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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 Title 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
Profile Organizational Profile
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
Initiatives Initiative Descriptions
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
Costs Implementation Costs solution. Cost categories include: hardware, software, IT labor, and user labor, including
one-time and annual on-going costs.
IT Labor IT Labor TCO Savings Estimates IT labor TCO (as-is and to-be) and TCO savings enabled by the solution
Direct Savings Direct Cost Savings 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
Productivity User Productivity Benefits
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
Revenue Revenue Impact
the profit on the incremental revenue.
Key Performance Indicator Assessment Assessment of how the solution may impact a variety of business KPIs. In this model, these
KPIs
(Optional) KPI changes are not converted into financial benefits.
Summary of costs & benefits by type; Cash flow analysis; calculation of ROI, payback period,
ROI Financial Analysis
NPV, and IRR; and graphs

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 modifying 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 provide additional fee-based
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 conducted 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.

374293471.xls User Guide 1 of 30


Business Case ROI Workbook for IT Initiatives
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 appropriate 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.

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Business Case ROI Workbook for IT Initiatives
Disclaimer
This tool is intended to help guide organizations in better understanding approximate/potential costs and benefits. Due to limitations 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 negligence, 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 business 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

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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 Summary Pre-view of Results


Enter values or select the closest fit from the drop-down menus. These are the most important inputs in the model. 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.
Industry - select the closest-matching from the Organization Total
Average / Mixed
drop-down Per PC ($000)
Industry is used to pre-select various default values (i.e. user type mix, labor costs) Costs (3-Yr) $ 1,743 $ 8,716
Primary geographic location - select the
U.S. Benefits (3-Yr) $ 5,339 $ 26,697
closest-matching from the drop-down
Used to scale labor costs and estimate default work hours per year Net Benefits $ 3,596 $ 17,982
Primary Site Locations - select the closest-
Suburban / Mixed NPV (Net Present Value) $ 2,782 $ 13,908
matching from the drop-down box
Used to scale labor costs. Urban labor costs tend to be 15-20% higher than suburban locations. ROI (Return on Investment) - [Total
Net Benefits / Total Costs]
206%

Total Number of PCs in Scope 5,000 IRR (Internal Rate of Return) 124%
Number of PC Users in Scope 5,000 Payback Period 9 Months

C o st s & Be n efi t s ($ / P C )
This typically is approximately the same as the number of PCs. It is used to scale most costs and benefits. Number of PCs 5000

% of PC # of PC
Users Users
Portion of PC Users that are Information
44% 2,223
Workers (IWs)
Total Costs Vs Benefits (per PC)
Portion of PC Users that are Data-entry or
56% 2,777 $6,000
Structured-Task Workers
$5,000
Total PC-Users (# of Employees that use PCs
100% 5,000
on a regular basis) $4,000
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. $3,000
$5,339
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 $2,000
service representative, insurance claims processor, or inside sales representative.
$1,000 $1,743
$-
Initiative Type - Select the project type from the Costs (3-Yr) Benefits (3-Yr)
drop-down box that most closely matches the PC Hardware & Operating System Upgrades
initiative to be modeled
This pre-populates all costs and benefits with sample data based on the initiative type. The sample data is only provided at a moderate
level of detail. If you want to start with a blank slate (all zeros), select "No Sample Data - Zero-out all costs/benefits". Sample data should
Costs ($ per PC)
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 Cost Summary (per PC)
substantially from one organization to another.
$2,000
$1,800
End-User Labor &
$1,600 $343 Training
$1,400
Financial Information $1,200 $268
IT Labor, Services, &
Default values are provided based on inputs above. Defaults may be adequate for rapid/ballpark assessments, but $1,000 $253 Training
otherwise should be reviewed/modified. $800
Organization Revenue ($ Millions) $ 3,925 $600 Software
Source of defaults is based on analysis of data from Fortune 500, Fortune Magazine and is industry-dependent (varies depending on $400 $879
industry selected above) Hardware
$200
Margin % of Revenue (Net profit margin of new $-
10.3%
revenue enabled by the initiative) 3-Year Total
Default value is based on industry average. This margin rate is used to calculate the business value of incremental revenue enabled by the
Benefits ($ per PC)

initiative

Discount Rate / Cost of Capital (WACC) 10% Benefit Summary (per PC)
Used in Net Present Value calculations
$6,000
Duration of analysis (years) - Select from drop- Revenue Growth
3 $5,000
down box. $1,070
A 3-year life-expectancy is standard for many IT projects. Some major initiatives may be 5 years. User Productivity
$4,000
Benefits
$1,616
$3,000
Labor Costs $400 Other Direct Cost
$2,000 Savings
Default values are provided based on inputs above. Defaults may be adequate for rapid/ballpark assessments, but
otherwise should be reviewed/modified. $2,253
$1,000 IT Labor/Services
Burden rate (labor overhead as a % of cash TCO Savings
25%
compensation)* $-
Standard Work Hours per Year 1,824 3-Year Total
* Non-cash compensation, such as benefits and Social Security
Average Burdened Burdened
Ann'l Cash Annual Weekly Burdened Costs & Benefits ($ per PC)
Comp- Burden Labor Labor Hourly Annual On- 3-Year
ensation** Rate Cost Rate rate One-Time Going Total
IT Staff Labor Costs Initiative Costs
Systems/Network Administrator/Engineer $ 93,190 25% $ 116,488 $ 2,240 $ 63.86 Hardware $ 606 $ 91 $ 879
Software Developer/Engineer $ 96,675 25% $ 120,844 $ 2,324 $ 66.25 Software $ 150 $ 34 $ 253
Help Desk / Technical Support $ 62,781 25% $ 78,477 $ 1,509 $ 43.02 IT Labor, Services, & Training $ 213 $ 18 $ 268
Source of salary data: based on HCR analysis of Bureau of Labor Statistics data and various 2007 Salary Surveys. Salary data is scaled End-User Labor & Training $ 273 $ 24 $ 343
based on industry, geography, and organization size.
Total $ 1,242 $ 167 $ 1,743
PC User Labor Costs Initiative Benefits
IWs (Information Workers) $ 74,937 25% $ 93,672 $ 1,801 $ 51.36 IT Labor/Services TCO Savings $ - $ 751 $ 2,253
Data-entry or Structured Task Workers $ 58,937 25% $ 73,672 $ 1,417 $ 40.39 Other Direct Cost Savings $ 75 $ 108 $ 400
Average (weighted) $ 66,050 $ 82,563 $ 1,811 $ 45.26 User Productivity Benefits $ - $ 539 $ 1,616
** Base compensation plus bonuses Revenue Growth $ - $ 357 $ 1,070
Source of salary data: based on HCR analysis of U.S. Department of Labor, Bureau of Labor Statistics data; The World Bank, World Total $ 75 $ 1,755 $ 5,339
Development Indicators Database; and Organisation for Economic Co-operation and Development. Salary data is scaled based on industry,
geography, and organization size.

Copyright, 2006-2008, Hall Consulting & Research LLC, All Rights Reserved. www.hallcr.com

374293471.xls Profile 4 of 30
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 Key Features, Capabilities, Benefits Sample Vendors And Products
Improved performance, reliability, security, manageability, Microsoft Windows Vista, Linux, Red Hat, Novell
PC HW/OS Notebook, desktop, thin-client Dell, HP, Apple, Toshiba, Lenovo, Fujitsu, Acer, Sony, Gateway
Upgrades
Intel, AMD
Virtualization, consolidation, clustering Microsoft Windows Server, Novell SUSE, Red hat, Unix, Solaris, IBM
AIX, HPUX
Server HW/SW
Improved performance, reliability, manageability, security IBM, HP, Dell, Sun, Fujitsu, Bull
Upgrades
Multi-core, 64-bit, RISC/Itanium, x86
Web servers, application servers, DBMS servers, data
warehouse servers, infrastructureOS
Asset inventory/management, servers, high performance
management, configuration Microsoft System Center Configuration Manager, MDOP, Active
management, change management, systems management, Directory
Infrastructure software distribution, application packaging
Directory services, group policy objects IBM Tivoli, BMC Software, CA Unicenter, HP, LANDesk, Novell
Mgmt / ZENworks, Symantec Altiris, Cisco Systems
Networking
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
Storage arrays, iSCSI, fibre channel
Capacity management, performance analysis, storage
provisioning, quota management,
Security planning, event management
assessment, incident/breach management McAfee, Symantec, CA, Trend Micro
Security Identity and access management, encryption, smartcards, Cisco Systems, NetIQ
Firewalls, antivirus, anti-malware, anti-spyware, network VeriSign, IBM, Unisys
access control,
Improved information
software and
quality, data rightsusability
integration, management Microsoft .NET, Visual Studio
Custom developed software IBM WebSphere, Rational
Application Rapid application development Sun Microsystems Java
Development / Middleware, application server Java/J2EE/EE, Ruby on Rails, PHP, Python, Perl
Architecture Web services, Service-Oriented Architecture, SaaS (software as Oracle Fusion Middleware, Application Server
Enterprise architecture (EA) BEA Systems WebLogic, JBoss (Red Hat), SAP NetWeaver

