The ROI of Collaboration featuring research from Forrester

The Total Economic Impact™ of
TIBCO Software’s tibbr
Adrienne Breslin, Project Director
TEI Consultant, Forrester Research
Rob Koplowitz
Vice President and Principal Analyst, Forrester Research
Leandro Perez
Director, Product Marketing, TIBCO Software Inc.
There will be silence until we begin today’s presentation.
Today’s twitter hashtag is #tibbr

Disclosures
The audience should be aware of the following:
• This document is an abridged webinar version of a full case study (Forrester
Total Economic Impact of TIBCO Software’s tibbr, February 2014).
• The study is commissioned by TIBCO Software and delivered by the Forrester
Consulting group.
• Forrester makes no assumptions as to the potential return on investment that
other organizations will receive. Forrester strongly advises that readers should
use their own estimates within the framework provided in the report to
determine the appropriateness of an investment in tibbr.
• TIBCO Software reviewed and provided feedback to Forrester, but Forrester
maintains editorial control over the study and its findings and does not accept
changes to the study that contradict Forrester’s findings or obscure the
meaning of the study.
• The customer names for the interview were provided by TIBCO Software.
• Forrester does not endorse TIBCO Software.
© 2012 Forrester Research, Inc. Reproduction Prohibited 2

Table of Contents
Introduction
What is TEI?
Executive Summary
Analysis
Interview Highlights
Benefits
Costs
Flexibility
Risk
Financial Summary
Question and Answer
Please note: this slide presentation is an
abridged, graphical, and complementary
representation of a full case study. For a
full explanation of methodology and
details on model calculations, please refer
to the full case study (Forrester Total
Economic Impact of TIBCO Software’s
tibbr, February 2014).

4
© 2012 Forrester Research, Inc. Reproduction Prohibited
What is TEI?

Do I need a business case?
5
33%,
Somewhat
important
4%,
Somewhat
unimportant
3%, Not at all
important
60%, Very
important
Base: 825 IT decision-makers at North American enterprises
• Over 90% of IT decision-makers find value in a business case
• Decision-makers will likely want to apply standard
criteria/factors to investment opportunities

What is an effective business case?
• TCO and ROI only tells the story of costs and quantified
benefits
• TEI adjusts for risks and factors the flexibility of a product
into the case study
Investment Impact
Categories
TCO ROI TEI
IT Impact
IT costs   
IT cost savings   
Business
Impact
User efficiency  
Business
effectiveness
 
Risk and
Uncertainty
Risk mitigation 
Risk vs. reward 
Strategic
Impact
Scalability 
Flexibility 

TEI Framework and Components
7
Total
Economic
Impact
RISK
Benefits
(Impact on Business)
Costs
(Impact on Budget)
Flexibility
(Options)
Perform due
diligence
Conduct
customer
interview
Construct
financial
model
Write
case
study
Conduct
webinar
The TEI framework centers on quantifying benefits,
capturing costs, evaluating flexibility, and adjusting risk.
TEI Approach and Methodology

8
Executive Summary

tibbr improves workforce productivity and effectiveness
through collaboration
• Forrester was commissioned by TIBCO
Software to examine the financial
benefit of tibbr.
• tibbr is a workplace social networking
platform that enables employees to
collaborate, share, and engage with one
another, regardless of location or
business function
• Based on an analysis of tibbr’s
customer feedback and quantified
benefits, costs, risks, and flexibility,
Forrester has determined that tibbr has
a three-year risk-adjusted ROI of 333%
with a payback period of 7.7 months
9
Executive Summary
Three-Year Risk-Adjusted Financial Snapshot
Source: tibbr website and marketing
Source: Forrester Total Economic Impact of TIBCO Software’s tibbr, a commissioned study conducted by Forrester Consulting on behalf of TIBCO Software, February 2014
ROI:
333%
Payback
period:
7.7 months

10
Analysis
› Interview Highlights
› Benefits
› Costs
› Flexibility
› Risk

Interview Details
A leading professional services company, with 145,000
employees dispersed over 152 countries. About 60,000
users are currently set up on tibbr across 20 countries, in
their phased global rollout.
A global energy management company with more than
150,000 employees, with a presence in over 120
countries. All employees have access to tibbr, with
51,000 users that log in each week.
Interviews were conducted for this study involving representatives
from the following two TIBCO customers:

