Save up to 75%

IT Information Management (ITIM) is a departure from familiar IT documentation and traditional document management. Such a paradigm shift begs the question: Will it be worth it in the short term, or at least the long term? Or will it simply create more expenditure? Is there a positive business case?

In the following we will consider the ITIM Business Case on the basis of two different examples:

  1. Application documentation
  2. Documentation for a service transition

… and with a comparison of two action scenarios:

  1. Traditional documentation (uncoordinated, downstream creation of Single Purpose Documents by technical experts)
  2. Use of IT Information Management

Spoiler: Use of Information Management leads to enormous savings. This article will focus on how these savings arise.

Business cases are generally calculated over long periods of time and based on extensive assumptions. In addition to direct and measurable financial parameters they often also take into account strategic effects, which often results in a positive business case. The aim is for this not to happen in this case. Only directly measurable factors should be included. Strategic improvements and long-term cost optimisations are only mentioned if they also represent an actual long-term benefit of IT Information Management.

 

1.1   Time Spent on Documentation is Reduced by 75%

But how? Lets look at what consistently takes a lot of time. This is where reductions need to occur. Documentation is carried out by IT experts, and the reduction essentially comes from two components:

  • They document only and exactly what is needed. This will save them at least 50% in terms of effort. Information managers control the process. Nothing superfluous, no overlapping documentation any longer.
  • Everyone does what they do best. This will save them another 50% of the effort. Technical experts focus their expertise on small units, not on the creation of large documents, neither on formulations, formats, or graphics. This is what Information Managers can do better.

(Watch the video about the Business Case [02:20 min])

Overall, the total effort for IT Information Management, in other words IT experts plus Information Management, is at least 75% less when compared to the time spent on traditional processes. Graphic

What do Information Managers do differently?

Information Managers specialise in editorial work and the creation of graphics, videos, audio and process overviews. They are very familiar with tools that lead to higher productivity. This is further increased by the use of templates as well as learned procedure models and methods. At avato, Information Managers also undergo additional training including the ITIL Foundation and certification as a Certified Information Professional (CIP).

 

1.2   What Does Traditional Documentation Cost?

Up to 75% of the ongoing efforts for traditional documentation can be saved. But what does that amount to? Depending on the area and scope, experience shows that this accounts for between 4% and 8% of total working time for IT staff. This might sound harmless, but it adds up. As well as this, there can also be special documentation requirements, such as for an upcoming audit or a service transition. Here the proportion of working time spent on documentation is no longer 6% but can instead at times easily be at least 25%.

 

1.3   Initial and Ongoing Costs – ITIM vs. Traditional Documentation

How high are the initial and ongoing costs for ITIM? The quick answer is: It depends! The more detailed response: Do you already know where you want to start and where the need is most pressing? Do you know your goals and can you name Accountables and Responsibles*? Can Information Managers adequately access these?

If you can already answer these questions then it will take a few days to a few weeks depending on the amount of documentation.

The following examples show what the business case could look like in concrete terms.

 

Example 1: Application Documentation

Regulatory requirements mean that technical documentation should be created for an applications with up to 10 environments. The current development and operations team contains 26 people, half of which are external employees.

Prerequisites: The Accountable for the application is included and can name all the Responsibles (those with technical responsibility). They are all adequately available and can each invest a total of 1 working day. In this case, ITIM can be set up for the application after one week and the reduction of effort will take effect in the second week.

The use of ITIM will save you EUR 7,000 per month (details of the calculation can be seen in the annex).

 

Example 2: Documentation for a Service Transition

A service will be outsourced to a service provider. To prepare for the service transition, your ITSM processes and technical environment need to be documented. There is also a need to prepare a number of Work Instructions and How-Tos. Your current team contains 26 people, half of which are external employees.

The basic principle applies again: The Accountable for the service area is included and can name all the Responsibles. They are all adequately available and can each invest a total of 2 working days. In this case, ITIM can be set up for the application after three weeks and the reduction of effort will take effect in the fourth week.

