The Business Case for HP ControlPoint

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1 The Business Case for HP ControlPoint White Paper Revision: 2 Date created: 13 November 2015 Principal author: Nigel Carruthers-Taylor icognition reference: 15/16495

2 Executive Summary Table of Contents Executive Summary... 3 Business Case for HP ControlPoint... 5 A Digital Recordkeeping Platform... 5 Digital recordkeeping is the core... 7 Products to supply the Platform... 8 HP ControlPoint Cost/Benefit Summary Details The Business Case for HP ControlPoint Page 2 of 18

3 Executive Summary Executive Summary Based on an organisation of 1500 staff and around 25Tb of information in target repositories, and using a conservative estimation, the implementation of HP ControlPoint produces a significantly positive 5 year cost-benefit of $1.7M, a Net Present Value (NPV) of $1.5M, and a benefit-cost ratio of Discount Rate 4% 8% 10% NPV $1,527,232 $1,330,071 $1,244,290 PV of Total Costs -$484,776 -$452,796 -$438,399 PV of Total Benefits $2,012,008 $1,782,867 $1,682,689 Benefit Cost Ratio Costs: Software to provide the digital recordkeeping platform Setup and maintenance of the digital recordkeeping platform Quantifiable benefits: Storage savings of $343K over 5 years Discovery/Freedom of Information (FOI) savings of $1.9M over 5 years Non-quantifiable benefits: Increased productivity for end users Risk avoidance. Digital information in most organisations is distributed across multiple repositories. Only about 30% of this has business value, but the ability to identify and harness this value is difficult. This also means 70% is redundant, trivial and obsolete information that carries a significant cost to store and manage. To manage this, a strategy to implement trusted sources of information underpinned by a digital recordkeeping platform is recommended. A digital recordkeeping platform identifies records across multiple information repositories, such as file stores, , SharePoint and , and either manages them as records within these repositories, or migrates them into a central records repository. This central records repository is a digital recordkeeping solution that assists users to save documents (including s) directly to it, and also has automated processes to manage The Business Case for HP ControlPoint Page 3 of 18

4 Executive Summary records of high business value stored in other systems. HP Records Manager (HP RM) is such a solution that links to a number of business systems or information repositories to form an overall Digital Recordkeeping Platform. HP ControlPoint links to HP Records Manager to manage and control records across multiple repositories. It analyses the information environment, assesses the value of the information, controls records through policy, and harnesses the information for reuse. While there may be a number of products that make up the Digital Recordkeeping Platform, in this analysis only the HP ControlPoint product is analysed to determine the product s individual cost-benefit. The Business Case for HP ControlPoint Page 4 of 18

5 Business Case for HP ControlPoint Business Case for HP ControlPoint A Digital Recordkeeping Platform Most organisations have an information management environment where information of all forms is managed in a variety of silos and formats: recordkeeping systems, personal and shared network drives, SharePoint, , Financial and HR systems, and line-of-business systems. Digital information in most organisations is distributed across multiple repositories. Only about 30% of this has business value, but the ability to identify and harness this value is difficult. The US Compliance, Governance and Oversight Counsel (CGOC) conducted a survey in 2012 that revealed on average 1% of organizational data is subject to legal hold, 5% is subject to governmental regulatory retention requirements, and 25% has some business value. This means that around 31% of the existing information held in file stores, systems, and other line-of-business systems could be considered records of true value. If these records are not identified, managed and accessible, then the true value of this information cannot be harnessed. Not only is this a productivity loss, but discovering and managing these true records is a difficult problem that can carry significant cost. This also means 70% is redundant, trivial and obsolete information that carries a significant cost to store and manage. The flip side to this issue is that the 2012 CGOC Study pointed out that the remaining 69% of the enterprise s information is redundant, obsolete and trivial information that carries a significant cost in storage and productivity. The Study concluded that this information could be defensibly deleted without adversely affecting the organization, thus reducing the overall digital storage footprint significantly and producing storage savings. A digital recordkeeping platform is recommended to identify, manage and migrate records across multiple information repositories, including file stores, , SharePoint and . In this dynamic environment there is often an organisational culture where staff have a freedom of choice when it comes to using systems and storing information. Therefore it is very difficult for organisations to replace all information repositories with an enterprise-wide Electronic Document and Record Management System (EDRMS). Instead, a digital recordkeeping platform can be implemented to provide EDRMS functions in targeted areas, The Business Case for HP ControlPoint Page 5 of 18