Collaboration is a critical part of business.
Traditional means of collaboration were not enough.
Integration, security, and a strong vendor were key
factors in selecting a social collaboration platform.
tibbr was easy to use and intuitive.
Our interviews uncovered the following drivers behind their search
for a workplace collaboration platform:

“The challenge is that [the
legacy systems] don’t support
flexible, open communication
outside of a formal team. That’s
where the real impact of tibbr
is.”

is.”
“We found that what really
matters is making sure that
you can work with a vendor or
a tool that supports you and is
interested in innovating with
you as a customer. TIBCO has
shown an incredible
commitment to working with
us.”

is.”
“We found that what really
matters is making sure that
you can work with a vendor or
a tool that supports you and is
interested in innovating with
you as a customer. TIBCO has
shown an incredible
commitment to working with
us.”
“tibbr is simple, easy to use, and
available on any mobile device.
Not too many of our applications
can claim that.”

Benefit Summary
Benefits
Cost Savings
from Improved
Business
Processes
Reduced Cost of
Communicating
To Employees
Better
Innovation and
Idea
Management
Faster
Employee
Onboarding
Improved
Workforce
Productivity

Benefit Summary
1) Improved Workforce Productivity
• Enables employees to have better access to people and info across company
• Gets info faster regardless of function or location
2) Faster Employee Onboarding
• Supports new employees in training and coming up to speed
• Provides key info as they learn new position, shortening ramp-up times
3) Cost Savings From Improved Business Processes
• Helps employees improve on existing processes, creating efficiency and cost savings
4) Reduced Costs of Companywide Communication to Dispersed Employees
• Offers easier means of communicating with employees spread over distributed sites and
time zones.
5) Better Innovation and Idea Management
• Provides platform for employees to share ideas and aids in management and aggregation
of ideas
Benefits

Forrester TEI: Composite Organization
18
• For this TEI study, Forrester created a composite organization to illustrate
the quantifiable costs and benefits of implementing tibbr
• The composite organization is based on the interviews with the existing
customers provided by tibbr
• The Forrester TEI framework is based on the experiences of the composite
company, as is the associated ROI analysis that illustrates the areas
affected financially.
• The composite organization that Forrester synthesized represents an
organization with the following attributes:
› A globally dispersed company based in the US.
› 145,000 employees in offices located across 136 countries.
› 60% actively use tibbr, or 60,900 employees.

• tibbr enables employees to better collaborate with peers
across functional and geographical boundaries
• tibbr aided employees in doing their overall jobs better with
better access to people and information
• Mobile is a factor in increased productivity
Largest Benefit From Improved Workforce Productivity
19
Benefits
Ref. Metric Calculation Year 1 Year 2 Year 3
A1 Number of employees on tibbr 50,000 55,450 60,900
A2 Average fully loaded salary per person $75,000.00 $75,000.00 $75,000.00
A3 Percentage productivity improvement 0.5% 0.9% 1.2%
A4 Percent of time captured 50% 50% 50%
At Improved workforce productivity A1*A2*A3*A4 $9,375,000 $18,714,375 $27,405,000

• New employees have a place to search for answers to questions
around training and onboarding
• interviewed organizations found that many questions are already out
there in tibbr
› tibbr enables these new employees to quickly search for and find
the information to their question, where someone else has already
asked and answered the question.
Faster Employee Onboarding and Training
20
Benefits
B1 Employee turnover 4.00% 4.00% 4.00%
B2 Number of employees 145,000 145,000 145,000
B3 Annual salary $75,000.00 $75,000.00 $75,000.00
B4
Estimated training cost per employee as
percentage of salary
10% 10% 10%
B5 Estimated reduction of training time 2% 2% 2%
Bt Faster employee onboarding/training
B1*B2*B3*B4*
B5
$870,000 $870,000 $870,000

• Prior to tibbr, workgroups were working in silos and lacked the ability to
see and understand how other internal processes and external
projects were being done.
• By implementing tibbr, these issues were brought to the surface,
› employees began to work together and leverage the experience of
other groups to improve their own processes and projects.
› Avoided reinventing the wheel
• This benefit was further impacted by tibbr’s ability to connect with
other applications within the organization
Cost Savings From Improved Business Processes
21
Benefits
C1
Number of processes affected within the
organization
5 8 10
C2 Number of hours saved per process 5 min/60 min 0.0830 0.0830 0.0830
C3
Number of employees benefiting from
improved processes
50,000 57,000 60,900
C4 Average fully loaded salary per person
($75,000/2,08
0 work hours
a year)
$36.05 $36.05 $36.05
Ct
Cost savings from improved internal and
external business processes
C1*C2*C3*C4 $748,038 $1,364,420 $1,822,219

