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					          Business Case ROI Workbook for IT Initiatives
   This tool is a comprehensive general-purpose business value model (ROI calculator) to support the development of business
   cases for enterprise-scale information technology-based projects. It provides a robust structure to help organizations assess
   the business value (costs, benefits, TCO, and ROI) of technology projects/initiatives.
   This workbook can be used as a standard corporate business case template for technology-based initiatives. It can also be
   used by consultants and technology vendors to articulate the business value of their products and solutions.

  On This Worksheet
        Workbook Table of Contents
        Key Features
        Model Components / Flowchart
        Instructions
        Disclaimer
        Terms of Use / Use Rights / End-User License Agreement (EULA)
        Support

  Workbook Table of Contents
              Worksheet
               Name                             Title                                                         Description
                                                                   Collects information about: organization size, location, and industry; end user types and
                                                                   labor costs; and the initiative to be modeled. This information is used to estimate default
            Profile        Organizational Profile
                                                                   values for all costs and benefits throughout the rest of the model. It displays a summary of
                                                                   costs and benefits of the scenario modeled.
                                                                   For Reference Only: provides key features, capabilities, benefits, and common
            Initiatives    Initiative Descriptions
                                                                   vendors/products for the 18 sample initiative types included in the model.
                                                                   Estimates all costs (direct and indirect) needed to implement, fully adopt, and support the
            Costs          Implementation Costs                    solution. Cost categories include: hardware, software, IT labor, and user labor, including
                                                                   one-time and annual on-going costs.
            IT Labor       IT Labor TCO Savings                    Estimates IT labor TCO (as-is and to-be) and TCO savings enabled by the solution
            Direct Savings Direct Cost Savings                     Estimates non-labor direct IT and business cost savings enabled by the solution.

                                                                   Estimates user time/labor savings enabled by the solution. First estimates the amount of
                                                                   time users spend conducting common business activities then estimates how much the
            Productivity   User Productivity Benefits
                                                                   solution is expected to increase the efficiency of conducting key activities. The time savings
                                                                   is discounted using a "Productivity Conversion Factor", then converted into $ value.
                                                                   Estimates how and how much the solution is expected to increase revenue. The benefit is
            Revenue        Revenue Impact
                                                                   the profit on the incremental revenue.
                           Key Performance Indicator Assessment    Assessment of how the solution may impact a variety of business KPIs. In this model, these
            KPIs
                           (Optional)                              KPI changes are not converted into financial benefits.
                                                                   Summary of costs & benefits by type; Cash flow analysis; calculation of ROI, payback
            ROI            Financial Analysis
                                                                   period, NPV, and IRR; and graphs



  Key Features
        Supports most types of enterprise-scale technology initiatives. Includes sample cost and benefit data for 18 common initiative types
        Comprehensive assessment of initiative costs and benefits
                Costs: hardware; software; IT labor, training, and services; and user labor and training
                Benefits: IT labor TCO savings, other direct cost savings, user productivity benefits, revenue growth, and non-financial key
                performance indicators
        Calculates annual on-going IT Labor TCO (total cost of ownership)
        Comprehensive financial analysis. Calculates project cash flow, cost-benefit analysis, ROI, NPV, IRR, and payback period
        Supports rapid (30 minute) or detailed (3+ day) assessments. This model was designed to provide either a rapid assessment (by just
        entering/selecting basic organizational profile and initiative information) or a very detailed (3+ day) assessment by modifying hundreds of
        detailed inputs.
        Protected, yet customizable: Essentially all values can be modified. Many custom cost and benefit items can be added. Formulas and
        other areas of the model that should not be modified are protected (locked) to maintain intended functionality. HCR can provide additional fee-
        based customization, if desired.
        Based on industry-standard calculations and industry-leading methodologies. It is as transparent as possible so the user is able to
        understand how the costs and benefits are calculated.
        Provides research-based default values. Default values (labor costs, user type mix, financial information, etc.) are provided based on your
        industry, geography, organization size and initiative type to enable more rapid assessments. Extensive research was conducted to find highly
        reputation sources for these. Data/estimate sources are listed. You may overwrite any of the pre-populated defaults.
        User-friendly. The workbook contains instructions, descriptions, and references. Results are updated real-time and are displayed graphically
        throughout the model. Although the model is user-friendly, we recommend users have at least a moderately-advanced understanding of
        business value concepts to develop a credible business case.
        Free download. No registration required.




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                               User Guide                                                                            1 of 44
          Business Case ROI Workbook for IT Initiatives
  Model Components / Flowchart
        The chart below graphically presents the components of the model.




  Instructions
        - Read the "Terms of Use" and "Disclaimer".
        - Before making any changes to the workbook, save the workbook under a different name. This will preserve the original default values and formulas
       so you may return to them at a later time.
        - Navigate the workbook using the worksheet tabs at the bottom. Start with the "Profile" tab. This worksheet contains the most important cost and
       benefit drivers. You will also see a summary view of the costs and benefits of the scenario modeled. Enter/edit data in the "input" (light yellow) cells.
       Edit (overwrite) the default values to customize results for your particular organization/initiative.
        - Review the “ROI” worksheet to pre-view costs and benefits.
        - Review the detailed default metrics and calculations in the "Costs" (red tab) and Benefit (green tabs) worksheets. Although not required, we
       recommend completing the “Costs” worksheet first to more clearly define the initiative. Not all benefit worksheets are appropriate for all initiative types
       (for example, some infrastructure initiatives may not have any revenue impacts).
        - The "Financial Analysis" report (or any other worksheet) can be printed or saved as PDF/XPS. Portions of the model may be incorporated (e.g.
       “Paste Special As Picture”) into a more comprehensive business case-type report.
        - Additional instructions are provided in the model
        - If fee-based consultative guidance and/or customizations are desired, contact HCR.




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                                    User Guide                                                                          2 of 44
           Business Case ROI Workbook for IT Initiatives
  Disclaimer
       This tool is intended to help guide organizations in better understanding approximate/potential costs and benefits. Due to limitations of simulation
       tools, actual results may differ significantly than results estimated in this tool. Investment decisions should not be based on the results of this model
       alone -- it is not intended to be a substitute for professional advice.

       This information is provided to you as a tool “as is” with the understanding that there are no representations or warranties of any kind either express or
       implied.

       In no event shall HCR or suppliers be liable for any damages, including those arising as a result of HCR or supplier negligence, whether those
       damages are direct, consequential, incidental, or special, flowing from your use of or inability to use the tool, or information provided herewith, or
       results of the tool's use, even if HCR or suppliers has been advised of the possibility of such damages.

  Terms of Use / Use Rights / End-User License Agreement (EULA)
       By using the software/document, you accept these terms. If you do not accept them, do not use the software.
        - You may use, copy, redistribute, display, print, and reproduce this software/document
        - You may NOT sell, rent, lease, or lend this software/document or portions/derivations of it
        - You may NOT create derivative works from this software/document
        - You may NOT "reverse-engineer" the software/document
        - You may only modify portions of the software/document designated as "Input" cells (light yellow cells)
        - You must maintain all copyright and other notices contained in this software/document.
        - You may incorporate only static (e.g. values, graphics) portions of this software/document within other documents (e.g. a business case report) as
       long as the dynamic (e.g. equations, macros) functionality of the workbook is not also incorporated or duplicated.
  Support
       HCR does not provide free support for free downloads. However, we do welcome any comments, suggestions, and feedback.

       HCR can provide fee-based services, including telephonic support, workbook customizations, and comprehensive consulting engagements to assist
       with business case development and validation.


        © Copyright, 2006-2008, Hall Consulting & Research LLC, All Rights Reserved. www.hallcr.com




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                                                User Guide                                                                3 of 44
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083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx   User Guide   6 of 44
Organizational Profile
  This worksheet contains key inputs/assumptions that drive cost and benefit calculations throughout the model. Defaults input values are provided based on industry, location, and
  organization size. These default input values should be reviewed and modifed as appropriate. A summary of the results is provided to the right to assist in viewing output implications
  of input changes. This summary data will be updated as changes are made throughout the model.

Required Organization/Initiative Data These are the most important inputs in the model.
  Enter values or select the closest fit from the drop-down menus.                                                      Your
                                                                                                                                               Summary Pre-view of Results
    answers to these key questions will have the most significant impact on default cost and benefit drivers through-out the
    rest of the model.
    Industry - select the closest-matching from the                Average / Mixed                                                                                                                                                             Organization Total
    drop-down                                                                                                                                                                                                               Per PC                  ($000)
    Industry is used to pre-select various default values (i.e. user type mix, labor costs)                                                    Costs (3-Yr)                                                            $      1,743        $                     8,716
    Primary geographic location - select the                       U.S.                                                                                                                                                                    $                    26,697
                                                                                                                                               Benefits (3-Yr)                                                         $      5,339
    closest-matching from the drop-down
    Used to scale labor costs and estimate default work hours per year                                                                         Net Benefits                                                            $      3,596        $                    17,982
    Primary Site Locations - select the closest-                   Suburban / Mixed                                                                                                                                                        $                    13,908
                                                                                                                                               NPV (Net Present Value)                                                 $      2,782
    matching from the drop-down box
    Used to scale labor costs. Urban labor costs tend to be 15-20% higher than suburban locations.                                             ROI (Return on Investment) - [Total
                                                                                                                                                                                                                                            206%
                                                                                                                                               Net Benefits / Total Costs]
    Total Number of PCs in Scope                                           5,000                                                               IRR (Internal Rate of Return)                                                                124%
    Number of PC Users in Scope                                            5,000                                                               Payback Period                                                                             9 Months
    This typically is approximately the same as the number of PCs. It is used to scale most costs and benefits.                                Number of PCs                                                                                   5000

                                                                       % of PC          # of PC                                                                                             Total Costs Vs Benefits (per PC)
                                                                        Users            Users
                                                                                                                                                                                             $6,000




                                                                                                                                                        Costs & Benefits ($/PC)
    Portion of PC Users that are Information
                                                                              44%             2,223
    Workers (IWs)                                                                                                                                                                            $5,000
    Portion of PC Users that are Data-entry or
                                                                              56%             2,777                                                                                          $4,000
    Structured-Task Workers
    Total PC-Users (# of Employees that use PCs                                                                                                                                              $3,000
                                                                             100%             5,000
    on a regular basis)                                                                                                                                                                                                                         $5,339
    Information Workers (Knowledge Workers) perform non-routine, cognitive, or creative work that often requires both structured and                                                         $2,000
    unstructured information inputs from multiple sources -- and that is not repeated throughout the course of the work day or work week.
    Examples include a product manager, analyst, accountant, engineer, sales executive, CFO, or CIO.                                                                                         $1,000             $1,743
    Data-entry and Structured Task Workers perform routine, structured tasks typically in a repeated manner. Examples include a customer
                                                                                                                                                                                                   $0
    service representative, insurance claims processor, or inside sales representative.
                                                                                                                                                                                                             Costs (3-Yr)                  Benefits (3-Yr)
    Initiative Type - Select the project type from
    the drop-down box that most closely matches                    PC Hardware & Operating System Upgrades
    the initiative to be modeled
    This pre-populates all costs and benefits with sample data based on the initiative type. The sample data is only provided at a moderate
    level of detail. If you want to start with a blank slate (all zeros), select "No Sample Data - Zero-out all costs/benefits". Sample data
                                                                                                                                                                                                  Cost Summary (per PC)
    should not be used for making investment decisions. Sample data is not meant to represent average/typical project results and is not
    based on research. It should only be used as a starting point for assessing the business value of your project. Initiative costs and
    benefits will differ substantially from one organization to another.
                                                                                                                                                                                  $2,000
                                                                                                                                                                                  $1,800                                                 End-User Labor &
                                                                                                                                                                                  $1,600                                                 Training
                                                                                                                                                                                                           $343
                                                                                                                                                Costs ($ per PC)



                                                                                                                                                                                  $1,400
Financial Information                                                                                                                                                             $1,200                   $268                          IT Labor, Services, &
                                                                                                                                                                                                                                         Training
    Default values are provided based on inputs above. Defaults may be adequate for rapid/ballpark assessments, but                                                               $1,000                   $253
                                                                                                                                                                                   $800
    otherwise should be reviewed/modified.                                                                                                                                                                                               Software
                                                                                                                                                                                   $600
    Organization Revenue ($ Millions)                   $                  3,925                                                                                                   $400                    $879
    Source of defaults is based on analysis of data from Fortune 500, Fortune Magazine and is industry-dependent (varies depending on                                              $200
    industry selected above)
                                                                                                                                                                                                                                         Hardware
                                                                                                                                                                                      $-
    Margin % of Revenue (Net profit margin of new                                             10.3%                                                                                                     3-Year Total
    revenue enabled by the initiative)
    Default value is based on industry average. This margin rate is used to calculate the business value of incremental revenue enabled by
    the initiative                                                                                                                                                                               Benefit Summary (per PC)
    Discount Rate / Cost of Capital (WACC)                                                     10%
    Used in Net Present Value calculations                                                                                                                                               $6,000
                                                                                                                                                                                                                                         Revenue Growth
    Duration of analysis (years) - Select from drop-                                              3                                                                                      $5,000              $1,070
                                                                                                                                                                   Benefits ($ per PC)




    down box.
                                                                                                                                                                                         $4,000                                          User Productivity
    A 3-year life-expectancy is standard for many IT projects. Some major initiatives may be 5 years.
                                                                                                                                                                                                             $1,616                      Benefits
                                                                                                                                                                                         $3,000
Labor Costs                                                                                                                                                                              $2,000
                                                                                                                                                                                                              $400
                                                                                                                                                                                                                                         Other Direct Cost
    Default values are provided based on inputs above. Defaults may be adequate for rapid/ballpark assessments, but                                                                                                                      Savings
                                                                                                                                                                                         $1,000              $2,253
    otherwise should be reviewed/modified.
                                                                                                                                                                                                                                         IT Labor/Services TCO
    Burden rate (labor overhead as a % of cash                                                                                                                                              $-
                                                                 25%                                                                                                                                                                     Savings
    compensation)*                                                                                                                                                                                        3-Year Total
    Standard Work Hours per Year                               1,824
    * Non-cash compensation, such as benefits and Social Security
                                                                     Average                          Burdened Burdened Burdened                                                                                             Costs & Benefits ($ per PC)
                                                                    Ann'l Cash          Burden         Annual   Weekly   Hourly                                                                                                            Annual On-           3-Year
                                                                      Comp-              Rate          Labor    Labor     rate                                                                                             One-Time          Going               Total
  IT Staff Labor Costs                                                                                                                         Initiative Costs
    Systems/Network Administrator/Engineer                         $      93,190               25% $116,488       $    2,240    $    63.86     Hardware                                                                $        606        $           91   $      879
    Software Developer/Engineer                                    $      96,675               25% $120,844       $    2,324    $    66.25     Software                                                                $        150        $           34   $      253
    Help Desk / Technical Support                                  $      62,781               25% $ 78,477       $    1,509    $    43.02     IT Labor, Services, & Training                                          $        213        $           18   $      268
    Source of salary data: based on HCR analysis of Bureau of Labor Statistics data and various 2007 Salary Surveys. Salary data is scaled     End-User Labor & Training                                               $        273        $           24   $      343
    based on industry, geography, and organization size.                                                                                                                                                     Total $           1,242       $          167   $     1,743
  PC User Labor Costs                                                                                                                          Initiative Benefits
    IWs (Information Workers)                                      $      74,937               25% $ 93,672       $    1,801    $    51.36     IT Labor/Services TCO Savings                                           $             -     $          751   $     2,253
    Data-entry or Structured Task Workers                          $      58,937               25% $ 73,672       $    1,417    $    40.39     Other Direct Cost Savings                                               $         75        $          108   $      400
    Average (weighted)                                             $      66,050                   $ 82,563       $    1,811    $    45.26     User Productivity Benefits                                              $             -     $          539   $     1,616
    ** Base compensation plus bonuses                                                                                                          Revenue Growth                                                          $             -     $          357   $     1,070
    Source of salary data: based on HCR analysis of U.S. Department of Labor, Bureau of Labor Statistics data; The World Bank, World                                                                         Total $             75        $      1,755     $     5,339
    Development Indicators Database; and Organisation for Economic Co-operation and Development. Salary data is scaled based on
    industry, geography, and organization size.


