@davidsamoranski Analyze This - How to Calculate the Business Value of SharePoint David Samoranski Director, Western Region

@davidsamoranski Session Summary Value Processes Solutions Analysis

@davidsamoranski VALUE

@davidsamoranski Problems Change Complexity ComplianceConsolidation

@davidsamoranski Solutions Forms Services Lync Server Excel ServicesBCS SharePoint

@davidsamoranski Better Together Pain Value ProblemsSolutions

@davidsamoranski Improving Processes Ad-hoc Repeatable ManagedOptimized

@davidsamoranski Unnecessary Process Steps Unnecessary Process Steps Communication Inefficiencies Communication Inefficiencies Process Pains Manual Activities Manual Activities EXPLORE Analysis Activities Current State Metrics IDENTIFY Cycle Time Work Time Cost Future State Improvements ANALYZE 50% Decrease in Cycle Time 65% Decrease in Work Time 40% Cost Reduction Where can SharePoint help the process? DESIGN Which capabilities are needed? What is the effort required? How much will that cost?

@davidsamoranski Identify Current State Who What WhenWhere

@davidsamoranski Explore Pains and Challenges Knowledge Management CommunicationVisibility

@davidsamoranski Design Solution Alternatives Content Workflow IntegrationReporting

@davidsamoranski Analyze Business Value Today Tomorrow CostBenefit

@davidsamoranski Solution Examples Common business processes that could be improved with SharePoint Solution → Organization ↓ Collaborative Document Development Automated Performance Reporting Project Portfolio Management Records ManagementAutomated Forms Sales Lead Qualifications and Conversions Actual Vs. Forecast Dashboards Lead Tracking Standardized Investment Decision Making Compliance Information Customer Assessment Survey Marketing Customer Surveys Marketing Plan Development Lead Capture Rates Marketing Plan Execution Historic Campaign or Branding Information Customer Satisfaction Surveys HR Training Materials Employee Performance Reviews Strategic Human Capital Initiatives EEO Compliance Information Employee Satisfaction Surveys New Hire Recruiting and Onboarding Finance Invoicing Forms Financial Performance Reporting Financial Planning and Budgeting Billing Information Customer Invoicing Records Online Customer Invoicing Operations Sensitive Records Management Discretionary Spending Virtual Project Management Office Supplier Information Vendor Data Management Business Process Automation Product Development New Product Development Milestone Achievement Project Performance Reporting Customer Data and Market Requirements Product Requirements Documentation IT Change Request Forms System Performance Tracking Project Status Reporting Managing IT Project Requests Vendor Contracts and Warranty Information Self-service Inventory System

@davidsamoranski PROCESSES

@davidsamoranski Process Modeling Participants Steps DecisionsMetrics

@davidsamoranski Participants Roles Swimlanes

@davidsamoranski Steps Sequence Participants

@davidsamoranski Decisions Approvals Authority

@davidsamoranski Metrics Work Time Cycle Time

@davidsamoranski Problem Identification Template IDWhat is the problem? Who is affected? Where does it occur? When does it happen? Why does it exist?

@davidsamoranski Phase Description Stakeholders Problems Identified Impact Process Analysis Template Phase 1Phase 2Phase 3Phase 4

@davidsamoranski SOLUTIONS

@davidsamoranski Solution Design Brainstorm Define PrioritizeSelect

@davidsamoranski Solution Identification Template IDWhat is the solution? Who is affected? Where does it occur? When does it happen? Why is it an improvement?

@davidsamoranski Solution Analysis Template IDSolutionValueComplexity

@davidsamoranski Detailed Value Analysis IDSolutionUrgencyScaleImpactReuseValue

@davidsamoranski Detailed Complexity Analysis IDSolutionImplementationTrainingSupportExternalComplexity

@davidsamoranski Prioritization Matrix Template Searchable employee profiles, skill-sets, and contact information Shared calendaring / presence awareness to determine resource availability Improved ability to track changes, compare, and integrate document versions Searchable, collaborative document repository and storage Complexity Low 1 High High 5 Low Value

@davidsamoranski New Phase Description Stakeholders Improvements Benefit Process Analysis Template Phase 1Phase 2Phase 3Phase 4

@davidsamoranski Anticipated Benefits IDProcess PhaseImprovementBenefits Features Required KPI Impact Stakeholders Affected

@davidsamoranski ANALYSIS

@davidsamoranski Communicating Value Cost Benefit ValueReturn

@davidsamoranski Cost ElementCost Equation Software Licenses x cost of license Hardware Hardware components x cost Planning Time IT hours x cost per hour Pilot Program Cost of labor, hardware, software Development Time Consultant cost + IT hours x cost per hour App Testing/Remediation IT hours x cost per hour Image Engineering IT hours x cost per hour Installation Time IT hours x cost per hour Employee Downtime Install time x cost per hour Training Training class expense + employee training time Support Costs IT hours x cost per hour Ongoing Maintenance Desktop & server costs Common Cost Elements

@davidsamoranski Cost Analysis Template Cost ElementItemOne-Time CostRecurring Cost Software Hardware Planning Installation Development Training Support Maintenance Total

@davidsamoranski ($150,000)($50,000) 53% Internal Rate of Return (IRR) 15 Payback (months) $1,535 NPV per User (1k users) $1,535,900 Net Present Value (NPV) 10% Discount Rate $2,000,000$1,050,000$100,000($850,000) Cumulative Cash Flow $2,000,000$950,000 ($850,000) Net Cash Flow $3,000,000 $1,000,000 Benefits (on-going) $0 Benefits (one-time) Recurring Support Costs ($850,000) Implementation Costs TotalYear 3Year 2Year 1Year 0Financial Measure The Cost Line

@davidsamoranski Improvement in work time per hour X Number of hours annually X Fully burdened resource cost/hour (Future close rate – current close rate) X Number of Opportunities X Average Revenue per closed sale X Gross Margin Benefit Equations Reduced Operating Cost = Increased Profit = = Dollars Saved = Dollars Earned

@davidsamoranski Benefit Analysis Template IDPhaseImprovementCost DecreaseRevenue IncreaseBenefit Total

@davidsamoranski ($150,000)($50,000) 53% Internal Rate of Return (IRR) 15 Payback (months) $1,535 NPV per User (1k users) $1,535,900 Net Present Value (NPV) 10% Discount Rate $2,000,000$1,050,000$100,000($850,000) Cumulative Cash Flow $2,000,000$950,000 ($850,000) Net Cash Flow $3,000,000 $1,000,000 Benefits (on-going) $0 Benefits (one-time) Recurring Support Costs ($850,000) Implementation Costs TotalYear 3Year 2Year 1Year 0Financial Measure The Benefit Line

@davidsamoranski Cost/Benefit Analysis Discount Rate NPV Payback TimeIRR

@davidsamoranski ($150,000)($50,000) 53% Internal Rate of Return (IRR) 22 Payback (months) $1,535 NPV per User (1k users) $1,535,900 Net Present Value (NPV) 10% Discount Rate $2,000,000$1,050,000$100,000($850,000) Cumulative Cash Flow $2,000,000$950,000 ($850,000) Net Cash Flow $3,000,000 $1,000,000 Benefits (on-going) $0 Benefits (one-time) Recurring Support Costs ($850,000) Implementation Costs TotalYear 3Year 2Year 1Year 0Financial Measure The Analysis Line

@davidsamoranski QUESTIONS? David Samoranski | (707)

@davidsamoranski THANK YOU!