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

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

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

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

An Enterprise Information Implementation Virtual Environment Automated capture of ALL emails (Diem Email Capture) Email 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

Others have enterprise info management Australian Crime Commission same as ACCC except no auto email 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 email 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

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 & emails??!!” 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 emails??!!” So, is the change worth it?

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

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

Option 1: Records Management (RM) implementation Most common implementation type Existing business processes and information stores Register document when ‘finalising’, approving, emailing 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, emailing or archiving documents, or creating vital records.

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

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

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

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

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

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

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

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.

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.

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

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

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

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

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.

Thank you www.diemsolutions.com ‘EDRMS Business Case White Papers’ available: http://www.diemsolutions.com/contact-us/ Long version with full details Shorter version for Executives & Managers www.diemsolutions.com