Business Case ROI Workbook For IT Initiatives: On This Worksheet

Business Case ROI Workbook for IT Initiatives
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.
On This Worksheet
Workbook Table of Contents Key Features Model Components / Flowchart Instructions Disclaimer Terms of Use / Use Rights / End-User License Agreement (EULA) Support
Workbook Table of Contents

Worksheet Name Profile Title Organizational Profile Description 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. For Reference Only: provides key features, capabilities, benefits, and common vendors/products for the 18 sample initiative types included in the model. Estimates 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. Estimates IT labor TCO (as-is and to-be) and TCO savings enabled by the solution Estimates non-labor direct IT and business cost savings enabled by the solution. 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. Estimates how and how much the solution is expected to increase revenue. The benefit is the profit on the incremental revenue. Assessment of how the solution may impact a variety of business KPIs. In this model, these KPI changes are not converted into financial benefits. Summary of costs & benefits by type; Cash flow analysis; calculation of ROI, payback period, NPV, and IRR; and graphs
Initiatives Costs IT Labor
Initiative Descriptions Implementation Costs IT Labor TCO Savings
Direct Savings Direct Cost Savings
Productivity
User Productivity Benefits
Revenue KPIs ROI
Revenue Impact Key Performance Indicator Assessment (Optional) Financial Analysis
Key Features
Supports most types of enterprise-scale technology initiatives. Includes sample cost and benefit data for 18 common initiative types Comprehensive assessment of initiative costs and benefits Costs: hardware; software; IT labor, training, and services; and user labor and training Benefits: IT labor TCO savings, other direct cost savings, user productivity benefits, revenue growth, and non -financial key performance indicators Calculates 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 modifyi ng 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 prov ide additional feebased 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 conducte d 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.
139909905.xls.ms_office
User Guide
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Model Components / Flowchart
The chart below graphically presents the components of the model.
Instructions
- 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 appro priate 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.
User Guide
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Disclaimer
This tool is intended to help guide organizations in better understanding approximate/potential costs and benefits. Due to l imitations 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 negligen ce, 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.
Terms of Use / Use Rights / End-User License Agreement (EULA)

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 bus iness case report) as long as the dynamic (e.g. equations, macros) functionality of the workbook is not also incorporated or duplicated.
Support
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.
Copyright, 2006-2008, Hall Consulting & Research LLC, All Rights Reserved. www.hallcr.com
User Guide
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User Guide
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User Guide
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User Guide
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Organizational Profile
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.
Required Organization/Initiative Data Enter values or select the closest fit from the drop-down menus. These are the most important inputs in the model.
Industry - select the closest-matching from the drop-down Primary geographic location - select the closest-matching from the drop-down Primary Site Locations - select the closestmatching from the drop-down box
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. Average / Mixed
Summary Pre-view of Results
Per PC Costs (3-Yr) Benefits (3-Yr) Net Benefits NPV (Net Present Value) ROI (Return on Investment) - [Total Net Benefits / Total Costs] IRR (Internal Rate of Return) Payback Period Number of PCs
Organization Total ($000)
Industry is used to pre-select various default values (i.e. user type mix, labor costs)
$ $ $ $
1,743 5,339 3,596 2,782
$ $ $ $ 206% 124% 9 Months 5000
8,716 26,697 17,982 13,908
U.S.
Used to scale labor costs and estimate default work hours per year
Suburban / Mixed
Used to scale labor costs. Urban labor costs tend to be 15-20% higher than suburban locations.
Total Number of PCs in Scope Number of PC Users in Scope
5,000 5,000
This typically is approximately the same as the number of PCs. It is used to scale most costs and benefits.
% 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) 44% 56% 100%
# of PC Users 2,223 2,777 5,000

Costs & Benefits ($/PC)
Total Costs Vs Benefits (per PC)

$6,000 $5,000
$4,000
$3,000
$2,000
$5,339
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.
$1,000
$0
$1,743
Costs (3-Yr) Benefits (3-Yr)
Initiative Type - Select the project type from the drop-down box that most closely matches the initiative to be modeled
PC Hardware & Operating System Upgrades
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.
Cost Summary (per PC)

$2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $End-User Labor & Training
IT Labor, Services, & Training
Financial Information
Default values are provided based on inputs above. Defaults may be adequate for rapid/ballpark assessments, but otherwise should be reviewed/modified. $ 3,925 Organization Revenue ($ Millions)
Source of defaults is based on analysis of data from Fortune 500, Fortune Magazine and is industry-dependent (varies depending on industry selected above)
Costs ($ per PC)
$343 $268
$253
$879
Software
Hardware
Margin % of Revenue (Net profit margin of new revenue enabled by the initiative)
10.3%
3-Year Total
Default value is based on industry average. This margin rate is used to calculate the business value of incremental revenue enabled by the initiative
Benefit Summary (per PC)

$6,000 Benefits ($ per PC)
Discount Rate / Cost of Capital (WACC)

Used in Net Present Value calculations
10%
Revenue Growth $1,070
$1,616 $400 $2,253 3-Year Total
Duration of analysis (years) - Select from dropdown box.
$5,000
$4,000 $3,000
A 3-year life-expectancy is standard for many IT projects. Some major initiatives may be 5 years.

Other Direct Cost Savings IT Labor/Services TCO Savings
Labor Costs
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 25% compensation)* Standard Work Hours per Year 1,824
* Non-cash compensation, such as benefits and Social Security
$2,000
$1,000
$-
Average Ann'l Cash Comp-
Burden Rate
Burdened Burdened Burdened Annual Weekly Hourly Labor Labor rate
Costs & Benefits ($ per PC) One-Time Annual OnGoing 3-Year Total
IT Staff Labor Costs

Systems/Network Administrator/Engineer Software Developer/Engineer Help Desk / Technical Support $ $ $ 93,190 96,675 62,781 25% $116,488 25% $120,844 25% $ 78,477 $ $ $ 2,240 2,324 1,509 $ $ $ 63.86 66.25 43.02
Initiative Costs
Hardware Software IT Labor, Services, & Training End-User Labor & Training $ $ $ $ Total $ 606 150 213 273 1,242 $ $ $ $ $ 91 34 18 24 167 $ $ $ $ $ 879 253 268 343 1,743
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.
PC User Labor Costs

IWs (Information Workers) Data-entry or Structured Task Workers Average (weighted) $ $ $ 74,937 58,937 66,050 25% $ 93,672 25% $ 73,672 $ 82,563 $ $ $ 1,801 1,417 1,811 $ $ $ 51.36 40.39 45.26
Initiative Benefits
IT Labor/Services TCO Savings Other Direct Cost Savings User Productivity Benefits Revenue Growth $ $ $ $ Total $ 75 75 $ $ $ $ $ 751 108 539 357 1,755 $ $ $ $ $ 2,253 400 1,616 1,070 5,339
** Base compensation plus bonuses 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.
Profile
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Description of Sample Initiatives (for reference only)

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.
Infrastructure/Platform Technology Initiatives

Initiative Type PC HW/OS Upgrades Key Features, Capabilities, Benefits
Improved performance, reliability, security, manageability, Notebook, desktop, thin-client
Sample Vendors And Products

Microsoft Windows Vista, Linux, Red Hat, Novell Dell, HP, Apple, Toshiba, Lenovo, Fujitsu, Acer, Sony, Gateway Intel, AMD Microsoft Windows Server, Novell SUSE, Red hat, Unix, Solaris, IBM AIX, HPUX IBM, HP, Dell, Sun, Fujitsu, Bull
Virtualization, consolidation, clustering
Server HW/SW Upgrades
Infrastructure Mgmt / Networking
Storage
Security
Application Development / Architecture
Improved performance, reliability, manageability, security Multi-core, 64-bit, RISC/Itanium, x86 Web servers, application servers, DBMS servers, data Asset inventory/management, OS management, configuration Microsoft System Center Configuration Manager, MDOP, Active management, change management, systems management, 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 IBM DB2, Microsoft Exchange, Microsoft SQL Server, Oracle, SAP arrays, iSCSI, fibre channel Capacity management, performance analysis, storage Security planning, assessment, incident/breach management McAfee, Symantec, CA, Trend Micro Identity and access management, encryption, smartcards, Cisco Systems, NetIQ Firewalls, antivirus, anti-malware, anti-spyware, network VeriSign, IBM, Unisys 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 Oracle Fusion Middleware, Application Server Enterprise architecture (EA) BEA Systems WebLogic, JBoss (Red Hat), SAP NetWeaver Methods and software to ease compliance with regulations ITIL, COBIT, Six Sigma, CMM, ISO 17799/9000, PMBOK Maturity models (Microsofts Infrastructure Optimization Maturity Model) BearingPoint, Deloitte, Ernst & Young, IBM, KPMG, PricewaterhouseCoopers
Compliance, Governance, Risk
Outsourcing
Portfolio management, IT-business alignment, balanced Business continuity disaster planning / recovery IT governance, policies, internal audit, monitoring Outsource IT and business processes, applications, Accenture, Capgemini, Cognizant, CSC, EDS, IBM, HP, Siemens, infrastructure, or initiatives to reduce costs and improve results CompuCom, Infosys, Keane, Perot Systems, Satyam, TCS, Wipro, Getronics, Unisys Infrastructure management: helpdesk, on-site support, AT&T, IBM, MCI-Digex, Qwest, Rackspace, Verio desktop data center services BPO management, business process outsourcing Offshore services Application outsourcing, web hosting Wireless e-mail, mobile access to line-of-business applications, 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, Equant, AT&T, MCI, BT, Sprint, Verizon
Wireless/ Mobility
Initiatives
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Description of Sample Initiatives (for reference only)

