1. EDRMS Implementations: Case Study & Business Case Comparison iCognition Pty Ltd Presenter: Nigel Carruthers-Taylor, Managing Director

2. ACCC Case Study
iCognition won a tender for a ‘TRIM Interface’ for Australian Competition & Consumer Commission (ACCC)
Single portal to access and manage ALL information
Implementation of an Enterprise Information Solution (850 staff in 9 sites nationally)
Centralised virtual environment
iCognition won a tender to implement an Enterprise Information Solution.
ACCC: 850 staff with 9 offices nationally
‘TRIM Interface’ as single portal to access and manage all information
every electronic object goes into the system
Uses a centralised virtual environment

3. Line-of-business Systems
ACCC’s Vision
Regional
File Servers
Stores
Archive
Central
File Servers
Intranet
Existing EDRMS
Line-of-business Systems

4. Line-of-business Systems
ACCC’s Vision
Virtual Environment
Stores
Archive
Regional
File Servers
New EDRMS
Central
File Servers
Intranet
Line-of-business Systems
Existing EDRMS

5. An Enterprise Information Implementation
Virtual Environment
Automated capture of ALL s
(Diem Capture)
Stores
‘DORIS’ Interface
(Diem Portal)
New EDRMS
Intranet
Documents
‘Scratch Space’ for drafts
(My Documents + Diem Folder Monitor)
Staff
Items and Documents
Can be accessed via DORIS
User is reminded to
Store into TRIM
New ‘items’
Line-of-business Systems
Document is deleted
after 3 days

6. Others have enterprise info management
Australian Crime Commission
same as ACCC except no auto capture
only a few units exempt
Catholic Education Office Canberra-Goulburn
admin documents only
network drives restricted
HR documents next
Australian Crime Commission
same as ACCC except no auto capture
a few small business units are exempt (special apps used)
Catholic Education Office Canberra-Goulburn
admin documents are captured
network drives turned off
HR documents in next phase

7. CIO This approach Change management issues migrating all documents
‘browse’ vs ‘search’ paradigm
access to other applications
“You’re going to capture ALL my documents & s??!!”
CIO
There are major change management issues
migrating documents creates anxiety
‘where’s my document gone!?’
change from browse paradigm to search paradigm
limitations in access to other applications
“you’re going to capture ALL my s??!!”
So, is the change worth it?

8. Lets compare it using this method.....
EDRMS cost-benefit analysis for 500 staff
5 year Total Cost of Ownership (TCO) model
Quantify costs and benefits where appropriate
Unquantifiable benefits identification
Major risks and issues

9. EDRMS business case options
Records Management implementation
enterprise-wide (available on all desktops)
only capture corporate records
Business-specific implementation
business unit or business process specific e.g. Ministerial or claims processing
Enterprise Information implementation
enterprise-wide
capture all, or the majority, of documents and records

10. Option 1: Records Management (RM) implementation
Most common implementation type
Existing business processes and information stores
Register document when ‘finalising’, approving, ing or archiving documents, or creating vital records.
Most common implementation type in Australia
Users continue existing business processes and use existing information stores
Register document when ‘finalising’, approving, ing or archiving documents, or creating vital records.

11. RM implementation 5 year TCO
Item
Year 1 ‘000
Year 2 ‘000
Year 3 ‘000
Year 4 ‘000
Year 5 ‘000
Total ‘000
Software licences
$375
Software maintenance costs
$75
Scanning software
$22 $2
$30
Scanning hardware
$15 $1
$19
Hardware costs
$50 $5
$70
Database costs
$97
$16
$161
Third party implementer costs
$150 $0
$250
Migration costs
Vendor training costs
$40
$10 $6
$56
Ongoing support costs - vendor
$20
$80
Ongoing support costs - DBA contractor
$36
$18
$108
Internal project team
$208
$116
$670
Travel and living
Other - eg. Incidental software and utilities $3
Raw total
$1,088
$318
$314
$255
$2,228
Risk & contingency (10%)
$109
$32
$31
$25
$223
TOTAL (ex GST)
$1,197
$349
$345
$280
$2,451

12. RM implementation 5 year benefits
Direct Savings
Year 1 '000
Year 2 000
Year 3 '000
Year 4 '000
Year 5 '000
Total
‘000
Reduction percent 0%
10%
15%
Reduction in offsite storage cost $0 $8
$11
$38
20%
Reduction in printing costs
$37
$55
$73
$238
TOTAL
$44
$62
$84
$275
Productivity and Efficiency Savings
25%
Reduction in onsite storage cost
$42
$53
$189
Achievable target
30%
40%
50%
60%
70%
Staff efficiency productivity benefits
$292
$390
$487
$585
$682
$2,437
$293
$432
$530
$638
$735
$2,626

13. Productivity & efficiency savings
Item
Best Case
Worst Case
Likely Case (Av.)
Employees
500
Minutes/day saved 20 5
12.5
Average salary
$65,495
Working days/year
261
Working minutes/day
420
Salary costs per minute
$0.60
Productivity benefit after 1 year
$1,559,405
$389,851
$974,628

