Measuring Intranet Return On Investment




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Increased Productivity
Productivity increases from intranets arise from more rapid and easier access and exchange of information. Intranets also allow for flexibility in the time of delivery of information. For example, by making training materials accessible through an intranet to the desktop, employees can schedule training during lull times, rather than be interrupted during key projects.

Benefits from increased productivity are more difficult to measure than savings from the reduced cost of printing and distributing manuals. Businesses that budget, track and bill employee time in hourly increments, such as accountancy, consulting and law firms, have an advantage in this regard.

In addition to making information more easily and quickly accessible, an intranets facilitate a global exchange of information that enables true "24x7" organizational productivity. For example, an intranet linking design centers in Asia, Europe and the US helped engineers craft the 1996 Ford Taurus.

Sales support is the arena in which intranets may ultimately generate the greatest return on investment. Here, productivity gains are measured in sales closed rather than minutes saved. Many companies are using intranets to efficiently connect the field sales force personnel to the home office and link sales representatives each other to obtain product information, or collaborate on pursuing sales leads.

For example, a major pharmaceutical firm recently announced plans to launch an integrated Internet/intranet and extranet program to launch three new prescription drugs. The public external Web site offers information for consumers. The intranet gives 2,500 mobile sales representatives access to a database of product information, federal regulations, research tools and marketing materials to use in calling on physicians. Sales managers will also be able to send sales reports over the Web to headquarters. The sales representative can also give the physician a password to use in accessing the company's extranet, which contains information on drug research, testing and medical journal articles.

By integrating its external and internal Web sites, a company can create a powerful, holistic information system to distribute and gather information from customers to tailor the sales approach to their needs, close the transaction, and provide low cost after the sale service. In today's highly competitive global marketplace, that translates into a competitive advantage in terms of shorter cycle times in identifying and closing prospects, and building ongoing customer relationships to maintain and build business.





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Measuring Intranet Return On Investment

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