Business Technology Initiatives
Initiative Type Office Productivity Software Key Features, Capabilities, Benefits
Word processing, spreadsheets, personal databases,
Sample Vendors And Products

Microsoft Office 2007 OpenOffice.org Sun StarOffice Google Apps Microsoft SharePoint, Exchange, Live Meeting IBM Domino / Lotus Notes Oracle Collaboration Suite Sun Java Enterprise System Novell GroupWise WebEx Communications Microsoft SharePoint EMC Documentum, FileNet, Hummingbird, IBM Content Management, Interwoven, Mobius Management Systems, Open Text, Oracle Content Services, Stellent, and Vignette
Messaging/ Collaboration
E-mail, calendaring/scheduling, task management, unified Real-time collaboration, presence, instant messaging, web Social computing, blogs, wikis Team workspaces, project management, discussion threads,
Document management, web content management, Knowledge management, information management
Content Management
Intranets, Extranets, Portals Web sites for external business information dissemination, Web storefronts, shopping cart management, taxation, B2B, B2C, AJAX, mashups Process modeling, monitoring and management Workflow, business rules, automation, electronic forms
E-commerce / Internet
Microsoft IIS, Commerce Server ATG, Escalate Retail, Comergent, Oracle, SAP Microsoft BizTalk Server, SharePoint Server Captaris Workflow, EMC Documentum, Global 360, IBM FileNet, Open Text Pegasystems, Oracle, SAP, TIBCO, webMethods, BEA Systems, SeeBeyond, GXS, Sterling Commerce Microsoft SQL Server, PerformancePoint Server Teradata, IBM, Oracle, MySQL, Ingres, PostgreSQL, Sybase Oracle Hyperion, Business Objects, Informatica, Cognos, Information Builders, MicroStrategy, SAS Various products/vendors by business function and industry
Business Process Mgmt / BAM (business activity monitoring) Integration
Business Intelligence / Data Mgmt Business Applications (Vertical, LOB) CRM
EAI (enterprise application integration) Database management systems (DBMS), data warehousing, Master data management, data quality, metadata Financial planning, corporate performance management, reporting, analytics, dashboards, scorecards, enterprise search, Wide variety of specialized software that helps organizations streamline business processes and improve results Customer Relationship Management Sales force automation, marketing campaign management, Hosted CRM Enterprise resource planning: supply chain management,
ERP / Supply Chain
Oracle Siebel, PeopleSoft Onyx, Sage, mySAP CRM, Salesforce.com, Amdocs Microsoft Dynamics CRM SAP Oracle Fusion (E-Business Suite, J.D. Edwards, PeopleSoft)
Lawson, Intentia, Infor, Sage, Ariba, Microsoft Dynamics
Initiatives
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Implementation Costs
This worksheet estimates all costs needed to implement the initiative, including hardware, software, IT labor/services, and user labor costs.
Hardware
Unit Label Unit Quantity 2,500 2,500 $ $ $ $ $ Servers Terabytes 1.7 0.5 $ $ $ $ Cost per Unit Annual One-Time* Recurring* 1,000 200 200 200 $ $ $ $ 150 30 30 30 450,000 2,250 1,500 4,500 454,500 $ $ $ $ $ $ $ $ $ $ $ 3-Year Total 3,625,000 725,000 4,350,000 36,250 7,250 43,500 4,393,500 Comments
Client Hardware
PCs PC Upgrades Mobile Devices Other Sub Total PCs PCs
3,000,000 $ 15,000 10,000 $ $ $ $ 30,000 $ 3,030,000 $
Server Hardware
Servers Storage (including backups, redundancy, power supplies, etc.) Network Equipment Other Sub Total Total
Software
* 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.
The software license is typically a one-time cost. Software maintenance (Software Assurance) is an optional annual recurring cost
License Quantity
One-Time (License) $ $ $ $ $ 300 100 100 10 $ $ $ $
Annual Recurring (Maintenance) 69 23 23 2 164,450 460 1,840 2,300 7,667 172,117 $ $ $ $ $ $ $ $ $ $ $ $ $
3-Year Total 760,500 422,500 25,350 1,208,350 5,633 22,533 28,167 56,333 1,264,683
Comments
Client Software
Application A Application B Desktop Operating System Client Access Licenses (CALs) Other Sub Total 1,500 2,500 1,500
715,000 $ 2,000 8,000 10,000 $ $ $ $
Server Software
Server Operating System Database Server Application Utilities Other Sub Total Total $ $ 33,333 $ 748,333 $ 1.7 2 2 $ $ $

One-time Implementation Labor/Services
Time Time Unit Planning, Evaluation and Project Management Person-weeks Engineering Development Lab Testing Pilot Testing Rollout Performance Tuning Documentation Implementation User Support Consultants External Services Other Total Person-weeks Person-weeks Person-weeks Person-weeks Person-weeks Person-weeks Person-weeks Person-weeks Person-weeks Person-weeks Person-weeks $ One-Time 30.0 18.0 33.6 7.2 12.0 36.0 4.8 4.8 4.8 48.0 9.6 12.0 752,689 $ Annual Recurring Cost per Time Unit $ $ $ $ $ $ $ $ $ $ $ $ 2,240 2,240 2,240 2,240 2,240 2,240 2,240 2,240 2,240 6,720 6,720 2,240 $ $ $ $ $ $ $ $ $ $ $ $ 3-Year Total 67,204 40,323 75,269 16,129 26,882 80,645 10,753 10,753 10,753 322,581 64,516 26,882 752,689 Comments
*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.
Costs
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Annual On-Going Labor/Services This worksheet estimates all costs needed to implement the initiative, including hardware, software, IT labor/services,
Unit* Maintenance Support Customization Development Upgrades Performance Tuning External Services Bandwidth Other Total $ $ Full Time Equivalents FTEs FTEs FTEs FTEs FTEs FTEs Unit Quantity Annual One-Time Recurring 0.20 0.20 0.10 0.20 0.04 0.04 90,860 Cost per Unit $ $ $ $ $ $ $ 116,488 116,488 116,488 116,488 116,488 116,488 174,731 $ $ $ $ $ $ $ $ $ 3-Year Total 69,893 69,893 34,946 69,893 13,979 13,979 272,581 Comments
*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

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) Additional service desk time (hours) Total $ 40%
1.5 25 1250.0 53,781
IT Training
Formal (Classroom) Training Staff trained with this type of training Hours of training per staff member Labor Cost per Hour Training time (labor cost) Class and Additional Fee Cost per trainee Cost per Employee Trained Total Cost $ $ $ $ $ 11.2 32 64 2,044 1,500 3,544 39,689 $ $ $ $ $ Internal Training 56.0 16 64 1,022 300 1,322 74,022 $ $ $ $ $ Independent Learning (SelfStudy) 56.0 40 64 2,555 75 2,630 147,255 $ 3-Year Total Comments
260,966
End-User Labor & Training

End-User Labor
% of Users Impacted Solution planning & testing Downtime (Unable to be productive); e.g. during implementation of the solution Resolution of issues related to the new solution System configuration Data entry (not previously required) Other Other Total 2% 2% 6% 20% 4% 0% 0% # Of Users 100 100 300 1000 200 0 0 $ Hours per User Impacted Annual OnOne-Time Going 10 1 5 4 0 0 0 298,748 $ $ $ 2 $ 0 $ 10 $ 0 $ 0 $ 117,689 $ 3-Year Total 45,265 4,526 149,374 181,059 271,589 651,814 Comments
Costs
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End-User Training This worksheet estimates all costs needed to implement the initiative, including hardware, software, IT labor/services,
External Classroom Training % of Employees trained Employees trained Hours of training per employee Labor Cost per Hour Training time (labor cost) Class and Additional Fee Cost per trainee Cost per Employee Trained Total Cost $ $ $ $ $ 10% 500 4 45 181 100 281 140,530 $ $ $ $ $ Internal Training 20% 1,000 3 45 136 60 196 195,795 $ $ $ $ $ Independent Learning (SelfStudy) 2,000 8 45 362 3 365 729,238 $ Total Comments
40%
1,065,562 Per PC
Summary
One Time
Organization Total Annual Recurring $ $ $ $ $ $ $ $ 450,000 4,500 454,500 164,450 7,667 172,117 90,860 3-Year Total $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 4,350,000 $ 43,500 $ 4,393,500 $ 1,208,350 $ 56,333 $ 1,264,683 $ 752,689 272,581 53,781 260,966 1,340,016 651,814 1,065,562 1,717,376 8,715,576 $ $ $ $ $ $ $ $ $ One Time 600 6 606 143 7 150 151 11 52 213 60 213 273 1,242 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
Annual Recurring 90 1 91 33 2 34 18 18 24 24 167 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
3-Year Total 870 9 879 242 11 253 151 55 11 52 268 130 213 343 1,743
Hardware
Client Hardware Server Hardware Sub-Total $ $ $ $ $ $ 3,000,000 30,000 3,030,000 715,000 33,333 748,333 752,689 53,781 260,966 1,067,435 298,748 1,065,562 1,364,310 6,210,079
Software
Client Software Server Software Sub-Total

