Data Machines, Inc.

Project Portfolio Management Tool ROI Calculator

http://www.datamachines.com

The purpose of this customized spreadsheet is to let you easily calculate the return on
investment (ROI) that you might expect over 3 years from implementing a project
portfolio management system such as Optsee. The benefits and cost are calculated
against year "zero" or the year prior to implementing the PPM system.

Start by filling in your data in the yellow cells of the "Base ROI Calculator" Worksheet.
This will automatically calculate your ROI over three years. Next, fill in the "Uncertainty
Ranges" in the "Risk-Adjusted ROI Calculator" worksheet. This will automatically
calculate a risk-adjusted or "most-likely" ROI over three years.
You can expect to benefit in 3 significant areas:
1) Project Execution Speed with benefits such as:
o More effective project budgeting decisions
o Assigning right skill sets and expertise to projects
o More agile resource allocation
o Project portfolio management workflow visibility
o Easier tracking and visibility of key project metrics
o Faster report generation

2) Bottom-line returns to business with benefits such as:

o Increased number of projects completed successfully because of efficiency
o Fewer low-value projects due to portfolio analysis and value scoring
o Increased productivity from available resources
o Focus on high-value projects
o Improved risk management
o Faster achievement of overall strategic goals

3) Increased Project Management Efficiency with benefits such as:

o Shorter project meetings
o Faster decisions based on rigorous systematic analysis
o More effective reporting and oversight
o Improved ability to synchronize projects

You can expect initial and ongoing costs such as:

o Planning, training, and implementation
o Hardware costs
o Initial software license fees
o Annual fees and maintenance
o Solution customization
 o Ongoing consulting and training

In each of these areas you can assign values in the yellow cell that reflect the impact to
your firm's bottom line.
Click Here To Start Your PPM Program For FREE Today.
2011, Data Machines, Inc. All rights reserved. Optsee is a registered trademark of Data Machines, Inc.
Data Machines, Inc.
Project Portfolio Management Tool ROI Calculator
http://www.datamachines.com

Instructions: Enter your estimated values in the yellow areas. The other
cells are calculated for you automtically.

BASELINE ASSUMPTIONS (NO PPM SYSTEM BEING USED): Year 1 Year 2 Year 3 Total NPV
Number of projects: 100 Reduction in failure rate: $225,000 $300,000 $300,000 $825,000 $710,390
Average project cost ($): $125,000 Reduction in projects with cost overruns: $318,750 $425,000 $425,000 $1,168,750 $1,006,386
Average cycle time (months): 24 Reduction in cycle time: $58,594 $78,125 $78,125 $214,844 $184,997
Reduction in managers' meeting time: $112,500 $150,000 $150,000 $412,500 $355,195
Percent project rate of failure (%): 24 Total Benefits: $714,844 $953,125 $953,125 $2,621,094 $2,256,969
Percent projects with cost overruns (%) 68
Average percent overrun (%) 25 Year 1 Year 2 Year 3 Total NPV
Software: $30,000 $6,000 $6,000 $42,000 $37,929
Average managers per meeting: 5 Hardware: $10,000 $0 $0 $10,000 $9,302
Hourly cost per manager ($): $125 Implementation: $204,000 $0 $0 $204,000 $189,767
Hours per project per month: 8 On-going Support: $52,400 $65,500 $65,500 $183,400 $158,148
Total Costs: $296,400 $71,500 $71,500 $439,400 $395,147
Discount rate (%) 7.5
Year 1 reduced percentage of full benefit adjustment (%) 75 Net Cash Flow: $418,444 $881,625 $881,625 $2,181,694 $1,861,822

BENEFITS OVER BASELINE: Cumulative Cash Flow: $418,444 $1,300,069 $2,181,694

Percent reduction in failure rate (%): 10
Percent reduction in projects with cost overruns (%): 20 Year 1 Year 2 Year 3 Total NPV
Percent reduction in cycle time (%): 15 Percent Return on Investment: 141% 1233% 1233% 497% 471%
Percent reduction in managers' meeting time (%): 30

