Kcgisroi study20111102

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ROI: King County Measures the Benefits of GIS

Greg Babinski, MA, GISPFinance & Marketing ManagerKing County GIS CenterSeattle, WAURISA President-Elect

2011 GIS-Pro ConferenceNovember 2, 2011Indianapolis, IN

AgendaIntroduction & background to the GIS ROI Study

GIS ROI Documentation Studies

2010 Oregon/King County GIS ROI Study

Preliminary Results

Next Steps

Discussion

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ROI Estimates & Benefit-Cost Analysis

Common tool for analyzing & configuring development plans

Typically result in an estimate or forecast of business benefits

ROI Estimates & Benefit-Cost Analysis

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King County, Washington

Microsoft

Boeing

Paccar

Nordstrom's

Amazon

Starbucks

Port of Seattle

Weyerhaeuser

Univ. of Washington

Google

Skype?

Population (1,931,000 (14th most populous US county)Area: 2130 square miles (sea level to 8,000’)39 incorporated citiesViable agricultural and private forestry areasRemote wilderness & watershed lands

King County GIS - Development History:

Originated with 1992 PlanGraphics study

1992 Benefit Cost Analysis1992-1994 King County – Seattle Metro merger

1993 joint King County – Metro GIS scoping plan – reduced scope approved by King County Council

1993-1997 GIS capital project executed

1997 KCGIS O&M begins

2002 KCGIS Consolidation implemented

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King County GIS – 1992 GIS ROI Estimate


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2004 KCGIS Issue 4 Report:Reduced budget delivered reduced scope

Only 15% of 126 applications completed via capital project

Significant data deficiencies recognized

2004 – 2011 KCGIS Development:

500+/- desktop GIS users

100,000 annual internal web based GIS user sessions

2.2 million annual external web based GIS user sessions

50 GIS professionals

GIS use expanded from 12 to 35 county departments and offices

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GIS ROI Documentation Studies?

Why are they not required?

Why are they not performed?

GIS ROI Documentation Studies?Baltimore County, MD

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GIS ROI Documentation Studies?Baltimore County, MD

GIS ROI Documentation Studies?State of Oregon

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GIS ROI Documentation Studies?State of Oregon

GIS ROI Documentation Studies?New Zealand

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Oregon/KCGIS GIS ROI Study Project

Conceived during 2009 URISA AC in Anaheim

Approach finalized during 2009 ULA in Seattle

State of Oregon & King County joint funding

KCGIS 2010 Priority Initiative

Managed by KCGIS Center

KCGIS GIS ROI Study

May 2010 RFP sent to targeted consultants

June 2010 consultant selection

August 2010 contract signed

July 2010 work began

September & October 2011 Preliminary Results Released

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KCGIS GIS ROI Study

Consultant Team from UW Evans School of Public Affairs:

Prof. Richard W. Zerbe Danielle Fumia & Travis Reynolds

Pradeep Singh & Tyler Scott

KCGIS GIS ROI Study


Benefit-Cost Analysis Center

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KCGIS GIS ROI Study


Society for Benefit-Cost Analysis

KCGIS GIS ROI Study

Scope of Work:Literature Review

Qualitative Interviews (n = 30)

Quantitative Survey (n = 200)

Final ROI Report

Revised Interview/Survey Instruments for future studies

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Methodology:‘With versus without” research design.

What would have happened if KCGIS applications had not been implemented and how is King County better off having them?

Literature review and qualitative interviews will identify key benefits associated with GIS applications (e.g., increased productivity).

Questionnaire will allow assessment of the extent to which these benefits have been realized across different groups of users of GIS applications, as opposed to what these users would have done in the absence of GIS applications.

By comparing the “with and without” scenarios, we can assess and monetize the added value of the GIS applications to compare to the costs of implementation, maintenance, and/or additional training.

KCGIS GIS ROI Study

Current Status:

Interviews & Surveys completed:

Use Survey Monkey

Feed data base

Run excel based algorithms

Preliminary Benefits Report

KCGIS GIS ROI Study

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30 Detailed Interviews Completed

175 Survey Responses (some partial responses)

KCGIS GIS ROI Study: Preliminary Results

PERTINENT SURVEY QUESTIONS

Please estimate the number of each output you currently produce (in 2010), being clear about the time frame (per day, per year, etc.). Also state the total number of outputs from your agency (if known), and the number of employees and full-time employees (FTEs) currently working on producing this output.

If you answered that you did not produce a given output in the previous section, you may skip the personal production questions.

• How many units of this output do you personally produce? Choose # of units:

• How many units of this output do you personally produce Per Unit of Time:

• What percent of your time do you spend producing each output now? (%)

• What percent of your time do you spend producing each output now: Per Unit of Time:

• Number of Employees in your workgroup (including you) currently producing this output:

• Total FTEs in your workgroup (including you) currently producing this output:


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PERTINENT SURVEY QUESTIONS

Again, the outputs commonly produced by your agency are listed below in the first column. If you were not present when the output was produced without GIS, please answer No to the first question but provide your best estimate for the remaining questions.

For each output, please indicate how having GIS has impacted labor productivity for you personally and for your agency overall.

• Did you personally produce this output without GIS?• How many units of this output did you personally produce prior to GIS? Choose # of

units:• How many units of this output did you personally produce Per Unit of Time prior to

GIS:• What percent of your time did you spend producing each output prior to GIS? (%)• What percent of your time did you spend producing each output Prior to GIS: Per Unit

of Time:• Number of Employees in your workgroup (including you) producing this output prior

to GIS:• Total FTEs in your workgroup (including you) producing this output prior to GIS:


“An analysis of the survey responses indicate that overall the use of GIS – compared to not having the GIS technology -- had a benefit of $159.9 million per year.

“The benefits were further broken down into benefits received from cost-savings and benefits received from increased productivity, which was estimated to be $11.1 million and $148.8 million per year respectively.

“We think it likely that the demand curve for GIS type output has increased in recent year. If we allow for this, we estimate the gross gains from increase in productivity and lower costs for pre-GIS output to be $308.8 million per year.

“Thus a reasonable estimate of total gains is between $159.9 million and $309 million per year. “


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“Thus a reasonable estimate of total gains is between $159.9 million and

$309 million per year. “


Results by Departments:DNRP (except WTD): $87.44 million

Wastewater Treatment: $54.45 million

Department of Transportation: $18.76 million

Department of Assessments: (-)$2.7 million

Based on no increase in demand curve


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Benefits with no shift in demand curve: $159.9 million per year


Benefits with shift in demand curve: $308.8 million per year


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Future Steps:

Finalize Cost-Benefits Report

Determine ROI

Great interest within KC government

Compare with Twin Cities/Metro GIS Parcel Data ROI study

Compliment & Inform Multnomah County ROI study

Follow on FGDC CAP grants anticipated

URISA ROI Workshop development

KCGIS GIS ROI Study

Acknowledgement:• State of Oregon GIS

• Richard O. Zerbe & UW GIS ROI Study Team

Comments & Discussion

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Greg Babinski, MA, GISPURISA President-ElectSUMMIT Chief Editor

Finance & Marketing ManagerKing County GIS Center201 South Jackson Street, Suite 706Seattle, WA [email protected]/gis

Technology

Kcgisroi study20111102