    © Copyright, 2006-2008, Hall Consulting & Research LLC, All Rights Reserved. www.hallcr.com




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                                                                             Profile                                                                                                                                             7 of 44
Description of Sample Initiatives (for reference only)
  Sample data should not be used for making investment decisions. Sample data is not meant to represent average/typical project
  results, is not based on research, and is not provided at the lowest level of detail. It should only be used as a starting point for
  assessing the business value of your project. Initiative costs and benefits will differ substantially from one organization to
  another.
Infrastructure/Platform Technology Initiatives
      Initiative Type            Key Features, Capabilities, Benefits                                  Sample Vendors And Products
                         Improved performance, reliability, security, manageability,     Microsoft Windows Vista, Linux, Red Hat, Novell
     PC HW/OS            Notebook, desktop, thin-client                                  Dell, HP, Apple, Toshiba, Lenovo, Fujitsu, Acer, Sony, Gateway
     Upgrades
                                                                                          Intel, AMD
                         Virtualization, consolidation, clustering                       Microsoft Windows Server, Novell SUSE, Red hat, Unix, Solaris,
                                                                                         IBM AIX, HP–UX
     Server HW/SW
                         Improved performance, reliability, manageability, security      IBM, HP, Dell, Sun, Fujitsu, Bull
     Upgrades
                         Multi-core, 64-bit, RISC/Itanium, x86
                         Web servers, application servers, DBMS servers, data
                         Asset inventory/management, OS management, configuration  Microsoft System Center Configuration Manager, MDOP, Active
                        management, change management, systems management,            Directory
     Infrastructure
                         Directory services, group policy objects                     IBM Tivoli, BMC Software, CA Unicenter, HP, LANDesk, Novell
     Mgmt /
                                                                                      ZENworks, Symantec Altiris, Cisco Systems
     Networking          IPV6, LAN, WAN
                         VOIP – voice over Internet protocol
                         Digital storage of business data and documents               EMC, HP, IBM, Sun, Hitachi, EDS, Network Appliance
                         Archival, records management, tape backup, SAN, NAS, disk    IBM DB2, Microsoft Exchange, Microsoft SQL Server, Oracle, SAP
     Storage
                        arrays, iSCSI, fibre channel
                         Capacity management, performance analysis, storage
                         Security planning, assessment, incident/breach management  McAfee, Symantec, CA, Trend Micro
     Security            Identity and access management, encryption, smartcards,      Cisco Systems, NetIQ
                         Firewalls, antivirus, anti-malware, anti-spyware, network    VeriSign, IBM, Unisys
                         Improved software quality, integration, usability            Microsoft .NET, Visual Studio
                         Custom developed software                                    IBM WebSphere, Rational
     Application         Rapid application development                                Sun Microsystems Java
     Development /       Middleware, application server                               Java/J2EE/EE, Ruby on Rails, PHP, Python, Perl
     Architecture        Web services, Service-Oriented Architecture, SaaS (software  Oracle Fusion Middleware, Application Server
                         Enterprise architecture (EA)                                 BEA Systems WebLogic, JBoss (Red Hat), SAP NetWeaver

                         Methods and software to ease compliance with regulations        BearingPoint, Deloitte, Ernst & Young, IBM, KPMG,
                         ITIL, COBIT, Six Sigma, CMM, ISO 17799/9000, PMBOK             PricewaterhouseCoopers
     Compliance,         Maturity models (Microsoft’s Infrastructure Optimization
     Governance,        Maturity Model)
     Risk                Portfolio management, IT-business alignment, balanced
                         Business continuity – disaster planning / recovery
                         IT governance, policies, internal audit, monitoring
                         Outsource IT and business processes, applications,                Accenture, Capgemini, Cognizant, CSC, EDS, IBM, HP, Siemens,
                        infrastructure, or initiatives to reduce costs and improve results CompuCom, Infosys, Keane, Perot Systems, Satyam, TCS, Wipro,
                                                                                           Getronics, Unisys
     Outsourcing         Infrastructure management: helpdesk, on-site support,             AT&T, IBM, MCI-Digex, Qwest, Rackspace, Verio
                        desktop business process outsourcing
                         BPO –management, data center services
                         Offshore services
                         Application outsourcing, web hosting
                         Wireless e-mail, mobile access to line-of-business applications,  Microsoft Windows Mobile, Palm, Symbian
                         VPN, mobile remote access, telecommuting                          RIM BlackBerry, Nokia, Apple iPhone, Sharp, Motorola/Symbol,
     Wireless/
                                                                                           Fujitsu,
     Mobility
                         Handheld devices, smartphone, PDAs                                3Com, Cisco Systems, Nortel Networks, Siemens
                         Wireless LAN/WAN, 802.11n, WiMAX, CDMA, UMTS, GPRS,               Equant, AT&T, MCI, BT, Sprint, Verizon




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                              Initiatives                                                                      8 of 44
Description of Sample Initiatives (for reference only)
Business Technology Initiatives
      Initiative Type                Key Features, Capabilities, Benefits                                     Sample Vendors And Products
                            Word processing, spreadsheets, personal databases,                Microsoft Office 2007
     Office
                                                                                               OpenOffice.org
     Productivity
                                                                                               Sun StarOffice
     Software
                                                                                               Google Apps
                              E-mail, calendaring/scheduling, task management, unified        Microsoft SharePoint, Exchange, Live Meeting
                              Real-time collaboration, presence, instant messaging, web       IBM Domino / Lotus Notes
     Messaging/               Social computing, blogs, wikis                                  Oracle Collaboration Suite
     Collaboration            Team workspaces, project management, discussion threads,        Sun Java Enterprise System
                                                                                               Novell GroupWise
                                                                                               WebEx Communications
                            Document management, web content management,                      Microsoft SharePoint
                            Knowledge management, information management                      EMC Documentum, FileNet, Hummingbird, IBM Content
     Content                                                                                  Management, Interwoven, Mobius Management Systems, Open
     Management                                                                               Text, Oracle Content Services, Stellent, and Vignette

                              Intranets, Extranets, Portals
                              Web sites for external business information dissemination,      Microsoft IIS, Commerce Server
     E-commerce /
                              Web storefronts, shopping cart management, taxation,            ATG, Escalate Retail, Comergent, Oracle, SAP
     Internet
                              B2B, B2C, AJAX, mashups
                              Process modeling, monitoring and management                     Microsoft BizTalk Server, SharePoint Server
                              Workflow, business rules, automation, electronic forms          Captaris Workflow, EMC Documentum, Global 360, IBM FileNet,
     Business
                                                                                              Open Text
     Process Mgmt /
                     BAM (business activity monitoring)                                       Pegasystems, Oracle, SAP, TIBCO, webMethods, BEA Systems,
     Integration                                                                              SeeBeyond, GXS, Sterling Commerce
                            EAI (enterprise application integration)
                            Database management systems (DBMS), data warehousing,             Microsoft SQL Server, PerformancePoint Server
     Business               Master data management, data quality, metadata                    Teradata, IBM, Oracle, MySQL, Ingres, PostgreSQL, Sybase
     Intelligence /
     Data Mgmt              Financial planning, corporate performance management,             Oracle Hyperion, Business Objects, Informatica, Cognos,
                           reporting, analytics, dashboards, scorecards, enterprise search,   Information Builders, MicroStrategy, SAS
     Business               Wide variety of specialized software that helps organizations     Various products/vendors by business function and industry
     Applications          streamline business processes and improve results
     (Vertical, LOB)
                              Customer Relationship Management                                  Oracle Siebel, PeopleSoft
     CRM                      Sales force automation, marketing campaign management,            Onyx, Sage, mySAP CRM, Salesforce.com, Amdocs
                              Hosted CRM                                                        Microsoft Dynamics CRM
                              Enterprise resource planning: supply chain management,            SAP
                                                                                                 Oracle Fusion (E-Business Suite, J.D. Edwards, PeopleSoft)
     ERP / Supply
     Chain
                                                                                               Lawson, Intentia, Infor, Sage, Ariba,
                                                                                               Microsoft Dynamics

     © Copyright, 2006-2008, Hall Consulting & Research LLC, All Rights Reserved. www.hallcr.com




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                                  Initiatives                                                                         9 of 44
Implementation Costs
       This worksheet estimates all costs needed to implement the initiative, including hardware, software, IT labor/services,
       and user labor costs.

Hardware
                                                                                                                   Cost per Unit
                                                                                                                             Annual
                                                             Unit Label              Unit Quantity           One-Time*      Recurring*                 3-Year Total          Comments
   Client Hardware
      PCs                                            PCs                                       2,500     $          1,000     $            150 $            3,625,000
      PC Upgrades                                    PCs                                       2,500     $            200     $             30 $              725,000
      Mobile Devices                                                                                 -   $            200     $              30 $                        -
      Other                                                                                          -   $            200     $              30 $                   -
      Sub Total                                                                                          $     3,000,000 $            450,000      $        4,350,000
   Server Hardware
      Servers                                        Servers                                      1.7    $         15,000     $          2,250 $               36,250
      Storage (including backups,
                                                     Terabytes                                    0.5    $         10,000     $          1,500 $                 7,250
      redundancy, power supplies, etc.)
      Network Equipment                                                                              -                        $                -   $                     -
      Other                                                                                          -                        $                -   $                     -
      Sub Total                                                                                          $        30,000 $              4,500      $           43,500
      Total                                                                                              $     3,030,000 $            454,500      $        4,393,500
      * One-Time costs are typically incurred at the beginning of the project. Annual Recurring costs are on-going costs necessary throughout the life of the project.
Software
      The software license is typically a one-time cost. Software maintenance (Software Assurance) is an optional annual recurring cost
                                                                                                                                   Annual
                                                                                                                                  Recurring
                                                                                        License              One-Time              (Main-
                                                                                        Quantity             (License)            tenance)             3-Year Total          Comments
   Client Software
      Application A                                                                            1,500     $            300     $              69 $             760,500
      Application B                                                                                  -   $            100     $              23 $                        -
      Desktop Operating System                                                                 2,500     $            100     $              23 $             422,500
      Client Access Licenses (CALs)                                                            1,500     $              10    $               2 $              25,350
      Other                                                                                                                                        $                -
      Sub Total                                                                                          $       715,000 $            164,450      $        1,208,350
   Server Software
      Server Operating System                                                                     1.7    $          2,000     $            460 $                 5,633
      Database                                                                                       2   $          8,000     $          1,840 $               22,533
      Server Application                                                                             2   $         10,000     $          2,300 $               28,167
      Utilities                                                                                      -                        $                -   $                     -
      Other                                                                                                                                        $                     -
      Sub Total                                                                                          $        33,333 $              7,667      $           56,333
      Total                                                                                              $       748,333 $            172,117      $        1,264,683


IT Labor, Services, & Training
   One-time Implementation Labor/Services
                                                                                                     Time
                                                                                                              Annual          Cost per Time
                                                              Time Unit                 One-Time             Recurring             Unit                3-Year Total          Comments
                                             Person-weeks
      Planning, Evaluation and Project Management                                                30.0                         $          2,240 $               67,204
      Engineering                                    Person-weeks                                18.0                         $          2,240 $               40,323
      Development                                    Person-weeks                                33.6                         $          2,240 $               75,269
      Lab Testing                                    Person-weeks                                 7.2                         $          2,240 $               16,129
      Pilot Testing                                  Person-weeks                                12.0                         $          2,240 $               26,882
      Rollout                                        Person-weeks                                36.0                         $          2,240 $               80,645
      Performance Tuning                             Person-weeks                                 4.8                         $          2,240 $               10,753
      Documentation                                  Person-weeks                                 4.8                         $          2,240 $               10,753
      Implementation User Support                    Person-weeks                                 4.8                         $          2,240 $               10,753
      Consultants                                    Person-weeks                                48.0                         $          6,720 $              322,581
      External Services                              Person-weeks                                 9.6                         $          6,720 $               64,516
      Other                                          Person-weeks                                12.0                         $          2,240 $               26,882
      Total                                                                         $       752,689      $                -                                   752,689
      *1 Person-week is equivalent to 2 employees each dedicating 50% of a week to the task or 1 person dedicating 8 hrs per week over 5 weeks.




