Return on investment in corporate social network (part 1)
How are the opinions of the producers themselves divided about the assessment of the benefits of using the corporate social network?
I have been thinking about this topic for a long time - in view of its breadth, ambiguity, controversy, topicality. I met a lot of opinions and even more criticism of the valuation approaches, in the end everything came down to one thing - you either believe in the correctness of the approach, or you do not believe. Often, for this reason, each organization decides on how to calculate the benefits of implementing a corporate social network in its own way. Some organizations conduct a promising IT project through the budget committee with a strict payback condition during the year, others rely on the providence of the new top manager who raised the information flag.
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But even those who pass the budget committee either believe in the estimated figures of economy and efficiency, or believe that these are dances with tambourines - the main thing is that the theme be approved. What do information technologies give in general and corporate social network in particular? Savings? Efficiency? Innovations? New quality? And how is it refracted during a crisis? And for what period it is necessary to count the benefit from the implemented solution?
The conclusion from what has been said is this: you can write several posts about return on investment, and we will do so. Today, as a warm-up, I will give a few opinions on the topic of return on investment from our respected developers.
Based on the experience of implementation, KCC suppliers identify a number of criteria for the success of an implementation project. They all converge in three things: the support of managers, the vision of business value, the management of the community. But then begin interesting nuances.
The Jive team outlines the following success criteria when implementing its solutions: the critical business initiative, executive sponsorship, the implementation plan, the deep and wide use cases. That is, according to Jive, the presence of the calculation of return on investment is necessary from the very beginning of the project. No sooner said than done. The External Community Business Value Calculator is an example of an investment return evaluation for external Jive communities.
I remember the story when the IT director of a Russian bank, at the request of the financial director, requested a calculation of the return on investment when implementing Yammer. Already out of the “ask Yammer” type of habit I decided to ask the Yammer team's European colleagues if they had similar calculations. And again they surprised me. First, they told me, if the customer asks for a return on investment from the corporate social network, then he misunderstands its essence, which is primarily to support the transformation of the company. And, secondly, in the European market, interest in the solution is so great that there is an opportunity to work with those customers who most want to achieve a result than drowning in the benefit calculations, in short, let's grab low hanging fruits, “let your customer ripen and take care of others. ”
Yammer, however, has indicators to measure project success. But unlike Jive, we are talking about the possibility of determining non-financial performance indicators based on the results of the implementation and use of the corporate social network.
I am sure that IBM has serious achievements in terms of calculating the return on investment of various IT solutions. Conferences vendor, as a rule, focused on managers and managers of organizations who are interested to learn about the results of the use of IBM solutions. But what is interesting: those presentations about IBM Connections, which I heard, were presented in the form of realization of personal effectiveness, aimed at achieving personal results and have a strong emotional coloring.
1C-Bitrix has an excellent training course Implementation of a corporate portal . I built the company's opinion on assessing the effectiveness of the corporate portal on quotations from this course, the chapter Implementation of the corporate portal .
“ Portal tools save time. But the reality is that not a single type of business can load its employees by 100%, and only in this case can we talk about dependence or at least some correlation of small time increments (~ 1%), which the corporate portal gives, and business parameters (revenue and costs). The implementation of a corporate portal directly on these parameters does not affect. Therefore, it is hardly worth talking from these positions with company executives about the effectiveness of implementing the corporate group.
... if it is not clear how the real financial gain depends on the time saved, then where in this case to look for efficiency? Win - in quality. The implementation of the corporation in all its diversity can change its characteristics in a company that are difficult to convert to rubles. However, they are extremely important for business owners, for top managers, for professionals and ordinary employees.
There is such a job for managers to work with incidents, disruptions in critical chains of business processes, disruptions that, like an avalanche, sometimes cling to and tear down near plans, schedules and agreements. On the analysis of such situations is spent one of the most valuable resources of the company - the time manager. And the higher the level of leadership, the more valuable this resource. And not because this time costs “X” rubles of his salary, but because if you take the TOP management, this time, taken away from strategic planning, from thinking over the vector-forming decisions, from negotiations. And this potential energy is almost impossible to assess, the result of an error or flaw in these areas is the stagnation or collapse of the company, and not the “performance evaluation”.
Summary: Of course, launching the internal project “Implementing a corporate”, it is necessary to build a system of goals and KPI for management and control, but it’s not practical to evaluate the effectiveness and payback of this investment in relation to the revenue / cost pair. "
Since Russian customers often ask for a return on investment, DaOffice went to meet and took the Forrester Research's Total Economic Impact calculation model as a basis. In the framework of the model, the growth of productivity through time saving is calculated. Firstly, the more involved an employee becomes, the less time he spends on performing his routine duties - searching, meetings, and so on. Secondly, the better communication in the company, the less duplication of projects occurs and projects are implemented with lower costs. And, thirdly, social adaptation reduces the cost of training new employees.
Like 1C-Bitrix, DaOffice also believes that it is impossible to completely convert the saved time into new features and therefore offers a 50% discount: half of the saved time is relaxing, half is working.
***
In his book, What Does Business Want from IT ? Terry White describes the three functions of information technology in an enterprise: 1) maintaining a business impulse through IT, 2) improving business results, and 3) taking the lead. If you refer to the above views of manufacturers, the corporate network can be claimed in each of these functions. Interesting variety in approaches, right?