$ One-time Implementation Labor/Services $ Annual On-Going Labor/Services $ Incremental Help Desk Calls IT Training $ Sub-Total $
$ $ $ $
90,860 117,689 117,689 835,166

End-User Labor End-User Training Sub-Total Total $ $ $ $
Costs
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Annual including hardware, software, IT labor/services, Annual This worksheet estimates all costs needed to implement the initiative, Hardware Software IT Labor, Services, & Training End-User Labor & Training Total $ $ $ $ $ One Time 3,030,000 748,333 1,067,435 1,364,310 6,210,079 $ $ $ $ $ Recurring 454,500 172,117 90,860 117,689 835,166 3-Year Total $ 4,393,500 $ 1,264,683 $ 1,340,016 $ 1,717,376 $ 8,715,576 $ $ $ $ $ One Time 606 150 213 273 1,242 Recurring $ $ $ $ $ 91 34 18 24 167 $ $ $ $ $ 3-Year Total 879 253 268 343 1,743
Total Implementation Costs

Thousands $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000
$3,000
Total Implementation Costs (Per PC)

$2,000 $1,800 Costs ($ per PC) $1,600 $1,400
$1,200
$1,717 $1,340 $1,265
End-User Labor & Training IT Labor, Services, & Training Software
$343 $268 $253
End-User Labor & Training IT Labor, Services, & Training Software
Total Costs
$1,000 $800 $600
$2,000 $1,000 $0
$4,394 Hardware
$400 $200 $0
$879 Hardware
3-Year Total
3-Year Total
Total Implementation Costs

Thousands $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 3-Year Total $4,350
$1,066
End-User Training
End-User Labor

$2,000
$1,800 End-User Training
Total Costs ($ per PC)
$1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0
$213 $130 $52 $11 $55 $151 $11 $242 $9
End-User Labor
$652 $261 $54 $273 $753 $56 $1,208 $44
Total Costs
IT Training Incremental Help Desk Calls Annual On-Going Labor/Services One-time Implementation Labor/Services Server Software
IT Training Incremental Help Desk Calls Annual On-Going Labor/Services One-time Implementation Labor/Services Server Software Client Software Server Hardware Client Hardware
$870
3-Year Total
Costs
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IT Labor TCO and TCO Savings

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 (summari zed at the bottom) is any annual on -going TCO savings enabled by the initiative.
IT Labor TCO by General Function

Total IT Employees (IT Staff) FTEs IT Employees as % of Total PC Users Ratio of PC Users to IT Staff 157.8 3.2% 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
% of Total* PC Management Services Help Desk (Tech Support) Server & Network Mgmt Services Application Development Administration & Other Total IT FTEs
* include management, except senior management; which is included in "Administration" 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
FTEs* 27 25 33 47 25 158
Average Burdened As-Is Cost** TCO / PC $ 116,488 $ 78,477 $ $ $ 625 396 772
Total IT Labor TCO / Year $ $ $ $ $ $ 3,124,482 1,981,118 3,859,654 5,719,992 2,797,190 17,482,436
Comments
17% 16% 21% 30% 16% 100%
$ 116,488 $ 120,844 $ 110,803
$ 1,144 $ 559
$ 3,496
** 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 % of Total FTE's % Reduction As-Is TCO To-Be TCO Savings Comments
PC Management Services
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 Total ($ per PC) Total (% of Total TCO)
PC hardware and software planning & evaluation Design, test, certify, and update images User adds, moves and changes. 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
5% 7% 9% 16% 11% 9% 4% 2% 5% 13% 19% 100%
1.4 1.9 2.4 4.2 2.8 2.4 1.1 0.5 1.3 3.5 5.2 27 $
18.0% $ 36.0% $ 45.0% $ 36.0% $ 63.0% $ 18.0% $ 27.0% $ 63.0% $ 36.0% $ 36.0% $ 36.0% $ 232.87 $ 37.3%
33 44 56 99 66 56 25 12 31 82 120 625
$ $ $ $ $ $ $ $ $ $ $ $
27 28 31 63 24 46 18 5 20 53 77 392
$ $ $ $ $ $ $ $ $ $ $
5.92 15.75 25.31 35.52
As-Is TCO To-Be TCO
PC Management TCO
TCO ($/PC) $0 $50 $100 $150
PC HW / SW Evaluation
41.44 10.12 6.75 7.87 11.25 29.60 43.33
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
$ 232.87
IT Labor
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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 %
Help Desk (Tech Support)

Proprietary Applications Standard Desktop Software Operating Systems Hardware (except printers) Data Comm./Network Password Resets Databases Service Requests Voice Communications Printers Others Total ($ per PC) Total (% of Total TCO)
Custom developed application support Commercial off-the-shelf applications Operating system-related issues Hardware troubleshooting/repair Networking Reset user passwords Database troubleshooting Forward requests for other services Telecommunications Printer troubleshooting/repair
30% 15% 15% 12% 10% 5% 5% 4% 3% 2% 0% 100%
7.5 3.8 3.7 3.1 2.5 1.2 1.1 1.1 0.7 0.6 25 $
40.0% $ 40.0% $ 40.0% $ 30.0% $ 30.0% $ 70.0% $ 20.0% $ 20.0% $ 20.0% $ 30.0% $ 30.0% $ 146 $ 36.8%
118 59 58 49 39 19 18 17 10 10 396
$ $ $ $ $ $ $ $ $ $ $ $
71 35 35 34 27 6 14 13 8 7 251
$ $ $ $ $ $ $ $ $ $
47.04 23.66 23.14 14.68 11.57 13.65 3.60 3.31 2.07 2.93
As-Is TCO
Help Desk TCO

TCO ($/PC) $0 $50 $100 $150
$ $ 145.64
Proprietary Applications Standard Desktop Software Operating Systems Hardware (except printers) Data Comm./Network Password Resets Databases Service Requests Voice Communications Printers Others
Server & Network Mgmt Services

Network management Hardware management Operating system support Server application mgmt Security Storage management Database Mgmt & Admin Other Total ($ per PC) Total (% of Total TCO)
Manage network communication infrastructure Deployment, configuration, administration, support Deployment, configuration, administration, support Deployment, configuration, administration, support Planning, assessment, patching, issue remediation Storage capacity planning and management Index management, replication, log administration, data recovery, optimization
As-Is TCO
12% 11% 16% 24% 14% 11% 12% 0% 100% 4.0 3.6 5.3 8.0 4.7 3.6 4.0 33 15.0% $ 15.0% $ 30.0% $ 30.0% $ 25.0% $ 15.0% $ 15.0% $ 15.0% $ 173 $ 22.4% 93 85 124 185 110 85 93 774 $ $ $ $ $ $ $ $ $ 79 72 86 130 83 72 79 601 $ $ $ $ $ $ $ 13.89 12.74
Server & Network Mgmt TCO

$0 $50 TCO ($/PC) $100 $150 $200
To-Be TCO
Network management
37.05 55.58 27.57 12.74 13.89
Hardware management
Operating system support
Server application mgmt Security Storage management Database Mgmt & Admin Other
$ $ 173.46
As-Is TCO To-Be TCO
Application Development TCO

TCO ($/PC)
$0 $200 $400 $600
Application Development
Design Development Testing Support Other Total ($ per PC) Total (% of Total TCO)
Needs assessment, conceptual design Detailed engineering, development Test and pilot Advanced support and troubleshooting (escalated from help desk)
6% 42% 22% 30% 0% 100%
2.8 19.9 10.4 14.2 47
9.0% $ 12.0% $ 9.0% $ 12.0% $
69 480 252 343
$ $ $ $ $ $
62 423 229 302 1,016
$ $ $ $
6.18 57.66 22.65 41.18
Design
Development
Testing
Support
9.0% $ 128 $ 1,144 11.2%
$ $ 127.67
Other
Administration & Other

