Watch full webinar here: https://bit.ly/3oaKSzu Gartner has predicted that organizations using Data Virtualization will spend 40% less on data integration than those using traditional technologies. Denodo customers have experienced time-to-deliver improvements of up to 90% within their data provisioning processes and cost savings of 50% or more. Join us for this webinar to discover how Data Virtualization can help accelerate your time-to-value from data while reducing the costs at the same time. As Rod Tidwell (Cuba Gooding Jr.) said in the movie 'Jerry Maguire', "Show me the money!" Register to attend and learn how Data Virtualization can: - Accelerate the delivery of data to users - Drive digital transformation initiatives - Reduce project costs and timelines - Quickly deliver value to your organization

1. DATA VIRTUALIZATION PACKED LUNCH
WEBINAR SERIES
Sessions Covering Key Data Integration Challenges
Solved with Data Virtualization

2. ROI and Economic Value of Data
Virtualization
Paul Moxon
SVP Data Architectures & Chief Evangelist, Denodo

3. Agenda
1. Overview of ROI
2. Components of ROI
3. Denodo ROI Calculator
4. Summary
5. Q&A
6. Next Steps
3

4. Overview of ROI
• ROI is a key part of building a business
case for your project or initiative
• Data Virtualization projects are no
exception
• Data Virtualization ROI can come from
many sources:
• IT development and operational cost
savings
• Accelerated projects and improved
productivity through quicker access to
better data
• New/incremental revenues from new
products or services enabled through Data
Virtualization
4

5. Components of ROI
• IT Savings
• IT Development costs savings
• IT Operations cost savings
• Business value
• Improved productivity
• Additional revenues enabled
• Denodo investment
• Licenses
• Training, Services, etc.
5

6. Components of ROI – IT Development Cost Savings
• Quicker to deliver data to users with
fewer developers
• Savings vary by project type
• Projected savings based on results
reported by customers
• Calculator uses conservative estimates
• Can be adjusted – all organizations are
different
• For example, savings on ‘data services’
reported as up to 90%
6

7. Example IT Development Cost Savings (1)
7
Value Driver Metric Goal Actual
Time to Develop Time to develop data service in days 50% 90%
Time to Deploy Time to Deploy data service in days 50% 90%
TTM
Overall time it takes to make data
service available for use
60% 90%
Time to Engage
Time it takes for business to engage
with IT
75% 75%
Performance Performance of data services 50% 60%
Impact Analysis
How fast can we perform impact
analysis
50% 90%
Enterprise Architectural
Alignment
Ease at which data from disparate
sources can be integrated
Security, data
classification
High

8. Example IT Development Cost Savings (2)
8
0
10
20
30
40
50
60
$-
$1,000,000.00
$2,000,000.00
$3,000,000.00
$4,000,000.00
$5,000,000.00
$6,000,000.00
Bldg web services prior to
Denodo
Initial Denodo POC Current Denodo Rate
Annual Cost # full time staff
FTE: 49  6
Annual Costs: $4.8M  $600K

9. Components of ROI – IT Operational Cost Savings
• Less data replication, less storage
• Fewer servers needed for databases
(staging, data marts, etc.)
• Fewer admin staff needed for Data
Virtualization vs. traditional
technologies
• 1/3 of staff for Data Virtualization
• Software license cost savings
• Application licenses
• ETL licenses, database licenses
9

10. Example IT Operations Cost Savings
• U.S. Government agency saved $600,000
annually in application license costs
• Many employees needed application user
licenses just to run reports or get data from
applications
• Using Data Virtualization removed need for
these licenses
• Users access data or ran reports via Data
Virtualization Platform
• U.S. Healthcare company saved $150,000
annually on SaaS application licenses
• User retrieved data and ran reports via Data
Virtualization Platform
• Cost savings for data marts can be up to
$150,000 per year per data mart
10

