Business Case ROI Workbook For IT Initiatives: On This Worksheet

Business Case ROI Workbook for IT Initiatives
This tool is a comprehensive general-purpose business value model (ROI calculator) to support the development of business
cases for enterprise-scale information technology-based projects. It provides a robust structure to help organizations assess
the business value (costs, benefits, TCO, and ROI) of technology projects/initiatives.
This workbook can be used as a standard corporate business case template for technology-based initiatives. It can also be
used by consultants and technology vendors to articulate the business value of their products and solutions.
On This Worksheet
Workbook Table of Contents
Key Features
Model Components / Flowchart
Instructions
Disclaimer
Terms of Use / Use Rights / End-User License Agreement (EULA)
Support
Workbook Table of Contents

Worksheet
Name
Title
Profile
Organizational Profile
Initiatives
Initiative Descriptions
Costs
Implementation Costs
IT Labor
IT Labor TCO Savings
Description
Collects information about: organization size, location, and industry; end user types and labor
costs; and the initiative to be modeled. This information is used to estimate default values
for all costs and benefits throughout the rest of the model. It displays a summary of costs
and benefits of the scenario modeled.
For Reference Only: provides key features, capabilities, benefits, and common
vendors/products for the 18 sample initiative types included in the model.
Estimates all costs (direct and indirect) needed to implement, fully adopt, and support the
solution. Cost categories include: hardware, software, IT labor, and user labor, including
one-time and annual on-going costs.
Estimates IT labor TCO (as-is and to-be) and TCO savings enabled by the solution
Direct Savings Direct Cost Savings
Estimates non-labor direct IT and business cost savings enabled by the solution.
Productivity
User Productivity Benefits
Estimates user time/labor savings enabled by the solution. First estimates the amount of
time users spend conducting common business activities then estimates how much the
solution is expected to increase the efficiency of conducting key activities. The time savings
is discounted using a "Productivity Conversion Factor", then converted into $ value.
Revenue
Revenue Impact
KPIs
Key Performance Indicator Assessment

(Optional)
ROI
Financial Analysis
Estimates how and how much the solution is expected to increase revenue. The benefit is
the profit on the incremental revenue.
Assessment of how the solution may impact a variety of business KPIs. In this model, these
KPI changes are not converted into financial benefits.
Summary of costs & benefits by type; Cash flow analysis; calculation of ROI, payback period,
NPV, and IRR; and graphs
Key Features
Supports most types of enterprise-scale technology initiatives. Includes sample cost and benefit data for 18 common initiative types
Comprehensive assessment of initiative costs and benefits
Costs: hardware; software; IT labor, training, and services; and user labor and training
Benefits: IT labor TCO savings, other direct cost savings, user productivity benefits, revenue growth, and non-financial key performance
indicators
Calculates annual on-going IT Labor TCO (total cost of ownership)
Comprehensive financial analysis. Calculates project cash flow, cost-benefit analysis, ROI, NPV, IRR, and payback period
Supports rapid (30 minute) or detailed (3+ day) assessments. This model was designed to provide either a rapid assessment (by just
entering/selecting basic organizational profile and initiative information) or a very detailed (3+ day) assessment by modifying hundreds of
detailed inputs.
Protected, yet customizable: Essentially all values can be modified. Many custom cost and benefit items can be added. Formulas and other
areas of the model that should not be modified are protected (locked) to maintain intended functionality. HCR can provide additional fee-based
customization, if desired.
Based on industry-standard calculations and industry-leading methodologies. It is as transparent as possible so the user is able to
understand how the costs and benefits are calculated.
Provides research-based default values. Default values (labor costs, user type mix, financial information, etc.) are provided based on your
industry, geography, organization size and initiative type to enable more rapid assessments. Extensive research was conducted to find highly
reputation sources for these. Data/estimate sources are listed. You may overwrite any of the pre-populated defaults.
User-friendly. The workbook contains instructions, descriptions, and references. Results are updated real-time and are displayed graphically
throughout the model. Although the model is user-friendly, we recommend users have at least a moderately-advanced understanding of
business value concepts to develop a credible business case.
Free download. No registration required.
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Model Components / Flowchart
The chart below graphically presents the components of the model.
Instructions
- Read the "Terms of Use" and "Disclaimer".
- Before making any changes to the workbook, save the workbook under a different name. This will preserve the original default values and formulas
so you may return to them at a later time.
- Navigate the workbook using the worksheet tabs at the bottom. Start with the "Profile" tab. This worksheet contains the most important cost and
benefit drivers. You will also see a summary view of the costs and benefits of the scenario modeled. Enter/edit data in the "input" (light yellow) cells.
Edit (overwrite) the default values to customize results for your particular organization/initiative.
- Review the ROI worksheet to pre-view costs and benefits.
- Review the detailed default metrics and calculations in the "Costs" (red tab) and Benefit (green tabs) worksheets. Although not required, we
recommend completing the Costs worksheet first to more clearly define the initiative. Not all benefit worksheets are appropriate for all initiative types
(for example, some infrastructure initiatives may not have any revenue impacts).
- The "Financial Analysis" report (or any other worksheet) can be printed or saved as PDF/XPS. Portions of the model may be incorporated (e.g.
Paste Special As Picture) into a more comprehensive business case-type report.
- Additional instructions are provided in the model
- If fee-based consultative guidance and/or customizations are desired, contact HCR.
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Disclaimer
This tool is intended to help guide organizations in better understanding approximate/potential costs and benefits. Due to limitations of simulation
tools, actual results may differ significantly than results estimated in this tool. Investment decisions should not be based on the results of this model
alone -- it is not intended to be a substitute for professional advice.
This information is provided to you as a tool as is with the understanding that there are no representations or warranties of any kind either express or
implied.
In no event shall HCR or suppliers be liable for any damages, including those arising as a result of HCR or supplier negligence, whether those
damages are direct, consequential, incidental, or special, flowing from your use of or inability to use the tool, or information provided herewith, or
results of the tool's use, even if HCR or suppliers has been advised of the possibility of such damages.
Terms of Use / Use Rights / End-User License Agreement (EULA)

By using the software/document, you accept these terms. If you do not accept them, do not use the software.
- You may use, copy, redistribute, display, print, and reproduce this software/document
- You may NOT sell, rent, lease, or lend this software/document or portions/derivations of it
- You may NOT create derivative works from this software/document
- You may NOT "reverse-engineer" the software/document
- You may only modify portions of the software/document designated as "Input" cells (light yellow cells)
- You must maintain all copyright and other notices contained in this software/document.
- You may incorporate only static (e.g. values, graphics) portions of this software/document within other documents (e.g. a business case report) as
long as the dynamic (e.g. equations, macros) functionality of the workbook is not also incorporated or duplicated.
Support
HCR does not provide free support for free downloads. However, we do welcome any comments, suggestions, and feedback.
HCR can provide fee-based services, including telephonic support, workbook customizations, and comprehensive consulting engagements to assist
with business case development and validation.
Copyright, 2006-2008, Hall Consulting & Research LLC, All Rights Reserved. www.hallcr.com
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Organizational Profile
This worksheet contains key inputs/assumptions that drive cost and benefit calculations throughout the model. Defaults input values are provided based on industry, location, and
organization size. These default input values should be reviewed and modifed as appropriate. A summary of the results is provided to the right to assist in viewing output implications of
input changes. This summary data will be updated as changes are made throughout the model.
Required Organization/Initiative Data
Enter values or select the closest fit from the drop-down menus. These are the most important
inputs in the model. Your answers to these key questions will have the most significant impact on
default cost and benefit drivers through-out the rest of the model.
Industry - select the closest-matching from the
drop-down
Summary Pre-view of Results
Average / Mixed
Organization Total
($000)
Per PC
Industry is used to pre-select various default values (i.e. user type mix, labor costs)
Costs (3-Yr)
1,743
8,716
Primary geographic location - select the

closest-matching from the drop-down
Benefits (3-Yr)
5,339
26,697
Used to scale labor costs and estimate default work hours per year
Net Benefits
3,596
17,982
Primary Site Locations - select the closestmatching from the drop-down box
NPV (Net Present Value)
2,782
13,908
U.S.
Suburban / Mixed
Used to scale labor costs. Urban labor costs tend to be 15-20% higher than suburban locations.
ROI (Return on Investment) - [Total

Net Benefits / Total Costs]
5,000
5,000
This typically is approximately the same as the number of PCs. It is used to scale most costs and benefits.
% of PC
Users
Portion of PC Users that are Information
Workers (IWs)
Portion of PC Users that are Data-entry or
Structured-Task Workers
Total PC-Users (# of Employees that use PCs
on a regular basis)
# of PC
Users
44%
2,223
56%
2,777
100%
5,000
9 Months
Number of PCs
5000
Total Costs Vs Benefits (per PC)

$6,000
$5,000
Default values are provided based on inputs above. Defaults may be adequate for rapid/ballpark
assessments, but otherwise should be reviewed/modified.
$
3,925
Source of defaults is based on analysis of data from Fortune 500, Fortune Magazine and is industry-dependent
(varies depending on industry selected above)
Margin % of Revenue (Net profit margin of new

revenue enabled by the initiative)
10%
Discount Rate / Cost of Capital (WACC)

Used in Net Present Value calculations
Duration of analysis (years) - Select from dropdown box.
A 3-year life-expectancy is standard for many IT projects. Some major initiatives may be 5 years.
$Costs (3-Yr)
End-User Labor &

Training
$343
$268
IT Labor, Services,
& Training
$253
Software
$879
Hardware
3-Year Total
Benefit Sum m ary (per PC)

$6,000
Revenue Growth
$5,000
$1,070
User Productivity
Benefits
$1,616
$2,000
$400
Other Direct Cost

Savings
$2,253
IT Labor/Services
TCO Savings
$3-Year Total
1,824
Average
Ann'l Cash
Compensation**
Benefits (3-Yr)
Cost Summary (per PC)
$2,000
$1,800
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$-
$1,000
25%
* Non-cash compensation, such as benefits and Social Security
Burden
Rate
Burdened Burdened
Annual
Weekly Burdened
Labor
Labor
Hourly
Cost
Rate
rate
IT Staff Labor Costs
Costs & Benefits ($ per PC)

One-Time
Annual OnGoing
3-Year
Total
Initiative Costs
$ 93,190
$ 96,675
$ 62,781
25% $ 116,488
25% $ 120,844
$
$
2,240 $
2,324 $
63.86
66.25
Hardware
606
91
879
Software
150
34
253
25% $ 78,477
1,509 $
43.02
IT Labor, Services, & Training
213
18
268
End-User Labor & Training
273
24
343
1,242
167
1,743
2,253
Source of salary data: based on HCR analysis of Bureau of Labor Statistics data and various 2007 Salary
Surveys. Salary data is scaled based on industry, geography, and organization size.
Total
PC User Labor Costs

