Organizing for innovation

Navigating the Deployment of Microsoft Copilot Licenses

Update Feb 2024

As of mid-January 2024, there is no longer a minimum limit on Copilot licenses. See below. That means you can now start with a small pilot. However, thinking through what and how you will pilot will still be relevant, as well as thinking through if and how you will introduce MS Copilot to the entire organization.

  • Copilot for Microsoft 365 is available to everyone on eligible plans:
    • Microsoft 365 E3, E5, A3, and A5
    • Microsoft 365 Business Standard and Premium
    • Office 365 E3 and E5
  • The 300-seat minimum has been removed.
  • The price is fixed at $30 per user per month, regardless of your industry, size, and Enterprise Agreement discount level. The same applies to academic institutions.

Introduction

If your firm subscribes to the Microsoft 365 Monthly Enterprise Channel, you are eligible for M365 Copilot features starting December 2023. However, Microsoft Copilot comes at a cost – $30 per user per month, with a minimum purchase of 300 licenses, totaling a significant $100k investment.

Is it worth it? And how would you go about using these 300 licenses to test Microsoft Copilots' value?

The challenge is that Microsoft Copilot (and other Generative AI tools for that matter) are workflow improvement tools. That means you must test Microsoft Copilot within the work environment.

Below we explore two paths that organizations may consider taking to test the value of Microsoft Copilot for their organization.

To give you a heads up, running a pilot will be significantly more expensive than the $100k you may currently be considering spending on the license.

Exploring the Paths

What is the best way to test the Value of Microsoft Copilot? Assuming that your goal is to get to widespread user adoption while making sure the application delivers a significant return on the investment, below are two paths that you could explore.

Path 1: The Large-scale Deployment

In the scenario of the large-scale deployment, you randomly or purposefully select 300 employees to use Copilot in 2024. The licenses are distributed without much pre-work, and you observe how users engage with the tool.

Pros:

  • Simple and quick deployment.

Cons:

  • No guarantee that all 300 users will utilize the license effectively.
  • Potential misuse of the tool and sharing inaccurate data.
  • You will give users about 25 hours to get proficient, whereas it is estimated to take 10,000 hours to master a new skill.
  • No guarantee of scalable results.

Cost Breakdown:

  1. License cost - $100k: The minimum purchase requirement for 300 licenses.
  2. Running the pilot - $25k: Estimated expenses for IT setup, surveys, and data collection.
  3. Participant costs - $375k: Employee costs, assuming an average of 25 hours per user at $50/hour.

Total Cost: Approximately $500k.

Path 2: The Controlled Pilot

The controlled pilot approach involves a controlled experiment with a smaller group. Twenty-five licenses are allocated to identify the best opportunities, and five project teams, selected through a process like a hackathon, receive access to Microsoft Copilot for 12 weeks to prove their use case.

Pros:

  • More control over the experiment.
  • Smaller initial user group allows for better observation and control.
  • Near guarantee of finding a use case.

Cons:

  • Slower process.
  • Could cause significant capacity challenges for your innovation function.
  • Reach and breadth could be too small to have the desired impact.

Cost and Time Breakdown:

  1. License cost - $100k: The minimum purchase requirement for 300 licenses.
  2. Selection process - $25k: Estimated expenses for organizing and supporting the event.
  3. Pilot with 5 teams - $300k: Employee cost of 12 weeks of testing with selected teams.
  4. Additional support - $25k: Estimated support costs from IT and/or the innovation function.

Total Cost: Approximately $450k.

Considerations

Real Costs

The actual cost of testing Microsoft Copilot lies not just in licensing but in the hours employees spend testing the solution, which makes it an even more significant investment.

Strategic Thinking

Simply deploying Microsoft Copilot without a clear strategy exposes organizations to risks, and results are likely to be modest. Consideration of desired outcomes and a well-thought-out plan is crucial.

Innovation Process

Many organizations will find their current innovation processes inadequate for large-scale experiments. Most innovation groups test about five solutions in a year, which would mean that this Microsoft Copilot test would take up all the capacity.

We present a compelling alternative. At Organizing4Innovation, we specialize in running innovation programs that are both fast and scalable. Our approach provides a middle ground, enabling you to invite over 100 teams to propose ideas, swiftly narrowing down options to 50 experiments in just two weeks. Within one month, you can run these experiments, identifying the best 20-30 use cases for your 300+ licenses in less time and at lower overall costs.