11. Headcount Cost Savings are ‘Soft Savings’
• (Most) companies do not simply fire staff
• Reassigned to more productive work
• e.g. Government department had 4-5 data engineers working full time fixing broken file
transfers used for sharing data between agencies – moved to other projects
• Some organizations don’t allow headcount savings in ROI
• Convert cost savings to incremental revenue from more productive work e.g.
• Revenue contribution per hour for Engineer = $1,016
• Revenue contribution per hour for Comm Sales = $3,904
• Annual hourly ‘savings’ for Engineer = 2,500 x $1,016 = $2,540,888
• Annual hourly ‘savings’ for Sales = 5,000 x $3,904 = $19,519,231
• Total incremental revenue from productive work = $22,060,119
11

12. Business Value – Improved Productivity
• What value will the business get from
having data – more data, better data –
delivered to business users more
quickly?
• How many users? (Typically a ramp up of
use as more users are onboarded)
• How will it affect their productivity?
• How will this affect the overall business?
• Business value is often most difficult to
quantify
• But…if you can’t specify a business value,
why are you doing the project?
12

13. Example Improved Productivity
• Jazztel uses Data Virtualization to deliver customer data from 37 operational and
analytical systems to a call center agent desktop
• Agent has all customer data available when talking to customer
• Goal to solve customer problem or answer questions in a single call without transfers or call-
back
• Agents spend less time finding customer data as all available through single
application
• No ‘swivel chair’ integration using multiple different apps
• Time per customer – Average Handle Time (AHT) – reduced by 10%
• With 3,000 call center agents – represented a saving of 300 FTE = €10M per year
Note: First Call Resolution Rate (FCR) increased to over 90% and reduced ‘back office’ tasks by 50%.
Customer satisfaction increase to over 95%.
13

14. Business Value – Additional Revenues
• What new or incremental revenue are
enabled by the use of Data Virtualization?
• What new products or services can be
enabled by Data Virtualization?
• How much quicker can you bring these to
market?
• i.e. generate revenues quicker
• Note: This is a one-time benefit and is not
recurring
14

15. Example Additional Revenues (1)
• Major retailer in Mexico
• Time delay in synch’ing eCommerce site sales for in-store pickup with store level
inventory systems
• Result was items out of stock when customer went to pick up purchase
• Poor customer satisfaction, lost business and costly refund processing
• Using Data Virtualization to provide real-time access to eCommerce data and
inventory data removed time delay
• Purchased items for in-store pick up were pulled from inventory and reserved for customer
• Lost revenue ‘savings’ of $MM
15

16. Example Additional Revenues (2)
• Leading pharmaceutical company
• Using Data Virtualization to integrate real-time manufacturing data with
historical yield data for real-time yield optimization analytics
• Result was 1-3% improvement in batch yield in manufacturing process
• Each percentage improvement in yield resulted in $10M of incremental
revenues to company
16

17. Denodo Investment
• Cost of annual Data Virtualization
license subscription
• Cost of implementation
• Internal staff
• External contractors
• Cost of Platform training
• Cost of ongoing admin staff to
manage Denodo Platform
17

18. Denodo ROI Calculator
18

19. Denodo ROI Calculator (Cont’d)
19

20. Denodo ROI Calculator (Cont’d)
20

21. Denodo ROI Calculator
• Excel spreadsheet – editable by user
• Three input sheet + ‘variables’ sheet
• Inputs cover three components of ROI
• IT savings, business value, Denodo investment
• Variables sheet controls ROI calculations
• e.g. % savings for IT projects
• Default values based on customer attainments, but can be changed by users
21

22. Denodo ROI Calculator
Quick Tour

23. 1. ROI is a key part of building a business case for any
project or initiative.
2. Data Virtualization value is delivered in a number
of ways – IT cost savings and business value.
3. Denodo has good examples of savings and value
achieved by existing customers – IT cost savings
and real business benefits.
4. Denodo’s ROI Calculator can guide you through the
process of determining cost savings and business
value – we will be happy to help you with this…
Key Takeaways

25. 25
Next Steps
Access Denodo Platform in the Cloud!
Take a Test Drive today!
www.denodo.com/TestDrive
G E T S TA R T E D TO DAY

26. Thank you!
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