IWs (Information Workers)
Data-entry or Structured Task Workers
Average (weighted)
$1,743
$3,000
Default values are provided based on inputs above. Defaults may be adequate for rapid/ballpark
assessments, but otherwise should be reviewed/modified.
Help Desk / Technical Support
$1,000
$4,000
Labor Costs
Systems/Network Administrator/Engineer
Software Developer/Engineer
$5,339
$2,000
B e ne fits ($ p e r P C )
10.3%
Default value is based on industry average. This margin rate is used to calculate the business value of
incremental revenue enabled by the initiative
Standard Work Hours per Year
$3,000
C osts ($ p er P C )
Financial Information
Burden rate (labor overhead as a % of cash

compensation)*
$4,000
PC Hardware & Operating System Upgrades
This pre-populates all costs and benefits with sample data based on the initiative type. The sample data is
only provided at a moderate level of detail. If you want to start with a blank slate (all zeros), select "No
Sample Data - Zero-out all costs/benefits". Sample data should not be used for making investment decisions.
Sample data is not meant to represent average/typical project results and is not based on research. It should
only be used as a starting point for assessing the business value of your project. Initiative costs and benefits
will differ substantially from one organization to another.
Organization Revenue ($ Millions)
124%
Payback Period
Information Workers (Knowledge Workers) perform non-routine, cognitive, or creative work that often requires
both structured and unstructured information inputs from multiple sources -- and that is not repeated
throughout the course of the work day or work week. Examples include a product manager, analyst,
accountant, engineer, sales executive, CFO, or CIO.
Data-entry and Structured Task Workers perform routine, structured tasks typically in a repeated manner.
Examples include a customer service representative, insurance claims processor, or inside sales
Initiative
Type - Select the project type from the
representative.
drop-down box that most closely matches the

initiative to be modeled
206%
IRR (Internal Rate of Return)
C o s ts & B e n e fi ts ( $ / P C )
Total Number of PCs in Scope

Number of PC Users in Scope
Initiative Benefits
$ 74,937
$ 58,937
$
66,050
25% $ 93,672 $
25% $ 73,672 $
$ 82,563 $
1,801 $
1,417 $
1,811 $
51.36
40.39
45.26
** Base compensation plus bonuses
IT Labor/Services TCO Savings
751
Other Direct Cost Savings
75
108
400
539
1,616
357
1,070
75
1,755
5,339
Revenue Growth
Source of salary data: based on HCR analysis of U.S. Department of Labor, Bureau of Labor Statistics data; The
World Bank, World Development Indicators Database; and Organisation for Economic Co-operation and
Development. Salary data is scaled based on industry, geography, and organization size.
$
Total $
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Profile
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Description of Sample Initiatives (for reference only)

Sample data should not be used for making investment decisions. Sample data is not meant to
represent average/typical project results, is not based on research, and is not provided at the lowest
level of detail. It should only be used as a starting point for assessing the business value of your project.
Initiative costs and benefits will differ substantially from one organization to another.
Infrastructure/Platform Technology Initiatives

Initiative Type
PC HW/OS
Upgrades
Key Features, Capabilities, Benefits

Improved performance, reliability, security,
Notebook, desktop, thin-client
Virtualization, consolidation, clustering
Server HW/SW
Upgrades
Infrastructure
Mgmt /
Networking
Storage
Security
Application
Development /
Architecture
Compliance,
Governance,
Risk
Outsourcing
Wireless/
Mobility
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Improved performance, reliability, manageability,

Multi-core, 64-bit, RISC/Itanium, x86
Web servers, application servers, DBMS servers,
Asset inventory/management, OS management,
configuration management, change management,
Directory services, group policy objects
IPV6, LAN, WAN
VOIP voice over Internet protocol
Digital storage of business data and documents
Archival, records management, tape backup, SAN,
NAS, disk arrays, iSCSI, fibre channel
Capacity management, performance analysis,
Security planning, assessment, incident/breach
Identity and access management, encryption,
Firewalls, antivirus, anti-malware, anti-spyware,
Improved software quality, integration, usability
Custom developed software
Rapid application development
Middleware, application server
Web services, Service-Oriented Architecture, SaaS
Enterprise architecture (EA)
Methods and software to ease compliance with
ITIL, COBIT, Six Sigma, CMM, ISO 17799/9000,
Maturity models (Microsofts Infrastructure
Optimization Maturity Model)
Sample Vendors And Products

Microsoft Windows Vista, Linux, Red Hat, Novell
Dell, HP, Apple, Toshiba, Lenovo, Fujitsu, Acer, Sony,
Gateway
Intel, AMD
Microsoft Windows Server, Novell SUSE, Red hat,
Unix, Solaris, IBM AIX, HPUX
IBM, HP, Dell, Sun, Fujitsu, Bull
Microsoft System Center Configuration Manager,

MDOP, Active Directory
IBM Tivoli, BMC Software, CA Unicenter, HP, LANDesk,
Novell ZENworks, Symantec Altiris, Cisco Systems
EMC, HP, IBM, Sun, Hitachi, EDS, Network Appliance

IBM DB2, Microsoft Exchange, Microsoft SQL Server,
Oracle, SAP
McAfee, Symantec, CA, Trend Micro
Cisco Systems, NetIQ
VeriSign, IBM, Unisys
Microsoft .NET, Visual Studio
IBM WebSphere, Rational
Sun Microsystems Java
Java/J2EE/EE, Ruby on Rails, PHP, Python, Perl
Oracle Fusion Middleware, Application Server
BEA Systems WebLogic, JBoss (Red Hat), SAP
NetWeaver
BearingPoint, Deloitte, Ernst & Young, IBM, KPMG,
PricewaterhouseCoopers
Portfolio management, IT-business alignment,

Business continuity disaster planning / recovery
IT governance, policies, internal audit, monitoring
Outsource IT and business processes,
Accenture, Capgemini, Cognizant, CSC, EDS, IBM, HP,
applications, infrastructure, or initiatives to reduce
Siemens, CompuCom, Infosys, Keane, Perot Systems,
costs and improve results
Satyam, TCS, Wipro, Getronics, Unisys
Infrastructure management: helpdesk, on-site
support,
desktop management,
data center services
BPO business
process outsourcing
Offshore services
Application outsourcing, web hosting
Wireless e-mail, mobile access to line-of-business
VPN, mobile remote access, telecommuting
Handheld devices, smartphone, PDAs
Wireless LAN/WAN, 802.11n, WiMAX, CDMA,
Initiatives
AT&T, IBM, MCI-Digex, Qwest, Rackspace, Verio
Microsoft Windows Mobile, Palm, Symbian

RIM BlackBerry, Nokia, Apple iPhone, Sharp,
Motorola/Symbol, Fujitsu,
3Com, Cisco Systems, Nortel Networks, Siemens
Equant, AT&T, MCI, BT, Sprint, Verizon
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Description of Sample Initiatives (for reference only)

Business Technology Initiatives
Initiative Type
Office
Productivity
Software
Messaging/
Collaboration
Content
Management
E-commerce /
Internet
Business
Process Mgmt /
Integration
Business
Intelligence /
Data Mgmt
Business
Applications
(Vertical, LOB)
CRM
Key Features, Capabilities, Benefits

Word processing, spreadsheets, personal
E-mail, calendaring/scheduling, task

Real-time collaboration, presence, instant
Social computing, blogs, wikis
Team workspaces, project management,
Document management, web content

Knowledge management, information
management
Intranets, Extranets, Portals

Web sites for external business information
Web storefronts, shopping cart management,
B2B, B2C, AJAX, mashups
Process modeling, monitoring and management
Workflow, business rules, automation, electronic
forms
BAM (business activity monitoring)
Sample Vendors And Products

Microsoft Office 2007
OpenOffice.org
Sun StarOffice
Google Apps
Microsoft SharePoint, Exchange, Live Meeting
IBM Domino / Lotus Notes
Oracle Collaboration Suite
Sun Java Enterprise System
Novell GroupWise
WebEx Communications
Microsoft SharePoint
EMC Documentum, FileNet, Hummingbird, IBM
Content Management, Interwoven, Mobius Management
Systems, Open Text, Oracle Content Services, Stellent,
and Vignette
Microsoft IIS, Commerce Server
ATG, Escalate Retail, Comergent, Oracle, SAP
Microsoft BizTalk Server, SharePoint Server
Captaris Workflow, EMC Documentum, Global 360,
IBM FileNet, Open Text
Pegasystems, Oracle, SAP, TIBCO, webMethods, BEA
Systems, SeeBeyond, GXS, Sterling Commerce
EAI (enterprise application integration)

Database management systems (DBMS), data
Microsoft SQL Server, PerformancePoint Server
Master data management, data quality, metadata Teradata, IBM, Oracle, MySQL, Ingres, PostgreSQL,
Sybase
Financial planning, corporate performance
Oracle Hyperion, Business Objects, Informatica,
management, reporting, analytics, dashboards,
Cognos, Information Builders, MicroStrategy, SAS
scorecards,
enterprise
search,software
ETL, OLAP,
Wide variety
of specialized
thatquery
helps
Various products/vendors by business function and
organizations streamline business processes and
improve results
industry
Customer Relationship Management

Sales force automation, marketing campaign
Hosted CRM
Enterprise resource planning: supply chain
Oracle Siebel, PeopleSoft

Onyx, Sage, mySAP CRM, Salesforce.com, Amdocs
Microsoft Dynamics CRM
SAP
Oracle Fusion (E-Business Suite, J.D. Edwards,
PeopleSoft)
Lawson, Intentia, Infor, Sage, Ariba,
Microsoft Dynamics
ERP / Supply
Chain
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Initiatives
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This worksheet estimates all costs needed to implement the initiative, including hardware, software, IT labor/services, and
user labor costs.
Hardware
Unit Label
Cost per Unit

Annual
One-Time*
Recurring*
Unit Quantity
3-Year Total
Comments
Client Hardware
PCs
PCs
2,500
1,000
150
3,625,000
PC Upgrades
PCs
2,500
200
30
725,000
Mobile Devices
200
30
Other
200
30
3,000,000
450,000
4,350,000
2,250
36,250
Sub Total
Server Hardware
Servers
Storage (including backups,
redundancy, power supplies,
etc.)
Network Equipment
Servers
1.7
15,000
Terabytes
0.5
10,000
Other
1,500
7,250
Sub Total
30,000
4,500
43,500
Total
3,030,000
454,500
4,393,500
* One-Time costs are typically incurred at the beginning of the project. Annual Recurring costs are on-going costs necessary throughout the life of the project.
Software
The software license is typically a one-time cost. Software maintenance (Software Assurance) is an optional annual recurring cost
License
Quantity
Annual
Recurring
(Maintenance)
One-Time
(License)
3-Year Total
Comments
Client Software
Application A
1,500
300
69
Application B
100
23
Desktop Operating System
2,500
100
23
422,500
Client Access Licenses (CALs)
1,500
10
25,350
Other
Sub Total
715,000
164,450
760,500
1,208,350
Server Software
Server Operating System
1.7
2,000
460
5,633
Database
8,000
1,840
22,533
Server Application
10,000
2,300
28,167
Utilities
Other
Sub Total
33,333
7,667
56,333
Total
748,333
172,117
1,264,683