Planning Purchasing Finance Training Senior management Other Total ($ per PC) Total (% of Total TCO)
Needs assessment, standards development, evaluation, business case development, project planning Purchasing, procurement, and vendor management Budgeting and chargeback tasks IT and end-user training Senior IT management overhead Administration and other
As-Is TCO To-Be TCO

19% 14% 18% 16% 28% 5% 100% 4.8 3.5 4.5 4.0 7.1 1.3 25 $ 7.0% $ 21.0% $ 28.0% $ 7.0% $ 7.0% $ 7.0% $ 71 $ 12.7% 106 78 101 90 157 28 559 $ $ $ $ $ $ $ 99 62 73 83 146 26 488 $ $ $ $ $ $ $ 7.44 16.45 28.20 6.27 10.96 1.96 71.27
Administration & Other TCO

$0 Planning Purchasing Finance Training $50 TCO ($/PC) $100 $150 $200
Senior management Other
Summary
IT Labor
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This worksheet estimates IT Labor TCO by estimating/allocating labor effort across common IT staff (as a % of total by category). The number of FTEs (full-time equivalents) the calculated. Then the likely % IT Labor TCOactivities / PC / Year Full-Time Equivalents As-Is To-Be Savings To-Be TCO TCO Savings % As-Is FTEs 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
IT Labor TCO Comparison

$4,000
$3,500 $559 TCO per PC per Year
IT Labor Comparison
As-Is TCO To-Be TCO As-Is FTEs
47.3
To-Be FTEs
50
45
$1,400
$1,200
TCO per PC per Year
$2,500 $2,000
$1,144
$488
$1,000
33.2 26.8
25.2 27.1
42.6
40
35 25.2
$800 $600
$400 $200
30
25
$1,016 $1,500
$1,000
$774 $396 $601

$251
22.4
20
15
19.5

18.5
10
5
$500
$625 Key SoftGrid Benefits
$625 $392 $PC Management Services
$396 $251 Help Desk (Tech Support)
$774 $601 Server & Network Mgmt Services
$1,144 $1,016 Application Development
$559 $488 0 Administration & Other
$As-Is TCO
$392
To-Be TCO
IT Labor
FTEs (Full Time Equivalents)
$3,000
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Direct Cost Savings

This workbook estimates various direct IT and business cost savings enabled by the solution.
Direct Cost Savings - IT

Reduce/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. One-Time Annual Costs % of PCs Costs Avoided Avoided 3-Year Total Comments Application A Application B Imaging tools Encryption tools OS virtualization Security Utilities
Total
25% $ 15% $ 50% $ 30% 20% 100% $
100 200 10
300,000
$ $ $ $ $ $ $
20 40 20 20 20 205,000
$ $ $ $ $ $ $
200,000 240,000 25,000 90,000 60,000 300,000 915,000
Reduce/Avoid Software Costs - Servers

Capabilities/features included in the proposed solution that can reduce the need for current or expected costs of 3rd party software. Approximate Total Number of Existing Servers
100 One-Time Annual Costs Costs Avoided Avoided 6 6 4 4 2 $ $ $ $ $ $ 6,000 200 200 200 500 39,800 $ $ $ $ $ $ 900 30 30 30 75 5,970
Quantity Business Applications Back-Up / Recovery OS virtualization Security Utilities Other

Total
3-Year Total $ $ $ $ $ $ 52,200 1,740 1,160 1,160 1,450 57,710
Comments
Reduce/Avoid Hardware Costs

Quantity Server Consolidation - avoid purchasing new servers Virtualization Peripherals Replacement Other
Total
One-Time Annual Costs Costs Avoided Avoided 4 2 $ $ $ $ $ $ 6,000 6,000 36,000 $ $ $ $ $ $ 900 900 5,400
3-Year Total $ $ $ $ $ $ 34,800 17,400 52,200
Comments
Reduce/Avoid IT Service Costs

Quantity Consulting Services (Hours) Outsourcing (Hours) Other Other Other
Total
One-Time Annual Costs Costs Avoided Avoided $ $ $ $ $ $ $ $ $ $ $ $ 150 150 24,000
3-Year Total $ $ $ $ $ $ 36,000 36,000 72,000
Comments
80 80 -
Direct Savings
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Direct Cost Savings

Reduce Power/Electricity Usage Costs
PCs Average Watts per PC/Server Average Watts per monitor (CRT/LCD mix) Total kW-hours per day Electricity cost per kW-hour Electricity cost per PC/Server per year Number of PCs/Servers % 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 Total Benefit per PC/Server Total 140 60 200 3.36 0.09 110 5,000 50% 14 100% $ $ 32 160,965 $ $ Servers 800 10 810 19.20 0.09 631 100 100% 24 100% 631 63,072 $ 224,037 $ 672,111 Ann'l Total 3-Year Total Comments
$ $
$ $
Other IT Cost Avoidance/Reductions

Quantity Reduce Bandwidth Costs Reduce Heating, Cooling Costs Reduce Other Facilities Costs Other
Total
One-Time Annual Costs Costs Avoided Avoided $ $ $ $ $ $ $ $ $ $ 150 1,200 3,900
3-Year Total $ $ $ $ $ 4,500 7,200 11,700
Comments
10 2 10 10
Direct Cost Savings - Business

Reduce/Avoid Travel Expenses
# 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 Trips avoided Cost of average trip $ Total Annual Benefit $ 3-Year Total $ 445 5 3% 67 1,100 73,355 220,066 Comments
Reduce Business Services

Quantity Consulting Services (Hours) Outsourcing Other Other
Total
One-Time Annual Costs Costs Avoided Avoided $ $ $ $ $ $ $ $ $ $ 150 150 -
3-Year Total $ $ $ $ $ -
Comments
Reduce Other Business Expenses

Quantity Supply costs Raw Material Costs Inventory carrying costs Operations Other Other Other Other
Total
One-Time Annual Costs Costs Avoided Avoided $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 70 90 30 60 60 -
3-Year Total $ $ $ $ $ $ $ $ $ -
Comments
Direct Savings
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Direct Cost Savings

Summary
Organization Total Per PC One Time 60 8 7 75 Annual Recurring 3-Year Total $ 41 $ 183 $ 1 $ 12 $ 1 $ 10 $ 5 $ 14 $ 45 $ 134 $ 1 $ 2 $ 94 $ 356 Annual Recurring 205,000 5,970 5,400 24,000 224,037 3,900 468,307
IT Savings
Software - Clients Software - Servers Hardware IT Services Power/Electricity Usage Other IT Costs Total $ $ $ $ $ $
One Time 300,000 39,800 36,000 375,800
$ $ $ $ $ $ $
3-Year Total $ 915,000 $ 57,710 $ 52,200 $ 72,000 $ 672,111 $ 11,700 $ 1,780,721
$ $ $ $ $ $ $
Business Savings
Travel Expenses Business Services Other Business Expenses Total Total $ $ $ $ 375,800 $ $ $ $ $ 73,355 73,355 541,662 $ $ $ $ $ 220,066 220,066 2,000,787 $ $ $ $ $ 75 $ $ $ $ $ 15 15 108 $ $ $ $ $ 44 44 400
Direct Cost Savings

$450 $400 Benefit ($ per PC) $350 $300 $250 $200 $150 $100 $50 $3-Year Total $183
Software - Servers
$$44 $2
Other Business Expenses Business Services Travel Expenses Other IT Costs
$134
$14 $10 $12
Power/Electricity Usage IT Services Hardware
Software - Clients
Direct Savings
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User Productivity Benefits Assessment

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

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.
Time Allocation Task Info Wrkr Wrkr
Hrs / Wk Info Task Wrkr Wrkr 11.2 7.4 1.4 15.1 35.1 10.5 1.1 0.7 22.8 35.1
Comments
Activity Category Totals

Individual Computing Collaborative Computing PC Systems Management Non-Computing-Related Activities Total (Must sum to 100%) 32% 21% 4% 43% 100% 30% 3% 2% 65% 100%
Activity Sub-Categories
Individual Computing
Document Creation Data & Information Access/Analysis Email, Calendar, Contact, & Task Mgmt LOB Application-Related Activities Other Total (Must sum to 100%) 25% 10% 24% 31% 10% 100% 60% 15% 16% 9% 100% 35% 25% 17% 13% 6% 4% 100% 28% 5% 8% 52% 7% 100% 47% 28% 15% 10% 100% 40% 25% 6% 15% 8% 6% 100% 2.8 1.1 2.7 3.5 1.1 11.2 4.4 1.1 1.2 0.7 7.4 0.5 0.4 0.2 0.2 0.1 0.1 1.4 15.1 35.1 2.9 0.5 0.8 5.5 0.7 10.5 0.5 0.3 0.2 0.1 1.1 0.3 0.2 0.0 0.1 0.1 0.0 0.7 22.8 35.1
Collaborative Computing
Document Collaboration Workflow (routing) Coordination / Project Mgmt Other Total (Must sum to 100%)
PC Systems Management
Support, Self-Help, & Learning Performance Mobility & Remote Connectivity Security & Privacy System UI Navigation Availability & Reliability Total (Must sum to 100%) Non-Computing-Related Activities Total
Time by Business Activity Summary

