This presentation describes a Return on Investement study of King County GIS in Washington state, covering the period 1992 through 2010. The study was conducted by Dr. Richard Zerbe and Associates from the University of Washington School of Public Affairs.

1. Using ROI Methodology to Document the
Benefits of King County GIS
Esri Annual User Conference
San Diego, California - July 24, 2012
Greg Babinski, MA, GISP
Finance & Marketing Manager
King County GIS Center
Seattle, WA
URISA President
Summit Chief Editor

2. Agenda
 Introduction & background to the GIS ROI Study
 GIS ROI Documentation Studies
 2010-2012 Oregon/King County GIS ROI Study
 Preliminary Results
 Next Steps
 Discussion

3. ROI Estimates & Benefit-Cost Analysis

4. ROI Estimates & Benefit-Cost Analysis
 Common tool for analyzing & configuring development
plans
 Typically result in an estimate or forecast of business
benefits

5. King County,
Washington
 Microsoft
 Boeing
 Paccar
 Nordstrom's
 Amazon
 Starbucks
 Port of Seattle
 Weyerhaeuser
Population (1,931,000 (14th most populous US county)
 Univ. of Washington
Area: 2130 square miles (sea level to 8,000‟)
39 incorporated cities  Google
Viable agricultural and private forestry areas  Skype
Remote wilderness & watershed lands

6. King County GIS – 1992 GIS ROI Estimate

7. King County GIS – 1992 GIS ROI Estimate

8. King County GIS - Development History:
 Originated with 1992 PlanGraphics study
 1992 Benefit Cost Analysis
 PlanGraphics identified 126 business applications
and a $22 million capital cost estimate
 1992-1994 King County – Seattle Metro merger
 1993 joint King County – Metro GIS scoping plan
– reduced $6.8 million scope approved by King
County Council
 1993-1997 GIS capital project executed
 1997 KCGIS O&M begins
 2002 KCGIS Consolidation implemented

9. 2012 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
 But where are we really on the optimal development of
GIS in King County?
 What was (is) our ROI?

10. GIS ROI Documentation Studies?
 Why are they not required?
 Why are they not performed?

11. GIS ROI Documentation Studies?
Baltimore County, MD

12. GIS ROI Documentation Studies?
Baltimore County, MD

13. Why GIS ROI Documentation Studies?
State of Oregon

14. Why GIS ROI Documentation Studies?
State of Oregon

15. GIS ROI Documentation Study Breakthrough
New Zealand

16. GIS ROI Documentation Study Breakthrough
New Zealand

17. 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

18. 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
 March 2012 Final Report Published

19. 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

20. KCGIS GIS ROI Study
Consultant Team from UW Evans School of Public Affairs:
 Benefit-Cost Analysis Center

21. 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

22. KCGIS GIS ROI Study: Methodology
With or without survey methodology:
 How has GIS altered agency output levels?
 Benefits associated with FTE reductions to produce the same (pre-GIS)
level of output
 Benefits associated with enhanced production with the same FTE levels
 Three stage analysis:
 Interview agency heads and key employees to assess the types of
applications and business uses. Interviews were used to build an
employee survey.
 Employees and managers across King County responded to the survey to
record their pre and current (or with vs. without) GIS productivity by
output types.
 Interview and survey results were compiled by output type, agency, and
productivity levels. Results were then monetized.
 Monetized benefits compared to detailed GIS capital O&M,
and end-user costs

23. KCGIS GIS ROI Study Results

24. KCGIS GIS ROI Study Results
“The most conservative estimate presented
finds that the use of GIS has produced
approximately $775 million in net benefits
over the eighteen year period from 1992 to
2010….
Thus a reasonable estimate of total gains is
between $180 million and $87 million in
2010.”

25. KCGIS GIS ROI Study Results
Theoretical basis for cost and benefit calculations

26. KCGIS GIS ROI Study
Future Steps:
 Article in ICMA ESRI Press Book of GIS for Elected Officials
 Likely articles by Dr. Zerbe & colleagues in GFR, URISA Journal
 Analyze detailed department results
 Analyze detailed benefits by output type
 Analyze detailed benefits by productivity type
 Tell our bosses - great interest within KC government
 Compare with Twin Cities/Metro GIS Parcel Data ROI study
 Compliment & Inform Multnomah County ROI study
 URISA ROI Workshop development
 Refine methodology
 Encourage/support more studies

27. KCGIS GIS ROI Study
Questions & Answers:
 At what stage is KCGIS in the total potential business use of GIS?
 Are the KCGIS results „good‟?
 How do we know?
 Do we need similar studies of other large counties?
 What about a single „latitudinal‟ study of 10 mid-sized cities in
Washington & Oregon?
 Are government agency officials not now compelled to pursue full
GIS development?

28. Acknowledgement:
 State of Oregon GIS and Cy Smith, Oregon GIO
 KCGIS Technical Committee
 Richard O. Zerbe & UW GIS ROI Study Team
 KCGIS Center Interview team:
 George Horning, Manager
 Greg Stought, Enterprise Services Manager
 Dennis Higgins, GISP, Client Services Manager
 Debbie Bull, GIS DBA
 Greg Babinski, GISP, Finance & Marketing Manager
Questions, Comments & Discussion
Learn More:
• ArcNews: Summer 2012: http://www.esri.com/news/arcnews/summer12articles/king-
county-documents-roi-of-gis.html
• Access full report on King County web site: www.kingcounty.gov/gis

29. Greg Babinski, MA, GISP
URISA President-Elect
SUMMIT Chief Editor
Finance & Marketing Manager
King County GIS Center
201 South Jackson Street, Suite 706
Seattle, WA 98104
206-263-3753
greg.babinski@kingcounty.gov
www.kingcounty.gov/gis