One-time Implementation Labor/Services
Time
Time Unit
Annual
Recurring
One-Time
Cost per Time

Unit
3-Year Total
Planning, Evaluation and Project
Person-weeks
30.0
2,240
67,204
Engineering
Person-weeks
18.0
2,240
40,323
Development
Person-weeks
33.6
2,240
75,269
Lab Testing
Person-weeks
7.2
2,240
16,129
Pilot Testing
Person-weeks
12.0
2,240
26,882
Rollout
Person-weeks
36.0
2,240
80,645
Performance Tuning
Person-weeks
4.8
2,240
10,753
Documentation
Person-weeks
4.8
2,240
10,753
Implementation User Support
Person-weeks
4.8
2,240
10,753
Consultants
Person-weeks
48.0
6,720
322,581
External Services
Person-weeks
9.6
6,720
64,516
Other
Person-weeks
12.0
2,240
Total
752,689
Comments
26,882
752,689
*1 Person-week is equivalent to 2 employees each dedicating 50% of a week to the task or 1 person dedicating 8 hrs per week over 5 weeks.
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Costs
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Annual
On-Going
Labor/Services
This worksheet
estimates
all costs needed to implement the initiative, including hardware, software, IT labor/services, and
user labor costs.
Unit Quantity
Annual
Recurring
One-Time
Unit*
Cost per Unit
3-Year Total
Comments
Maintenance
Full Time Equivalents
0.20
116,488
69,893
Support
FTEs
0.20
116,488
69,893
Customization
FTEs
0.10
116,488
34,946
Development
FTEs
0.20
116,488
69,893
Upgrades
FTEs
0.04
116,488
13,979
Performance Tuning
FTEs
0.04
116,488
13,979
External Services
FTEs
174,731
Bandwidth
Other
Total
90,860
272,581
*FTE (Full Time Equivalent): 1 full time employee is equivalent to 2 employees each dedicating 50% of their work time to the task
Incremental Help Desk Calls

Percentage of users who contact the
service desk due to issues/questions
related to the solution implementation
40%
Number of contacts per user (who

contact the help desk)
1.5
Average service desk resolution time

per call (in minutes)
25
1250.0
Additional service desk time (hours)

Total
53,781
IT Training
Formal (Classroom)
Training
11.2
Staff trained with this type of training
56.0
32
Hours of training per staff member
Independent
Learning (SelfStudy)
Internal
Training
3-Year Total
Comments
56.0
16
40
Labor Cost per Hour
64
64
64
Training time (labor cost)
2,044
1,022
2,555
Class and Additional Fee Cost per

trainee
1,500
300
75
Cost per Employee Trained
3,544
1,322
2,630
Total Cost
39,689
74,022
147,255
260,966

End-User Labor
% of Users Impacted
Hours per User Impacted

Annual OnGoing
One-Time
# Of Users
3-Year Total
Comments
Solution planning & testing
2%
100
10
45,265
Downtime (Unable to be
productive); e.g. during
implementation of the solution
2%
100
4,526
Resolution of issues related to

the new solution
6%
300
2 $
149,374
20%
1000
0 $
181,059
4%
200
10 $
271,589
0%
0 $
0%
0 $
System configuration
Data entry (not previously
required)
Other
Other
Total
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Costs
298,748
117,689
651,814
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End-User
Training
This worksheet
estimates all costs needed to implement the initiative, including hardware, software, IT labor/services, and
user labor costs.
External Classroom
Training
Independent
Learning (SelfStudy)
Internal
Training
% of Employees trained
10%
20%
40%
Employees trained
500
1,000
2,000
Hours of training per employee

Labor Cost per Hour
45 $
45
181
136
362
Class and Additional Fee Cost per

trainee
100
60
Cost per Employee Trained
281
196
365
Total Cost
140,530
195,795
729,238
One Time
Organization Total
Annual
Recurring
Comments
45
Training time (labor cost)
Summary
Total
1,065,562
Per PC
3-Year Total
One Time
Annual Recurring
3-Year Total
Hardware
Client Hardware
Server Hardware
$
$
$
3,000,000
30,000
3,030,000
$
$
$
450,000
4,500
454,500
$
$
$
4,350,000
43,500
4,393,500
$
$
$
600
6
606
$
$
$
90
1
91
$
$
$
870
9
879
$
$
$
715,000
33,333
748,333
$
$
$
164,450
7,667
172,117
$
$
$
1,208,350
56,333
1,264,683
$
$
$
143
7
150
$
$
$
33 $
2 $
34 $
242
11
253
One-time Implementation Labor/Servic

Annual On-Going Labor/Services
IT Training
$
$
$
$
752,689
53,781
260,966
$
$
90,860
$
$
$
$
752,689 $
272,581 $
53,781 $
260,966 $
151
11
52
$
$
$
$
- $
18 $
- $
- $
151
55
11
52
Sub-Total
1,067,435
90,860
1,340,016
213
18
268
End-User Labor
End-User Training
$
$
298,748 $
1,065,562
117,689
$
$
651,814
1,065,562
$
$
60
213
$
$
24
-
$
$
130
213
Sub-Total
1,364,310
117,689
1,717,376
273
24
343
Total
6,210,079
835,166
8,715,576
1,242
167
1,743
Sub-Total
Software
Client Software
Server Software
Sub-Total
339770502.xls
Costs
12 of 33
Annual including hardware, software, IT labor/services, and
This worksheet estimates all costs needed to implement the initiative,
One Time
Recurring
3-Year Total
One Time
Annual Recurring
user labor costs.
$
$
$
$
$
3,030,000 $
748,333 $
1,067,435 $
1,364,310 $
6,210,079 $
454,500
172,117
90,860
117,689
835,166
$
$
$
$
$
4,393,500
1,264,683
1,340,016
1,717,376
8,715,576
Total Implementation Costs

$10,000,000
$9,000,000
$8,000,000
$1,717,376
Total Costs
$7,000,000
$6,000,000
$5,000,000
$1,340,016
$1,264,683
$4,000,000
$3,000,000
$2,000,000
$4,393,500
End-User
Labor &
Training
$
$
$
$
$
Costs ($ per PC)
Hardware
Software
Total
$1,600
$400
IT Labor, Services,
& Training
Software
$879
Hardware
$200
3-Year Total

(Per PC)
$2,000
IT Training
$651,814
$260,966
$53,781
$272,581
$752,689
$56,333
$1,208,350
$43,500
Incremental Help
Desk Calls
$4,350,000
Server Software
Annual On-Going
Labor/Services
One-time
Implementation
Labor/Services
Client Software
$1,000,000
Server Hardware
$3-Year Total
Client Hardware
End-User Training
$1,800
End-User Labor
Total Costs ($ per PC)
Total Costs
$253
$600
Software
$1,065,562
$3,000,000
$2,000,000
$268
End-User Labor &

Training
$800
End-User Training
$9,000,000
$4,000,000
$343
$-
$10,000,000
$5,000,000
879
253
268
343
1,743
$1,800
$1,000
$6,000,000
3-Year Total
$
$
$
$
$
$2,000
3-Year Total
$7,000,000
91
34
18
24
167

(Per PC)
$1,200
IT Labor,
Services, &
Training
$-
$8,000,000
$
$
$
$
$
$1,400
Hardware
$1,000,000
606
150
213
273
1,242
$1,600
$1,400
$1,200
$1,000
$800
$213
$130
$52
$11
$55
$151
$11
$242
$9
$600
$400
$870
End-User Labor
IT Training
Incremental Help Desk
Calls
Annual On-Going
Labor/Services
One-time
Implementation
Labor/Services
Server Software
Client Software
$200
Server Hardware
$3-Year Total
Client Hardware
339770502.xls
Costs
13 of 33
IT Labor TCO and TCO Savings

This worksheet estimates IT Labor TCO by estimating/allocating labor effort across common IT staff activities (as a % of total by category). The number of FTEs (full-time equivalents) the calculated. Then the likely % reduction in
effort (for existing activities only) enabled by the solution is estimated. All increases in labor (required to implement/support the new solution) should be included in the "Costs" worksheet. As-is (current) and To-be (after the solution
is fully implemented) TCO is calculated on displayed in bar charts to the right. The benefit (summarized at the bottom) is any annual on-going TCO savings enabled by the initiative.
IT Labor TCO by General Function

157.8
3.2%
31.7
Total IT Employees (IT Staff) FTEs

IT Employees as % of Total PC Users
Ratio of PC Users to IT Staff
Source of User to IT staff ratios is based on analysis of U.S. Department of Labor, Bureau of Labor Statistics data and is industrydependent
% of
Total*
FTEs*
Average
Burdened
Cost**
As-Is
TCO / PC
Total IT Labor TCO /

Year
PC Management Services
PC/User administration, security, sw/hw

deployment, data backup
17%
27
$116,488
625
3,124,482
Help Desk (Tech Support)
Service Desk / Technical Support. Call

center (remote), and deskside (on-site)
support of user computing
16%
25
$ 78,477
396
1,981,118
Server & Network Mgmt Services
Management and administration of servers,

data storage, and the network
21%
33
$116,488
772
3,859,654
Application Development
Application development, testing,

troubleshooting, and support.
30%
47
$120,844
$ 1,144
5,719,992
Administration & Other
Finance, purchasing, training, planning,

administration, senior management
overhead, other
16%
25
$110,803
559
2,797,190
100%
158
$ 3,496
17,482,436
Total IT FTEs
Comments
* include management, except senior management; which is included in "Administration"

** Base compensation plus bonuses X burden rate. Defaults are from "IT Staff Labor Rates" on the Profile worksheet.
Detailed IT Labor TCO and Savings

Description
% of
Total
% Reduction
FTE's
As-Is
TCO
To-Be TCO
Savings
Comments
PC HW / SW Evaluation
PC hardware and software planning &

evaluation
5%
1.4
18.0% $
33 $
27 $
PC Image Management
Design, test, certify, and update images
7%
1.9
36.0% $
44 $
28
15.75
User Admin & Provisioning
User adds, moves and changes.
9%
2.4
45.0% $
56 $
31
25.31
Application Management
Configuration, packaging, compatibility

testing, inventory, piloting
16%
4.2
36.0% $
99 $
63
35.52
Software Deployment
Software deployment, changes, and removal
11%
2.8
63.0% $
66 $
24
41.44
Security Assessm't & Planning
Security policy setting, assessment and

planning.
9%
2.4
18.0% $
56 $
46
10.12
Security Patch Management
Management and distribution of security

patches
4%
1.1
27.0% $
25 $
18 $
6.75
Security Incident Remediation
Handling of security breaches,

unauthorized access, theft, etc.
2%
0.5
63.0% $
12
5 $
7.87
Data Mgmt, Backup & Restore
PC-based information and data

management (file shares) & backup
5%
1.3
36.0% $
31 $
20
11.25
Tools/GPO Management
Directory services, group policy objects, sw

distribution, & other tools
13%
3.5
36.0% $
82 $
53
29.60
3rd Level Support
Advanced diagnostics/troubleshooting escalated from help desk
19%
5.2
36.0% $
120 $
77
43.33
232.87 $
37.3%
625 $
392
Total ($ per PC)

