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What’s Your Clarizen ROI?
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Featuring:
Alex Eldemir VP Value Engineering
SAP
Ted Purcell SVP WW Sales & Customer Success
Clarizen
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Baseline
“Who am I? Why am I here?” --Admiral James Stockdale
And, why are you here?
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Here’s Your ROI
925% …I used a vendor’s calculator.
Now fund it/ buy it/ implement it/ use it
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Agenda
• ROI best practices SAP version “Value Engineering”
• Clarizen approach to value • How to get started
Introduction to Value Engineering
Alex Eldemir VP – Industry Value Engineering
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Business Value is created in multiple ways across the business…
Strategy Enablement
Measurable Benefit
Risk & Compliance Innovation
Business Value
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• M&A • New businesses • Restructuring • Geographic
expansion
ROI is a key element of the value story, but needs to presented in the overall context of the value provided by the solution
• Operating risk • Sovereign risk • Legal &
regulatory compliance
• Hard benefits: revenue, cost, working capital
• Soft benefits: productivity, people, interim process metrics
• New processes • Knowledge-
driven improvements
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Value Engineering – Manage to value across the entire software cycle
Buy
Implement
Use
Expand
Buy and implement on value
Ensure users get value
Identify new areas of value
© SAP AG 2015 All Rights Reserved Source: SAP/AMR Value Management Survey Results 2010; 400+ Companies Surveyed
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• Increased program sponsorship and engagement
• Increased alignment between business and IT
• Closer strategy-to-execution loop • Improved change management and
end-user adoption • Better understanding of needs and
opportunities for additional value creation
Value Engineering – Across the Entire Software Lifecycle Strategic Business Value
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Value Engineering – Across the Entire Software Lifecycle Hard Business Value
Source: SAP/AMR Value Management Survey Results 2010; 400+ Companies Surveyed
Can’t manage what you don’t measure – focus on benefits yields benefits
Tradeoffs between budget and time are based on value creation, leading to optimized outcomes BTW, we built a value story with hard and soft benefits for value engineering
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Key Executive Questions Why do we need to do this now?
What are the expected benefits & costs? How do we ensure value realization?
Value Engineering Framework Processes and Activities
Preliminary Value Hypothesis
2
Trends, Challenges & Insights
1
Act
iviti
es Discovery/ Research
3
Business Case
4
Executive/ Team Alignment Value Discovery
Solution Recommendation Management
Value Engineering Lifecycle
Governance
7
Architecture/ Systems
6
Solution Impact
5
Value Tracking
8
Sources of Value Challenges
Process Benefits Quantification
Implementation Plan
Change Mgt
Customer Success
Clarizen has a similar process designed for its solutions © SAP AG 2015 All Rights Reserved
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• ROI best practices SAP version “Value Engineering”
• Clarizen approach to value • How to get started
Agenda
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Collaborative work unlocks enterprise business value
13
Collaborative Work
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Collaborative work improves team productivity, end-to-end processes, and outcomes
14
Challenges & Benefits: PMO
Challenges Benefits
People • Overburdened project managers • Either too many or not enough
people • High burn out & attrition
• Optimized PMO and resource allocation
• Improve team morale • Reduced attrition rate
Process • More demand than capacity to execute on projects
• Fire drills • Slipped projects • High reporting burden
• Improved project prioritization • Improved resource alignment • Improved visibility into
constraints • Integrated tracking
Outcomes • Variable project ROIs/ over budget
• Variable close out rates • Variable adoption success
• Improved project ROI vs. target accuracy
• Improved delivery: on time, on budget, on scope
• Improve end use transfer & adoption
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Collaborative work improves team productivity, end-to-end processes, and outcomes
15
Challenges & Benefits: PMO
Challenges Benefits
People • Overburdened project managers • Either too many or not enough
people • High burn out & attrition
• Optimized PMO and resource allocation
• Improve team morale • Reduced attrition rate
Process • More demand than capacity to execute on projects
• Fire drills • Slipped projects • High reporting burden
• Improved project prioritization • Improved resource alignment • Improved visibility into
constraints • Integrated tracking
Outcomes • Variable project ROIs/ over budget
• Variable close out rates • Variable adoption success
• Improved project ROI vs. target accuracy
• Improved delivery: on time, on budget, on scope
• Improve end use transfer & adoption
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Process Specific Benefits: Project Management
Portfolio Planning
Request Prioriti-zation
Project Planning
Execution & Status
Meetings Reporting
Resourcing
PMO Operations
Project Execution
Project Tracking
People • Optimized resource utilization • Reduced contractor spend • Reduced project resource
attrition rate Outcomes • Improved project delivery – on
scope, on time, on budget • Improved project close out rate • Improved project transfers/
subsequent adoption
People • Increased value of projects
managed by PMO • Lower PMO attrition rate Outcomes • Reduced project
management costs • Increased project accept
rate • Reduced project queue time • % of project value spent on
innovation vs. maintenance • Improved project ROI vs.
target
Process • Fewer fire drills • Fewer change orders • Easier project tracking • Easier reporting
Transfer Close
Scope, timing, budget adjustments
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Measuring Value: Project Management
PMO Operations Δ Target Project Management Δ Target
People People
$ value of projects/ PMO é Resource utilization rate é
PMO attrition rate ê % reduction in total contractor
spend ê
Project resource attrition rate ê
Process Improvement Process Improvement
% of projects meeting or exceeding ROI targets
é Reduced change order overages ê
Improved project tracking é
Improved reporting é
Outcome Improvement Outcome Improvement
Project management costs as a % of total project costs ê % of projects delivered on scope é
% of projects accepted é % of projects delivered on time é
Average project queue time ê % of projects delivered on budget é
% of project value spent on innovation vs. maintenance é Project transfer time ê
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Value Created
Impact KPI Baseline Benefit Range Benefit Total
PMO Ops
KPI 1 $ X% - y% $X - $Y
$X - Y
KPI 2 $
Project Mgt
Strategic Benefits • X • x
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Project Management Reference Customers
DHL NetApp Tnuva Strauss Ware D+M group IP Payments Encore Capital Group Instruxion Marketo Buckinghamshire County Council Alder Hey Children’s NHS Foundation Trust Three Deep Marketing Atom iFNC Sampling International Parse 3 Entropy Maitland Incredible Technologies
“We needed something more robust and flexible. Now with Clarizen, we can easily create a report and determine and
summarize work from a financial perspective.” Chris Lenjes Director Domestic Product Solutions DHL
“Thanks to Clarizen, in the first year, we have saved 417 hours, which equates to a 67% reduction in time that was previously
spent performing tactical program management work.” Gia Chung Senior Manager, Strategic Programs NetApp
“Since implementing Clarizen, we've seen a significant boost in our productivity by about 15 percent over the past six months.
More importantly, it's helped streamline our processes and made our lives easier – you can't put a price on sanity.”
Beth Fulton Vice President of Services Program Management Clarabridge
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• ROI best practices SAP version “Value Engineering”
• Clarizen approach to value • How to get started
Agenda
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Next Steps
WHY YOU SHOULD BUILD A BUSINESS CASE • Innovation • Getting other business units
onboard • Making sure you are getting
the full benefit of the solution • Getting ahead of the curve for
your next request for additional functionality
HOW TO GET STARTED • Decide area and goals for
business case • Work with Clarizen customer
success to understand your baselines and whether they have a value template for your industry
• Let me know if you have any questions [email protected]
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Questions?
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Thank You
Alex Eldemir www.sap.com
Ted Purcell www.clarizen.com