40.0
35.0 30.0 Hours per Week
Time by Business Activity Individual Computing

12.0 10.0 Hours per Week 8.0 6.0 2.7 4.0 2.0 1.1 2.8
Info Wrkr
Other 1.1 3.5 5.5 0.7
Non-ComputingRelated Activities 15.1 22.8

1.4 7.4 0.7 1.1
LOB ApplicationRelated Activities Email, Calendar, Contact, & Task Mgmt Data & Information Access/Analysis Document Creation
25.0
PC Systems Management Collaborative Computing Individual Computing
20.0 15.0 10.0 5.0

0.0
0.8 0.5 2.9

Task Wrkr
11.2
Info Wrkr
10.5 Task Wrkr
0.0
Productivity
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User Productivity Benefits Assessment Time by Business Activity Collaborative Computing

8.0 7.0
6.0 Hours per Week 5.0 4.0
Time by Business Activity PC Systems Management

1.6 1.4
1.2
0.7
1.2
Other
1.1
Coordination / Project Mgmt Workflow (routing)
Hours per Week
0.1 0.1 0.2 0.2 0.4

0.0 0.1 0.1 0.0 0.2
Availability & Reliability System UI Navigation

Security & Privacy Mobility & Remote Connectivity
1.0 0.8
3.0 2.0 1.0 0.0

Info Wrkr
0.6 0.4
4.4 0.1 0.2 0.3 0.5

Task Wrkr
Performance Support, Self-Help, & Learning
Document Collaboration
0.2 0.0
0.5
0.3
Info Wrkr Task Wrkr
Allocation of Time Across Detailed Activities and Efficiency Improvements

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 pe r 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.
Activity
Time % Task Info Wrkr Wrkr 5% 20% 10% 10% 55% 100% 40% 20% 20% 10% 10% 100% 75% 15% 10% 100% 5% 15% 5% 10% 65% 100% 45% 15% 20% 10% 10% 100% 75% 15% 10% 100%
Hours / Week Info Task Wrkr Wrkr 0.14 0.56 0.28 0.28 1.54 2.81 0.45 0.22 0.22 0.11 0.11 1.12 2.02 0.40 0.27 2.69 0.15 0.44 0.15 0.29 1.92 2.95 0.24 0.08 0.11 0.05 0.05 0.53 0.63 0.13 0.08 0.84
Efficiency Improvement 1% 4% 3% 3% 0% 1% 3% 9% 8% 9% 9% 6% 0% 0% 0% 0%
Time Saved Info Task Wrkr Wrkr 0.00 0.02 0.01 0.01 0.00 0.04 0.01 0.02 0.02 0.01 0.01 0.07 0.00 0.00 0.00 0.00 0.00 0.02 0.00 0.01 0.01 0.04 0.01 0.01 0.01 0.00 0.00 0.03 0.00 0.00 0.00 0.00
Comments
Document Creation
Document general layout/set-up Formatting documents Searching for functionality "how do I" Creating graphics Typing, thinking Total (Time % must sum to 100%)
Data & Information Access/Analysis

Internet browsing/viewing Searching for documents & folders Collecting/combining information Finding/accessing/combining data Data analysis & reporting Total (Time % must sum to 100%)
Email, Calendar, Contact, & Task Mgmt

Processing email Managing calendar, contacts, and tasks Note-taking, management Total (Time % must sum to 100%)
LOB Application-Related Activities

Data entry into LOB (line-of-business) applications Using LOB applications (or the predecessor activity) Total (Time % must sum to 100%) 20% 80% 100% 4% 96% 0% 100% 40% 60% 100% 4% 96% 0% 100% 0.70 2.78 3.48 0.04 1.08 0.00 1.12 11.22 2.19 3.28 5.47 0.03 0.71 0.00 0.74 10.52 10% 5% 3% 0% 0% 0% 0% 2% 0.07 0.14 0.07 0.00 0.00 0.00 0.00 0.18 0.22 0.16 0.22 0.00 0.00 0.00 0.00 0.29
Other
Development time (macros, VBA, Access) Reading, thinking, etc. Other Total (Time % must sum to 100%)
Total
Productivity
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Activity Time % Task Info Wrkr Wrkr Hours / Week Info Task Wrkr Wrkr Efficiency Improvement Time Saved Info Task Wrkr Wrkr Comments
Document Collaboration
Document collaboration (collaborative authoring, sharing, reviewing, debating, mark-up, change consolidation) Meetings (document-collaboration-focused) Document management Total (Time % must sum to 100%) 60% 35% 5% 100% 60% 35% 5% 100% 2.65 1.55 0.22 4.42 0.30 0.17 0.02 0.49 0% 0% 0% 0% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Workflow (routing)
Workflow activities paper-based (review, approval, routing, signature collection) Workflow activities - electronic Total (Time % must sum to 100%) 50% 50% 100% 50% 50% 100% 0.55 0.55 1.10 0.15 0.15 0.29 0% 0% 0% 0.00 0.00 0.00 0.00 0.00 0.00
Coordination / Project Mgmt

Document-creation-intensive project coordination/management (issue tracking, task management, document status) Coordination of other business activities Total (Time % must sum to 100%) 70% 30% 100% 70% 30% 100% 0.83 0.35 1.18 0.11 0.05 0.16 0% 0% 0% 0.00 0.00 0.00 0.00 0.00 0.00
Other
Reporting - Disseminating and managing documentation/reports Social networking (connecting people, sharing reusable knowledge) Other Total (Time % must sum to 100%) 70% 30% 0% 100% 90% 10% 0% 100% 0.46 0.20 0.00 0.66 7.37 0.09 0.01 0.00 0.11 1.05 0% 0% 0% 0% 0% Efficiency Improvement 15% 15% 23% 25% 6% 14% 50% 50% 20% 38% 0.00 0.00 0.00 0.00
Total
Activity
Time % Task Info Wrkr Wrkr 20% 15% 5% 20% 40% 100% 30% 30% 40% 100% 20% 15% 5% 20% 40% 100% 30% 30% 40% 100%
Mins / Week Info Task Wrkr Wrkr 5.9 4.4 1.5 5.9 11.8 29.46 6.3 6.3 8.4 21.05 3.4 2.5 0.8 3.4 6.7 16.84 3.2 3.2 4.2 10.52
0.00 0.00 0.00 0.00 0.00 0.00 Time Saved (Mins) Info Task Wrkr Wrkr 0.9 0.7 0.3 1.5 0.7 4.06 3.2 3.2 1.7 8.00 0.5 0.4 0.2 0.8 0.4 2.32 1.6 1.6 0.8 4.00
Comments
Support, Self-Help, & Learning

Support time (helpdesk) Unproductive resolution lag time (downtime) PC upgrade; OS re-install Install SW, patches, peripherals, drivers Self-help - system "how-to" questions; Peer support Total (Time % must sum to 100%)
Performance
Processor/HDD response time Network/Server response time PC start-up, shut-down, resume Total (Time % must sum to 100%)
Mobility & Remote Connectivity

Remote & wireless connectivity, Network issues Lost productivity due to dead laptop battery Laptop shut-down, start-up, wake/resume Time managing/accessing files for off-line use Total (Time % must sum to 100%) 20% 15% 45% 20% 100% 90% 5% 5% 100% 75% 25% 100% 70% 30% 100% 20% 15% 45% 20% 100% 90% 5% 5% 100% 75% 25% 100% 70% 30% 100% 2.9 2.1 6.4 2.9 14.31 9.8 0.5 0.5 10.94 3.8 1.3 5.05 2.4 1.0 3.37 1.40 15.08 35.1 0.5 0.4 1.1 0.5 2.53 5.7 0.3 0.3 6.31 2.5 0.8 3.37 1.8 0.8 2.53 0.70 22.80 35.1 10% 12% 12% 9% 11% 18% 25% 25% 18% 18% 18% 18% 35% 35% 35% 21% 0% 1% 0.3 0.3 0.8 0.3 1.57 1.7 0.1 0.1 1.99 0.7 0.2 0.88 0.8 0.4 1.18 0.29 0.00 0.5 0.1 0.0 0.1 0.0 0.28 1.0 0.1 0.1 1.15 0.4 0.1 0.59 0.6 0.3 0.88 0.15 0.00 0.4
Security & Privacy

Security pre-cautions Virus, adware and other security issues Intrusion, unauthorized use, data loss Total (Time % must sum to 100%)
System UI Navigation
User Interface navigation Change system settings, preferences Total (Time % must sum to 100%)
Availability & Reliability

Recovering from crashes/conflicts Rework due to lost work Total (Time % must sum to 100%)
Total (Hours per Week)
Non-Computing-Related Activities Total
Summary of Productivity Improvements (Time Saved)

