Business Processes Analysis

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Business Processes Analysis Exchange Network
Return on Investment
Exchange Network Users Meeting Hilton San
Francisco Hotel, Continental Ballroom April
18-19, 2006
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ROI for Exchange Network

• Purposes
• EPA needs cost saving data to justify future EN
  funding
• States need cost data to show benefits prior to
  EN projects
• ROI Project Results
• Investigate 5 data flows
• Develop a model to systematically quantify ROI
  values
• Monetary values
• Qualitative improvements
• Develop an Excel program that
• Calculates ROI values for five data flows
• Extensible to accommodate different state IT
  project environments
• Screening tool for developing plans for EN
  projects

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We Need Quantifiable Answers to These Questions
.

• What are either the benefits of, or compelling
  reasons for, electronic reporting (i.e., EN
  technologies)?
• What percent of your target audience is using
  it?
• Do you think youll see a return on your
  application development investment?

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ROI Project Objectives

• analyze environmental business processes,
• develop a reusable tool to model the return on
  investment from implementing EN technologies,
• develop a final report guide describing the ROI
  model and its application for facility, state,
  EPA applications, and
• publicize economic benefits of implementing EN
  technologies

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Data Flows

• AQS - The Air Quality System
• DMR - Discharge Monitoring Reports
• RCRA - Resource Conservation and Recovery Act
• SDWIS - Safe Drinking Water Information System
• TRI - Toxics Release Inventory

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Surveyed States

• Michigan
• New Jersey
• Washington
• Pennsylvania

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Site Visit Accomplishments

• Gather state information to verify the initial
  Models
• Business Processes for the data flows (before
  after EN)
• Operational scenario differences among different
  states
• Actual state values for ROI calcuations
• Improve the ROI model
• Collect quantitative information regarding the
  cost of maintaining data flows
• Use information gathered to assess the Return on
  Investment associated with the implementation of
  EN technology
• Document qualitative improvements

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ROI Model Technical Procedures
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ROI Model Business Process Analysis
eDMR Dataflow
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ROI Model ROI Factors Input Parameters
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ROI Model State Survey

• State Survey is divided into 3 sections
• Business Process Analysis Verify the business
  processes associated with each data flow
  (including all potential cost factors and various
  operational scenarios for every state)
• Assessment of State Costs Determine cost
  estimates for each ROI factor (step in the
  business process)
• Qualitative Factors Survey Determine what
  qualitative benefits are associated with the
  project

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ROI Model ROI Calculations (eDMR Dataflow)
Facility-to-State Cost Factors
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ROI Model ROI Calculations (eDMR Dataflow)
Facility-to-State Cost Factors
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ROI Model ROI Calculations (eDMR Dataflow)
State-to-EPA Cost Factors
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ROI Model ROI Calculations (eDMR Dataflow)
Implementation Cost Factors
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ROI Model ROI Calculations (eDMR Dataflow)
Financial Model
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ROI Model Overview Step 1, 2, 3
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ROI Model Overview Step 4, 5, 6, 7
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Qualified Benefits to Facilities Labs

• Saves my compliance administration
  costsstreamlines the reporting process
• provides immediate feedback of compliance
  status for proper actions
• will increase the amount of data accessible for
  trend analysis
• data entry errors are reduced
• Time savermore traceable than paperimmediate
  confirmation of receipt
• at least half a million dollars savings for
  all community and non-community facilities and
  labs

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Qualified Benefits to State EPA

• Eliminates data entry operators and other staff
  resources
• Improves facility to state data quality by
  elimination of data entry errors
• Improves the program effectiveness/efficiency
• Improves response to public health concerns
• Allows staff to better utilize precious resources
• Eliminates backlog of paper reports

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Deliverables

• Analytical ROI model and guidance documentation
  capable of incorporating facility, state and EPA
  business process variables.
• Business process analysis of 5 data flows at four
  states, survey of facility and state
  representatives with data collection of ROI
  variables and quotes.
• Final report.
• Marketing materials highlighting project purpose,
  process, analysis and model development results.

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Final Report/Guide

• Report Content
• Explain the ROI modeling tool
• Summarize findings in each state
• Draw conclusions about EN impacts to business
  process efficiencies
• The report benefits
• Aid state agencies with annual budgets, IT
  project strategies and priority deliberations
• Assist state project managers in making EN
  investment proposals to management and
• Assist ongoing state, Network CDX performance
  measures projects.

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More Info?

• Michael Beaulac Tony Jeng
• Executive Division enfoTech Consulting,
  Inc.
• MI Department of Environmental Quality Lawrencevil
  le, NJ 08648
• Lansing, MI 48867 609-896-9777, ext. 107
• 517-241-7808 tony_jeng_at_enfotech.com
• beaulacm_at_michigan.gov
• Kurt Rakouskas Molly ONeill
• ECOS ECOS
• Washington, D.C. 20001 Washington, D.C. 20001
• 202-624-3684 202-624-3507
• kurtr_at_sso.org moneill_at_sso.org