ROIs matter most in high-effort, high-impact business decisions. Today, we put SharePoint ROI to the test.
Typically, the ROI from SharePoint depends on how it’s used. As Robert McDowell said in his book In Search of Business Value: “Technology provides no benefits of its own; it is the application of technology to business opportunities that produces ROI.”
There’s always buzz in the BPM world about how great information architecture/content management can drive organizational efficiency. Google’s “Return on Information” (ROI) Whitepaper explains why. Vendors have cited Google’s study to justify out-of-the-box document storage systems, relaying Google’s claim that an average employee spends 16 percent of their week searching for information (compared to Microsoft’s 30% estimate) – and that only one in five searches yields desired results. Companies have flocked to content management solutions to increase efficiency and provide for better project management with version-controlled documents and more organized collaboration. PM solutions like Basecamp have sprouted from this.
SharePoint has shown up as a project management and content management solution. Companies have leveraged SharePoint’s ability to:
- Manage projects individually using customizable project pages
- Develop project-specific document libraries with version control
- Manage tasks/consolidate team collaboration
- Improve employee productivity
- Aggregate critical enterprise information
- Provide fast, easy access to content
While these are legitimate SharePoint benefits, they account for only a fraction of what SharePoint was designed to offer. SharePoint is an enterprise platform. While it can be leveraged as a PM platform, using SharePoint solely for PM isn’t likely to yield the satisfying, long-term ROIs the business is looking for.
The highest SharePoint ROI occurs when the organization realizes SharePoint’s purpose and gradually adopts it as a platform that supports:
- Content management
- Process automation
- Systems integration
- Custom application development
- Specific solutions (ex: RFP/Lead Management system for Sales, employee time log system for Accounting)
SharePoint’s options are limitless. The organization can integrate a SharePoint workflow, library, or collaboration portal for just about anything they want.
Today, however, the SharePoint ROI question may not center around how much/how little it will be used. The question is whether to adopt SharePoint or a combination of web-based applications for specific needs – something addressed in Forrester’s assessment of SharePoint 2010 adoption. Quick-fix 2.0 apps are the make-or-break factor here. While SharePoint has evolved over the last decade, it failed to keep up with the enterprise’s leveraging of social computing.
This issue, however, comes back to the original question: why are you using SharePoint? If you’re in the market for an out-of-the-box, quick-fix project management system, then a web-based software-as-a-service (SaaS) that integrates well with collaborative software is a great solution. If you’re looking for something that integrates well with existing systems and provides for better performance measurement over time, you’re clearly batting in a different ballpark. The ways you measure ROI for these two options are different.
We usually expect out-of-the-box, SaaS solutions to have better adoption rates (they look pretty), and therefore a faster ROI. We can measure its success by how much it improves productivity. SharePoint, however, is not a quick fix. In this way, adopting SaaS is like renting an apartment – you get what you need on a monthly basis, but you can’t knock down any walls or add that new patio you’ve been wanting. Adopting SharePoint is like building a custom home – you start off with an empty lot, and design and build the house to fit your wants and needs. And if you get tired of the linoleum floors you put in the kitchen, no problem. It’s your house. Rip ‘em up!
The ROI of SharePoint is up to you.