The table below summarizes time saved by business activity category.
Productivity
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The table below summarizes time saved by business activity category.
Info Workers As-Is To-Be 2.8 1.1 2.7 3.4 1.1 11.0 4.4 1.1 1.2 0.7 7.4 0.4 0.2 0.2 0.1 0.1 0.0 1.1 15.1 34.6 Saved 0.04 0.07 0.00 0.07 0.00 0.18 0.00 0.00 0.00 0.00 0.00 0.07 0.13 0.03 0.03 0.01 0.02 0.29 0 0.5 % Savings 1% 6% 0% 2% 0% 2% 0% 0% 0% 0% 0% 14% 38% 11% 18% 18% 35% 21% 0% 1.4% As-Is 2.9 0.5 0.8 5.5 0.7 10.5 0.5 0.3 0.2 0.1 1.1 0.3 0.2 0.0 0.1 0.1 0.0 0.7 22.8 35.1 Task Workers % To-Be Saved Savings 2.9 0.5 0.8 5.3 0.7 10.2 0.5 0.3 0.2 0.1 1.1 0.2 0.1 0.0 0.1 0.0 0.0 0.5 22.8 34.6 0.04 0.03 0.00 0.22 0.00 0.29 0.00 0.00 0.00 0.00 0.00 0.04 0.07 0.00 0.02 0.01 0.01 0.15 0 0.4 1% 6% 0% 4% 0% 3% 0% 0% 0% 0% 0% 14% 38% 11% 18% 18% 35% 22% 0% 1.3% Total (Weighted Average) % As-Is To-Be Saved Savings 2.9 0.8 1.7 4.6 0.9 10.8 2.2 0.7 0.6 0.4 3.9 0.4 0.3 0.1 0.1 0.1 0.0 1.0 19.4 35.1 2.8 0.7 1.7 4.4 0.9 10.6 2.2 0.7 0.6 0.4 3.9 0.3 0.2 0.1 0.1 0.1 0.0 0.8 19.4 34.6 0.0 0.0 0.0 0.2 0.0 0.24 0.0 0.0 0.0 0.0 0.00 0.1 0.1 0.0 0.0 0.0 0.0 0.22 0.0 0.5 1% 6% 0% 3% 0% 2% 0% 0% 0% 0% 0% 14% 38% 11% 18% 18% 35% 21% 0% 1.3%
Document Creation Data & Information Access/Analysis Email, Calendar, Contact, & Task Mgmt LOB Application-Related Activities Other Total 2.8 1.1 2.7 3.5 1.1 11.2 4.4 1.1 1.2 0.7 7.4 0.5 0.4 0.2 0.2 0.1 0.1 1.4 15.1 35.1
Document Collaboration Workflow (routing) Coordination / Project Mgmt Other Total
Support, Self-Help, & Learning Performance Mobility & Remote Connectivity Security & Privacy System UI Navigation Availability & Reliability Total
Non-Computing-Related Activities Total Summary

Individual Computing Collaborative Computing PC Systems Management Non-Computing-Related Activities Total
11.2 7.4 1.4 15.1 35.1
11.0 7.4 1.1 15.1 34.6
0.18 0.00 0.29 0.00 0.5
2% 0% 21% 0% 1.4%
10.5 1.1 0.7 22.8 35.1
10.2 1.1 0.5 22.8 34.6
0.29 0.00 0.15 0.00 0.4
3% 0% 22% 0% 1.3%
10.8 3.9 1.0 19.4 35.1
10.6 3.9 0.8 19.4 34.6
0.2 0.0 0.2 0.0 0.5
2% 0% 21% 0% 1.3%
Summary
0 Individual Computing 5 Time (Hours / Week) 10 15 20 25
0 Document Creation As-Is To-Be Data & Information Access/Analysis Email, Calendar, Contact, & Task Mgmt LOB Application-Related Activities 0.8 0.7 1.7 1.7 4.6 4.4
0.9 0.9
Time (Hours / Week) 1 2 3 4 2.9 2.8
10.8 10.6
3.9 3.9
1.0 0.8
As-Is To-Be
Non-Computing-Related Activities
19.4 19.4
Other
0 1
3 Support, Self-Help, & Learning As-Is
Time (Hours / Week) 1 2 2 2.2 2.2
0.0
Time (Hours / Week) 0.1 0.2 0.3 0.4 0.3 0.2 0.1 0.1
0.1 0.1
0.4
Document Collaboration 0.7 0.7 0.6 0.6

0.4 0.4
Performance Mobility & Remote Connectivity Security & Privacy

System UI Navigation
0.3 As-Is
To-Be
Workflow (routing)
To-Be
Coordination / Project Mgmt
0.1 0.1
Other
Availability & Reliability
0.0 0.0
Productivity
23 of 33

Business Value of Time Saved
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. Productivity Conversion Factor* (0%-100%) 50%
*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.
Value per User per Year Task Weighted *Total Wrkr Avg Adjusted
Info Wrkr
Adjusted (Per PC)
Document Creation Data & Information Access/Analysis Email, Calendar, Contact, & Task Mgmt LOB Application-Related Activities Other Total $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 110 189 186 484 181 356 70 89 39 52 787 1,271 $ 74 $ $ 66 $ $ - $ $ 460 $ $ - $ $ 600 $ $ $ $ $ $ $ $ $ $ $ 90 121 338 549 125 236 36 62 29 41 529 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 45 60 169 274 63 118 18 31 14 20 265 539 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 45 60 169 274 63 118 18 31 14 20 265 539
Business Value of Productivity Benefits

$600
Annual Productivity Benefits ($/PC)
$500 $400
$300 $265
Document Collaboration Workflow (routing) Coordination / Project Mgmt Other Total
$-
Support, Self-Help, & Learning Performance Mobility & Remote Connectivity Security & Privacy System UI Navigation Availability & Reliability Total $ 81 $ $ 140 $ $ 10 $ $ 40 $ $ 21 $ $ 31 $ $ 323 $ $ - $
$200 $274 $100

$-
Non-Computing-Related Activities Total Summary

Individual Computing Collaborative Computing PC Systems Management Non-Computing-Related Activities Total
$ 923 $ 1,078
$ $ $ $ $
484 787 1,271
$ 600 $ 549 $ - $ $ 323 $ 529 $ - $ $ 923 $ 1,078
$ $ $ $ $
274 265 539
$ $ $ $ $
274 265 539
Productivity
24 of 33
Revenue Increase Enabled by the Solution

This worksheet estimates incremental revenue enabled by the solution. Not all projects will have credibly quantifiable revenue impacts. Revenue impa cts can be difficult to accurately assess. Research, analysis, and supplemental modeling is likely needed to credibly estimate true revenue impacts. One key i s 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 mode l 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 oper ating profit, not gross margin: in the long run, on average, fixed costs tend to increase at the same rate as revenue growth.
Segment Revenue Improved Marketing Effectiveness Revenue Increase Driver % New/Expanded Channels/Geographie s Improved Customer Service Improved Product Availability (fill rate, up-time) New/Enhanced Products/Services
Other
Addressed Segments (products, channels, geographies, business unit, and/or markets) Segment A1 Segment A2 Segment A3 Segment A4 Segment B1 Segment B2 Segment B3 Segment B4 Segment C1 Segment C2 Segment C3 Segment C4 All Other (Not Impacted) Total
Revenue (% of Total) 3.0% 3.0% 3.0% 2.0% 2.0% 2.0% 2.0% 1.0% 1.0% 1.0% 1.0% 1.0% 78.0% 100%
Revenue ($000) $ $ $ $ $ $ $ $ $ $ $ $ $ $ 117,744 117,744 117,744 78,496 78,496 78,496 78,496 39,248 39,248 39,248 39,248 39,248 3,061,348 3,924,805
Profit Margin (% of Sales) 10.3% 10.3% 10.3% 10.3% 10.3% 10.3% 10.3% 10.3% 10.3% 10.3% 10.3% 10.3% 0.0% 2.3%
Improved Sales Effectiveness
Annual Benefit ($000) $ $ $ $ $ $ $ $ $ $ $ $ $ $ 243 243 243 162 162 162 162 81 81 81 81 81 1,784
Comments
1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 0.0%
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.0%
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Summary
The table and graph below summarize the annual revenue gain and margin on the revenue gain (the benefit).
Revenue ($000) $ 12,952 $ $ - $ $ 4,317 $ $ $ $ $ $ $ 17,269 51,807 $ $ $ $ $ $ Margin ($000) 1,338 446 1,784 5,351 Benefit ($ per PC) $ $ $ $ $ $ $ $ $ 268 89
Improved Sales Effectiveness Improved Marketing Effectiveness Improved Customer Service New/Expanded Channels/Geographies New/Enhanced Products/Services Improved Product Availability (fill rate, up-time) Other Total (Annual) Total (3-Year)
Revenue Growth (Margin)

