ROI with CA Clarity PPM

Transcription

1 ROI with larity PPM ssessing the value and impact of Technologies solutions Technologies ROI analysis approach onsultation redibility uy-in The ROI approach is facilitative and developed with input from our customers Technologies business value consultants review the customer scenario, available data, and benchmarks, and focus on hard savings potential while also qualifying intangible savings Thorough discovery and conservative value calculations build credibility successful ROI usiness ase earns complete buy-in Iterative ROI review process The iterative ROI review process guarantees that our customers have full opportunity to shape the benefits analysis and impact projection to their environment and upon turn-over of the business case achieve maximum credibility within their organizations. iscovery Iterative Review Process nalysis Presentation usiness drivers The larity PPM solution can help organizations realize the following business objectives: Make fact-based decisions about initiatives and investments through comprehensive portfolio planning and analysis Maximize utilization of most valuable asset people xecute programs flawlessly utilizing best-practice methodologies ain financial transparency on programs, projects, and service costs utomate manual processes to speed decision making, improve consistency and reduce cycle time Solution overview In addition to project, resource, and financial management used to ensure the successful delivery of projects, larity PPM provides comprehensive portfolio analysis and assessment to improve decision-making. You can: Improve alignment between business and IT Reduce cycle time for new projects id the selection of top features or requirements Increase sales and profits from new products Reduce new product or IT development costs larity PPM for IT overnance usiness Relationship IT Porfolio emand Project Program Requirements Planning ost and Time Project Portfolio IT inancial ashboards and Reporting Resource

2 xample ROI business case xample financial metrics for larity PPM inancial Metrics 1 est ase Most Likely Worst ase Simple ROI 264% 221% 177% Payback (Months) 7 Months 7 Months 7 Months Ramp Up Time (Months) 4-6 Months 4-6 Months 4-6 Months NPV (Net Present Value) $1,837,845 $1,529,478 $1,221,112 IRR (Internal Rate of Return) 318% 273% 228% Risk of Not Making Investment $3,668,531 $3,187,913 $2,707,294 TO (Total enefit of Ownership) $4,779,384 $4,140,825 $3,502,266 TO (Total ost of Ownership) $885,000 $885,000 $885,000 umulative ash low $2,336,631 $1,953,495 $1,570,359 1 The above example larity On-emand ROI usiness ase provides projective (forecasted) values derived from an analysis of benchmark data. The benchmark data is a composite of data derived from industry research, interviews with SM s, and experiential data from prior projective analyses with Technologies customers. ost vs. benefit projection This chart reflects the timeframe in which a project reaches positive cash flow. It is a graphical representation of the financial metrics from the table above. The lines in the chart compare the cumulative benefits (TO) for each of the best, most likely, and worst case scenarios with the cost components (TO) of the solution. 2

3 enefit impact projection Quantifiable enefits 2 Impact Ranges Reduction in portfolio management administrative time through automated reporting % Improved portfolio management due to reduced low-value projects % Reduced number of planning meetings for status and coordination % Reduced project failures per improved project management and tracking % Reduced project cost overruns through improved project manager insight % Reduction in project portfolio cycle times through improved decision support % 2 The Impact Ranges shown above have been used in this example analysis and are provided to show a range of process improvements and ROI metrics that can be achieved through the appropriate, effective implementation and use of the named solution. omparative ROI data study ROI business case comparative results for larity PPM ROI usiness ase verage Simple ROI (Return On Investment) TO (Total enefit of Ownership) NPV (Net Present Value) IRR (Internal Rate Return) Payback (in months) 294% 188% 252% 501% 294% 350% 413% 327% $3,149,575 $2,510,136 $4,804,375 $12,673,833 $2,830,979 $22,826,000 $5,053,595 $7,692,642 $1,802,598 $897,525 $1,634,954 $5,601,895 $1,111,191 $11,465,051 $2,222,410 $3,533, % 256% 134% 474% 305% 344% 327% 284% ll Projected are Three Year umulative Values The usiness nalysis Team works with Technologies customers to develop and analyze appropriate assumptions and metrics, specific to their environment, in order to build a customized projective business case. The ROI usiness ase financial metrics are derived from applying the Technologies methodology for each of the above customers. The values expressed are not a guarantee of achievable results and will vary depending upon your current infrastructure, people, and processes as well as the appropriate, effective implementation, adoption, and use of the Technologies solution. 3

