How an Intranet can save your business money$$

Basic ROI calculation of Intranet benefits: How does OfficeAbility Intranet help customers to save money?


It is too common that companies do not know how to go about calculating cost:benefits that could be realized by introducing an Intranet. One reason for this is that the benefits are often seen as being intangible and calculations complex.

Intranets create value and save money


Most often people using an Intranet see the benefits as simply being obvious; or the complete opposite when referring to outdated technologies and under-utilized Intranets.

One example of how Intranet value can be calculated is by using simple ROI calculation. In the current economic times, it is a necessity that technology investment should either save or make customers money. Modern Intranets are regarded as having high value, where benefits greatly outweigh the cost. This is because of time and effort saved in finding information, reducing printing/distribution, reducing errors, reducing travel requirements, and other measures that can be calculated.


Below is a simple ROI calculation based on some Gartner research that can be applied to most companies. In this case the 14.9 hours spent seeking information is an average value that, in the wash, illustrates a compelling benefit of an Intranet that provides tangible value. 

Sample ROI Calculation with some assumptions:

Single worker managing and searching for important business information monthly

(Gartner research)

14.9 hours

Cost to company for that time spent by that single worker monthly

$350.00

Monthly cost to company with 50 workers

$17 500

Monthly time saved by using OfficeAbility

Minimum 50 %

$8,750.00

Annual value of time saved

$105 000

TOTAL ANNUAL VALUE SAVED, COMPANY WITH 50 WORKERS

$105 000


The above example shows provides a compelling case for direct cost savings where an organization can help workers find information and manage documents more efficiently.

Below is an example from an IKEA case study outlining some of the quantifiable savings that were realized upon implementation of a new Intranet. 

Intranet ROI Example: Cost savings attributed to IKEA Intranet:*

Paper cost savings

$192,000.00

Streamlining processes / Self-serve travel process saves

$4,590.00

Modernizing communication technologies

$90,000.00

Self-service hr

$219,000.00