Abbott Laboratories is an American pharmaceuticals and health care products company. Abbott has four core businesses – diagnostics, devices, nutrition, and pharmaceuticals – all of which focus on innovation to improve the health needs of people in more than 150 countries.
Abbott was experiencing an estimated 40% annual growth in its structured data footprint. Storage disk was purchased at cheaper prices each year, but labor and data center costs are increasing, which represent larger components of the cost to manage data. At 40% growth in volume, the projected levels of storage spend over the coming years were unsustainable. Additionally, with such growth, the company is challenged to maintain its target standard of records management and eDiscovery, which serves to mitigate legal and compliance risk.
Maven Wave identified an opportunity to implement an Information Lifecycle Management solution across the enterprise, which includes newly integrated tools and processes, along with a change in mindset regarding data. The anticipated benefits were sizable in cost savings and mitigation of potential legal and compliance risk.
Before proceeding, Abbott leadership wished to review a comprehensive business case for this pioneering endeavor. Maven Wave brought the methods, tools, and experience to develop a business case in collaboration with the IT, Legal, Records, and Finance leadership at Abbott.
Maven Wave first identified the primary benefit drivers and established a projection for data storage spend for the next 5 years. We then collaborated with enterprise architects to develop a target state solution, along with a time and cost estimate for implementation along a phased delivery plan. This estimate included internal and external labor, hardware, and software cost categories. We next formulated the 5-year data storage cost projection for Abbott under the new, targeted solution.
Maven Wave finalized the business case to show Abbott’s cost savings benefit, net of investments required to implement the solution. Summary ROI calculations were delivered, including internal rate of return (IRR) and discounted payback period (DPP) figures. The outputs were stated as a range to include appropriate sensitivity variances amongst stated assumptions.
The business case identified a net savings benefit of over $60M in 5 years and over $400M in 10 years. IRR estimates ranged between 25-50% over 5 years and above 400% over 10 years.