The Business Case For EHS Software

Published 19 March 2018 by Trevor Bronson
EHS Software Environment, Health & Safety Market Overview

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Executive Summary

The 2017 Verdantix global survey of 382 EHS decision-makers found that 87% consider information technology is either ‘essential’ or ‘valuable’ for EHS management. But only 36% of those surveyed said that they used commercial EHS software. One of the core reasons for this disparity is the difficulty heads of EHS have in securing additional funding of $200,000 to $800,000 for an EHS software project. Recognizing this management challenge, this report helps EHS decision-makers to create an empirical, evidence-based business case to improve the chances of acquiring sufficient funding for the purchase of commercial EHS software. Topics covered include: the most frequent reasons for EHS software purchasing; the challenges that EHS teams face in making a convincing project pitch; the best ways to quantify the value of EHS performance; the software costs to expect during the purchase; and the methodology for tying the numbers together to produce a five-year financial model for an EHS software implementation project.

Table of contents

The Business Case For EHS Software 
EHS Leaders Should Have A Technology Strategy Which Informs Plans For Software Investments
Many EHS Leaders Struggle To Pitch The Urgency And Importance Of Their Software Project

Four Arguments Bolster The Case For EHS Software Investment 
1. Identifying Compliance Risks Ensures EHS Software Gets Discussed At The Top Table
2. Quantifying Financial Costs And Benefits Keeps The CFO Engaged
3. Demonstrating Alignment With Corporate Strategy Satisfies The CEO’s Requirements
4. Including Worker Wellbeing Arguments Speaks To HR Executives And Union Representatives

How To Structure The Business Case For EHS Software 
Map Out A Phased Implementation Plan Which Reflects Available Resources And Business Priorities
Assess Current Time Commitments And Potential Employee Time Savings
Gather Hard Data On Current IT Costs Across Software, Hardware And Consulting
Build A Ledger Of The Rolling Average Of EHS-Related Costs To Estimate Future Savings
Costs Reflect Software Deployment Scale And Associated Implementation Fees

Apply The Business Case Model To Generate Quantified Financial Benefits 
Business Case Model Applied To A $6 Billion Revenue Chemicals Manufacturer
Financial Metrics Clarify The Solid Investment Case For EHS Software

Table of figures

Figure 1. Four Arguments Bolster The Case For EHS Software Investment 
Figure 2. Five-Year Implementation Plan For EHS Software Modules, Sites And Users
Figure 3. Five Categories Of Potential Cost Reduction
Figure 4. Investment Costs For EHS Software Projects
Figure 5. Financial Summary Of EHS Software Business Case—$6 Billion Chemicals Manufacturer

Organisations mentioned

Airsweb, American Society Of Safety Engineers, Arcadis, Arkema, Bartlett Grain Company, BASF, Bimbo Bakeries, CH2M, Cority, Dakota Software, eCompliance, Electric Power Research Institute (EPRI), ENGIE, Enhesa, EPA, Frostbyte Consulting, Fuyao Glass America, Go-ARC, Gaffin Industrial Services, Gensuite, Harley Davidson, IBM, International Organization for Standardization (ISO), IsoMetrix, Keller Group, Kier Group, Maersk, Microsoft, OHSAS, Oracle, OSHA, ProcessMAP, Pronghorn Controls, Red-On-Line, Rolls-Royce, SafetyCulture, Salesforce, SAP, Severn Trent Water, Sphera, SustainIt, Tampa Electric Company, Tata Consultancy Services (TCS), ThunderMaps, Transnet, Unilever, UPS, US Bureau of Labor Statistics, Valero, VelocityEHS, Verisk 3E, Walmart

About the author

Trevor Bronson

Industry Analyst

Trevor is an Industry Analyst in the EHS Technologies practice group covering all things EHS software including vendor strengths and weaknesses, growth strategies, market characteristics, and general best practice for use. His current agenda is focused on helping EHS technology vendors find success, and helping corporate EHS teams enhance EHS management systems via best practice and a optimized use of available EHS solutions. Trevor has been with Verdantix for more than three years, and previously worked on EHS teams at Tesla Motors and PPL Corporation. He holds a degree in Environmental Health, Safety and Sustainability from the Rochester Institute of Technology.

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