To be continued…
Vladimir Ivanitsa
viva@supereon.ru
I have been thinking about this topic for a long time - in view of its breadth, ambiguity, controversy, topicality. I met a lot of opinions and even more criticism of the valuation approaches, in the end everything came down to one thing - you either believe in the correctness of the approach, or you do not believe. Often, for this reason, each organization decides on how to calculate the benefits of implementing a corporate social network in its own way. Some organizations conduct a promising IT project through the budget committee with a strict payback condition during the year, others rely on the providence of the new top manager who raised the information flag.
')
But even those who pass the budget committee either believe in the estimated figures of economy and efficiency, or believe that these are dances with tambourines - the main thing is that the theme be approved. What do information technologies give in general and corporate social network in particular? Savings? Efficiency? Innovations? New quality? And how is it refracted during a crisis? And for what period it is necessary to count the benefit from the implemented solution?
The conclusion from what has been said is this: you can write several posts about return on investment, and we will do so. Today, as a warm-up, I will give a few opinions on the topic of return on investment from our respected developers.
Jive software
Based on the experience of implementation, KCC suppliers identify a number of criteria for the success of an implementation project. They all converge in three things: the support of managers, the vision of business value, the management of the community. But then begin interesting nuances.
The Jive team outlines the following success criteria when implementing its solutions: the critical business initiative, executive sponsorship, the implementation plan, the deep and wide use cases. That is, according to Jive, the presence of the calculation of return on investment is necessary from the very beginning of the project. No sooner said than done. The External Community Business Value Calculator is an example of an investment return evaluation for external Jive communities.
Yammer
I remember the story when the IT director of a Russian bank, at the request of the financial director, requested a calculation of the return on investment when implementing Yammer. Already out of the “ask Yammer” type of habit I decided to ask the Yammer team's European colleagues if they had similar calculations. And again they surprised me. First, they told me, if the customer asks for a return on investment from the corporate social network, then he misunderstands its essence, which is primarily to support the transformation of the company. And, secondly, in the European market, interest in the solution is so great that there is an opportunity to work with those customers who most want to achieve a result than drowning in the benefit calculations, in short, let's grab low hanging fruits, “let your customer ripen and take care of others. ”
Yammer, however, has indicators to measure project success. But unlike Jive, we are talking about the possibility of determining non-financial performance indicators based on the results of the implementation and use of the corporate social network.
IBM Connections
I am sure that IBM has serious achievements in terms of calculating the return on investment of various IT solutions. Conferences vendor, as a rule, focused on managers and managers of organizations who are interested to learn about the results of the use of IBM solutions. But what is interesting: those presentations about IBM Connections, which I heard, were presented in the form of realization of personal effectiveness, aimed at achieving personal results and have a strong emotional coloring.
Bitrix24
1C-Bitrix has an excellent training course Implementation of a corporate portal . I built the company's opinion on assessing the effectiveness of the corporate portal on quotations from this course, the chapter Implementation of the corporate portal .
“ Portal tools save time. But the reality is that not a single type of business can load its employees by 100%, and only in this case can we talk about dependence or at least some correlation of small time increments (~ 1%), which the corporate portal gives, and business parameters (revenue and costs). The implementation of a corporate portal directly on these parameters does not affect. Therefore, it is hardly worth talking from these positions with company executives about the effectiveness of implementing the corporate group.
... if it is not clear how the real financial gain depends on the time saved, then where in this case to look for efficiency? Win - in quality. The implementation of the corporation in all its diversity can change its characteristics in a company that are difficult to convert to rubles. However, they are extremely important for business owners, for top managers, for professionals and ordinary employees.
There is such a job for managers to work with incidents, disruptions in critical chains of business processes, disruptions that, like an avalanche, sometimes cling to and tear down near plans, schedules and agreements. On the analysis of such situations is spent one of the most valuable resources of the company - the time manager. And the higher the level of leadership, the more valuable this resource. And not because this time costs “X” rubles of his salary, but because if you take the TOP management, this time, taken away from strategic planning, from thinking over the vector-forming decisions, from negotiations. And this potential energy is almost impossible to assess, the result of an error or flaw in these areas is the stagnation or collapse of the company, and not the “performance evaluation”.
Summary: Of course, launching the internal project “Implementing a corporate”, it is necessary to build a system of goals and KPI for management and control, but it’s not practical to evaluate the effectiveness and payback of this investment in relation to the revenue / cost pair. "
DaOffice
Since Russian customers often ask for a return on investment, DaOffice went to meet and took the Forrester Research's Total Economic Impact calculation model as a basis. In the framework of the model, the growth of productivity through time saving is calculated. Firstly, the more involved an employee becomes, the less time he spends on performing his routine duties - searching, meetings, and so on. Secondly, the better communication in the company, the less duplication of projects occurs and projects are implemented with lower costs. And, thirdly, social adaptation reduces the cost of training new employees.
Like 1C-Bitrix, DaOffice also believes that it is impossible to completely convert the saved time into new features and therefore offers a 50% discount: half of the saved time is relaxing, half is working.
***
In his book, What Does Business Want from IT ? Terry White describes the three functions of information technology in an enterprise: 1) maintaining a business impulse through IT, 2) improving business results, and 3) taking the lead. If you refer to the above views of manufacturers, the corporate network can be claimed in each of these functions. Interesting variety in approaches, right?
To be continued…
Vladimir Ivanitsa
viva@supereon.ru
Source: https://habr.com/ru/post/291552/
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