Measuring Intranet Return On Investment




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Measuring Intranet Return On Investment

by George McGrath and Anthony Schneider                                        TalkBack

The surge in interest and media coverage of intranets recalls the early and heady days of the World Wide Web's burst on the corporate mindscape. Intranet is the new corporate hero, dazzling the covers of business magazines and leading the panel discussions at business conferences. It seems that about the only thing intranets can't do is make coffee.

Review the existing return on investment studies or question company executives on their claims of multimillion dollar savings, and one finds that calculating intranet ROI is more art than science and more guesstimate than calculation. Like the sweeping claims made for corporate Web sites a few years ago, many of the projections of ROI measured in thousands of percent may fade as organizations begin to experience the cost of ramping up, maintaining and administering intranets across thousands of users. Not to mention incorporating the inevitable upgrades and conducting enterprise-wide training.

That said, it is apparent to anyone who has used this technology that intranets offer tremendous potential as a communication, collaboration and knowledge building tool that will create new, more efficient ways of doing business. Selling the benefits to senior managements who do not have this "hands on" experience can be more difficult. They are balancing many other information technology investments, such as costly "Year 2000" conversions, and want to see where and when an intranet will generate a payback.

The key is to link intranet ROI to bottom line issues that senior management cares about. These include cost savings, increased productivity and gaining competitive advantage.





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Measuring Intranet Return On Investment

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