4 - Kuwait Oil Company

• Applying standards andgovernance like retention polices• Managing critical business emails,archiving based on the businessvalue of the content or legalobligations and making themactive and accessible wheneverand wherever needed• Optimizing storage capacity bycreating and enforcing an effectiveretention policy to enable disposalof expired content or content thathas no legal or business valueIncrease production capacity bydecreasing the time to get wells intoproduction by:• Getting the right documents to theright people at the right time3. Define the Business Value andAssessment ResultsThe financial analysis was donebased on the following key metricsand assumptions:• The estimated budgetary cost: KD5 million• Contract duration: 5 years• Number of knowledge workers(using ECM system): 5,000 users• Average monthly wage perknowledge worker: KD 1,200• Average documents generated peryear: 4 million• ECM solutions benefits begin: 9months after kickoff date• Adoption business benefit curveduring the project period (startingfrom deployment): 7% for Y1, 15%for Y2, 15% for Y3, 15% for Y4and 15% for Y5 adoption, whichis the assumption of the yearlybusiness benefit• CITG worked closely withBVA consultants to develop abusiness value ROI templatethat incorporates the associatedcalculations and helps translatethe collected data into accurateand objective business-valuemeasurements. This template usesROI analysis, which includes, inaddition to traditional cost andbenefit summaries, soft benefitssuch as employee productivityand time savings.The calculated benefits include:• Reduce paper storage anddistribution costs with ContentManagement• Increase knowledge workerproductivity with CaseManagement• – Increase knowledgeworker productivity with ContentManagement• – Reduce storage costs withInformation Lifecycle Governance• – Increase productioncapacity by decreasing the time toget wells into productionFigure 5: Savings by year for a 5 year contractROIRisk Adjusted ROINPV SavingsPayback Period (includingdeployment period)2.51%1.78KD 5,394,76613 monthsThe Company will achieve 2.51% as ROI returnon investment which is the ratio of the net gainfrom the ECM program within 5 years based onthe above assumptions. The 13 month PaybackPeriod is the time needed to recoup the cost ofthe ECM investment.ConclusionThe study was conducted including some of theECM components solutions and shows that ECMwill be promising to the objectives and overallstrategy of the organization by reducing costsand increasing effectiveness and productivity.October - December 2012 19