The Business Case for HPE ControlPoint - iCognition · The Business Case for HPE ControlPoint Page 9 of 18 ... HP Structured Data Manager: ... In this analysis only the HPE ControlPoint

The Business Case for

HPE ControlPoint

White Paper

Revision: 3

Date created: 26 September 2016

Principal author: Nigel Carruthers-Taylor

iCognition reference: 15/16495

Executive Summary

The Business Case for HPE ControlPoint Page 2 of 18

Table of Contents

Executive Summary ....................................................................................................................... 3

Business Case for HPE ControlPoint ................................................................................................ 5

A Digital Recordkeeping Platform ................................................................................................ 5

Digital recordkeeping is the core ................................................................................................. 7

Products to supply the Platform .................................................................................................. 8

HPE ControlPoint Cost/Benefit ...................................................................................................... 11

Summary ................................................................................................................................ 11

Details .................................................................................................................................... 12

Executive Summary


Executive Summary

Based on an organisation of 1500 staff and around 25Tb of information in target

repositories, and using a conservative estimation, the implementation of HPE ControlPoint

produces a significantly positive 5 year cost-benefit of $1.7M, a Net Present Value (NPV) of $1.5M, and a benefit-cost ratio of 4.15.

Discount Rate 4% 8% 10%

NPV $1,527,232 $1,330,071 $1,244,290

PV of Total Costs -$484,776 -$452,796 -$438,399

PV of Total Benefits $2,012,008 $1,782,867 $1,682,689

Benefit Cost Ratio 4.15 3.94 3.84

Costs:

Software licences

Setup and maintenance of software

Quantifiable benefits:

Storage savings of $343K over 5 years

Discovery/Freedom of Information (FOI) savings of $1.9M over 5 years

Non-quantifiable benefits:

Managing security and privacy information

Increased productivity for end users

Compliance and regulation risk avoidance.

Digital information in most organisations is distributed across multiple repositories. Only about

30% of this has business value, but the ability to identify and harness this value is difficult.

This also means 70% is redundant, trivial and obsolete information that carries a significant

cost to store and manage.

To manage this, a strategy to implement ‘trusted sources’ of

information underpinned by a digital recordkeeping platform is

recommended.

A digital recordkeeping platform identifies records across multiple information repositories,

such as file stores, email, SharePoint and email, and either manages them as records within

these repositories, or migrates them into a central records repository.

Executive Summary


This central records repository is a digital recordkeeping solution that assists users to save

documents (including emails) directly to it, and also has automated processes to manage

records of high business value stored in other systems. HPE Records Manager/Content

Manager (HPE RM/CM) is such a solution that links to a number of business systems or

information repositories to form an overall Digital Recordkeeping Platform.

HPE ControlPoint links to HPE Records Manager/Content Manager to

manage and control records across multiple repositories. It analyses

the information environment, assesses the value of the information,

finds security related information, controls records through policy, and

harnesses the information for reuse.

While there may be a number of products that make up the Digital Recordkeeping Platform, in

this analysis only the HPE ControlPoint product is analysed to determine the product’s

individual cost-benefit.

Business Case for HPE ControlPoint



A Digital Recordkeeping Platform

Most organisations have an information management environment where information of all

forms is managed in a variety of silos and formats: recordkeeping systems, personal and

shared network drives, SharePoint, email, Financial and HR systems, and line-of-business

systems.

Digital information in most organisations is distributed across multiple

repositories. Only about 30% of this has business value, but the ability

to identify and harness this value is difficult.

The US Compliance, Governance and Oversight Counsel (CGOC) conducted a survey in 2012

that revealed on average 1% of organizational data is subject to legal hold, 5% is subject to

governmental regulatory retention requirements, and 25% has some business value. This

means that around 31% of the existing information held in file stores, email systems, and

other line-of-business systems could be considered records of true value.

If these records are not identified, managed and accessible, then the true value of this

information cannot be harnessed. Not only is this a productivity loss, but discovering and

managing these true records is a difficult problem that can carry significant cost. Further to

this, there are critical security and privacy risks in some of this information, such as

uncontrolled Tax File Numbers, credit card numbers, personal details and passwords, that

organisations need to manage to meet compliance and regulation requirements.

This also means 70% is redundant, trivial and obsolete information

that carries a significant cost to store and manage.

The flip side to this issue is that the 2012 CGOC Study pointed out that the remaining 69% of

the enterprise’s information is redundant, obsolete and trivial information that carries a

significant cost in storage and productivity. The Study concluded that this information could

be defensibly deleted without adversely affecting the organization, thus reducing the overall

digital storage footprint significantly and producing storage savings.

