9. Calculating 4 Types of ROI Savings
• Downtime Reduction
• Task Automation
• Mean Time to Resolution (MTTR)
• Soft ROI
10. Time
spent on
single
manual task
Frequency
of performing
task per month
Cost
per
hour
12
monthsx x x =
Yearly
Savings
Calculating Task Automation Savings
Example
5 Hours
server
maint.
x 4 Times x $75 x 12 =
$18,000
Year
11. Which Tasks Should I Automate?
• Freeing up server disk space
• Password Resets/Unlock Accounts
• Shutting down remote computers
• Monitoring Files and Folders
• Restarting Windows services
• Automating SQL Queries
• Changing service account passwords
• Monitoring Windows Event Logs
• Automating VMware tasks
• Incident Escalation Process
12. Hourly
Loss
of
revenues
in $US
Average Duration
of system
downtime (in hours)
Outages
per
year
x x =
Yearly
Downtime
Costs
Calculating Downtime Savings
Step B
Yearly
Downtime
Costs
x
Reduced
Outages (%)
due to automation
=
Yearly
Savings
Step A
13. Hourly
Loss
of
revenues
in $US
Average Duration
of system
downtime (in hours)
Outages
per
year
x x =
Yearly
Downtime
Costs
Calculating Downtime Savings
Step B
Yearly
Downtime
Costs
x
Reduced
Outages (%)
due to automation
=
Yearly
Savings
Step A
Example
$100,000 1 hour 12 $1,200,000
$1,200,000 10% $120,000
14. Incidents
# per
month
Time
to resolve
each incident
Cost
of
personnel
per hour
x x =
Yearly
Cost of
Incidents
Calculating MTTR Savings
Step B
Yearly
Cost of
Incidents
x
Reduced Time
to Resolve (%)
due to automation
=
Yearly
Savings
Step A
x
12
months
15. Incidents
# per
month
Time
to resolve
each incident
Cost
of
personnel
per hour
x x =
Yearly
Cost of
Incidents
Calculating MTTR Savings
Step B
Yearly
Cost of
Incidents
x
Reduced Time
to Resolve (%)
due to automation
=
Yearly
Savings
Step A
x
12
months
Example
100 1 hour $75 12 $90,000
$90,000 50% $45,000
16. Calculating Soft ROI Savings
• Training
• Knowledge Management
• Consistency and Auditability
• Human Errors
• Compliance and Regulation
17. Calculating Total ROI Savings
Task Automation $18,000
Downtime Reduction $120,000
MTTR Improvement $45,000
Soft ROI $???,???
Total Savings
------------
$183,000
=========
Year 1
$18,000
$120,000
$45,000
$???,???
------------
$183,000
=========
Year 2
$18,000
$120,000
$45,000
$???,???
------------
$183,000
=========
Year 3
$549,000
Thank you for joining us today. My name is Guy Nadivi, and I’ll be your host/instructor for this webinar that will demonstrate how to calculate the ROI of IT Process Automation.
A little background on us.
So how can you be confident that we know what we're talking about when it comes to calculating the ROI of ITPA? The answer my friends is not blowin' in the wind, as Bob Dylan once sang. The answer is that we know how to calculate the ROI of ITPA because we've been figuring it out with our customers for years now. As I mentioned, we've been doing ITPA since 2007, which makes us a pioneer in this field, and thus we had a head start in not only answering this question, but asking it in the first place.
We decided to put on this webinar because we talk to a lot of people who say that intuitively, IT Process Automation makes a lot of sense to them and they can clearly see that this is the direction the industry is going in. However, they aren't sure how to justify it from an ROI standpoint. So we're going to show you the ROI.
More importantly, we're going to show you the formulas which you can use to calculate ROI in your own environment, and which we've distilled from many years of working with our customers to determine what ITPA accomplished for their real-world environments.
I'm not sure if everyone participating in today's webinar got the memo, but once we share these tightly guarded ROI formulas with you, you'll need to keep them a secret.
Just kidding. You're welcome to share them with anyone and everyone you know, and even provide us with feedback if you
think they can be improved.
Today's webinar is going to focus on 4 ROI formulas:
1. Task Automation - The monetary value of freed-up time for IT personnel. ITPA eliminates the need for a lot of manual
tasks. Applying this formula to each task you plan to automate will help you figure out the the annual savings per task.
2. Downtime Savings - Downtime costs your organization both productivity AND business losses. Reducing or avoiding
downtime altogether, yields big savings in avoided outage time. This formula determines how much you save from that.