Total (% of Total TCO)
339770502.xls
27
100%
IT Labor
5.92
As-Is TCO
To-Be TCO
PC Management TCO
TCO ($/PC)
$$50
$100
$150
PC HW / SW Evaluation
PC Image Management
User Admin & Provisioning
Application Management
Software Deployment
Security Assessm't & Planning
Security Patch Management
Security Incident Remediation
Data Mgmt, Backup & Restore
Tools/GPO Management
3rd Level Support
$ 232.87
14 of 33

Proprietary Applications
Custom developed application support
30%
7.5
40.0% $
118 $
71
47.04
Standard Desktop Software
Commercial off-the-shelf applications
15%
3.8
40.0% $
59 $
35
23.66
Operating Systems
Operating system-related issues
15%
3.7
40.0% $
58 $
35
23.14
Hardware (except printers)
Hardware troubleshooting/repair
12%
3.1
30.0% $
49 $
34
14.68
Data Comm./Network
Networking
10%
2.5
30.0% $
39 $
27
11.57
Password Resets
Reset user passwords
5%
1.2
70.0% $
19
13.65
Databases
Database troubleshooting
5%
1.1
20.0% $
18 $
14 $
3.60
Service Requests
Forward requests for other services
4%
1.1
20.0% $
17 $
13 $
3.31
Voice Communications
Telecommunications
3%
0.7
20.0% $
10
8 $
2.07
Printers
Printer troubleshooting/repair
2%
0.6
30.0% $
10
7 $
2.93
0%
30.0% $
146 $
36.8%
396 $
251
Others
Total ($ per PC)
25
100%
$ 145.64
Help TCO
Desk
($/PC)TCO
As-Is TCO
$-
As-Is TCO
To-Be TCO
Manage network communication

infrastructure
12%
4.0
15.0% $
93 $
79
13.89
Hardware management
Deployment, configuration, administration,

support
11%
3.6
15.0% $
85 $
72
12.74
Operating system support

support
16%
5.3
30.0% $
124 $
86
37.05
Hardware management
Server application mgmt

support
24%
8.0
30.0% $
185 $
130
55.58
Operating system support
Security
Planning, assessment, patching, issue

remediation
14%
4.7
25.0% $
110 $
83
27.57
Storage management
Storage capacity planning and management
11%
3.6
15.0% $
85 $
72
12.74
Database Mgmt & Admin
Index management, replication, log

administration, data recovery, optimization
12%
4.0
15.0% $
93 $
79
13.89
0%
15.0% $
173 $
22.4%
774 $
Total ($ per PC)

33
100%
601
2.8
9.0% $
69 $
Detailed engineering, development
42%
19.9
12.0% $
480 $
423
57.66
Test and pilot
22%
10.4
9.0% $
252 $
229
22.65
Advanced support and troubleshooting

(escalated from help desk)
30%
14.2
12.0% $
343 $
302
41.18
Development
Testing
Support
Other
0%
Total ($ per PC)

9.0% $
47
100%
128 $ 1,144
11.2%
1,016
Database Mgmt & Admin

Other
Application
Development TCO
TCO ($/PC)
$-
Development
Testing
Support
Other
As-Is TCO
To-Be TCO
Administration & Other TCO
Needs assessment, standards

development, evaluation, business case
development, project planning
19%
4.8
7.0% $
106 $
Purchasing
Purchasing, procurement, and vendor

management
14%
3.5
21.0% $
78 $
62
16.45
Planning
Finance
Budgeting and chargeback tasks
18%
4.5
28.0% $
101 $
73
28.20
Purchasing
Training
IT and end-user training
16%
4.0
7.0% $
90 $
83 $
6.27
Senior management
28%
7.1
7.0% $
157 $
Finance
Senior IT management overhead
Other
Administration and other
5%
1.3
Total ($ per PC)

339770502.xls
25
100%
7.0% $
28 $
71 $
12.7%
559 $
26 $
488
7.44
10.96
1.96
71.27
$100 $200 $300 $400 $500 $600
Design
Planning
$200
Security
6.18
146
$150
Storage management
$ 127.67
99 $
TCO ($/PC)
$50
$100
Server application mgmt
As-Is TCO
To-Be TCO
62 $
$-
Network management
$ 173.46
6%
Needs assessment, conceptual design
$150
Design
$100
Server & Network Mgmt TCO
Network management
Other
$50
Proprietary Applications
Standard Desktop Software
Operating Systems
Hardware (except printers)
Data Comm./Network
Password Resets
Databases
Service Requests
Voice Communications
Printers
Others
$-
TCO ($/PC)
$50
$100
$150
$200
Training
Senior management
Other
IT Labor
15 of 33
Total
$3,499
IT Labor TCO / PC / Year

Full-Time Equivalents
To-Be
Savings
To-Be
TCO
Savings
%
As-Is FTEs
FTEs
Savings
$ 392 $ 232.87
37%
26.8
19.5
$ 251 $ 145.64
37%
25.2
18.5
$ 601 $ 173.46
22%
33.2
27.1
$ 1,016 $ 127.67
11%
47.3
42.6
$ 488 $
71.27
13%
25.2
22.4
$ 2,748
751
$3,500
$559
Administration &
Other
$3,000
$2,500
$1,144
$488
$2,000
$1,016
$1,500
$1,000
$774
$396
Key $500
SoftGrid Benefits
$625
$As-Is TCO
$601
$251
$392
Application
Development
Server & Network
Mgmt Services
Help Desk (Tech
Support)
PC Management
Services
To-Be TCO
157.9
130.1
27.8
IT Labor Comparison
IT Labor TCO Comparison

$4,000
21%
7.3
6.8
6.1
4.8
2.9
FTEs (Full Tim e Equivale nts )
As-Is
TCO
$ 625
$ 396
$ 774
$1,144
$ 559
TCO pe r PC pe r Ye ar
TCO pe r PC per Year
Summary
As-Is TCO
To-Be TCO
As-Is FTEs
To-Be FTEs
47.3
$1,400
50.0
45.0
$1,200
33.2
$1,000
$800
26.8
35.0
25.2
25.2
22.4
19.5
30.0
25.0
27.1
$600
$400
40.0
42.6
18.5
20.0
15.0
10.0
$200
$-
5.0
$625 $392
$396 $251
$774 $601
$1,144$1,016
$559 $488
PC Management
Services
Help Desk (Tech

Support)
Server & Netw ork

Mgmt Services
Application
Development
Administration &
Other
339770502.xls
IT Labor
16 of 33
Direct Cost Savings

This workbook estimates various direct IT and business cost savings enabled by the solution.
Direct Cost Savings - IT

Reduce/Avoid Software Costs - PCs
Capabilities/features included in the proposed solution that can reduce the need for (planned) or current costs of 3rd party software.
One-Time
Annual Costs
Costs Avoided
Avoided
% of PCs
Application A
25% $
100
20
Application B
Imaging tools
Encryption tools
15% $
50% $
30%
200
10
$
$
$
40
20
$
$
300,000 $
20
20
205,000
OS virtualization
Security Utilities
20%
100%
$
Total
3-Year Total
$
$
200,000
240,000
$
$
25,000
90,000
$
$
$
60,000
300,000
915,000
Comments
Reduce/Avoid Software Costs - Servers

Capabilities/features included in the proposed solution that can reduce the need for current or expected costs of 3rd party software.
Approximate Total Number of Existing
Servers
100
One-Time
Annual Costs
Costs Avoided
Avoided
Quantity
3-Year Total
Business Applications
Back-Up / Recovery
6
6
$
$
6,000
200
$
$
OS virtualization
Security Utilities
4
4
$
$
200
200
$
$
900 $
30 $
30 $
30 $
Other
$
$
500
39,800
$
$
75 $
5,970 $
Total
Comments
52,200
1,740
1,160
1,160
1,450
57,710
Reduce/Avoid Hardware Costs

One-Time
Annual Costs
Costs Avoided
Avoided
3-Year Total
6,000
34,800
$
$
6,000
-
17,400
$
$
$
36,000
900 $
### $
### $
### $
5,400 $
Quantity
Server Consolidation - avoid
purchasing new servers
Virtualization
Peripherals
Replacement
Other
Total
900
Comments
52,200
Reduce/Avoid IT Service Costs

One-Time
Annual Costs
Costs Avoided
Avoided
3-Year Total
80
80
$
$
$
$
36,000
36,000
Other
Other
$
$
Other
$
$
### $
### $
### $
24,000 $
72,000
Quantity
Consulting Services (Hours)
Outsourcing (Hours)
Total
339770502.xls
$
$
Direct Savings
150
150
Comments
17 of 33
Direct Cost Savings

Reduce Power/Electricity Usage Costs
PCs
Average Watts per monitor (CRT/LCD mix)

Total
kW-hours per day
Electricity cost per kW-hour
$
Electricity cost per PC/Server per year
$
Number of PCs/Servers
% PCs/Servers likely to be impacted by
power saving measures
60
10
200
3.36
0.09
110
5,000
810
19.20
0.09
631
100
$
$
Comments
24
100%
32
160,965
3-Year Total
100%
14
$
$
Ann'l Total
800
50%
Average time per day (hours) that power

will be reduced for impacted PCs/Servers
% reduction in power usage during this
time
Total Benefit per PC/Server
Total
Servers
140
Average Watts per PC/Server
100%
$
$
631
63,072 $
224,037
672,111
Other IT Cost Avoidance/Reductions

One-Time
Annual Costs
Costs Avoided
Avoided
Quantity
Reduce Bandwidth Costs
Reduce Heating, Cooling Costs
10
2
$
$
Reduce Other Facilities Costs

Other
10
10
$
$
$
Total
$
$
3-Year Total
150 $
1,200 $
### $
### $
3,900 $
Comments
4,500
7,200
11,700
Direct Cost Savings - Business

Reduce/Avoid Travel Expenses
Comments
# of employees impacted (travel regularly

and are likely to benefit from the proposed
solution)
445
Average number of trips per year currently

per impacted employee
% of trips that could be avoided due to the

proposed solution
Trips avoided
Cost of average trip
$
Total Annual Benefit
$
3-Year Total
$
3%
67
1,100
73,355
220,066
Reduce Business Services