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                                                           Costs                                                                               10 of 44
Implementation Costs
     This On-Going Labor/Services
   Annualworksheet estimates all costs needed to implement the initiative, including hardware, software, IT labor/services,
                                                                                             Unit Quantity
                                                                                                       Annual
                                                                Unit*                   One-Time      Recurring              Cost per Unit         3-Year Total       Comments
      Maintenance                                    Full Time Equivalents                                           0.20    $      116,488 $             69,893
      Support                                        FTEs                                                            0.20    $      116,488 $             69,893
      Customization                                  FTEs                                                            0.10    $      116,488 $             34,946
      Development                                    FTEs                                                            0.20    $      116,488 $             69,893
      Upgrades                                       FTEs                                                            0.04    $      116,488 $             13,979
      Performance Tuning                             FTEs                                                            0.04    $      116,488 $             13,979
      External Services                              FTEs                                                                -   $      174,731 $                     -
      Bandwidth                                                                                                          -                     $                  -
      Other                                                                                                              -                     $               -
      Total                                                                         $                -   $        90,860                                 272,581
      *FTE (Full Time Equivalent): 1 full time employee is equivalent to 2 employees each dedicating 50% of their work time to the task


   Incremental Help Desk Calls

      Percentage of users who contact the
                                                                            40%
      service desk due to issues/questions
      related to the solution implementation
      Number of contacts per user (who
                                                                              1.5
      contact the help desk)
      Average service desk resolution time
                                                                              25
      per call (in minutes)
      Additional service desk time (hours)                               1250.0
      Total                                          $                  53,781

   IT Training
                                                                                                          Independent
                                                      Formal (Classroom)                 Internal        Learning (Self-
                                                          Training                       Training            Study)           3-Year Total                            Comments

      Staff trained with this type of training                             11.2                 56.0                 56.0

      Hours of training per staff member                                      32                    16                  40
      Labor Cost per Hour                             $                       64    $               64   $             64
      Training time (labor cost)                     $                    2,044     $         1,022      $         2,555
      Class and Additional Fee Cost per
                                                      $                   1,500     $           300      $             75
      trainee
      Cost per Employee Trained                      $                   3,544      $         1,322      $        2,630
      Total Cost                                     $                  39,689      $        74,022      $      147,255 $           260,966


End-User Labor & Training
   End-User Labor
                                                                                                             Hours per User Impacted
                                                                                                                           Annual On-
                                                      % of Users Impacted               # Of Users           One-Time         Going                3-Year Total       Comments
      Solution planning & testing                                             2%                 100                    10                     $          45,265
      Downtime (Unable to be productive);
      e.g. during implementation of the                                       2%                 100                     1                     $           4,526
      solution
      Resolution of issues related to the new
                                                                              6%                 300                     5                   2 $         149,374
      solution
      System configuration                                                  20%                 1000                     4                 0 $           181,059
      Data entry (not previously required)                                    4%                 200                     0                10 $           271,589
      Other                                                                   0%                     0                   0                 0 $                    -
      Other                                                                   0%                     0                   0                 0 $                 -
      Total                                                                                              $      298,748 $           117,689 $            651,814




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                                                           Costs                                                                        11 of 44
Implementation Costs
   End-User Training
     This worksheet estimates all costs needed to implement the initiative, including hardware, software, IT labor/services,
                                                                                       Independent
                                            External Classroom        Internal        Learning (Self-
                                                 Training             Training            Study)             Total                                  Comments
      % of Employees trained                               10%               20%                 40%
      Employees trained                                    500             1,000               2,000
      Hours of training per employee                          4                 3                   8
      Labor Cost per Hour                 $                 45    $           45      $           45
      Training time (labor cost)          $                181    $          136      $         362
      Class and Additional Fee Cost per
                                          $                100    $              60   $            3
      trainee
      Cost per Employee Trained           $                281    $          196      $         365
      Total Cost                          $            140,530    $      195,795      $     729,238 $        1,065,562


Summary                                                    Organization Total                                                         Per PC
                                                                       Annual                                                   Annual
                                                One Time              Recurring        3-Year Total         One Time           Recurring            3-Year Total
   Hardware
      Client Hardware                     $          3,000,000    $      450,000      $    4,350,000 $               600   $               90   $                   870
      Server Hardware                     $             30,000    $        4,500      $       43,500 $                 6   $                1   $                     9
      Sub-Total                           $          3,030,000    $      454,500      $    4,393,500 $               606   $               91   $                   879
   Software
      Client Software                     $            715,000    $      164,450      $    1,208,350 $               143   $               33   $                   242
      Server Software                     $             33,333    $        7,667      $       56,333 $                 7   $                2   $                    11
      Sub-Total                           $            748,333    $      172,117      $    1,264,683 $               150   $               34   $                   253
   IT Labor, Services, & Training
                                           $
      One-time Implementation Labor/Services           752,689    $            -      $      752,689    $            151   $                -   $                   151
      Annual On-Going Labor/Services       $                 -    $       90,860      $      272,581    $              -   $               18   $                    55
      Incremental Help Desk Calls          $            53,781                        $       53,781    $             11   $                -   $                    11
      IT Training                          $           260,966                        $      260,966    $             52   $                -   $                    52
      Sub-Total                            $         1,067,435    $       90,860      $    1,340,016    $            213   $               18   $                   268
   End-User Labor & Training
      End-User Labor                      $            298,748    $      117,689      $      651,814    $           60     $            24      $                    130
      End-User Training                   $          1,065,562                        $    1,065,562    $          213     $             -      $                    213
      Sub-Total                           $          1,364,310    $      117,689      $    1,717,376    $          273     $            24      $                    343
      Total                               $          6,210,079    $      835,166      $    8,715,576    $        1,242     $           167      $                  1,743




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                                         Costs                                                                             12 of 44
Implementation Costs
                                                                   Annual                                             Annual
       This worksheet estimates all costs needed to implement the initiative, including hardware, software, IT labor/services,
                                                                               One Time                 Recurring         3-Year Total                            One Time          Recurring                   3-Year Total
      Hardware                                                        $             3,030,000       $      454,500       $   4,393,500               $                   606   $                   91   $                          879
      Software                                                        $               748,333       $      172,117       $   1,264,683               $                   150   $                   34   $                          253
      IT Labor, Services, & Training                                  $             1,067,435       $       90,860       $   1,340,016               $                   213   $                   18   $                          268
      End-User Labor & Training                                       $             1,364,310       $      117,689       $   1,717,376               $                   273   $                   24   $                          343
      Total                                                           $             6,210,079       $      835,166       $   8,715,576               $                 1,242   $                  167   $                        1,743



                                                                     Total Implementation Costs                                                                        Total Implementation Costs
                                                        Thousands   $10,000                                                                                                      (Per PC)
                                                                                                                                                                    $2,000
                                                                     $9,000
                                                                                                               End-User Labor &                                     $1,800                                       End-User Labor &
                                                                     $8,000             $1,717                 Training                                                                                          Training
                                                                                                                                                                    $1,600              $343




                                                                                                                                         Costs ($ per PC)
                                                                     $7,000
                                       Total Costs




                                                                                                                                                                    $1,400
                                                                                        $1,340                 IT Labor, Services,                                                                               IT Labor, Services, &
                                                                     $6,000                                                                                                             $268
                                                                                                               & Training                                           $1,200                                       Training
                                                                     $5,000             $1,265
                                                                                                                                                                    $1,000              $253
                                                                     $4,000                                                                                          $800
                                                                                                               Software                                                                                          Software
                                                                     $3,000                                                                                          $600
                                                                     $2,000             $4,394                                                                                          $879
                                                                                                                                                                     $400
                                                                                                               Hardware                                                                                          Hardware
                                                                     $1,000                                                                                          $200
                                                                          $0                                                                                           $0
                                                                                     3-Year Total                                                                                   3-Year Total




                                                                    Total Implementation Costs                                                                         Total Implementation Costs
                                                                                                           End-User Training
                                                                                                                                                                                 (Per PC)
                                                                 $10,000                                                                                            $2,000
                                                                                                                                                                                                            End-User Training
                                                     Thousands




                                                                    $9,000                                                                                          $1,800
                                                                                                           End-User Labor                                                                                   End-User Labor
                                                                    $8,000           $1,066                                                                         $1,600            $213
                                                                                                                                         Total Costs ($ per PC)




                                                                                      $652                                                                                            $130                  IT Training
                                                                    $7,000            $261                 IT Training                                              $1,400            $52
                                                                                      $54
                                       Total Costs




                                                                                      $273                                                                                            $11
                                                                                                                                                                                      $55                   Incremental Help Desk Calls
                                                                    $6,000            $753                                                                          $1,200            $151
                                                                                      $56                                                                                             $11
                                                                                                           Incremental Help Desk                                                                            Annual On-Going
                                                                    $5,000           $1,208                                                                         $1,000            $242
                                                                                                           Calls                                                                                            Labor/Services
                                                                                      $44                                                                                              $9                   One-time Implementation
                                                                    $4,000                                                                                           $800
                                                                                                           Annual On-Going                                                                                  Labor/Services
                                                                    $3,000                                 Labor/Services                                            $600                                   Server Software
                                                                    $2,000           $4,350                One-time                                                                   $870                  Client Software
                                                                                                                                                                     $400
                                                                                                           Implementation
                                                                    $1,000                                                                                           $200                                   Server Hardware
                                                                                                           Labor/Services
                                                                                                           Server Software
                                                                          $0                                                                                           $0                                   Client Hardware
                                                                                   3-Year Total                                                                                    3-Year Total


   © Copyright, 2006-2008, Hall Consulting & Research LLC, All Rights Reserved. www.hallcr.com




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                                                                         Costs                                                                                                           13 of 44
083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx   Costs   14 of 44
083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx   Costs   15 of 44
083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx   Costs   16 of 44
083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx   Costs   17 of 44
IT Labor TCO and TCO Savings
   This worksheet estimates IT Labor TCO by estimating/allocating labor effort across common IT staff activities (as a % of total by category). The number of FTEs (full-time equivalents) the calculated. Then the likely %
   reduction in effort (for existing activities only) enabled by the solution is estimated. All increases in labor (required to implement/support the new solution) should be included in the "Costs" worksheet. As-is (current) and
   To-be (after the solution is fully implemented) TCO is calculated on displayed in bar charts to the right. The benefit (summarized at the bottom) is any annual on-going TCO savings enabled by the initiative.

IT Labor TCO by General Function
       Total IT Employees (IT Staff) FTEs                                                                                                       157.8
       IT Employees as % of Total PC Users                                                                                                       3.2%
       Ratio of PC Users to IT Staff                                                                                                             31.7
       Source of User to IT staff ratios is based on analysis of U.S. Department of Labor, Bureau of Labor Statistics data and is industry-dependent



                                                                                                                                          Average
                                                                                                               % of                      Burdened   As-Is             Total IT Labor TCO /
                                                                                                              Total*        FTEs*          Cost** TCO / PC                     Year              Comments
                                                         PC/User administration, security, sw/hw
       PC Management Services                            deployment, data backup
                                                                                                                  17%             27     $ 116,488      $      625   $               3,124,482
                                                         Service Desk / Technical Support. Call
       Help Desk (Tech Support)                          center (remote), and deskside (on-site)                  16%             25     $     78,477   $      396   $               1,981,118
                                                         support of user computing
                                                         Management and administration of servers,
       Server & Network Mgmt Services                    data storage, and the network
                                                                                                                  21%             33     $ 116,488      $      772   $               3,859,654
                                                         Application development, testing,
       Application Development                           troubleshooting, and support.
                                                                                                                  30%             47     $ 120,844      $ 1,144      $               5,719,992
                                                         Finance, purchasing, training, planning,
       Administration & Other                            administration, senior management                        16%             25     $ 110,803      $      559   $               2,797,190
                                                         overhead, other
       Total IT FTEs                                                                                             100%           158                     $ 3,496      $              17,482,436
       * include management, except senior management; which is included in "Administration"
       ** Base compensation plus bonuses X burden rate. Defaults are from "IT Staff Labor Rates" on the Profile worksheet.

Detailed IT Labor TCO and Savings
                                                                                                               % of                           % Re-         As-Is
                                                                          Description                          Total        FTE's            duction        TCO      To-Be TCO       Savings     Comments
   PC Management Services
                                                         PC hardware and software planning &
       PC HW / SW Evaluation                                                                                        5%           1.4             18.0% $        33   $        27     $    5.92
                                                         evaluation
                                                                                                                                                                                                            As-Is TCO               PC Management TCO
       PC Image Management                               Design, test, certify, and update images                   7%           1.9             36.0% $        44   $        28     $   15.75
                                                                                                                                                                                                            To-Be TCO
       User Admin & Provisioning                         User adds, moves and changes.                              9%           2.4             45.0% $        56   $        31     $   25.31                                                         TCO ($/PC)
                                                         Configuration, packaging, compatibility                                                                                                                                            $0   $50                $100   $150
       Application Management                            testing, inventory, piloting
                                                                                                                  16%            4.2             36.0% $        99   $        63     $   35.52
                                                                                                                                                                                                                  PC HW / SW Evaluation
                                                         Software deployment, changes, and
       Software Deployment                               removal
                                                                                                                  11%            2.8             63.0% $        66   $        24     $   41.44                    PC Image Management
                                                         Security policy setting, assessment and                                                                                                               User Admin & Provisioning
       Security Assessm't & Planning                     planning.
                                                                                                                    9%           2.4             18.0% $        56   $        46     $   10.12
                                                                                                                                                                                                                Application Management
                                                         Management and distribution of security
       Security Patch Management                         patches
                                                                                                                    4%           1.1             27.0% $        25   $        18     $    6.75                     Software Deployment
                                                         Handling of security breaches,                                                                                                                     Security Assessm't & Planning
       Security Incident Remediation                     unauthorized access, theft, etc.
                                                                                                                    2%           0.5             63.0% $        12   $         5     $    7.87
                                                                                                                                                                                                             Security Patch Management
                                                         PC-based information and data                                                                                                                      Security Incident Remediation
       Data Mgmt, Backup & Restore                       management (file shares) & backup
                                                                                                                    5%           1.3             36.0% $        31   $        20     $   11.25
                                                                                                                                                                                                            Data Mgmt, Backup & Restore
                                                         Directory services, group policy objects, sw
       Tools/GPO Management                              distribution, & other tools
                                                                                                                  13%            3.5             36.0% $        82   $        53     $   29.60                   Tools/GPO Management
                                                         Advanced diagnostics/troubleshooting -                                                                                                                         3rd Level Support
       3rd Level Support                                 escalated from help desk
                                                                                                                  19%            5.2             36.0% $       120   $        77     $   43.33
       Total ($ per PC)                                                                                                           27     $     232.87 $        625   $       392     $ 232.87
       Total (% of Total TCO)                                                                                    100%                           37.3%




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                                                                                                                                IT Labor                                                                                            18 of 44
IT Labor TCO and TCO Savings
   This worksheet estimates IT Labor TCO by estimating/allocating labor effort across common IT staff activities (as a % of total by category). The number of FTEs (full-time equivalents) the calculated. Then the likely %
   Help Desk (Tech Support)
                                                                                                                                                                                      As-Is TCO
                                                                                                                                                                                                           Help Desk TCO
       Proprietary Applications             Custom developed application support          30%     7.5       40.0% $    118   $        71    $   47.04                                                                                 TCO ($/PC)
       Standard Desktop Software            Commercial off-the-shelf applications         15%     3.8       40.0% $     59   $        35    $   23.66                                                              $0           $50                $100      $150
       Operating Systems                    Operating system-related issues               15%     3.7       40.0% $     58   $        35    $   23.14                                   Proprietary Applications
       Hardware (except printers)           Hardware troubleshooting/repair               12%     3.1       30.0% $     49   $        34    $   14.68                                Standard Desktop Software
       Data Comm./Network                   Networking                                    10%     2.5       30.0% $     39   $        27    $   11.57                                        Operating Systems
                                                                                           5%               70.0% $                                                                  Hardware (except printers)
       Password Resets                      Reset user passwords                                  1.2                   19   $         6    $   13.65
                                                                                                                                                                                          Data Comm./Network
       Databases                            Database troubleshooting                       5%     1.1       20.0% $     18   $        14    $    3.60                                          Password Resets
       Service Requests                     Forward requests for other services            4%     1.1       20.0% $     17   $        13    $    3.31                                                 Databases
       Voice Communications                 Telecommunications                             3%     0.7       20.0% $     10   $         8    $    2.07                                          Service Requests
       Printers                             Printer troubleshooting/repair                 2%     0.6       30.0% $     10   $         7    $    2.93                                    Voice Communications
                                                                                                                                                                                                        Printers
       Others                                                                              0%      -        30.0% $      -   $         -    $      -
                                                                                                                                                                                                         Others
       Total ($ per PC)                                                                           25    $    146 $     396   $       251    $ 145.64
       Total (% of Total TCO)                                                             100%              36.8%