A digital recordkeeping platform is recommended to identify, sanitise,

manage and migrate records across multiple information repositories,

including file stores, email, SharePoint and email.

In this dynamic environment there is often an organisational culture where staff have a

freedom of choice when it comes to using systems and storing information. Therefore it is



very difficult for organisations to replace all information repositories with an enterprise-wide

Enterprise Content Management (ECM) or Electronic Document and Record Management

System (EDRMS). Instead, a digital recordkeeping ‘platform’ can be implemented to provide

ECM/EDRMS functions in targeted areas, and also be used to identify, link and manage

records in key repositories across the environment.

This fully implemented Digital Recordkeeping Platform would be a vehicle for delivering an

exciting change within the information environment and transition the organisation to digital

recordkeeping. It can deliver ‘trusted sources of information’ within the organisation, which is

where Business Information Systems are identified as ‘trusted sources’ for managing particular

information types underpinned by the Digital Recordkeeping Platform. Each ‘trusted source’

would manage the identified key information stored within it using records compliance life-

cycles.

This will allow the creation of ‘trusted sources’ of information,

underpinned by the digital recordkeeping platform.

All trusted sources can then be governed by this platform, bringing the trusted sources

together into an information management and governance framework. The platform would

enable the migration and/or capture of digital records from these sources into the

recordkeeping system, or the application of in-place recordkeeping policies to the information

in its existing repository. These elements would be brought together as a platform where

digital recordkeeping services are accessed across an integration layer within the IT

environment.

This Digital Recordkeeping Platform, as shown in Figure 1, can be expanded to include the

capture of records from business processes or from various presentation interfaces, whether

that be desktop, web, collaborative workspace, or mobile device. Therefore it is a multi-

layered platform that includes the services layer, an integration layer, a business process

layer, and the presentation layer. At each layer several products or components may exist.



Figure 1: Digital Recordkeeping Platform

Digital recordkeeping is the core

The core solution would assist users to save documents (including

emails) directly to it and become a central repository of high value

business information that meets recordkeeping requirements.

The core solution would be a digital recordkeeping solution that, out-of-the-box, provides

users with the ability to share and access information securely. The digital recordkeeping

solution could provide an enterprise system that underpins the day-to-day applications used

by staff, transparently capturing and managing digital objects. The digital recordkeeping

solution would then assist users to save information directly to it and become a central

repository of controlled and managed documents (including emails) that meets recordkeeping

requirements.

The digital recordkeeping solution would enable the management of documents and files

regardless of their format or storage location. This would include all forms of electronic

documents created via email, word processing applications, scanned documents and paper

files.



Additionally, hardcopy records can be managed through a combination of file requests and

using scanning technologies to convert paper-based information into digital forms. Once

converted into digital form the paper based copy can be legally disposed. The end goal would

be to remove the use of all hardcopy files.

Integrating or underpinning corporate applications with the digital

recordkeeping platform would provide a means for transparently

classifying, sanitising and sentencing data in those applications.

The solution is then expanded to form the Digital Recordkeeping Platform that provides a

means for transparently classifying, sanitising and sentencing data from both existing and

future corporate systems, and subsequently managing its timely destruction. This allows vital

systems such as HR, Finance and email systems, which do not have a native records

management capability, to capture, manage and control records within it, thus making them

comply to ISO16175 Principles and Functional Requirements for Records in Electronic Office

Environments.

Products to supply the Platform

HPE Records Manager/Content Manager is a strong product that can provide the required core

digital recordkeeping solution. It is well supported in the Australian and New Zealand markets,

and links to a range of information governance products to provide the Digital Recordkeeping

Platform described above.

Industry analysts Gartner and Forrester conclude that HPE Records Manager/Content Manager

is a leader in the ECM market1. ECM is a superset of EDRMS, and includes technologies such

as web publishing and scanning. In Australia HPE RM/CM is the most prevalent ECM solution,

occupying 75% of the Federal Government market, around 40-55% of the State Government

market, and similar for local governments2. The product also has good private organisation

coverage, and is prevalent in the superannuation, education, and not-for-profit sectors.

1 Gartner Magic Quadrant for Enterprise Content Management, September 2015 and The

Forrester Wave: Enterprise Content Management, Q3 2013

2 iCognition survey for Department of Communications, 2015



HPE Records Manager/Content Manager links a number of modules or

products that can help form the overall Digital Recordkeeping

Platform.

To complete the Digital Recordkeeping Platform, the following additional products could added

to the Integration Layer:

HPE ControlPoint links to HPE Records Manager/Content Manager to

manage and control records across multiple repositories. It can

analyse the information environment, assess the value of the

information, control it as records, and harness it for reuse.