COSTS:
Software:
Server licenses initial cost ($): $25,000
Number of server licenses: 1
Server licenses annual maintenance (% of initial cost): 20

Client or desktop licenses ($): $500

Number of clients or desktops: 10
Client or desktop annual maintenance (% of initial cost): 20

Hardware:
Number of servers: 1
Cost of servers ($): $10,000
Number of clients or desktops: 0
Cost of clients or desktops ($): $0

Implementation (Year 1 costs):

Planning:
Number of planning team members: 5
Average hourly cost per member ($): $60
Planning hours per member: 60

Testing:
Number of test team members: 10
Average hourly cost per testing team member ($): $100
Testing hours per member: 120

Roll-Out:
Number of teams: 5
Initial training per team ($): $5,000

Outside Services:
Number of consulting days 14
Cost per day ($) $1,500

Customization:
Developer hours: 200
Developer hourly rate ($): $100

On-Going Support:
Administrators required: 0.5
Annual cost per administrator ($): $75,000

Annual training and support ($): $10,000

Annual consulting ($): $10,000

Customization:
Annual Developer hours: 80
Annual Developer hourly rate ($): $100

2009, Data Machines, Inc. All rights reserved. Optsee is a registered trademark of Data Machines, Inc.
Data Machines, Inc.
Project Portfolio Management Tool ROI Calculator: Risk Estimator
http://www.datamachines.com

This page gives an approximate risk-adjusted ROI value based on a triangular distribution of
expected outcomes for the primary benefit and cost values. The "Original" represents the peak of
the triangle and the "Best Case" and "Worst Case" represent the other corners. The "Most likely"
represents the average of these 3 values. The risk adjusted ROI uses the values from the "ROI
Calculator" worksheet to calculate the risk adjusted ROI. Instructions: Enter your "Best Case" and
"Worst Case" values in the yellow areas. The other cells are calculated for you automtically.

Uncertainty Range
Original Best case Most likely
Risk-to-benefit: (%) (%) Worst case (%) (%)
Reduction in failure rate: 100 125 50 92
Reduction in projects with cost overruns: 100 125 50 92
Reduction in cycle time: 100 125 50 92
Reduction in managers' meeting time: 100 125 50 92

Uncertainty Range
Original Best case Most likely
Risk-to-cost: (%) (%) Worst case (%) (%)
Software: 100 85 130 105
Hardware: 100 90 110 100
Implementation: 100 90 140 110
On-going Support: 100 80 140 107

Risk-Adjusted ROI:
Year 1 Year 2 Year 3 Total NPV
Reduction in failure rate: $206,250 $275,000 $275,000 $756,250 $651,191
Reduction in projects with cost overruns: $292,188 $389,583 $389,583 $1,071,354 $922,521
Reduction in cycle time: $53,711 $71,615 $71,615 $196,940 $169,581
Reduction in managers' meeting time: $103,125 $137,500 $137,500 $378,125 $325,596
Total Benefits: $655,273 $873,698 $873,698 $2,402,669 $2,068,888

Year 1 Year 2 Year 3 Total NPV

Software: $31,500 $6,300 $6,300 $44,100 $39,825
Hardware: $10,000 $0 $0 $10,000 $9,302
Implementation: $224,400 $0 $0 $224,400 $208,744
On-going Support: $55,893 $69,867 $69,867 $195,627 $168,692
Total Costs: $321,793 $76,167 $76,167 $474,127 $426,563

Net Cash Flow: $333,480 $797,531 $797,531 $1,928,543 $1,642,325

Cumulative Cash Flow: $333,480 $1,131,011 $1,928,543

Year 1 Year 2 Year 3 Total NPV

k-Adjusted Percent Return on Investment: 104% 1047% 1047% 407% 385%

2009, Data Machines, Inc. All rights reserved. Optsee is a registered trademark of Data Machines, Inc.
Data Machines, Inc.
Project Portfolio Management Tool ROI Calculator: Risk Estimator
http://www.datamachines.com

