Currently Being Moderated
4

ROI, ShmoROI

Posted by Dave Hersh on Mar 2, 2007 5:15:13 AM

I've been getting a number of reporters asking about the ROI behind an application like Clearspace lately. My general response is that it's a fool's exercise. Trying to determine if the savings and revenue increase are worth the expense is like trying to measure whether the view from atop Everest was worth the climb -- it's exceedingly hard to measure and it should be painfully obvious.

 

Aaron Johnson, one of Clearspace engineers, pointed me to a great piece by James Snell, one of the minds behind Lotus Connections.

"The goal you should be looking to achieve is not increased sales revenue or a measurable productivity increase. Instead, what youre looking to do is capture the conversations that typical occur in the hallways between meetings, the short yet invaluable lists of todos that go along with any project, the random thoughts and insights that come to us throughout the day but usually end up getting lost somewhere between checking the morning email and the three hour long sales meeting."

He's more eloquent than me on the subject, but the point is the same. My message has been, 'for less than the cost of pens (an actual quote from a recent prospect), you can free up all the knowledge that's stuck in people's heads, left at the water cooler or trapped in an email outbox for eternity.'

 

I'm sure some analysts somewhere will start measuring productivity output, satisfaction levels and resolution times. The rest of us will be enjoying the view.



Add a comment Leave a comment on this blog post.
Mar 3, 2007 8:29 AM Guest Mukund Mohan  says:

Dave

After years of spending IT budgets on non ROI stuff most businesses are conditioned to provide justification as part of their procurement process.

 

If you want to say the ROI is not yet clear but it exists that's fair and any PR person will accept that.

 

Realize their audience is asking for this so they are not just asking you because they are bored or they don't get it.

 

Mar 3, 2007 3:15 PM Guest AJ  says:

Here's another good perspective on ROI and Clearspace from the perspective of Enterprise 2.0:

 

http://www.socialglass.com/archives/4

 

Excerpt: "Enterprise 2.0 provides an environment that encourages innovation, facilitates the capture of tacit data, and creates a spirit of collaboration due to the participatory and social nature of said technologies. This allows enterprises to become more efficient due to increased sharing and discovery of knowledge, and helps enterprises maintain competitive advantage by fostering innovation from within."

 

AJ

 

Mar 4, 2007 11:08 AM Guest djhersh  says:

Mukund, I definitely agree. I don't think it's going to go away at all. In fact, I'm sure we'll be doing ROI analyses for our customers. My point is that the best ROI artists out there (and there are good ones) will have a hard time quantifying the benefit in any profound way. Still, there are some basic ways to start the process (like time spent researching an answer, number of redundant questions, output before and after, etc.).

 

I should have been more specific, but what can you expect for a 6am blog :).

 

Mar 5, 2007 6:28 AM Guest James Snell  says:

The ROI for these technologies indeed does exist, it's just exceedingly difficult to measure because of the broad number of ways they could be utilized.  Organizations that deploy blogs, etc and place strict guidelines on how they can be used will never realize the full benefit but might have an easier time measuring direct business value.