In business, there are generally 3 levels of ROI (return on investment). Level 1 focuses on cost savings, Level 2 costs and benefits, with Level 3 being the most powerful and focusing on the business case.
As more and more organizations today are looking to “go paperless”, converting their paper documents and records into something easier to manage, there still needs to be a ROI to justify these projects.
Regardless though of the type you are looking for support on, the following video should help as it outlines a simple way to come up with the ROI of a document management / enterprise content management (ECM) implementation. Yes, the title is misleading as you DO have to gather this data based on your current environment and processes, but once you have all this information, the rest is very straightforward.
One tool we have looks at 4 common areas where both hard and soft costs are taken into account. These are the “Pre-Deployment Costs” and the video provides more depth around these items as well as the “Investment Costs” and “Post-Deployment Costs” to come up with our “ROI Calculations”.
1. Labor Costs
How many people are involved? What is their salary? How much time do they spend retrieving, sorting, recreating and faxing information?
2. Storage Costs
Where is information stored? How much do we pay for this (per sq/ft)? Is it onsite or offsite? Do staff ever need to access it? If so, what do we pay them?
3. Copying Costs
How many pages of paper are generated or printed each day? What is that cost (including toner/ink)?
4. Distribution Costs
How many faxes do we send/receive a day? What is the cost to fax a page? How much do we spend on overnight delivery and postage?
Best viewed in 720p resolution and fullscreen mode.
We are available to share more information about the tool we used, and we look forward to any questions you have.
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