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FAVORABLE ROI PROJECT:
One of the company’s major business units is implementing a state-of-the art integrated manufacturing system to help facilitate a key company goal of “design anywhere/build anywhere” to maximize operational efficiency. Project was approved to implement with a 24.5% ROI
Key success factors on the project:
• Execute project with all typical company program management disciplines including Integrated Master Scheduling (IMS), Earned Value Management (EVM) and Risk and Opportunity Management (R&O)
• Utilize common enterprise solutions and lessons learned from similar implementations in other areas of the company
o Project lead by an experienced program management team
• Perform rigorous testing (e.g., dry-runs) and data readiness (e.g., cleaning data from old systems being replaced)
• Active and early stakeholder engagement (e.g., business leadership, functional organization, users, etc.)
o Continuous communication
o Training (timing is key – don’t train too early)
• Post implementation tracking
o Make sure old systems have been retired and retired on time
o Revisit ROI to validate original 24%
 Verify actual expenditures to implement
 Validate projected savings in headcount, operational productivity improvements & reduced inventory
The expected annual savings is $23M/year over the initial 10 year operating period – expect to exceed original project ROI.

UNFAVORABLE ROI PROJECT:
The company outsourced certain IT services (e.g., help desk, data centers) to an outside vendor in a competitive bidding process. ROI may not meet traditional company ROI threshold after fully implemented.

Weaknesses on the project:
• Built on a business case that didn't have sufficient detail to make a compelling case for change
• Needed to more clearly define company objectives for service levels and capacity
• Required more comprehensive understanding of current expenditure levels for areas to be outsourced
• True buy-in by company senior leadership was missing - afraid of loss of control, not convinced of the financial benefits
• Did not fully and definitively set program scope to include: IMS, transition plan, technology road-map (e.g., new investments and equipment obsolescence by outside vendor)
• Defining operation of governance council (company & vendor representatives) must be strengthened – guidance to organization is not clear enough
The expected ROI from the project when reanalyzed after year 1 of implementation (currently 6 months into operation) will likely be less than the company’s typical 20% threshold.

Direct info from my IT guy

THE GOOD

*The purchase of McAfee GroupShield with the AntiSpam add-on had been a very good investment. This software has saved our email server from being infected with viruses during several outbreaks and has reduced the number of spam emails considerably; the result of this is less downtime and better productivity.

THE BAD

*The purchase of iPads for many departmental users, although a good investment, has not provided us with a very good return thus far. Lack of structure in the original deployment has left us with costly monthly charges that were not originally budgeted for and other unforeseen administrative issues that are a direct result of “personal” devices being purchased for “business” purposes.

The Good and the Bad at MIT by EvJamesEvJames, 04 Jan 2011 16:52

The goal of this project was to replace an antiquated home grown Quality Data Management System module, which was integrated with Glovia (Enterprise Resource Planning software) and Clarify (product support system) product support system

The Quality Data Management System (QDMS) system is an XYZ Company developed system that is utilized globally to track quality issues identified on the factory floor and in the field and follow the issue through to closure with emphasis on corrective action. The goal was to have a Quality Information Systems (QIS) that will not only fulfill the main objective but also be integrated into our Enterprise Resource Planning (ERP) and Field Sales Order (FSO) systems and provide better tracking of quality issues with the focus on the financial measures utilized. The QIS tool will incorporate the Product Support Module that is replacing Clarify (product support system). The QIS tool will be web based, provide real time issue tracking, allow for integration with Glovia (ERP software) and FSO, and provide multi-level reports that are both predetermined and user creatable. Additionally, the QDMS archive will be maintained for a minimum of one year after the XYZ Company QIS system is online.

The main benefits of the QIS tool will be to provide fully integrated and streamlined query and/or search capabilities without the need to utilize an additional user interface or query system. It will allow for easier tracking and disposition of quality issues, as well as robust reports. An automatic email, notification, and reminder system feature is required. The QIS will be expanded to include more detail, such as providing selectable fields for where the defect occurred, cost, serial numbers, purchase order number, and allow for time tracking of the issue.

Other benefits of this project are:

Customer Service Knowledge Base – provides rapid access to detailed issues and solutions providing faster response time to customers (replaces word docs stored on a server).

Reporting – provides real time reporting of response time to customer issues, automatic escalation notification when problems are not addressed within specified time, automated vendor scorecards (replaced a labor intensive excel report), and executive dashboards for one stop view of vendor and customer status.

