Transactional Content Management
– The Return on Investment Home Run
As a purveyor of Enterprise Content Management solutions (Imaging, Workflow, Document Management technologies), Imagine eDoc Solutions is continually asked by organizations to provide ‘preliminary pricing’ for a
solution. Similar to the challenge a home builder would face when asked “how much does it cost to build a house”, Imagine finds it hard to answer accurately without further detail about what sort of solution is envisioned. As we explore the business parameters, challenges and motivation driving the research, we are struck to discover many organizations are simply trying to build a Return on Investment (ROI) model to justify an Enterprise Content Management solution.
We watch as companies try to create spreadsheets showing the costs of poor document management, inconsistent version control, lengthy search/retrieval/re-filing times etc. We watch organizations spend more time and more money on running all over the company trying to create an ROI than it takes to buy and implement the system. This article is intended to save companies time, money and frustration when creating ROI models for ECM solutions.
The first thing to consider is the facts that some of the costs associated with poor document management practices are measurable and some are not. For example, the time it takes to retrieve a document can be measured, matched to a wage and the specific cost can be calculated. However, the cost of making a decision without all the information (due to lost documents) is difficult to measure and quantify. These
tangible and
intangible costs collectively must be included in the ROI…but we know that an incredible amount of time can be wasted trying to quantify items that simply can’t reasonably be calculated. Focus your numbers on the measurable, and simply document the intangible factors.
The second fact to consider is that when we look at where Document Management technologies can be applied, not all business areas are created equal. Managing invoices involves different technology than managing HR files. Managing Expense Reports is different than managing the submission of a form from your website. Forrester Research assisted the ECM industry greatly when they put language to these differences, and segregated the ECM technologies into three categories: Transactional Content Management, Business Content Management and Persuasive Content Management.
1. Transactional Content Management – Back office centric. The goal is process efficiencies and compliance at lower cost. Business process automation.
Technologies - Imaging, Workflow, eForms, COLD, Systems Integration
2. Business Content Management – More front office centric, collaboration with efficiency and compliance. Group projects and interaction with files.
Technologies - Collaboration, Version Control, Portals, Records Management
3. Persuasive Content Management – Front office centric, focus on growth and new revenue opportunities. Converting data objects into work objects.
Technologies - Web Content Management, Data Asset Mgmt, Analytics, Personalization, Portals.
As the Document Management industry evolves, it is no longer adequate to research
“Enterprise Content Management” when trying to create an ROI and pick the best solution for your organization. It is now critical to determine what type of documents and work processes need to be managed within the organization and then use those needs to identify the solutions capable of addressing them.
To save those who are tasked with creating ROI documents for an ECM solution, Imagine’s advice is simple…focus on Transactional Content Management. Look into your AP, AR, Expense Report, Contract Approval, Month End Reporting, New Hire/Terminate, AFE/PO Approval, Audit and Acquisition/Divestiture processes. These are structured processes, requiring adherence to pre-defined compliant procedures and they are measurable. Within these processes, you’ll find business critical documents, quantifiable time and cost metrics and (in most cases) defined business processes requiring adherence to particular laws, rules or procedures.
Transactional Content Management applications will provide the ROI justification to invest in an ECM solution. Time savings, process enforcement, reporting, automation of routine tasks can all be quantified to clearly articulate the value of the investment. This will position the organization to expand the solution to manage other documents within the company (many of which may only have “intangible” costs associated with their management / mis-management….such as sales proposals, project files and contract management).
The key is to focus on defined business processes, document volume (don’t implement a solution to manage only a few documents) and the opportunity for systems integration. When these conditions exist, Transactional Content Management technologies will provide the ROI model (and the necessary tools) to implement a successful ECM solution.
Imagine eDoc Solutions is a provider of Imaging, Document Management and Workflow solutions to simplify the way documents move throughout an organization. Imagine has created packaged Enterprise Content Management solutions for:
Article written by:
Sean Halliday
Sean Halliday is the President of Imagine eDoc Solutions Inc., a Calgary based Document Management, Imaging and Workflow solution provider.
To learn more about Imagine’s solutions, please contact us at 403-245-6625 or visit
www.imagineedoc.com for more information.