One-Time
Annual Costs
Costs Avoided
Avoided
Quantity
Consulting Services (Hours)
Outsourcing
$
$
$
$
Other
Other
$
$
$
Total
3-Year Total
150
150
$
$
### $
### $
$
Comments
Reduce Other Business Expenses

One-Time
Annual Costs
Costs Avoided
Avoided
Quantity
Supply costs
70
Raw Material Costs

Inventory carrying costs
$
$
$
$
90
30
Operations
Other
$
$
$
$
60
60
Other
Other
$
$
Other
339770502.xls
Direct Savings
3-Year Total
$
$
$
$
$
### $
### $
### $
Comments
18 of 33
Direct Cost Savings

$
Total
Summary
Organization Total
Annual
Recurring
One Time
3-Year Total
$
300,000 $
205,000 $
915,000
$
39,800 $
5,970 $
57,710
$
36,000 $
5,400 $
52,200
$
$
24,000 $
72,000
$
224,037 $
672,111
$
$
3,900 $
11,700
$
375,800 $
468,307 $ 1,780,721
IT Savings
Software - Clients
Software - Servers
Hardware
IT Services
Power/Electricity Usage
Other IT Costs
Total
Per PC
$
$
$
$
$
$
$
One Time
60
8
7
75
Annual Recurring
$
41
$
1
$
1
$
5
$
45
$
1
$
94
3-Year Total
$
183
$
12
$
10
$
14
$
134
$
2
$
356
Business Savings
Travel Expenses
Business Services
Other Business Expenses
Total
$
$
$
Total
$450
Benefit ($ per PC)
$400
$350
375,800
$
$
$
$
73,355 $
$
$
73,355 $
220,066
220,066
$
$
$
$
$
$
$
$
15
15
$
$
$
$
44
44
541,662 $
2,000,787
75
108
400
Direct Cost Savings

$$44
$2
Other Business
Expenses
Business Services
$300
$134
$250
$200
Other IT Costs
$14
$10
$12
$150
$100
Travel Expenses
Power/Electricity
Usage
IT Services
$183
Hardware
Software - Servers
$50
Software - Clients
$3-Year Total
339770502.xls
Direct Savings
19 of 33
User Productivity Benefits Assessment

This worksheet estimates the business user productivity benefits enabled by the initiative. These benefits are calculated based on time savings of conducting common
business activities. Although these benefits are "Indirect" (not part of the IT budget), they do typically improve profitability. The method below tends to be more conservative
(yet more comprehensive) than other methods of estimating business user impacts. This productivity analysis only estimates efficiency improvements, not effectiveness
(agility, decision-making) improvements. A "conversion factor" is applied because not all saved time may be used to conduct other value-added activities.
On This Worksheet:
Allocation of Time Across Business Activity Categories
Allocation of Time Across Detailed Activities and Efficiency Improvements
Summary of Productivity Improvements (Time Saved)
Business Value of Time Saved
Allocation of Time Across Business Activity Categories

Review/modify how much time (as a portion % of total work time) users typically spend conducting the common business activities below. Allocate time for the activity
categories then the activity sub-categories. This is done for both information workers and structured task workers. The resulting hours per week is calculated.
Time Allocation
Task
Info Wrkr Wrkr
Hrs / Wk
Info
Task
Wrkr
Wrkr
Comments
Activity Category Totals

32%
21%
4%
43%
100%
30%
3%
2%
65%
100%
11.2
7.4
1.4
15.1
35.1
10.5
1.1
0.7
22.8
35.1
25%
10%
24%
31%
10%
100%
28%
5%
8%
52%
7%
100%
2.8
1.1
2.7
3.5
1.1
11.2
2.9
0.5
0.8
5.5
0.7
10.5
60%
15%
16%
9%
100%
47%
28%
15%
10%
100%
4.4
1.1
1.2
0.7
7.4
0.5
0.3
0.2
0.1
1.1
35%
25%
17%
13%
6%
4%
100%
40%
25%
6%
15%
8%
6%
100%
0.5
0.4
0.2
0.2
0.1
0.1
1.4
0.3
0.2
0.0
0.1
0.1
0.0
0.7
Non-Computing-Related Activities
15.1
22.8
Total
35.1
35.1
Individual Computing
Collaborative Computing
PC Systems Management
Total (Must sum to 100%)
Activity Sub-Categories
Document Creation
Data & Information Access/Analysis
Email, Calendar, Contact, & Task Mgmt
LOB Application-Related Activities
Other
Document Collaboration
Workflow (routing)
Coordination / Project Mgmt
Other
Support, Self-Help, & Learning
Performance
Mobility & Remote Connectivity
Security & Privacy
System UI Navigation
Availability & Reliability
40.0
12.0
NonComputingRelated
Activities
35.0
30.0
25.0
15.1
20.0
1.4
15.0
7.4
5.0
10.0
8.0
1.1
11.2
10.5
0.0
Info Wrkr
5.5
PC Systems
Management
0.7
1.1
Task Wrkr
0.7
3.5
22.8
10.0
339770502.xls
Time by Business Activity - Individual Computing
Collaborative
Computing
Individual
Computing
H
o
u
rsp
e
rW
e
e
k
Hours per W
eek
Time by Business Activity - Summary
6.0
4.0
2.0
2.7
1.1
0.8
0.5
2.8
2.9
Info Wrkr
Task Wrkr
0.0
Productivity
Other
LOB
ApplicationRelated
Activities
Email,
Calendar,
Contact, & Task
Mgmt
Data &
Information
Access/Analysis
Document
Creation
20 of 33

Time by Business Activity - Collaborative Computing
Time by Business Activity - PC Systems Management
8.0
1.6
0.7
6.0
1.2
5.0
1.1
Coordination /
Project Mgmt
H
o
u
r
sp
e
rW
e
e
k
4.0
3.0
2.0
0.1
0.2
0.3
0.5
0.0
Info Wrkr
1.2
0.1
0.1
0.2
1.0
0.2
0.8
Workflow
(routing)
4.4
1.0
1.4
Other
H
o
u
r
sp
e
rW
e
e
k
7.0
Document
Collaboration
0.6
0.4
0.4
0.2
0.5
0.0
0.1
0.1
0.0
0.2
0.3
0.0
Task Wrkr
Info Wrkr Task Wrkr
Availability &
Reliability
System UI
Navigation
Security &
Privacy
Mobility &
Remote
Connectivity
Performance
Support, SelfHelp, &
Learning
Allocation of Time Across Detailed Activities and Efficiency Improvements

Allocate user time across each of the detailed activities below. Hours per week is calculated/displayed. Then estimate the percent improvement in activity efficiency enabled
by the initiative. Hours saved per week is calculated/displayed. For example, if a user spends 1 hour per week conducting an activity, a 10% efficiency improvement should
free up 6 minutes per week for other value-adding work. Note that a 10% efficiency improvement does not imply that the user will spend 10% less time conducting that
activity (they may do more of that activity if they are more efficient at it); it does imply that the user is expected to complete that activity 10% more efficiently.
Activity
Time %
Task
Info Wrkr Wrkr
Hours / Week
Info
Task
Wrkr
Wrkr
Efficiency
Improvement
Time Saved
Info
Task
Wrkr Wrkr
Comments
Document Creation
Document general layout/set-up
Formatting documents
Searching for functionality "how do I"
Creating graphics
Typing, thinking
Total (Time % must sum to 100%)
5%
20%
10%
10%
55%
100%
5%
15%
5%
10%
65%
100%
0.14
0.56
0.28
0.28
1.54
2.81
0.15
0.44
0.15
0.29
1.92
2.95
1%
4%
3%
3%
0%
1%
0.00
0.02
0.01
0.01
0.00
0.04
0.00
0.02
0.00
0.01
0.01
0.04
40%
20%
20%
10%
10%
100%
45%
15%
20%
10%
10%
100%
0.45
0.22
0.22
0.11
0.11
1.12
0.24
0.08
0.11
0.05
0.05
0.53
3%
9%
8%
9%
9%
6%
0.01
0.02
0.02
0.01
0.01
0.07
0.01
0.01
0.01
0.00
0.00
0.03
75%
15%
10%
100%
75%
15%
10%
100%
2.02
0.40
0.27
2.69
0.63
0.13
0.08
0.84
0%
0%
0%
0%
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
20%
40%
0.70
2.19
10%
0.07
0.22
80%
60%
2.78
3.28
5%
0.14
0.16
100%
100%
3.48
5.47
3%
0.07
0.22
4%
96%
0%
100%
4%
96%
0%
100%
0.04
1.08
0.00
1.12
11.22
0.03
0.71
0.00
0.74
10.52
0%
0%
0%
0%
2%
0.00
0.00
0.00
0.00
0.18
0.00
0.00
0.00
0.00
0.29

Internet browsing/viewing
Searching for documents & folders
Collecting/combining information
Finding/accessing/combining data
Data analysis & reporting

Processing email
Managing calendar, contacts, and tasks
Note-taking, management

Data entry into LOB (line-of-business)
applications
Using LOB applications (or the predecessor
activity)
Other
Development time (macros, VBA, Access)
Reading, thinking, etc.
Other
Total
339770502.xls
Productivity
21 of 33

Activity
Time %
Task
Info Wrkr Wrkr
Hours / Week
Info
Task
Wrkr
Wrkr
Efficiency
Improvement
Time Saved
Info
Task
Wrkr Wrkr
Comments
Document collaboration (collaborative authoring,
sharing, reviewing, debating, mark-up, change
consolidation)
60%
60%
2.65
0.30
0%
0.00
0.00
35%
5%
100%
35%
5%
100%
1.55
0.22
4.42
0.17
0.02
0.49
0%
0%
0%
0.00
0.00
0.00
0.00
0.00
0.00
50%
50%
0.55
0.15
0%
0.00
0.00
50%
100%
50%
100%
0.55
1.10
0.15
0.29
0%
0%
0.00
0.00
0.00
0.00
70%
70%
0.83
0.11
0%
0.00
0.00
30%
100%
30%
100%
0.35
1.18
0.05
0.16
0%
0%
0.00
0.00
0.00
0.00
Reporting - Disseminating and managing

documentation/reports
70%
90%
0.46
0.09
0%
0.00
0.00
Social networking (connecting people, sharing reusable knowledge)
30%
10%
0.20
0.01
0%
0.00
0.00
0%
100%
0%
100%
0.00
0.66
7.37
0.00
0.11
1.05
0%
0%
0%
Meetings (document-collaboration-focused)
Document management
Workflow (routing)
Workflow activities paper-based (review,
approval, routing, signature collection)
Workflow activities - electronic

