KMA Webinar: What Your CFO Should Know About SharePoint

Webinar Series

February 16, 2011

What your CFO should know about SharePoint
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Presented by:

Webinar Series

February 16, 2011

What your CFO should know about SharePoint

Presented by:

Housekeeping Items

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• Change color of your seat to RED

• Questions for Speakers?
• Submit questions during webinar

• Twitter Discussion
• #kmasp

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• Next Steps/Moving Forward

Copyright 2011 © Knowledge Management Associates, LLC. All rights reserved.
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ABOUT KMA

• Founded in 1995, focused on New England
• 25 employees, technical DNA
• Industries: Professional Services, Life Sciences
& Financial Services
• Technologies:
• SharePoint, SQL Server, Office, and Visual
Studio.NET
• Specialties:
• Collaboration: Portals, Websites, Communities
and Content Management
• Insight: Enterprise Search and Business
Intelligence
• Productivity: Forms, Workflow, Office Client
Customization

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About the Speakers – Paul Culmsee

• Owner: Seven Sigma Business Solutions
• SharePoint architect, trainer, facilitator and
agony aunt
• Sense-making practitioner and facilitator for
large scale complex projects (non IT)
• Speaker and author:
• SharePoint Best Practice Conferences
• Business Analyst World Conference
• CleverWorkarounds.com
• NothingButSharePoint.com
• SharePointMagazine.net

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About the Speakers – Chris McNulty

• Working with SharePoint technologies since
2000/2001
• 20 years consulting and financial services
technology (Santander, John Hancock, GMO,
State Street)
• SharePoint practice lead at KMA
• Write and speak often on Microsoft
information worker technologies
• Microsoft MCSE/MCTS/MSA
• BC MBA in Investment Management

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Agenda

• Paul Culmsee: 'How to Talk to Your CFO in Their Language'

• Chris McNulty: Business Intelligence and Data Visualization
tools CFOs will love

• Questions & Answers

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(c) Seven Sigma Business Solutions 2010

What I’ll Be Speaking To:


What I’ll Be Speaking To:
1. How to perform ROI analysis the way your CFO would
2. Dealing with “you cannot quantify *insert platitude here+”
3. Handling uncertainty in estimating


Even CFO’s Have a Pie :-)

Source: KPMG
http://kpmgbe.lcc.ch/index.thtml/en/services/Advisory/Performance/AAS/index.html


How You May See ROI
• We need to spend $100,000 on “SharePoint”
• It’s gonna be great! After 3 years we expect to make $120,000
• $120k-$100k = $20,000 that like … a 20% return! Where is my bonus?

Year Investment Benefit Cash Flow
0 -$100,000 0 -$100,000
1 -$20,000 $40,000 $20,000
2 -$20,000 $60,000 $40,000
3 -$20,000 $80,000 $60,000
Total return $20,000


The CFO View


Risk and Return

• Most organisations borrow money to fund their
operations
• Organisations with surplus cash can earn 4-6% interest
with little risk
• Why would you undertake a risky project if it returned
6%?
o It is not covering financing cost or;
o Park the money and earn interest risk free
o This is called “Cost of Capital”

• We need to discount the cash flows (DCF) by the cost of
capital

Your ROI Model (Discounted)

• Let’s assume an 8% cost of capital = 0.08
Year Investment Benefit Cash Flow Discounted Cash Flow

0 -$100,000 0 -$100,000 -$100,000

1 -$20,000 $40,000 $20,000 $18518 (20000 / 1.08)

2 -$20,000 $60,000 $40,000 $34294 (40000 / 1.08^2)
3 -$20,000 $80,000 $60,000 $47630 (60000 / 1.08^3)
Total $20,000 $442


…But You Can’t Quantify Collaboration?

• Oh yes you can!
o Watch for the platitude
o Learn to handle uncertainty


Platitudes

“The Montgomery Burns Award for Outstanding Achievement in the Field of
Excellence"


The Platitude Indicator

If you cannot reasonably disagree with an
objective, or measure it, then it is a platitude

‘Most corporate mission statements are worthless. They often
formulate necessities as objectives; for example, "to achieve
sufficient profit." This is like a person saying his mission is to
breathe sufficiently.’
Russel Ackoff


SharePoint Platitudes

“We are improving collaboration”




“We are providing a best-practice collaboration platform”





“We are providing a quality collaborative experience for our users”





“We are providing a quality collaborative experience for our users”

“It’s a SharePoint project”


A Non Platitude Example

“To produce high-quality, low cost, easy to use products that incorporate high
technology for the individual. We are proving that high technology does not have
to be intimidating for noncomputer experts.“
Apple Mission Statement


SharePoint Non Platitudes

“We are proving that through better information
management, we can improve our customer relationship
and trust building without over-burdening our staff”

“We are proving that we can grow the organisation while
reducing email volumes and centralising document storage”

“By building communities of practice, we prove that we can
reduce information overload and allow our users to find the
right expertise”


I’m Too Uncertain to Estimate…

• We implement new tools and systems to make a positive difference
o Otherwise why bother?
• Ask yourself what the ‘difference’ actually looks like
o This is where you will find your metrics
o Example: Faster turnaround, reduced wastage, reduced complaints, repeat
business, reduced customer churn, etc
o Hint: visit www.kpilibrary.com for a database of potential measures


I’m Too Uncertain to Estimate…

• It is not about finding the *exact* value
o Vaguely right is better than precisely wrong
o Provide an estimate within a lower and upper range that you feel confident
about
o If your CFO does not like your estimate, run a workshop to reduce the range,
but do not be coerced into reducing your uncertainty!
o The range of possibilities can be modelled via the discount cash flow method


Key Takeaways

• Geeks don’t sign the cheques, CFO’s don’t architect SharePoint
– Some shared understanding goes a long way
• Ensure that you take into account cost of capital when modelling ROI
• Do not chase mirages disguised as platitudes
– Platitudes delude us into thinking that we have an end in mind when we actually do
not
– Hone your platitude radar
– Don’t confuse the means with the end. Focus on the difference SharePoint will make.
• If you are uncertain, offer a ranged estimate and model the possibilities
– Don’t be coerced into artificially reducing your uncertainty.