   Server & Network Mgmt Services                                                                                                                                                    As-Is TCO             Server & Network Mgmt TCO
                                            Manage network communication                                                                                                             To-Be TCO
       Network management                   infrastructure
                                                                                          12%     4.0       15.0% $     93   $        79    $   13.89                                                                                 TCO ($/PC)
                                            Deployment, configuration, administration,
                                                                                                                                                                                                                   $0     $50           $100          $150   $200
       Hardware management                  support
                                                                                          11%     3.6       15.0% $     85   $        72    $   12.74
                                                                                                                                                                                         Network management
                                            Deployment, configuration, administration,
       Operating system support                                                           16%     5.3       30.0% $    124   $        86    $   37.05
                                            support                                                                                                                                     Hardware management
                                            Deployment, configuration, administration,
       Server application mgmt              support
                                                                                          24%     8.0       30.0% $    185   $       130    $   55.58                                 Operating system support
                                            Planning, assessment, patching, issue                                                                                                       Server application mgmt
       Security                             remediation
                                                                                          14%     4.7       25.0% $    110   $        83    $   27.57
                                                                                                                                                                                                       Security
                                            Storage capacity planning and
       Storage management                   management
                                                                                          11%     3.6       15.0% $     85   $        72    $   12.74                                     Storage management
                                                                                                                                                                                       Database Mgmt & Admin
                                            Index management, replication, log
       Database Mgmt & Admin                                                              12%     4.0       15.0% $     93   $        79    $   13.89
                                            administration, data recovery, optimization                                                                                                                   Other

       Other                                                                               0%      -        15.0% $      -   $         -    $      -
       Total ($ per PC)                                                                           33    $    173 $     774   $       601    $ 173.46
       Total (% of Total TCO)                                                             100%              22.4%                                                                    As-Is TCO             Application Development TCO
                                                                                                                                                                                     To-Be TCO                                        TCO ($/PC)
   Application Development                                                                                                                                                                                         $0          $200                $400      $600
       Design                               Needs assessment, conceptual design            6%     2.8        9.0% $     69   $        62    $    6.18
                                                                                                                                                                                                         Design
       Development                          Detailed engineering, development             42%    19.9       12.0% $    480   $       423    $   57.66
                                                                                                                                                                                                  Development
       Testing                              Test and pilot                                22%    10.4        9.0% $    252   $       229    $   22.65
                                            Advanced support and troubleshooting                                                                                                                        Testing
       Support                              (escalated from help desk)
                                                                                          30%    14.2       12.0% $    343   $       302    $   41.18
                                                                                                                                                                                                       Support
       Other                                                                               0%      -         9.0% $    -     $         -    $      -
                                                                                                                                                                                                          Other
       Total ($ per PC)                                                                           47    $    128 $ 1,144     $     1,016    $ 127.67
       Total (% of Total TCO)                                                             100%              11.2%

   Administration & Other                                                                                                                                                            As-Is TCO             Administration & Other TCO
                                            Needs assessment, standards                                                                                                              To-Be TCO
       Planning                             development, evaluation, business case        19%     4.8        7.0% $    106   $        99    $    7.44                                                                                 TCO ($/PC)
                                            development, project planning                                                                                                                                          $0     $50           $100          $150   $200
                                            Purchasing, procurement, and vendor
       Purchasing                           management
                                                                                          14%     3.5       21.0% $     78   $        62    $   16.45                                                  Planning
       Finance                              Budgeting and chargeback tasks                18%     4.5       28.0% $    101   $        73    $   28.20                                               Purchasing
       Training                             IT and end-user training                      16%     4.0        7.0% $     90   $        83    $    6.27                                                  Finance
       Senior management                    Senior IT management overhead                 28%     7.1        7.0% $    157   $       146    $   10.96
                                                                                                                                                                                                       Training
       Other                                Administration and other                       5%     1.3        7.0% $     28   $        26    $    1.96
                                                                                                                                                                                            Senior management
       Total ($ per PC)                                                                            25   $     71 $     559   $       488    $   71.27
       Total (% of Total TCO)                                                             100%              12.7%                                                                                         Other


Summary



083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                                                                                        IT Labor                                                                                                                       19 of 44
IT Labor TCO and TCO Savings
                                                                                        IT Labor staff / PC / Year
   This worksheet estimates IT Labor TCO by estimating/allocating labor effort across common IT TCO activities (as a % of total by category). The number of FTEs (full-time equivalents) the calculated. Then the likely %
                                                                                                                                        Full-Time Equivalents
                                                                                 As-Is     To-Be                 Savings                   To-Be
                                                                                  TCO       TCO     Savings         %      As-Is FTEs       FTEs           Savings
                                         PC Management Services                 $ 625 $ 392 $ 232.87                 37%          26.8         19.5                     7.3
                                         Help Desk (Tech Support)               $ 396 $ 251 $ 145.64                 37%          25.2         18.5                     6.8
                                         Server & Network Mgmt Services         $ 774 $ 601 $ 173.46                 22%          33.2         27.1                     6.1
                                         Application Development                $1,144 $ 1,016 $ 127.67              11%          47.3         42.6                     4.8
                                         Administration & Other                 $ 559 $ 488 $            71.27       13%          25.2         22.4                     2.9
                                         Total                                  $3,499 $ 2,748 $           751       21%         157.9        130.1                   27.8



                                      IT Labor TCO Comparison                                                                                   IT Labor Comparison
                             $4,000                                                                                              As-Is TCO            To-Be TCO                  As-Is FTEs          To-Be FTEs
                                                                                                                                                                                          47.3
                             $3,500                                                                                    $1,400                                                                                           50
                                                               Administration & Other
                                         $559                                                                                                                                                                           45
                             $3,000                                                                                    $1,200
       TCO per PC per Year




                                                                                                                                                                                                                             FTEs (Full Time Equivalents)
                                                                                                                                                                                                                        40
                                                                                                                                                                         33.2             42.6
                                                               Application




                                                                                                 TCO per PC per Year
                                                                                                                       $1,000                                                                                           35
                             $2,500                  $488
                                        $1,144                 Development                                                           26.8
                                                                                                                                                     25.2                                                  25.2         30
                                                                                                                        $800
                             $2,000                                                                                                                                                                                     25
                                                     $1,016    Server & Network                                                                                          27.1
                                                                                                                        $600
                             $1,500                            Mgmt Services                                                                                                                                            20
                                                                                                                                                                                                           22.4
                                         $774                                                                                        19.5
                                                                                                                        $400                         18.5                                                               15
                             $1,000                            Help Desk (Tech
                                                     $601                                                                                                                                                               10
                                         $396                  Support)                                                 $200
                                                                                                                                                                                                                        5
                              $500                   $251                                                                         $625 $392       $396 $251          $774 $601             $1,016
                                                                                                                                                                                      $1,144           $559 $488
                           $625
          Key SoftGrid Benefits                                PC Management                                               $-                                                                                           0
                                                     $392                                                                       PC Management   Help Desk (Tech   Server & Network     Application   Administration &
                                 $-                            Services                                                            Services         Support)       Mgmt Services      Development        Other
                                       As-Is TCO   To-Be TCO



   © Copyright, 2006-2008, Hall Consulting & Research LLC, All Rights Reserved. www.hallcr.com




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                                                                                                                     IT Labor                                                                                      20 of 44
Direct Cost Savings
       This workbook estimates various direct IT and business cost savings enabled by the solution.

  Direct Cost Savings - IT
    Reduce/Avoid Software Costs - PCs
       Capabilities/features included in the proposed solution that can reduce the need for (planned) or current costs of 3rd party software.
                                                                      One-Time      Annual Costs
                                                     % of PCs       Costs Avoided      Avoided        3-Year Total                 Comments
       Application A                                        25% $              100   $          20    $     200,000
       Application B                                        15% $              200   $          40    $     240,000
       Imaging tools                                        50% $               10   $         -      $      25,000
       Encryption tools                                     30%                      $          20    $      90,000
       OS virtualization                                    20%                      $          20    $      60,000
       Security Utilities                                  100%                      $          20    $     300,000
       Total                                                    $          300,000   $    205,000     $     915,000

    Reduce/Avoid Software Costs - Servers
       Capabilities/features included in the proposed solution that can reduce the need for current or expected costs of 3rd party software.

       Approximate Total Number of Existing
                                                            100
       Servers

                                                                      One-Time    Annual Costs
                                                     Quantity       Costs Avoided   Avoided           3-Year Total                Comments
       Business Applications                                    6   $        6,000   $         900    $      52,200
       Back-Up / Recovery                                       6   $          200   $          30    $       1,740
       OS virtualization                                        4   $          200   $          30    $       1,160
       Security Utilities                                       4   $          200   $          30    $       1,160
       Other                                                    2   $          500   $          75    $       1,450
       Total                                                        $       39,800   $       5,970    $      57,710

    Reduce/Avoid Hardware Costs
                                                                      One-Time    Annual Costs
                                                     Quantity       Costs Avoided   Avoided           3-Year Total                Comments
       Server Consolidation - avoid purchasing new
                                                                4   $        6,000   $         900    $      34,800
       servers
       Virtualization                                           2   $        6,000   $         900    $      17,400
       Peripherals                                                  $           -    $          -     $           -
       Replacement                                                  $           -    $          -     $           -
       Other                                                        $           -    $          -     $           -
       Total                                                        $       36,000   $       5,400    $      52,200

    Reduce/Avoid IT Service Costs
                                                                  One-Time           Annual Costs
                                                     Quantity   Costs Avoided          Avoided        3-Year Total                Comments
       Consulting Services (Hours)                          80 $          -          $       150      $      36,000
       Outsourcing (Hours)                                  80 $          -          $       150      $      36,000
       Other                                                  - $         -          $        -       $           -
       Other                                                  - $         -          $        -       $           -
       Other                                                  - $         -          $        -       $           -
       Total                                                    $           -        $    24,000      $      72,000




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                               Direct Savings                                                          21 of 44
Direct Cost Savings
    Reduce Power/Electricity Usage Costs
                                                         PCs              Servers            Ann'l Total   3-Year Total   Comments
       Average Watts per PC/Server                             140               800
       Average Watts per monitor (CRT/LCD
                                                                60                  10
       mix)
       Total                                                 200                 810
       kW-hours per day                                     3.36               19.20
       Electricity cost per kW-hour               $         0.09      $         0.09
       Electricity cost per PC/Server per year    $          110      $          631
       Number of PCs/Servers                               5,000                100
       % PCs/Servers likely to be impacted by
                                                               50%              100%
       power saving measures

       Average time per day (hours) that power                  14                  24
       will be reduced for impacted PCs/Servers
       % reduction in power usage during this
                                                            100%                100%
       time
       Total Benefit per PC/Server                $           32      $          631
       Total                                      $      160,965      $       63,072     $       224,037   $   672,111

    Other IT Cost Avoidance/Reductions
                                                                    One-Time             Annual Costs
                                                       Quantity   Costs Avoided            Avoided         3-Year Total   Comments
       Reduce Bandwidth Costs                                 10 $          -            $        150      $      4,500
       Reduce Heating, Cooling Costs                            2 $         -            $      1,200      $      7,200
       Reduce Other Facilities Costs                          10 $          -            $         -       $          -
       Other                                                  10 $          -            $         -       $          -
       Total                                                      $           -          $      3,900      $     11,700


  Direct Cost Savings - Business

    Reduce/Avoid Travel Expenses                                                                                          Comments
       # of employees impacted (travel regularly
       and are likely to benefit from the proposed             445
       solution)
       Average number of trips per year currently
                                                                  5
       per impacted employee
       % of trips that could be avoided due to the
                                                                3%
       proposed solution
       Trips avoided                                          67
       Cost of average trip                        $       1,100
       Total Annual Benefit                        $      73,355
       3-Year Total                                $     220,066

    Reduce Business Services
                                                                        One-Time         Annual Costs
                                                       Quantity       Costs Avoided        Avoided         3-Year Total   Comments
       Consulting Services (Hours)                                -   $         -        $       150       $         -
       Outsourcing                                                -   $         -        $       150       $         -
       Other                                                      -   $         -        $        -        $         -
       Other                                                      -   $         -        $        -        $         -
       Total                                                          $           -      $          -      $         -

    Reduce Other Business Expenses
                                                                        One-Time         Annual Costs
                                                       Quantity       Costs Avoided        Avoided         3-Year Total   Comments
       Supply costs                                               -   $         -        $         70      $         -
       Raw Material Costs                                         -   $         -        $         90      $         -
       Inventory carrying costs                                   -   $         -        $         30      $         -
       Operations                                                 -   $         -        $         60      $         -
       Other                                                      -   $         -        $         60      $         -
       Other                                                      -   $         -        $        -        $         -
       Other                                                      -   $         -        $        -        $         -
       Other                                                      -   $         -        $        -        $         -
       Total                                                          $           -      $          -      $         -




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                                 Direct Savings                                             22 of 44
Direct Cost Savings
  Summary
                                                                               Organization Total                                       Per PC
                                                                                     Annual
     IT Savings                                                  One Time           Recurring      3-Year Total       One Time      Annual Recurring 3-Year Total
         Software - Clients                                  $     300,000      $      205,000    $    915,000    $          60     $             41 $       183
         Software - Servers                                  $      39,800      $         5,970   $     57,710    $             8   $              1 $        12
         Hardware                                            $      36,000      $         5,400   $     52,200    $             7   $              1 $        10
         IT Services                                         $           -      $       24,000    $     72,000    $            -    $              5 $        14
         Power/Electricity Usage                                                $      224,037    $    672,111    $            -    $             45 $       134
         Other IT Costs                                      $           -      $         3,900   $     11,700    $            -    $              1 $         2
         Total                                               $     375,800      $      468,307    $ 1,780,721     $          75     $             94 $       356

     Business Savings
         Travel Expenses                                                        $        73,355   $    220,066    $            -    $             15   $      44
         Business Services                                   $             -    $             -   $          -    $            -    $              -   $       -
         Other Business Expenses                             $             -    $             -   $          -    $            -    $              -   $       -
         Total                                               $             -    $        73,355   $    220,066    $            -    $             15   $      44

         Total                                               $     375,800      $      541,662    $   2,000,787   $           75    $            108   $     400


                                         Direct Cost Savings
                                  $450

                                  $400           $-          Other Business Expenses
                                                $44
                                  $350           $2          Business Services
             Benefit ($ per PC)




                                  $300                       Travel Expenses
                                               $134
                                  $250                       Other IT Costs

                                                $14          Power/Electricity Usage
                                  $200          $10
                                                $12

                                  $150                       IT Services

                                  $100                       Hardware
                                               $183

                                   $50                       Software - Servers

                                                             Software - Clients
                                   $-
                                            3-Year Total


  © Copyright, 2006-2008, Hall Consulting & Research LLC, All Rights Reserved. www.hallcr.com




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                                           Direct Savings                                                           23 of 44
User Productivity Benefits Assessment
  This worksheet estimates the business user productivity benefits enabled by the initiative. These benefits are calculated ba sed on time savings of conducting common
  business activities. Although these benefits are "Indirect" (not part of the IT budget), they do typically improve profitability. The method below tends to be more
  conservative (yet more comprehensive) than other methods of estimating business user impacts. This productivity analysis onl y estimates efficiency improvements, not
  effectiveness (agility, decision-making) improvements. A "conversion factor" is applied because not all saved time may be used to conduct other value-added activities.