HPE ControlPoint: can be used to analyse an information environment, assess the

value of information through identification and classification, identify security and

privacy related information (e.g. TFN, credit card details, personal information and

passwords), and then improve the information environment by removing redundant,

obsolete and trivial information, migrating vital information to HPE Records

Manager/Content Manager, and/or linking information in-place to HPE Records

Manager/Content Manager to apply records management compliance. The product

comes with out-of-the-box integrations to SharePoint, Exchange, File Stores, iManage

and HPE Records Manager/Content Manager, and a beta version of a Documentum

integration exists.

HP Structured Data Manager: can automate information lifecycle management

and structured data optimization by relocating inactive data from expensive tier 1

production systems and legacy databases to HPE Records Manager/Content Manager.

This enables organisations to retire outdated applications through an automated

process of extracting, validating, and deleting data.

RM Connector: allows multiple line-of-business systems to be linked to HPE Records

Manager/Content Manager to facilitate automated capture, and then exposing of

those records back into the line-of-business systems to allow easy and direct access

to records.

In this analysis only the HPE ControlPoint product is analysed to

determine the product’s individual cost-benefit.

Figure 2 shows how these products form the Digital Recordkeeping Platform.



Figure 2: Products to form the Digital Recordkeeping Platform

HPE ControlPoint Cost/Benefit



Summary

Based on an organisation of 1500 staff and around 25Tb of information in target

repositories, and using a conservative estimation, the implementation of HPE ControlPoint produces a significantly positive 5 year cost-benefit of $1.7M, a Net Present Value (NPV) of

$1.5M, and a benefit-cost ratio of 4.15.

Discount Rate3 4% 8% 10%

NPV4 $1,527,232 $1,330,071 $1,244,290

PV of Total Costs -$484,776 -$452,796 -$438,399

PV of Total Benefits $2,012,008 $1,782,867 $1,682,689

Benefit Cost Ratio 4.15 3.94 3.84

Costs:

Software licences

Setup and maintenance of software

Quantifiable benefits:

Storage savings of $343K over 5 years5

Discovery/FOI savings of $1.9M over 5 years5

Non-quantifiable benefits:

Managing security and privacy information

Increased productivity for end users

Compliance and regulation risk avoidance.

3 The discount rate reflects the opportunity cost of capital, i.e. the return on capital foregone in alternative use of the resources.

4 The benefits and costs are analysed to a Present Value (PV), i.e. the value on a given

date of a series of future payments, discounted to reflect the time value of money and

other factors such as investment risk. Net Present Value (NPV) is the sum of the values of the discounted cash flows.

5 Based on industry wide standard estimates, conservatively reduced and skewed over five

years.



Details

Solution

HPE ControlPoint expands a digital recordkeeping strategy enterprise wide to provide a

substantial part of the digital recordkeeping platform discussed in the first section of this

White Paper. This product is assumed to be an addition to the core digital recordkeeping

solution, HPE Records Manager/Content Manager, to provide a wider platform to:

identify records in other information systems or repositories;

place and enact recordkeeping policies on records held in other repositories;

migrate identified records into a shared recordkeeping platform where suitable.

HPE ControlPoint links to HPE Records Manager/Content Manager out of the box to manage

and control records across multiple repositories, including SharePoint, Exchange, File Stores,

iManage and HPE Records Manager/Content Manager, and a beta version of a Documentum

integration exists. ControlPoint can be used to analyse the information environment, assess

the value of the information, identify security and privacy related information (e.g. TFN, credit

card details, personal information and passwords), and improve the information environment

by migrating vital information to HPE Records Manager/Content Manager, and/or linking

information in-place to HPE Records Manager/Content Manager to better meet records

management compliance and manage information in-place as a vital corporate asset.

Key Assumptions

The following assumptions are made in this analysis:

The organisation is assumed to have 1500 staff and have 25Tb of information in

target repositories.

Only three major discovery exercises are required per year, consisting of an initial

collection of 3.5Gb of data per custodian, 23 custodians assumed, totalling 80.5 GB

total.

The discovery savings are assumed to be conservatively achieved over a period of five

years, starting at 40% in Year 1, and climbing to 80% in Year 5.

Storage saving are estimated on a conservative defensible disposal reduction factor of

40% and a deduplication factor of 15%—meaning 15% of the stored content will be

duplicate files and easily disposed of. Between these two reduction factors, a

conservative estimate of 55% reduction in stored files is assumed to occur over a five

year period.

