[pic] Microsoft® Office White Paper for Windows® 95 Financial Impact Analysis Tool [pic] Purpose of this Tool Organizations will experience many benefits from moving to the Microsoft Windows® 95 operating system and Microsoft( Office for Windows( 95 including: • Reduced support burden • Increased control of the desktop • Improved end-user productivity The purpose of this business analysis tool is to provide you with a general framework for analyzing the business impact on your organization and to estimate specific elements of the impact, including the benefits, costs, and pay-back period of migrating to Windows 95 and Office for Windows 95. This tool provides a general model for analysis and the output is highly dependent on the information that you choose to include. You should view this tool as a starting point for performing additional analysis. We recommend you use the output of this tool as an input to your own analysis. So, when analyzing the impact on your organization, you should also consider other benefits such as productivity gains from new capabilities in the product (for example, giving employees in your organization the new ability to access a mission critical application remotely). How to Use this Tool To most effectively use this business analysis tool, follow these steps: • Read this document completely. • Gather data (fill out the Business Analysis Tool Input on the following pages). • Input the information into the spreadsheet tool. (Note: This model was developed to use Microsoft( Excel for Windows, version 5 or later and will work with either Windows 3.1 or Windows 95.) • Review the output. • Consider other assumptions and incorporate the output into your own model. Limitations of the Financial Impact Analysis Tool There are certain limitations to this Financial Impact Analysis Tool: The time horizon is one year from when your organization migrates to Windows 95 and Office for Windows 95. This tool does not make any assumptions on subsequent year affects on your organization. Therefore, if you want to perform “pay-back” analysis, you may want to take this model and project the affect on your organization for subsequent years following the migration. The tool does not take into consideration labor rates nor does it place a value on the person-hours saved in this model. (This is a logical way for you to use the output data in further analysis.) The spreadsheet model has been tested in a limited number of environments and configurations. You may encounter technical problems with the spreadsheet. Financial Impact Analysis Tool Input Worksheet This worksheet will help prepare you for information needed in the Business Analysis Tool spreadsheet (Financial Impact.xls). You should use this worksheet as a guide in acquiring data on your upgrade base. Some of the information you will need to input is unique to your organization (such as the number of desktops you’ll be upgrading) and other information includes industry-appropriate data that you can tailor to your environment (amount of training time provided to users). Once you’ve collected the necessary data specific to your upgrade base, merely plug the numbers into the Business Analysis Tool model. Windows 95 Inputs |Input |Defau|Default Source |Your Estimate | |Description |lt | | | | |Value| | | |Upgrade Effort | | | | |Number of users |1,000| | | |to upgrade | | | | |Cost of the |$99 |Estimated retail| | |operating system| |street price | | |software | | | | |Estimated time |2 |“Push” and | | |to upgrade a |hours|“Pull” | | |user | |combination | | | | |installation | | | | |estimates | | |Amount of |10 |Usability | | |end-user |minut|Sciences study | | |training you |es | | | |will conduct to | | | | |upgrade users to| | | | |Windows 95 | | | | |Number of IS |2.7 |Workgroup | | |professionals |per |Technologies | | |that support |1,000|“Rescue for the | | |this upgrade |users|Helpdesk” study | | |effort | | | | |Amount of |8 |Internal | | |training (in |hours|Microsoft | | |hours) for these| |estimates | | |support | | | | |professionals to| | | | |learn Windows 95| | | | |Support Burden | | | | |Number of help |.6 |Workgroup | | |desk calls you |calls|Technologies | | |receive today |per |“Rescue for the | | |(average per PC)|month|Helpdesk” study | | |Average call |30 |Combination of | | |time (per call) |minut|Workgroup | | | |es |Technologies | | | | |“Rescue for the | | | | |Helpdesk” study | | | | |and Microsoft | | | | |internal | | | | |estimates | | |Percent of these|31% |Workgroup | | |calls that | |Technologies | | |require an | |“Rescue for the | | |onsite visit by | |Helpdesk” study | | |a technician | | | | |Average |30 |Combination of | | |difference in |minut|Workgroup | | |time between |es |Technologies | | |calls handled by| |“Rescue for the | | |technicians on | |Helpdesk” study | | |site versus via | |and Microsoft | | |phone support | |internal | | | | |estimates | | |Projected affect|.3 |Microsoft | | |on help desk as |calls|internal | | |a result of |unit |estimates | | |upgrading to |upgra| | | |Windows 95 (for |ded | | | |the first 2 | | | | |weeks after the | | | | |upgrade) | | | | |End-User Time | | | | |Assumptions | | | | |Amount of time |1,000|Microsoft | | |(hours per year)| |internal | | |that each user | |estimates | | |in your upgrade | | | | |base uses a PC | | | | |Percent of time |10% |Microsoft | | |the user spends | |internal | | |working with the| |estimates | | |operating system| | | | |(rather than an | | | | |application) | | | | |components (such| | | | |as launching an | | | | |application, | | | | |copying files, | | | | |printing, and | | | | |the like) | | | | |Impact of | | | | |Windows 95 on | | | | |Help Desks | | | | |Percent of |11% |Workgroup | | |support calls | |Technologies | | |alleviated | |“Rescue for the | | | | |Helpdesk” study | | |Increased |30% |Workgroup | | |efficiency in | |Technologies | | |handling calls | |“Rescue for the | | |(reduced number | |Helpdesk” study | | |of site visits | | | | |by technicians) | | | | |Improved | | | | |End-User | | | | |Productivity | | | | |Efficiency in |91% |Usability | | |the user | |Sciences study | | |interface | | | | |Fewer mistakes |10% |Usability | | |in performing | |Sciences study | | |common tasks | | | | |Cost Avoidance | |Individual cost | | |from Included | |savings are | | |Software | |based on | | | | |Microsoft | | | | |internal | | | | |estimates | | |Time Avoidance | |Time estimates | | |from Integrated | |from a Microsoft| | |Software | |Solution | | | | |Provider | | Sources of Assumptions Workgroup Technologies Rescue for the Help Desk—A White Paper on the Impact of Windows 95. Workgroup Technologies found that between 7 and 15 percent of all PC support calls will be alleviated by your upgrade base on Windows 95. This same study found that up to 50 percent of PC support calls that have been handled by technicians at the user’s desks can be handled via telephone support. Call alleviation refers to the number of calls that will no longer be placed to the help desk as a result of migrating to Windows 95 as an operating system (versus Windows® 3.1). The improvements in efficiency of existing support resources is based on the number of calls that can now be handled via the phone in lieu of having a technician physically visit the desktop. In the spreadsheet, you will input the number of requests for support your organization receives monthly (on a per PC basis). Then, you will input the number of minutes your organization spends on average servicing each request. To be able to apply the Workgroup Technology study to your environment, you also need to define how many of these total calls required a technician site visit and how much longer, on average, these calls take to service compared to supporting them via the phone. This will allow you to apply a help desk efficiency component to this model. For more information on this study, please refer to the Rescue for the Helpdesk document located on the Windows 95 & Office 95 Evaluation and Migration Planning Kit CD (in the \Business Impact\Business Value Studies folder). Usability Sciences, Windows 3.1 versus Windows 95 Quantification of Learning Time and Productivity This study on Windows 3.1 users tested during their first experiences with Windows 95 found that Windows 3.1 users were immediately almost twice as productive on Windows 95 and they made 10 percent fewer mistakes. Although this study was conducted on different types of users from a variety of organizations and is projectable to the population of users of Windows at large, you must decide whether you feel this is applicable to your organization. For more information on this