CMS ROI

"Bret Freeman" <[email protected]>
Newsgroups gmane.comp.cms.cms-forum.general
Message-ID <[email protected]> 
Hi John,

First, please excuse this message for sounding like a product pitch, but
these are the figures I am familiar with since I sell and implement this
product.

My company will be making a press release shortly illustrating actual reuse
figure across some of our clients.  We are seeing an average reuse of over
70%.  Why is this relevant for ROI figures?

Keep in mind that reuse equals dollars saved!  That being the case, here is
one method of ROI calculation:

If your documentation is made up of procedures for example, and you know it
takes an $18.00 per hour employee 2 hours to write an average procedure,
content creation then costs $36.00 per procedure.  
If your current process necessitates writers re-creating or searching for an
existing procedures you can see how costly documentation can be.  IDC has
stated "The average knowledge worker spends 2-1/2 hours a day panning for
information nuggets in unstructured sources like Web pages and Word
files-even though many of those pages and files may be their own."

Let's say that procedure is re-created or searched for 25 times (which is
probably way on the conservative side).  That means you will spend $936.00
on that procedure alone!
  
What does this mean in Vasont terms?  
Because the procedure is easy to find in the CMS, it can be reused in 10
minutes or less.  Now if it costs $36.00 to create the procedure in the
first place and about 4 hours to reuse it 25 times (figuring 10 minute
search time -which would really be more like 2 minutes but let's figure
high) or $72.00, that is a total of $108.00 vs. $936.00 on just ONE
procedure!  THAT IS A SAVIVINGS OF $828.00 PER PROCEEDURE!  Now if you use
this scenario and apply it across your enterprise to hundreds or even
thousands of procedures you will quickly see why our clients are seeing ROI
in well under 1 year.  And we haven't even touched on other ROI scenarios
like translation costs, process automation with Vasont's workflow or multi
channel publishing! 

I hope this makes sense and gives you at least a starting point for your ROI
figures.  Also, if you look further down stream, how much time and money is
spent at the help desk helping users solve problems that either should be in
the documentation or are inconsistent in the documentation?  In a
presentation at the Hackos CMS conference last month, one of our clients
stated that prior to Vasont; they were spending more than $300K per month on
these issues.  Now with Vasont in place, those calls are a thing of the
past.  

Feel free to contact me on or off the list if you need any more information.

Bret Freeman
Vasont Systems
[email protected]

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Today's Topics:

   1. CMS ROI? (John)
   2. Re: CMS ROI? (Bryan & Kelli Johnson)
   3. Re: CMS ROI? (James Robertson)
   4. RE: CMS ROI? (Peter D. Dresslar)
   5. RE: CMS ROI? (Steve Williams)


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Message: 1
Date: Wed, 18 May 2005 17:53:10 -0700
From: John <[email protected]>
Subject: [CMS] CMS ROI?
To: [email protected]
Message-ID: <[email protected]>
Content-Type: text/plain; charset="iso-8859-1"

Any ideas for determining ROI for CMS projects?
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Message: 2
Date: Wed, 18 May 2005 21:20:06 -0500
From: Bryan & Kelli Johnson <[email protected]>
Subject: Re: [CMS] CMS ROI?
To: John <[email protected]>
Cc: [email protected]
Message-ID: <[email protected]>
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Message: 3
Date: Thu, 19 May 2005 19:33:30 +1000
From: James Robertson <[email protected]>
Subject: Re: [CMS] CMS ROI?
To: [email protected]
Message-ID: <6.2.1.2.2.20050519193149.025ddb48@butler>
Content-Type: text/plain; charset="us-ascii"; format=flowed

At 10:53 AM 19/05/2005, John wrote:

>Any ideas for determining ROI for CMS projects?