Methods and software to ease compliance with regulations BearingPoint, Deloitte, Ernst & Young, IBM, KPMG,
ITIL, COBIT, Six Sigma, CMM, ISO 17799/9000, PMBOK PricewaterhouseCoopers
Compliance, Maturity models (Microsofts Infrastructure Optimization
Governance, Maturity Model)
Risk 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

Outsourcing Infrastructure management: helpdesk, on-site support, AT&T, IBM, MCI-Digex, Qwest, Rackspace, Verio
desktop management, data center services
BPO 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,
Wireless/ Fujitsu,
Mobility
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
EDGE

374293471.xls Initiatives 5 of 30
Description of Sample Initiatives (for reference only)
Business Technology Initiatives
Initiative Type Key Features, Capabilities, Benefits Sample Vendors And Products
Word processing, spreadsheets, personal databases, Microsoft Office 2007
Office
OpenOffice.org
Productivity
Software Sun StarOffice
Google Apps
E-mail, calendaring/scheduling, task management, unified Microsoft SharePoint, Exchange, Live Meeting
Real-time collaboration, presence, instant messaging, web IBM Domino / Lotus Notes
Messaging/ Social computing, blogs, wikis Oracle Collaboration Suite
Collaboration Team workspaces, project management, discussion threads, Sun Java Enterprise System
Novell GroupWise
WebEx Communications
Document management, web content management, Microsoft SharePoint
Knowledge management, information management EMC Documentum, FileNet, Hummingbird, IBM Content
Content Management, Interwoven, Mobius Management Systems, Open Text,
Management Oracle Content Services, Stellent, and Vignette

Intranets, Extranets, Portals


Web sites for external business information dissemination, Microsoft IIS, Commerce Server
E-commerce /
Web storefronts, shopping cart management, taxation, ATG, Escalate Retail, Comergent, Oracle, SAP
Internet
B2B, B2C, AJAX, mashups
Process modeling, monitoring and management Microsoft BizTalk Server, SharePoint Server
Workflow, business rules, automation, electronic forms Captaris Workflow, EMC Documentum, Global 360, IBM FileNet,
Business Open Text
Process Mgmt /
Integration BAM (business activity monitoring) Pegasystems, Oracle, SAP, TIBCO, webMethods, BEA Systems,
SeeBeyond, GXS, Sterling Commerce
EAI (enterprise application integration)
Database management systems (DBMS), data warehousing, Microsoft SQL Server, PerformancePoint Server
Business Master data management, data quality, metadata Teradata, IBM, Oracle, MySQL, Ingres, PostgreSQL, Sybase
Intelligence /
Data Mgmt Financial planning, corporate performance management, Oracle Hyperion, Business Objects, Informatica, Cognos,
reporting, analytics, dashboards, scorecards, enterprise search, Information Builders, MicroStrategy, SAS
ETL, OLAP, query
Business Wide variety of specialized software that helps organizations Various products/vendors by business function and industry
Applications streamline business processes and improve results
(Vertical, LOB)
Customer Relationship Management Oracle Siebel, PeopleSoft
CRM Sales force automation, marketing campaign management, Onyx, Sage, mySAP CRM, Salesforce.com, Amdocs
Hosted CRM Microsoft Dynamics CRM
Enterprise resource planning: supply chain management, SAP
Oracle Fusion (E-Business Suite, J.D. Edwards, PeopleSoft)
ERP / Supply
Chain
Lawson, Intentia, Infor, Sage, Ariba,
Microsoft Dynamics
Copyright, 2006-2008, Hall Consulting & Research LLC, All Rights Reserved. www.hallcr.com

374293471.xls Initiatives 6 of 30
Implementation Costs
This worksheet estimates all costs needed to implement the initiative, including hardware, software, IT labor/services, and
user labor costs.

Hardware
Cost per Unit
Annual
Unit Label Unit Quantity One-Time* Recurring* 3-Year Total Comments
Client Hardware
PCs PCs 2,500 $ 1,000 $ 150 $ 3,625,000
PC Upgrades PCs 2,500 $ 200 $ 30 $ 725,000
Mobile Devices - $ 200 $ 30 $ -
Other - $ 200 $ 30 $ -
Sub Total $ 3,000,000 $ 450,000 $ 4,350,000
Server Hardware
Servers Servers 1.7 $ 15,000 $ 2,250 $ 36,250
Storage (including backups,
redundancy, power supplies, Terabytes 0.5 $ 10,000 $ 1,500 $ 7,250
etc.)
Network Equipment - $ - $ -
Other - $ - $ -
Sub Total $ 30,000 $ 4,500 $ 43,500
Total $ 3,030,000 $ 454,500 $ 4,393,500
* 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.

Software
The software license is typically a one-time cost. Software maintenance (Software Assurance) is an optional annual recurring cost
Annual
Recurring
License One-Time (Main-
Quantity (License) tenance) 3-Year Total Comments
Client Software
Application A 1,500 $ 300 $ 69 $ 760,500
Application B - $ 100 $ 23 $ -
Desktop Operating System 2,500 $ 100 $ 23 $ 422,500
Client Access Licenses (CALs) 1,500 $ 10 $ 2 $ 25,350
Other $ -
Sub Total $ 715,000 $ 164,450 $ 1,208,350
Server Software
Server Operating System 1.7 $ 2,000 $ 460 $ 5,633
Database 2 $ 8,000 $ 1,840 $ 22,533
Server Application 2 $ 10,000 $ 2,300 $ 28,167
Utilities - $ - $ -
Other $ -
Sub Total $ 33,333 $ 7,667 $ 56,333
Total $ 748,333 $ 172,117 $ 1,264,683

IT Labor, Services, & Training


One-time Implementation Labor/Services
Time
Annual Cost per Time
Time Unit One-Time Recurring Unit 3-Year Total Comments
Planning, Evaluation and Project Person-weeks 30.0 $ 2,240 $ 67,204
Engineering Person-weeks 18.0 $ 2,240 $ 40,323
Development Person-weeks 33.6 $ 2,240 $ 75,269
Lab Testing Person-weeks 7.2 $ 2,240 $ 16,129
Pilot Testing Person-weeks 12.0 $ 2,240 $ 26,882
Rollout Person-weeks 36.0 $ 2,240 $ 80,645
Performance Tuning Person-weeks 4.8 $ 2,240 $ 10,753
Documentation Person-weeks 4.8 $ 2,240 $ 10,753
Implementation User Support Person-weeks 4.8 $ 2,240 $ 10,753
Consultants Person-weeks 48.0 $ 6,720 $ 322,581
External Services Person-weeks 9.6 $ 6,720 $ 64,516
Other Person-weeks 12.0 $ 2,240 $ 26,882
Total $ 752,689 $ - 752,689
*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.

374293471.xls Costs 7 of 30
Implementation Costs
Annual On-Going
This worksheet Labor/Services
estimates all costs needed to implement the initiative, including hardware, software, IT labor/services, and
user labor costs. Unit Quantity
Annual
Unit* One-Time Recurring Cost per Unit 3-Year Total Comments
Maintenance Full Time Equivalents 0.20 $ 116,488 $ 69,893
Support FTEs 0.20 $ 116,488 $ 69,893
Customization FTEs 0.10 $ 116,488 $ 34,946
Development FTEs 0.20 $ 116,488 $ 69,893
Upgrades FTEs 0.04 $ 116,488 $ 13,979
Performance Tuning FTEs 0.04 $ 116,488 $ 13,979
External Services FTEs - $ 174,731 $ -
Bandwidth - $ -
Other - $ -
Total $ - $ 90,860 272,581
*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 40%


service desk due to issues/questions
related to the solution implementation
Number of contacts per user (who
1.5
contact the help desk)
Average service desk resolution time
25
per call (in minutes)
Additional service desk time (hours) 1250.0
Total $ 53,781

IT Training
Independent
Formal (Classroom) Internal Learning (Self-
Training Training Study) 3-Year Total Comments

Staff trained with this type of training 11.2 56.0 56.0

Hours of training per staff member 32 16 40


Labor Cost per Hour $ 64 $ 64 $ 64
Training time (labor cost) $ 2,044 $ 1,022 $ 2,555
Class and Additional Fee Cost per
$ 1,500 $ 300 $ 75
trainee
Cost per Employee Trained $ 3,544 $ 1,322 $ 2,630
Total Cost $ 39,689 $ 74,022 $ 147,255 $ 260,966

