan and managing the overall program

Internal

Third party

E ti t f th b i hi h l l dEstimates for the business case are high level and expressed in terms of full time equivalents (FTEs)

Individual projects will refine specific staffing needs


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Program Execution (continued)

Includes a variety of roles:Project managers, analystsojec a age s, a a ys sSubject matter expertsWindows, Active Directory, and SQL Server administratorsNetwork administratorsSharePoint administratorsArchitects.NET developers


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Estimating Internal Personnel Costs

Calculate based on:Number of full time equivalents per roleu be o u e equ a e s pe o eHours/week or percentage of time for each roleEstimated salary per role or standard internal rates

Be realistic about allocation of personnel; adjust program plan as needed

Do you really have 100% of a given person’s time?y y g pDoes the existing team have the needed skills?

Some needs are better met with external help, such as professional services


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Professional Services

Professional services best suited to address:Unavailability of internal teamU a a ab y o e a eaOne‐time peaks in staffing needsSpecialized skills or depth of knowledge

Calculate based on:Number of full time equivalents per roleTimeline for each roleTimeline for each roleEstimated rate per roleValidate rates or build in contingency


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Training

Includes training on new policies, processes, and systems resulting from executing the ECRM strategysys e s esu g o e ecu g e s a egy

Including training costs varies by organization

If included, calculate based on:

Number of knowledge workers / support staff to receive training

E ti t d b f t t i i hEstimated number of net new training hours

Average salary or standard internal rate

Cost of developing and delivering training, if not already accounted for in individual projects


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Operations and Maintenance

Hardware, software, and labor costs to sustain the ECRM program and new solution(s)Calculate based on:

Hardware / software maintenance and vendor supportNet new hardware and hardware refresh costsTechnical support personnel‐internal & outsourcedECRM program personnel who remain after completion of solution implementationNumber of years included in the business case


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Agenda



Cost Areas3.2


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Benefits

Quantitative benefits

Can be expressed in terms of dollar amountsCan be expressed in terms of dollar amounts

Tangible cost savings or increased revenue

Qualitative benefits

Positive outcomes that generally cannot be measured objectively

Intangible savings or cost avoidance


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Overall Benefits Guidelines

Express benefits in context of current state and typical scenarios specific to your organizationyp ca sce a os spec c o you o ga a o

Reference data collected during information gathering and interviews

For example:Are your support/maintenance costs covering multiple applications performing the same function?pp p g


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Quantitative Benefits Guidelines

Measure current state to serve as a baseline

Use cost salary and time estimates that areUse cost, salary, and time estimates that are applicable in your organization

Be conservative with estimates

Extrapolating estimates for thousands of employees can yield numbers too good to be true

B li ti d it h k l iBe realistic and sanity‐check conclusions

E.g., if you save 10,000 people one hour per day, will you really eliminate the jobs of 1200 people?


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Agenda



Cost Areas3.2


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Electronic Storage Cost Savings

Direct savings in electronic storage costs as a result of executing the ECRM strategye ecu g e s a egy

Strategy components with direct bearing on storage may include:

Governed SharePoint environment reduces duplicate and irrelevant content on shared drives

Adherence to information lifecycle model enforcesAdherence to information lifecycle model enforces appropriate and timely disposition of information


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Electronic Storage Cost Savings (continued)

Use actual values from your organization

Use industry averages as a last resortUse industry averages as a last resort

Cost calculations are based on:

Monthly cost of storage per gigabyte

Gigabytes of storage currently used

Estimated annual growth rate of electronic contentProjected for the years included in the business case


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Electronic Storage Cost Savings (continued)

Benefits calculations are based on :

Estimated percentage of content eliminated withEstimated percentage of content eliminated with initial program execution

Estimated percentage of content eliminated with ongoing ECRM programProjected for the years included in the business case


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Technology Consolidation Cost Savings

Direct cost savings by reducing number of technologiesec o og es

Primary strategy component with direct bearing on technology costs is the Technology Roadmap

Benefits calculations are based on:

Elimination of software, hardware, maintenance costscosts

Labor savings / reduction in full time equivalents and costs for support, development, upgrades


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eDiscovery Cost Savings

Direct cost savings to find, review, and assess the relevance of discoverable informatione e a ce o d sco e ab e o a o

Strategy components with direct bearing on eDiscovery costs:

Improving quality of content identification and therefore improving search results

Reducing the volume of content to reviewReducing the volume of content to review


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eDiscovery Case Study

Case study for a Fortune 50 petrochemical company from the early 1990s.o e ea y 990s

Key findings for legal discovery for 9 legal cases:

