Enterprise DocumentManagementSymposium

October 5th – 6th 2010Niagara 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 ofSitrof Technologies, Inc.

We are living in exponential times…

How big is the digital universe?

ExabyteFrom 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 1000.

1 EB = 1,000,000,000,000,000,000 bytes

1 billion gigabytes 1 million terabytes

ExabyteFrom 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 1000.

1 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 10-15 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 Example Time Cost

What is the average hourly salary? $15How many people handle documents? 7How many times does each person retrieve a document daily? 10

How long does it take to retrieve a paper document? (minutes) 3 210 $52.50

How many new documents are generated a day? 20

How long does it take to file a paper document? (minutes) 3 60 $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 DMSExample Time Cost

How much do you spend for off-site storage monthly? $100

How many filing cabinets (12 sqft/cabinet - $15/year/sqft) 10 120 $150

How much do you spend on filing supplies per month? $50 $50

• Monthly costs for maintenance– $200

Cost Per Year

Implementation cost for a 20 User DMS

CostSoftware (20 Named Users) $5,000Server with 200 GB of storage $5,000Scanners (3 mid range scanners at $500 each) $1,500Training and Setup $8,000

• Total DMS System Cost in 1st Year– $19,500

Daily Labor Costs – with DMS Example Time Cost

What is the average hourly salary? $15How many people handle documents? 7How 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

Return (ROI)

Deeper Look

Questions

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Bryan ReynoldsManaging Partner700 Alexander Park, Suite 302Princeton, NJ 08540609-897-9180 x101