End-User Labor & Training


End-User Labor
Hours per User Impacted
Annual On-
% of Users Impacted # Of Users One-Time Going 3-Year Total Comments
Solution planning & testing 2% 100 10 $ 45,265
Downtime (Unable to be
productive); e.g. during 2% 100 1 $ 4,526
implementation of the solution
Resolution of issues related to
6% 300 5 2 $ 149,374
the new solution
System configuration 20% 1000 4 0 $ 181,059
Data entry (not previously
4% 200 0 10 $ 271,589
required)
Other 0% 0 0 0 $ -
Other 0% 0 0 0 $ -
Total $ 298,748 $ 117,689 $ 651,814

374293471.xls Costs 8 of 30
Implementation Costs
End-User Training
This worksheet estimates all costs needed to implement the initiative, including hardware, software, IT labor/services, and
user labor costs. Independent
External Classroom Internal Learning (Self-
Training Training Study) Total Comments
% of Employees trained 10% 20% 40%
Employees trained 500 1,000 2,000
Hours of training per employee 4 3 8
Labor Cost per Hour $ 45 $ 45 $ 45
Training time (labor cost) $ 181 $ 136 $ 362
Class and Additional Fee Cost per
$ 100 $ 60 $ 3
trainee
Cost per Employee Trained $ 281 $ 196 $ 365
Total Cost $ 140,530 $ 195,795 $ 729,238 $ 1,065,562

Summary Organization Total Per PC


Annual
One Time Recurring 3-Year Total One Time Annual Recurring 3-Year Total
Hardware
Client Hardware $ 3,000,000 $ 450,000 $ 4,350,000 $ 600 $ 90 $ 870
Server Hardware $ 30,000 $ 4,500 $ 43,500 $ 6 $ 1 $ 9
Sub-Total $ 3,030,000 $ 454,500 $ 4,393,500 $ 606 $ 91 $ 879
Software
Client Software $ 715,000 $ 164,450 $ 1,208,350 $ 143 $ 33 $ 242
Server Software $ 33,333 $ 7,667 $ 56,333 $ 7 $ 2 $ 11
Sub-Total $ 748,333 $ 172,117 $ 1,264,683 $ 150 $ 34 $ 253
IT Labor, Services, & Training
One-time Implementation Labor/Servic $ 752,689 $ - $ 752,689 $ 151 $ - $ 151
Annual On-Going Labor/Services $ - $ 90,860 $ 272,581 $ - $ 18 $ 55
Incremental Help Desk Calls $ 53,781 $ 53,781 $ 11 $ - $ 11
IT Training $ 260,966 $ 260,966 $ 52 $ - $ 52
Sub-Total $ 1,067,435 $ 90,860 $ 1,340,016 $ 213 $ 18 $ 268
End-User Labor & Training
End-User Labor $ 298,748 $ 117,689 $ 651,814 $ 60 $ 24 $ 130
End-User Training $ 1,065,562 $ 1,065,562 $ 213 $ - $ 213
Sub-Total $ 1,364,310 $ 117,689 $ 1,717,376 $ 273 $ 24 $ 343
Total $ 6,210,079 $ 835,166 $ 8,715,576 $ 1,242 $ 167 $ 1,743

374293471.xls Costs 9 of 30
Implementation Costs
Annual including hardware, software, IT labor/services, and
This worksheet estimates all costs needed to implement the initiative,
user labor costs. One Time Recurring 3-Year Total One Time Annual Recurring 3-Year Total
Hardware $ 3,030,000 $ 454,500 $ 4,393,500 $ 606 $ 91 $ 879
Software $ 748,333 $ 172,117 $ 1,264,683 $ 150 $ 34 $ 253
IT Labor, Services, & Training $ 1,067,435 $ 90,860 $ 1,340,016 $ 213 $ 18 $ 268
End-User Labor & Training $ 1,364,310 $ 117,689 $ 1,717,376 $ 273 $ 24 $ 343
Total $ 6,210,079 $ 835,166 $ 8,715,576 $ 1,242 $ 167 $ 1,743

Total Implementation Costs Total Implementation Costs


(Per PC)

Costs ($ per PC)


$10,000,000
$2,000
$9,000,000
Total Costs

$1,800
$8,000,000 $1,717,376 End-User Labor End-User Labor &
& Training $1,600 $343 Training
$7,000,000
$1,400
$1,340,016
$6,000,000 IT Labor, $268
$1,200 IT Labor, Services, &
Services, & Training
$5,000,000 $1,264,683 Training $1,000 $253
$4,000,000 $800
Software Software
$3,000,000 $600
$2,000,000 $4,393,500 $879
Hardware $400 Hardware
$1,000,000 $200

$- $-
3-Year Total 3-Year Total

Total Implementation Costs Total Costs ($ per PC) Total Implementation Costs
(Per PC)
$10,000,000 End-User Training $2,000

$1,800 End-User Training


$9,000,000 End-User Labor
Total Costs

$1,065,562 $213 End-User Labor


$8,000,000 IT Training $1,600
$651,814 Incremental Help $130 IT Training
$7,000,000 $260,966 $1,400 $52
$53,781
$272,581 Desk Calls $11
$55 Incremental Help Desk Calls
$6,000,000 $752,689 Annual On-Going $1,200 $151
$56,333 $11 Annual On-Going
Labor/Services
$5,000,000 $1,208,350 $1,000 $242 Labor/Services
$43,500 One-time $9
Implementation One-time Implementation
$4,000,000 $800
Labor/Services Labor/Services
$3,000,000 $600 Server Software
Server Software
$2,000,000 $4,350,000 $870
Client Software $400 Client Software
$1,000,000 Server Hardware $200 Server Hardware

$- Client Hardware Client Hardware


$-
3-Year Total 3-Year Total

Copyright, 2006-2008, Hall Consulting & Research LLC, All Rights Reserved. www.hallcr.com

374293471.xls Costs 10 of 30
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 (summarized 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 157.8
IT Employees as % of Total PC Users 3.2%
Ratio of PC Users to IT Staff 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

Average
% of Burdened As-Is Total IT Labor TCO /
Total* FTEs* Cost** TCO / PC Year Comments
PC/User administration, security, sw/hw
PC Management Services deployment, data backup 17% 27 $116,488 $ 625 $ 3,124,482

Service Desk / Technical Support. Call


Help Desk (Tech Support) center (remote), and deskside (on-site) 16% 25 $ 78,477 $ 396 $ 1,981,118
support of user computing

Management and administration of servers,


Server & Network Mgmt Services data storage, and the network 21% 33 $116,488 $ 772 $ 3,859,654
Application development, testing,
Application Development troubleshooting, and support. 30% 47 $120,844 $ 1,144 $ 5,719,992
Finance, purchasing, training, planning,
Administration & Other administration, senior management 16% 25 $110,803 $ 559 $ 2,797,190
overhead, other

Total IT FTEs 100% 158 $ 3,496 $ 17,482,436


* include management, except senior management; which is included in "Administration"
** Base compensation plus bonuses X burden rate. Defaults are from "IT Staff Labor Rates" on the Profile worksheet.

Detailed IT Labor TCO and Savings


% of % Re- As-Is
Description Total FTE's duction TCO To-Be TCO Savings Comments
PC Management Services
PC hardware and software planning &
PC HW / SW Evaluation 5% 1.4 18.0% $ 33 $ 27 $ 5.92
PC Image Management
evaluation
Design, test, certify, and update images 7% 1.9 36.0% $ 44 $ 28 $ 15.75 As-Is TCO PC Management TCO
To-Be TCO
User Admin & Provisioning User adds, moves and changes. 9% 2.4 45.0% $ 56 $ 31 $ 25.31
$- $20 $40 $60 $80 $100 $120 $140
Configuration, packaging, compatibility
Application Management testing, inventory, piloting 16% 4.2 36.0% $ 99 $ 63 $ 35.52 TCO ($/PC)
PC HW / SW Eva l uation
Software deployment, changes, and PC Ima ge Ma na gement
Software Deployment removal 11% 2.8 63.0% $ 66 $ 24 $ 41.44
Security policy setting, assessment and
User Admi n & Provi s ioni ng
Security Assessm't & Planning planning. 9% 2.4 18.0% $ 56 $ 46 $ 10.12
Appl ication Ma na gement
Management and distribution of security
Security Patch Management 4% 1.1 27.0% $ 25 $ 18 $ 6.75 Softwa re Deployment
patches
Handling of security breaches, Securi ty Ass ess m't & Pla nni ng
Security Incident Remediation unauthorized access, theft, etc. 2% 0.5 63.0% $ 12 $ 5 $ 7.87
Security Patch Ma na gement
PC-based information and data
Data Mgmt, Backup & Restore management (file shares) & backup 5% 1.3 36.0% $ 31 $ 20 $ 11.25 Securi ty Inci dent Remedi ation