Improved Cost of Ownership – home grown QMS module was requiring major man hours for maintenance and was experiencing increased downtime due to outages; new Insight system is covered by maintenance contract with the vendor; previous customer support system required desktop installation and licenses which are now replaced with web-based Insight system.

This project is up and running and has been proclaimed a success but no monetary ROI information is available.

The BAD! Outsourcing IT…this is only my opinion!

[[rr4 / Dice2009-10TechSalarySurvey.pdf]]
[[rr4 / VoIPNews__Hacking_your_PBX.pdf]]

third try by ed dahlmered dahlmer, 14 Jul 2010 14:45

[[Dice2009-10TechSalarySurvey.pdf | Tech Salary Survey]]
[[VoIPNews__Hacking_your_PBX.pdf | Hacking Your PBX]]

by ed dahlmered dahlmer, 14 Jul 2010 13:45

[[Dice2009-10TechSalarySurvey.pdf|Tech Salary Survey]]
[[VoIPNews__Hacking_your_PBX.pdf|Hacking your pbx]]

A few interesting articles by ed dahlmered dahlmer, 14 Jul 2010 13:42

Good ROI: During the 2000s, a small property management company was rapidly expanding, and they needed to upgrade their computer systems to better link the sites with the corporate office as many of their properties were spread out between from Massachusetts to Florida. Many of their computers were still running on the MS-DOS, and it was becoming more and more apparent that the system was outdated. Senior level management decided to upgrade all computers to windows and install a state of the art property management software that would allow property managers to update information regarding occupancy, rent collection, payables, and receivables on site. Most importantly, senior level managers charged with making decisions for the company's assets would be able to view all this information by logging into the software and generate reports that compared a property's performance against other properties in the portfolio. When thinking about ROI, time is often ignored. By switching to this property management system, the performance of a property was much more quickly and easily tracked. Doing so helped property managers and senior level people respond to problems more quickly because more information was more available to more people.

Bad ROI: About a year and a half ago, a small engineering firm of about 250 employees chose to lay-off its small IT support department in favor of outsourcing their IT management. Because IT was an overhead expense and did not generate direct income for this particular firm, senior level executives felt that they could save money by only paying for each IT service call placed, rather than paying the salaries of IT staff. Integration of the new IT company proved to be a nightmare. Before when a computer needed servicing, an IT staff member would usually be able to address the problem within a few hours. With this new company in place, an employee whose computer was down typically did not have a response call in less than 24 hours. In one instance, a computer virus that had infected a computer had cost the company a good size contract to perform all the surveying work for a local college who was interested in building a new athletic complex. Had this engineering firm kept their IT department, or reduced the staff so that there was still somebody in-house to handle larger and more time-sensitive problems, this situation could probably have been avoided. Although the outsourcing was not necessarily more expensive than the IT salaries, the business interruption caused by outsourcing IT management proved to be costly for the company as many first time customers become repeat customers.

Matt Tobyne ROI by TobyneTobyne, 05 Jul 2010 17:09

The Good

In a small private company that works on SBIRs for DOD and NASA all project data was stored on “Project Server” the backup was implemented via weekly backup on a single built-in DLT. The growing amount of information required a different improved backup solution. The new separate DLT backup system that consisted of 7 slots for 7 tapes was purchased with a set of 14 tapes. This solution allowed the daily backup on a separate tape and every week the 7 tape set was swapped with the set stored in fire-proof safe. It provided the security and redundancy of backup system. When one of the tapes failed only one day of backups was lost that was easy to replace without implications.


The Bad

After some time the management who was using Mac computers decided that it is too difficult to access backups especially from Mac computers. In addition they wanted to implement a backup of their individual Mac based systems. The new “Backup Server” was purchased with Retrospect backup software. The new server was installed and backed up all systems as well as “Project Server” that was backed up by DLT system. Later the peron who setup both system was let go and someone decided that DLT system is too old and too time consuming to run. The “Backup Server” became the only backup solution for “Project Server”. When one of the RAID0 drives failed in “Project Server” they turned to “Backup Server” to restore the data and apparently the backup of “Project Server” was failing for the last couple months and the new IT person didn’t know to look for the alarms.


Conclusion is that no matter how good or expensive the solution is, the skills of IT personnel play a crucial role in the equation of IT investment.

