Microsoft Business Intelligence
Business Value Workbook
This model helps organizations assess the costs and
benefits (ROI) of Microsoft's business intelligence (BI)
products and solutions
This comprehensive Excel-based tool enables
organizations to credibly assess/estimate the costs and
benefits (ROI) of investing into Microsoft's business
intelligence products/services. Microsoft products in
this tool include: Office 2007, Office SharePoint Server
2007, Office PerformancePoint Server 2007, SQL Server
2008, Windows Server 2008, BizTalk Server 2006, and
Visual Studio 2008.
The model also assesses the organization's "BI
Capabilities" (best practices) in 9 categories: 1) data
warehousing, 2) performance management, and 3) reporting
and analysis. The "BI Capability" assessment is based on
Microsoft's BI Maturity Model (part of Microsoft's
Infrastructure Optimization Maturity Model).
The results can be used as a key part of a business case
for BI projects. It can also be used by Microsoft
product vendors and service providers to articulate the
business value of their Microsoft BI solutions.
Comprehensive/credible assessment of project costs
Includes hardware; software; IT labor, training,
and services; and user labor and training. All
direct and indirect, one-time and on-going costs
needed to implement and support the initiative.
IT labor TCO savings, other direct costs
savings, user productivity benefits, revenue
growth, and potential impact on non-financial
KPIs (key performance indicators).
- Supports rapid
(30 minute) or detailed (5+ day) assessments
- The models are designed to provide either a rapid
assessment (by just entering/selecting basic
organizational profile data) or a very detailed (5+
day) assessments by modifying hundreds of detailed
financial analysis - Calculates project
cash flow, cost-benefit analysis, ROI, NPV, IRR, and
with default/sample costs and benefits* -
Sample input data is pre-populated throughout the
model and is re-calculated as inputs are modified.
Data/estimate sources are listed. Users may
overwrite any of the pre-populated defaults.
- Supports most
- Protected, yet
customizable - Essentially all values can
be modified. Formulas and other areas of the model
that should not be modified are protected (locked)
to maintain integrity.
- Based on
industry-standard calculations and industry-leading
methodologies - The models are as
transparent as possible so the user is able to
understand how the costs and benefits are
- The workbook contains instructions, descriptions,
and references. Results are updated real-time and
are displayed graphically throughout the model.
Although the model is user-friendly, we recommend
users have at least a moderately-advanced
understanding of technology and business value
concepts to develop a credible business case.
Pre-populated (default/sample) cost and benefit data
should not be used for making investment decisions.
This tool cannot accurately/credibly estimate
costs/benefits without significant user review,
validation, and adjustment of many data inputs (the
detailed inputs should be customized for each
particular organization). Pre-populated data is
based on detailed customer studies conducted by HCR,
but is not meant to represent average/typical
project results and is not based on statistically
significant research. Sample data should only be
used as a starting place for assessing the business
value of your particular organization and Vista
Model Components /
The flowchart below
graphically presents the components of the model
and how to navigate the model.
This model assesses the
costs and benefits of enhancing (investing in)
the organization's business intelligence (BI)
capabilities. The model assesses 9 generic (not
Microsoft-specific) BI capabilities (best
practices) in the following 3 categories: 1)
data warehousing, 2) performance management, and
3) reporting and analysis. The model calculates
a "BI Capability Score" based on the extent to
which the organization possesses these 9 BI
The BI Capabilities are based on Microsoft's
Infrastructure Optimization (IO) model. Business
intelligence is included in 2 of the 3 models:
BPIO (Business Productivity Infrastructure
Optimization) and APIO (Application Platform
Infrastructure Optimization). These IO models
are based on research from Gartner, IDC, MIT,
and others. Research from these organizations,
Microsoft, and others has shown that there is a
strong correlation between maturity/capability
levels and business performance: business
performance tends to improve as the organization
invests into advancing capability levels.
The model then simulates a "To-Be" BI Capability
Score based on additional capabilities
(solutions) selected. The model simulates
improvements to appropriate KPIs (Key
Performance Indicators) corresponding to
improvements to the BI Capability Score. The KPI
improvements are translated into financial
benefits in the following categories: user
productivity, IT labor, cost savings, and
revenue growth. The model also estimates costs
required to implement the new
capabilities/solutions, including hardware,
software, IT labor, and user labor.
The results (including cash flow, ROI, NPV, and
payback period) are included in the "Financial
The model is based on industry standard
methodologies and calculations. It is as
transparent as possible so the user is able to
understand how costs and benefits are
The model uses many
hardware costs, KPI values, etc.) Research was
conducted to find highly reputation sources for
these. Data/estimate sources are provided.
This model was designed to provide either a
rapid (1 hr) assessment (by just entering basic
organizational profile information and selecting
new capabilities) or to conduct a very detailed
(3+ day) assessment by modifying detailed input
This tool was developed by Hall Consulting &
Research LLC (hallcr.com) for Microsoft.
