Xtreme ROI: Four projects that blew the doors off
How four companies achieved super payback from IT projects
Computerworld - It has become a cliché 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 J.B. 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 Corp.,
a Johnson & Johnson company that manufactures insulin pumpsProject: Streamlining order management in the sales call center
Duration: Four months
Cost: $20,000
ROI: $250,000 per month in labor 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 West Chester, Pa.-based company's chief technology officer. They knew they'd get labor savings of up to $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 $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 $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."



- Excel 2010 Cheat Sheet
- Register for this Computerworld Insider Cheat Sheet and gain access to hundreds of premium content articles, guides, product reviews and more.
- Overcome Top 7 Admin Challenges of Active Directory
- As Active Directory's role in the enterprise has drastically increased, so has the need to secure the data. Gain insight on creating repeatable,...
- Insiders Can Ruin Your Company. Take Action.
- Did you know that 80 percent of threats to an organization come from the inside? The threat from insiders is often overlooked in...
- Smarter Commerce is redefining value chain visibility
- Smarter Commerce is redefining the value chain in the age of the customer. It starts with putting the customer at the center of...
- Identity Governance: The Business Imperatives
- This white paper describes the business challenges and opportunities that are driving interest in Identity Governance while discussing considerations your organization should make...
- The Executive Buyer's Guide to Project Portfolio Management
- The Innotas Executive Buyer's Guide provides you with a concise overview of Project Portfolio Management (PPM) and delivers important buying criteria to help... All Management and Careers White Papers
- Live Webcast
Integrated IT Operations Management in the Cloud - Join award-winning technology editor Stan Gibson and Andrew White, CMO at Numara Software, to learn how asset management and service management are converging...
- Integrated IT Operations Management in the Cloud
- Join award-winning technology editor Stan Gibson and Andrew White, CMO at Numara Software, to learn how asset management and service management are converging...
- Optimizing Networks for the Cloud
- Join guest speaker, Rohit Mehra, IDC Director of Enterprise Communications Infrastructure, to explore current trends, discuss best practices for optimizing Data Center and...
- Apps QuickStart Series Part 2: Designing and Deploying SQL Server on VMware vSphere
- Download this webcast to learn about the design considerations for virtualizing SQL workloads, performance and scalability information and high-availability options, as well as...
- Apps QuickStart Series Part 1: Designing and Deploying Exchange 2010 on VMware vSphere
- Download this webcast to learn the virtual hardware design considerations for Exchange 2010, deployment using the building block approach, options for high-availability and...
- Customer Spotlight: How IPC The Hospitalist Company Implemented Oracle on VMware
- Have you been looking to hear about customer's experiences with the new VMware vCenter Site Recovery Manager product? View this webcast to learn... All Management and Careers Webcasts