Good- When starting up my tax company i looked thru various accounting/ tax softwares and i ended up choosing Tax Pro series, i was looking for a product that i could rely on and have tech support in case during tax season i had questions or issues since this would of been my first time using this product. Overall, it worked out well for me because it was cost efficient and allowed me to reach profit gains at a much faster rate with that said thank god i chose this product.

Bad-I used a MAC computer and installed a Microsoft Parallels which is a software that allows microsoft product (such as Tax Pro series) to work on a MAC, the problems that i encountered were mostly coming from printing final for the clients. The software did not recognize 85% of the time none of my printers, it was really frustrating since my objective of introducing tax filing in peoples home is to make them comfortable within their own home and reduce waiting time.

Good ROI

Upgraded our pipeline by adding 2 T1s to our original pipeline. Switched to MPLS which allowed all Mass based locations to be on one ISP provider network. Previously they were all on separate carriers. Results were faster transfers and internet. For example end users able to continuously stream ethics training videos no matter what the traffic. Results were visible, customer satisfaction increased and the project was completed with minimal downtime.

Bad ROI

ADP etime was an HR and Finance initiative to pool payrolls within the organization. Materials are inferior and inadequate. There was a lack of IT oversight and involvement. IT can’t support the program because it is hosted and run by ADP. It’s not the company server. As a result, IT has spent months just trying to get managers PCs to work because ADP wouldn’t change their website portal.

Lori Hrdy Good Bad ROI by LoriNoVowelsLoriNoVowels, 30 Jun 2010 22:09

Good ROI Project: Upgraded our pipeline by adding 2 T1s to our original pipeline. TFS switched to MPLS which brought together all Massachusetts locations on ATT circuits. All Mass based locations were previously on different ISP provider networks. The benefits are faster transfers, and internet to all sites. Results were visible to the customer- ethics videos continued streaming no matter what volume of trainees at a particular time. Customer end user satisfaction increased, upgrade was completed with minimal downtime.

Bad ROI Project: ADP e time was an HR and Finance initiative to pool payroll. The tool is inferior, punch clocks are in poor locations and there is no central gatekeeper assigned. There was a lack of IT oversight in the project. It can't support the system, it is hosted and run by ADP. It is not a Thermo Fisher Scientific server. Following launch, IT spent months trying to get hundreds of end user PCs to work with the program as is because ADP wouldn't change their website portal.

THE GOOD
My examples of IT investments that have paid off and that have not paid off deal with phone systems. First, the good example. An overhaul of the phone systems from PBX to VOIP. The company had the Private Branch Exchange which was costing the company a lot of money to maintain and service. The IT person I spoke with said, "PBX was like paying your own private phone company." The company decided to move to VOIP. The company saved millions of dollars in monthly service costs, the time and effort it took to pay the company's own IT employees to troubleshoot, and it was inefficient. VOIP has worked incredibly well and is always upgrading making it an even better investment.
THE BAD
Prior to transitioning to VOIP the company moved from PBX to a Call Manager Voicemail System. In the region where this IT person works the company invested close to 1 million dollars and it failed in 6 months. He said that it didn't work because the system was to complicated and the "buy-in" from the company's employees just wasn't there. It was so complicated to use that employees just gave up on it.

An American Multinational conglomerate achieved a 406 percent return on investment from using a bank-owned messaging and infrastructure cooperative. The company's treasury now communicates with its multiple banking relationships using a Member Administrated Closed User Group (MA-CUG). The solution obviates the need to maintain point-to-point solutions with each of 30 primary banks and 200 total banks across the globe, to manage over 20,000 bank accounts. Each bank required a unique messaging format, which meant that the company's IT was perpetually in upgrade/maintenance mode.
The estimated $10.5 million of savings stemmed from eliminating the need for IT to perform mapping and maintenance of the multiple messaging formats (48 percent); the elimination of the need for two full-time employees to monitor message traffic (22 percent); higher productivity of cash management operations (20 percent); software retirement (5 percent); cost avoidance for networking to multiple banks (4 percent); and hardware retirement (1percent).

