Intranet ROI Guesswork - 11/13/2003

Only 6% of organizations take ongoing measurement of their corporate intranet investment according to a Prescient ROI study.
TORONTO – The first intranet return on investment (ROI) study of its kind, conducted by Prescient Digital Media, finds that precise ROI measurement is lacking in a vast majority of organizations, with most making only rough estimates (or guessing).
 
Despite all the talk of measuring ROI, the study finds that only 6% of organizations undertake ongoing, specific measurement of their corporate intranet investment. Twenty-six per cent of organizations undertake occasional measurement, and 51% do no measurement, or don’t know if they do (or guess); 18% are considering specific ROI measurements.
 
“The study reveals that while few organizations are making precise measurements, many more are making rough estimates or planning to undertake more precise measurements,” says Toby Ward, author of the survey and President, Prescient. “People value ROI, and want to measure it, but most haven’t yet.”
 
The study drew responses from more than 240 participants – intranet managers, professionals and consultants – representing the intranets of a wide variety of organizations including KPMG, Volvo, Shell, Royal Bank, New York Life, Hewlett Packard and others.
 
Key findings:
  • ROI is important or very important to 76% of the respondent organizations
  • More than two-thirds (69%) of respondents state that the intranet has improved the organization’s productivity
  • Only a bare majority (52%) of organizations surveyed said they are satisfied or very satisfied with their intranet while 36% are dissatisfied.
  • Of specific benefits, content management is most commonly measured (20%), followed by communications (18%) and application access (17%)
  • The average annual ROI of respondent intranets fell just shy of $1 million ($979,775.58)
  • 60% of respondent organizations had 1000 users or more while 21% had fewer than 100 users;   25% of the respondents have 1,000-5,000 intranet users
 
Prescient Digital Media
Prescient Digital Media is a leading Internet, intranet and extranet strategy and planning firm. Prescient provides strategic assessment, planning, research, benchmarking and communications to organizations including the Ontario Government, Royal Bank, Manulife Financial, and many others. ( www.PrescientDigital.com) 
 
For complete details read article: ROI Remains Guesswork At Most Companies
 
For complete survey findings or for more information, please contact:
Toby Ward, President, Prescient Digital Media 416.986.2226 or toby@prescientdigital.com