      On This Worksheet:
          Allocation of Time Across Business Activity Categories
          Allocation of Time Across Detailed Activities and Efficiency Improvements
          Summary of Productivity Improvements (Time Saved)
          Business Value of Time Saved

Allocation of Time Across Business Activity Categories
    Review/modify how much time (as a portion % of total work time) users typically spend conducting the common business activities below. Allocate time for the activity
    categories then the activity sub-categories. This is done for both information workers and structured task workers. The resulting hours per week is calculated.


                                                                      Time Allocation         Hrs / Wk
                                                                                Task       Info      Task
                                                                     Info Wrkr Wrkr        Wrkr      Wrkr                                                       Comments
   Activity Category Totals
           Individual Computing                                             32%     30%                     11.2    10.5
           Collaborative Computing                                          21%      3%                      7.4     1.1
           PC Systems Management                                             4%      2%                      1.4     0.7
           Non-Computing-Related Activities                                 43%     65%                     15.1    22.8
           Total (Must sum to 100%)                                        100%    100%                     35.1    35.1
   Activity Sub-Categories
      Individual Computing
           Document Creation                                                25%     28%                      2.8     2.9
           Data & Information Access/Analysis                               10%      5%                      1.1     0.5
           Email, Calendar, Contact, & Task Mgmt                            24%      8%                      2.7     0.8
           LOB Application-Related Activities                               31%     52%                      3.5     5.5
           Other                                                            10%      7%                      1.1     0.7
           Total (Must sum to 100%)                                        100%    100%                     11.2    10.5
      Collaborative Computing
           Document Collaboration                                           60%     47%                      4.4      0.5
           Workflow (routing)                                               15%     28%                      1.1      0.3
           Coordination / Project Mgmt                                      16%     15%                      1.2      0.2
           Other                                                             9%     10%                      0.7      0.1
           Total (Must sum to 100%)                                        100%    100%                      7.4      1.1
      PC Systems Management
           Support, Self-Help, & Learning                                   35%     40%                      0.5      0.3
           Performance                                                      25%     25%                      0.4      0.2
           Mobility & Remote Connectivity                                   17%      6%                      0.2      0.0
           Security & Privacy                                               13%     15%                      0.2      0.1
           System UI Navigation                                              6%      8%                      0.1      0.1
           Availability & Reliability                                        4%      6%                      0.1      0.0
           Total (Must sum to 100%)                                        100%    100%                      1.4      0.7
           Non-Computing-Related Activities                                                                 15.1    22.8
           Total                                                                                            35.1    35.1



                                  Time by Business Activity -                                                  Time by Business Activity -
                                          Summary                                                                Individual Computing
                               40.0                                                                         12.0                           Other
                                                              Non-Computing-
                               35.0                           Related Activities                                      1.1
                                                                                                            10.0                  0.7
                                                                                                                                           LOB Application-
                               30.0
                                        15.1                                                                          3.5                  Related Activities
              Hours per Week




                                                                                           Hours per Week




                                                              PC Systems                                     8.0
                               25.0
                                                    22.8      Management                                                          5.5      Email, Calendar,
                               20.0      1.4                                                                 6.0                           Contact, & Task
                                                                                                                      2.7                  Mgmt
                               15.0      7.4                  Collaborative                                                                Data & Information
                                                                                                             4.0                  0.8
                                                     0.7
                                                     1.1      Computing                                               1.1         0.5      Access/Analysis
                               10.0
                                        11.2                                                                 2.0
                                5.0                 10.5                                                              2.8         2.9      Document Creation
                                                              Individual
                                0.0                           Computing                                      0.0
                                      Info Wrkr   Task Wrkr                                                        Info Wrkr   Task Wrkr




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                                                 Productivity                                                                      24 of 44
User Productivity Benefits Assessment

                                      Time by Business Activity -                                                       Time by Business Activity -
                                       Collaborative Computing                                                           PC Systems Management
                                8.0                                                                               1.6                                      Availability &
                                                                   Other                                                                                   Reliability
                                7.0        0.7                                                                    1.4        0.1
                                                                                                                             0.1                           System UI
                                6.0        1.2                                                                    1.2        0.2                           Navigation
               Hours per Week




                                                                                                 Hours per Week
                                5.0                                Coordination /                                 1.0                                      Security & Privacy
                                           1.1                                                                               0.2
                                                                   Project Mgmt
                                4.0                                                                               0.8
                                                                                                                             0.4           0.0             Mobility & Remote
                                3.0                                Workflow (routing)                             0.6                      0.1             Connectivity
                                                                                                                                           0.1
                                           4.4                                                                                             0.0
                                2.0                                                                               0.4                      0.2             Performance

                                1.0                         0.1                                                   0.2        0.5
                                                            0.2
                                                            0.3    Document                                                                0.3             Support, Self-Help,
                                0.0                         0.5    Collaboration                                  0.0                                      & Learning
                                        Info Wrkr      Task Wrkr                                                          Info Wrkr     Task Wrkr


Allocation of Time Across Detailed Activities and Efficiency Improvements
   Allocate user time across each of the detailed activities below. Hours per week is calculated/displayed. Then estimate the percent improvement in activity
   efficiency enabled by the initiative. Hours saved per week is calculated/displayed. For example, if a user spends 1 hour pe r week conducting an activity, a 10%
   efficiency improvement should free up 6 minutes per week for other value-adding work. Note that a 10% efficiency improvement does not imply that the user will
   spend 10% less time conducting that activity (they may do more of that activity if they are more efficient at it); it does im ply that the user is expected to complete that
   activity 10% more efficiently.


   Individual Computing                                                         Time %           Hours / Week                      Efficiency    Time Saved
                                                                                      Task       Info     Task                     Improve-      Info  Task
                                                 Activity                  Info Wrkr Wrkr        Wrkr     Wrkr                        ment       Wrkr Wrkr                       Comments
      Document Creation
           Document general layout/set-up                                        5%        5%                     0.14      0.15          1%        0.00    0.00
           Formatting documents                                                 20%       15%                     0.56      0.44          4%        0.02    0.02
           Searching for functionality "how do I…"                              10%        5%                     0.28      0.15          3%        0.01    0.00
           Creating graphics                                                    10%       10%                     0.28      0.29          3%        0.01    0.01
           Typing, thinking                                                     55%       65%                     1.54      1.92          0%        0.00    0.01
           Total (Time % must sum to 100%)                                     100%      100%                     2.81      2.95          1%        0.04    0.04
      Data & Information Access/Analysis
           Internet browsing/viewing                                            40%       45%                     0.45      0.24          3%        0.01    0.01
           Searching for documents & folders                                    20%       15%                     0.22      0.08          9%        0.02    0.01
           Collecting/combining information                                     20%       20%                     0.22      0.11          8%        0.02    0.01
           Finding/accessing/combining data                                     10%       10%                     0.11      0.05          9%        0.01    0.00
           Data analysis & reporting                                            10%       10%                     0.11      0.05          9%        0.01    0.00
           Total (Time % must sum to 100%)                                     100%      100%                     1.12      0.53          6%        0.07    0.03
      Email, Calendar, Contact, & Task Mgmt
           Processing email                                                     75%       75%                     2.02      0.63          0%        0.00    0.00
           Managing calendar, contacts, and tasks                               15%       15%                     0.40      0.13          0%        0.00    0.00
           Note-taking, management                                              10%       10%                     0.27      0.08          0%        0.00    0.00
           Total (Time % must sum to 100%)                                     100%      100%                     2.69      0.84          0%        0.00    0.00
      LOB Application-Related Activities
           Data entry into LOB (line-of-business)
                                                                                   20%   40%                      0.70      2.19         10%        0.07    0.22
           applications
           Using LOB applications (or the predecessor
                                                                                   80%   60%                      2.78      3.28          5%        0.14    0.16
           activity)
           Total (Time % must sum to 100%)                                     100%      100%                     3.48      5.47          3%        0.07    0.22
      Other
           Development time (macros, VBA, Access)                                   4%    4%               0.04             0.03          0%        0.00    0.00
           Reading, thinking, etc.                                                 96%   96%               1.08             0.71          0%        0.00    0.00
           Other                                                                    0%    0%               0.00             0.00          0%        0.00    0.00
           Total (Time % must sum to 100%)                                     100%      100%              1.12             0.74          0%        0.00    0.00
      Total                                                                                               11.22            10.52          2%        0.18    0.29




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                                                       Productivity                                                                                25 of 44
User Productivity Benefits Assessment
   Collaborative Computing                                          Time %         Hours / Week          Efficiency   Time Saved
                                                                          Task     Info     Task         Improve-     Info  Task
                               Activity                        Info Wrkr Wrkr      Wrkr     Wrkr            ment      Wrkr Wrkr      Comments
      Document Collaboration
           Document collaboration (collaborative authoring,
           sharing, reviewing, debating, mark-up, change           60%     60%        2.65        0.30          0%     0.00   0.00
           consolidation)
           Meetings (document-collaboration-focused)               35%      35%       1.55        0.17          0%     0.00   0.00
           Document management                                      5%       5%       0.22        0.02          0%     0.00   0.00
           Total (Time % must sum to 100%)                        100%     100%       4.42        0.49          0%     0.00   0.00
      Workflow (routing)
           Workflow activities – paper-based (review,
                                                                   50%     50%        0.55        0.15          0%     0.00   0.00
           approval, routing, signature collection)
           Workflow activities - electronic                        50%      50%       0.55        0.15          0%     0.00   0.00
           Total (Time % must sum to 100%)                        100%     100%       1.10        0.29          0%     0.00   0.00
      Coordination / Project Mgmt
           Document-creation-intensive project
           coordination/management (issue tracking, task           70%     70%        0.83        0.11          0%     0.00   0.00
           management, document status)
           Coordination of other business activities               30%      30%       0.35        0.05          0%     0.00   0.00
           Total (Time % must sum to 100%)                        100%     100%       1.18        0.16          0%     0.00   0.00
      Other
           Reporting - Disseminating and managing
                                                                   70%     90%        0.46        0.09          0%     0.00   0.00
           documentation/reports
           Social networking (connecting people, sharing re-
                                                                   30%     10%        0.20        0.01          0%     0.00   0.00
           usable knowledge)
           Other                                                     0%     0%        0.00        0.00          0%    0.00    0.00
           Total (Time % must sum to 100%)                        100%     100%       0.66        0.11           0%   0.00    0.00
      Total                                                                           7.37        1.05           0%   0.00    0.00
                                                                                                                    Time Saved
   PC Systems Management                                            Time %          Mins / Week          Efficiency    (Mins)
                                                                          Task     Info     Task         Improve-   Info   Task
                               Activity                        Info Wrkr Wrkr      Wrkr     Wrkr            ment    Wrkr Wrkr        Comments
      Support, Self-Help, & Learning
           Support time (helpdesk)                                 20%     20%         5.9         3.4         15%      0.9    0.5
           Unproductive resolution lag time (downtime)             15%     15%         4.4         2.5         15%      0.7    0.4
           PC upgrade; OS re-install                                5%      5%         1.5         0.8         23%      0.3    0.2
           Install SW, patches, peripherals, drivers               20%     20%         5.9         3.4         25%      1.5    0.8
           Self-help - system "how-to" questions; Peer
                                                                   40%     40%        11.8         6.7          6%      0.7    0.4
           support
           Total (Time % must sum to 100%)                        100%     100%      29.46       16.84         14%     4.06   2.32
      Performance
           Processor/HDD response time                             30%      30%        6.3         3.2         50%      3.2    1.6
           Network/Server response time                            30%      30%        6.3         3.2         50%      3.2    1.6
           PC start-up, shut-down, resume                          40%      40%        8.4         4.2         20%      1.7    0.8
           Total (Time % must sum to 100%)                        100%     100%      21.05       10.52         38%     8.00   4.00
      Mobility & Remote Connectivity
           Remote & wireless connectivity, Network issues          20%     20%         2.9         0.5         10%      0.3    0.1

           Lost productivity due to dead laptop battery            15%      15%        2.1         0.4         12%      0.3    0.0
           Laptop shut-down, start-up, wake/resume                 45%      45%        6.4         1.1         12%      0.8    0.1
           Time managing/accessing files for off-line use          20%      20%        2.9         0.5          9%      0.3    0.0
           Total (Time % must sum to 100%)                        100%     100%      14.31        2.53         11%     1.57   0.28
      Security & Privacy
           Security pre-cautions                                   90%      90%        9.8         5.7         18%      1.7    1.0
           Virus, adware and other security issues                  5%       5%        0.5         0.3         25%      0.1    0.1
           Intrusion, unauthorized use, data loss                   5%       5%        0.5         0.3         25%      0.1    0.1
           Total (Time % must sum to 100%)                        100%     100%      10.94        6.31         18%     1.99   1.15
      System UI Navigation
           User Interface navigation                               75%      75%        3.8         2.5         18%      0.7    0.4
           Change system settings, preferences                     25%      25%        1.3         0.8         18%      0.2    0.1
           Total (Time % must sum to 100%)                        100%     100%       5.05        3.37         18%     0.88   0.59
      Availability & Reliability
           Recovering from crashes/conflicts                       70%      70%        2.4         1.8         35%      0.8    0.6
           Rework due to lost work                                 30%      30%        1.0         0.8         35%      0.4    0.3
           Total (Time % must sum to 100%)                        100%     100%       3.37        2.53         35%     1.18   0.88
      Total (Hours per Week)                                                          1.40        0.70         21%     0.29   0.15

   Non-Computing-Related Activities                                                  15.08       22.80          0%     0.00   0.00

   Total                                                                              35.1        35.1          1%      0.5    0.4



Summary of Productivity Improvements (Time Saved)
    The table below summarizes time saved by business activity category.