Quantifiable Benefits

Defensibly disposing the Redundant, Obsolete and Trivial (ROT)

information from enterprise repositories conservatively removes 55%



of the stored information over a five year period. At $25/Gb, this can

be a significant saving.

1. Storage Savings

The solution can be implemented to discover and manage records of value in existing files

stores, email, and systems such as SharePoint and email. These records can be either

migrated into HPE RM/CM, or managed in place by applying policies to the records. The

remainder of the information can be defensibly deleted, giving rise to significant storage

savings.

To calculate the estimated storage saving, a conservative defensible disposal reduction

factor of 40% and a deduplication factor of 15%—meaning 15% of the stored content will

be duplicate files and easily disposed of. Between these two reduction factors, a

conservative estimate of 55% reduction in stored files is assumed to occur over a five

year period.

According to an Osterman Research White Paper, The True ROI of Information

Governance, published February 2015, the true cost of managing tier 1 storage at $25/Gb

per year. This includes the cost of raw storage; as well as the additional costs of

performance tiers, floor space, power/cooling, and the cost of backup and disaster

recovery, etc.

2. Discovery/FOI Savings

Agreed ‘trusted sources’ of digital records can be established,

minimising ephemeral information and making the task of locating the

correct, trusted record much easier and faster.

The identification of records across these information repositories will facilitate faster and

more targeted responses to discovery requests. This cost can be quantified, calculated on

less information to search and review, faster and better search mechanisms, faster

retrieval and access to information, as well as speeding up review processes through

automatic categorisation and reduced time to assemble a responsive collection.

Discovery, including FOI searches, is dependent on the collection of all potentially

responsive content, no matter where it is stored, so that it can be reviewed for privilege

and relevancy before being turned over to the opposing counsel.

For most organizations, the document review process is the costliest and most time-

consuming part of discovery, which makes it extremely important to avoid over-collecting

data. Over collection is usually a result of ineffective or non-existent information

management processes. Because data can be scattered across the enterprise with little or

no indexing or management, discovery collection teams will grab everything they can find



with the expectation that they will filter it later for relevance. Universally, the “data grab”

technique forces more content to be manually reviewed, dramatically driving up the

overall cost of discovery.

Using figures identified and referenced to industry sources in the Osterman Research

white paper6, it is assumed that:

an initial collection of 3.5Gb of data per custodian, 23 custodians assumed,

totalling 80.5 GB total

this is later culled down to 46.7 GB using additional search and filtering

techniques

46.7 GB totals 560,280 documents (assuming 12k documents per GB), and is

assumed to be reviewed manually by legal professionals for privilege and

confidentiality

utilizing legal industry standard of a manual review rate of 50 pages per hour at

$60 per hour, it is estimated that the total number of manual review hours is

11,205

multiply total review hours by the hourly review rate, and a total discovery review

cost of $0.672 million for a single discovery event is calculated

multiply by the average number of discoveries per year (conservatively assumed

to be three)

conclude with a total annual estimated discovery cost of $2.04 million.

The above figures are considered to be aggressive, so for this analysis it is assumed that

these figures will be slowly achieved over a period of five years, starting at 40% in Year 1,

and climbing to 80% in Year 5.

Non-quantifiable Benefits

Non-quantifiable benefits are of equal importance in cost-benefit

analysis, as they often include significant efficiencies and productivity

enhancements, as well as ensuring compliance and a platform for

further innovation.

1. Managing security and privacy information

Identifying and managing security and privacy related information, such as Tax File

Numbers, credit card details, personal information and passwords is a critical risk

management issue for any corporation and organisation, and each year this risk increases

6 Figures from the 2012 CGOC Study, Osterman Research White Paper, The True ROI of

Information Governance, published February 2015



importance as digital transformations ramp up. Not only does this issue cut to the heart of

privacy concerns for the public, but issues such as unauthorised or inappropriate storage

of passwords in emails and network directory files really open the organisations to major

security risks.

The cost of not managing these risks are not easy to quantify, but one password hacking

incident could result in serious or even extreme impacts. Additionally, the leak of personal

information, particularly TFNs or credit card numbers could result in a significant legal

event where costs could be very high.

2. End user productivity gains

Increases in productivity through faster search, retrieval and access to information.

Employees spend a measurable amount of time searching for old content for reuse and

reference. When they can’t find the data they need, they end up spending more time

recreating the data they couldn’t find. Using HPE ControlPoint will remove the ROT and

ensure that data can be found quickly, eliminating the need to recreate lost information.

