Business Processes Analysis & Exchange Network Return on Investment

1. Business Processes Analysis & Exchange Network Return on Investment Exchange Network Users Meeting Hilton San Francisco Hotel, Continental Ballroom April 18-19, 2006

2. ROI for Exchange Network • Purposes • EPA needs cost saving data to justify future EN funding • States need cost data to show benefits prior to EN projects • ROI Project Results • Investigate 5 data flows • Develop a model to systematically quantify ROI values • Monetary values • Qualitative improvements • Develop an Excel program that: • Calculates ROI values for five data flows • Extensible to accommodate different state IT project environments • Screening tool for developing plans for EN projects

3. We Need Quantifiable Answers to These Questions …. • “What are either the benefits of, or compelling reasons for, electronic reporting (i.e., EN technologies)?” • “What percent of your target audience is using it?” • “Do you think you’ll see a return on your application development investment?”

4. ROI Project Objectives • analyze environmental business processes, • develop a reusable tool to model the return on investment from implementing EN technologies, • develop a final report & guide describing the ROI model and its application for facility, state, & EPA applications, and • publicize economic benefits of implementing EN technologies

5. Data Flows • AQS - The Air Quality System • DMR - Discharge Monitoring Reports • RCRA - Resource Conservation and Recovery Act • SDWIS - Safe Drinking Water Information System • TRI - Toxics Release Inventory

6. Surveyed States • Michigan • New Jersey • Washington • Pennsylvania

7. Site Visit Accomplishments • Gather state information to verify the initial Model’s • Business Processes for the data flows (before & after EN) • Operational scenario differences among different states • Actual state values for ROI calcuations • Improve the ROI model • Collect quantitative information regarding the cost of maintaining data flows • Use information gathered to assess the Return on Investment associated with the implementation of EN technology • Document qualitative improvements

8. ROI Model – Technical Procedures

9. ROI Model – Business Process Analysis eDMR Dataflow

10. ROI Model – ROI Factors & Input Parameters

11. ROI Model – State Survey • State Survey is divided into 3 sections • Business Process Analysis – Verify the business processes associated with each data flow (including all potential cost factors and various operational scenarios for every state) • Assessment of State Costs – Determine cost estimates for each ROI factor (step in the business process) • Qualitative Factors Survey – Determine what qualitative benefits are associated with the project

12. ROI Model – ROI Calculations (eDMR Dataflow) Facility-to-State Cost Factors

13. ROI Model – ROI Calculations (eDMR Dataflow) Facility-to-State Cost Factors

14. ROI Model – ROI Calculations (eDMR Dataflow) State-to-EPA Cost Factors

15. ROI Model – ROI Calculations (eDMR Dataflow) Implementation Cost Factors

16. ROI Model – ROI Calculations (eDMR Dataflow) Financial Model

17. ROI Model Overview – Step 1, 2, 3

18. ROI Model Overview – Step 4, 5, 6, 7

19. Qualified Benefits to Facilities & Labs “Saves my compliance administration costs…streamlines the reporting process” “…provides immediate feedback of compliance status for proper actions” “…will increase the amount of data accessible for trend analysis” “…data entry errors are reduced…” “Time saver…more traceable than paper…immediate confirmation of receipt” “…at least half a million dollars [savings] for all community and non-community facilities and labs…”

20. Eliminates data entry operators and other staff resources Improves facility to state data quality by elimination of data entry errors Improves the program effectiveness/efficiency Improves response to public health concerns Allows staff to better utilize precious resources Eliminates backlog of paper reports Qualified Benefits to State & EPA

21. Deliverables • Analytical ROI model and guidance documentation capable of incorporating facility, state and EPA business process variables. • Business process analysis of 5 data flows at four states, survey of facility and state representatives with data collection of ROI variables and quotes. • Final report. • Marketing materials highlighting project purpose, process, analysis and model development results.

22. Final Report/Guide Report Content: • Explain the ROI modeling tool • Summarize findings in each state • Draw conclusions about EN impacts to business process efficiencies The report benefits: • Aid state agencies with annual budgets, IT project strategies and priority deliberations; • Assist state project managers in making EN investment proposals to management; and • Assist ongoing state, Network & CDX performance measures projects.

23. More Info? Michael BeaulacTony Jeng Executive Division enfoTech & Consulting, Inc. MI Department of Environmental Quality Lawrenceville, NJ 08648 Lansing, MI 48867 609-896-9777, ext. #107 517-241-7808 tony_jeng@enfotech.com beaulacm@michigan.gov Kurt Rakouskas Molly O’Neill ECOS ECOS Washington, D.C. 20001 Washington, D.C. 20001 202-624-3684202-624-3507 kurtr@sso.orgmoneill@sso.org