$400 $-
Other Improved Product Availability (fill rate, uptime) New/Enhanced Products/Services New/Expanded Channels/Geographies $268 Improved Customer Service Improved Marketing Effectiveness Benefit ($ per PC)
Annual Benefit per PC
357 1,070
$300
$89 $-
$200
$100
$0
Revenue
25 of 33
Key Performance Indicator (KPI) Assessment (Optional)

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.
Industry KPI Values World Laggard Class 15% 12% 30% 10.0 19% 10% 95% 5.0 Organization Performance Percentile KPI Value ImproveAs-Is To-Be As-Is To-Be ment % 30% 30% 40% 30% 30% 30% 40% 30% 16% 11% 56% 8.5 16% 11% 56% 8.5 0% 0% 0% 0%
Business Objective
KPI / Metric Close rate (% of qualified sales opportunities) Customer annual turnover (%) % of customers that are highly satisfied when surveyed Time to respond to RFP (days)
Comments
Sales/Marketing Performance
Customer Acquisition Customer Retention Customer Satisfaction Sales-based document collaboration Efficiency Decision-Making Speed / Reaction Time to Market Event/Opportunity Business Visibility Business Alignment Decision-Making Effectiveness Information Availability Information Quality Mergers & Acquisition Analysis Speed
Business Management Effectiveness

Days to accumulate information, analyze, collaborate, decide, plan (for informationintensive decisions) % of analytical data easily accessible to authorized decision-makers % of org. with auto-updated KPIs linked to corporate objectives Decision success rate % % of desired information readily available % of analytical data with single trusted access point Months to complete analysis, workflows, due diligence, regulatory approvals, legal docs, etc. 10.0 15% 15% 65% 30% 30% 5.0 5.0 75% 75% 75% 60% 75% 3.0 30% 30% 30% 30% 30% 30% 50% 30% 30% 30% 30% 30% 30% 50% 8.5 33% 33% 68% 39% 44% 4.0 8.5 33% 33% 68% 39% 44% 4.0 0% 0% 0% 0% 0% 0% 0%
Supply/Operations Performance
Quality of Products/Services Defect rate Forecast Accuracy Supply Chain Effectiveness Cash Cycle Time Project management effectiveness Customer preference vs. competitive products % (e.g. blind taste test) # of process/product/service defects/errors per 1000 Avg forecast error % On-time delivery Days % of document-intensive projects that complete on-time / on-budget % of electronic content (shared documents, reports, web content, email) that is controlled (retention, security, reuse, storage) centrally SLA achievement % Best practice adoption % Average system (local/LAN/WAN) response delay (Seconds) Time (days) to deliver applications; time to start delivery % of users that are highly satisfied when surveyed # of vulnerabilities (reduce attack surface) 30% 45.0 25% 90% 30.0 50% 70% 2.0 13% 95% 24.0 70% 30% 50% 30% 30% 30% 30% 30% 50% 30% 30% 30% 30% 42% 23.5 21% 91% 28.2 56% 42% 23.5 21% 91% 28.2 56% 0% 0% 0% 0% 0% 0%
Technology Effectiveness
Records Compliance (centralized content control) Service Level Agreement Performance Maturity Level System response time Application delivery agility User computing experience satisfaction Security 30% 10% 10% 3.0 120.0 30% 50.0 99% 90% 90% 0.2 35.0 95% 20.0 30% 40% 40% 50% 50% 40% 40% 50% 70% 70% 80% 80% 60% 70% 51% 42% 42% 1.6 77.5 56% 38.0 65% 66% 66% 0.8 52.0 69% 29.0 27% 57% 57% 53% 33% 23% 24%
KPIs
26 of 33
Key Performance Indicator (KPI) Assessment (Optional)

Summary
The category as-is, to-be, and improvement average percentiles are summarized below. Note: the improvement (Imp.) is not the K PI value % improvement, it shows the percentile point improvement.
Percentile As-Is To-Be Imp. 33% 33% 0% 33% 33% 0% 33% 33% 0% 41% 69% 27% 35% 42% 7%
Sales/Marketing Performance Business Management Effectiveness Supply/Operations Performance Technology Effectiveness Average
World 100% Class

90% 80%
70%
KPI Performance Comparison
As-Is To-Be
Performance Percentile
69%
60% 50% 40% 30% 20% 10% 0% Sales/Marketing Performance Business Management Effectiveness Supply/Operations Performance Technology Effectiveness
33% 33% 33% 33% 33% 33% 41%
Laggard
KPIs
27 of 33
Financial Analysis
This model simulates the costs and benefits of the initiative . The tables and charts below summarize the tool results.
Summary of Results
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.
Organization Total ($000) 8,716 26,697 17,982 13,908 206% 124% 9 Months 5000
Total Costs Vs Benefits

Costs & Benefits ($/PC) $6,000 $5,000 $4,000 $3,000 $2,000 $5,339 $1,743 Costs (3-Yr) Benefits (3-Yr)
Costs (3-Yr) Benefits (3-Yr) Net Benefits NPV (Net Present Value) ROI (Return on Investment) - [Total Net Benefits / Total Costs] IRR (Internal Rate of Return) Payback Period Number of PCs
$ $ $ $
Per PC 1,743 5,339 3,596 2,782
$ $ $ $
$1,000 $0
Costs Benefits
Costs & Benefits ($ per PC) Annual On3-Year One-Time Going Total $ 1,242 $ 167 $ 1,743 $ 75 $ 1,755 $ 5,339
Costs & Benefits ($000) Annual OnOne-Time Going 3-Year Total $ 6,210 $ 835 $ 8,716 $ 376 $ 8,774 $ 26,697
Initiative Cost Summary

$2,000 $1,800 $1,600 Costs ($ per PC)
Initiative Benefit Summary

$6,000
(per PC
$343 $268 $253
End-User Labor & Training Benefits ($ per PC) IT Labor, Services, & Training Software
(per PC
$1,070
$1,616
Revenue Growth
$5,000 $4,000
$1,400
$1,200 $1,000 $800
$3,000
$400 $2,000 $1,000 $2,253
User Productivity Benefits Other Direct Cost Savings
$600
$400 $200 $3-Year Total $879
Hardware
$3-Year Total
IT Labor/Services TCO Savings
Cost Summary
Below are the initial design/development/deployment and added annual on -going costs required to fully deploy, adopt and support the i nitiative. Additional details can be found below and on the "Cost" worksheet.
Costs ($ per PC) Annual On3-Year One-Time Going Total $ 606 $ 91 $ 879 $ 150 $ 34 $ 253 $ 213 $ 18 $ 268 $ 273 $ 24 $ 343 Total $ 1,242 $ 167 $ 1,743 Costs ($000) Annual OnGoing $ 455 $ 172 $ 91 $ 118 $ 835
Hardware Software IT Labor, Services, & Training End-User Labor & Training
One-Time $ 3,030 $ 748 $ 1,067 $ 1,364 $ 6,210
3-Year Total $ 4,394 $ 1,265 $ 1,340 $ 1,717 $ 8,716
ROI
28 of 33
Financial Analysis
This model simulates the costs and benefits of the initiative . Benefits Summary The tables and charts below summarize the tool results. Below are the benefits enabled by the initiative. The detailed calculations are below and on the green benefit tabs.
Benefit Summary
IT Labor/Services TCO Savings Other Direct Cost Savings User Productivity Benefits Revenue Growth
Benefits ($ per PC) Annual On3-Year One-Time Going Total $ $ 751 $ 2,253 $ 75 $ 108 $ 400 $ $ 539 $ 1,616 $ $ 357 $ 1,070 Total $ 75 $ 1,755 $ 5,339
Benefits ($000) Annual OnOne-Time Going 3-Year Total $ $ 3,755 $ 11,264 $ 376 $ 542 $ 2,001 $ $ 2,694 $ 8,082 $ $ 1,784 $ 5,351 $ 376 $ 8,774 $ 26,697
Benefit Sub-Categories
IT Labor/Services TCO Savings Other Direct Cost Savings
IT Savings Business Savings Total $ $ $ $ $ $ $ $ $ $ 75 75 75 $ $ $ $ $ $ $ $ $ $ 751 94 15 108 274 265 539 357 1,755 $ $ $ $ $ $ $ $ $ $ 2,253 356 44 400 823 794 1,616 1,070 5,339 $ $ $ $ $ $ $ $ $ $ $ 3,755 468 73 542 1,372 1,323 2,694 1,784 8,774 $ $ $ $ $ $ $ $ $ $ 11,264 1,781 220 2,001 4,115 3,968 8,082 5,351 26,697
376 $ $ 376 $ $ $ $ $ $

Individual Computing Collaborative Computing PC Systems Management Total
Revenue Growth Total
376 $
Cash Flow
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.
Costs Benefits Net Benefits Cumulative Cash Flow Payback Period (Months) $ $ $ $ Initial 1,242 75 (1,167) (1,167) 9 $ $ $ $ Year 1 167 1,755 1,588 421 $ $ $ $ Year 2 167 1,755 1,588 2,009 $ $ $ $ Year 3 167 1,755 1,588 3,596 Year 4 $ $ $ $ 3,596 $ $ $ $ Year 5 $ $ - $ 3,596 Total 1,743 5,339 3,596 $ $ $ NPV 1,657 4,439 2,782
Cumulative Cash Flow