3. Compliance and regulation risk avoidance

Compliance and regulation risk avoidance through stronger records management across

the enterprise. Risk avoidance is a technique of risk management that involves taking

steps to remove exposure of negative events, such as the cost of not being able to

respond quickly to key stakeholders (or produce records at all), or the cost of losing a

legal case due to insufficient or incomplete collection processes, or the inability to

demonstrate compliance to regulations. The risk could include significant embarrassment

or lost revenue due to negative publicity and reduced business. It could even include fines

imposed by a court or regulators, and payment of the opposing counsel’s costs.

Savings from compliance and regulation risk avoidance is a difficult variable to quantify.

For those organizations that have not directly experienced these kinds of issues, risk

avoidance calculations are somewhat meaningless, and therefore it is shown as a non-

quantifiable benefit.

Cost

The key cost for HPE ControlPoint is the licence and associated annual maintenance, which is

sold on the volume of information required to be indexed. In this case, the organisation is

assumed to have 1500 staff and have 25Tb of information in target repositories.

The licence price is not displayed in this document due to the commercial-in-confidence

nature of this information. However the price is rolled up into the implementation cost which

also includes the implementation services. The latter includes installation, configuration and

deployment of the HPE ControlPoint product.



Quantifiable Cost/Benefit Analysis

Based on an organisation of 1500 staff and around 25Tb of

information in target repositories, and using a conservative estimation,

the implementation of HPE ControlPoint produces a significantly

positive 5 year cost-benefit of $1.7M, a Net Present Value (NPV) of

$1.5M, and a benefit-cost ratio of 4.15.

Costs Year 1 Year 2 Year 3 Year 4 Year 5 Total

Software Licence, Installation and Support $331,146 $47,666 $47,666 $47,666 $47,666 $521,808

Total $331,146 $47,666 $47,666 $47,666 $47,666 $521,808

Savings Assumptions Storage saving as % of total storage 5% 10% 20% 10% 10% Discovery savings as a % of total achievable 40% 50% 60% 70% 80%

Savings Year 1 Year 2 Year 3 Year 4 Year 5 Total

Storage Savings (based on % identified above) $31,250 $62,500 $125,000 $62,500 $62,500 $343,750

Discovery Savings $259,200 $324,000 $388,800 $453,600 $518,400 $1,944,000

Total $290,450 $386,500 $513,800 $516,100 $580,900 $2,287,750

Cost less benefit $40,696 -$338,834 -$466,134 -$468,434 -$533,234 -$1,765,942

Key savings storage cost management reduction, and discovery/findability effort savings:

The solution will be implemented to discover and manage records of value in existing

files stores, email, and systems such as SharePoint and email. These records can be

either migrated into HPE RM/CM, or managed in place by applying policies to the

records. The remainder of the information can be defensibly deleted, giving rise to

significant storage savings.

Additionally, the identification of true records across these information repositories will

facilitate faster and more targeted responses to legal discovery requests. This cost

can be quantified, calculated on less information to search and review, faster and

better search mechanisms, faster retrieval and access to information, as well as

speeding up review processes through automatic categorisation and reduced time to

assemble a responsive collection.



Conclusion

These savings of $1.76M, which produces a Net Present Value of $1.5M (discounted at a

conservative 4%), combined with the significant non-quantifiable benefits of managing

security and privacy information, efficiencies and productivity enhancements, as well as

ensuring compliance and regulation risk avoidance provides the HPE ControlPoint solution with

a very strong cost/benefit assessment

Moreover, this solution establishes a platform for further innovation,

where other components can be added to the platform over time. This

includes components that provide the ability to integrate and link

controlled information and records to corporate applications, or archive

databases to the records management system, or provide a federated

search to end users. .

18

About iCognition

iCognition provides practical leadership, solutions and services for the management and

governance of enterprise information. Our vision is to be the trusted advisor of choice to our

clients for enterprise-wide information management and governance consultancy and solutions

implementation.

iCognition’s goal is to ensure enterprises maximise the value of their information, while

minimising cost and risk. We use an integrated Information Governance model that combines the

disciplines of data, records, and information management to value, manage, control and harness

information across the enterprise. This model applies a strategic design approach at the policy,

governance, systems and change management levels.

At the systems level we provide useful, usability, effective and satisfying information

management systems. We combine business and technical skills to deliver well designed and

considered solutions and cloud services using a combination of third-party products, integrated

systems, and value-added Commercial-Off-The-Shelf interfaces and solutions developed by

iCognition, called our Diem Solutions.

http://www.icognition.com.au/cloud-solutions.html

http://www.icognition.com.au/products.html

Documents

The Business Case for HPE ControlPoint - iCognition · The Business Case for HPE ControlPoint Page 9 of 18 ... HP Structured Data Manager: ... In this analysis only the HPE ControlPoint