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Goals for BI Design

• Answering the known questions about our business
• Allowing users to self-discover patterns and answers to questions we
haven’t yet been asked

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Complexity Levels of These Solutions
Cost

Time
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SharePoint BI Evolution

Custom
Performance Solutions
Point • Mapping
Enabling • Dashboards • Web Parts
technologies • Analysis • Etc.

• Business Services
Excel Connectivity
Services Services
• Excel Web • SQL Reporting
Access Services
Chart • Pivot
• PowerPivot
Web Part • Dallas

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Excel Services

• Use the world’s #1 BI modeling
tool
• Render data, charts, interface
using native Excel components
(e.g. Slicers)
• Data stored in Excel
• Host a presentation layer using
Excel Services
• Use native SharePoint Status
Indicators (KPIs)
• Use when users are skilled in
Excel modeling and charting and
data lives in spreadsheets
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PowerPivot

• “Project Gemini” – host 1-10MM row datasets
• Excel and SharePoint components
– Excel optimized to handle data management
and memory cache
– SharePoint builds cache and optimizes for
server web access
• Data doesn’t live in spreadsheet; comes from
– SQL, Analysis Services Cube, SSRS Report
– Access
– Power Pivot/Excel
– Data Feeds (XML, Atom, Azure, WCF OData,
Dallas)
– Oracle, Teradata, Sybase, DB2
– ODBC
– Text files
• Use when Excel modeling skills are high but data is
too large or too heterogeneous to keep in multiple
Excel spreadsheets
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DEMO - PowerPivot

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Business Connectivity Services

• Read write access to external data
sources in SP2010 (aka Business
Data Connectivity)
• Pull data into SharePoint user
interface
• Push data into external sources
– (SQL, .NET, Windows
Communication Frameworks
(e.g. Dallas)
• Republish data to consuming
applications (e.g. Outlook 2010)
• Use when key data lives outside
SharePoint direct control – e.g.
accounting systems

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SQL Server Reporting Services (SSRS)

• “Code free” but requires development
tools
• Designed using Business Intelligence
Developer Studio
• Host in SQL Server or SharePoint

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PerformancePoint 2010

• Dashboard Designer (browser
downloadable)
• Integrates Excel Services, SSRS, and
Performance Point Elements
• Sophisticated self service modeling
• Decomposition Tree
• Ideal for SSAS but also work with
standard data sources (lists, SQL)
• Requires true SQL development to
build and maintain SSAS cubes for
KPIs and scorecards

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DEMO – BCS Tagging &
PerformancePoint

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2010 BI Solutions in SharePoint
Large Datasets
Visual Navigation

PowerPivot Pivot

PerformancePoint
Mapping

SharePoint list

KPI / Status Indicator
SQL Reporting
Services Chart Web Part

Printing or Excel Services
exporting Small Datasets

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Questions and Answers

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Resources
• From Seven Sigma:
• Blog: www.cleverworkarounds.com
• “Learn to speak to your CFO” – 5 part series
• Why do SharePoint projects fail – 8 part series
• The one best practice to rule them all – 6 part series
• SharePoint ROI sample spreadsheet
• http://www.cleverworkarounds.com/PMIS%20Scenario.zip
• From KMA
• Webinars, white papers and blogs at www.kma-llc.net/insights
• Chris’s blog at: http://blogs.kma-llc.net/microknowledge/
• From Microsoft:
• Business Intelligence: http://www.microsoft.com/bi/
• BI Blog: http://blogs.msdn.com/b/bi/

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Resources: How KMA Can Help

• Content:
• Online content, blogs, articles available through www.kma-llc.net/insights
• Monthly live seminars/webinars, recent topics at www.slideshare.net/kmallc
• One-to-one discussions with you about your unique business problem

• Upcoming Events:
• March 16 Webinar: SharePoint for the PMO
• March BASPUG: BI and Data Visualization
• More at: http://www.kma-llc.net/insights/Pages/NewsEvents.aspx

• Offerings
• SharePoint Health Check, Readiness Assessments - short-term, fixed price engagements
• Deployment Planning Services – co-funded by Microsoft and with SA benefits
• NEW: Solution Architect Sessions

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Special Solution Briefing Offer for Webinar Attendees
A complimentary Solution Briefing with your IT and business leaders, by a KMA Solution Architect.
You will be provided with an explanation of how to map business problems to solutions powered
by Microsoft technologies, featuring:
• Demonstrations and/or Case Studies
• Business Analysis Design
• HighCalculator
Level Conceptual
• ROI
Delivered via:
• Two-hour IT and business location
with your
session at your
leaders.
• Written Report including analysis
and design summary, and ROI calculator.

Audience:
• IT and Business Leaders

Retail Value: $1,000

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In Closing…

• How to get (and share) a copy of today’s slides
• How to continue the conversation:
Name Twitter E-mail Phone

Chris McNulty @cmcnulty2000 Cmcnulty[at]kma-llc[dot]net 781.693.6829

Paul Culmsee @paulculmsee paul.culmsee[at]sevensigma[dot]com[dot]au

Mike Gilronan @mikegil Mgilronan [at]kma-llc[dot]net 781.693.6823

• How to provide feedback

Thank you to our speakers and attendees!!!

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