i-Engine changes to PortalCMS

Return on Investment of your Intranet: Introduction

i-Engine continues under the new name PortalCMS as of 2010!

Three years ago a project had to cost $1 million before a comprehensive ROI analysis was required.
In 2002, CIOview saw that number drop to $250K for Fortune 200 companies. Now ROI studies are common for IT investments of $125K or less. The continual lowering of the threshold for a required ROI analysis clearly is a function of the tough economic times.
(Source: Scott McCready, How To Craft An Effective ROI Analysis, A CIOview White Paper, April 2003)

The following summary white paper is intended to stimulate thought and discussion for measuring the return on intranet and corporate portal investment. It also documents different benchmarks and success stories of leading enterprises that successfully measure such value.

Intranets and corporate portals are widely valued for streamlining business processes and driving operational efficiencies, enhancing communications and collaboration between employees, management, customers, and partners, and significantly reducing the cost of internal business functions. However, intranets and corporate portals can be extremely complex systems and therefore, at times, expensive endeavors.

Despite the expense, many organizations understand the implicit and/or explicit value and are therefore willing to make notable intranet investments. A study published in 2002 by the UK Department of Trade and Industry, revealed intranet and extranet adoption at about 60% of North American, UK, German and Swedish companies.

A 2001 META Group study of Global 2000 companies found an adoption rate implemented or developing intranets at 85%. It is not only large multi-nationals that understand the benefits and potential rewards of a well-funded, high-value intranet.

According to Modalis Research, more than 70% of all small and medium-sized businesses (SMEs), including government agencies and non-profits, believe that having an intranet is important and either have intranet or plan to deploy one (2001).

The growing popularity of portals, perhaps the hottest intranet system or application today, is highlighted in a recent forecast by Boston-based Delphi Group, which estimates that portal software revenues will approach US $1 billion by 2003, up from US $178 million in 1999. Delphi Group defines a portal as a single point of integrated, personalized online access.

While early intranet deployments benefited communications, sales and marketing, and human resources, other corporate areas including operations, manufacturing, customer service, engineering, finance, IS/IT are also now reaping the rewards. However, while implicitly understanding an intranet’s value is second nature for many leading organizations, measuring the value remains a significant challenge.
Once planned, executed and launched, an Internet, intranet or extranet site cannot rest on its laurels. The pace of technology, customer and employee demands, and competitive pressure require that an intranet achieve and beat expectations and continually show measured value.
As with any critical business system, the intranet must be delivering measurable performance and remain accountable to the investment. If you are not measuring your site’s value, then you risk failing the needs and demands of customers, employees and management.

Source: Prescient Digital Media

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Glossary

Return On Investment (ROI)
ROI is a measurement, expressed as a percentage, of the total value of a given investment divided by the cost of the investment. Example: a
$100 investment is worth $150 one year later, yielding a one-year ROI of 150%.

Intranet
A private network, similar to the Internet and using the same protocols and technology, contained within an enterprise. It may consist of many inter-linked local area networks (LANs), desktop computers, websites and portals, and e-mail system(s).

Corporate Portal
A primary website on the enterprise intranet. A web-based gateway to most, if not all, tools and information on the enterprise intranet. The portal can be a "catch all" for all of the intranet, or a business unit or function specific portal (i.e. Sales or HR portal).