Wednesday | 3 December, 2008
Xtreme ROI: Four projects that blew the doors off
How four companies achieved super payback from IT projects
Mary Brandel (Computerworld (US)) 12/02/2008 12:18:19

It has become a cliche to talk about IT project cost overruns and blown deadlines. When an IT project achieves a good return on investment, that's news.

But particularly in tough economic times, starting a project without knowing whether it will reap returns can be a foolhardy, if not career-ending, proposition.

To achieve high ROI, you have to know the key elements that help create it. You also have to be willing to take out the calculator and prove it. "There's a lot of ROI out there," says Tracy Black, senior vice president of IT at JB Hunt, one of the largest transportation logistics companies in North America. If you spend just a bit of time looking, you can find it."

We asked four companies with super project returns how they did it.

1. Company: Animas, a Johnson & Johnson company that manufactures insulin pumps

Project: Streamlining order management in the sales call center

Duration: Four months

Cost: $20,000

ROI: $250,000 per month in labour savings and increased sales

Untangling business processes is one of the most satisfying things that IT can do, especially when it yields unexpected benefits. Just ask Jean Campbell, a business analyst at Animas, and Bogdan Butoi, the company's chief technology officer. They knew they'd get labour savings of up to US$40,000 per month when they revamped Animas' order management processes with a new outbound calling system, real-time reports for call center representatives and a wizard-based order-taking script. But they didn't anticipate streamlining the process so effectively that reps would be able to process 2,000 more orders per month.

The outbound calling system replaced a manual process that required more than 10,000 calls per month to remind customers to reorder insulin supplies. By spending US$10,000 to automate this process with a voice-over-IP system that runs on Animas' existing voice network and then integrating it with the company's homegrown customer relationship management system, the IT group freed up 33 additional staff days per month that could be reallocated toward processing orders.

Success was immediate, Campbell says. The day the system was launched, the shipping manager came upstairs to the order department, demanding to know why she was suddenly handling 200 extra orders. "That piece came as a surprise," Butoi says.

The additional US$10,000 went toward designing and implementing a wizard-based system that standardizes the order-taking process, reducing average call times from five minutes to three. An automated validation script verifies prescription and insurance information in customer records, eliminating another manual approval process.

Finally, real-time reports enable reps to see orders in their queues that are unfilled because information is missing. Previously, reps couldn't see that until a daily report was issued.

Keys to Success

  • Accurate analysis of where the order management process was bogging down. "We spent a lot of time with users, and we created a lot of iterations of the wizard," Campbell says.
  • No false deadlines. "We said we'd implement it as soon as it was ready," Butoi says.
  • Extensive testing of the outbound calling system, resulting in a bug-free release. "Patients immediately bought into it," Butoi says. "It [had] their confidence from the very beginning."

Computerworld Buyer's Guide - Vendors Matched to this Article
Computerworld Buyer's Guide - Vendors Matched to this Article
Additional Resources
Executive Guides
Whitepapers
Zones
Zone logoZones provide focussed content from Computerworld and leading technology partners.
Newsletter Subscription
Sign up for our Computerworld newsletters!
RSS Feeds
Market Place

 

Smart SOA World Tour

Discover how SOA can create smarter outcomes for your business.

Attend and learn:

  • How SOA is helping leading companies to become more agile
  • Where you should be applying SOA processes in your company
  • The top SOA implementation mistakes to avoid

Click here for more information.
Whitepaper

How to improve employee productivity in small and medium businesses

U.S. businesses lose 5.4 billion productive hours through employees searching for information annually. Avoid the same inefficiencies occurring in your business. Read on to discover the productivity issues facing SMBs and how the Oracle Application Express (APEX) can improve employee productivity and enhance development efficiencies.

Enterprise IT Buyer's Guide
Find Technology Vendors Fast
 
Find vendors by name | Find by category
Sponsored Links