14. Non-quantifiable benefits & issues
Reduction in compliance risks
Filing time and ‘wait time’ reduction
Staff can continue existing business processes.
Records repository only contains relevant information
30-70% usage means many records are missing...
Reduction in compliance risks
Records repository only contains relevant information
Although user take-up is low (30-70%)
Staff can continue existing business processes
Change management effort is low

15. Option 1: RM implementation findings
Quantifiable analysis is ‘line ball’
benefits minus costs = $445,000
Net Present Value (NPV) = only $184,000
benefit/cost ratio = 1.09
Non-quantifiable benefits are the key
compliance issues
business efficiencies
Large organisations’ NPV would improve if:
project staffing costs kept to minimum level
majority of staff have access.
Project is ‘line ball’ purely on quantifiable terms
Non-quantifiable benefits are key to a strong business case.
compliance issues and business efficiencies are key
NPV would improve for large or very large organisations, so long as:
project staffing costs are maintained at minimum level required
majority of staff have access

16. Option 2: Business-specific implementation
Common in private industry
Claims or investment processing
Used in government
Ministerial or executive correspondence
Cost-benefit influenced by % staff using solution.
Common in private industry organisations
Claims or investment processing
Also used in Government
Ministerial or Executive Correspondence
Cost-Benefit heavily influenced by what % of organisation uses the solution

17. Business-specific costs & benefits
Costs and benefits similar to Option 1 RM Implementation except for:
Reduced licences, implementation and support costs
Narrower focus results in reduction of efficiencies and savings.
Costs
same cost model as RM Implementation
reduced number of licences, implementation and support costs
Benefits
similar model as RM Implementation
narrower focus results in reduction of efficiencies and savings

18. Option 2: Business-specific findings
Quantified analysis is negative
Net Present Value = minus $309,000
Internal rate of return = minus 0.16
Investment cost is high for a limited scope
Only consider this option for strong non-quantifiable business cases
client service improvement is critical
responses to key stakeholders or clients must be faster and more effective.

19. Option 3: Enterprise Information Implementation
Agencies such as ACCC, ACC & CEO
Very few staff are exempt; 100% utilisation (or close)
All documents in EDRMS
Limited/no access to other info repositories
Reduce existing file servers.

20. Enterprise info implementation costs & benefits
Higher costs for migration, technical and business services, and change management
Productivity & efficiency benefits are appreciably higher
Compliance risks significantly reduced
but draft & ephemeral info in system
Storage growth reducing
Progress toward ‘Green IT’ .
Costs same as RM Implementation, but
Higher migration, technical and business services, and change management costs
internal project team needs to be bigger
Productivity & efficiency benefits are much higher
Compliance risks significantly reduced
ability to make significant steps toward ‘Green IT’
“the [Enterprise Information] solution was a major contribution to the ACC decommissioning 71 file servers”, ACC CTO

21. Enterprise info implementation costs & benefits
Costs same as RM Implementation, but
Higher migration, technical and business services, and change management costs
internal project team needs to be bigger
Productivity & efficiency benefits are much higher
Compliance risks significantly reduced
ability to make significant steps toward ‘Green IT’
“the [Enterprise Information] solution was a major contribution to the ACC decommissioning 71 file servers”, ACC CTO
Minister Tanner presents Computers Off
certification to ACC CEO Mr John Lawler APM
“The [Enterprise Information] solution was a major contribution to the ACC decommissioning 71 file servers” ACC CTO

22. Option3: Enterprise info implementation findings
Quantified analysis result is significant
net present value = $2,437,000
benefit/cost ratio = 2.00
internal rate of return = 1.66
Quantified analysis result is significant
Net Present Value of $2,437,000
Benefit/cost ratio of 2.00
Internal Rate of Return of 1.66
Change Management process is significant
organisation needs to be committed
support needs to be strong
implementation needs to match culture
interface needs to make sense to users

23. Internal rate of return
In conclusion
Enterprise Implementation is a clear winner ...
An order of magnitude better!
Option
Net present value
Cost-benefit ratio
Internal rate of return
OPTION 0: Do Nothing
($1,009,000)
(2.80) -
OPTION 1: Records Management Implementation
$184,000
1.09
0.14
OPTION 2: Business-specific Implementation
($309,000)
0.78
(0.16)
OPTION 3: Enterprise Information Implementation
$2,437,000
2.00
1.66

24. But... Change management process is significant
organisational commitment
strong support
transition processes
‘intuitive’ interface essential.
Very large or disparate organisations
explore other implementation options
logistical effort required
seek maximum solution coverage
Only do enterprise implementation if there is organisational commitment
For very large or disparate organisations
other implementation options may be easier
logistical effort required is significant
ensure maximum solution coverage to get a return on investment.

25. Thank you www.diemsolutions.com
‘EDRMS Business Case White Papers’ available:
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