6 Business Case for HP ControlPoint and also be used to identify, link and manage records in key repositories across the environment. This fully implemented Digital Recordkeeping Platform would be a vehicle for delivering an exciting change within the information environment and transition the organisation to digital recordkeeping. It can deliver trusted sources of information within the organisation, which is where Business Information Systems are identified as trusted sources for managing particular information types underpinned by the Digital Recordkeeping Platform. Each trusted source would manage the identified key information stored within it using records compliance lifecycles. This will allow the creation of trusted sources of information, underpinned by the digital recordkeeping platform. All trusted sources can then be governed by this platform, bringing the trusted sources together into an information management and governance framework. The platform would enable the migration and/or capture of digital records from these sources into the recordkeeping system, or the application of in-place recordkeeping policies to the information in its existing repository. These elements would be brought together as a platform where digital recordkeeping services are accessed across an integration layer within the IT environment. This Digital Recordkeeping Platform, as shown in Figure 1, can be expanded to include the capture of records from business processes or from various presentation interfaces, whether that be desktop, web, collaborative workspace, or mobile device. Therefore it is a multilayered platform that includes the services layer, an integration layer, a business process layer, and the presentation layer. At each layer several products or components may exist. The Business Case for HP ControlPoint Page 6 of 18

7 Business Case for HP ControlPoint Figure 1: Digital Recordkeeping Platform Digital recordkeeping is the core The core solution would assist users to save documents (including s) directly to it and become a central repository of high value business information that meets recordkeeping requirements. The core solution would be a digital recordkeeping solution that, out-of-the-box, provides users with the ability to share and access information securely. The digital recordkeeping solution could provide an enterprise system that underpins the day-to-day applications used by staff, transparently capturing and managing digital objects. The digital recordkeeping solution would then assist users to save information directly to it and become a central repository of controlled and managed documents (including s) that meets recordkeeping requirements. The digital recordkeeping solution would enable the management of documents and files regardless of their format or storage location. This would include all forms of electronic documents created via , word processing applications, scanned documents and paper files. The Business Case for HP ControlPoint Page 7 of 18

8 Business Case for HP ControlPoint Additionally, hardcopy records can be managed through a combination of file requests and using scanning technologies to convert paper-based information into digital forms. Once converted into digital form the paper based copy can be legally disposed. The end goal would be to remove the use of all hardcopy files. Integrating or underpinning corporate applications with the digital recordkeeping platform would provide a means for transparently classifying and sentencing data in those applications. The solution is then expanded to form the Digital Recordkeeping Platform that provides a means for transparently classifying and sentencing data from both existing and future corporate systems at the time of creation, and subsequently managing its timely destruction. This allows vital systems such as HR, Finance and systems, which do not have a native records management capability, to capture, manage and control records within it. Products to supply the Platform HP Records Manager is a strong product that can provide the required core digital recordkeeping solution. It is well supported in the Australian and New Zealand markets, and links to a range of information governance products to provide the Digital Recordkeeping Platform described above. Industry analysts Gartner and Forrester conclude that HP Records Manager is a leader in the Enterprise Content Management (ECM) market 1. ECM is a superset of EDRMS, and includes technologies such as web publishing and scanning. In Australia HP RM is the most prevalent ECM solution, occupying 75% of the Federal Government market, around 40-50% of the State Government market, and similar for local governments 2. The product also has good private organisation coverage, and is prevalent in the superannuation, education, and not-for-profit sectors. HP Records Manager links a number of modules or products that can help form the overall Digital Recordkeeping Platform. 1 Gartner Magic Quadrant for Enterprise Content Management, September 2015 and The Forrester Wave: Enterprise Content Management, Q icognition survey for Department of Communications, 2015 The Business Case for HP ControlPoint Page 8 of 18

