Cost Segregation Services

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Usability Translating to Dollars Show me the
money Ed See Partner, Arthur Andersen, LLP
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All Business investments must
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Making the case Usability pays
Usability must translate to cost cuts or
increased revenue and must be measured

• Reduce Cost Areas
• Reduce maintenance and technology costs provide
  a scalable architecture and standards
  documentation that allows for easy updates and
  changes.
• Reduce training and support costs - interfaces
  are intuitive, easy to learn and map to a user
  model.
• Increase employee productivity - save time
  through task automation establish common rules
  and processes, and increase access to
  information.
• Reduce errors - by delivering and interface that
  meets the user model
• Ensure the relevance and quality of content - by
  providing standard processes, tasks are completed
  in a timely, efficient manner and have the proper
  level of support and approval from the
  organization.
• Reduce business risk - versioning, archival and
  storage

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• 1. Decreasing error rates
• 2. Improving processes
• through automation
• and efficiencies
• 3. Lowering support and
• training costs

• Increasing Revenue Areas
• Improved conversion rates
• Improved transaction success
• Increased per customer take
• Increased customer loyalty

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ROI for Usability within the Enterprise

• An ROI approach to usability
• Delivers quantifiable value to the enterprise
  through user-centered design. Solutions must
  provide a substantial return on investment
  throughout an organization by concentrating on
  the integration of user, business, and technology
  goals. Usability without business impact has no
  measurable value.
• Optimize processes within the enterprise through
• Workflow automation (content/doc management,
  CRM, etc)
• Governance
• User interface design/user experience design
• Usability/human factors engineering
• Results
• Improved efficiency
• Reduction of cost within the enterprise
• Improved user experience
• Usable and useful products

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Making the numbers

• How do we achieve ROI?
• Redefining inefficient manual processes to
• improve human performance through software
• and user interface design.

• Examples
• Conversion of paper-based and physical processes
  to digital
• Improved performance through prevention of error
• Streamline communications between multiple users
  in a process (workflow)
• Converting tribal knowledge to repeatable
  digitized process
• We measure human performance and
• transaction rates/completion for all
• parts of a business process

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ROI measures at all levels of the business

• Focus
• Making employees more efficient (enterprise
  applications, employee desktops)
• Helping companies interact with their employees
  (portals, intranets)
• Helping businesses interact with their suppliers
• Relevant Skills
• Enterprise application integration
• User interface/interaction design
• Process design and optimization
• Human factors engineering
• Content management platforms

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Enterprise User Experience Design skill sets
We deliver on the value proposition by applying
a rigorous software engineering methodology while
focusing on human performance.
Product
Business
Tech
Users
What we do (Team Skills)
What we dont do

• Brand development
• Marketing/communication strategy
• Networking, connectivity infrastructure
• Application development

• Business Analysis
• Information architecture
• Interaction design
• Organization design/governance
• Process engineering

• Human factors / Human computer interaction
• Usability engineering
• Technology
• General cognitive sciences

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Who we sell to

• Buyers
• We sell to the internally focused
• parts of an organization and buyers
• of enterprise applications.
• Typical buyers include
• Internal focus CIO, CFO, HR Director
• Enterprise applications
• Sales Directors, Marketing/comm Directors
• Target organizations
• Process and workflow intensive
• organizations that have a captive
• audience within the enterprise

• Example industry/functional target
• engagements
• Sales function within an organization
• CRM process and workflow design
• Order management process and workflow
• Financial services companies
• account opening/management process design and
  systems architecture
• design and architecture of employee desktop
  (portals, intranet, applications, etc)
• governance modeling and organization design
• Publishing companies
• Publishing workflow automation and process design
  (content/document management systems)
• governance modeling and organization design
• Pharmaceutical companies
• Document management systems for regulatory
  filings
• governance modeling and organization design
• design and architecture of employee desktop
  (portals, intranet, applications, etc)

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Project lifecycle
Our User-Centered Design process bridges industry
best practices from software engineering,
interaction design, information architecture and
process engineering to produce market solutions
that are
FlexibleOur criteria-driven model meets client
needs by allowing different points of entry into
the process.
System Selection Design Implementation
Criteria-Driven
Organization Design Governance
Analytics, Testing Measurement
Comprehensive Our integrated approach combines
strategy, design and implementation in each phase.
Requirements Modeling
Rollout
Integrated
Discovery
Kick off
On-Target Our iterative process ensures quality
solutions through continuous testing and
refinement.
Iterative
Scalable and Modular We produce component-based,
scalable solutions that can be modified to meet
quickly changing business needs.
Iterative
Scalable
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Example engagements
Financial Services
Financial Services
Manufacturing
Telco
Benefits
Benefits
Overview Large international manufacturer of inks
and pigments. Required consistent process and
technology for storing, classifying, and sharing
information across 300 offices worldwide.
Overview Major investment services firm
headquartered in the Northeast. Required a
re-design of their account opening processes to
help reduce cost across the organization.
Overview Large global investment bank. Required
the design and development of an employee desktop
that is both usable and useful to multiple levels
of the organization.
Overview
1 b network and telecom reseller and services
company. Required common process and a single,
integrated systems environment for CRM,
financials, and order mgmt.
Benefits
Benefits