We present a compelling alternative. At Organizing4Innovation, we specialize in running innovation programs that are both fast and scalable. Our approach provides a middle ground, enabling you to invite over 100 teams to propose ideas, swiftly narrowing down options to 50 experiments in just two weeks. Within one month, you can run these experiments, identifying the best 20-30 use cases for your 300+ licenses in less time and at lower overall costs.

Conclusion

Licensing Copilot is a substantial investment, and the key lies in strategically testing its value. Organizations need to weigh the costs, set clear expectations, and consider alternative innovation processes for scalable experiments.

Unlock the potential of Microsoft Copilot licenses with strategic deployment. Make informed decisions, weigh costs, and align your strategy with organizational goals for a meaningful return on investment. Choose Organizing4Innovation for a superior innovation program that combines speed, scalability, and expertise. Contact us to learn more about how our solution can unlock the Generative AI potential with Microsoft Copilot, transform your organization's approach to innovation, and accelerate growth.

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Introduction: If your firm subscribes to the Microsoft 365 Monthly Enterprise Channel, you're eligible for M365 Copilot features starting December 2023. However, this comes at a cost – $30 per user per month, with a minimum purchase of 300 licenses, totaling a significant $100k investment.

Is it worth it? And how would you go about using these 300 licenses to test Copilots value?

The challenge here is that Copilot (and other Generative AI tools for that matter) are workflow improvement tools. That means you must test Microsoft Copilot in the work environment.

Below we explore two paths that organizations may consider taking to test the value of Copilot for their organization.

To give you a heads up, running a pilot will be significantly more expensive than the $100k you may currently be considering spending on the license.

Exploring the Paths:

Path 1: The Large-scale Deployment In this scenario, you randomly or purposefully select 300 employees to use Copilot in 2024. The licenses are distributed without much pre-work, and you observe how users engage with the tool.

Pros:

  • Simple and quick deployment.

Cons:

  • No guarantee that all 300 users will utilize the license effectively.
  • Potential misuse of the tool and sharing inaccurate data.
  • You will give users about 25 hours to get proficient, whereas it is estimated to take 10,000 hours to master a new skill.
  • No guarantee of scalable results.

Cost Breakdown:

  1. License cost - $100k: The minimum purchase requirement for 300 licenses.
  2. Running the pilot - $25k: Estimated expenses for IT setup, surveys, and data collection.
  3. Participant costs - $375k: Assuming an average of 25 hours per user at $50/hour.

Total Cost: Approximately $500k.

Path 2: The Controlled Pilot This approach involves a more controlled experiment with a smaller group. Twenty-five licenses are allocated to identify the best opportunities, and five project teams, selected through a process like a hackathon, receive access to Copilot for 12 weeks to prove their use case.

Pros:

  • More control over the experiment.
  • Smaller initial user group allows for better observation and control.

Cons:

  • Slower process.
  • Reach and breadth could be too small to have the desired impact.

Cost and Time Breakdown:

  1. License cost - $100k: The minimum purchase requirement for 300 licenses.
  2. Selection process - $50k: Estimated expenses for organizing and supporting the event.
  3. Pilot with 5 teams - $300k: Cost of 12 weeks of testing with selected teams.
  4. Additional support - $50k: Estimated support costs from IT and the innovation team.

Total Cost: Approximately $500k.

Considerations:

Real Costs: The actual cost of testing Copilot lies not just in licensing but in the hours employees spend testing the solution, which makes it an even more significant investment.

Strategic Thinking: Simply deploying Copilot without a clear strategy exposes organizations to risks, and results are likely to be modest. Consideration of desired outcomes and a well-thought-out plan is crucial.

Innovation Process: Many organizations will find their current innovation processes inadequate for large-scale experiments. Most innovation groups test about five solutions in a year, which would mean that this Copilot test would take up all the capacity. We present a compelling alternative. At Organizing4Innovation, we specialize in running innovation programs that are both fast and scalable. Our approach provides a middle ground, enabling you to invite over 100 teams to propose ideas, swiftly narrowing down options to 50 experiments in just two weeks. Within one month, you  can run these experiments, identifying the best 20-30 use cases for your 300+ licenses.

Conclusion: Licensing Copilot is a substantial investment, and the key lies in strategically testing its value. Organizations need to weigh the costs, set clear expectations, and consider alternative innovation processes for scalable experiments.

Unlock the potential of Microsoft Copilot licenses with strategic deployment. Make informed decisions, weigh costs, and align your strategy with organizational goals for a meaningful return on investment. Choose Organizing4Innovation for a superior innovation program that combines speed, scalability, and expertise. Contact us to learn more about how our solution can unlock the Generative AI potential with Microsoft Copilot, transform your organization's approach to innovation, and accelerate growth.