9 Business Case for HP ControlPoint To complete the Digital Recordkeeping Platform, the following additional products could added to the Integration Layer: HP ControlPoint links to HP Records Manager to manage and control records across multiple repositories. It can analyse the information environment, assess the value of the information, control it as records, and harness it for reuse. HP ControlPoint: can be used to analyse an information environment, assess the value of information through identification and classification, and then improve the information environment by removing redundant, obsolete and trivial information, migrating vital information to HP Records Manager, and/or linking information in-place to HP Records Manager to apply records management compliance. The product comes with out-of-the-box integrations to SharePoint, Exchange, File Stores, imanage and HP Records Manager, and a beta version of a Documentum integration exists. HP Structured Data Manager: can automate information lifecycle management and structured data optimization by relocating inactive data from expensive tier 1 production systems and legacy databases to HP Records Manager. This enables organisations to retire outdated applications through an automated process of extracting, validating, and deleting data. RM Connector: allows multiple line-of-business systems to be linked to HP Records Manager to facilitate automated capture, and then exposing of those records back into the line-of-business systems to allow easy and direct access to records. In this analysis only the HP ControlPoint product is analysed to determine the product s individual cost-benefit. Figure 2 shows how these products form the Digital Recordkeeping Platform. The Business Case for HP ControlPoint Page 9 of 18

10 Business Case for HP ControlPoint Figure 2: Products to form the Digital Recordkeeping Platform The Business Case for HP ControlPoint Page 10 of 18

11 HP ControlPoint Cost/Benefit HP ControlPoint Cost/Benefit Summary Based on an organisation of 1500 staff and around 25Tb of information in target repositories, and using a conservative estimation, the implementation of HP ControlPoint produces a significantly positive 5 year cost-benefit of $1.7M, a Net Present Value (NPV) of $1.5M, and a benefit-cost ratio of Discount Rate 3 4% 8% 10% NPV 4 $1,527,232 $1,330,071 $1,244,290 PV of Total Costs -$484,776 -$452,796 -$438,399 PV of Total Benefits $2,012,008 $1,782,867 $1,682,689 Benefit Cost Ratio Costs: Software to provide the digital recordkeeping platform Setup and maintenance of the digital recordkeeping platform Quantifiable benefits: Storage savings of $343K over 5 years 5 Discovery/FOI savings of $1.9M over 5 years 5 Non-quantifiable benefits: Increased productivity for end users Risk avoidance. 3 The discount rate reflects the opportunity cost of capital, i.e. the return on capital foregone in alternative use of the resources. 4 The benefits and costs are analysed to a Present Value (PV), i.e. the value on a given date of a series of future payments, discounted to reflect the time value of money and other factors such as investment risk. Net Present Value (NPV) is the sum of the values of the discounted cash flows. 5 Based on industry wide standard estimates, conservatively reduced and skewed over five years. The Business Case for HP ControlPoint Page 11 of 18

12 HP ControlPoint Cost/Benefit Details Solution HP ControlPoint expands a digital recordkeeping strategy enterprise wide to provide a substantial part of the digital recordkeeping platform discussed in the first section of this White Paper. This product is assumed to be an addition to the core digital recordkeeping solution, HP Records Manager, to provide a wider platform to: identify records in other information systems or repositories; place and enact recordkeeping policies on records held in other repositories; migrate identified records into a shared recordkeeping platform where suitable. HP ControlPoint links to HP Records Manager out of the box to manage and control records across multiple repositories, including SharePoint, Exchange, File Stores, imanage and HP Records Manager, and a beta version of a Documentum integration exists. ControlPoint can be used to analyse the information environment, assess the value of the information, and improve the information environment by migrating vital information to HP Records Manager, and/or linking information in-place to HP Records Manager to better meet records management compliance and manage information in-place as a vital corporate asset. Key Assumptions The following assumptions are made in this analysis: The organisation is assumed to have 1500 staff and have 25Tb of information in target repositories. Only three major discovery exercises are required per year, consisting of an initial collection of 3.5Gb of data per custodian, 23 custodians assumed, totalling 80.5 GB total. The discovery savings are assumed to be conservatively achieved over a period of five years, starting at 40% in Year 1, and climbing to 80% in Year 5. Storage saving are estimated on a conservative defensible disposal reduction factor of 40% and a deduplication factor of 15% meaning 15% of the stored content will be duplicate files and easily disposed of. Between these two reduction factors, a conservative estimate of 55% reduction in stored files is assumed to occur over a five year period. Quantifiable Benefits Defensibly disposing the Redundant, Obsolete and Trivial (ROT) information from enterprise repositories conservatively removes 55% of the stored information over a five year period. At $25/Gb, this can be a significant saving. The Business Case for HP ControlPoint Page 12 of 18

