Posted by: user
Category: History
ROI and payoffs from the digitization of business

Introduction to how digitization saves money, eliminates risk and optimizes efficiency at various levels.

Every growing business needs to manage a growing workload and reduce tedious, manual tasks, but a smart business manager seeks a solution that can capture significant ROI also. To help make the right choice for a smart solution, let’s walk through a typical day and calculate your savings for five major business areas, to see if going paperless saves you money, time and effort for your business.

Irrespective of the industry and size of a company, there are many processes that are crucial to the everyday working of an organization, This holds true whether your business is delivering handmade products, consulting B2B firms, or developing apps. While everyone agrees that paper-based processes are a serious drag on both efficiency and profitability, the per-unit price of paper transactions is so small that it goes unnoticed until it is consolidated and cancelled. A worldwide survey conducted by IDC showed a 21% loss of organizational productivity accounted for by manual versus digital document management.

The COVID-19 pandemic forced us all to find new ways of working, interacting, and living. Digital technology has become a key component of our collective effort to tackle the virus and support our new ways of living and working reality during this exceptional time. While many well-prepared offices had a smooth shift, many workplaces struggled to meet task turnaround times with an adverse effect on profits. The pandemic has toppled the notion of an office being a brick-and-mortar structure, approvals requiring a human signature, and accessing information stored in filing racks and storage rooms. As industries redesign organizational culture, there is an amazing opportunity to shed the old and use-tailor-made digital solutions.

The right document management system (DMS) for your business not only overcomes delays and errors but saves time and money significantly. Whether it is paper-heavy invoice processing, procurement, sales, marketing, finance or any other business unit in your organization digitization can elevate performance and productivity.

Investing in content management returns $8.55 in benefits per dollar spent. Source: Nucleus Research for small to medium businesses.

If we consider Improved customer experience(retention), Productivity and Cost Savings as the key value drivers for judging the value of solutions, there are five areas where document management starts to pay for itself quickly.

 

  1. Storage and Retrieval: The primary value of a Document Management System is to process, capture, store, manage and track documents within your organization. The DMS is a stable, predictable, measurable way to manage organizational information no matter its source or destination.

In a typical office, the accounting department processes 500 invoices per day and spends an average of two minutes storing each one in a paper-based system. In addition, the department needs to retrieve 20 older invoices for reference, at an average of five minutes each.

 

500 invoices x 2 minutes to store = 1000 minutes

20 invoices x 3 minutes to retrieve = 60 minutes

= 17.6 hours/day or an entire day’s work for 2 people. 

An effective DMS reduces the time you spend on storing or retrieving a document to a few seconds and if each department could manage to do 17.6 hours worth of work in a few seconds, it’s clear that there’s an opportunity for significant ROI.

  1. Response time to inquiries: DMS capture, archive, and process information automatically serving as a trigger for collaboration. By allowing the workflow solutions to connect documents, tasks, and people across offices and team members bringing decisions makers together and eliminating time for process turnaround.

The centralized DMS is a stable, predictable, measurable way to manage your critical business information, start, execute, and complete the process. So if a team member, client or vendor asks for a document you won’t have to locate and review the document in the storage room’s shelves and files. Instead, the inquiry can be answered in seconds as the retrieval time with a DMS is down to seconds…and that is a simple and effective ROI.

  1. Accessing multiple versions: Each document has a life span of its own, it has many versions, crosses many stages and is often handled by more than one person. It is also likely that in a large organization a single document has more than one possible future needs as well, but a paper-based system cannot cope with all this efficiency. With eDocuman you can keep documents securely archived by assembling and archiving them in a secure and searchable digital repository and identify key information to find information.Empowering your team with Information, as they access, share, comment, and approve it instantly makes a world of difference in work culture and efficiency.  Also, the team members can spend time making decisions based on multi-source information within minutes, if not mere seconds. This lets teams focus on innovation instead of procedural tasks.

Your Marketing team has identified 10 personas for 200 prospective clients and spends 20 minutes creating marketing content for each. Your sales team then accesses these documents and spends 20 minutes filing them at each of the 3 stages of their sales process.

10 personas x 20 minutes to create content = 200 minutes
200 clients X 20 minutes X 3 stages=12000
total= 12200 minutes. Or an average of 1 hour per prospective client.

The marketing and sales team could definitely use that extra hour to work with the client instead of processing multiple versions of similar documents. With a DMS, version control capabilities automatically save edited documents as a new version and provide a documented history to ensure that everyone is editing the latest version.

  1. Invoicing: A critical aspect of managing cashflows is invoice processing, the complete cycle of receiving a supplier invoice, approving it, establishing a remittance date, paying the invoice, and then recording it in the general ledger is a crucial daily task. With a customized automated solution, you can easily speed up the AP & AR process turnaround time.If your delivery person delivers 20 products to customers each day and spends 10 minutes receiving each paper receipt and 10 minutes submitting this to the accounting team. The accounting team spends 15 minutes on each receipt for review and confirmation of the purchase order.
    20 products X 10 minutes= 200 minutes

20 receipts X10 minutes= 200 minutes

20 receipts x15 minutes=300 minutes

total=700 minutes
In a paper-based process, it takes a long time to check the delivery tickets, search for the right contract or purchase order, create the invoice and finally put all the documents together in a file for storage. Document Management Systems tend to process multi-source multi-design invoices more accurately and efficiently as compared to an ERP. Designing both systems to work together brings you best-of-both-worlds efficiencies in processing approvals, information extraction, and transaction postings thereby avoiding data duplication and single-source information access.
Storage
Reclaim space from storage rooms, filing cabinets, printing nooks, and redeem the savings from the cost of printing and duplicating paper. Every operation needs communication, but not at the exuberant cost of paper. Digitization eliminates the need to order bales or plan recycling solutions for the discarded paper. Beyond the actual cost of paper — distributing, filing, and storing paper is an expensive overhead. We guide you in digitizing paper-based communications to reduce printing and other operational costs.

 

Learn more about what processes to digitize and how to turn your business into a paperless office.

Author: user

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