Many companies start their evaluation process with the predictable question what does it cost? While costs are always a relevant component in the purchase of any new technology, experienced buyers usually realize that the equation is much more complex.
First, youll find benefit in identifying your business costs unknown costs associated with inefficient processing of information and hidden costs associated with lost productivity, poor customer service and under utilization. Then you have the known costs of floor space and human resources associated with managing large files, which are often, enough to cost justify an investment in an EDM solution.
We believe its important to collect specific information and data in order to calculate ROI that reflects an individual business situation. Questions about the benefits of an EDM implementation attempt to identify and quantify the most prevalent problems as the basis for potential improvements with your new system. Whether your ROI is 35% or 950%, the real value of the ROI analysis undertaking is in the analysis. During the analysis, you can see where your costs and benefits occur, and then you are able to assess any dependencies or changes that can positively or negatively affect those costs and benefits.
Therefore, it is extremely difficult to grasp the entire potential business value with a purely quantitative ROI analysis. In most cases, the business value will go beyond the financial metrics of an ROI analysis, as intangible or strategic benefits like increased customer satisfaction, higher flexibility, improved work moral etc. are difficult to quantify but critical to a successful organization.
General ROI Calculators are of limited use to most companies because they take a narrow snapshot of your business with little or no context, and try to apply broad generalizations against complex environments without taking company-specific conditions in to consideration. These ROI calculators typically ask a few general questions, such as number of documents lost and redrawn, time spent looking for documents, and how often the wrong version of a document was used, and then apply a standard improvement against these metrics. Calculators often fall short because they dont ask things like what are your business rules, how do you interact with your customers, and why are todays performance metrics at the levels they are now? They dont tailor the output of their solution to the unique characteristics of each companys complex situation the way DataCore does when consulting with organizations about the potential ROI of an EDM solution.
Once the far-reaching benefits of EDM are understood, the next logical question is to determine which of the available offerings are the best fit for your company. With so many applications available today, the decision can be overwhelming. The features of an application should be matched to the identified goals of your company, and the flexibility and expandability of the system should be considered carefully. It is just as important to carefully select a consultant or systems integrator with the appropriate domain expertise, such as engineering for example.
In addition to the years of experience of working with companies to maximize the benefits of EDM for their specific situations, DataCore uses state of the art financial decision support tools designed to provide as complete an analysis as possible. These tools enable companies to rapidly determine the financial impact of the new EDM solution on their businesses. A comprehensive financial analysis ensures companies:
- Quickly understand the time and effort required from their IT department
- Have an accurate assessment of the costs of deploying new technology
- Understand what the benefits of the new technology will be
- Use a consistent set of financial assumptions
- Have a consistent method to review the impact of the technology once it has been implemented ensuring the maximum quantitative and qualitative benefits are obtained.
Call us toll-free at 800-531-2287 to speak with a DataCore sales representative about assisting you with establishing the correct ROI for your business.