meaning of roi…
DESCRIPTION
Global Corporate Circle DCMI 2003 Workshop Metadata, Search and Meaningful ROI Mike Doane Sr. Content Analyst SBI and Company. Meaning of ROI…. “Really Only Imaginary”. “Rip Off Investment”. “Return On Illusion”. ROI= average benefit over three years / initial cost. - PowerPoint PPT PresentationTRANSCRIPT
SBI and CompanyProprietary and Confidential P1
Global Corporate CircleDCMI 2003 Workshop
Metadata, Search and Meaningful ROI
Mike DoaneSr. Content AnalystSBI and Company
SBI and CompanyProprietary and Confidential P2
Meaning of ROI…
“Really Only Imaginary”
Human factors can influence up to half of the total potential value to be derived from a collaborative application.
Breadth and repeatability are the key points to remember when deploying or upgrading an application. Help a lot of people many times…
--Nucleus
• ROI= average benefit over three years / initial cost.
• Fully loaded cost = 135% of salary.
--Nucleus
“Rip Off Investment”
“Return On Illusion”
SBI and CompanyProprietary and Confidential P3
Avg. annual cost per employee for file searching, verification, organization and backup: $8,200*
International Tobacco Company40,000 employees
X $8,200 =$328 Million per year
Internet Software Company4,000 employees
X $8,200 =$32.8 Million per year
$100k annual cost per employee20,000 employees searching
1.0 hours per day= $50 hour x 20k = $1 Million
per day
$120k annual cost per employee2,000 employees per day
2.0 hours per day= $60 hour x2 x2k = $240,000 per day
The Investment…
*Source: GISTICS; SBI analysis
Costs to build and implement average initial meta data solution:
• Consultant: 12 weeks: $150,000 ($2,500 per day, per person)
• Software: $0 - $85,000 (depending on usage)
• Employee(s): 12 weeks, 50% FTE, 3 people, $45,000
• Total initial investment: $195,000 - $275,000
SBI and CompanyProprietary and Confidential P4
Individuals realize reduced effort benefits:
Any improvement in the ability to find content reduces the overall cost to individuals, workgroups and the enterprise
The Return…
*Source: SBI analysis
6.6
15.7
43.5
25.1
18.1Finding the desired file faster
Reduction in time spent transferring files
Less time spent reorganizing
files
Fewer file lookups required
Other time savings
% reduction of time spent away from primary activity*
SBI and CompanyProprietary and Confidential P5
How could using the Dublin Core help?
The Future…
Potential cost reductions:
• Reduced consultant fees (From 12 to 8 weeks, saving $50,000)
• “Jump start” projects
• Less wait time until employees begin using
• Standardized metadata set for sale
Other issues:
• Recognized corporate standards
• Vertical market orientation
• Close integration with content technologies