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

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.

Views: 32

Tags: ASC, PM, analytic, budgeting, business, government performance, intelligence, management, performance, roi, More…tech

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Comment by Candace Riddle on September 15, 2010 at 8:31am
Neat!

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