rfid use in libraries: roi
DESCRIPTION
A presentation for the Canadian Libraries Association on the return on investment for implementing RFID systems for self service, elibraries, sortation, security and public access management.TRANSCRIPT
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How to Quantify the Return on Investment of Library
Technology Projects
Alice Swabey, Coordinator - Access Services, Mount Royal University Library
Jeff Narver, Library Productivity Specialist, 3M Canada Library Systems
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What this Process is … and isn’tForecastProcess not a toolNot to prove Gap analysisNot for all projects
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Why Use Project ROI?Reduce risk Resource allocationDefining a balanced value perspective
Qualitative, quantitative, strategic, tactical, short & long term
Funding toolValidate claims
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Step 1: Environmental Scan
Collect & evaluate potential projects Prioritize projects Organize the team Library circumstances
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Step 2: Program AssumptionsOutline of problem
Possible solutionsPossible alternatives
Go / no go’sProgram parameters
Size & scopeGut check
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Step 3: Program Objectives
Simple, measureable, realisticFinancial, time, learning
Benchmarking
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Step 4: Identify Impact Points
Break down current processBreak down new processIdentify and compile master list
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RFID Sample Impact Points Speed of circulationShelf management New materials processingReduction in materials handlingSpeed to shelf
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Step 5: Conversion Standard
What standard will you use?If it doesn’t fit, don’t force it
For example ...
79 652 circs/yr x 7.5 seconds/item = 165 hours x 28.98/hr wages = $4781
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Step 6: Data Collection
Review impact pointsCollect data
Observation InterviewsTiming SurveysBenchmarkingSecondary sourcesTestsSubject matter experts
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Data examplesHard SoftCirculationLost itemsDiscrepanciesSalariesCustomer complaintsStaff turnoverEfficiencyProcessing time
Process improvementLeadershipReputationCustomer loyaltyCustomer complaints &
impressionsStaff complaintsStaff satisfactionStaff Safety
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Then Estimate Change
Agree upon change estimatesDon’t force it (step 8)
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Project Savings Area of Impact
Speed of check-in -- $$
Inventory -- $$
Shelf Reading -- $$
New Collection Processing -- $$
Circulation Desk Staffing -- $$
Total Year One Savings -- $$
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Step 7: Project CostsIt isn’t the just the equipmentCapital vs operational1 year or 3-5 years
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Sample Project Costs
Planning and Meeting Time 20 hrs @ $40.32/hr
RFID Research 20 hrs @ $40.32/hr
Vendor Evaluation 25 hrs @ $40.32/hr
Trades Work & Renovations TBD
Hiring & Training Tagging Crew 10 hrs @ $13.50/hr
Tagging Time * 558 hrs @ $13.50/hr
Conversion Station Rental 3 months @ $1,100.00
Supervising Tagging Crew 10 hrs@ $28.98/hr
Staff RFID Systems Training 42 hrs @ $24.20/hr
Policy Review and Revisions 20 hrs @ $28.98/hr
Internal and External Communication 10 hrs @ $40.32/hr
Customer Training 30 hrs @ $28.98/hr
RFID Tags and Equipment TBD
SIPS License 1
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Qualitative factors drive projects
Intangibles are the invisible advantage
Jack Phillips, 2007
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Step 8: Qualitative BenefitsHelp tell the storyCustomer satisfactionStaff satisfaction
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Step 9: Return on Investment
Calculate the annual project benefits (step 6)
Divide them by the project costs Payback
average 3-7 years
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Step 10: Writing the Report
Barriers & enablers to implementation
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Step 10: Write Report
Know your audience
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Step 11: Do follow-up
Test assumptions after project implementation
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What we learnedListen to the dataTimeManage staff anxietyIt isn’t always the quantitativeProcess milestones & credibilityLearning about your library
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Adding it all up...