Slide 1

EDRMS Implementations:Case Study & Business Case Comparison

iCognition Pty LtdPresenter: Nigel Carruthers-Taylor, Managing Director

1ACCC Case StudyiCognition won a tender for a TRIM Interface for Australian Competition & Consumer Commission (ACCC)

Single portal to access and manage ALL information

Implementation of an Enterprise Information Solution (850 staff in 9 sites nationally)

Centralised virtual environment

www.diemsolutions.comiCognition won a tender to implement an Enterprise Information Solution. ACCC: 850 staff with 9 offices nationallyTRIM Interface as single portal to access and manage all informationevery electronic object goes into the systemUses a centralised virtual environment2ACCCs VisionCentralFile Servers

RegionalFile Servers

EmailStores

EmailArchive

Line-of-business Systems

Existing EDRMS

Intranet3Virtual Environment

ACCCs VisionRegionalFile ServersCentralFile Servers

EmailStores

EmailArchive

Line-of-business Systems

Existing EDRMS

Intranet

New EDRMS4Virtual Environment

An Enterprise Information Implementation

EmailStores

Line-of-business Systems

New EDRMS

Automated capture of ALL emails(Diem Email Capture)

Staff

DORIS Interface(Diem Portal)

Scratch Space for drafts(My Documents + Diem Folder Monitor)

Document is deleted after 3 daysUser is reminded to Store into TRIMNew itemsItems and Documents Can be accessed via DORIS

IntranetDocuments5Others have enterprise info managementAustralian Crime Commissionsame as ACCC except no auto email captureonly a few units exempt

Catholic Education Office Canberra-Goulburnadmin documents onlynetwork drives restrictedHR documents next

www.diemsolutions.comAustralian Crime Commissionsame as ACCC except no auto email capturea few small business units are exempt (special apps used)Catholic Education Office Canberra-Goulburnadmin documents are capturednetwork drives turned offHR documents in next phase

6This approachChange management issuesmigrating all documents browse vs search paradigmaccess to other applicationsYoure going to capture ALL my documents & emails??!!

So, is the change worth it?

CIO

www.diemsolutions.comThere are major change management issuesmigrating documents creates anxietywheres my document gone!?change from browse paradigm to search paradigmlimitations in access to other applicationsyoure going to capture ALL my emails??!!7Lets compare it using this method.....EDRMS cost-benefit analysis for 500 staff

5 year Total Cost of Ownership (TCO) model

Quantify costs and benefits where appropriate

Unquantifiable benefits identification

Major risks and issues

www.diemsolutions.com8EDRMS business case optionsRecords Management implementationenterprise-wide (available on all desktops)only capture corporate records

Business-specific implementationbusiness unit or business process specific e.g. Ministerial or claims processing

Enterprise Information implementationenterprise-widecapture all, or the majority, of documents and recordswww.diemsolutions.com9 Option 1: Records Management (RM) implementationMost common implementation type

Existing business processes and information stores

Register document when finalising, approving, emailing or archiving documents, or creating vital records.www.diemsolutions.comMost common implementation type in Australia Users continue existing business processes and use existing information storesRegister document when finalising, approving, emailing or archiving documents, or creating vital records.10RM implementation 5 year TCOItem

Year 1000Year 2000Year 3000Year 4000Year 5000Total000Software licences$375$375Software maintenance costs$75$75$75$75$75$375Scanning software$22$2$2$2$2$30Scanning hardware$15$1$1$1$1$19Hardware costs$50$5$5$5$5$70Database costs$97$16$16$16$16$161Third party implementer costs$150$50$50$0$0$250Migration costs$0$0$0$0$0$0Vendor training costs$40$10$6$0$0$56Ongoing support costs - vendor$20$20$20$20$80Ongoing support costs - DBA contractor$36$18$18$18$18$108Internal project team$208$116$116$116$116$670Travel and living$10$2$2$2$2$18Other - eg. Incidental software and utilities$10$3$3$16Raw total$1,088$318$314$255$255$2,228Risk & contingency (10%)$109$32$31$25$25$223TOTAL (ex GST)$1,197$349$345$280$280$2,45111RM implementation 5 year benefitsDirect Savings

Year 1'000Year 2000Year 3'000Year 4'000Year 5'000Total000Reduction percent0%10%10%15%15%Reduction in offsite storage cost$0$8$8$11$11$38Reduction percent0%10%15%20%20%Reduction in printing costs$0$37$55$73$73$238TOTAL$0$44$62$84$84$275Productivity and Efficiency SavingsYear 1'000Year 2000Year 3'000Year 4'000Year 5'000TotalReduction percent0%20%20%25%25%Reduction in onsite storage cost$0$42$42$53$53$189Achievable target30%40%50%60%70%Staff efficiency productivity benefits$292$390$487$585$682$2,437TOTAL$293$432$530$638$735$2,62612Productivity & efficiency savingsItemBest CaseWorst CaseLikely Case (Av.)Employees500500500Minutes/day saved20512.5Average salary$65,495$65,495$65,495Working days/year261261261Working minutes/day420420420Salary costs per minute$0.60$0.60$0.60Productivity benefit after 1 year$1,559,405$389,851$974,62813Non-quantifiable benefits & issuesReduction in compliance risks

Filing time and wait time reduction

Staff can continue existing business processes.