A while back I wrote an article on metrics and ROI,
in the context of CM and KM projects:
http://www.steptwo.com.au/papers/kmc_metrics/index.html

Hope this helps,
James

-------------------------
James Robertson
Step Two Designs Pty Ltd
Knowledge Management / Content Management / Intranets

http://www.steptwo.com.au/
[email protected]


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Message: 4
Date: Thu, 19 May 2005 08:02:16 -0400
From: "Peter D. Dresslar" <peter-6hJmoW3qve0hTx4l/[email protected]>
Subject: RE: [CMS] CMS ROI?
To: "'John'" <[email protected]>, <[email protected]>
Message-ID: <200505191202.j4JC2MUK010742-24b2pfLGgHqoWjr8uRx0JfC9HSW9iNxf@public.gmane.org>
Content-Type: text/plain;	charset="us-ascii"

Hi John:
 
It should be pretty easy to trace the outcome of a CMS project to the value
levers for an enterprise. This is a fairly well accepted way of identifying
aspects of an enterprise that are valuable in less-than-tangible ways. Of
course, you can google "enterprise value levers" for a better explanation
than mine. 
 
More difficult, however, is dealing with the enterprise which doesn't have
its value levers defined! In those cases, the task is to find the nearest
proximate thing identified by the enterprise. 
 
-Peter Dresslar
 
 
 
 

________________________________

From: [email protected]
[mailto:[email protected]] On Behalf Of John
Sent: Wednesday, May 18, 2005 8:53 PM
To: [email protected]
Subject: [CMS] CMS ROI?


Any ideas for determining ROI for CMS projects?




------------------------------

Message: 5
Date: Thu, 19 May 2005 13:57:59 +0100
From: "Steve Williams" <[email protected]>
Subject: RE: [CMS] CMS ROI?
To: <[email protected]>
Message-ID:
	
<A14E3AEB2E23874C80B35BBD936896DD11BC73-sgn+hVVSH+JLiJTTS1mEwLV2A8X0GEveWbreXIKPMTJaa/[email protected]>
	
Content-Type: text/plain; charset="utf-8"

...if its of any help the attachment is an ROI calculator that we use for
web content management projects when asked to provide an ROI (or POI as more
often called these days) - we have different ROI model for DMS or Enterprise
installs. Cant claim its the be all and end all - but what is good is that
rather than making assumptions for the client that lead to a favourable ROI
for the vendor (such as assuming a worker works 365 days as in one study I
looked at) - the client is invited to project e.g. how many days their
employees work each year and a 'daily rate of cost' - so that the outcome
for productivity increase is based on their figures. Since a number of
returns in a WCMS project are subjective - such as competitive return in
having e.g a more attractive, easier to use, easier to purchase items from
website - the values are often only a best guess at the return - and only
time proves whether the return was accurately guessed or not. We encourage
customers to do the RO!
I twice - once with a downbeat view and one with an upbeat view - time
usually shows the ROI to be between the two values - but its often good to
give management a best case and worst case scenario......
Regards
Steve Williams
RedDot Solutions UK

	-----Original Message----- 
	From: Peter D. Dresslar [mailto:peter-6hJmoW3qve0hTx4l/[email protected]] 
	Sent: Thu 19/05/2005 13:02 
	To: 'John'; [email protected] 
	Cc: 
	Subject: RE: [CMS] CMS ROI?
	
	

	Hi John:
	
	It should be pretty easy to trace the outcome of a CMS project to
the value
	levers for an enterprise. This is a fairly well accepted way of
identifying
	aspects of an enterprise that are valuable in less-than-tangible
ways. Of
	course, you can google "enterprise value levers" for a better
explanation
	than mine.
	
	More difficult, however, is dealing with the enterprise which
doesn't have
	its value levers defined! In those cases, the task is to find the
nearest
	proximate thing identified by the enterprise.
	
	-Peter Dresslar
	
	
	
	
	
	________________________________
	
	From: [email protected]
	[mailto:[email protected]] On Behalf Of John
	Sent: Wednesday, May 18, 2005 8:53 PM
	To: [email protected]
	Subject: [CMS] CMS ROI?
	
	
	Any ideas for determining ROI for CMS projects?
	
	
	
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