Directory services, group policy objects, sw Data Mgmt, Ba ckup & Restore
Tools/GPO Management distribution, & other tools 13% 3.5 36.0% $ 82 $ 53 $ 29.60
Tools /GPO Ma na gement
Advanced diagnostics/troubleshooting -
3rd Level Support escalated from help desk 19% 5.2 36.0% $ 120 $ 77 $ 43.33 3rd Level Support

Total ($ per PC) 27 $ 232.87 $ 625 $ 392 $ 232.87


Total (% of Total TCO) 100% 37.3%

374293471.xls IT Labor 11 of 30
IT Labor TCO and TCO Savings
Help Desk (Tech Support)
As-Is TCO Help Desk TCO
Proprietary Applications Custom developed application support 30% 7.5 40.0% $ 118 $ 71 $ 47.04 To-Be TCO
$- $20 $40 $60 $80 $100 $120 $140
Standard Desktop Software Commercial off-the-shelf applications 15% 3.8 40.0% $ 59 $ 35 $ 23.66
Proprietary Applications TCO ($/PC)
Operating Systems Operating system-related issues 15% 3.7 40.0% $ 58 $ 35 $ 23.14
Hardware (except printers) Hardware troubleshooting/repair 12% 3.1 30.0% $ 49 $ 34 $ 14.68 Standard Desktop Software
Operating Systems
Data Comm./Network Networking 10% 2.5 30.0% $ 39 $ 27 $ 11.57
Hardware (except printers)
Password Resets Reset user passwords 5% 1.2 70.0% $ 19 $ 6 $ 13.65
Data Comm./Network
Databases Database troubleshooting 5% 1.1 20.0% $ 18 $ 14 $ 3.60
Password Resets
Service Requests Forward requests for other services 4% 1.1 20.0% $ 17 $ 13 $ 3.31 Databases
Voice Communications Telecommunications 3% 0.7 20.0% $ 10 $ 8 $ 2.07 Service Requests
Printers Printer troubleshooting/repair 2% 0.6 30.0% $ 10 $ 7 $ 2.93 Voice Communications
Others 0% - 30.0% $ - $ - $ - Printers
Total ($ per PC) 25 $ 146 $ 396 $ 251 $ 145.64 Others
Total (% of Total TCO) 100% 36.8%

Server & Network Mgmt Services As-Is TCO Server & Network Mgmt TCO
Manage network communication
Network management infrastructure 12% 4.0 15.0% $ 93 $ 79 $ 13.89 To-Be TCO
0 0 0 0 0 0 0 0 0
Deployment, configuration, administration, $- $2 $4 $6 80 $10 $12 $14 $16 $18 $20
$TCO
Hardware management support 11% 3.6 15.0% $ 85 $ 72 $ 12.74 ($/PC)

Operating system support


Deployment, configuration, administration,
16% 5.3 30.0% $ 124 $ 86 $ 37.05 Network management
support
Hardware management
Deployment, configuration, administration,
Server application mgmt support 24% 8.0 30.0% $ 185 $ 130 $ 55.58 Operating system support
Security
Planning, assessment, patching, issue
14% 4.7 25.0% $ 110 $ 83 $ 27.57 Server application mgmt
remediation
Security
Storage management Storage capacity planning and management 11% 3.6 15.0% $ 85 $ 72 $ 12.74
Storage management
Index management, replication, log Database Mgmt & Admin
Database Mgmt & Admin administration, data recovery, optimization 12% 4.0 15.0% $ 93 $ 79 $ 13.89
Other
Other 0% - 15.0% $ - $ - $ -
Total ($ per PC) 33 $ 173 $ 774 $ 601 $ 173.46
Total (% of Total TCO) 100% 22.4% As-Is TCO Application Development TCO
To-Be TCO
$- $100 $200 $300 $400 $500 $600
Application Development
TCO ($/PC)
Design Needs assessment, conceptual design 6% 2.8 9.0% $ 69 $ 62 $ 6.18 Design
Development Detailed engineering, development 42% 19.9 12.0% $ 480 $ 423 $ 57.66
Development
Testing Test and pilot 22% 10.4 9.0% $ 252 $ 229 $ 22.65
Advanced support and troubleshooting Testing
Support (escalated from help desk) 30% 14.2 12.0% $ 343 $ 302 $ 41.18
Support
Other 0% - 9.0% $ - $ - $ -
Total ($ per PC) 47 $ 128 $ 1,144 $ 1,016 $ 127.67 Other
Total (% of Total TCO) 100% 11.2%

Administration & Other As-Is TCO Administration & Other TCO


Needs assessment, standards To-Be TCO
Planning development, evaluation, business case 19% 4.8 7.0% $ 106 $ 99 $ 7.44
development, project planning $- $20 $40 $60 $80 $100 $120 $140 $160 $180
Purchasing, procurement, and vendor TCO ($/PC)
Purchasing 14% 3.5 21.0% $ 78 $ 62 $ 16.45 Planning
management

Finance Budgeting and chargeback tasks 18% 4.5 28.0% $ 101 $ 73 $ 28.20 Purchasing
Training IT and end-user training 16% 4.0 7.0% $ 90 $ 83 $ 6.27 Finance
Senior management Senior IT management overhead 28% 7.1 7.0% $ 157 $ 146 $ 10.96
Training
Other Administration and other 5% 1.3 7.0% $ 28 $ 26 $ 1.96
Senior management
Total ($ per PC) 25 $ 71 $ 559 $ 488 $ 71.27
Total (% of Total TCO) 100% 12.7% Other

374293471.xls IT Labor 12 of 30
IT Labor TCO and TCO Savings
Summary
IT Labor TCO / 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

FTEs (Full Tim e Equivalents)


TCO per PC per Year

IT Labor TCO Comparison IT Labor Comparison

TCO per PC per Year


$4,000
As-Is TCO To-Be TCO As-Is FTEs To-Be FTEs
47.3
$3,500 $1,400 50.0
Administration &
$559 45.0
Other $1,200
$3,000
42.6 40.0
Application 33.2
$1,000 35.0
$2,500 $488 Development
$1,144 26.8
25.2 25.2 30.0
$800
$2,000 Server & Network 25.0
27.1
$1,016 Mgmt Services $600
22.4 20.0
$1,500 $774 19.5 18.5
Help Desk (Tech $400 15.0

$1,000 Support) 10.0


$601
$396 $200
5.0
Key $500
SoftGrid Benefits $251 PC Management $625 $392 $396 $251 $774 $601 $1,144$1,016 $559 $488
$625 Services $- -
$392 PC Management Help Desk (Tech Server & Network Application Administration &
$- Services Support) Mgmt Services Development Other
As-Is TCO To-Be TCO

Copyright, 2006-2008, Hall Consulting & Research LLC, All Rights Reserved. www.hallcr.com

374293471.xls IT Labor 13 of 30
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 25% $ 100 $ 20 $ 200,000
Application B 15% $ 200 $ 40 $ 240,000
Imaging tools 50% $ 10 $ - $ 25,000
Encryption tools 30% $ 20 $ 90,000
OS virtualization 20% $ 20 $ 60,000
Security Utilities 100% $ 20 $ 300,000
Total $ 300,000 $ 205,000 $ 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


100
Servers

One-Time Annual Costs


Quantity Costs Avoided Avoided 3-Year Total Comments
Business Applications 6 $ 6,000 $ 900 $ 52,200
Back-Up / Recovery 6 $ 200 $ 30 $ 1,740
OS virtualization 4 $ 200 $ 30 $ 1,160
Security Utilities 4 $ 200 $ 30 $ 1,160
Other 2 $ 500 $ 75 $ 1,450
Total $ 39,800 $ 5,970 $ 57,710

Reduce/Avoid Hardware Costs


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

Reduce/Avoid IT Service Costs


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

374293471.xls Direct Savings 14 of 30


Direct Cost Savings
Reduce Power/Electricity Usage Costs
PCs Servers Ann'l Total 3-Year Total Comments
Average Watts per PC/Server 140 800

60 10
Average Watts per monitor (CRT/LCD mix)
Total 200 810
kW-hours per day 3.36 19.20
Electricity cost per kW-hour $ 0.09 $ 0.09
Electricity cost per PC/Server per year $ 110 $ 631
Number of PCs/Servers 5,000 100
% PCs/Servers likely to be impacted by
50% 100%
power saving measures

Average time per day (hours) that power 14 24


will be reduced for impacted PCs/Servers
% reduction in power usage during this
100% 100%
time
Total Benefit per PC/Server $ 32 $ 631
Total $ 160,965 $ 63,072 $ 224,037 $ 672,111

