Counting the Semi-Tangible Benefits of an IdM Project
May 18, 2006 by Sean ONeill
Counting the Semi-Tangible Benefits of an IdM Project
Thanks for your patience y’all. Will
complete this ROI series. Today’s entry is reviewing the “Semi
Tangibles” benefits in your project. Unlike the hard numbered
tangible benefits related in the previous blogs, these benefits take
a little more black art to identify and quantify. They are benefits,
yes, but the exact savings that can be attributed to them is up for
debate. So be conservative; this is where the challengers to your ROI
can start attacking your soft underbelly. Don’t worry though, there
are enough benefits to let you give up on a few.
The approach we took on the recent ROI
is to look at recommended IdM ROI categories, culled from a variety
of industry sources, take the recommended savings the analysts claim,
and run them by the IdM project team at the client to determine if
they agree and to what degree.
So, here are some of the Semi-Tangibles
we came up with and the recognized benefits:
Semi-Tangible
|
Description/Discussion
|
Analyst’s
Estimate of Benefit
|
Actual
Accepted Benefit
|
---|
Improved
User Data Management
|
By
consolidating user information from a variety of different
systems and admin teams, costs are removed from account
maintenance, back up, and restore. Also eliminates having to sync
redundant data across systems. Client already has a fairly lean
user management process, so not claiming as much
|
$325
/year/user
|
$50/year/user
|
Improved
Application Development
|
With
a centralized user admin stack, developers don’t have to spend
the usual 20% of a project writing user login and admin. code.
Utilize identity stack as a service. Client agrees with number;
suspects it might be more
|
$15,000
/ application
|
$15,000/application
|
Improved
IT efficiency
|
While
#1 talks about improved handling of user data, this benefit
captures the value of having a centralized, fast responding, IT
infrastructure. Fewer licenses are required because they can be
tracked better.Companies can absorb M&A acquisitions faster.
Newer, lower cost applications can be used because user
administration already in place. Overall, a more nimble IT
organization. A foggy number, but one that is a real benefit
often overlooked. Client agrees, but may adjust due to feedback.
|
$75,000
/ year / 1000 users
|
$75,000
/ year / 1000 users
|
Faster
user account activation
|
For
contractors, new employees, and users changing roles, this
benefit of getting faster access to needed systems instead of
sitting around waiting for the change order to be processed.
Users become productive sooner versus later. A contractor unable
to log onto the network can run over a $1,000 / day. Client
actually thinks this number is low for new hires, particularly
when they have to be issued laptops/software, but high for job
changes.
|
$1,000
/ new employee
$350/job
change
|
$2,720/New
Employee
$100/job
change
|
Reduced
Compliance Audit Costs
|
With
SOX and HIPAA, compliance audits are becoming more frequent and
require more details, particularly around user account
information and privileges. With an IdM system, requested audit
information can be provided faster, lower the costs of the
security audits. Client agrees that cost is about right, but
thinks the number of audits is low and only increasing in the
future.
|
$4,000
/ Security Audit
|
$4,000
/Security Audit
|
Are there others? Sure they are. Each
ROI analysis has to spend time in this area to insure they capture
the perceived benefit and provide a value for that benefit. Make
sure you limit benefit overlap (claim credit for something you have
already valued). Be ready to defend you numbers and assumptions and
be ready to give to those who may know more (your compliance team may
be able to tell you the number of security audits per year and their
perceived savings with an IdM system in place.
Okay, next entry will be about the
non-Tangibles. Those benefits which have not been implemented, but
could be, or those that its just impossible to put a value on. Then
we will crank some numbers and give our guesstimate on the IdM ROI.
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