"This was a significant and ground-breaking piece of work. It was very comprehensive and will help us prioritise future development.” Mark Morrell, intranet manager at BT
While intranets and portals are known to play a vital role in the efficient running of major organisations, measuring how much, in financial terms, an intranet is actually worth has long been a major sticking point for intranet professionals.
To fill this gap, IBF has developed its Financial Value benchmarking methodology. It means you can finally put a monetary figure on the value of your intranet assets and services.
Financial Value benchmarking identifies and quantifies the exploited and unexploited value of the intranet in terms of cost savings, revenue gains and reduced risks. It enables you to prove the business case and shows you where to invest for maximum return.
Specifically, the model gives you:
a top-line financial value for the intranet and/or portal and related services
a breakdown of value by functional area
an estimate of the exploited and unexploited value per employee
recommendations for how further financial value can be realised
value comparisons with other organisations (these will build over time and are strictly confidential).
We present the findings of the evaluation in an easy-to-absorb report that is credible to top executives including chief financial officers and chief information officers and their equivalents.
How it was developed Our Financial Value evaluation and benchmarking methodology was developed by IBF in partnership with independent financial analysts and with IBF members BT, Sara Lee, Nokia, BP and Lloyds Banking Group. We carried out a successful pilot Financial Value evaluation of BT’s intranet in late 2008.
Early on, we found that the exploited financial value of intranet services within major enterprises runs to several hundred million dollars a year, dwarfing the investments being made. The unexploited financial value levels are equally striking.
Purchasing Financial Value benchmarking A comprehensive, organisation-wide Financial Value evaluation is available to purchase as a complete package: IFVB 4 - 28 service packs (and growing); or as IFVB 3 - six service packs; IFVB 2 - twelve service packs; IFVB 1 – two service packs. To learn more about purchasing a Financial Value benchmark of your intranet or portal, please contact Paul Miller at paul@ibforum.com.
From January 2010, IBF Members will be entitled to our new, fifth benchmarking area: Financial Value. This consists of two service packs from a selected set. Members can also purchase additional service packs.
More on Financial Value Benchmarking
View this video clip to see the Intranets Live segment from 7 April, 2009 ‘What is the Financial Value of your Intranet?’ and hear what BT had to say (at 14:30 minute mark).
On 6 January 2010 IBF made the annoucement of the new benchmarking area, and more recently published an article which outlines the key benefits of understanding the implications of major investment in your intranet.
Over at Intranet Life, in his recent Video Blog Paul Miller comments on why it is essential to know the key exploited and unexploited value areas of your intranet.
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While intranets and portals are known to play a vital role in the efficient running of major organisations, measuring how much, in financial terms, an intranet is actually worth has long been a major sticking point for intranet professionals.