• Tasks
• Implemented UCD methodology
• Design and architect user interface for employee
  desktop and applications
• Design of account opening process
• Design of workflow management processes and user
  views
• Development of design and architecture standards
  manual

• Tasks
• Implemented UCD methodology
• Develop business case for improvement of account
  opening application and processes
• Redesign account opening application and related
  processes
• Develop technical architecture and organization
  structure for migration from paper based to
  digital processes

Tasks

• Tasks
• Implemented UCD methodology
• Design, implementation and rollout of an
  enterprise portal(Plumtree) and content
  management system (Interwoven)
• Development of governance and publishing models
• LDAP/Active directory implementation

• Designed process, workflow, and enterprise
  architecture for the ERP (Oracle), CRM (Siebel),
  service management (Click) and EAI (Webmethods)
  systems.
• Implemented storyboard/use case design
  methodology
• Acted as architecture team

Benefits
Benefits

• Benefits
• Reduced errors during the account opening process
  which drives cost savings
• Improved customer service
• Improved productivity of front, middle and back
  office FTEs
• Increased time spent on sales related activities
  
• Reduced cost of account opening process

• Benefits
• Reduced support and training costs
• Increased productivity of development team
• Increased productivity and sales force
• A standard architecture for maintenance of
  applications and future software development
  initiatives

Benefits

• Benefits
• Improved knowledge/document management through
  one global toolset
• Improved communication and access to consistent,
  reliable and relevant information
• Improved productivity of IT staff and content
  owners through rollout of a governance model

• Single, integrated system supporting all North
  American business
• Deep CRM, order management, and inventory
  management functionality
• Common processes and workflow for all North
  American regional offices

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Benefits and Sample ROI Case Studies
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Case Study - improved employee productivity
Employee Cost Savings


(
)
time saved
x employee cost x of employees
cost savings

time at work

• Sample cost incurring activities
• Entering redundant information into multiple
  systems
• Performing tasks that are now automated through
  workflow( ex notifying people in the process to
  review or approve)
• Non-standard processes ( a document management
  system will provide workflow based on criteria)

Case study employee productivity Time saved 30
minutes a week Cost per employee, per year
80,000 Number of employees 500 Cost savings per
year 500,000
Based on data from previous client engagements
in the financial services industry and industry
standards
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Case study - reduction of errors

Cost of Errors

(
)
(
)
x avg. repair time x avg. hourly salary
cost of error

of errors
Case study - Post-implementation Based on a
previous client engagement we have seen an
reduction in errors of 80 due to the
implementation of a document management system,
workflow and the application of our user-centered
design process. of errors per month
220 Average time to repair 50 minutes Avg. cost
per employee 80,000 Cost of errors per month
7,036 Cost of errors per year 91,468 Total
savings per year 366,392
Pre-implementation example of errors per
month 1,100 Average time to repair 50 minutes
Avg. cost per employee 80,000 Cost of errors
per month 35,220 Cost of errors per year
457,860
Based on data from previous client engagements
in the financial services industry and industry
standards
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Case study - increased sales revenue
Increased Revenue


(
)
of employees
of time reduction
25 sales conversion
x x
increased revenue

total revenue
Survey Results
Case Study Post implementation increase in
sales revenue of FTEs 200 Total revenue
400,000,000 of time reduction 3 Increase in
sales revenue based on 25 conversion rate
3,750 Total revenue increase per year 750,000
Time spent each week completing application
paperwork and resolving errors
Participants 760 client service representatives
at a major financial services company
Based on data from previous client engagements
in the financial services industry and industry
standards
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Case Study reduction in support cost
Cost of support


FTE loaded hourly wage
of support calls
Amount of support time
of employees
x x x

Cost of support
The usability of an application directly effects
the cost of support.
Case study reduce support costs of calls
eliminated per month 2 of employees
1,000 Avg. amount of support time 10
minutes Avg. loaded FTE hourly wage
35,000 Support savings per year 140,000
The cost of providing telephone support for a
system has been estimated between 12 - 225 per
call depending on the organization. Support can
add to an internal systems total cost of
ownership.
Based on data from previous client engagements
in the financial services industry and industry
standards
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Case Study reduction in development and
maintenance through user-centered design

Cost of development and maintenance

(
)
Cost of Development Maintenance
Avg. hours per change
Developer FTE rate
of changes
If Late change add 4x time
x x x

Case study savings gained from making changes
early in the design life cycle of changes
20 Avg. hours per change 8 Developer loaded FTE
rate 40 per hr Development cost 6,400 Late
change additional time 4x Late development cost
35,600 Savings for early changes 29,200

• Examples of development and maintenance reduction
• Usability techniques help reduce development
  time by 33-50
• Once a system is in development the cost is 4
  times more to fix than during the design phase
• Most maintenance costs are associated with
  unforeseen or unmet user requirements and
  usability problems
• Most software development projects often run
  over budget and schedule due to overlooked tasks
  and similar problems that usability techniques
  such as task analysis and user analysis are
  capable of addressing

Based on data from previous client engagements
in the financial services industry and industry
standards