Forrester Research recently published a report that describes six best practices for a successful DAM implementation. Forrester contends that many enterprises fail at their DAM implementation because they don’t commit adequate funding to their DAM system. Therefore, Forrester recommends that the proponents of a new DAM system build a comprehensive and well-reasoned business case for the new solution so that enterprise leaders will be persuaded to allocate sufficient funding for the project.
A well-prepared business case for a new DAM solution will contain several components:
- It will contain a straightforward description of the problems that the new DAM solution is designed to solve.
- It will explain the “whys” behind the problems. It will describe current practices (the “as-is state”), the best available practices (the “ideal state”), and the gap between the two states.
- It will provide a detailed description of the proposed solution, including resource requirements, alternatives considered, the project timeline, and the risks associated with the recommended solution.
- It will describe the goals for the new DAM solution and the metrics that will be used to evaluate success.
- It will include a financial analysis section that contains a thorough evaluation of the financial benefits and costs of the new DAM solution.
At Aprimo, we’ve found that the greatest challenge associated with preparing a DAM business case is often the development of the financial analysis. The ultimate objective of the financial analysis is to demonstrate that the acquisition of the new DAM solution will be a sound financial investment for the enterprise. The most common way to evaluate the financial impact of a proposed DAM solution is to estimate the ROI that the new solution will produce.
Unfortunately, it’s difficult to accurately estimate the ROI for a new DAM solution for three reasons:
- It requires an accurate estimate of the financial value of future benefits, most of which are inherently uncertain.
- Today, a DAM solution is typically one component of a larger ecosystem of interdependent marketing technologies. Collectively, these technologies can deliver significant financial benefits to an enterprise, but there is usually no accurate way to apportion the benefits among the technology systems that produce those benefits.
- Many of the benefits produced by a DAM solution result from improving the efficiency of marketing processes. To quantify these benefits, it’s necessary to know both the costs of the current processes and the costs of the new processes that the DAM solution will enable. It is possible to model and assign costs to both existing and future processes, but it requires a significant investment of time and effort to make the costing reasonably accurate.
We’ve recently published a DAM Business Case Guide that describes an approach to financial analysis that avoids most of these difficulties. You can download a copy of our new Guide here.