4 ROI Quantifiable enefits verage Reduction in administrative time Reduced number of project meetings for status and coordination Reduction in project failures Reduced project cost overruns Reduction in project cycle times Improved portfolio management Improved revenue per improved project return rates Improved resource utilization $14,976 $391,875 $43,875 $1,085,000 $257,813 $1,031,250 $78,375 $414,738 $16,632 $146,180 $487,500 N/ $770,000 $1,031,250 $25,080 $412,774 $800,000 $182,531 N/ $6,293,000 $121,688 $2,206,875 $221,760 $1,637,642 $1,000,000 N/ N/ $452,083 $242,188 $2,906,250 $116,250 $943,354 $207,360 $464,063 N/ $4,843,750 $515,625 $6,187,500 $2,475,000 $2,448,883 $1,111,111 $139,219 N/ N/ $257,813 $1,856,250 $495,000 $771,879 N/ $308,644 N/ N/ $342,938 $3,731,625 N/ $1,461,069 N/ $313,875 $4,000,000 N/ $322,917 $3,875,000 $1,627,500 $2,027,858 ll Projected are Three Year umulative Values The table above shows the breakdown of the cumulative value (TO) of individual process improvements by applying the forecast improvements to each customer s applicable metrics shown on the next page. When a process improvement was found to be not applicable to a specific customer s environment, the value has been noted as N/. 4

5 orcast Improvements (Value rivers) verage administrative time project meetings project failures project overrun project cycle times for reducing count of low-value projects in incremental revenue returns per project in productivity and utilization per project 7.50% 7.50% 60.00% 10.00% 7.50% 3.75% 2.00% 14.04% 30.00% 17.50% 30.00% N/ 25.00% 12.50% 3.00% 19.67% 10.00% 10.00% N/ 6.00% 10.00% 5.00% 2.00% 7.17% 5.00% N/ N/ 7.00% 15.00% 7.50% 3.00% 7.50% 7.50% 7.50% N/ 1.50% 7.50% 3.75% 4.00% 5.29% N/ 15.00% N/ N/ N/ 7.50% 4.00% 8.83% N/ 4.50% N/ N/ 4.50% 2.25% 1.00% 3.06% N/ 4.00% 4.00% N/ 4.00% 2.00% 2.00% 3.20% 5

6 Sample Size verage ompany size (number of employees) 11,600 1, ,500 2,800 5,700 83,000 20,600 Number of projects per year Number of meetings required per project N/ Number of people attending each project meeting N/ Project or portfolio budget 25,000,000 2,250,000 40,000, ,000,000 2,500,000 60,000,000 30,000,000 40,678,571 verage % return per project 12% 18% N/ 12% 18% 7% 12% 13% % of projects that fail per year 25% 25% N/ 29% 15% 25% 6% 21% Organizational size and key operational data points are unique for each customer and their specific environment. The metrics above are included to provide a relative size comparison with your own environment. These included customers are non-specific to any single or vertical industry. Technologies can create custom ROI usiness ases upon request to assist our customers in identifying the potential quantifiable value Technologies solutions can bring to their businesses. opyright ll rights reserved. ll trademarks, trade names, service marks and logos referenced herein belong to their respective companies. 2, IMS, IS, OOL, PL/I and z/os are trademarks of International usiness Machines orporation in the United States, other countries, or both. This document is for your informational purposes only. assumes no responsibility for the accuracy or completeness of the information. To the extent permitted by applicable law, provides this document as is without warranty of any kind, including, without limitation, any implied warranties of merchantability, fitness for a particular purpose, or non-infringement. In no event will be liable for any loss or damage, direct or indirect, from the use of this document, including, without limitation, lost profits, business interruption, goodwill or lost data, even if is expressly advised in advance of the possibility of such damages. does not provide legal advice. Neither this document nor any software product referenced herein shall serve as a substitute for your compliance with any laws (including but not limited to any act, statute, regulation, rule, directive, policy, standard, guideline, measure, requirement, administrative order, executive order, etc. (collectively, Laws )) referenced in this document. You should consult with competent legal counsel regarding any Laws referenced herein. S2761_0812