Enterprise Document Management Symposium October 5 th – 6 th 2010 Niagara Falls, Canada

Finding ROI in Document Management Learn about common and not so common places to look for savings when installing ECM. By: Bryan Reynolds, Managing Partner and Co-Founder of Sitrof Technologies, Inc.

We are living in exponential times…

How big is the digital universe? Exabyte From Wikipedia, the free encyclopedia An exabyte (derived from the SI prefix exa-) is a unit of information or computer storage equal to one quintillion bytes (short scale). The unit symbol for the exabyte is EB. When used with byte multiples, the unit indicates a power of EB = 1,000,000,000,000,000,000 bytes 1 billion gigabytes 1 million terabytes Exabyte From Wikipedia, the free encyclopedia An exabyte (derived from the SI prefix exa-) is a unit of information or computer storage equal to one quintillion bytes (short scale). The unit symbol for the exabyte is EB. When used with byte multiples, the unit indicates a power of EB = 1,000,000,000,000,000,000 bytes 1 billion gigabytes 1 million terabytes

Electronic document management system (EDMS) Provide a method for storing all relevant documents about a your customer or vendor Allows office staff to gain a total view of the customer or vendor Allows integration into point software solutions that each department uses Enables significant gains in productivity and efficiency

Current Business Landscape Technology has helped many businesses over the last years become more efficient. Predicted as early as 1975 that the paperless office had arrived Paperwork necessary to run a business has increased a great deal since 1975 ROI for any project is important

What is ROI? Return on Investment The amount of time it takes to get the value of the dollars spent on a project or item back Example: – if truck is purchased for a shipping company and it cost $50,000 and each month a profit of $10,000 can be tied to the truck, then your ROI is 5 months ($50,000/$10,000)

Return on Investment Model

Daily Labor Costs – No DMS ExampleTimeCost What is the average hourly salary?$15 How many people handle documents?7 How many times does each person retrieve a document daily? 10 How long does it take to retrieve a paper document? (minutes) 3210$52.50 How many new documents are generated a day? 20 How long does it take to file a paper document? (minutes) 360$15 How many paper copies are generated per day? 60.05$3

Daily, Monthly and Annual Cost Daily total costs for a paper based system – $70.50 Monthly total costs for a paper based system (20 working days/month) – $1,410

Additional Costs – No DMS ExampleTimeCost How much do you spend for off-site storage monthly? $100 How many filing cabinets (12 sqft/cabinet - $15/year/sqft) 10120$150 How much do you spend on filing supplies per month? $50 Monthly costs for maintenance – $200

Cost Per Year $19,320 Annual cost to maintain paper based management system

Implementation cost for a 20 User DMS Cost Software (20 Named Users)$5,000 Server with 200 GB of storage$5,000 Scanners (3 mid range scanners at $500 each)$1,500 Training and Setup$8,000 Total DMS System Cost in 1 st Year – $19,500

Daily Labor Costs – with DMS ExampleTimeCost What is the average hourly salary?$15 How many people handle documents?7 How many times does each person retrieve a document daily? 10 How long does it take to retrieve a paper document? (minutes).5(3)35$8.75 How many new documents are generated a day? 10(20) How long does it take to file a paper document? (minutes).5(3)5$1.25 How many paper copies are generated per day? 0(60).05$0

Daily, Monthly and Annual Cost Daily total costs for a DMS system – $10.00 Monthly total costs for a DMS system (20 working days/month) – $200 Annual software maintenance contract (20% of software purchase) – $720

Cost Per Year $3,120 Annual cost to maintain electronic based document management system

Return (ROI) $1,350 Monthly Savings 14.4 Month To Payoff

Deeper Look

Questions

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