sharepointsaturdaystl.com Matthew Bowers

2 | SharePoint Saturday St. Louis 2014

3 | SharePoint Saturday St. Louis 2014

Bio Matthew Bowers – – Covenant Technology Partners – Partner – Infrastructure Architect (SharePoint and CRM) – Project Manager – Practice Manager (CRM and Cloud) – 12 years CIO / CTO experience – 21 plus years in corporate IT

Engage the Business!

Why Does SharePoint Matter? Does SharePoint Matter?

SharePoint Doesn’t Matter! Business Matters! Why is a business in … well… business? What is the relationship between – Risk – Value Will SharePoint increase value and decrease risk?

Ask Yourself Some thought provoking questions Is this an IT or a business project? Who “owns” the project? Who “owns” the processes? Who will “own” the environment when complete? How will management of the environment take place?

Other questions… How will you measure success of the project? What are your KPIs for success? Why do projects fail? Why SharePoint?

How Will SharePoint Support The Business? People Devices Social Cloud? Control? Governance? Security? Other areas? What are people doing today, that they were not doing in 2006? 2007?

Consumerization of IT What is the role of this trend in SharePoint adoption? Who drives? What drives your business? What drives requirements? Understanding what has made this important Understanding why it is relevant

Why Does SharePoint Fail Politics Not knowing what SharePoint is Lack of information and knowledge management skills Vision, the business case, and measuring success Executive support User adoption Individual choices derail SharePoint initiatives Information Management Defining requirements Technical skills

Why Does SharePoint Fail No Vision Statement False expectations Showcasing features instead of building solutions Lack of proper planning Lack of proper staffing Undefined success measurement No adequate support Ambiguous requirements Poor stakeholder involvement Poor communication Lack of governance

Why Does SharePoint Fail Almost ALL of the above go back to 2 broad categories Business engagement User adoption

Failed Approaches Field of Dreams Network Nazi Usually when IT is driving!

How To Engage the Business Proper project planning Requirements gathering Business analysis and process mapping Steering committee Working committees Departmental Working groups Governance committee Establish BUSINESS VALUE

Establishing Business Value

Methodologies Engaging the Business through approaches to the project Agile Six Sigma / Lean Kaizan JAD Other quality initiatives Establishing the Business Case

What is a Business Case A business case captures the reasoning for initiating a project or task.project Often presented in a well-structured written document May also sometimes come in the form of a short verbal argument or presentation.presentation The logic of the business case is that, whenever resources such as money or effort are consumed, they should be in support of a specific business needlogic resources

What is a Business Case Business cases can range from comprehensive and highly structured, as required by formal project management methodologies, to informal and brief. project management Information included in a formal business case could be the background of the project, the expected business benefits, the options considered (with reasons for rejecting or carrying forward each option), the expected costs of the project, a gap analysis and the expected risks.gap analysis

Why use a Business Case? SharePoint like every business technology is an investment Before making an investment you should always know your expected return Business Case Formulas: – Net Present Value (NPV) – Return on Investment (ROI) – Rate of Return (ROR) – Internal Rate of Return (IRR) – Cost Benefit Analysis

Why use a Business Case Focus requirements/scope on capabilities that will deliver Value Useful for managing scope change Beginning of the Organization Change Management Process – Ensure Users will use the system Level of Precision – Depends on Maturity of the Plan – Organization Culture – what is your culture? – Make and document assumptions

SharePoint Business Scenarios The business doesn’t care about SharePoint Intranet – Collaboration – Communication – Content Management/Search – BI – Forms/Workflow Extranet Public Facing Websites

SharePoint Business Scenarios Upgrade – Functional Enhancement – Consolidation Point Solutions – HR Portals – M&A Portals – Board Portals – Product Development Portals – Workflow Solutions

Identifying the Business Problem Enterprise Search End user adoption Desire to make portal part of the virtual desktop strategy Navigation and ease of use Communication Collaboration Employee Information and organizational structure Forms and paper reduction Centralized vs. Distributed Content Management Document and Content Management Reporting

Examples Search – in the legacy intranet, people search did not work. Could not locate information about specific people. Document search was inefficient. End user adoption – web trends statistics showed that less then 10 percent of the organization ever came to the site (due to most of the reasons cited as the problem) Navigation – difficult to navigate system of pages with numerous links to other pages. No cohesive information architecture to define the experience

Examples Virtual desktop – in order to drive end user adoption, as well as making SharePoint part of the over all VDI strategy. Collaboration –in the legacy environment, non existent. No document repository, workflows, check in or out etc. Employee information – desired a comprehensive, centrally located environment for finding employee information and understanding organizational structure

Examples Communication – no central or focal point for disseminating news and information. Driving the right content to the right audience at the right time. My Sites Social Media – organization embracing social media

Why SharePoint?