Document-creation-intensive project
coordination/management (issue tracking, task
management, document status)
Coordination of other business activities
Other
Other
Total
Activity
Time %
Task
Info Wrkr Wrkr
Mins / Week
Info
Task
Wrkr
Wrkr
Efficiency
Improvement
0.00
0.00
0.00
0.00
0.00
0.00
Time Saved
(Mins)
Info
Task
Wrkr Wrkr
Comments

Support time (helpdesk)
Unproductive resolution lag time (downtime)
PC upgrade; OS re-install
Install SW, patches, peripherals, drivers
Self-help - system "how-to" questions; Peer
support
20%
15%
5%
20%
20%
15%
5%
20%
5.9
4.4
1.5
5.9
3.4
2.5
0.8
3.4
15%
15%
23%
25%
0.9
0.7
0.3
1.5
0.5
0.4
0.2
0.8
40%
40%
11.8
6.7
6%
0.7
0.4
100%
100%
29.46
16.84
14%
4.06
2.32
30%
30%
40%
100%
30%
30%
40%
100%
6.3
6.3
8.4
21.05
3.2
3.2
4.2
10.52
50%
50%
20%
38%
3.2
3.2
1.7
8.00
1.6
1.6
0.8
4.00
20%
20%
2.9
0.5
10%
0.3
0.1
15%
45%
20%
100%
15%
45%
20%
100%
2.1
6.4
2.9
14.31
0.4
1.1
0.5
2.53
12%
12%
9%
11%
0.3
0.8
0.3
1.57
0.0
0.1
0.0
0.28
90%
5%
5%
100%
90%
5%
5%
100%
9.8
0.5
0.5
10.94
5.7
0.3
0.3
6.31
18%
25%
25%
18%
1.7
0.1
0.1
1.99
1.0
0.1
0.1
1.15
75%
25%
100%
75%
25%
100%
3.8
1.3
5.05
2.5
0.8
3.37
18%
18%
18%
0.7
0.2
0.88
0.4
0.1
0.59
70%
30%
100%
70%
30%
100%
2.4
1.0
3.37
1.8
0.8
2.53
35%
35%
35%
0.8
0.4
1.18
0.6
0.3
0.88
1.40
0.70
21%
0.29
0.15
15.08
22.80
0%
0.00
0.00
35.1
35.1
1%
0.5
0.4
Performance
Processor/HDD response time
Network/Server response time
PC start-up, shut-down, resume

Remote & wireless connectivity, Network issues
Lost productivity due to dead laptop battery
Laptop shut-down, start-up, wake/resume
Time managing/accessing files for off-line use
Security & Privacy

Security pre-cautions
Virus, adware and other security issues
Intrusion, unauthorized use, data loss
User Interface navigation
Change system settings, preferences

Recovering from crashes/conflicts
Rework due to lost work
Total (Hours per Week)
Total
339770502.xls
Productivity
22 of 33

Summary of Productivity Improvements (Time Saved)
The table below summarizes time saved by business activity category.
Info Workers
As-Is
To-Be
Saved
Task Workers
%
Savings
Total (Weighted Average)

%
As-Is To-Be Saved Savings
%
To-Be Saved Savings
As-Is
Document Creation
Other
Total
2.8
1.1
2.7
3.5
1.1
11.2
2.8
1.1
2.7
3.4
1.1
11.0
0.04
0.07
0.00
0.07
0.00
0.18
1%
6%
0%
2%
0%
2%
2.9
0.5
0.8
5.5
0.7
10.5
2.9
0.5
0.8
5.3
0.7
10.2
0.04
0.03
0.00
0.22
0.00
0.29
1%
6%
0%
4%
0%
3%
2.9
0.8
1.7
4.6
0.9
10.8
2.8
0.7
1.7
4.4
0.9
10.6
0.0
0.0
0.0
0.2
0.0
0.24
1%
6%
0%
3%
0%
2%
4.4
1.1
1.2
0.7
7.4
4.4
1.1
1.2
0.7
7.4
0.00
0.00
0.00
0.00
0.00
0%
0%
0%
0%
0%
0.5
0.3
0.2
0.1
1.1
0.5
0.3
0.2
0.1
1.1
0.00
0.00
0.00
0.00
0.00
0%
0%
0%
0%
0%
2.2
0.7
0.6
0.4
3.9
2.2
0.7
0.6
0.4
3.9
0.0
0.0
0.0
0.0
0.00
0%
0%
0%
0%
0%
0.5
0.4
0.2
0.2
0.1
0.1
1.4
15.1
35.1
0.4
0.2
0.2
0.1
0.1
0.0
1.1
15.1
34.6
0.07
0.13
0.03
0.03
0.01
0.02
0.29
0
0.5
14%
38%
11%
18%
18%
35%
21%
0%
1.4%
0.3
0.2
0.0
0.1
0.1
0.0
0.7
22.8
35.1
0.2
0.1
0.0
0.1
0.0
0.0
0.5
22.8
34.6
0.04
0.07
0.00
0.02
0.01
0.01
0.15
0
0.4
14%
38%
11%
18%
18%
35%
22%
0%
1.3%
0.4
0.3
0.1
0.1
0.1
0.0
1.0
19.4
35.1
0.3
0.2
0.1
0.1
0.1
0.0
0.8
19.4
34.6
0.1
0.1
0.0
0.0
0.0
0.0
0.22
0.0
0.5
14%
38%
11%
18%
18%
35%
21%
0%
1.3%
11.2
7.4
1.4
15.1
35.1
11.0
7.4
1.1
15.1
34.6
0.18
0.00
0.29
0.00
0.5
2%
0%
21%
0%
1.4%
10.5
1.1
0.7
22.8
35.1
10.2
1.1
0.5
22.8
34.6
0.29
0.00
0.15
0.00
0.4
3%
0%
22%
0%
1.3%
10.8
3.9
1.0
19.4
35.1
10.6
3.9
0.8
19.4
34.6
0.2
0.0
0.2
0.0
0.5
2%
0%
21%
0%
1.3%
Workflow (routing)
Other
Total
Performance
Security & Privacy
Total
Total
Summary
Total
Summary
Time (Hours / Week)

0.0 5.0 10.0 15.0 20.0 25.0
10.8
10.6
Time (Hours / Week)

0.0 1.0 2.0 3.0 4.0 5.0
As-Is
3.9
3.9
To-Be
1.0
0.8
19.4
19.4
Time (Hours / Week)

0.5
1.0
1.5
2.0
Workflow (routing)
Other
339770502.xls
To-Be
4.6
4.4
Time (Hours / Week)
0.0 0.1 0.1 0.2 0.2 0.3 0.3 0.4 0.4
2.5
0.4
0.3

Performance
0.7
0.7
As-Is
1.7
1.7
Other 0.9
0.9
2.2
2.2
0.8
Data & Information Access/Analysis 0.7
0.0
2.9
2.8
Document Creation
As-Is
To-Be
0.6
0.6
0.2
0.1
0.1
Security & Privacy
0.1
0.1
0.3
As-Is
To-Be
0.1
System UI Navigation 0.1
0.4
0.4
0.0
Availability & Reliability0.0
Productivity
23 of 33

Business Value of Time Saved
The table below calculates the value of time saved. Annual value is calculated by multiplying the hours saved per year times fully burdened hourly rate. The adjusted
value is discounted by the "Productivity Conversion Factor". The adjusted value is the productivity benefit value used elsewhere in the workbook.
50%
Productivity Conversion Factor* (0%-100%)
*Not all saved time will necessarily be used to conduct other value-adding activities. For example, if an employee completes assigned work more quickly and simply
goes home earlier, no added business value will result. However, organizations typically do find ways to convert most time saved into real business value (even
without laying off employees). For example: avoid hiring as the organization grows; redistributing work; re-deploying employees; conducting other activities; or
simply filling in the saved time with more work that wouldn't otherwise get done. The "Productivity Conversion Factor" discounts the value of the time saved to
account for inefficiencies/delays in converting the time saved into real business value. Since estimating time savings cannot easily be done accurately, it is also
used to provide more conservative $ values. A 100% Productivity Converstion Factor applies no discount.
Value per User per Year
Task
Wrkr
Info Wrkr
Weighted
Avg
*Total
Adjusted
Adjusted
(Per PC)
$ 74
$ 66
$
$ 460
$
$ 600
$
$
$
$
$
$
90
121
338
549
$
$
$
$
$
$
45
60
169
274
$
$
$
$
$
$
45
60
169
274
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Business Value of Productivity Benefits
Document Creation
Other
Total
$
$
$
$
$
$
110
189
186
484
$
$
$
$
$
$600
-
Performance
Security & Privacy
Total
Total
$
181
$
356
$
70
$
89
$
39
$
52
$
787
$
$ 1,271
$ 81
$ 140
$ 10
$ 40
$ 21
$ 31
$ 323
$
$ 923
$ 125
$ 236
$
36
$
62
$
29
$
41
$ 529
$
$ 1,078
$
$
$
$
$
$
$
$
$
63
118
18
31
14
20
265
539
$
$
$
$
$
$
$
$
$
63
118
18
31
14
20
265
539
$
484
$
$
787
$
$ 1,271
$ 600
$
$ 323
$
$ 923
$ 549
$
$ 529
$
$ 1,078
$
$
$
$
$
274
265
539
$
$
$
$
$
274
265
539
$400
Annual ProductivityBenefits ($/PC)
Workflow (routing)
Other
Total
PC Systems
Management
$500
$300
$265
$-
Collaborative
Computing
$200
$100
$274
Individual
Computing
$-
Summary
Total
339770502.xls
Productivity
24 of 33
Revenue Increase Enabled by the Solution

