This presentation describes a Return on Investement study of King County GIS in Washington state, covering the period 1992 through 2010. The study was conducted by Dr. Richard Zerbe and Associates from the University of Washington School of Public Affairs.
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King County GIS ROI Study
1. Using ROI Methodology to Document the
Benefits of King County GIS
Esri Annual User Conference
San Diego, California - July 24, 2012
Greg Babinski, MA, GISP
Finance & Marketing Manager
King County GIS Center
Seattle, WA
URISA President
Summit Chief Editor
2. Agenda
Introduction & background to the GIS ROI Study
GIS ROI Documentation Studies
2010-2012 Oregon/King County GIS ROI Study
Preliminary Results
Next Steps
Discussion
4. ROI Estimates & Benefit-Cost Analysis
Common tool for analyzing & configuring development
plans
Typically result in an estimate or forecast of business
benefits
5. King County,
Washington
Microsoft
Boeing
Paccar
Nordstrom's
Amazon
Starbucks
Port of Seattle
Weyerhaeuser
Population (1,931,000 (14th most populous US county)
Univ. of Washington
Area: 2130 square miles (sea level to 8,000‟)
39 incorporated cities Google
Viable agricultural and private forestry areas Skype
Remote wilderness & watershed lands
8. King County GIS - Development History:
Originated with 1992 PlanGraphics study
1992 Benefit Cost Analysis
PlanGraphics identified 126 business applications
and a $22 million capital cost estimate
1992-1994 King County – Seattle Metro merger
1993 joint King County – Metro GIS scoping plan
– reduced $6.8 million scope approved by King
County Council
1993-1997 GIS capital project executed
1997 KCGIS O&M begins
2002 KCGIS Consolidation implemented
9. 2012 KCGIS Development:
500+/- desktop GIS users
100,000 annual internal web based GIS user sessions
2.2 million annual external web based GIS user sessions
50 GIS professionals
GIS use expanded from 12 to 35 county departments and
offices
But where are we really on the optimal development of
GIS in King County?
What was (is) our ROI?
10. GIS ROI Documentation Studies?
Why are they not required?
Why are they not performed?
17. Oregon/KCGIS GIS ROI Study Project
Conceived during 2009 URISA AC in Anaheim
Approach finalized during 2009 ULA in Seattle
State of Oregon & King County joint funding
KCGIS 2010 Priority Initiative
Managed by KCGIS Center
18. KCGIS GIS ROI Study
May 2010 RFP sent to targeted consultants
June 2010 consultant selection
August 2010 contract signed
July 2010 work began
September & October 2011 Preliminary Results Released
March 2012 Final Report Published
19. KCGIS GIS ROI Study
Consultant Team from UW Evans School of Public Affairs:
Prof. Richard W. Zerbe
Danielle Fumia & Travis Reynolds
Pradeep Singh & Tyler Scott
20. KCGIS GIS ROI Study
Consultant Team from UW Evans School of Public Affairs:
Benefit-Cost Analysis Center
21. KCGIS GIS ROI Study
Scope of Work:
Literature Review
Qualitative Interviews (n = 30)
Quantitative Survey (n = 200)
Final ROI Report
Revised Interview/Survey Instruments for future studies
22. KCGIS GIS ROI Study: Methodology
With or without survey methodology:
How has GIS altered agency output levels?
Benefits associated with FTE reductions to produce the same (pre-GIS)
level of output
Benefits associated with enhanced production with the same FTE levels
Three stage analysis:
Interview agency heads and key employees to assess the types of
applications and business uses. Interviews were used to build an
employee survey.
Employees and managers across King County responded to the survey to
record their pre and current (or with vs. without) GIS productivity by
output types.
Interview and survey results were compiled by output type, agency, and
productivity levels. Results were then monetized.
Monetized benefits compared to detailed GIS capital O&M,
and end-user costs
24. KCGIS GIS ROI Study Results
“The most conservative estimate presented
finds that the use of GIS has produced
approximately $775 million in net benefits
over the eighteen year period from 1992 to
2010….
Thus a reasonable estimate of total gains is
between $180 million and $87 million in
2010.”
25. KCGIS GIS ROI Study Results
Theoretical basis for cost and benefit calculations
26. KCGIS GIS ROI Study
Future Steps:
Article in ICMA ESRI Press Book of GIS for Elected Officials
Likely articles by Dr. Zerbe & colleagues in GFR, URISA Journal
Analyze detailed department results
Analyze detailed benefits by output type
Analyze detailed benefits by productivity type
Tell our bosses - great interest within KC government
Compare with Twin Cities/Metro GIS Parcel Data ROI study
Compliment & Inform Multnomah County ROI study
URISA ROI Workshop development
Refine methodology
Encourage/support more studies
27. KCGIS GIS ROI Study
Questions & Answers:
At what stage is KCGIS in the total potential business use of GIS?
Are the KCGIS results „good‟?
How do we know?
Do we need similar studies of other large counties?
What about a single „latitudinal‟ study of 10 mid-sized cities in
Washington & Oregon?
Are government agency officials not now compelled to pursue full
GIS development?
28. Acknowledgement:
State of Oregon GIS and Cy Smith, Oregon GIO
KCGIS Technical Committee
Richard O. Zerbe & UW GIS ROI Study Team
KCGIS Center Interview team:
George Horning, Manager
Greg Stought, Enterprise Services Manager
Dennis Higgins, GISP, Client Services Manager
Debbie Bull, GIS DBA
Greg Babinski, GISP, Finance & Marketing Manager
Questions, Comments & Discussion
Learn More:
• ArcNews: Summer 2012: http://www.esri.com/news/arcnews/summer12articles/king-
county-documents-roi-of-gis.html
• Access full report on King County web site: www.kingcounty.gov/gis
29. Greg Babinski, MA, GISP
URISA President-Elect
SUMMIT Chief Editor
Finance & Marketing Manager
King County GIS Center
201 South Jackson Street, Suite 706
Seattle, WA 98104
206-263-3753
greg.babinski@kingcounty.gov
www.kingcounty.gov/gis