Bill’s point was to use Cost of Doing Business (CDB) rather than Return On Investment (ROI), as it is easier to build a business case for implementing SharePoint around CDB rather than ROI.
Errin’s case study was an actual ROI of SharePoint after it had been in use for a year. The study was limited to Legal and Compliance activities within the company, and only those processes addressed by SharePoint. Time spent on identified tasks was calculated both before the implementation and after one year, and a dollar value was assigned to the time, one amount for manager-level tasks and one for staff-level tasks.
In this 3000-user case study, costs for these tasks were identified at just under $700,000 per year before the implementation, or about $230 per user per year. After implementation…
Maybe you had better sit down…
After implementation, costs for those tasks related to Legal and Compliance that were addressed by the SharePoint implementation were reduced by almost half! Cost savings was $340,000 per year. As the client already owned licenses for SharePoint prior to implementation, the cost of implementing was just over $200,000. The client’s ROI was 60% in the first year, but over two years would be 220%, or calculated over three years would be 381%!
While the presentation was a very quick overview of the case study, the results were pretty impressive. Errin told us that a whitepaper on the case study was being prepared and awaiting sign-off from the client company in the case study. (I’ll post a link to the whitepaper when it gets posted.)
What followed was a discussion of best practices to ensure the ROI is not eaten away by rework. After all, as I have said before, getting SharePoint right requires planning and foresight, otherwise you will have to undo and redo what was done wrong. If you build your Content Types with inadequate forethought on the metadata requirements and then upload the documents into SharePoint, the chances are about zero that someone will go back and add the missing data to all of the documents.
Some things to define up front:
- Content Types
- Expiration policies
- Site hierarchy
- Size planning for content databases
- Requirements for site provisioning
- Physical environment and security
- Custom development governance
During the discussion about planning, Errin showed us a list of governance requirements over SharePoint MySites – a list of dos and don’ts for users to keep the content work-relevant, manageable and away from legal trouble. David Broussard quipped “MySites are NOT the same as MySpace”.
But my favorite phrase of the evening was “Design your SharePoint implementation with future phases in mind”. Which is a nice lead into my next SharePoint post (stay tuned!)…
Next Month at SASUG – Miguel Wood, August 25th.
And don’t forget about SharePoint Saturday – San Antonio November 14th!