This worksheet estimates incremental revenue enabled by the solution. Not all projects will have credibly quantifiable revenue impacts. Revenue impacts can be difficult to accurately assess.
Research, analysis, and supplemental modeling is likely needed to credibly estimate true revenue impacts. One key is to target (at a detailed level) precisely what portion of revenue is likely to be
impacted (the segment) and how the solution is enabling the revenue increase (the driver). This model assumes the initiative will enable a one-time revenue increase (the same annual revenue
benefit throughout the life of the solution).
Note that the benefit is the marginal profit on the incremental revenue, not the revenue itself. We recommend using net operating profit, not gross margin: in the long run, on average, fixed costs
tend to increase at the same rate as revenue growth.
Segment A1
Other
Improved Product
Availability (fill
rate, up-time)
New/Enhanced
Products/Services
New/Expanded
Channels/Geograph
ies
Revenue ($000)
Profit
Margin
(% of
Sales)
Improved
Customer Service
Revenue
(% of
Total)
Improved
Marketing
Effectiveness
Addressed Segments (products,

channels, geographies, business
unit, and/or markets)
Revenue Increase Driver %
Improved Sales
Effectiveness
Segment Revenue
Annual
Benefit ($000)
Segment A2
Segment A3
3.0% $
3.0% $
3.0% $
Segment A4
Segment B1
2.0% $
2.0% $
117,744
78,496
78,496
Segment B2
Segment B3
2.0% $
2.0% $
78,496
78,496
10.3%
10.3%
1.5%
1.5%
0.0%
0.0%
0.5%
0.5%
0.0%
0.0%
0.0%
0.0%
0.0% 0.0% $
0.0% 0.0% $
162
162
Segment B4
Segment C1
1.0% $
1.0% $
39,248
39,248
10.3%
10.3%
1.5%
1.5%
0.0%
0.0%
0.5%
0.5%
0.0%
0.0%
0.0%
0.0%
0.0% 0.0% $
0.0% 0.0% $
81
81
Segment C2
Segment C3
1.0% $
1.0% $
39,248
39,248
10.3%
10.3%
1.5%
1.5%
0.0%
0.0%
0.5%
0.5%
0.0%
0.0%
0.0%
0.0%
0.0% 0.0% $
0.0% 0.0% $
81
81
1.0% $
78.0% $
100% $
39,248
3,061,348
3,924,805
10.3%
0.0%
2.3%
1.5%
0.0%
0.0%
0.0%
0.5%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0% 0.0% $
0.0% 0.0% $
$
81
1,784
Segment C4
All Other (Not Impacted)
Total
117,744
117,744
10.3%
1.5%
0.0%
0.5%
0.0%
0.0%
10.3%
10.3%
1.5%
1.5%
0.0%
0.0%
0.5%
0.5%
0.0%
0.0%
0.0%
0.0%
0.0% 0.0% $
0.0% 0.0% $
0.0% 0.0% $
10.3%
10.3%
1.5%
1.5%
0.0%
0.0%
0.5%
0.5%
0.0%
0.0%
0.0%
0.0%
0.0% 0.0% $
0.0% 0.0% $
243
162
162
Comments
243
243
Summary
The table and graph below summarize the annual revenue gain and margin on the revenue gain (the benefit).
New/Expanded Channels/Geographies
New/Enhanced Products/Services
Benefit
($ per PC)
$
$
$
Margin ($000)
1,338
446
$
$
$
268
89
$400
$350
Improved Product Availability (fill rate, up-time)
Other
Total (Annual)
Total (3-Year)
$
$
$
17,269
51,807
$
$
$
1,784
5,351
$
$
$
357
1,070
Revenue Growth (Margin)

Annual Benefit per PC
Improved Sales Effectiveness

Improved Marketing Effectiveness
Improved Customer Service
Revenue ($000)
$
12,952
$
$
4,317
$300
$250
$$89
$-
$200
$150
$268
$100
$50
$-
Other
Improved Product
Availability (fill rate,
up-time)
New/Enhanced
Products/Services
New/Expanded
Channels/Geographi
es
Improved Customer
Service
Improved Marketing
Effectiveness
Improved Sales
Effectiveness
Benefit
($ per PC)
339770502.xls
Revenue
25 of 33
Key Performance Indicator (KPI) Assessment (Optional)

Not all benefits can credibly be translated into financial ($) benefit terms. These are sometimes referred to as intangible benefits. This worksheet provides a structure (one of many)
to estimate how the initiative may impact non-financial KPIs.
The percentiles shown are how the organization's KPI performance compares to others in the industry. 0% represents worst performance in the industry (laggard); 50% is average
performance; 100% is best in the industry (world class performance). For example, being at the 20th percentile implies that 80% of the other organizations in the industry perform
better. The "Improvement" indicates how much the organization is expected to improve KPI performance due to the solution. The model assumes a linear relationship between KPI
performance and industry percentile -- a simplifying assumption.
Select "Business Objectives" and KPIs that are important to your business and are expected to be significantly impacted by the solution. Estimate "Laggard" and "World Class" KPI
values in your industry. Next determine what percentile your organization is currently performing at (the as-is KPI value is calculated). Next determine to what percentile you expect
the initiative will take you to. The to-be KPI value (and % improvement) are calculated.
Business Objective
KPI / Metric
Industry KPI
Values
World
Laggard Class
Organization Performance
Percentile
KPI Value
ImproveAs-Is To-Be As-Is To-Be ment %
Comments
Sales/Marketing Performance
Customer Acquisition
Customer Retention
Close rate (% of qualified sales

opportunities)
Customer annual turnover (%)
15%
12%
19%
10%
30%
30%
30%
30%
16%
11%
16%
11%
0%
0%
Customer Satisfaction
% of customers that are highly satisfied

when surveyed
30%
95%
40%
40%
56%
56%
0%
Sales-based document
collaboration Efficiency
Time to respond to RFP (days)
10.0
5.0
30%
30%
8.5
8.5
0%
Business Management Effectiveness

Decision-Making Speed /
Reaction Time to Market
Event/Opportunity
Days to accumulate information, analyze,

collaborate, decide, plan (for informationintensive decisions)
10.0
5.0
30%
30%
8.5
8.5
0%
Business Visibility
% of analytical data easily accessible to

authorized decision-makers
15%
75%
30%
30%
33%
33%
0%
Business Alignment
% of org. with auto-updated KPIs linked to

corporate objectives
15%
75%
30%
30%
33%
33%
0%
Decision-Making
Effectiveness
Decision success rate %
65%
75%
30%
30%
68%
68%
0%
Information Availability
% of desired information readily available
30%
60%
30%
30%
39%
39%
0%
30%
75%
30%
30%
44%
44%
0%
5.0
3.0
50%
50%
4.0
4.0
0%
Information Quality
Mergers & Acquisition
Analysis Speed
% of analytical data with single trusted

access point
Months to complete analysis, workflows,
due diligence, regulatory approvals, legal
docs, etc.
Supply/Operations Performance
Quality of
Products/Services
Customer preference vs. competitive

products % (e.g. blind taste test)
30%
70%
30%
30%
42%
42%
0%
Defect rate
# of process/product/service defects/errors
per 1000
45.0
2.0
50%
50%
23.5
23.5
0%
Forecast Accuracy
Supply Chain
Effectiveness
Cash Cycle Time
Avg forecast error %
25%
13%
30%
30%
21%
21%
0%
On-time delivery
Days
90%
30.0
95%
24.0
30%
30%
30%
30%
91%
28.2
91%
28.2
0%
0%
Project management
effectiveness
% of document-intensive projects that

complete on-time / on-budget
50%
70%
30%
30%
56%
56%
0%
Technology Effectiveness
Records Compliance
(centralized content
control)
% of electronic content (shared

documents, reports, web content, email)
that is controlled (retention, security,
reuse, storage) centrally
30%
99%
30%
50%
51%
65%
27%
Service Level Agreement

Performance
SLA achievement %
10%
90%
40%
70%
42%
66%
57%
Maturity Level
Best practice adoption %
10%
90%
40%
70%
42%
66%
57%
System response time
Average system (local/LAN/WAN) response

delay (Seconds)
3.0
0.2
50%
80%
1.6
0.8
53%
Application delivery agility
Time (days) to deliver applications; time to

start delivery
120.0
35.0
50%
80%
77.5
52.0
33%
User computing
experience satisfaction
% of users that are highly satisfied when

surveyed
30%
95%
40%
60%
56%
69%
23%
Security
# of vulnerabilities (reduce attack surface)
50.0
20.0
40%
70%
38.0
29.0
24%
339770502.xls
KPIs
26 of 33
Key Performance Indicator (KPI) Assessment (Optional)

Summary
P e rf o rm a n c e P e r c e n t ile
The category as-is, to-be, and improvement average percentiles are summarized below. Note: the improvement (Imp.) is not the KPI value % improvement, it shows the percentile
point improvement.
Percentile
As-Is To-Be Imp.
33%
33%
0%
33%
33%
0%
33%
33%
0%
41%
69%
27%
Average
35%
42%
7%
KPI Performance ComparisonAs-Is
World Class
100%
90%
69%
80%
70%
60%
41%
50%
33% 33%
33% 33%
33% 33%
40%
30%
20%
10%
0%
Sales/Marketing
Business
Performance
Management
Supply/Operations
Effectiveness
Performance
Laggard
339770502.xls
KPIs
27 of 33
Financial Analysis
This model simulates the costs and benefits of the initiative. The tables and charts below summarize the tool results.
C o s t s & B e n e fi t s ( $ / P C )
Summar y of Results
The tables and graphs summarize the costs and benefits and calculates ROI, NPV, IRR, and payback period. The results are shown average per PC
and the total for the organization.
Costs (3-Yr)
Benefits (3-Yr)
Net Benefits
NPV (Net Present Value)
ROI (Return on Investment) - [Total Net
Benefits / Total Costs]
IRR (Internal Rate of Return)
Payback Period
Number of PCs
$
$
$
$
Per PC
1,743
5,339
3,596
2,782
$
$
$
$
Organization Total
($000)
8,716
26,697
17,982
13,908
Total Costs Vs Benefits
$6,000
206%
$5,000
124%
9 Months
5000
$3,000
$4,000
$5,339
$2,000
$1,000
$1,743
$Costs (3-Yr)
Costs & Benefits ($ per PC)

Annual On3-Year
One-Time
Going
Total
$
1,242 $
167 $ 1,743
$
75 $
1,755 $ 5,339
Costs
Benefits
Initiative Cost Summary

(per PC)
$6,000
Costs ($ per PC)
$1,200
$1,000
$343
$268
$253
$800
$600
$400
$879
$200
End-User Labor
& Training
Revenue Growth
$5,000
Benefits ($ per PC)
$1,800
$1,400
Costs & Benefits ($000)

Annual OnOne-Time
Going
3-Year Total
$
6,210 $
835 $
8,716
$
376 $
8,774 $
26,697
Initiative Benefit Summary

(per PC)
$2,000
$1,600
Benefits (3Yr)
IT Labor,
Services, &
Training
Software
Hardware
$1,070
$4,000
$1,616
$3,000
$400
$2,000
$2,253
$1,000
$-
User Productivity
Benefits
Other Direct
Cost Savings
IT Labor/Services
TCO Savings
$3-Year Total
3-Year Total
Cost Summar y
Below are the initial design/development/deployment and added annual on-going costs required to fully deploy, adopt and support the initiative.
Additional details can be found below and on the "Cost" worksheet.
Hardware
Software
339770502.xls
Costs ($ per PC)

Annual OnOne-Time
Going
$
606 $
91
$
150 $
34
$
213 $
18
$
273 $
24
Total $
1,242 $
167
3-Year
Total
$
879
$
253
$
268
$
343
$ 1,743
ROI
One-Time
$
3,030
$
748
$
1,067
$
1,364
$
6,210
Costs ($000)
Annual OnGoing
$
455
$
172
$
91
$
118
$
835
3-Year Total
$
4,394
$
1,265
$
1,340
$
1,717
$
8,716
28 of 33
Financial Analysis
Benefits Summar y
Below are the benefits enabled by the initiative. The detailed calculations are below and on the green benefit tabs.
Benefit Summary
Revenue Growth
Benefits ($ per PC)