Reduced Costs of
Companywide
Communication to
Dispersed Employees
An Investment In tibbr Helps Companies Save Money
22
Reduces the need for
formal processes for
communication
Innovation and Idea
Management
Calculation focuses
specifically on time and
money saved in managing
and aggregating these
ideas
Avoided cost of $101,661
Avoided cost of $121,993
Benefits

Benefit Breakdown Over the Three-Year Analysis
23
Three-Year Non-Risk-Adjusted Benefits
Benefit Year 1 Year 2 Year 3 Total
Improved workforce productivity $8,812,500 $17,591,513 $25,760,700 $52,164,713
Faster employee
onboarding/training $817,800 $817,800 $817,800 $2,453,400
Cost savings from improved
business processes $703,155 $1,282,555 $1,712,886 $3,698,597
Reduced costs of communicating to
broad audiences $30,498 $40,664 $50,831 $121,993
Innovation and idea management $27,110 $33,887 $40,664 $101,661
Total benefits $10,391,063 $19,766,419 $28,382,881 $58,540,363
Benefits

Costs Summary
Yearly Licensing and Maintenance Costs
• The annual billable cost of tibbr
Professional service fee
• One-time cost paid to TIBCO for professional
services helping with the planning,
implementation, and training for the tibbr
investment
Internal administrative support costs
• The annual administration fee to support the tibbr
investment.
• This includes both the internal IT resources, as
well as the cost of offshore reviewers.
Planning, implementation, training, and
adoption costs
• This is the cost associated with planning the tibbr
deployment, and developing training materials
and content to drive adoption of tibbr.
Three-Year Non-Risk-Adjusted Costs
Costs Initial Year 1 Year 2 Year 3 Total
Total costs ($4,223,375) ($3,778,688) ($3,778,688) ($124,688) ($11,905,438
)

Flexibility and Risk Components of tibbr
25
Flexibility
• Flexibility represents an investment in additional capacity or capability that could be turned into
business benefit for some future additional investment.
• Organizations can easily expand their use of Tibbr
Risks
• Risk is used as a filter to capture the uncertainty surrounding different cost and benefit estimates.
• The risk-adjusted numbers should be taken as “realistic” expectations, since they represent the
expected values considering risk.
• In general, risks affect costs by raising the original estimates and they affect benefits by reducing the
original estimates.
*Please refer to Appendix slides for details on how to use the risk adjustment table

26
Financial Summary

Comparison of Risk and Non-Risk Adjusted Cash Flows
27
Three-Year Risk-Adjusted Cash Flow
Initial Year 1 Year 2 Year 3 Total PV
Costs ($4,223,375) ($3,778,688) ($3,778,688) ($124,688) ($11,905,438) ($10,875,107)
Benefits $0 $10,391,063 $19,766,419 $28,382,881 $58,540,363 $47,106,783
Net Benefits ($4,223,375) $6,612,376 $15,987,732 $28,258,194 $46,634,926 $36,231,676
ROI 333%
Payback Period 7.7months
Three-Year Non-Risk-Adjusted Cash Flow
FlowInitial Year 1 Year 2 Year 3 Total PV
Costs ($4,211,500) ($3,772,750) ($3,772,750) ($118,750) ($11,875,750) ($10,848,467)
Benefits $0 $11,054,323 $21,028,105 $30,194,554 $62,276,982 $50,113,599
Net Benefits ($4,211,500) $7,281,573 $17,255,355 $30,075,804 $50,401,232 $39,265,133
ROI 362%
Payback Period 6.9 months

The three-year risk-adjusted cash flow for tibbr shows a
positive ROI of 333%, with a payback period of 7.7
months.
28
Three-Year Risk-Adjusted Cash Flow
Initial Year 1 Year 2 Year 3 Total PV
Costs ($4,223,375) ($3,778,688) ($3,778,688) ($124,688) ($11,905,438) ($10,875,107)
Benefits $0 $10,391,063 $19,766,419 $28,382,881 $58,540,363 $47,106,783
Net Benefits ($4,223,375) $6,612,376 $15,987,732 $28,258,194 $46,634,926 $36,231,676
ROI 333%
Payback Period 7.7months

The ROI of Collaboration featuring research from Forrester

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