What’s the ROI when implementing Performance Management Analytics Projects?

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Frank Stein

Apparently, pretty good, according to Nucleus Research. They recently

completed 2 ROI Case Studies of 2 government analytics projects. Both

showed impressive results:

  • Alameda Country Social Service Agency’s Social Services Integrated Reporting System
    (SSIRS) had an ROI of 631% and a payback of 2 months
  • Memphis Police Department’s Blue CRUSH (Criminal Reduction Utilizing
    Statistical History) had an ROI of 863% and a payback of 2.7 months

The ROI calculations may even be conservative as Nucleus Research appears

to assume that the agency and department will pay taxes on the annual

benefits from the solutions.

The SSIRS system helped Alameda County reduce overpayments to non-compliant
citizens, improve their win rates when claimants appealed

discontinuation of benefits, and improved caseworker productivity. The

system is essentially a Business Intelligence solution giving the

caseworkers access to information about their clients, with dashboard

and drill down capabilities. It also provides the caseworkers and

managers with immediate information on “how am I doing?”. Providing caseworkers with information on their clients’ work

participation rate and other performance metrics was key to improving

the performance of the social service agency. The solution combined

Cognos Business Intelligence, Infosphere Identity Insight, and an

Infosphere warehouse to hold all the data. Identity Insight helps the

caseworkers track the relationships between the various clients (e.g.,

parent/child) that may impact services offered. Here is a video where

Don Edwards, Assistant Agency Director, talks about the solution: YouTube Video



The Blue CRUSH solution helped the Memphis Police Department (MPD) to identify crime “hot spots” and then target these areas for increased attention. As a result, MPD has reduced violent crime without additional staffing. The

solution uses IBM SPSS Predictive Analytics software to analyze crime

data pertaining to type of criminal offense, time of day, day of week,

location, and the weather. The solution was developed with the

assistance of the University of Memphis Department of Criminology and

Criminal Justice.

Memphis Police Department received a National award from Nucleus Research for this solution. They were one of only
ten companies and governmental agencies to receive the Nucleus

Research ROI award. Out of 350 technology projects that were

submitted, the Memphis Police Department was one of only two

governmental agencies to receive an award. The other governmental

agency was the US State Department.


If you’d like more information on these two case studies please contact me at ascdc@us.ibm.com.

By the way, we are having a free seminar on LEVERAGING ANALYTICS IN GOVERNMENT ON SEPT 16TH at 8:30am at our DC Offices. Registration Required at www.ibm.com/events/federal

More information about Analytics, including our Fall Analytics Seminar Series, can be found at www.ibm.com/ASCdc

Frank Stein
Director, Analytics Solution Center
Washington, D.C.

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