Other IT Cost Avoidance/Reductions


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

Direct Cost Savings - Business

Reduce/Avoid Travel Expenses Comments


# of employees impacted (travel regularly
and are likely to benefit from the proposed 445
solution)
Average number of trips per year currently
5
per impacted employee
% of trips that could be avoided due to the
3%
proposed solution
Trips avoided 67
Cost of average trip $ 1,100
Total Annual Benefit $ 73,355
3-Year Total $ 220,066

Reduce Business Services


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

Reduce Other Business Expenses


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

374293471.xls Direct Savings 15 of 30


Direct Cost Savings
Total $ - $ - $ -

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

Business Savings
Travel Expenses $ 73,355 $ 220,066 $ - $ 15 $ 44
Business Services $ - $ - $ - $ - $ - $ -
Other Business Expenses $ - $ - $ - $ - $ - $ -
Total $ - $ 73,355 $ 220,066 $ - $ 15 $ 44

Total $ 375,800 $ 541,662 $ 2,000,787 $ 75 $ 108 $ 400

Direct Cost Savings


Benefit ($ per PC)

$450

$400 $-
Other Business Expenses
$44
$350 $2
Business Services

$300 Travel Expenses


$134

$250 Other IT Costs

$14 Power/Electricity Usage


$200 $10
$12
IT Services
$150
Hardware
$100 $183 Software - Servers
$50
Software - Clients

$-
3-Year Total

Copyright, 2006-2008, Hall Consulting & Research LLC, All Rights Reserved. www.hallcr.com

374293471.xls Direct Savings 16 of 30


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 Hrs / Wk


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

Time by Business Activity - Summary Time by Business Activity - Individual Computing


Hours per Week

40.0 12.0
Hours per Week

35.0 1.1 Other


Non-Computing- 0.7
10.0
Related Activities
30.0 LOB Application-
15.1 3.5 Related Activities
8.0
25.0 PC Systems
22.8 Management 5.5 Email, Calendar,
20.0 1.4 6.0 Contact, & Task
2.7 Mgmt
15.0 7.4 Collaborative
Computing 4.0 0.8
0.7
1.1 1.1 Data & Information
10.0 0.5 Access/Analysis
11.2 Individual 2.0
5.0 10.5 2.8 2.9
Computing Document Creation
0.0 0.0
Info Wrkr Task Wrkr Info Wrkr Task Wrkr

374293471.xls Productivity 17 of 30
User Productivity Benefits Assessment

Time by Business Activity - Collaborative Computing Time by Business Activity - PC Systems Management
8.0 1.6
eek

eek
Availability &
Hoursper W

Hoursper W
7.0 0.7 1.4 0.1 Reliability
Other
0.1
6.0 1.2 1.2 System UI
0.2
Coordination / Navigation
5.0 1.1 Project Mgmt 1.0 0.2
Security & Privacy
4.0 0.8
Workflow 0.4 0.0 Mobility & Remote
3.0 0.6 0.1 Connectivity
(routing) 0.1
4.4 0.0
2.0 0.4 0.2 Performance
Document 0.5 Support, Self-Help,
1.0 0.1
0.2 Collaboration 0.2
0.3 0.3 & Learning
0.5
0.0 0.0
Info Wrkr Task Wrkr 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 per 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.

Individual Computing Time % Hours / Week Efficiency Time Saved


Task Info Task Improve- Info Task
Activity Info Wrkr Wrkr Wrkr Wrkr ment Wrkr Wrkr Comments
Document Creation
Document general layout/set-up 5% 5% 0.14 0.15 1% 0.00 0.00
Formatting documents 20% 15% 0.56 0.44 4% 0.02 0.02
Searching for functionality "how do I" 10% 5% 0.28 0.15 3% 0.01 0.00
Creating graphics 10% 10% 0.28 0.29 3% 0.01 0.01
Typing, thinking 55% 65% 1.54 1.92 0% 0.00 0.01
Total (Time % must sum to 100%) 100% 100% 2.81 2.95 1% 0.04 0.04
Data & Information Access/Analysis
Internet browsing/viewing 40% 45% 0.45 0.24 3% 0.01 0.01
Searching for documents & folders 20% 15% 0.22 0.08 9% 0.02 0.01
Collecting/combining information 20% 20% 0.22 0.11 8% 0.02 0.01
Finding/accessing/combining data 10% 10% 0.11 0.05 9% 0.01 0.00
Data analysis & reporting 10% 10% 0.11 0.05 9% 0.01 0.00
Total (Time % must sum to 100%) 100% 100% 1.12 0.53 6% 0.07 0.03
Email, Calendar, Contact, & Task Mgmt
Processing email 75% 75% 2.02 0.63 0% 0.00 0.00
Managing calendar, contacts, and tasks 15% 15% 0.40 0.13 0% 0.00 0.00
Note-taking, management 10% 10% 0.27 0.08 0% 0.00 0.00
Total (Time % must sum to 100%) 100% 100% 2.69 0.84 0% 0.00 0.00
LOB Application-Related Activities
Data entry into LOB (line-of-business)
20% 40% 0.70 2.19 10% 0.07 0.22
applications
Using LOB applications (or the predecessor
80% 60% 2.78 3.28 5% 0.14 0.16
activity)
Total (Time % must sum to 100%) 100% 100% 3.48 5.47 3% 0.07 0.22
Other
Development time (macros, VBA, Access) 4% 4% 0.04 0.03 0% 0.00 0.00
Reading, thinking, etc. 96% 96% 1.08 0.71 0% 0.00 0.00
Other 0% 0% 0.00 0.00 0% 0.00 0.00
Total (Time % must sum to 100%) 100% 100% 1.12 0.74 0% 0.00 0.00
Total 11.22 10.52 2% 0.18 0.29

374293471.xls Productivity 18 of 30
User Productivity Benefits Assessment
Collaborative Computing Time % Hours / Week Efficiency Time Saved
Task Info Task Improve- Info Task
Activity Info Wrkr Wrkr Wrkr Wrkr ment Wrkr Wrkr Comments
Document Collaboration
Document collaboration (collaborative authoring,
sharing, reviewing, debating, mark-up, change 60% 60% 2.65 0.30 0% 0.00 0.00
consolidation)
Meetings (document-collaboration-focused) 35% 35% 1.55 0.17 0% 0.00 0.00
Document management 5% 5% 0.22 0.02 0% 0.00 0.00
Total (Time % must sum to 100%) 100% 100% 4.42 0.49 0% 0.00 0.00
Workflow (routing)
Workflow activities paper-based (review,
50% 50% 0.55 0.15 0% 0.00 0.00
approval, routing, signature collection)
Workflow activities - electronic 50% 50% 0.55 0.15 0% 0.00 0.00
Total (Time % must sum to 100%) 100% 100% 1.10 0.29 0% 0.00 0.00
Coordination / Project Mgmt
Document-creation-intensive project
coordination/management (issue tracking, task 70% 70% 0.83 0.11 0% 0.00 0.00
management, document status)
Coordination of other business activities 30% 30% 0.35 0.05 0% 0.00 0.00
Total (Time % must sum to 100%) 100% 100% 1.18 0.16 0% 0.00 0.00
Other
Reporting - Disseminating and managing
70% 90% 0.46 0.09 0% 0.00 0.00
documentation/reports
Social networking (connecting people, sharing
30% 10% 0.20 0.01 0% 0.00 0.00
re-usable knowledge)
Other 0% 0% 0.00 0.00 0% 0.00 0.00
Total (Time % must sum to 100%) 100% 100% 0.66 0.11 0% 0.00 0.00
Total 7.37 1.05 0% 0.00 0.00
Time Saved
PC Systems Management Time % Mins / Week Efficiency (Mins)
Task Info Task Improve- Info Task
Activity Info Wrkr Wrkr Wrkr Wrkr ment Wrkr Wrkr Comments
Support, Self-Help, & Learning
Support time (helpdesk) 20% 20% 5.9 3.4 15% 0.9 0.5
Unproductive resolution lag time (downtime) 15% 15% 4.4 2.5 15% 0.7 0.4
PC upgrade; OS re-install 5% 5% 1.5 0.8 23% 0.3 0.2
Install SW, patches, peripherals, drivers 20% 20% 5.9 3.4 25% 1.5 0.8
Self-help - system "how-to" questions; Peer
40% 40% 11.8 6.7 6% 0.7 0.4
support
Total (Time % must sum to 100%) 100% 100% 29.46 16.84 14% 4.06 2.32
Performance
Processor/HDD response time 30% 30% 6.3 3.2 50% 3.2 1.6
Network/Server response time 30% 30% 6.3 3.2 50% 3.2 1.6
PC start-up, shut-down, resume 40% 40% 8.4 4.2 20% 1.7 0.8
Total (Time % must sum to 100%) 100% 100% 21.05 10.52 38% 8.00 4.00
Mobility & Remote Connectivity
Remote & wireless connectivity, Network issues 20% 20% 2.9 0.5 10% 0.3 0.1