Gartner Quadrant for Portals

SharePoint Strengths Majority are internal facing and departmental, focus on collaboration Initiatives center on Microsoft technology stack (BI, CRM, other integration) Microsoft sweet spot (collaboration, integration, other stack components) High prevalence in enterprises puts rival vendors in position to accommodate as well as compete 2013 wave shows great promise

Where to Begin - Requirements

Requirements Business Technical – security, scalability Functional – business process flow UX – user interface, design Content

SharePoint Solution Components Usability – Branding – Navigation and Taxonomy Content – Web Content – Documents and Records – Digital Assets Functions Infrastructure – Hardware – Software – Security

Information Architecture/Taxonomy Intranet Home Page Departments HR IT Finance Locations Branches Processing Center Business Units Retail Commercial

Buy vs Build SharePoint is an Application Template with Components Five ways to do anything in SharePoint Commercially available plug-in components 36

Component Addins Metalogix Nintex K2 others

Risk Assessment – Understand and manage the risks from the beginning Sensitivity Analysis – Illustrates the sensitivity of model results to model assumptions – Assumptions: Hurdle Rate, Adoption Rate, Rate of KPI Improvements, Deployment Cost Estimates – Outputs: Payoff period, NPV, ROI Risk Analysis/Sensitivity Analysis Positive project return given a range of potential costs and benefits will ease customer concerns that an analysis is over aggressive Time Return 1 yr ROI = %20 1 yr ROI = %10 1 yr ROI = %5

MetricsDesirable Results TCOLower CIO Stakeholders Any Customer KPIs Company Specific BDM Payback Period IRR - Internal Rate of Return NPV - Net Present Value Ideally < 12 months $ > Zero % > Company Hurdle Rate CFO Key Metrics By Stakeholder Beware unreasonable results: IRR, ROI >500% Instant Payback Beware undesirable results: IRR < hurdle rate ROI < 0% Payback > 24 months

Business Process Value Modeling: Best Practices Study one process at a time – Survey to understand best opportunities Prerequisite: Work directly with the end user Physically map business process metrics to get buy-in for process change Business managers are the source for pains and benefit equation variables Pain/KPI discussion drives business value versus productivity Keep equations simple Estimate process change metrics and then present them for approval if you can ’ t get the numbers you need – Get buy-in to defend numbers before presenting

It Starts at Measurable Pains Key Performance Indicators (KPIs) are measurable pains Pains have no quantitative value if they cannot be measured Missed Deadlines Overflowing Pipeline Insufficient Staff Competition Budget Constraints Revenue Employee Utilization Customer Retention Number of Customers Poor Cash Flow KPIsCommon Reasons For Pain

Cost Analysis: Best Practices Group costs into buckets – For example, desktop and server solutions usually have different cost buckets The key to effective costing is identifying the time spent on each activity - Work Breakdown Structure Recognize costs that should not be included in analysis – Costs that would be incurred anyway e.g.., normal hardware refresh – Costs not directly related to the project e.g., additional system changes – Costs already incurred (sunk costs) e.g., operating system upgrades already completed

Cost Analysis: Best Practices – Costs already incurred (sunk costs) e.g., operating system upgrades already completed Be sure to include all components Always perform “what-if” analysis Like benefits, get buy-in to defend numbers before presenting business value study

Common Costs Elements Cost ElementInfo SourcesExample Calculation SoftwareMS Account ManagerLicenses * cost of license HardwareVendor/PartnerHardware components * cost Planning TimeVendor/PartnerIT hours * cost per hour Pilot ProgramVendor/PartnerCost of labor, hardware, software Development TimeVendor/PartnerPartner cost + IT hours * cost per hour App Testing/RemediationVendor/PartnerIT hours * cost per hour Image EngineeringVendor/PartnerIT hours * cost per hour Installation TimeVendor/PartnerIT hours * cost per hour Employee DowntimeVendor/PartnerInstall time * cost per hour TrainingVendor Training class expense + employee training time Support CostsVendor/PartnerIT hours * cost per hour Ongoing MaintenanceVendor/PartnerDesktop & Server

150%Internal Rate of Return (IRR) 7Payback (months) $4,000NPV per User $2,000,000Net Present Value (NPV) 15%Discount Rate $3,028,862$1,764,574$500,287($764,000)Cumulative Cash Flow $3,028,862$1,264,287 ($764,000)Net Cash Flow $3,838,462$1,279,487 Benefits (on-going) $0Benefits (one-time) ($45,600)($15,200) Additional Operating Costs ($764,000) Implementation Costs TotalYear 3Year 2Year 1Year 0Financial Measures The Cost Line

Value Equations Examples Reduced Operating Cost = Change in work time per unit (hours) X number of units annually X Fully burdened cost/hour Increased Revenue = (Target close rate – Current close rate) X Number of Opportunities X Average Revenue per closed sale X Profit Margin = Extra $ Saved = Extra $ Earned

150%Internal Rate of Return (IRR) 7Payback (months) $4,000NPV per User $2,000,000Net Present Value (NPV) 15%Discount Rate $3,028,862$1,764,574$500,287($764,000)Cumulative Cash Flow $3,028,862$1,264,287 ($764,000)Net Cash Flow $3,838,462 $1,279,487 Benefits (on-going) $0Benefits (one-time) ($45,600)($15,200) Additional Operating Costs ($764,000) Implementation Costs TotalYear 3Year 2Year 1Year 0Financial Measures The Benefit Line

150%Internal Rate of Return (IRR) 7Payback (months) $4,000NPV per User $2,000,000Net Present Value (NPV) 15%Discount Rate $3,028,862$1,764,574$500,287($764,000)Cumulative Cash Flow $3,028,862$1,264,287 ($764,000)Net Cash Flow $3,838,462$1,279,487 Benefits (on-going) $0Benefits (one-time) ($45,600)($15,200) Additional Operating Costs ($764,000) Implementation Costs TotalYear 3Year 2Year 1Year 0Financial Measures Pulling Financial Metrics Together

The Business Case is Compelling Value Proposition

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