Records repository only contains relevant information30-70% usage means many records are missing...

www.diemsolutions.comReduction in compliance risksRecords repository only contains relevant informationAlthough user take-up is low (30-70%)Staff can continue existing business processesChange management effort is low

14 Option 1:RM implementation findingsQuantifiable analysis is line ballbenefits minus costs = $445,000Net Present Value (NPV) = only $184,000benefit/cost ratio = 1.09

Non-quantifiable benefits are the keycompliance issuesbusiness efficiencies

Large organisations NPV would improve if: project staffing costs kept to minimum levelmajority of staff have access.www.diemsolutions.comProject is line ball purely on quantifiable terms Non-quantifiable benefits are key to a strong business case. compliance issues and business efficiencies are key NPV would improve for large or very large organisations, so long as: project staffing costs are maintained at minimum level requiredmajority of staff have access

15Option 2: Business-specific implementation Common in private industryClaims or investment processing

Used in governmentMinisterial or executive correspondence

Cost-benefit influenced by % staff using solution.

www.diemsolutions.comCommon in private industry organisationsClaims or investment processingAlso used in GovernmentMinisterial or Executive CorrespondenceCost-Benefit heavily influenced by what % of organisation uses the solution

16Business-specific costs & benefitsCosts and benefits similar to Option 1 RM Implementation except for:

Reduced licences, implementation and support costsNarrower focus results in reduction of efficiencies and savings.

www.diemsolutions.comCostssame cost model as RM Implementationreduced number of licences, implementation and support costsBenefitssimilar model as RM Implementationnarrower focus results in reduction of efficiencies and savings

17Option 2:Business-specific findingsQuantified analysis is negativeNet Present Value = minus $309,000 Internal rate of return = minus 0.16

Investment cost is high for a limited scope

Only consider this option for strong non-quantifiable business casesclient service improvement is criticalresponses to key stakeholders or clients must be faster and more effective.

www.diemsolutions.com18Option 3: Enterprise Information ImplementationAgencies such as ACCC, ACC & CEO

Very few staff are exempt; 100% utilisation (or close)

All documents in EDRMS

Limited/no access to other info repositories

Reduce existing file servers.

www.diemsolutions.com19Enterprise info implementationcosts & benefitsHigher costs for migration, technical and business services, and change management

Productivity & efficiency benefits are appreciably higher

Compliance risks significantly reducedbut draft & ephemeral info in system

Storage growth reducing

Progress toward Green IT .www.diemsolutions.comCosts same as RM Implementation, but

Higher migration, technical and business services, and change management costsinternal project team needs to be bigger

Productivity & efficiency benefits are much higher

Compliance risks significantly reduced

ability to make significant steps toward Green ITthe [Enterprise Information] solution was a major contribution to the ACC decommissioning 71 file servers, ACC CTO

20Enterprise info implementation costs & benefits

Minister Tanner presents Computers Off certification to ACC CEO Mr John Lawler APM

The [Enterprise Information] solution was a major contribution to the ACC decommissioning 71 file servers ACC CTOwww.diemsolutions.comCosts same as RM Implementation, but

Higher migration, technical and business services, and change management costsinternal project team needs to be bigger

Productivity & efficiency benefits are much higher

Compliance risks significantly reduced

ability to make significant steps toward Green ITthe [Enterprise Information] solution was a major contribution to the ACC decommissioning 71 file servers, ACC CTO

21Option3:Enterprise info implementation findingsQuantified analysis result is significantnet present value = $2,437,000benefit/cost ratio = 2.00internal rate of return = 1.66

www.diemsolutions.comQuantified analysis result is significantNet Present Value of $2,437,000Benefit/cost ratio of 2.00Internal Rate of Return of 1.66

Change Management process is significantorganisation needs to be committedsupport needs to be strongimplementation needs to match cultureinterface needs to make sense to users

22In conclusionOptionNet present value Cost-benefit ratioInternal rate of returnOPTION 0: Do Nothing($1,009,000)(2.80)-OPTION 1: Records Management Implementation$184,0001.090.14OPTION 2: Business-specific Implementation($309,000)0.78(0.16)OPTION 3: Enterprise Information Implementation$2,437,0002.001.66Enterprise Implementation is a clear winner ...An order of magnitude better!

23But...Change management process is significantorganisational commitmentstrong supporttransition processesintuitive interface essential.

Very large or disparate organisations explore other implementation optionslogistical effort requiredseek maximum solution coverage

www.diemsolutions.comOnly do enterprise implementation if there is organisational commitment

For very large or disparate organisations other implementation options may be easierlogistical effort required is significantensure maximum solution coverage to get a return on investment.

24EDRMS Business Case White Papers available:http://www.diemsolutions.com/contact-us/ Long version with full detailsShorter version for Executives & Managerswww.diemsolutions.comThank you25