This is going to be something I will continually look at through my blog posts, so you could say this is post #1 in looking at the true savings ECM solutions can provide organisations.
In this first post, I want to look at what organisations consider to be their costs when:
- Filing a document
- Locating documents
- Waiting for documents due to others using them
- Locating misfiled documents
- Reproduction of lost documents if possible
- Paper Archive / storage
- Retention period management
It’s weird, as I have read many blogs recently that do actually place monetary values to these things. I find this great in illustrating a point, however each organisation is different and to get a real feel for what your organisation is spending here, you need to get a consultant in to review these issues.
So, quoting from an AIIM blog http://aiim.typepad.com/aiim_blog/2009/05/management-ecm-excuse-3-weve-got-to-pick-our-battles-.html we see that some typical values have been placed. So, $20 to file a document, $120 to find a misfiled document and $220 to reproduce a document. These are just some figures I have chosen to reference. Now some organisation will look at this and think “hey, that’s not too bad. An ECM solution investment is going to cost us mega bucks so our ROI is going to be over a large period of time….” Well you would be wrong….
First off, just how many times does your organisation have staff file a document in a day? How many times are documents searched for in a day by staff and just how long does that take? How much time is wasted waiting for a document from another staff member? How many times do you have staff looking for misfiled documents? How often do you actually reproduce documents? How much does it cost to store your physical paper? How much do you spend on managing retention periods and looking at compliance issues? Now put a price on these things per day and multiply by the number of working days in the year……hmmm you see these costs aren’t small.
But they aren’t the only costs. There are so many more. For example, just how much are you spending on physical paper? Filing cabinets themselves, stationary etc? There are also the costs that are even harder to measure, and which could be argued are far more important. These are costs or impacts on your actual business. The time it takes you to respond to the market, the time it takes you to deliver for your customers, the time it takes you to execute business processes, the time it takes you to deal with customer complaints or enquiries. All of these have costs associated with them, both in terms of monetary costs right now, and longer implication costs to your company in retaining customers and winning new ones.
All in all, when you start looking at ECM and looking at the costs, make sure you start to investigate in detail just what are your current operating costs. I think you may well be shocked….Of course there are companies out there, consultancies ready and willing to help you with these things, my own company offers such services. I would strongly advise getting all the information to hand before you start looking at ECM solutions, that way you know you can get a good feasibility study together and have an accurate ROI projection…..
Little plug here, if you need some help in looking at your day to day costs and benefits of ECM, why not mail the guys at One Degree… email@example.com