I know what BT’s intranet is worth. What about yours?

June 17, 2009 at 7:47 am | Posted in benchmark, best practice, intranet | 12 Comments
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Last August I posted about BT testing out a new methodology that gives a fuller picture of the overall value your intranet gives your organisation and promised to update you on progress made.

Well, it has taken a long time BUT it has been successful!

I now know how much BT’s intranet is worth in £s, how that is worked out, the different levels of value and can start to use it for future investment funding decisions.

BT has measured the exploited and unexploited value of our intranet in terms of the business processes it delivers. It breaks down into three main types of business value:

  • cash saved and revenue generated
  • time savings converted into cash
  • less tangible benefits such as risk reduction, increased satisfaction and emissions savings

I can’t reveal the exact figures as they are sensitive – sorry. What I can say is that for every £1 invested there is £20+ exploited value achieved and £5 unexploited value still to gain. As BT invests many £millions you can see what a breakthrough this can be in the value everyone can see in our intranet!

BT worked with IBF to develop their financial value tool and have shown the methodology to be sound. The results are as accurate as the information you provide on costs, etc, for the tool to assess.

In the 1990s methodology was developed to measure the value of brands and shown as an organisation’s financial asset. This can now start to happen in a similar way over the next few years with intranets.

Wouldn’t it be good to know what your intranet is worth and contributing directly to your organisation’s bottom line?

12 Comments »

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  1. And the next step is to equate realised savings to bonus levels. Just need 0.1% and you can buy your fave football team!

    • Brighton and Hove Albion will cost a lot less than Manchester United to buy so supporting them does have some benefit! If the methodology becomes established then all sorts of measures dependent on an intranet’s value are then possible………even buying your favourite football team! :-)

  2. [...] The areas covered include BT’s Homepage; Blog Central; BTpedia; Podcast Central; BT Today and RSS.  I also covered the full value of BT’s intranet. [...]

  3. Very interesting, Mark. But I’m confused about the role of “potentially” in this statement: “What I can say is that for every £1 invested there is potentially £20+ exploited value achieved and £5 unexploited value still to gain.” Did you find that £1 invested *does* create £20 in value, or that it *could* (potentially) do so?

    • Tim,

      Thanks for pointing this out to me. I’ve re-read the whole post again and I don’t know why I said ‘potentailly’ – twice!

      I have removed it and updated the post because the methodology has shown BT achieved £20+ exploited value for every £1 invested in our intranet and could gain a further £5 of value not exploited yet.

      I hope that makes it clearer.

      Mark

  4. [...] difficult to use the data to justify further investment in BT’s intranet. The IBF do have a financial value benchmark area but that costs [...]

  5. [...] Value of exploited and unexploited less tangible benefits [...]

  6. [...] up the benefits from social [...]

  7. [...] Valuing exploited and unexploited less tangible benefits [...]

  8. [...] next example is about how involving everyone can make your intranet more valuable to your organisation.  IBF said BT’s intranet supports our values to be open and straightforward [...]

  9. [...] доходы компании с помощью интранета.Описание успешного опыта ВТ в блоге интранет-менеджера компании, Марка Моррелла [...]

  10. [...] has been benchmarked by IBF in 2007, 2008, 2009 and 2010 for global best practice and its financial value.  And (I hope) because I had some good views to contribute to the discussion [...]


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