~70,000,000 pages reviewed

~11,000,000 pages responsive

An average of 50% of records reviewed were past th i t ti i dtheir retention period


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eDiscovery Case Study (continued)

~37,500,000 pages reviewed were past retention periodpe od

Cost to review at 20 cents per page was $7,500,000

Of the ~11,000,000 pages that were responsive, ~5,500,000 were past retention period

Cost to review at 80 cents per page wasCost to review at 80 cents per page was $4,400,000

Total unnecessary cost was nearly $12,000,000


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eDiscovery Cost Savings (continued)

Use actual values from your organization or if unavailable, use industry averagesCost calculations are based on:

Current volume of electronic content and estimated annual growth rateAverage percentage of total content identified as responsive to a discovery requestEstimated number of discovery requests per yearLegal costs – cost per hour or per page for content review


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eDiscovery Cost Savings (continued)

Benefits calculations are based on:

Reduction in the total volume of content to reviewReduction in the total volume of content to reviewEstimated percentage of content eliminated with initial program execution

Estimated percentage of content eliminated with ongoing ECRM program

Projected for the years included in the businessProjected for the years included in the business case


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Agenda


li i fi

Cost Areas3.2




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Qualitative vs. Quantitative Benefits

The ability to measure an outcome does not necessarily mean that it is a quantifiable benefitecessa y ea a s a qua ab e be e

Recall earlier definition of qualitative benefits:

Positive outcomes that generally cannot be measured objectivelyImplies that some outcomes can perhaps be measured but the business value is subjectivemeasured, but the business value is subjective

Example: time savings as a result of increased productivity


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Increased Productivity – Quantitative or Qualitative?

Time savings as a result of increased productivityConsidered to be qualitative in many organizations bbecause:The organization’s actual productivity metrics are not availableDisagreement on business value or financial benefit of the time savingsIt is unclear if or how benefits are realizedWill there be a reduction in full time equivalents?Will employees redirect time to other productive activities?


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Increased Productivity – Quantitative or Qualitative?(continued)

May be considered a quantitative benefit if you can:

Agree on business value of savingsAgree on business value of savings

Quantify your organization’s:Average time knowledge workers spend searching for, identifying, retrieving, or recreating lost content

Expected time savings resulting from the ECRM strategy executionstrategy execution

Industry averages for time savings may not be applicable to your enterprise


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Other potential productivity benefits:

IT team is more productive because required skills

Increased Productivity – Quantitative or Qualitative?(continued)

IT team is more productive because required skills can be focused on Microsoft and .NETOnly quantitative if wasted time or inefficiencies from maintaining multiple skills can be measured

Basic SharePoint site administration is delegated to end users, freeing up IT team for other activitiesend users, freeing up IT team for other activitiesOnly truly a benefit if labor is not simply transferred from IT to end users and instead there is a net time savings


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Qualitative Benefits

Do not translate to hard dollars, but still important

Are sometimes justification enough for ECRMAre sometimes justification enough for ECRM, depending on the organization’s priorities

E.g., what dollar amount can you assign to reputation or safety?

Are best communicated with actual or relatable scenarios meaningful to the organizationscenarios meaningful to the organization


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Sample Qualitative Benefits

Benefit As a result of…

C li i h l R i dCompliance with laws, regulations, and internal policies

Retention, management, and protection of content important to the business

Improved decision making ability

Convergence of unstructured, semi‐structured, and structured data in SharePoint


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structured data in SharePoint interface

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Sample Qualitative Benefits (continued)


Better prepared for • Documented content‐related e e p epa ed omergers, acquisitions, and divestitures

ocu e ed co e e a edprocesses

• Known content repositories• Access to key information

Improved customer service and satisfaction

Faster access to and identification of content


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Fewer lost documents, better content reuse

• Consistent classification• Collaborative SharePoint environment

Sample Qualitative Benefits (continued)


Increased user adoption of ECRM

• Familiarity and usability of Microsoft user interfaceadoption of ECRM

solutionMicrosoft user interface

• Desktop integration with Microsoft Office products

• Centralized access to contentKnowledge management and

• Adherence to information lifecycle model


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management and knowledge retention

lifecycle model• Consistent classification• Social computing features that connect people to people

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Summary

In this module we covered how to:

Quantify the technical administrative andQuantify the technical, administrative and productivity benefits of implementing SharePoint

Identify the level of effort and cost elements to execute your ECRM strategy and program plan

Identify the business case areas for justifying ECRM

I th t d l ill i t d D tiIn the next module, we will introduce Documenting Requirements.


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ssa03 business case - aiim · enterprise content and records management ... yexisting sharepoint...

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