3. Mean Time to Resolution (MTTR) - How long, on average, does it take you to restore a system to its operational state
after a failure? Minimizing that time with ITPA can yield some of the biggest quantifiable savings for an organization.
4. Soft ROI - Last but not least, let's also assign a value (monetary or otherwise) to benefits which are valuable, but
difficult to measure.
Use ROI eBook pages 8-9 for narrative.
At this point, some of you may be wondering which tasks you could automate that would yield these kinds of savings. Well, there are literally thousands of tasks that any data center or network operations center can automate, but here are the 10 most popular tasks that our customers automate.
1. Password Resets/Unlock Accounts: In some cases, as much as 40% of your IT support personnel's workload is comprised of this simple task, which is almost universally handled manually. BTW - The Burton Group (now part of Gartner) estimates that password management costs companies $250 per user, per year. Add up those charges for your own environment and imagine how much of an impact eliminating that cost would have on your organization's bottom line!
2. Freeing up server disk space: One of the most frequent causes of unscheduled downtime for applications are critical disk space shortfalls. In fact, insufficient disk space on one of your SQL Servers, IIS applications, or Exchange server can be more disruptive than any other system or network failure. Automating this task is a must.
3. Shutting down remote computers: This one is all about reducing energy consumption and cutting IT operational costs. Automating the process of putting all network-connected idle computers or servers on standby mode saved one of our customers (a large bank) over $2,000 per day. Nearly 3/4 million dollars over the course of a year. How about that for ROI?
I'll go through the rest of these kind of quickly so we can move on to the next formula, but here they are and they're great candidates for automation in just about any environment:
Monitoring Files and Folders
Restarting Windows services
Automating SQL Queries
Changing service account passwords
Monitoring Windows Event Logs
Automating VMware tasks
Incident Escalation Process
Use ROI eBook pages 11-12 for narrative.
Be sure to reference Gartner’s & Avaya’s Cost of Downtime studies http://blogs.gartner.com/andrew-lerner/2014/07/16/the-cost-of-downtime/
Use ROI eBook pages 14-16 for narrative.
Use ROI eBook pages 18-19 for narrative.
Use ROI eBook pages 21-22 for narrative.
Well, this is what we think it should look like. Easy to use with an intuitive drap-and-drop interface that requires no programming skills. All the user needs is an understanding of the task being automated, and they can hit the ground running with eyeShare. Its simplicity helps drive the ROI savings because it makes it easy to automate many, many processes.
Just to quickly explain what you’re looking at, here on the left is a toolbox populated with pre-built activities. You can think of them as lego building blocks. Some activities are platform-specific for Active Directory, Cisco, VMWare, etc., while others are more generic.
You take those lego building blocks, i.e. activities, and drag them on to the visual workflow designer screen. Each one of these colored objects represents an activity that was dragged in from the left. You then assemble these lego building block activities in the order that you want them to execute, including any conditional logic you want to incorporate into your process. Once you have everything assembled in the order you want, that’s an automated workflow.
Finally on the right, you can also get started simply by choosing a pre-built template from the built-in library. Each template included with the base product was actually contributed to us by our customers, who built, debugged, and streamlined them in real world environments. So they’re a great way for you to save time in automating your own operations.
Well no, that’s actually not all there is to it. In fact, what happens next is I’d like to assign you all some homework.
Don’t worry, it’s no harder than what we’ve already done right here on our own presentation this morning.
Following today’s webinar, everybody who participated will be getting their own guidebook to calculating the ROI of IT Process Automation. It’s available for free download on our website, but we’ll save you the effort and forward it to you directly via email. It’s brief but very concise. Please go through it when you get the chance, and apply the formulas to your own environment. Let’s see what you come up with.
Alternatively, if you don’t want to do the homework, you can outsource it to us, because you can outsource just about everything these days. Just send an email to me, and I’ll be happy to schedule you for a free, 'no obligation' consultation that will help you quantify the return on investment of IT process automation in your environment.
When we do one of these consultations, we utilize our own comprehensive spreadsheets and ROI knowhow, to help you:
Quantify IT automation returns for each project and task
Assess realistic costs for project implementation
Measure payback period for your investment
And with that, I’d like to open up the last portion of our webinar to any questions our participants might have.
Well, thank you all for attending our webinar today. If you think of anything else that you would like to ask, my email address is very easy to remember, as is our website, both of which are on your screen now.
Have a great rest of the day, everyone!