Cumulative Cash Flow ($/PC) $4,000 $3,000 $2,000
$1,000
$0
-$1,000
-$2,000 0 1 2 Year 3 4 5
ROI
29 of 33
Financial Analysis
This model simulates the costs and benefits of the initiative . Cost Details The table/chart below provide additional cost details.
Costs ($ per PC) Annual OnOne-Time Going $ $ Total $ $ $ Total $ $ $ $ $ $ 600 6 606 143 7 150 151 11 52 213 60 213 273 1,242 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 90 1 91 33 2 34 18 18 24 24 167 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 3-Year Total 870 9 879 242 11 253 151 55 11 52 268 130 213 343 1,743 Costs ($000) Annual OnOne-Time Going 3-Year Total $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 3,000 $ 30 $ 3,030 $ 715 $ 33 $ 748 $ 753 54 261 1,067 $ $ $ $ $ 450 5 455 164 8 172 91 91 118 118 835 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 4,350 44 4,394 1,208 56 1,265 753 273 54 261 1,340 652 1,066 1,717 8,716
The tables and charts below summarize the tool results.
Cost / Benefit Category
Hardware
Client Hardware Server Hardware
Software
Client Software Server Software

One-time Implementation Labor/Services Annual On-Going Labor/Services Incremental Help Desk Calls IT Training Total

End-User Labor End-User Training $ $ Total $ $ 299 $ 1,066 $ 1,364 $ 6,210 $
Total Costs

$2,000 $1,800 Total Costs ($ per PC) $1,600 $1,400 End-User Training
$213
$130 $52 $11 $55 $151 $11 $242 $9
End-User Labor
IT Training
Incremental Help Desk Calls Annual On-Going Labor/Services One-time Implementation Labor/Services Server Software Client Software Server Hardware
$1,200
$1,000 $800 $600
$400
$200 $0
$870
3-Year Total
Client Hardware
ROI
30 of 33
Financial Analysis
This model simulates the costs and benefits of the initiative . Benefit Details The tables and charts below summarize the tool results. The tables/charts below provide additional details regarding each of the four quantified benefit types.
IT Labor/Services TCO Savings

Benefits ($ per PC) Annual On3-Year One-Time Going Total $ $ 233 $ 699 $ $ 146 $ 437 $ $ 173 $ 520 $ $ 128 $ 383 $ $ 71 $ 214 Total $ $ 751 $ 2,253 One-Time $ $ $ $ $ $ Benefits ($000) Annual OnGoing 3-Year Total $ 1,164 $ 3,493 $ 728 $ 2,185 $ 867 $ 2,602 $ 638 $ 1,915 $ 356 $ 1,069 $ 3,755 $ 11,264
PC Management Services Help Desk (Tech Support) Server & Network Mgmt Services Application Development Administration & Other
IT Labor TCO Comparison

$4,000
$3,500
$1,400
IT Labor Comparison
As-Is TCO To-Be TCO As-Is FTEs
47.3
To-Be FTEs
50 45
$559 $3,000
TCO per PC per Year
TCO per PC per Year
33.2 $1,000 26.8 $800 $600 $400 19.5 18.5 25.2 27.1
42.6
40
35 25.2 30 25
$2,500 $2,000
$1,144
$488
$1,016
$1,500
$1,000
$774 $601 $251 $625 $392 To-Be TCO PC Management Services Help Desk (Tech Support)
22.4
20
15
10
$396 $500 $As-Is TCO
$200
5 $625 $392 $$396 $251 $774 $601 $1,144 $1,016 $559 $488 0
Other Direct Cost Savings

Benefits ($ per PC) Annual On3-Year One-Time Going Total Benefits ($000) Annual OnOne-Time Going 3-Year Total $ $ $ $ $ $ $ $ $ $ $ $ 300 40 36 376 $ $ $ $ $ $ $ $ $ $ $ 205 6 5 24 224 4 468 73 73 542 $ $ $ $ $ $ $ $ $ $ $ $ 915 58 52 72 672 12 1,781 220 220 2,001
IT Savings
Software - Clients Software - Servers Hardware IT Services Power/Electricity Usage Other IT Costs $ $ $ $ $ $ Total $ $ $ $ Total $ $ 60 8 7 75 75 $ $ $ $ $ $ $ $ $ $ $ $ 41 1 1 5 45 1 94 15 15 108 $ $ $ $ $ $ $ $ $ $ $ $ 183 12 10 14 134 2 356 44 44 400
Business Savings
Travel Expenses Business Services Other Business Expenses
Total Other Direct Cost Savings
376 $
ROI
FTEs (Full Time Equivalents)
$1,200
31 of 33
Financial Analysis
This model simulates the costs and benefits of the initiative . The tables and charts below summarize the tool results.
Direct Cost Savings

$450 $400 Benefit ($ per PC)
$350
$300 $250
$$44 $2
Other Business Expenses
Business Services
Travel Expenses Other IT Costs
$134
$200
$150 $100
$14 $10 $12
Power/Electricity Usage
IT Services Hardware
$183
$50
$3-Year Total
Software - Servers
Software - Clients

Benefits ($ per PC) Annual On3-Year One-Time Going Total Benefits ($000) Annual OnOne-Time Going 3-Year Total $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 225 302 845 1,372 314 590 91 154 72 101 1,323 1,913 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 674 906 2,535 4,115 941 1,770 273 463 217 304 3,968 5,738
Document Creation Data & Information Access/Analysis Email, Calendar, Contact, & Task Mgmt LOB Application-Related Activities Other Total $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 45 60 169 274 63 118 18 31 14 20 265 383 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 135 181 507 823 188 354 55 93 43 61 794 1,148
Document Collaboration Workflow (routing) Coordination / Project Mgmt Other Total $ -
Support, Self-Help, & Learning Performance Mobility & Remote Connectivity Security & Privacy System UI Navigation Availability & Reliability Total $ Total User Productivity Benefits $ -
Time per Activity

0 Individual Computing Time (Hours / Week) 5 10 15 20 25 Annual Productivity Benefits ($/PC) $600 $500 $400 $300 $200
Business Value of Productivity Benefits

PC Systems Management $265 Collaborative Computing
10.8 10.6 3.9 3.9

1.0 0.8 19.4 19.4
As-Is
To-Be
$-
$274
$100 $-
Non-Computing-Related Activities
ROI
32 of 33
Financial Analysis
This model simulates Revenue Growth the costs and benefits of the initiative . The tables and charts below summarize the tool results. Benefits ($ per PC) Benefits ($000) Annual On3-Year Annual OnOne-Time Going Total One-Time Going 3-Year Total Improved 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 $ $ $ $ $ Improved Product Availability (fill rate, up$ $ $ $ $ time) Other $ $ $ $ $ Total $ $ 357 $ 1,070 $ $ 1,784 $ 5,351
Annual Revenue Growth (Margin)

$400 $Other $89 $$200 $268 $100 Improved Product Availability (fill rate, up-time) New/Enhanced Products/Services New/Expanded Channels/Geographies Improved Customer Service Improved Marketing Effectiveness $0 Benefit ($ per PC) Improved Sales Effectiveness
Annual Benefit per PC
$300
Summary of Non-Financial Key Performance Indicator Changes

The table/chart below provides a summary of the 4 categories of non -financial KPIs. There are 4 to 10 specific KPIs in each cat egory. 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 i s expected to improve KPI performance due to the solution. Additional details can be found in the "KPIs" worksheet.
Percentile As-Is 32.5% 32.9% 33.3% 41.4% 35.0% To-Be 32.5% 32.9% 33.3% 68.6% 41.8% Improvement 0.0% 0.0% 0.0% 27.1% 6.8%
Sales/Marketing Performance Business Management Effectiveness Supply/Operations Performance Technology Effectiveness Average
World Class
Performance Percentile
KPI Performance Comparison

100% 90% 80% 70%
69%
As-Is To-Be
60%
50% 40% 30% 20% 10% 0%
33% 33% 33% 33% 33% 33% 41%
Laggard
Sales/Marketing Performance
Business Management Effectiveness
Supply/Operations Performance
Technology Effectiveness
ROI
33 of 33

Business Case ROI Workbook For IT Initiatives: On This Worksheet

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Business Case ROI Workbook For IT Initiatives: On This Worksheet

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Business Case ROI Workbook for IT Initiatives

Workbook Table of Contents

Initiatives Costs IT Labor

Initiative Descriptions Implementation Costs IT Labor TCO Savings

Direct Savings Direct Cost Savings

User Productivity Benefits

Revenue KPIs ROI

Revenue Impact Key Performance Indicator Assessment (Optional) Financial Analysis