083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                                         Productivity                                                  26 of 44
User Productivity Benefits Assessment
    The table below summarizes time saved by business activity category.

                                                                                   Info Workers                                        Task Workers                              Total (Weighted Average)
                                                                                                                %                                    %                                                 %
                                                                       As-Is       To-Be         Saved        Savings      As-Is       To-Be Saved Savings                     As-Is To-Be Saved Savings
      Individual Computing
           Document Creation                                                2.8          2.8           0.04        1%            2.9       2.9        0.04              1%           2.9    2.8     0.0               1%
           Data & Information Access/Analysis                               1.1          1.1           0.07        6%            0.5       0.5        0.03              6%           0.8    0.7     0.0               6%
           Email, Calendar, Contact, & Task Mgmt                            2.7          2.7           0.00        0%            0.8       0.8        0.00              0%           1.7    1.7     0.0               0%
           LOB Application-Related Activities                               3.5          3.4           0.07        2%            5.5       5.3        0.22              4%           4.6    4.4     0.2               3%
           Other                                                            1.1          1.1           0.00        0%            0.7       0.7        0.00              0%           0.9    0.9     0.0               0%
           Total                                                           11.2         11.0           0.18        2%           10.5      10.2        0.29              3%          10.8   10.6    0.24               2%
      Collaborative Computing
           Document Collaboration                                            4.4         4.4           0.00        0%            0.5       0.5        0.00              0%           2.2    2.2     0.0               0%
           Workflow (routing)                                                1.1         1.1           0.00        0%            0.3       0.3        0.00              0%           0.7    0.7     0.0               0%
           Coordination / Project Mgmt                                       1.2         1.2           0.00        0%            0.2       0.2        0.00              0%           0.6    0.6     0.0               0%
           Other                                                             0.7         0.7           0.00        0%            0.1       0.1        0.00              0%           0.4    0.4     0.0               0%
           Total                                                             7.4         7.4           0.00        0%            1.1       1.1        0.00              0%           3.9    3.9    0.00               0%
      PC Systems Management
           Support, Self-Help, & Learning                                   0.5          0.4           0.07       14%            0.3       0.2        0.04            14%            0.4    0.3     0.1           14%
           Performance                                                      0.4          0.2           0.13       38%            0.2       0.1        0.07            38%            0.3    0.2     0.1           38%
           Mobility & Remote Connectivity                                   0.2          0.2           0.03       11%            0.0       0.0        0.00            11%            0.1    0.1     0.0           11%
           Security & Privacy                                               0.2          0.1           0.03       18%            0.1       0.1        0.02            18%            0.1    0.1     0.0           18%
           System UI Navigation                                             0.1          0.1           0.01       18%            0.1       0.0        0.01            18%            0.1    0.1     0.0           18%
           Availability & Reliability                                       0.1          0.0           0.02       35%            0.0       0.0        0.01            35%            0.0    0.0     0.0           35%
           Total                                                            1.4          1.1           0.29       21%            0.7       0.5        0.15            22%            1.0    0.8    0.22           21%
      Non-Computing-Related Activities                                     15.1         15.1              0        0%           22.8      22.8           0             0%           19.4   19.4     0.0            0%
      Total                                                                35.1         34.6            0.5      1.4%           35.1      34.6         0.4           1.3%           35.1   34.6     0.5          1.3%

      Summary
           Individual Computing                                            11.2         11.0           0.18        2%           10.5      10.2        0.29             3%           10.8   10.6         0.2        2%
           Collaborative Computing                                          7.4          7.4           0.00        0%            1.1       1.1        0.00             0%            3.9    3.9         0.0        0%
           PC Systems Management                                            1.4          1.1           0.29       21%            0.7       0.5        0.15            22%            1.0    0.8         0.2       21%
           Non-Computing-Related Activities                                15.1         15.1           0.00        0%           22.8      22.8        0.00             0%           19.4   19.4         0.0        0%
           Total                                                           35.1         34.6            0.5      1.4%           35.1      34.6         0.4           1.3%           35.1   34.6         0.5      1.3%


                                           Summary                                                                                       Individual Computing
                                                         Time (Hours / Week)                                                                                          Time (Hours / Week)
                                           0         5        10     15    20      25                                                                      0         1      2      3     4         5

                                                     10.8                                                                       Document Creation                       2.9
                  Individual Computing                                                                                                                                  2.8
                                                     10.6

                                                                                               As-Is            Data & Information Access/Analysis             0.8
                                               3.9                                                                                                             0.7                                            As-Is
               Collaborative Computing
                                               3.9                                             To-Be                                                                                                          To-Be
                                                                                                                   Email, Calendar, Contact, & Task               1.7
                                                                                                                                Mgmt                              1.7
               PC Systems Management           1.0
                                               0.8                                                                                                                             4.6
                                                                                                                 LOB Application-Related Activities                            4.4
       Non-Computing-Related Activities                     19.4
                                                            19.4                                                                                 Other         0.9
                                                                                                                                                               0.9




                          Collaborative Computing                                                                                    PC Systems Management
                                                     Time (Hours / Week)                                                                                           Time (Hours / Week)
                                     0           1        1        2     2          3                                                                0.0          0.1      0.2      0.3           0.4

                                                            2.2                                                  Support, Self-Help, & Learning                               0.4
           Document Collaboration                                                                                                                                          0.3
                                                            2.2
                                                                                                                                   Performance                       0.3
                                                                                                                                                               0.2                                            As-Is
                                           0.7                                                 As-Is
                Workflow (routing)                                                                                                                          0.1
                                           0.7                                                 To-Be           Mobility & Remote Connectivity              0.1                                                To-Be

                                                                                                                              Security & Privacy            0.1
       Coordination / Project Mgmt         0.6                                                                                                             0.1
                                           0.6
                                                                                                                          System UI Navigation           0.1
                                                                                                                                                         0.1
                            Other        0.4
                                         0.4                                                                            Availability & Reliability       0.0
                                                                                                                                                         0.0




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                                                       Productivity                                                                                                   27 of 44
User Productivity Benefits Assessment
Business Value of Time Saved
    The table below calculates the value of time saved. Annual value is calculated by multiplying the hours saved per year times fully burdened hourly rate. The adjusted
    value is discounted by the "Productivity Conversion Factor". The adjusted value is the productivity benefit value used elsew here in the workbook.


            Productivity Conversion Factor* (0%-100%)                         50%
              *Not all saved time will necessarily be used to conduct other value-adding activities. For example, if an employee completes assigned work more quickly and
              simply goes home earlier, no added business value will result. However, organizations typically do find ways to convert most time saved into real business value
              (even without laying off employees). For example: avoid hiring as the organization grows; redistributing work; re -deploying employees; conducting other activities;
                                                                                                                                          s
              or simply filling in the saved time with more work that wouldn't otherwise get done. The "Productivity Conversion Factor" di counts the value of the time saved to
                                                                                                                                           t
              account for inefficiencies/delays in converting the time saved into real business value. Since estimating time savings canno easily be done accurately, it is also
              used to provide more conservative $ values. A 100% Productivity Converstion Factor applies no discount.

                                                                                     Value per User per Year
                                                                                         Task    Weighted     *Total    Adjusted
                                                                        Info Wrkr        Wrkr        Avg     Adjusted   (Per PC)
       Individual Computing                                                                                                                                                           Business Value of
            Document Creation
            Data & Information Access/Analysis
                                                                        $
                                                                        $
                                                                              110
                                                                              189
                                                                                       $ 74 $
                                                                                       $ 66 $
                                                                                                      90
                                                                                                     121
                                                                                                             $
                                                                                                             $
                                                                                                                  45
                                                                                                                  60
                                                                                                                        $
                                                                                                                        $
                                                                                                                              45
                                                                                                                              60
                                                                                                                                                                                    Productivity Benefits
            Email, Calendar, Contact, & Task Mgmt                       $       -      $   - $          -    $      -   $       -                                            $600
            LOB Application-Related Activities                          $     186      $ 460 $       338     $   169    $    169
                                                                                                                                                                                                     PC Systems




                                                                                                                                       Annual Productivity Benefits ($/PC)
            Other                                                       $       -      $   - $          -    $      -   $       -
                                                                                                                                                                             $500                    Management
            Total                                                       $     484      $ 600 $       549     $   274    $    274
       Collaborative Computing
                                                                                                                                                                             $400          $265
            Document Collaboration                                      $        -     $     -   $       -   $      -   $          -
            Workflow (routing)                                          $        -     $     -   $       -   $      -   $          -
                                                                                                                                                                                                     Collaborative
            Coordination / Project Mgmt                                 $        -     $     -   $       -   $      -   $          -                                         $300
                                                                                                                                                                                            $-       Computing
            Other                                                       $        -     $     -   $       -   $      -   $          -
            Total                                                       $        -     $     -   $       -   $      -   $          -                                         $200
       PC Systems Management
            Support, Self-Help, & Learning                              $     181      $ 81 $ 125            $    63    $     63                                                           $274
                                                                                                                                                                             $100                    Individual
            Performance                                                 $     356      $ 140 $ 236           $   118    $    118                                                                     Computing
            Mobility & Remote Connectivity                              $      70      $ 10 $     36         $    18    $     18
            Security & Privacy                                          $      89      $ 40 $     62         $    31    $     31                                               $-
            System UI Navigation                                        $      39      $ 21 $     29         $    14    $     14
            Availability & Reliability                                  $      52      $ 31 $     41         $    20    $     20
            Total                                                       $     787      $ 323 $ 529           $   265    $    265
       Non-Computing-Related Activities                                 $        -     $   - $      -        $      -   $       -
       Total                                                            $   1,271      $ 923 $ 1,078         $   539    $    539

       Summary
            Individual Computing                                        $     484      $ 600 $ 549           $   274    $    274
            Collaborative Computing                                     $       -      $   - $      -        $      -   $       -
            PC Systems Management                                       $     787      $ 323 $ 529           $   265    $    265
            Non-Computing-Related Activities                            $       -      $   - $      -        $      -   $       -
            Total                                                       $   1,271      $ 923 $ 1,078         $   539    $    539

   © Copyright, 2006-2008, Hall Consulting & Research LLC, All Rights Reserved. www.hallcr.com




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                                                        Productivity                                                                                                        28 of 44
083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx   Productivity   29 of 44
083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx   Productivity   30 of 44
083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx   Productivity   31 of 44
083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx   Productivity   32 of 44
083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx   Productivity   33 of 44
Revenue Increase Enabled by the Solution
  This worksheet estimates incremental revenue enabled by the solution. Not all projects will have credibly quantifiable revenue impacts. Revenue impa cts can be difficult to accurately
  assess. Research, analysis, and supplemental modeling is likely needed to credibly estimate true revenue impacts. One key i s to target (at a detailed level) precisely what portion of
  revenue is likely to be impacted (the segment) and how the solution is enabling the revenue increase (the driver). This mode l assumes the initiative will enable a one -time revenue
  increase (the same annual revenue benefit throughout the life of the solution).
  Note that the benefit is the marginal profit on the incremental revenue, not the revenue itself. We recommend using net oper ating profit, not gross margin: in the long run, on average,
  fixed costs tend to increase at the same rate as revenue growth.


                                                         Segment Revenue                                                                   Revenue Increase Driver %




                                                                                                                                                                                                          Availability (fill rate, up-
                                                                                                                                                                Channels/Geographie
                                                                                                                      Improved Marketing


                                                                                                                                            Improved Customer




                                                                                                                                                                                      Products/Services
                                                                                                                                                                                                          Improved Product
                                                                                                                                                                                      New/Enhanced
                                                                                                     Improved Sales




                                                                                                                                                                New/Expanded
                                                                                                     Effectiveness


                                                                                                                      Effectiveness
                                                                                         Profit
     Addressed Segments (products,                  Revenue                              Margin




                                                                                                                                            Service
     channels, geographies, business                 (% of                               (% of                                                                                                                                                         Annual




                                                                                                                                                                                                                                           Other
                                                                                                                                                                                                          time)
          unit, and/or markets)                      Total)       Revenue ($000)         Sales)                                                                                                                                                     Benefit ($000)     Comments




                                                                                                                                                                s
   Segment A1                                             3.0%   $          117,744          10.3%      1.5%               0.0%                 0.5%                     0.0%             0.0%                           0.0%              0.0%     $         243
   Segment A2                                             3.0%   $          117,744          10.3%      1.5%               0.0%                 0.5%                     0.0%             0.0%                           0.0%              0.0%     $         243
   Segment A3                                             3.0%   $          117,744          10.3%      1.5%               0.0%                 0.5%                     0.0%             0.0%                           0.0%              0.0%     $         243
   Segment A4                                             2.0%   $           78,496          10.3%      1.5%               0.0%                 0.5%                     0.0%             0.0%                           0.0%              0.0%     $         162
   Segment B1                                             2.0%   $           78,496          10.3%      1.5%               0.0%                 0.5%                     0.0%             0.0%                           0.0%              0.0%     $         162
   Segment B2                                             2.0%   $           78,496          10.3%      1.5%               0.0%                 0.5%                     0.0%             0.0%                           0.0%              0.0%     $         162
   Segment B3                                             2.0%   $           78,496          10.3%      1.5%               0.0%                 0.5%                     0.0%             0.0%                           0.0%              0.0%     $         162
   Segment B4                                             1.0%   $           39,248          10.3%      1.5%               0.0%                 0.5%                     0.0%             0.0%                           0.0%              0.0%     $          81
   Segment C1                                             1.0%   $           39,248          10.3%      1.5%               0.0%                 0.5%                     0.0%             0.0%                           0.0%              0.0%     $          81
   Segment C2                                             1.0%   $           39,248          10.3%      1.5%               0.0%                 0.5%                     0.0%             0.0%                           0.0%              0.0%     $          81
   Segment C3                                             1.0%   $           39,248          10.3%      1.5%               0.0%                 0.5%                     0.0%             0.0%                           0.0%              0.0%     $          81
   Segment C4                                             1.0%   $           39,248          10.3%      1.5%               0.0%                 0.5%                     0.0%             0.0%                           0.0%              0.0%     $          81
   All Other (Not Impacted)                             78.0%    $        3,061,348           0.0%      0.0%               0.0%                 0.0%                     0.0%             0.0%                           0.0%              0.0%     $            -
   Total                                                 100%    $        3,924,805           2.3%                                                                                                                                                  $       1,784

Summary
  The table and graph below summarize the annual revenue gain and margin on the revenue gain (the benefit).
                                                                                                                                                                  Benefit
                                                                 Revenue ($000)                  Margin ($000)                                                  ($ per PC)
   Improved Sales Effectiveness                                  $       12,952          $                  1,338 $                                                                        268
                                                                                                                                                                                                                                                   Revenue Growth (Margin)
   Improved Marketing Effectiveness                              $             -         $                       - $                                                                          -                                            $400                        Improved Sales
   Improved Customer Service                                     $        4,317          $                    446 $                                                                         89                                                                         Effectiveness
                                                                                                                                                                                                                                                              $-
   New/Expanded Channels/Geographies                             $                   -   $                                           -      $                                                       -
                                                                                                                                                                                                                   Annual Benefit per PC                     $89
                                                                                                                                                                                                                                                                       Improved Marketing
   New/Enhanced Products/Services                                $                   -   $                                           -      $                                                       -                                      $300                        Effectiveness
   Improved Product Availability (fill rate, up-time)            $                   -   $                                           -      $                                                       -                                                         $-
                                                                                                                                                                                                                                                                       Improved Customer
   Other                                                         $                  -    $                                - $                                                              -                                                                           Service
                                                                                                                                                                                                                                           $200
   Total (Annual)                                                $            17,269     $                            1,784 $                                                           357                                                                            New/Expanded
   Total (3-Year)                                                $            51,807     $                            5,351 $                                                         1,070                                                                            Channels/Geographies
                                                                                                                                                                                                                                                             $268
                                                                                                                                                                                                                                           $100                        New/Enhanced
                                                                                                                                                                                                                                                                       Products/Services

                                                                                                                                                                                                                                                                       Improved Product
                                                                                                                                                                                                                                                                       Availability (fill rate, up-
                                                                                                                                                                                                                                               $0
                                                                                                                                                                                                                                                                       time)
                                                                                                                                                                                                                                                           Benefit
                                                                                                                                                                                                                                                          ($ per PC)


   © Copyright, 2006-2008, Hall Consulting & Research LLC, All Rights Reserved. www.hallcr.com




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                                                                                                                                             Revenue                                                                                                         34 of 44
Key Performance Indicator (KPI) Assessment (Optional)
   Not all benefits can credibly be translated into financial ($) benefit terms. These are sometimes referred to as intangible benefits. This worksheet provides a structure (one of
   many) to estimate how the initiative may impact non-financial KPIs.

