Business Value with Oracle

Part Two: Definition and Measurement

Will our savings and increased revenues surpass the investment?
This is the most basic form of examination.  You will be laying money on the table for software licenses, yearly manufacturer and/or implementation partner support and maintenance, consulting services and training (system administrator and end user), content conversion and loading from your existing system(s) to the new system (if needed) and integration with other systems (if needed). So, will the savings and increased revenues to be realized, be greater than those invested? Depending on the cost of your overall investment, the span of time required for payback is generally a multi-year proposition.  Three to five year payback period calculations are common and estimates for today’s value of future returns are generally predictive.

Will this initiative “pack a mean punch?”
I advise selecting a project or initiative that is of importance to a high profile person within the organization. An inaugural project, for example, should be visible but not overwrought with risk.  If successful, can a positive project experience lead to a “spring boarding” effect? In a word, yes. When project goals are clearly defined, met, and even exceeded, momentum can be established.

What else can be achieved and what else can I get?
There is an upside and downside here.  For example, with some in depth research and/or experience, you may be able to negotiate a better deal for your organization.  However, you don’t want to “beat down” your chosen supplier to the point that they cannot afford to support you in the manner that will produce the greatest results. Additionally, a ‘bargain shopping’ philosophy requires time and effort as other vendor offerings are examined. The right balance must exist between that which can be realistically achieved versus the time, cost and complexity of analyzing competing offerings.

Are “soft” costs a component of your equation?
Many times the answer to this question depends on your company.  Examples include intangibles like improved morale or happier employees. Financial systems don’t generally take into account these costs.

See Part One here

Part One: Strategic Objectives and Planning

Ask yourself, what are you trying to accomplish based upon this investment?
Sounds simple, doesn’t it? Think about what you are trying to achieve in terms of the benefits realized. For example, your two main goals for investing in enterprise content management might be to eliminate six disparate repositories and thus improve the quality of your corporate content.  What are the benefits of this transition, realizing the more benefits the better!  Just as important, how will these benefits be measured in real terms?  In our example above, by successfully eliminating six repositories, you will likely end annual maintenance payments on those repositories.  Add up the figures.  This concrete dollar savings could be significant!

How specifically will the business benefit?
Speak with the employees that will be most impacted by the proposed changes.  Solicit their feedback and involvement PRIOR to the decision being made. Ask questions like “Do you ever re-create a piece of information that you know exists but that you cannot find?”  Have a business user illustrate a problem or two they face on a daily basis in the context of doing their job. Describe in detail a post-implementation world and the benefits that result.  In the above example, first demonstrate how to tag and check in a piece of content.  Second, explain how to search for and retrieve that same piece of content. Finally, the end user will conduct the exercise themselves.  Encourage them to practice, which will breed confidence and acceptance.

How extensive of an analysis do you need?
In my experience, this question is not asked often enough.  Please understand that a detailed ROI analysis can be a major undertaking.  Each company operates differently in this regard.  How are investment decisions made at your company? Balance current company resource commitments with the appropriate amount of needed information for effective decision making.

What happens if we do nothing?
Don’t forget risk evaluation.  There are two main areas of evaluation, the project: examples include newness of technology/solution or size, and context: examples include availability of personnel based upon current workload or even a broader element to consider such as a pending merger or acquisition.

Read Parts Three, Four  and Five

Read Parts One and Two

6.       Reputation and Relationship with Software Manufacturer

Assuming that your chosen provider is not the software manufacturer, are they “in the trenches” with the manufacturer?  Do they participate in alpha or beta testing of new product releases?  Do they know the short and long term product roadmap?  Find out the following:

1. Is the staff certified?
2. Are the certifications current?
3. Do they have Executive, Product Mgmt & Product Development relationships with the manufacturer?
4. Are they a member of a Partner Advisory Council?

 7.       Comprehensive Documentation?

Ask for representative examples to make sure the documentation will suffice and truly be a valuable resource when issues arise.  Will the documentation that is provided at the end of the project detail your specific solution?  When shown previous examples ask to be pointed to solution specific portions of the documentation.  Watch out for “boiler-plate” style examples.

8.       Good “fit” for your organization?

This is often unnecessarily overlooked.  Are the people that you are talking to in a “pre-sales” capacity the same staff that will be assigned to your project?  If not, ask to meet the project team.  An area that is often overlooked is the culture compatibility with your own organization.  This is very important if you desire to develop a long term, lasting partnership.

Outsourcing can be a wonderful alternative during times when maintaining budgets are more important than ever.  If you select a competent partner, you will gain invaluable access to a wealth of skills, knowledge and experience on demand at a lower cost than it would typically cost for you to recruit, hire and train your own staff.  Remember to seek a partner for the long term and good luck!

Read Parts One & Two.

3. Ability to deliver the proposed scope on time/on budget?
Unfortunately too many consultants come in and identify the problem, present a solution, but don’t stay until completion or finish the job.  As best as possible, clearly identify costs up front – both initial and on-going.

 4. Stability and Financial Strength?
Stability and financial strength are even more crucial with a specialized solution.  Also consider whether your chosen provider would be willing and able to help you become self sufficient once the project has been completed?  Please explore the following:

1. Will the chosen provider be around to support your solution?
2. Would a Service Level Agreement be offered?
3. Are multiple options like standard and after hours support offered?
4. Is end user and administrator training provided?
5. Can they extend the functionality of the current application?
6. Can they create an entirely new app if/when requirements change?
7. Has their staff been employed by the company for some time?
8. Do they cross train so that more than one employee is familiar with your solution?

5. Industry Reputation
A good reputation within your industry or vertical market gives you confidence that your chosen provider better understands the issues you are facing.

1. Have they won industry awards?
2. Do they participate at industry conferences?
3. Are they active in the online community?

Other posts in this series:

Parts Three, Four & Five

Content Management outsourcing is gaining popularity, particularly due to the various options that are available to those who are seeking assistance – such as project-based consulting or staff augmentation.  The outsourcing model offers access to skills, experience and resources that many organizations would not otherwise be able to obtain due to the financial commitment required to recruit, hire and train these specific proficiencies in-house.  However, selecting the partner who can best meet your needs is not always as easy as you might think.  The following considerations should be taken into account when assessing the outsourcing talent pool:

1.       Experience

You certainly don’t want your chosen provider to “cut their teeth” on your application.  Thoroughly researching the four points below will provide you “peace of mind” as you embark on your project.

A.  In your industry or vertical market?
B.  With your specific issue(s) or pain point(s)?
C.  With your specific IT technology/product set(s) such as database and operating system
D.  Multiple references – successful with implementations of similar size and scope?

 2.       Proven Methodologies

It is not uncommon to ask to see representative examples of previous project or communication plans.  Additionally, your company has proven standards and methodologies that have been critical to your past success.  Will your outsource partner incorporate the good things that you typically like to include that have made previous endeavors successful?  Be sure to ask about:

A.  Project charter – initiation and/or creation of project
B.  Project plan – Scheduling, resources and commitments
C.  Project status update – recurring, dependable communication plan
D.  Change order – predefined process to manage scope creep
E.  Mutual Sign-off upon successful project completion