ROI The Good by nskobynskoby, 29 Jun 2010 17:21

BAD
Prior to the release of the Windows Firewall, a national radio network with over 100 affiliates had been experiencing minor virus issues for an extended period of time. The IT group had notified the senior staff that an upgrade was available that would provide virus protection with a host based firewall. The upgrade would cost $2,000 plus an additional $3,000 for deployment. The senior staff refused to spend the money and a short time later the network was hit with a sophisticated virus. IT was forced to shut down the entire network of over 200 computers in seven sites located across the United States. The computers provided on air and production audio, as well as sales and office support. Critical services were shut down for approximately 18 hours and less critical services for up to two days. At $10M per year in revenue, a two day shut down translates into ~$50K loss not including the dead air time which translates into lost customers.
GOOD
After the virus issue was resolved the senior staff of the radio network agreed to spend the $5,000 to install the virus protection software with the host based firewall. The host based firewall provides protection from both in-bound and out-bound viruses. Data would not be allowed into the host computer unless “invited” or authorized. Conversely, data would not be allowed out of the host computer unless it was authorized to leave, thus protecting the integrity of the network. Also, the virus protection software would send a report to the IT team to inform them if any “bad” data was attempting to enter or leave a host computer. Since the $5,000 investment, there has been a dramatic decrease in virus infiltrating the radio network.

ROI The Good and Bad by ed dahlmered dahlmer, 28 Jun 2010 14:35

A project with a good ROI was a company that incorporates a CRM system to assist in management of sales. The technical components were installed and more importantly there was buy in of the technology from the CEO down. The company was able to successfully utilize the product to meet the strategic requirements of the company.

A project with a bad ROI was a SAP conversion at a small company that was purchased by a larger world wide company. The conversion took place with out any support or training from the parent company. The lack of support led to the company not utilizing the system as intended. The frustration level with in the small company reached a level that several senior people left. The lack of planning and training led to valuable people leaving the company which would ultimately have a negative ROI.

ROI Investment GOOD and Bad by WheelsWheels, 28 Jun 2010 12:14

Biggest ROI

A senior management IT professional for a business group of a large financial services provider stated that his largest return on investment was the purchase of VM Ware which he saw at a conference four years ago. This server virtualization software has allowed him to reduce the number of physical servers he has from 120 to 10. The cost of the enterprise license for the virtual server software was approximately $20,000. Total savings over the last three years has been about $500,000. The savings have primarily come from the reduced staffing needs to maintain and oversee 120 servers versus 10 servers and the hardware savings.

Worst ROI

The IT professional stated that his worst return on investment has been a current IT project that he is working on. His department has been assigned the task of developing a Business Intelligence reporting tool for the business group. The first effort to develop this reporting tool cost $300,000 for an external vendor consultant and $500,000 for internal staffing. After spending $800,000 they produced 20 reports that the business group wanted and the business group decided they didn’t like them. A second attempt at development has cost $1 ½ million and they produced 10 more reports. Again the business group came back and said the reports did not meet there needs. The IT professional contributes this waste to what he called the Requirements Definition. At the onset of the project a Business Analyst from the group and a Computer Analyst from the group met and laid out the specifications of the project. First, business people and computer people do not talk the same language, secondly, many times business people have a rough idea of what they want but do not have the specifics that the computer people need and lastly many times these projects take months or years to develop and the business needs change during the project. This particular project has been put on hold because they have run out of funding for it.

I actually can speak Greek —- its this computer language that confuses me!!!! :)

The best ROI that our company had experienced was an investment in CFS, a corporate wide quality reporting system. Similar to most of the articles we read, there are no solid numbers that reflect the actual return on the investment. This new quality reporting system tracks all quality complaints and serves as a portal for all employees to see. When a quality complaint is logged into the system, everyone in the company is immediately informed. Furthermore this program tracks corrective actions and can be used to create feedback reports to customers. Because of this new system quality problems are solved quicker, and customer satisfaction has gone up.

The worst ROI case was a transition from CAD to Score software. This software is used in our design department and is linked directly to the sales team, customer service, and production. The existing software we had worked well, and would transfer all pertinent information to production when it was time to run the particular item. The new system has not linked well. It has major issues transferring the information needed for production. This causes our designers to do the work twice. Furthermore it takes the design team even longer to actually use the system in the first place. This system has been installed in 140 plants across the US. Again, this is extremely hard to quantify a cost, but the amount of wasted time compounded over 140 designers is an outstanding waste of money.

ROI-Good and Bad by keithbachmankeithbachman, 06 Jan 2010 02:51

Jillian C.- Business use of Social Networking

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