study, please refer to the Windows 3.1 versus Windows 95 Quantification of Learning Time and Productivity document located on the Windows 95 & Office 95 Evaluation and Migration Planning Kit CD (in the \Business Impact\Business Value Studies folder). Cost Avoidance from Included Software This tool provides a pick list of software that has functionality included in Windows 95. Currently, you would have to purchase third-party software and install it on the each desktop. Windows 95 includes significant software utilities in the operating system—such as hard disk compression, disk utilities, integrating messaging, internetworking protocols, diagnostic tools, and remote access software. You should go through the pick list to choose the utilities that you use and the number of these that would be offset by migrating to Windows 95. Time Avoidance from Integrated Software This tool provides a pick list of software (that’s included in Windows 95) that you would otherwise have to spend time to integrate onto each desktop. With Windows 95, you can save time because these features are already included in the operating system. You don’t have to spend subsequent time installing them on each desktop. You should go through the pick list to choose the utilities you use today and the number of these that would be offset by purchasing Windows 95. Office for Windows 95 Inputs |Input |Defau|Default Source |Your Estimate | |Description |lt | | | | |Value| | | |Upgrade Effort | | | | |Number of users |1,000| | | |to upgrade | | | | |Cost of |$249 |Estimated | | |Application |(std)|upgrade retail | | |Software for |$349 |street price | | |Office Standard |(pro)| | | |and Professional| | | | |editions. | | | | |Estimated time |2 |“Push” and | | |to upgrade a |hours|“Pull” | | |user | |combination | | | | |installation | | | | |estimates | | |Amount of | |The MASIE | | |end-user | |Center’s | | |training you |2 |“Learning Office| | |will provide to |hours|for Windows 95” | | |upgrade users to|5 |White Paper | | |Office 95 |hours| | | |Existing Office | | | | |application | | | | |users | | | | |New Users | | | | |Number of IS |2.7 |Workgroup | | |professionals |per |Technologies | | |that support |1,000|“Rescue for the | | |this upgrade |users|Helpdesk” study | | |effort | | | | |Amount of |12 |Internal | | |training (in |hours|Microsoft | | |hours) for these| |estimates | | |support | | | | |professionals to| | | | |learn Office for| | | | |Windows 95 | | | | |Support Burden | | | | |Number of help |.6 |Workgroup | | |desk calls you |calls|Technologies | | |receive today |per |“Rescue for the | | |(average per PC)|month|Helpdesk” study | | |Average call |30 |Combination of | | |time (per call) |minut|Workgroup | | | |es |Technologies | | | | |“Rescue for the | | | | |Helpdesk” study | | | | |and Microsoft | | | | |internal | | | | |estimates | | |Percent of these|31% |Workgroup | | |calls that | |Technologies | | |require an | |“Rescue for the | | |onsite visit by | |Helpdesk” study | | |a technician | | | | |Input |Defau|Default Source |Your Estimate | |Description |lt | | | | |Value| | | |Average |30 |Combination of | | |difference in |minut|Workgroup | | |time between |es |Technologies | | |calls that are | |“Rescue for the | | |handled by | |Helpdesk” study | | |technicians on | |and Microsoft | | |site versus via | |internal | | |phone support | |estimates | | |Projected effect|.3 |Microsoft | | |on help desk as |calls|internal | | |a result of |per |estimates | | |upgrading to |unit | | | |Office for |upgra| | | |Windows 95 (for|ded | | | |the first 2 | | | | |weeks after the | | | | |upgrade) | | | | |End-User Time | | | | |Assumptions | | | | |Amount of time |1,000|Microsoft | | |(hours per year)| |internal | | |that each user | |estimates | | |in your upgrade | | | | |base uses a PC | | | | |Percent of time |40% |Microsoft | | |the user spends | |internal | | |working with | |estimates | | |Office | | | | |applications | | | | |(rather than the| | | | |operating | | | | |system) | | | | |components | | | | |Impact of Office| | | | |95 on Help Desks| | | | |Percent of total|5% |Workgroup | | |PC support calls| |Technologies | | |alleviated | |“Rescue for the | | | | |Helpdesk” study | | |Increased |11% |Workgroup | | |efficiency in | |Technologies | | |handling calls | |“Rescue for the | | |(reduced