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Total Economic Impact Study Of Yammer - By Forrester Consulting

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Total Economic Impact Study Of Yammer - By Forrester Consulting

  1. 1. PRESENTATION Prepared BY:<br />Tanya Loh, Engagement Strategist<br />@tloh<br />The Total Economic Impact of YammerA Commissioned Study by Forrester Consulting (April 2011)<br />
  2. 2. Some yams are easy to measure<br />
  3. 3. But what about these?<br />“With Yammer, we are able to connect and collaborate with subject-matter experts in our global enterprise, we have the ability to communicate between headquarters and the field, and we have the ability to share experiences and engage leadershipin conversation.”<br />“Yammer has been theonly cross-functional, cross-silo place for people to go to get their questions answered. It’s our global water cooler and it did a great job.”<br />− VP of online communications<br /> media and technology firm<br />− Director of IS Strategy and Innovation<br /> Fortune 500 pharmaceutical firm<br />VALUE<br />“The Total Economic Impact of Yammer”, April 2011, <br />a commissioned study conducted by Forrester Consulting on behalf of Yammer.<br />
  4. 4. What is the ROI of Yammer?<br />Conducted by Forrester Consulting on behalf of Yammer, the purpose of this commissioned study is to:<br />Provide a framework to evaluate the potential financial impact of deploying Yammer and address why companies should invest<br />“With Yammer, we are able to connect and collaborate with subject-matter experts in our global enterprise, we have the ability to communicate between headquarters and the field, and we have the ability to share experiences and engage leadership in conversation.”<br />− Director of IS Strategy and Innovation<br /> Fortune 500 pharmaceutical firm<br />“The Total Economic Impact of Yammer”, April 2011, <br />a commissioned study conducted by Forrester Consulting on behalf of Yammer.<br />
  5. 5. 12 week commissioned study with Forrester Consulting<br />Interviews with 4 Yammer customers (paid licenses, mature networks)<br />Designed composite customer case of 7,000 users / 21,000 employees<br />Based on a three-year term at list pricing, risk-adjusted ROI:<br />Executive Summary<br />Table 1<br />Composite Organization Three-Year Risk-Adjusted ROI<br />Source: Forrester Research, Inc.<br />“The Total Economic Impact of Yammer”, April 2011, <br />a commissioned study conducted by Forrester Consulting on behalf of Yammer.<br />
  6. 6. Tieto, a leading IT service company in Northern Europe<br />17,000 employees, 4,900 on Yammer<br />A regional division of a North American automobile and travel organization <br />5,000 employees, 3,700 on Yammer<br />A diversified media, technology, and information services firm <br />50,000 employees, 18,000 on Yammer<br />A Fortune 500 multinational biopharmaceutical company <br />60,000 employees, 11,000 on Yammer<br />*Yammer network totals current as of time of interview<br />Participating Customers<br />“If you were looking to solve a technical or process problem, in the past you had limited resources. With Yammer, your resource horizon is significantly greater, and getting the answer is significantly faster.”<br />− Director of IS Strategy and Innovation<br /> Fortune 500 pharmaceutical firm<br />“The Total Economic Impact of Yammer”, April 2011, <br />a commissioned study conducted by Forrester Consulting on behalf of Yammer.<br />
  7. 7. Projected Costs<br />List pricing ($5 per user per month), not including discounts<br />All other costs, including admin support and oversight, implementation and training, based on customer experience<br />Total Cost: $1.7 Mn for 3 year license for 7,000 users<br />“Several people have said that one week on Yammer has taught them more about the organization than the years they’ve spent here.”<br />− Consultant, Enterprise Content Management Department<br /> IT Services firm<br />“The Total Economic Impact of Yammer”, April 2011, <br />a commissioned study conducted by Forrester Consulting on behalf of Yammer.<br />
  8. 8. Projected Benefits<br />Project cost savings: avoiding redundant work, reorganization of processes, improved collaboration and communication<br />High engagement worker: 28% of network, 1.4% productivity increase, 50% captured by company<br />Medium engagement worker: 32% of network, assume 0.7% productivity increase, 50% captured by company<br />Faster onboarding: assuming 5% turnover, with 2.3% to training, overall 10% reduction in new hire training costs <br />Total Benefits: $10.2 Mn for 3 year license for 7,000 users<br />“The Total Economic Impact of Yammer”, April 2011, <br />a commissioned study conducted by Forrester Consulting on behalf of Yammer.<br />
  9. 9. Yammer Helped Simplify, Reuse<br />“The Total Economic Impact of Yammer”, April 2011, <br />a commissioned study conducted by Forrester Consulting on behalf of Yammer.<br />
  10. 10. Additional Benefits<br />Improved vertical communication<br />Public venue for and record of conversations<br />Reinforcement of success drivers<br />“Results from the company survey came out. People are saying, ‘I’m so glad we have Yammer, I feel more connected to everyone in the company. The COO, the CEO – they are listening.’”<br />− Social media strategist<br /> North American automobile and travel organization<br />“The Total Economic Impact of Yammer”, April 2011, <br />a commissioned study conducted by Forrester Consulting on behalf of Yammer.<br />
  11. 11. The Total Economic Impact of Yammer<br />The data collected in this study indicates thatdeploying Yammer has the potential to provide a solid return on investment through quantifiable project cost savings, productivity benefits, and reduced training costs.The risk-adjusted ROI of 365%, along with a rapid payback period (breakeven point), raises confidence that the investment is likely to produce a positive outcome…[based] on these findings, companies looking to implement Yammer can anticipate significant productivity gains and cost savings.” <br />– Forrester Consulting<br />“<br />365% ROI, 4.3 month payback, $5.7 Mn NPV<br />risk-adjusted, 3 year license for 7,000 users at list pricing<br />“The Total Economic Impact of Yammer”, April 2011, <br />a commissioned study conducted by Forrester Consulting on behalf of Yammer.<br />

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