With ITIM you save EUR 42,200 by investing in documentation that not only makes the transition possible but is also usable and maintainable in the long term (details of the calculation can be seen in the annex).

 

⚠  Assumptions were used in the examples. The expenditure for ITIM and the potential savings naturally depend not only on the scope of IT and the areas included but also on the current operating expenditure for traditional documentation.

 

When is the Best Time? When is ITIM a Must?

In these 4 scenarios there is no alternative to Information Management on the path to success:

1. Your external partners document in the conventional way.
Start IT Information Management to reduce the number of required external partners!

2. You have a backlog of your IT projects.
Start IT Information Management to stop “wasting too much time” on the documentation part.

3. The support for your experts is external and too expensive.
Minimize the need for external support – with a comprehensive, high-quality documentation.

4. You have a backlog of documentation.
Start IT Information management to utilize the power of specialization. The backlog will be eliminated in no time.

 

Summary

Information Management offers IT great savings potential when it comes to documentation effort. There are two reasons: For one thing, only what is really needed is documented. Nobody documents only for themselves, or documents the same thing as their colleagues. The documentation process is comprehensively controlled. Secondly, the high level of savings comes from the fact that everybody does what they do best. IT experts contribute information while Information Managers control the process and take care of templates, methods, language and formats. All in all, IT experts save 75% of the time that they spend on documentation without ITIM. In certain situations there is no alternative to IT Information Management.

 

Appendix

Example 1: Application Documentation

Regulatory requirements mean that technical documentation should be created for one of your applications with up to 10 environments.

Your team contains 26 people, half of which are external employees.

Your Costs for Traditional Documentation

The monthly cost for traditional documentation is:

  • 6% of the project/work time: A total of 28 man-days
  • Monthly costs: EUR 18,525 (26 * EUR 650 * 18 * 6%)
    (average 18 man-days per person per month; EUR 800 external day rate and EUR 500 costs for internal employees)

ITIM Saves you EUR 7,000 per Month

Every team member will invest one working day (= 26 days) in the transition from traditional documentation to Information Management.

Your one-time investment costs: 26 * EUR 650 = EUR 16,900

After successful transition to ITIM, your team will save up to 75% of the time they spent on traditional documentation. This is a reduction of 21 man-days.

The outlay for Information Management is around EUR 5,900 per month.

Your one-time investment for documentation that is usable and maintainable in the long term is EUR 16,900.

After the transition to ITIM you will save EUR 7,000 per month.

 

Example 2: Documentation for Service Transition

An IT service is being outsourced to a service provider. To prepare for the service transition, your ITSM processes and technical environment need to be documented. In addition to this, there is a need to prepare a number of Work Instructions and How-Tos.

Your team contains 26 people, half of which are external employees.

Your Costs for Traditional Documentation

In normal daily operations each of your team members spends 6% of their time on documentation. However, if there is a need for more extensive documentation, for a certain period of time (here 1 month) the effort will increase to 25% of work hours.

Your costs for traditional documentation are:

  • 25% of the project/work time: A total of 117 man-days
  • Costs: EUR 18,525 (average 18 man-days per person per month; EUR 800 external day rate and EUR 500 costs for internal employees 26 * EUR 650 * 18 * 25%)

Your one-time documentation effort without ITIM is 117 days. This corresponds to around EUR 76,000.

ITIM Saves you EUR 42,000

Each member of your team invests 2 days, making a total of 52 man-days. With ITIM your one-time documentation effort is therefore EUR 33,800 (EUR 800 external day rate and EUR 500 costs for internal employees).

Your investment for documentation that not only makes the transition possible but is also usable and maintainable in the long term is EUR 33,800. You save EUR 42,200.

 

⚠  Assumptions were used in the examples. The expenditure for ITIM and the potential savings naturally depend not only on the scope of IT and the areas included but also on the current operating expenditure for traditional documentation.

Do you have any question? Simply email to: marketing@avato.net

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Date: November 2019
Author: Jennifer Gitt
Contact: marketing@avato.net
www.avato-consulting.com
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