1 / 33

GIS ROI: How to Measure and Assign Value to Your GIS

GIS ROI: How to Measure and Assign Value to Your GIS. May 8, 2013. Jim Sparks Indiana Geographic Information Officer. Agenda. Why measure ROI? Review GIS ROI studies ROI: The Process Discussion and Questions. Why Measure ROI?. To garner support for your GIS program

harper
Download Presentation

GIS ROI: How to Measure and Assign Value to Your GIS

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. GIS ROI:How to Measure and Assign Value to Your GIS May 8, 2013 Jim Sparks Indiana Geographic Information Officer

  2. Agenda • Why measure ROI? • Review GIS ROI studies • ROI: The Process • Discussion and Questions

  3. Why Measure ROI? • To garner support for your GIS program • To document or estimate impact of changes • To compare effectiveness with other programs • ???

  4. ROI Studies: Enterprise Authors: Richard Zerbe and Associates Location: King County Washington When: 2012 Target: Net benefits from 1992 to 2010 Results: The use of GIS produced approximately $775 million in net benefits over the eighteen year period Google “King County GIS ROI”

  5. ROI Studies: Enterprise Authors: Geospatial Information Technology Association (GITA) Location: State of Iowa When: 2007-2008 Target: 99 counties, 11 state agencies, three utilities plus Iowa One Call, and consulting firms Results: 20 year Net Present Value of $271 million Stewart, 2008

  6. ROI Studies: Enterprise Author: Jill Saligoe-Simmel, PH. D. Location: State of Indiana/IndianaMap When: 2007-2008 Target: 314 respondents of 1521 registered users of IndianaMap Results: • 35:1 ROI • $1.7 billion worth of projects and operations supported by the IndianaMap http://www.igic.org/projects/roi.html

  7. ROI Studies: Project Bolder County, CO • Road Maintenance Dept. • Sign Inventory • Over 7,000 signs to manage • Results: $20,000 inventory cost savings http://www.scaug.org/resources/Documents/Return_on_Investment.pdf

  8. ROI Studies: Project • Los Angeles County, CA • Automated Cadastral Map Books • Results: • Eliminated 200 Overtime Hours • Eliminated 20,800 Regular Hours • Annual Savings of $90,000 http://www.scaug.org/resources/Documents/Return_on_Investment.pdf

  9. ROI Studies: Project Martin County, FL • Geo-Auditing for Commercial Property Taxes • Results: Increased County Tax Base by $3.5 Million http://www.scaug.org/resources/Documents/Return_on_Investment.pdf

  10. Create ROI Team ROI Planning & Prep Conduct Interviews Assess and Organize Information Calculate Benefits Calculate Costs Prepare ROI Report

  11. Create ROI Team • 4 to 8 people • Skills needed: • Knowledge of the Enterprise • GIS Experience • Accounting • Report writing

  12. ROI Planning and Prep (Team) • Gather and review GIS Returns On Investment • Think about: • Methodology (with versus without) • Forward looking (estimating) or backward looking (quantifying) • Who to talk to that can give insight into how an operation has been improved by using GIS • Study time frame (1, 5, 10, or 20 years) • Audience

  13. Key Points for Budget Holders • How can business impact be quantified? • What will be the initial and ongoing expenses? • What are the resources required ? • When will the business benefits be delivered? • What’s the financial case? http://www.scaug.org/resources/Documents/Return_on_Investment.pdf

  14. Conduct Interviews • Purpose: identify business processes that have been or could be improved using GIS • Take notes and record interviews • Drill down to details. Not “our snow plow routes are better” but “We trimmed 48 miles from our routes for each event.”

  15. Assess Information • Organize and document • Create lists of business process improvements • Categorize into quantifiable and qualitative benefits lists • Prioritize lists, and move everything beyond the 10 top to a “look at later” list

  16. Calculate Costs • Look at all costs associated with day-to-day operations (not project specific) • Personnel • Hardware • Software, including maintenance • IT charges • Populate year chart for study time period • Determine an inflation rate and apply through study period

  17. Benefits

  18. Generic Benefits • Save Time • Increase Efficiency • Increase Accuracy • Increase Productivity • Increase Communication and Collaboration • Support Decision-making • Aid Budgeting • Automate/Improve Workflow • Build an Information Base • Manage Resources • Reduce Costs/Save Money The Business Benefits of GIS: An ROI Approach, ESRI

  19. GIS Benefits Related to Efficiency • Creating Data • Revising Data • Locating Data • Distributing Data • Using Data Gillespie (1994) states that efficiency benefits arise when GIS is used to reduce costs of a task that, in the absence of GIS, would be handled by some other method.