Annual On3-Year
One-Time
Going
Total
$
$
751 $ 2,253
$
75 $
108 $
400
$
$
539 $ 1,616
$
$
357 $ 1,070
Total $
75 $
1,755 $ 5,339
Benefits ($000)
Annual OnOne-Time
Going
3-Year Total
$
$
3,755 $
11,264
$
376 $
542 $
2,001
$
$
2,694 $
8,082
$
$
1,784 $
5,351
$
376 $
8,774 $
26,697
Benefit Sub-Categories
IT Savings
Business Savings
Total
751
2,253
3,755
11,264
$
$
$
75
75
$
$
$
94
15
108
$
$
$
356
44
400
$
$
$
376
376
$
$
$
468
73
542
$
$
$
1,781
220
2,001
$
$
$
$
$
$
75
$
$
$
$
$
$
274
265
539
357
1,755
$
$
$
$
$
$
823
794
1,616
1,070
5,339
$
$
$
$
$
$
376
$
$
$
$
$
$
1,372
1,323
2,694
1,784
8,774
$
$
$
$
$
$
4,115
3,968
8,082
5,351
26,697

Total
Revenue Growth
Total
Cash Flow
Shown below are the costs and benefits by year, the net benefits (benefits-costs), and the cumulative cash flow. This is used to calculate payback
period, IRR, and NPV.
$
$
$
$
Initial
1,242
75
(1,167)
(1,167)
9
C u m u la t iv e C a s h F lo w ( $ / P C )
Costs
Benefits
Net Benefits
Cumulative Cash Flow
Payback Period (Months)
$
$
$
$
Year 1
167
1,755
1,588
421
$
$
$
$
Year 2
167
1,755
1,588
2,009
$
$
$
$
Year 3
167
1,755
1,588
3,596
Year 4
$
$
$
$
Year 5
-
3,596
$
$
$
$
3,596
$
$
$
Total
1,743
5,339
3,596
$
$
$
NPV
1,657
4,439
2,782
Cum ulative Cash Flow

$4,000
$3,000
$2,000
$1,000
$$(1,000)
$(2,000)
0
339770502.xls
ROI
2Year3
29 of 33
Financial Analysis
Cost Details
The table/chart below provide additional cost details.
Costs ($ per PC)
Annual OnOne-Time
Going
Cost / Benefit Category
3-Year
Total
One-Time
Costs ($000)
Annual OnGoing
3-Year Total
Hardware
Client Hardware
Server Hardware
$
$
Total $
600
6
606
$
$
$
90
1
91
$
$
$
870
9
879
$
$
$
3,000
30
3,030
$
$
$
450
5
455
$
$
$
4,350
44
4,394
$
$
Total $
143
7
150
$
$
$
33
2
34
$
$
$
242
11
253
$
$
$
715
33
748
$
$
$
164
8
172
$
$
$
1,208
56
1,265
$
$
$
$
$
151
11
52
213
$
$
$
$
$
18
18
$
$
$
$
$
151
55
11
52
268
$
$
$
$
$
753
54
261
1,067
$
$
$
$
$
91
91
$
$
$
$
$
753
273
54
261
1,340
$
$
Total $
60
213
273
$
$
$
24
24
$
$
$
130
213
343
$
$
$
299
1,066
1,364
$
$
$
118
118
$
$
$
652
1,066
1,717
1,242
167
1,743
6,210
835
8,716
Software
Client Software
Server Software

One-time Implementation Labor/Services
Annual On-Going Labor/Services
IT Training
Total

End-User Labor
End-User Training
Total Costs

(Per PC)
$2,000
End-User Training
Total Costs ($ per PC)
$1,800
$1,600
$1,400
$1,200
$1,000
$800
$213
$130
$52
$11
$55
$151
$11
$242
$9
$600
$400
$870
End-User Labor
IT Training
Incremental Help Desk
Calls
Annual On-Going
Labor/Services
One-time
Implementation
Labor/Services
Server Software
Client Software
$200
Server Hardware
$-
Client Hardware
3-Year Total
339770502.xls
ROI
30 of 33
Financial Analysis
Benefit Details
The tables/charts below provide additional details regarding each of the four quantified benefit types.

One-Time
$
$
$
$
$
$
-
IT Labor Comparison
IT Labor TCO Comparison

$4,000
As-Is TCO
Administration &
Other
$3,000
As-Is FTEs
$1,144
$488
$2,000
$1,016
Application
Development
Server & Netw ork
Mgmt Services
$774
$1,000
$396
$601
$625
45.0
Help Desk (Tech

Support)
26.8
$800
40.0
42.6
33.2
$1,000
35.0
25.2
25.2
$600
22.4
19.5
$400
$392
30.0
25.0
27.1
18.5
20.0
15.0
10.0
PC Management
Services
5.0
$-
$As-Is TCO
50.0
$200
$251
$500
To-Be FTEs
47.3
$1,200
$559
$1,500
To-Be TCO
$1,400
$3,500
$2,500
Benefits ($000)
Annual OnGoing
3-Year Total
$
1,164 $
3,493
$
728 $
2,185
$
867 $
2,602
$
638 $
1,915
$
356 $
1,069
$
3,755 $
11,264
FTEs (Full Tim e Equivalents )
Benefits ($ per PC)

Annual On3-Year
One-Time
Going
Total
$
$
233 $
699
$
$
146 $
437
$
$
173 $
520
$
$
128 $
383
$
$
71 $
214
Total $
$
751 $ 2,253
To-Be TCO
$625 $392
$396 $251
$774 $601
$1,144$1,016
$559 $488
PC Management
Serv ices
Help Desk (Tech

Support)
Serv er & Network

Mgmt Serv ices
Application
Dev elopment
Administration &
Other

Benefits ($ per PC)
Annual On3-Year
One-Time
Going
Total
Benefits ($000)
Annual OnOne-Time
Going
3-Year Total
IT Savings
Software - Clients
Software - Servers
Hardware
IT Services
Power/Electricity Usage
Other IT Costs
$
$
$
$
$
$
Total $
60
8
7
75
$
$
$
$
$
$
$
41
1
1
5
45
1
94
$
$
$
$
$
$
$
183
12
10
14
134
2
356
$
$
$
$
$
$
$
300
40
36
376
$
$
$
$
$
$
$
205
6
5
24
224
4
468
$
$
$
$
$
$
$
915
58
52
72
672
12
1,781
$
$
$
Total $
$
$
$
$
15
15
$
$
$
$
44
44
$
$
$
$
$
$
$
$
73
73
$
$
$
$
220
220
75
108
400
376
542
2,001
Business Savings
Travel Expenses
Business Services
Other Business Expenses
Total Other Direct Cost Savings
339770502.xls
ROI
31 of 33
Financial Analysis
$450
Direct Cost Savings

$$44
$2
$400
Benefit ($ per PC)
$350
Other Business
Expenses
Business Services
$300
Travel Expenses
$134
Other IT Costs
$250
Power/Electricity
Usage
$14
$10
$12
$200
$150
IT Services
$100
Hardware
$183
Software - Servers
$50
Software - Clients
$3-Year Total

Benefits ($ per PC)
Annual On3-Year
One-Time
Going
Total
Benefits ($000)
Annual OnOne-Time
Going
3-Year Total
Document Creation
Other
Total $
$
$
$
$
$
$
45
60
169
274
$
$
$
$
$
$
135
181
507
823
$
$
$
$
$
$
$
$
$
$
$
$
225
302
845
1,372
$
$
$
$
$
$
674
906
2,535
4,115
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Total $
$
$
$
$
$
$
$
63
118
18
31
14
20
265
$
$
$
$
$
$
$
188
354
55
93
43
61
794
$
$
$
$
$
$
$
$
$
$
$
$
$
$
314
590
91
154
72
101
1,323
$
$
$
$
$
$
$
941
1,770
273
463
217
304
3,968
383
1,148
1,913
5,738
Workflow (routing)
Other
Total $
$
$
$
$
$
Performance
Security & Privacy
Total User Productivity Benefits
Business Value of Productivity Benefits
Time per Activity

Time (Hours / Week)
0.0 5.0 10.0 15.0 20.0 25.0
$600
10.8
10.6
As-Is
To-Be
1.0
0.8
339770502.xls
19.4
19.4
ROI
Annual ProductivityBenefits ($/PC)
$400
3.9
3.9
PC Systems
Management
$500
$300
$265
$-
Collaborative
Computing
$200
$100
$274
Individual
Computing
$-
32 of 33
Financial Analysis
Revenue Growth
Benefits ($ per PC)
Annual On3-Year
One-Time
Going
Total
$
268 $
803
$
$
$
89 $
268
$
$
$
$
-

Improved Marketing Effectiveness
New/Expanded Channels/Geographies
New/Enhanced Products/Services
Improved Product Availability (fill rate, uptime)
Other
Total $
$
$
357
$
$
1,070
One-Time
$
$
$
$
$
-
Benefits ($000)
Annual OnGoing
3-Year Total
$
1,338 $
4,013
$
$
$
446 $
1,338
$
$
$
$
-
$
$
$
$
1,784
$
$
$
5,351
Annual Revenue Growth (Margin)

$400
Annual Benefit per PC
Other
$-
$350
Improved Product Availability

(fill rate, up-time)
$89
$300
$-
$250
New/Enhanced
Products/Services
$200
$150
New/Expanded
Channels/Geographies
$268
$100
Improved Marketing
Effectiveness
$50
$Benefit
($ per PC)
Summar y of Non-Financial Key Performance Indicator Changes

The table/chart below provides a summary of the 4 categories of non-financial KPIs. There are 4 to 10 specific KPIs in each category. The percentiles
shown are how the organization compares to others in the industry. 0% represents worst performance in the industry (laggard); 50% is average
performance; 100% is best in the industry (world class performance). The "Improvement" indicates how much the organization is expected to improve
KPI performance due to the solution. Additional details can be found in the "KPIs" worksheet.
Percentile
Average
As-Is
32.5%
32.9%
33.3%
41.4%
35.0%
To-Be
32.5%
32.9%
33.3%
68.6%
41.8%
Improvement
0.0%
0.0%
0.0%
27.1%
6.8%
KPI Performance ComparisonAs-Is
P erform ance P ercentile
World Class
100%
90%
69%
80%
70%
60%
41%
50%
33% 33%
33% 33%
33% 33%
40%
30%
20%
10%
0%
Sales/Marketing
Business
Performance
Management
Supply/Operations
Effectiveness
Performance
Laggard
339770502.xls
ROI
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Business Case ROI Workbook for IT Initiatives

Workbook Table of Contents

IT Labor TCO Savings

Direct Savings Direct Cost Savings

User Productivity Benefits

Key Performance Indicator Assessment