Lost productivity due to dead laptop battery 15% 15% 2.1 0.4 12% 0.3 0.0
Laptop shut-down, start-up, wake/resume 45% 45% 6.4 1.1 12% 0.8 0.1
Time managing/accessing files for off-line use 20% 20% 2.9 0.5 9% 0.3 0.0
Total (Time % must sum to 100%) 100% 100% 14.31 2.53 11% 1.57 0.28
Security & Privacy
Security pre-cautions 90% 90% 9.8 5.7 18% 1.7 1.0
Virus, adware and other security issues 5% 5% 0.5 0.3 25% 0.1 0.1
Intrusion, unauthorized use, data loss 5% 5% 0.5 0.3 25% 0.1 0.1
Total (Time % must sum to 100%) 100% 100% 10.94 6.31 18% 1.99 1.15
System UI Navigation
User Interface navigation 75% 75% 3.8 2.5 18% 0.7 0.4
Change system settings, preferences 25% 25% 1.3 0.8 18% 0.2 0.1
Total (Time % must sum to 100%) 100% 100% 5.05 3.37 18% 0.88 0.59
Availability & Reliability
Recovering from crashes/conflicts 70% 70% 2.4 1.8 35% 0.8 0.6
Rework due to lost work 30% 30% 1.0 0.8 35% 0.4 0.3
Total (Time % must sum to 100%) 100% 100% 3.37 2.53 35% 1.18 0.88
Total (Hours per Week) 1.40 0.70 21% 0.29 0.15
Non-Computing-Related Activities 15.08 22.80 0% 0.00 0.00
Total 35.1 35.1 1% 0.5 0.4

374293471.xls Productivity 19 of 30
User Productivity Benefits Assessment
Summary of Productivity Improvements (Time Saved)
The table below summarizes time saved by business activity category.

Info Workers Task Workers Total (Weighted Average)


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

Summary
Individual Computing 11.2 11.0 0.18 2% 10.5 10.2 0.29 3% 10.8 10.6 0.2 2%
Collaborative Computing 7.4 7.4 0.00 0% 1.1 1.1 0.00 0% 3.9 3.9 0.0 0%
PC Systems Management 1.4 1.1 0.29 21% 0.7 0.5 0.15 22% 1.0 0.8 0.2 21%
Non-Computing-Related Activities 15.1 15.1 0.00 0% 22.8 22.8 0.00 0% 19.4 19.4 0.0 0%
Total 35.1 34.6 0.5 1.4% 35.1 34.6 0.4 1.3% 35.1 34.6 0.5 1.3%

Summary Individual Computing


0.0 5.0 10.0 15.0 20.0 25.0 0.0 1.0 2.0 3.0 4.0 5.0

10.8 Document Creation 2.9


Individual Computing 2.8
10.6

Time (Hours / Week) Data & Information Access/Analysis 0.8


3.9 Time (Hours0.7
/ Week)
Collaborative Computing As-Is As-Is
3.9
To-Be To-Be
Email, Calendar, Contact, & Task Mgmt 1.7
1.7
1.0
PC Systems Management
0.8 4.6
LOB Application-Related Activities 4.4
19.4
Non-Computing-Related Activities Other 0.9
19.4 0.9

Collaborative Computing PC Systems Management


0.0 0.5 1.0 1.5 2.0 2.5 0.0 0.1 0.1 0.2 0.2 0.3 0.3 0.4 0.4

Support, Self-Help, & Learning 0.4


2.2 0.3
Document Collaboration
2.2
Performance 0.3
0.2
Time (Hours / Week) Time (Hours / Week)
0.7 As-Is As-Is
Workflow (routing) 0.1
0.7 Mobility & Remote Connectivity 0.1
To-Be To-Be

Security & Privacy 0.1


0.6 0.1
Coordination / Project Mgmt
0.6
0.1
System UI Navigation 0.1
0.4
Other 0.0
0.4 Availability & Reliability 0.0

374293471.xls Productivity 20 of 30
User Productivity Benefits Assessment
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 Adjusted
Info Wrkr Wrkr Avg Adjusted (Per PC)

Annual Productivity Benefits ($/PC)


Individual Computing
Document Creation $ 110 $ 74 $ 90 $ 45 $ 45
Data & Information Access/Analysis $ 189 $ 66 $ 121 $ 60 $ 60
Email, Calendar, Contact, & Task Mgmt $ - $ - $ - $ - $ -
LOB Application-Related Activities $ 186 $ 460 $ 338 $ 169 $ 169
Business Value of Productivity Benefits
Other $ - $ - $ - $ - $ -
Total $ 484 $ 600 $ 549 $ 274 $ 274 $600
Collaborative Computing
Document Collaboration $ - $ - $ - $ - $ - $500 PC Systems
Management
Workflow (routing) $ - $ - $ - $ - $ -
$400 $265
Coordination / Project Mgmt $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ - Collaborative
$300 Computing
Total $ - $ - $ - $ - $ - $-
PC Systems Management
$200
Support, Self-Help, & Learning $ 181 $ 81 $ 125 $ 63 $ 63
Individual
Performance $ 356 $ 140 $ 236 $ 118 $ 118 $274 Computing
$100
Mobility & Remote Connectivity $ 70 $ 10 $ 36 $ 18 $ 18
Security & Privacy $ 89 $ 40 $ 62 $ 31 $ 31
$-
System UI Navigation $ 39 $ 21 $ 29 $ 14 $ 14
Availability & Reliability $ 52 $ 31 $ 41 $ 20 $ 20
Total $ 787 $ 323 $ 529 $ 265 $ 265
Non-Computing-Related Activities $ - $ - $ - $ - $ -
Total $ 1,271 $ 923 $ 1,078 $ 539 $ 539

Summary
Individual Computing $ 484 $ 600 $ 549 $ 274 $ 274
Collaborative Computing $ - $ - $ - $ - $ -
PC Systems Management $ 787 $ 323 $ 529 $ 265 $ 265
Non-Computing-Related Activities $ - $ - $ - $ - $ -
Total $ 1,271 $ 923 $ 1,078 $ 539 $ 539

Copyright, 2006-2008, Hall Consulting & Research LLC, All Rights Reserved. www.hallcr.com

374293471.xls Productivity 21 of 30
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 impacts can be difficult to accurately assess.
Research, analysis, and supplemental modeling is likely needed to credibly estimate true revenue impacts. One key is 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 model 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 operating profit, not gross margin: in the long run, on average, fixed costs
tend to increase at the same rate as revenue growth.

Segment Revenue Revenue Increase Driver %

Channels/Geograph
Customer Service

Products/Services

Improved Product
Improved Sales

New/Expanded

New/Enhanced

Availability (fill
rate, up-time)
Efectiveness

Efectiveness
Marketing
Improved

Improved
Profit
Addressed Segments (products, Revenue Margin

Other
channels, geographies, business (% of (% of Annual

ies
unit, and/or markets) Total) Revenue ($000) Sales) Benefit ($000) Comments
Segment A1 3.0% $ 117,744 10.3% 1.5% 0.0% 0.5% 0.0% 0.0% 0.0% 0.0% $ 243
Segment A2 3.0% $ 117,744 10.3% 1.5% 0.0% 0.5% 0.0% 0.0% 0.0% 0.0% $ 243
Segment A3 3.0% $ 117,744 10.3% 1.5% 0.0% 0.5% 0.0% 0.0% 0.0% 0.0% $ 243
Segment A4 2.0% $ 78,496 10.3% 1.5% 0.0% 0.5% 0.0% 0.0% 0.0% 0.0% $ 162
Segment B1 2.0% $ 78,496 10.3% 1.5% 0.0% 0.5% 0.0% 0.0% 0.0% 0.0% $ 162
Segment B2 2.0% $ 78,496 10.3% 1.5% 0.0% 0.5% 0.0% 0.0% 0.0% 0.0% $ 162
Segment B3 2.0% $ 78,496 10.3% 1.5% 0.0% 0.5% 0.0% 0.0% 0.0% 0.0% $ 162
Segment B4 1.0% $ 39,248 10.3% 1.5% 0.0% 0.5% 0.0% 0.0% 0.0% 0.0% $ 81
Segment C1 1.0% $ 39,248 10.3% 1.5% 0.0% 0.5% 0.0% 0.0% 0.0% 0.0% $ 81
Segment C2 1.0% $ 39,248 10.3% 1.5% 0.0% 0.5% 0.0% 0.0% 0.0% 0.0% $ 81
Segment C3 1.0% $ 39,248 10.3% 1.5% 0.0% 0.5% 0.0% 0.0% 0.0% 0.0% $ 81
Segment C4 1.0% $ 39,248 10.3% 1.5% 0.0% 0.5% 0.0% 0.0% 0.0% 0.0% $ 81
All Other (Not Impacted) 78.0% $ 3,061,348 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% $ -
Total 100% $ 3,924,805 2.3% $ 1,784

Summary
The table and graph below summarize the annual revenue gain and margin on the revenue gain (the benefit).