  20. GIS Benefits Related to Efficiency • Creating spatial data and spatial products: The Riverside, California, Planning Board used to take up to four hours to manually produce a single map for a board meeting. They now produce an equivalent map in about half an hour using their GIS. Typical efficiency ratios of 2:1 to 5:1

  21. GIS Benefits Related to Efficiency Revising spatial data: At the City of Indianapolis, a full time draftsperson and two part time drafters were unable to keep up with base map updates that involved subdivisions. After GIS implementation, these same activities were accomplished with a half-time staff position and the base maps were kept current within a few days. Typical efficiency ratios of 3:1 to 10:1

  22. GIS Benefits Related to Efficiency Locating spatial data: Lee County, Florida frequently requires an assortment of information about land use, flood zone, watershed, zoning restrictions and variances, parcel frontage, parcel acreage, and owner verification for land development issues. GIS has reduced time requirements from hours to less than five minutes per occurrence. Typical efficiency ratios of 5:1 to 20:1

  23. GIS Benefits Related to Efficiency Distributing spatial data: Spatial data distribution on a network is instantaneous and replaces such tasks as making copies, mailing copies, replacing copies in books and files. Typical efficiency ratios of 10:1 to 100:1

  24. GIS Benefits Related to Efficiency Using spatial data: The Metropolitan Sewer District of Greater Cincinnati saved 10 to 16 workweeks in a single instance by using GIS rather than manual methods to estimate the number of customers in a particular drainage area as part of a permit renewal process. Typical efficiency ratios of 2:1 to 8:1 Graphic from www.esri.com

  25. GIS Benefits • Quantitative (Predictable) • Money/time saved • Improved efficiency related to spatial data activities • Elimination of redundant data collection and data creation efforts • Quantitative (Not predictable) • Qualitative • Does access to better information generally lead to better decisions? • What is the value of a better decision? • What is the value of better customer service?

  26. The City of Indianapolis used GIS to discover non-paying sewer customers. These additional accounts were worth about $1.3 million for the two-year period of 1992 and 1993, and have continued to see about $1 million per year in cash revenues from this one application of GIS. According to Wyandotte County, Kansas, Surveyor Murray Rhodes, the county collected $500,000 in delinquent taxes in a single year that otherwise would not have been collected under the county’s (pre-GIS) manual system. Unpredictable Benefits of GIS

  27. Scottsdale, AZ. was able to use their GIS to successfully protest findings of the U.S. Census Bureau that declared Scottsdale’s population to be some 8,000 to 10,000 less than the city’s projections. The city believes the appeal will result in $9 million of additional federal, state, and county funds from 1996 through 2000. Unpredictable Benefits of GIS • The Metropolitan Sewer District of Greater Cincinnati reported that for the first time ever --sewer system problem areas were being analyzed by matching complaint locations with storm event, frequency, and proximity to other complaints.

  28. Qualitative Benefits of GIS • Faster and better public service • New services and products • Increased design and planning capacity • Increased analytic capacity • Increased interagency communication • Improved decision making • Increased transparency

  29. Calculate Benefits • Work with the priority list • Look for ongoing benefits of really significant one time winners • Consider factors that impact the yearly value of the benefit (inflation(+), ramp-up(-))

  30. Calculate Benefits from Priority List “We trimmed 48 miles from our snow plow routes per event.” • Cost of gas • Other costs of equipment operation and maintenance • Personnel time • Average events per year

  31. Prepare ROI Report • Make it interesting: add graphics, charts, maps. Newspaper format? • Use conservative numbers (use the lowest number if given a range) • Be transparent about assumptions and methodology • Add a section for qualitative benefits – these are compelling (and not everyone is a numbers person)

  32. Prepare ROI Report • Prepare for several review iterations • Include a non-technical reviewer • Include an executive summary that highlights the methodlogy and results

  33. Jim Sparks Indiana Geographic Information Officer (317) 234-5889 Jsparks@iot.in.gov Questions

More Related