13 HP ControlPoint Cost/Benefit 1. Storage Savings The solution can be implemented to discover and manage records of value in existing files stores, , and systems such as SharePoint and . These records can be either migrated into HP RM, or managed in place by applying policies to the records. The remainder of the information can be defensibly deleted, giving rise to significant storage savings. To calculate the estimated storage saving, a conservative defensible disposal reduction factor of 40% and a deduplication factor of 15% meaning 15% of the stored content will be duplicate files and easily disposed of. Between these two reduction factors, a conservative estimate of 55% reduction in stored files is assumed to occur over a five year period. According to an Osterman Research White Paper, The True ROI of Information Governance, published February 2015, the true cost of managing tier 1 storage at $25/Gb per year. This includes the cost of raw storage; as well as the additional costs of performance tiers, floor space, power/cooling, and the cost of backup and disaster recovery, etc. 2. Discovery/FOI Savings Agreed trusted sources of digital records can be established, minimising ephemeral information and making the task of locating the correct, trusted record much easier and faster. The identification of records across these information repositories will facilitate faster and more targeted responses to discovery requests. This cost can be quantified, calculated on less information to search and review, faster and better search mechanisms, faster retrieval and access to information, as well as speeding up review processes through automatic categorisation and reduced time to assemble a responsive collection. Discovery, including FOI searches, is dependent on the collection of all potentially responsive content, no matter where it is stored, so that it can be reviewed for privilege and relevancy before being turned over to the opposing counsel. For most organizations, the document review process is the costliest and most timeconsuming part of discovery, which makes it extremely important to avoid over-collecting data. Over collection is usually a result of ineffective or non-existent information management processes. Because data can be scattered across the enterprise with little or no indexing or management, discovery collection teams will grab everything they can find with the expectation that they will filter it later for relevance. Universally, the data grab technique forces more content to be manually reviewed, dramatically driving up the overall cost of discovery. The Business Case for HP ControlPoint Page 13 of 18

14 HP ControlPoint Cost/Benefit Using figures identified and referenced to industry sources in the Osterman Research white paper 6, it is assumed that: an initial collection of 3.5Gb of data per custodian, 23 custodians assumed, totalling 80.5 GB total this is later culled down to 46.7 GB using additional search and filtering techniques 46.7 GB totals 560,280 documents (assuming 12k documents per GB), and is assumed to be reviewed manually by legal professionals for privilege and confidentiality utilizing legal industry standard of a manual review rate of 50 pages per hour at $60 per hour, it is estimated that the total number of manual review hours is 11,205 multiply total review hours by the hourly review rate, and a total discovery review cost of $0.672 million for a single discovery event is calculated multiply by the average number of discoveries per year (conservatively assumed to be three) conclude with a total annual estimated discovery cost of $2.04 million. The above figures are considered to be aggressive, so for this analysis it is assumed that these figures will be slowly achieved over a period of five years, starting at 40% in Year 1, and climbing to 80% in Year 5. Non-quantifiable Benefits Non-quantifiable benefits are of equal importance in cost-benefit analysis, as they often include significant efficiencies and productivity enhancements, as well as ensuring compliance and a platform for further innovation. 1. End user productivity gains Increases in productivity through faster search, retrieval and access to information. Employees spend a measurable amount of time searching for old content for reuse and reference. When they can t find the data they need, they end up spending more time recreating the data they couldn t find. Using HP ControlPoint will remove the ROT and ensure that data can be found quickly, eliminating the need to recreate lost information. 6 Figures from the 2012 CGOC Study, Osterman Research White Paper, The True ROI of Information Governance, published February 2015 The Business Case for HP ControlPoint Page 14 of 18