Annual Benefit per PC


Benefit
Revenue ($000) Margin ($000) ($ per PC)
Improved Sales Effectiveness
Improved Marketing Effectiveness
$
$
12,952
-
$
$
1,338
-
$
$
268
-
Revenue Growth (Margin)
Improved Customer Service $ 4,317 $ 446 $ 89 $400
Other
New/Expanded Channels/Geographies $ - $ - $ - $350 $-
Improved Product
New/Enhanced Products/Services $ - $ - $ - $89 Availability (fill rate, up-
$300 time)
Improved Product Availability (fill rate, up-time) $ - $ - $ -
$- New/Enhanced
$250 Products/Services
Other $ - $ - $ -
Total (Annual) $ 17,269 $ 1,784 $ 357 $200 New/Expanded
Total (3-Year) $ 51,807 $ 5,351 $ 1,070 Channels/Geographies
$150 Improved Customer
$268 Service
$100 Improved Marketing
Effectiveness
$50 Improved Sales
Effectiveness
$-
Benefit
($ per PC)

Copyright, 2006-2008, Hall Consulting & Research LLC, All Rights Reserved. www.hallcr.com

374293471.xls Revenue 22 of 30
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 Organization Performance


Values Percentile KPI Value
World Improve-
Business Objective KPI / Metric Laggard Class As-Is To-Be As-Is To-Be ment % Comments
Sales/Marketing Performance
Close rate (% of qualified sales
Customer Acquisition 15% 19% 30% 30% 16% 16% 0%
opportunities)
Customer Retention Customer annual turnover (%) 12% 10% 30% 30% 11% 11% 0%
% of customers that are highly satisfied
Customer Satisfaction 30% 95% 40% 40% 56% 56% 0%
when surveyed
Sales-based document
Time to respond to RFP (days) 10.0 5.0 30% 30% 8.5 8.5 0%
collaboration Efficiency
Business Management Effectiveness
Decision-Making Speed / Days to accumulate information, analyze,
Reaction Time to Market collaborate, decide, plan (for information- 10.0 5.0 30% 30% 8.5 8.5 0%
Event/Opportunity intensive decisions)
% of analytical data easily accessible to
Business Visibility 15% 75% 30% 30% 33% 33% 0%
authorized decision-makers
% of org. with auto-updated KPIs linked to
Business Alignment 15% 75% 30% 30% 33% 33% 0%
corporate objectives
Decision-Making
Decision success rate % 65% 75% 30% 30% 68% 68% 0%
Efectiveness
Information Availability % of desired information readily available 30% 60% 30% 30% 39% 39% 0%
% of analytical data with single trusted
Information Quality 30% 75% 30% 30% 44% 44% 0%
access point
Months to complete analysis, workflows,
Mergers & Acquisition
due diligence, regulatory approvals, legal 5.0 3.0 50% 50% 4.0 4.0 0%
Analysis Speed
docs, etc.
Supply/Operations Performance
Quality of Customer preference vs. competitive
30% 70% 30% 30% 42% 42% 0%
Products/Services products % (e.g. blind taste test)
# of process/product/service defects/errors
Defect rate 45.0 2.0 50% 50% 23.5 23.5 0%
per 1000
Forecast Accuracy Avg forecast error % 25% 13% 30% 30% 21% 21% 0%
Supply Chain
On-time delivery 90% 95% 30% 30% 91% 91% 0%
Efectiveness
Cash Cycle Time Days 30.0 24.0 30% 30% 28.2 28.2 0%
Project management % of document-intensive projects that
50% 70% 30% 30% 56% 56% 0%
efectiveness complete on-time / on-budget
Technology Effectiveness
% of electronic content (shared
Records Compliance
documents, reports, web content, email)
(centralized content 30% 99% 30% 50% 51% 65% 27%
that is controlled (retention, security,
control)
reuse, storage) centrally
Service Level Agreement
SLA achievement % 10% 90% 40% 70% 42% 66% 57%
Performance
Maturity Level Best practice adoption % 10% 90% 40% 70% 42% 66% 57%
Average system (local/LAN/WAN) response
System response time 3.0 0.2 50% 80% 1.6 0.8 53%
delay (Seconds)
Time (days) to deliver applications; time to
Application delivery agility 120.0 35.0 50% 80% 77.5 52.0 33%
start delivery
User computing % of users that are highly satisfied when
30% 95% 40% 60% 56% 69% 23%
experience satisfaction surveyed
Security # of vulnerabilities (reduce attack surface) 50.0 20.0 40% 70% 38.0 29.0 24%

374293471.xls KPIs 23 of 30
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 KPI value % improvement, it shows the percentile
point improvement.
Percentile
As-Is To-Be Imp.
Sales/Marketing Performance 33% 33% 0%
Business Management Effectiveness 33% 33% 0%
Supply/Operations Performance 33% 33% 0%
Technology Effectiveness 41% 69% 27%
Average 35% 42% 7%
Performance Percentile

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

Laggard

Copyright, 2006-2008, Hall Consulting & Research LLC, All Rights Reserved. www.hallcr.com

374293471.xls KPIs 24 of 30
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

C o st s & B e n efi t s ($ / P C )
and the total for the organization.

Organization Total
Per PC ($000)
Costs (3-Yr) $ 1,743 $ 8,716
Benefits (3-Yr) $ 5,339 $ 26,697 Total Costs Vs Benefits
Net Benefits $ 3,596 $ 17,982 $6,000
NPV (Net Present Value) $ 2,782 $ 13,908 $5,000
ROI (Return on Investment) - [Total Net
206% $4,000
Benefits / Total Costs]
$3,000
IRR (Internal Rate of Return) 124% $5,339
Payback Period 9 Months $2,000
Number of PCs 5000 $1,000 $1,743
$-
Costs (3-Yr) Benefits (3-Yr)

Costs & Benefits ($ per PC) Costs & Benefits ($000)


Annual On- 3-Year Annual On-
One-Time Going Total One-Time Going 3-Year Total
Costs $ 1,242 $ 167 $ 1,743 $ 6,210 $ 835 $ 8,716
Benefits $ 75 $ 1,755 $ 5,339 $ 376 $ 8,774 $ 26,697

Initiative Cost Summary Initiative Benefit Summary


Benefits ($ per PC)
Costs ($ per PC)

$2,000 (per PC $6,000 (per PC


$1,800
End-User Labor & Revenue Growth
$1,600 $5,000
$343 Training $1,070
$1,400 User Productivity
$4,000
$268 Benefits
$1,200 IT Labor, Services, & $1,616
$253 Training
$1,000 $3,000
$800 $400 Other Direct Cost
Savings
Software $2,000
$600
$400 $879
$1,000 $2,253 IT Labor/Services
$200 Hardware TCO Savings
$- $-
3-Year Total 3-Year Total

Cost Summary
Below are the initial design/development/deployment and added annual on-going costs required to fully deploy, adopt and support the initiative.
Additional details can be found below and on the "Cost" worksheet.

Costs ($ per PC) Costs ($000)


Annual On- 3-Year Annual On-
One-Time Going Total One-Time Going 3-Year Total
Hardware $ 606 $ 91 $ 879 $ 3,030 $ 455 $ 4,394
Software $ 150 $ 34 $ 253 $ 748 $ 172 $ 1,265
IT Labor, Services, & Training $ 213 $ 18 $ 268 $ 1,067 $ 91 $ 1,340
End-User Labor & Training $ 273 $ 24 $ 343 $ 1,364 $ 118 $ 1,717
Total $ 1,242 $ 167 $ 1,743 $ 6,210 $ 835 $ 8,716

374293471.xls ROI 25 of 30
Financial Analysis
Benefits Summary
Below are the benefits enabled by the initiative. The detailed calculations are below and on the green benefit tabs.