number | |Helpdesk” study | | |of site visits | | | | |by technicians) | | | | |Improved | | | | |End-User | | | | |Productivity | | | | |Increased user |37% |Kelly Services | | |productivity | |“Office 95 | | | | |Productivity | | | | |Study” | | |Fewer mistakes |36% |Kelly Services | | |in performing | |“Office 95 | | |common tasks | |Productivity | | | | |Study” | | Sources of Assumptions Workgroup Technologies Rescue for the Helpdesk—A White Paper on the Impact of Office for Windows 95. Workgroup Technologies found that between 3 and 7 percent of all PC support calls will be alleviated by upgrading to Office for Windows 95. This same study found that up to 11 percent of PC support calls that have been handled by technicians at the user’s desks can be handled via telephone support. Call alleviation refers to the number of calls that will no longer be placed to the help desk as a result of migrating to Office 95. The improvements in efficiency of existing support resources is based on the number of calls that are addressed by the improved on-line help or can now be handled via the phone in lieu of having a technician physically visit the desktop. In the spreadsheet, you will input the number of requests for support your organization receives monthly (on a per PC basis). Then, you will input the number of minutes your organization spends on average servicing each request. To be able to apply the Workgroup Technology study to your environment, you also need to define how many of these total calls required a technician site visit and how much longer, on average, these calls take to service compared to supporting them via the phone. This will allow you to apply a help desk efficiency component to this model. For more information on this study, please refer to the Rescue to the Helpdesk document located on the Windows 95 & Office 95 Evaluation and Migration Planning Kit CD (in the \Business Impact\Business Value Studies folder). Kelly Services, Office 95 vs. Office 4.3 User Productivity Test Kelly Services conducted a controlled usability test comparing employee productivity with Office 4.3 and Office 95. They found users were able to complete a set of common tasks 37% faster and they made 36 percent fewer mistakes. In addition, 70% of their users felt they could be productive with Office 95 without additional formal training. For more information on this study, please refer to the Office 95 User Productivity document located on the Windows 95 & Office 95 Evaluation and Migration Planning Kit CD (in the \Business Impact\Business Value Studies folder). Other Considerations for Your Analysis This Business Analysis Tool is just one of many methods for modeling the effect Windows 95 and Office for Windows 95 will have on your organization. The following studies may also provide some insights: |Title |Author |Description | |Total Cost of |The Gartner |Research note | |Ownership |Group |that details the| | | |costs of owning | | | |a Windows | | | |3.1-based PC | | | |over a five-year| | | |period and | | | |compares this | | | |costs of running| | | |Windows 95. | | | |For additional | | | |information, | | | |contact the | | | |Gartner Group at| | | |(203) 967-6700. | |Microsoft Office|International |Return on | |for Windows 95 |Data Corporation|investment | |Upgrades: | |analysis of | |Cost-to-Use and | |Office for | |Value-to-Use in | |Windows 95 that | |Cutting | |considers both | |Client/Server | |cost-to-use and | |Costs | |value-to-use | | | |data. The | | | |summary of the | | | |paper entitled, | | | |Office 95 Cost | | | |and Value to | | | |Use, is located | | | |on the Windows | | | |95 & Office 95 | | | |Evaluation and | | | |Migration | | | |Planning Kit CD | | | |(in the | | | |\Business | | | |Impact\Business | | | |Value Studies | | | |folder). | | | |For additional | | | |information, | | | |contact IDC at | | | |(508) 872-8200. | DISCLAIMER OF WARRANTY. Product is deemed accepted by Recipient. The PRODUCT is provided “AS IS” WITHOUT WARRANTY OF ANY KIND. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, MICROSOFT FURTHER DISCLAIMS ALL WARRANTIES, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NONINFRINGEMENT. THE ENTIRE RISK ARISING OUT OF THE USE OR PERFORMANCE OF THE PRODUCT AND DOCUMENTATION REMAINS WITH RECIPIENT. 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