Case Study: Emerson
Process Management

Learn More about How emerson Process Management Improved Global search and retrieval

Project Start Date: Initially began 1998

Initial Need for ECM: Easy, global search and retrieval capability for Engineering and Quality documentation. Goal: Eliminate millions of pages of documents that were being printed each year Solution Requirement: All functionality, publishing, management, and retrieval be Web-based Results: Rapidly growing implementation. now mission critical with over 200 connected applications.

ESTIMATING COSTS:

Ref. Costs

Ct Initial internal implementation

Dt Internal labor

Et Internal labor—business

Ft Software licences & maintenance

Gt Hardware costs

Ht Professional service fees

It Document scanning

Total QUANTIFIED BENEFITS: Ref. Benefits

Jt Report printing savings

Kt Brochure publishing savings Lt Eliminated microfiche product Mt Reduced internal mailing costs Nt Reduction in headcount

Ot External cost savings

Pt Incremental output per worker Total

RISK (ADJUSTMENTS TO COSTS AND BENEFITS): Ref. Risk adjustments to costs

Q1 Initial internal implementation costs Q2 Internal labor costs—IT

Q3 Internal labor costs—business Q4 Software licenses & maintenance Q5 Hardware costs

Q6 Professional service fees

Q7 Document scanning

Ref. Risk adjustments to benefits R1 Report printing savings

R2 Brochure publishing savings R3 Avoided microfiche production R4 Reduced internal mailing costs R5 Reduction in headcount

R6 External cost savings

R7 Incremental output per worker

Initial

$14,000

Watch video

$30,500

$20,000

$8,000

$72,500

Year 1

$69,971

$34.467

$79,300

$20,000

$60,000

$263,736

Year 2

$110,205

$72,381

$263,800

$60,000

$78,000

$584,386

Year 3

$154,288

$114,000

$210,200

$30,000

$108,000

$68,500

$684,988

Year 4

$162,000

$159,600

$200,000

$24,000

$135,000

$65,500

$746,100

Total $14,000 $496,464 $380,448 $783,800 $154,000 $389,000 $134,000

$2,351,712

Present value $14,000 $381,256 $285,811 $615,137 $126,700 $300,357 $96,202

$1,819,463

Learn More about the total economic Impact of this solution

Year 2 Year 3 Year 4
$129,575 $201,575 $221,575
$299,200 $1,452,000 $1,672,000
$375,000 $375,000 $375,000

$27,400 $37,300 $43,300 $53,300 $159,000 $278,250 $496,681 $644,228 $78,000 $78,000 $158,000 $158,000 $48,600 $70,040 $73,542 $180,248 $346,350 $1,267,365 $2,800,098 $3,304,351

Year 1

$33,350

Total $586,075

$3,423,200

$1,125,000 $161,300 $1,578,158 $472,000 $372,431

$7,718,164

Present value

$440,190 $2,480,180 $847,790 $124,672 $1,187,684 $361,996 $280,432 $5,722,944

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Risk Scoring
High
Medium
Medium
Low
Low
Low
High

Low
High
Medium
Low
Low
Low
Low

Low 100% 100% 100% 98% 98% 98% 100%

90% 50% 80% 90% 90% 90% 90%

Most Likely
100%
100%
100%
100%
100%
100%
100%

100% 100% 100% 100% 100% 100% 100%

High Risk-adjusted 125% 108% 115% 105% 115% 105% 105% 101% 105% 101% 105% 101% 125% 108%

105% 98% 95% 82% 102% 94% 105% 98% 105% 98% 105% 98% 105% 98% SoURCE: Forrester Research Inc.

GET TECHNOLOGY RIGHT

Estimating Flexibility: According to Mark Heindselman at Emerson, “There is not a lot of work to (the implementation). once you do it once, you can leverage it over and over again.” Therefore, there is a flexibility benefit because a small incremental investment in rolling out another project can result in significant benefits.