Top 5 Returns on Investment (ROI) of Document Management
Most executives agree that a document management system would be nice to have. But a solution custom-designed for their company can be expensive to create and implement.
A content management system requires hardware to get started, ongoing subscriptions and maintenance, and valuable time retraining employees. Is it really worth the setup costs? Where is the ROI of document management?
In this post, we’ll explore the top 5 ways content management produces a return on the investment, with the goal of helping you decide if content management is right for your company.
5 Ways Document Management Shows ROI
Some of the benefits to document management are obvious – no more filing cabinets taking up space or lost invoices. However, other benefits are systematic and less pronounced.
A good content management system makes the company more secure, efficient, and cooperative. Tangible plus systematic benefits add up. In many cases, a content management system pays for itself. According to Geoff Choo at ZDNet, for companies that deal with information on a daily basis, efficient management is essential infrastructure. It’s the cost of doing business.
There are many drivers of ROI, but here are the top five:
1. Quickly Find Documents
This is the obvious first return on investment of document management solutions. The whole purpose is to make finding and retrieving information easier.
A 2012 white paper from IDC found that the average information worker spends five hours per week searching for documents. That’s 12.5% of every work day dedicated to finding information. Reducing that number means workers spend more time on task, increasing productivity.
2. Paper Costs and Filing Space
This is another tangible benefit of enterprise content management. Take a look around your office and you’ll probably notice a significant amount of space dedicated to paper, whether that’s book shelves, filing cabinets, inboxes, or just stacks of files.
Research from 2014 shows the average office worker uses over 10,000 sheets of paper per year. Reducing paper consumption can mitigate a major expense for most companies: paper and ink.
3. Faster Sales Process
Forbes listed digital documents and online approvals as one of the best ways to improve cash flow. They speed the sales process for companies, allowing sales teams to spend more time on finding new clients and less time on onboarding.
The initial contact between your company and new clients also says a lot about how you do business. A professional, digital onboarding process for new clients projects competence and trustworthiness. The speed and level of service provided by a digital system lead to greater opportunities for future sales.
4. Coordination Between Departments
Another big benefit of a document management solution is standardization of documents and processes. This benefit is somewhat intangible, but it facilitates better collaboration between teams and streamlines the whole product chain.
Howard Brown at AccountingWeb writes that this is especially true for companies that offer high volumes of products or services and need deliverables to be of consistent quality, even when prepared by various employees.
5. Safety and Security
Often executives worry about security when considering the switch to enterprise content management. However, most executives don’t realize that managed documents are usually more secure than keeping paper files or local copies of documents. Backing up your documents in the case of a fire, flood, or other natural disasters, ensures your essential business documents are safe.
Implementing Your Own Solution
Each company’s implementation of document management will be different, so hiring professionals to help can be critical. Kelley Connect is a leading office technology company in the Pacific Northwest, offering custom document management solutions to industry-leading companies. Contact Kelley Connect today, and we’ll help you calculate the ROI of document management solutions for your company.