Benefits ($ per PC) Benefits ($000)


Annual On- 3-Year Annual On-
Benefit Summary One-Time Going Total One-Time Going 3-Year Total
IT Labor/Services TCO Savings $ - $ 751 $ 2,253 $ - $ 3,755 $ 11,264
Other Direct Cost Savings $ 75 $ 108 $ 400 $ 376 $ 542 $ 2,001
User Productivity Benefits $ - $ 539 $ 1,616 $ - $ 2,694 $ 8,082
Revenue Growth $ - $ 357 $ 1,070 $ - $ 1,784 $ 5,351
Total $ 75 $ 1,755 $ 5,339 $ 376 $ 8,774 $ 26,697

Benefit Sub-Categories
IT Labor/Services TCO Savings $ - $ 751 $ 2,253 $ - $ 3,755 $ 11,264
Other Direct Cost Savings
IT Savings $ 75 $ 94 $ 356 $ 376 $ 468 $ 1,781
Business Savings $ - $ 15 $ 44 $ - $ 73 $ 220
Total $ 75 $ 108 $ 400 $ 376 $ 542 $ 2,001
User Productivity Benefits
Individual Computing $ - $ 274 $ 823 $ - $ 1,372 $ 4,115
Collaborative Computing $ - $ - $ - $ - $ - $ -
PC Systems Management $ - $ 265 $ 794 $ - $ 1,323 $ 3,968
Total $ - $ 539 $ 1,616 $ - $ 2,694 $ 8,082
Revenue Growth $ - $ 357 $ 1,070 $ - $ 1,784 $ 5,351
Total $ 75 $ 1,755 $ 5,339 $ 376 $ 8,774 $ 26,697

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.

Initial Year 1 Year 2 Year 3 Year 4 Year 5 Total NPV


Costs $ 1,242 $ 167 $ 167 $ 167 $ - $ - $ 1,743 $ 1,657
Benefits $ 75 $ 1,755 $ 1,755 $ 1,755 $ - $ - $ 5,339 $ 4,439
Net Benefits $ (1,167) $ 1,588 $ 1,588 $ 1,588 $ - $ - $ 3,596 $ 2,782
Cumulative Cash Flow $ (1,167) $ 421 $ 2,009 $ 3,596 $ 3,596 $ 3,596
C u m u lati ve C ash F low ($ / P C )

Payback Period (Months) 9

Cumulative Cash Flow


$4,000

$3,000

$2,000

$1,000

$-

$(1,000)

$(2,000)
0 1 2 Year 3 4 5

374293471.xls ROI 26 of 30
Financial Analysis
Cost Details
The table/chart below provide additional cost details.
Costs ($ per PC) Costs ($000)
Annual On- 3-Year Annual On-
Cost / Benefit Category One-Time Going Total One-Time Going 3-Year Total
Hardware
Client Hardware $ 600 $ 90 $ 870 $ 3,000 $ 450 $ 4,350
Server Hardware $ 6 $ 1 $ 9 $ 30 $ 5 $ 44
Total $ 606 $ 91 $ 879 $ 3,030 $ 455 $ 4,394
Software
Client Software $ 143 $ 33 $ 242 $ 715 $ 164 $ 1,208
Server Software $ 7 $ 2 $ 11 $ 33 $ 8 $ 56
Total $ 150 $ 34 $ 253 $ 748 $ 172 $ 1,265
IT Labor, Services, & Training
One-time Implementation Labor/Services $ 151 $ - $ 151 $ 753 $ - $ 753
Annual On-Going Labor/Services $ - $ 18 $ 55 $ - $ 91 $ 273
Incremental Help Desk Calls $ 11 $ - $ 11 $ 54 $ - $ 54
IT Training $ 52 $ - $ 52 $ 261 $ - $ 261
Total $ 213 $ 18 $ 268 $ 1,067 $ 91 $ 1,340
End-User Labor & Training
End-User Labor $ 60 $ 24 $ 130 $ 299 $ 118 $ 652
End-User Training $ 213 $ - $ 213 $ 1,066 $ - $ 1,066
Total $ 273 $ 24 $ 343 $ 1,364 $ 118 $ 1,717

Total Costs $ 1,242 $ 167 $ 1,743 $ 6,210 $ 835 $ 8,716

Total Implementation Costs


Total Costs ($ per PC)

(Per PC)
$2,000
End-User Training
$1,800
End-User Labor
$1,600 $213
IT Training
$130
$1,400 $52
$11
$55 Incremental Help Desk
$151 Calls
$1,200
$11 Annual On-Going
$1,000 $242 Labor/Services
$9
$800 One-time Implementation
Labor/Services
$600
Server Software
$400 $870
Client Software
$200 Server Hardware

$- Client Hardware
3-Year Total

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Financial Analysis
Benefit Details
The tables/charts below provide additional details regarding each of the four quantified benefit types.

IT Labor/Services TCO Savings


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

FT Es (F u ll Tim e Eq uivalen ts)


IT Labor TCO Comparison
TCO per PC per Year

IT Labor Comparison

TCO p er PC p er Year
$4,000

As-Is TCO To-Be TCO As-Is FTEs To-Be FTEs


$3,500
47.3
Administration & $1,400 50.0
$559
Other 45.0
$3,000
$1,200
42.6 40.0
Application 33.2
$2,500 $488 Development $1,000 35.0
$1,144
26.8 30.0
$800 25.2 25.2
$2,000
Server & Network
25.0
$1,016 Mgmt Services 27.1
$600
$1,500 22.4 20.0
$774
Help Desk (Tech 19.5
$400 18.5 15.0
$1,000 Support)
$601 10.0
$396 $200
PC Management 5.0
$500 $251
Services $625 $392 $396 $251 $774 $601 $1,144$1,016 $559 $488
$625 $- -
$392 PC Management Help Desk (Tech Server & Network Application Administration &
$- Services Support) Mgmt Services Development Other
As-Is TCO To-Be TCO

Other Direct Cost Savings


Benefits ($ per PC) Benefits ($000)
Annual On- 3-Year Annual On-
One-Time Going Total One-Time Going 3-Year Total
IT Savings
Software - Clients $ 60 $ 41 $ 183 $ 300 $ 205 $ 915
Software - Servers $ 8 $ 1 $ 12 $ 40 $ 6 $ 58
Hardware $ 7 $ 1 $ 10 $ 36 $ 5 $ 52
IT Services $ - $ 5 $ 14 $ - $ 24 $ 72
Power/Electricity Usage $ - $ 45 $ 134 $ - $ 224 $ 672
Other IT Costs $ - $ 1 $ 2 $ - $ 4 $ 12
Total $ 75 $ 94 $ 356 $ 376 $ 468 $ 1,781
Business Savings
Travel Expenses $ - $ 15 $ 44 $ - $ 73 $ 220
Business Services $ - $ - $ - $ - $ - $ -
Other Business Expenses $ - $ - $ - $ - $ - $ -
Total $ - $ 15 $ 44 $ - $ 73 $ 220

Total Other Direct Cost Savings $ 75 $ 108 $ 400 $ 376 $ 542 $ 2,001

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Financial Analysis

Direct Cost Savings

Benefit ($ per PC)


$450

$400 $-
Other Business Expenses
$44
$350 $2
Business Services

$300 Travel Expenses


$134

$250 Other IT Costs

$14 Power/Electricity Usage


$200 $10
$12
IT Services
$150
Hardware
$100 $183 Software - Servers
$50
Software - Clients

$-
3-Year Total

User Productivity Benefits


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

Total User Productivity Benefits $ - $ 383 $ 1,148 $ - $ 1,913 $ 5,738


Annual Productivity Benefits ($/PC)

Time per Activity


0.0 5.0 10.0 15.0 20.0 25.0
Business Value of Productivity Benefits
10.8
Individual Computing
10.6 $600
Time (Hours / Week)
3.9 $500 PC Systems
Collaborative Computing As-Is Management
3.9
To-Be $400 $265

Collaborative
1.0 $300 Computing
PC Systems Management $-
0.8
$200
Individual
19.4 $274 Computing
Non-Computing-Related Activities $100
19.4
$-

374293471.xls ROI 29 of 30
Financial Analysis
Revenue Growth
Benefits ($ per PC) Benefits ($000)
Annual On- 3-Year Annual On-
One-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 Benefit per PC

Annual Revenue Growth (Margin)


$400

$350 $- Other

$89 Improved Product Availability (fill


$300
rate, up-time)
$-
$250
New/Enhanced Products/Services
$200
New/Expanded
$150 Channels/Geographies
$268
$100 Improved Customer Service

$50 Improved Marketing Effectiveness

$- Improved Sales Effectiveness


Benefit
($ per PC)

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 category. 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 is expected to improve
KPI performance due to the solution. Additional details can be found in the "KPIs" worksheet.

Percentile
Improve-
As-Is To-Be ment
Sales/Marketing Performance 32.5% 32.5% 0.0%
Business Management Effectiveness 32.9% 32.9% 0.0%
Supply/Operations Performance 33.3% 33.3% 0.0%
Technology Effectiveness 41.4% 68.6% 27.1%
Average 35.0% 41.8% 6.8%
Perform ance Percentile

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

Laggard

Copyright, 2006-2008, Hall Consulting & Research LLC, All Rights Reserved. www.hallcr.com

374293471.xls ROI 30 of 30

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