   The percentiles shown are how the organization's KPI performance compares to others in the industry. 0% represents worst performance in the industry (laggard); 50% is average
   performance; 100% is best in the industry (world class performance). For example, being at the 20th percentile implies that 80% of the other organizations in the industry perform
   better. The "Improvement" indicates how much the organization is expected to improve KPI performance due to the solution. The model assumes a linear relationship between
   KPI performance and industry percentile -- a simplifying assumption.

   Select "Business Objectives" and KPIs that are important to your business and are expected to be significantly impacted by the solution. Estimate "Laggard" and "World Class" KPI
   values in your industry. Next determine what percentile your organization is currently performing at (the as-is KPI value is calculated). Next determine to what percentile you
   expect the initiative will take you to. The to-be KPI value (and % improvement) are calculated.

                                                                                             Industry KPI                Organization Performance
                                                                                                Values              Percentile           KPI Value
                                                                                                     World                                       Improve-
        Business Objective                             KPI / Metric                        Laggard Class           As-Is To-Be As-Is To-Be ment %                Comments
Sales/Marketing Performance
   Customer Acquisition             Close rate (% of qualified sales opportunities)            15%       19%        30%     30%     16%    16%        0%
   Customer Retention               Customer annual turnover (%)                               12%       10%        30%     30%     11%    11%        0%
                                    % of customers that are highly satisfied when
   Customer Satisfaction                                                                       30%       95%        40%     40%     56%    56%        0%
                                    surveyed
   Sales-based document
                                    Time to respond to RFP (days)                             10.0           5.0    30%     30%      8.5    8.5       0%
   collaboration Efficiency
Business Management Effectiveness
   Decision-Making Speed /          Days to accumulate information, analyze,
   Reaction Time to Market          collaborate, decide, plan (for information-intensive      10.0           5.0    30%     30%      8.5    8.5       0%
   Event/Opportunity                decisions)
                                    % of analytical data easily accessible to authorized
   Business Visibility                                                                         15%       75%        30%     30%     33%    33%        0%
                                    decision-makers
                                    % of org. with auto-updated KPIs linked to
   Business Alignment                                                                          15%       75%        30%     30%     33%    33%        0%
                                    corporate objectives

   Decision-Making Effectiveness Decision success rate %                                       65%       75%        30%     30%     68%    68%        0%

   Information Availability       % of desired information readily available                   30%       60%        30%     30%     39%    39%        0%
                                  % of analytical data with single trusted access
   Information Quality                                                                         30%       75%        30%     30%     44%    44%        0%
                                  point
   Mergers & Acquisition Analysis Months to complete analysis, workflows, due
                                                                                                5.0          3.0    50%     50%      4.0    4.0       0%
   Speed                          diligence, regulatory approvals, legal docs, etc.
Supply/Operations Performance
                                    Customer preference vs. competitive products %
   Quality of Products/Services                                                                30%       70%        30%     30%     42%    42%        0%
                                    (e.g. blind taste test)
                                    # of process/product/service defects/errors per
   Defect rate                                                                                45.0           2.0    50%     50%     23.5   23.5       0%
                                    1000
   Forecast Accuracy                Avg forecast error %                                      25%        13%        30%     30%     21%    21%        0%
   Supply Chain Effectiveness       On-time delivery                                          90%        95%        30%     30%     91%    91%        0%
   Cash Cycle Time                  Days                                                      30.0       24.0       30%     30%     28.2   28.2       0%
   Project management               % of document-intensive projects that complete on-
                                                                                               50%       70%        30%     30%     56%    56%        0%
   effectiveness                    time / on-budget
Technology Effectiveness
                                    % of electronic content (shared documents,
   Records Compliance
                                    reports, web content, email) that is controlled            30%       99%        30%     50%     51%    65%       27%
   (centralized content control)
                                    (retention, security, reuse, storage) centrally
   Service Level Agreement
                                    SLA achievement %                                          10%       90%        40%     70%     42%    66%       57%
   Performance
   Maturity Level                   Best practice adoption %                                   10%       90%        40%     70%     42%    66%       57%
                                    Average system (local/LAN/WAN) response delay
   System response time                                                                         3.0          0.2    50%     80%      1.6    0.8      53%
                                    (Seconds)
                                    Time (days) to deliver applications; time to start
   Application delivery agility                                                              120.0       35.0       50%     80%     77.5   52.0      33%
                                    delivery
   User computing experience
                                    % of users that are highly satisfied when surveyed         30%       95%        40%     60%     56%    69%       23%
   satisfaction
   Security                         # of vulnerabilities (reduce attack surface)              50.0       20.0       40%     70%     38.0   29.0      24%




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                                                             KPIs                                                                             35 of 44
Key Performance Indicator (KPI) Assessment (Optional)
Summary
   The category as-is, to-be, and improvement average percentiles are summarized below. Note: the improvement (Imp.) is not the KPI value % improvement, it shows the percentile
   point improvement.
                                                                                                                                           Percentile
                                                                                                                                      As-Is To-Be Imp.
   Sales/Marketing Performance                                                                                                         33%     33%     0%
   Business Management Effectiveness                                                                                                   33%     33%     0%
   Supply/Operations Performance                                                                                                       33%     33%     0%
   Technology Effectiveness                                                                                                            41%     69%    27%
   Average                                                                                                                             35%     42%     7%

                                                                                                                                                        As-Is
                                                                                   KPI Performance Comparison
                                           World                                                                                                        To-Be
                                                 100%
                                           Class
                                                                          90%
                                                                          80%
                                                 Performance Percentile



                                                                                                                                                69%
                                                                          70%
                                                                          60%
                                                                          50%                                                             41%
                                                                          40%      33%   33%        33%   33%         33%    33%
                                                                          30%
                                                                          20%
                                                                          10%
                                           Laggard                        0%
                                                                                Sales/Marketing     Business      Supply/Operations      Technology
                                                                                 Performance      Management        Performance         Effectiveness
                                                                                                  Effectiveness


   © Copyright, 2006-2008, Hall Consulting & Research LLC, All Rights Reserved. www.hallcr.com




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                                                                             KPIs                                                 36 of 44
; 50% is average




World Class" KPI




                   083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx   KPIs   37 of 44
ows the percentile




                     083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx   KPIs   38 of 44
Financial Analysis
   This model simulates the costs and benefits of the initiative. The tables and charts below summarize the tool results.

Summary of Results
   The tables and graphs summarize the costs and benefits and calculates ROI, NPV, IRR, and payback period. The results are shown average per PC
   and the total for the organization.

                                                                                        Organization Total                                                                     Total Costs Vs Benefits
                                                                         Per PC              ($000)                                                                       $6,000




                                                                                                                                           Costs & Benefits ($/PC)
        Costs (3-Yr)                                                 $      1,743   $                 8,716
        Benefits (3-Yr)                                              $      5,339   $                26,697                                                               $5,000
        Net Benefits                                                 $      3,596   $                17,982                                                               $4,000
        NPV (Net Present Value)                                      $      2,782   $                13,908
        ROI (Return on Investment) - [Total Net                                                                                                                           $3,000
                                                                                        206%                                                                                                                $5,339
        Benefits / Total Costs]                                                                                                                                           $2,000
        IRR (Internal Rate of Return)                                                    124%
        Payback Period                                                                 9 Months                                                                           $1,000       $1,743
        Number of PCs                                                                    5000                                                                                  $0
                                                                                                                                                                                     Costs (3-Yr)     Benefits (3-Yr)


                                                                         Costs & Benefits ($ per PC)                                    Costs & Benefits ($000)
                                                                                 Annual On-      3-Year                                       Annual On-
                                                                      One-Time     Going          Total                           One-Time      Going      3-Year Total
        Costs                                                        $    1,242 $        167 $ 1,743                             $     6,210 $       835 $       8,716
        Benefits                                                     $       75 $     1,755 $ 5,339                              $       376 $     8,774 $      26,697


                                                   Initiative Cost Summary                                                              Initiative Benefit Summary
                                                            (per PC)                                                                               (per PC)
                                          $2,000                                                                                $6,000
                                          $1,800                            End-User Labor &                                                                                            Revenue Growth
                                                                            Training                                            $5,000
                                          $1,600         $343                                                                                                          $1,070
                                                                                                          Benefits ($ per PC)



                                          $1,400
                       Costs ($ per PC)




                                                                            IT Labor, Services, &                               $4,000                                                  User Productivity
                                          $1,200         $268
                                                                            Training                                                                                   $1,616           Benefits
                                          $1,000         $253                                                                   $3,000
                                           $800                                                                                                                         $400
                                                                            Software                                            $2,000                                                  Other Direct Cost
                                           $600
                                                                                                                                                                                        Savings
                                           $400          $879
                                                                                                                                $1,000                                 $2,253
                                           $200
                                                                            Hardware                                                                                                    IT Labor/Services TCO
                                             $-                                                                                    $-                                                   Savings
                                                      3-Year Total                                                                                                   3-Year Total




Cost Summary
   Below are the initial design/development/deployment and added annual on-going costs required to fully deploy, adopt and support the initiative.
   Additional details can be found below and on the "Cost" worksheet.

                                                                          Costs ($ per PC)                                                                            Costs ($000)
                                                                             Annual On-    3-Year                                                                      Annual On-
                                                                  One-Time     Going        Total                                 One-Time                               Going       3-Year Total
        Hardware                                                 $      606 $         91 $     879                               $     3,030                           $      455    $     4,394
        Software                                                 $      150 $         34 $     253                               $       748                           $      172    $     1,265
        IT Labor, Services, & Training                           $      213 $         18 $     268                               $     1,067                           $       91    $     1,340
        End-User Labor & Training                                $      273 $         24 $     343                               $     1,364                           $      118    $     1,717
                                                           Total $    1,242 $        167 $ 1,743                                 $     6,210                           $      835    $     8,716




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                                                           ROI                                                                                                                 39 of 44
Financial Analysis
Benefits Summary
 This model simulates the costs and benefits of the initiative.                            The tables and charts below summarize the tool results.

   Below are the benefits enabled by the initiative. The detailed calculations are below and on the green benefit tabs.


                                                          Benefits ($ per PC)                                                            Benefits ($000)
                                                              Annual On-      3-Year                                                       Annual On-
   Benefit Summary                                 One-Time      Going         Total                                            One-Time     Going      3-Year Total
        IT Labor/Services TCO Savings             $        - $         751 $ 2,253                                             $       -   $    3,755 $      11,264
        Other Direct Cost Savings                 $       75 $         108 $      400                                          $      376 $        542 $      2,001
        User Productivity Benefits                $        - $         539 $ 1,616                                             $       -   $    2,694 $       8,082
        Revenue Growth                            $        - $         357 $ 1,070                                             $       -   $    1,784 $       5,351
                                            Total $       75 $       1,755 $ 5,339                                             $      376 $     8,774 $      26,697

   Benefit Sub-Categories
     IT Labor/Services TCO Savings                 $                           -            $         751    $        2,253    $          -    $     3,755      $     11,264
     Other Direct Cost Savings
        IT Savings                                 $                   75                   $          94    $         356     $         376 $         468      $      1,781
        Business Savings                           $                    -                   $          15    $          44     $          -  $          73      $        220
        Total                                      $                   75                   $         108    $         400     $         376 $         542      $      2,001
     User Productivity Benefits
        Individual Computing                       $                    -                   $        274     $          823    $          -    $     1,372      $      4,115
        Collaborative Computing                    $                    -                   $         -      $           -     $          -    $        -       $         -
        PC Systems Management                      $                    -                   $        265     $          794    $          -    $     1,323      $      3,968
        Total                                      $                    -                   $        539     $        1,616    $          -    $     2,694      $      8,082
     Revenue Growth                                $                    -                   $        357     $        1,070    $          -    $     1,784      $      5,351
     Total                                         $                   75                   $      1,755     $        5,339    $         376   $     8,774      $     26,697



Cash Flow
   Shown below are the costs and benefits by year, the net benefits (benefits -costs), and the cumulative cash flow. This is used to calculate payback
   period, IRR, and NPV.

                                                       Initial                                  Year 1           Year 2            Year 3          Year 4           Year 5        Total         NPV
        Costs                                      $       1,242                            $        167     $       167       $        167    $            -   $            -$     1,743   $    1,657
        Benefits                                   $           75                           $      1,755     $     1,755       $      1,755    $            -   $            -$     5,339   $    4,439
        Net Benefits                               $      (1,167)                           $      1,588     $     1,588       $      1,588    $         -      $           - $     3,596   $    2,782
        Cumulative Cash Flow                       $      (1,167)                           $        421     $     2,009       $      3,596    $     3,596      $      3,596
        Payback Period (Months)                                  9

                                                                                                       Cumulative Cash Flow
                                                                                            $4,000
                                                             Cumulative Cash Flow ($/PC)




                                                                                            $3,000
                                                                                            $2,000
                                                                                            $1,000
                                                                                                 $0
                                                                                            -$1,000
                                                                                            -$2,000
                                                                                                        0         1       2          3   4     5
                                                                                                                              Year




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                                                                   ROI                                                                                  40 of 44
Financial Analysis
      Details
Cost model simulates the costs and benefits of the initiative.
 This                                                                                 The tables and charts below summarize the tool results.