Base Model Year 1 Year 2 Year 3 Total NPV

Total Benefits: $714,844 $953,125 $953,125 $2,621,094 $2,256,969
Total Costs: $296,400 $71,500 $71,500 $439,400 $395,147
Net Cash Flow: $418,444 $881,625 $881,625 $2,181,694 $1,861,822
Cumulative Cash Flow: $418,444 $1,300,069 $2,181,694

Percent Return on Investment: 141% 1233% 1233% 497% 471%

Risk-Adjusted Model Year 1 Year 2 Year 3 Total NPV

Risk-Adjusted Total Benefits: $655,273 $873,698 $873,698 $2,402,669 $2,068,888
Risk-Adjusted Total Costs: $321,793 $76,167 $76,167 $474,127 $426,563
Risk-Adjusted Net Cash Flow: $333,480 $797,531 $797,531 $1,928,543 $1,642,325
Risk-Adjusted Cumulative Cash Flow: $333,480 $1,131,011 $1,928,543

isk-Adjusted Percent Return on Investment: 104% 1047% 1047% 407% 385%

2009, Data Machines, Inc. All rights reserved. Optsee is a registered trademark of Data Machines, Inc.

ROIs

1400%
Percent ROI

1200%

1000%

800%

600%

400%

200%

0%
Year 1 Year 2 Year 3
Year
Percent Return on Investment: Risk-Adjusted Percent Return on Investment:
 Totals

$2,500,000

$2,000,000
Dollars

$1,500,000

$1,000,000

$500,000

$0
Base Model Risk-Adjusted Model
Model
Total Net Cash Flow Total NPV

Cumulative Net Cash Flows

$2,500,000

$2,000,000
Dollars

$1,500,000

$1,000,000

$500,000

$0
Year 1 Year 2 Year 3
Year
Cumulative Cash Flow Risk-Adjusted Cummulative Cash Flow
Start Your PPM Program For FREE Today.
Now that you've seen the return-on-investment that you can expect from a project
portfolio management program, don't you think it is time to get started?

Our project portfolio management application Optsee has been developed to

give you the most powerful project prioritization and portfolio optimization tools
available in a single application. When you begin to use and learn more about it,
you'll experience exactly what that means to have the power to act quickly and
decisively when priorities or constraints change and to focus your organization on
the projects that deliver the most value for your investments.
When you consider how you are managing your portfolios today and compare
that to how much faster and easier you could be doing it using Optsee, it is
pretty easy to see that you can achieve far better results with much less effort
and time by using Optsee.
And you can get started for free!

Potential customers often ask how Optsee licensing fees compare to other
products in the market. A recent Forrester survey on IT project portfolio
management surveyed 14 PPM service providers that provide comprehensive
PPM solutions. The average installation cost for these solutions is $150,000 -
$200,000 with an average minimum of $10,000 - $50,000.

You can try Optsee risk-free for 30-days, and we'll provide you with technical
support and personal training on the web at no charge. We want to help you
build, prioritize, and optimize your first project portfolio so you can personally
experience the benefits of project portfolio management using Optsee.

If you want to keep using Optsee after your 30-day free trial, you can license
Optsee with plans starting under $2,500! You're likely to find that Optsee has
paid for itself in savings many time over after you've completed your first portfolio
optimization during your free trial.
Naturally, the most important criteria are the returns you will see from using
Optsee routinely. This depends on your particular situation, but as an example,
after using Optsee to analyze their international portfolio of pharmaceutical
products, one of our clients found that they were extracting 92% of their portfolio
value from just 53% of their products! And, just like you will be able to do, they
used Optsee to reprioritize and then optimize their portfolio to cut costs and
almost double their portfolio returns.

Click here to sign-up for your Optsee free-trial today.