15 HP ControlPoint Cost/Benefit 2. Risk avoidance Risk avoidance through stronger records management across the enterprise. Risk avoidance is a technique of risk management that involves taking steps to remove exposure of negative events, such as the cost of not being able to respond quickly to key stakeholders, or the cost of losing a legal case due to insufficient or incomplete collection processes. The risk could include significant embarrassment or lost revenue due to negative publicity and reduced business. It could even include fines imposed by a court, payment of the opposing counsel s costs. Cost Savings from risk avoidance is a difficult variable to quantify. For those organizations that have not directly experienced these kinds of issues, risk avoidance calculations are somewhat meaningless, and therefore it is shown as a non-quantifiable benefit. The key cost for HP ControlPoint is the licence and associated annual maintenance, which is sold on the volume of information required to be indexed. In this case, the organisation is assumed to have 1500 staff and have 25Tb of information in target repositories. The licence price is not displayed in this document due to the commercial-in-confidence nature of this information. However the price is rolled up into the implementation cost which also includes the implementation services. The latter includes installation, configuration and deployment of the HP ControlPoint product. The Business Case for HP ControlPoint Page 15 of 18

16 HP ControlPoint Cost/Benefit Cost/Benefit Analysis Based on an organisation of 1500 staff and around 25Tb of information in target repositories, and using a conservative estimation, the implementation of HP ControlPoint produces a significantly positive 5 year cost-benefit of $1.7M, a Net Present Value (NPV) of $1.5M, and a benefit-cost ratio of Costs Year 1 Year 2 Year 3 Year 4 Year 5 Total Software Licence, Installation and Support $331,146 $47,666 $47,666 $47,666 $47,666 $521,808 Total $331,146 $47,666 $47,666 $47,666 $47,666 $521,808 Savings Assumptions Storage saving as % of total storage 5% 10% 20% 10% 10% Discovery savings as a % of total achievable 40% 50% 60% 70% 80% Savings Year 1 Year 2 Year 3 Year 4 Year 5 Total Storage Savings (based on % identified above) $31,250 $62,500 $125,000 $62,500 $62,500 $343,750 Discovery Savings $259,200 $324,000 $388,800 $453,600 $518,400 $1,944,000 Total $290,450 $386,500 $513,800 $516,100 $580,900 $2,287,750 Cost less benefit $40,696 -$338,834 -$466,134 -$468,434 -$533,234 -$1,765,942 Key savings storage cost management reduction, and discovery/findability effort savings: The solution will be implemented to discover and manage records of value in existing files stores, , and systems such as SharePoint and . These records can be either migrated into HP RM, or managed in place by applying policies to the records. The remainder of the information can be defensibly deleted, giving rise to significant storage savings. Additionally, the identification of true records across these information repositories will facilitate faster and more targeted responses to legal discovery requests. This cost can be quantified, calculated on less information to search and review, faster and better search mechanisms, faster retrieval and access to information, as well as speeding up review processes through automatic categorisation and reduced time to assemble a responsive collection. The Business Case for HP ControlPoint Page 16 of 18

17 HP ControlPoint Cost/Benefit These savings, combined with the significant non-quantifiable benefits of efficiencies and productivity enhancements, as well as ensuring compliance and a platform for further innovation, provides the HP ControlPoint solution with a very good cost/benefit assessment. The Business Case for HP ControlPoint Page 17 of 18

18 About icognition icognition provides practical leadership, solutions and services for the management and governance of enterprise information. Our vision is to be the trusted advisor of choice to our clients for enterprise-wide information management and governance consultancy and solutions implementation. icognition s goal is to ensure enterprises maximise the value of their information, while minimising cost and risk. We use an integrated Information Governance model that combines the disciplines of data, records, and information management to value, manage, control and harness information across the enterprise. This model applies a strategic design approach at the policy, governance, systems and change management levels. At the systems level we provide useful, usability, effective and satisfying information management systems. We combine business and technical skills to deliver well designed and considered solutions and cloud services using a combination of third-party products, integrated systems, and value-added Commercial-Off-The-Shelf interfaces and solutions developed by icognition, called our Diem Solutions. 18

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