Why Use HCR Business
business and technology decision-makers:
- Develop more credible
business cases (justifications)
- Objectively evaluate,
quantify and prioritize investments
- Better align investments
with business strategy
- Increase initiative ROI
and technology adoption rates
For technology product
vendors and service providers:
- Credibly quantify and
articulate product/service business case
(increasingly required by technology buyers)
improve sales close rates
Rights / End-User License Agreement (EULA)
By using the
software/document, you accept these terms. If
you do not accept them, do not use the software.
1. This is a free
"Preview": You may use, copy, redistribute,
display, print, and reproduce this
2. You may NOT sell, rent, lease, or lend this
software/document or portions/derivations of it.
3. You may NOT create derivative works from or
"reverse-engineer" this software/document.
4. You may only modify portions of the
software/document designated as "Input" cells
(light yellow cells with double-outline and blue
5. You may NOT attempt to modify any
"Protected"/"Locked" portions of this
6. You must maintain all copyright and other
notices contained in this software/document.
7. You may incorporate only static (e.g. values,
graphics) portions of this software/document
within other documents (e.g. a business case
report) as long as the dynamic (e.g. equations,
macros) functionality of the workbook is not
also incorporated or duplicated.
Results should be considered
estimates only. It is intended to help guide customers
in better understanding approximate costs and benefits
of various scenarios. Due to limitations of simulation
tools, actual results may differ significantly.
Deployment/investment decisions should not be based on
the results of this tool alone -- it is not intended to
be a substitute for professional advice.
HCR can provide fee-based
support services, including telephonic support, workbook
customizations, and comprehensive consulting engagements
to assist with business case development and validation.
For More Information
Hall Consulting & Research
About Microsoft's Infrastructure
Optimization Model (IOM)
Optimization (IO) model from Microsoft has been
developed using Industry best practices, Microsoft's own
experiences with its enterprise customers, and is based
upon Gartner's Infrastructure Maturity Model and MIT's
Architecture Maturity Model. A key goal for Microsoft in
creating the Infrastructure Optimization Model was to
develop a simple way to use a maturity framework that is
flexible and can easily be used as the benchmark for
technical capability and business value.
The Infrastructure Optimization Model from Microsoft
helps customers understand and subsequently improve the
current state of their IT infrastructure and what that
means in terms of cost, security risk and operational
By using this model as a framework, an enterprise can
quickly understand the strategic value and business
benefits to the organization in moving from a "basic"
level of maturity (where the IT infrastructure is
generally considered a "cost center") towards a more
"dynamic" use when the business value of the IT
infrastructure is clearly understood and the IT
infrastructure is viewed as a strategic business asset
and business enabler.
Three IO Models:
Microsoft's Business Intelligence IO Model
BI Capabilities (& Best Practices)
Below is an overview of the BI
capabilities included in this model. The model assesses
the organization's current level of compliance with the
corresponding best practices within each capability
category. They are based on Microsoft's BI IO
(Infrastructure Optimization) as well as a variety of
other sources including Gartner, Forrester, and IDC.
Overview of Microsoft Business Intelligence
Intelligence offers a complete suite of products that
supports all facets of decision making. Through tight
integration with the powerful, proven, and scalable
Microsoft SQL Server 2005/2008 platform, Microsoft
Office SharePoint Server 2007, Microsoft Office
Business Scorecard Manager 2005, ProClarity Analytics 6,
and Microsoft Office PerformancePoint Server 2007,
Microsoft provides complete business intelligence (BI)
capabilities that deliver the right information, at the
right time, and in the right format.
Building on the innovative features in SQL Server that
help businesses understand and analyze large volumes of
rapidly changing data, the 2007 Microsoft Office system
enables decision makers to predict and harness the power
of change to create competitive advantages, achieve
corporate objectives, and make better decisions, faster.
Now, with tighter integration with SQL Server, the 2007
Microsoft Office system empowers people to be more
productive by answering their own questions in a
security-enhanced, familiar, and easier-to-use
environment. This enables IT to focus their resources on
higher-value BI projects and enables everyone else to
focus on doing their jobs and less on getting the
information needed to do their jobs.
New to the 2007 Microsoft Office system is a product
called Office PerformancePoint Server, an extension and
evolution of Microsoft Office Business Scorecard Manager
and ProClarity Analytics. Office PerformancePoint Server
is a performance management application that enables
businesses to improve their performance by providing all
employees with the ability to plan, budget, forecast,
report, analyze and scorecard their activities using the
familiar Microsoft Office system and SQL Server
technology. Office PerformancePoint Server will help
companies align metrics to strategy and improve
performance by enabling every employee to understand
business drivers, shape solutions, and execute shared
In addition, Office SharePoint Server 2007 introduces
Microsoft Excel Services, which delivers the power,
functionality, and accessibility of Microsoft Office
Excel 2007 in a zero-client format. Now everyone can
easily interact with live data over the Web.
Results Report -