   The table/chart below provide additional cost details.
                                                                                  Costs ($ per PC)                              Costs ($000)
                                                                                     Annual On-            3-Year                Annual On-
                Cost / Benefit Category                                   One-Time     Going                Total      One-Time    Going     3-Year Total
     Hardware
        Client Hardware                                                $        600    $        90     $       870     $    3,000 $      450   $   4,350
        Server Hardware                                                $          6    $         1     $         9     $       30 $        5   $      44
                                                                 Total $        606    $        91     $       879     $    3,030 $      455   $   4,394
     Software
        Client Software                                                $        143    $        33     $       242     $       715 $     164   $   1,208
        Server Software                                                $          7    $         2     $        11     $        33 $       8   $      56
                                                                 Total $        150    $        34     $       253     $       748 $     172   $   1,265
     IT Labor, Services, & Training
        One-time Implementation Labor/Services                            $     151    $         -     $       151     $      753   $     -    $     753
        Annual On-Going Labor/Services                                    $       -    $        18     $        55     $       -    $     91   $     273
        Incremental Help Desk Calls                                       $      11    $         -     $        11     $       54   $     -    $      54
        IT Training                                                       $      52    $         -     $        52     $      261   $     -    $     261
                                           Total                          $     213    $        18     $       268     $    1,067   $     91   $   1,340
     End-User Labor & Training
        End-User Labor                                                 $         60    $        24     $       130     $      299 $      118   $     652
        End-User Training                                              $        213    $         -     $       213     $    1,066 $       -    $   1,066
                                                                 Total $        273    $        24     $       343     $    1,364 $      118   $   1,717

        Total Costs                                                       $   1,242    $      167      $     1,743     $    6,210 $      835   $   8,716


                                                                    Total Implementation Costs
                                                                              (Per PC)
                                                                 $2,000
                                                                                                     End-User Training
                                                                 $1,800
                                                                                                     End-User Labor
                                                                 $1,600          $213
                                        Total Costs ($ per PC)




                                                                                 $130                IT Training
                                                                 $1,400          $52
                                                                                 $11
                                                                                 $55                 Incremental Help Desk Calls
                                                                 $1,200          $151
                                                                                 $11
                                                                                                     Annual On-Going
                                                                 $1,000          $242
                                                                                                     Labor/Services
                                                                                  $9                 One-time Implementation
                                                                  $800
                                                                                                     Labor/Services
                                                                  $600                               Server Software

                                                                  $400           $870                Client Software

                                                                  $200                               Server Hardware
                                                                    $0                               Client Hardware
                                                                              3-Year Total




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                                                             ROI                                                   41 of 44
Financial Analysis
Benefit Details the costs and benefits of the initiative.
 This model simulates                                                                       The tables and charts below summarize the tool results.

   The tables/charts below provide additional details regarding each of the four quantified benefit types.

   IT Labor/Services TCO Savings
                                                                                Benefits ($ per PC)                                                                   Benefits ($000)
                                                                                    Annual On-      3-Year                                                              Annual On-
                                                                         One-Time      Going         Total                                          One-Time              Going      3-Year Total
        PC Management Services                                          $       -  $         233 $      699                                        $       -            $    1,164 $       3,493
        Help Desk (Tech Support)                                        $       -  $         146 $      437                                        $       -            $       728 $      2,185
        Server & Network Mgmt Services                                  $       -  $         173 $      520                                        $       -            $       867 $      2,602
        Application Development                                         $       -  $         128 $      383                                        $       -            $       638 $      1,915
        Administration & Other                                          $       -  $          71 $      214                                        $       -            $       356 $      1,069
                                                                  Total $       -  $         751 $ 2,253                                           $       -            $    3,755 $      11,264


                                         IT Labor TCO Comparison                                                                                       IT Labor Comparison
                                $4,000
                                                                                                                                 As-Is TCO                 To-Be TCO                    As-Is FTEs            To-Be FTEs
                                                                                                                                                                                                   47.3
                                $3,500                                                                                 $1,400                                                                                                    50
                                                                  Administration & Other
                                            $559                                                                                                                                                                                 45
                                                                                                                       $1,200
                                $3,000




                                                                                                                                                                                                                                      FTEs (Full Time Equivalents)
                                                                                                                                                                                                                                 40
                                                                                                                                                                              33.2                 42.6
          TCO per PC per Year




                                $2,500                  $488
                                                                  Application                    TCO per PC per Year   $1,000                                                                                                    35
                                           $1,144                 Development                                                          26.8
                                                                                                                                                          25.2                                                      25.2         30
                                                                                                                        $800
                                $2,000                                                                                                                                                                                           25
                                                        $1,016    Server & Network                                                                                            27.1
                                                                                                                        $600
                                                                  Mgmt Services                                                                                                                                                  20
                                $1,500                                                                                                                                                                              22.4
                                            $774
                                                                                                                        $400           19.5               18.5                                                                   15

                                $1,000                            Help Desk (Tech                                                                                                                                                10
                                                        $601
                                            $396                  Support)                                              $200
                                                                                                                                                                                                                                 5
                                 $500                   $251                                                                         $625 $392          $396 $251           $774 $601               $1,016
                                                                                                                                                                                               $1,144           $559 $488
                                            $625                                                                           $-                                                                                                    0
                                                        $392      PC Management
                                                                                                                                PC Management      Help Desk (Tech      Server & Network        Application   Administration &
                                    $-                            Services                                                         Services            Support)          Mgmt Services         Development        Other
                                          As-Is TCO   To-Be TCO




   Other Direct Cost Savings
                                                                                   Benefits ($ per PC)                                                      Benefits ($000)
                                                                                       Annual On-      3-Year                                                 Annual On-
                                                                            One-Time      Going         Total                                      One-Time     Going      3-Year Total
     IT Savings
        Software - Clients                                              $             60     $                             41    $        183      $             300    $        205       $         915
        Software - Servers                                              $               8    $                              1    $         12      $              40    $          6       $          58
        Hardware                                                        $               7    $                              1    $         10      $              36    $          5       $          52
        IT Services                                                     $              -     $                              5    $         14      $              -     $         24       $          72
        Power/Electricity Usage                                         $              -     $                             45    $        134      $              -     $        224       $         672
        Other IT Costs                                                  $              -     $                              1    $          2      $              -     $          4       $          12
                                                                  Total $             75     $                             94    $        356      $             376    $        468       $       1,781
     Business Savings
        Travel Expenses                                                 $              -     $                             15    $            44   $              -     $            73    $          220
        Business Services                                               $              -     $                              -    $            -    $              -     $            -     $           -
        Other Business Expenses                                         $              -     $                              -    $            -    $              -     $            -     $           -
                                                                  Total $              -     $                             15    $            44   $              -     $            73    $          220

        Total Other Direct Cost Savings                                   $           75     $                            108    $        400      $             376 $           542       $       2,001




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                                                                                       ROI                                                                                                                                  42 of 44
Financial Analysis
   This model simulates the costs and benefits of the initiative. The tables and charts below summarize the tool results.
                                                                                 Direct Cost Savings
                                                                       $450

                                                                       $400                  $-                      Other Business Expenses
                                                                                            $44
                                                                       $350                 $2                       Business Services




                                                  Benefit ($ per PC)
                                                                       $300                                          Travel Expenses
                                                                                            $134
                                                                       $250                                          Other IT Costs

                                                                                            $14                      Power/Electricity Usage
                                                                       $200                 $10
                                                                                            $12

                                                                       $150                                          IT Services

                                                                       $100                                          Hardware
                                                                                            $183

                                                                           $50                                       Software - Servers

                                                                                                                     Software - Clients
                                                                           $-
                                                                                      3-Year Total


   User Productivity Benefits
                                                                              Benefits ($ per PC)                                      Benefits ($000)
                                                                                  Annual On-      3-Year                                 Annual On-
                                                                       One-Time      Going         Total                      One-Time     Going      3-Year Total
     Individual Computing
        Document Creation                                                               $           45       $        135    $                                                -    $     225        $     674
        Data & Information Access/Analysis                                              $           60       $        181    $                                                -    $     302        $     906
        Email, Calendar, Contact, & Task Mgmt                                           $            -       $         -     $                                                -    $      -         $      -
        LOB Application-Related Activities                                              $          169       $        507    $                                                -    $     845        $   2,535
        Other                                                                           $            -       $         -     $                                                -    $      -         $      -
                                           Total $                                -     $          274       $        823    $                                                -    $   1,372        $   4,115
     Collaborative Computing
        Document Collaboration                                                          $               -    $          -    $                                                -    $      -         $      -
        Workflow (routing)                                                              $               -    $          -    $                                                -    $      -         $      -
        Coordination / Project Mgmt                                                     $               -    $          -    $                                                -    $      -         $      -
        Other                                                                           $               -    $          -    $                                                -    $      -         $      -
                                                  Total $                         -     $               -    $          -    $                                                -    $      -         $      -
     PC Systems Management
        Support, Self-Help, & Learning                                                  $           63       $        188    $                                                -    $     314        $     941
        Performance                                                                     $          118       $        354    $                                                -    $     590        $   1,770
        Mobility & Remote Connectivity                                                  $           18       $         55    $                                                -    $      91        $     273
        Security & Privacy                                                              $           31       $         93    $                                                -    $     154        $     463
        System UI Navigation                                                            $           14       $         43    $                                                -    $      72        $     217
        Availability & Reliability                                                      $           20       $         61    $                                                -    $     101        $     304
                                                  Total $                         -     $          265       $        794    $                                                -    $   1,323        $   3,968

        Total User Productivity Benefits                               $          -     $          383       $    1,148      $                                                -    $   1,913        $   5,738


                                   Time per Activity                                                                                                                                Business Value of
                                                                   Time (Hours / Week)
                                                                                                                                                                                  Productivity Benefits
                                            0                     5     10     15    20            25                                                                  $600
                                                                                                                                                                                                                PC Systems
                                                                                                                                 Annual Productivity Benefits ($/PC)




                                                          10.8                                                                                                         $500                                     Management
                    Individual Computing
                                                          10.6
                                                                                                                                                                       $400               $265
                                                3.9                                                          As-Is
                 Collaborative Computing
                                                3.9                                                                                                                                                             Collaborative
                                                                                                             To-Be                                                     $300
                                                                                                                                                                                               $-               Computing
                                                1.0
                 PC Systems Management                                                                                                                                 $200
                                                0.8
                                                                                                                                                                                          $274
                                                                                                                                                                                                                Individual
                                                                       19.4                                                                                            $100
         Non-Computing-Related Activities                                                                                                                                                                       Computing
                                                                       19.4
                                                                                                                                                                         $-




083ba9b0-d749-4767-84f7-567cf8a641c1.xlsx                                                                   ROI                                                                                                                 43 of 44
Financial Analysis
   Revenue Growth
   This model simulates the costs and benefits of the initiative. The tables and charts below summarize the tool results.
                                                               Benefits ($ per PC)                    Benefits ($000)
                                                                   Annual On-      3-Year                Annual On-
                                                        One-Time      Going         Total    One-Time       Going      3-Year Total
        Improved Sales Effectiveness                               $        268 $      803 $        -    $     1,338 $       4,013
        Improved Marketing Effectiveness                           $          -  $        - $       -    $         -    $       -
        Improved Customer Service                                  $         89 $      268 $        -    $       446 $       1,338
        New/Expanded Channels/Geographies                          $          -  $        - $       -    $         -    $       -
        New/Enhanced Products/Services                             $          -  $        - $       -    $         -    $       -
        Improved Product Availability (fill rate, up-
                                                                   $          -  $        - $       -    $         -    $       -
        time)
        Other                                                      $          -  $        - $       -    $         -    $       -
                                                 Total $       -   $        357 $ 1,070 $           -    $     1,784 $       5,351


                                                                                                          Annual Revenue Growth (Margin)
                                                                                                       $400
                                                                                                                                                    Improved Sales Effectiveness
                                                                                                                            $-
                                               Annual Benefit per PC




                                                                                                                           $89                      Improved Marketing Effectiveness
                                                                                                       $300
                                                                                                                            $-
                                                                                                                                                    Improved Customer Service

                                                                                                       $200
                                                                                                                                                    New/Expanded
                                                                                                                                                    Channels/Geographies
                                                                                                                           $268
                                                                                                                                                    New/Enhanced Products/Services
                                                                                                       $100

                                                                                                                                                    Improved Product Availability (fill
                                                                                                                                                    rate, up-time)
                                                                                                         $0
                                                                                                                      Benefit                       Other
                                                                                                                     ($ per PC)



Summary of Non-Financial Key Performance Indicator Changes
    The table/chart below provides a summary of the 4 categories of non-financial KPIs. There are 4 to 10 specific KPIs in each category. The percentiles
    shown are how the organization compares to others in the industry. 0% represents worst performance in the industry (laggard); 50% is average
    performance; 100% is best in the industry (world class performance). The "Improvement" indicates how much the organization is expected to improve
    KPI performance due to the solution. Additional details can be found in the "KPIs" worksheet.

                                                                                                                           Percentile
                                                                                                                                             Improve-
                                                                                                              As-Is              To-Be         ment
         Sales/Marketing Performance                                                                            32.5%               32.5%        0.0%
         Business Management Effectiveness                                                                      32.9%               32.9%        0.0%
         Supply/Operations Performance                                                                          33.3%               33.3%        0.0%
         Technology Effectiveness                                                                               41.4%               68.6%       27.1%
         Average                                                                                                35.0%               41.8%        6.8%

                                                                                                                                                                                                As-Is
                                                                                                                KPI Performance Comparison
                                           World                                                                                                                                                To-Be
                                                                                                100%
                                           Class
                                                                                                90%
                                                                                                80%
                                                                       Performance Percentile




                                                                                                                                                                                          69%
                                                                                                70%
                                                                                                60%
                                                                                                50%                                                                                41%
                                                                                                40%            33%   33%              33%   33%              33%   33%
                                                                                                30%
                                                                                                20%
                                                                                                10%
                                            Laggard                                              0%
                                                                                                          Sales/Marketing             Business         Supply/Operations         Technology
                                                                                                           Performance              Management           Performance            Effectiveness
                                                                                                                                    Effectiveness


   © Copyright, 2006-2008, Hall Consulting & Research LLC, All Rights Reserved. www.hallcr.com




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