When organizations assess the return on investment (ROI) of technology such as document management solutions, they place emphasis on specific and measurable savings.
Many recognize, in general terms, that improvements in their tech stack can lead to streamlined processes, enhanced efficiency, and cost savings–but quantifying these benefits is crucial to garnering support throughout the entire organization, from top management to employees.
In this blog, we will delve into the top seven savings that businesses of any size and industry can achieve by implementing a document management solution, and how these savings can drive ROI and deliver tangible benefits at every level.
The number one savings a company can expect to see after implementing a document management solution are cost savings.
Document management software saves organizations money by allowing them to spend less on materials like paper, ink, and postage–daily expenses that seem small, but add up quickly.
In fact, Gartner's research suggests that as much as 3% of a business’s revenue can be wasted on paper and its associated processes. Document management helps businesses recoup these expenses by digitizing data and workflows that traditionally depend on paper. Not only does this eliminate wasteful material resources, but it also helps you make the most efficient use of your human resources.
By centralizing all information and giving employees an easy way to search and retrieve it, you eliminate the costs associated with ineffective information searches–a practice that can waste as much as 10% of a company’s salary costs, according to The Butler Group.
Without a document management solution in place, document-dependent tasks involved in processes include manual filing, paper shuffling, and the need to search through filing cabinets or messy email chains for information. These steps add minimal value to the business and result in wasted time.
While at the surface it appears to only be a few insignificant minutes, it can quickly add up:
- Executives waste six weeks per year searching for lost documents.
- 59% of middle managers miss important information almost every day due to accessibility.
- 15% of all paper handled in businesses is lost and 30 percent of all employees’ time is spent trying to find lost documents.
Document management solutions help optimize your time management by storing all of your documents and data in one central location. This enables users to quickly search for and retrieve the information necessary to complete their work while eliminating the risk of losing documents.
Document management technology like DocuPhase can also be paired with workflow automation that reduces time spent managing approvals and routing documents. This means drawn-out processes like time off requests can be fully automated, eliminating the lag time that exists with manual processes.
Businesses produce a large volume of data and information, often stored on paper, or siloed in various digital locations.
For some organizations, like Laconia Housing Authority, the need to eliminate paper is the primary driver for adopting document management software: they’ve simply run out of space and have no other choice.
With a document management platform, companies can house data in the cloud instead of in a room full of filing cabinets. This eliminates the need for physical storage space, the time spent manually filing information, and the costs associated with external storage.
No matter how many thousands of paper records a business needs to scan and organize, a solution like DocuPhase can help you capture and index all of your physical information into a repository with ease.
4. Gas & Travel Expenses
From salespeople to field staff and remote workers, organizations often require members of their workforce to conduct business outside of the traditional office setting.
The management of remote employees comes with its own set of complications: one of them being effective collaboration and communication.
With document management and workflow automation, you offer your employees access to information anywhere, anytime.
Field staff are empowered to retrieve all business data and documents required to conduct business on the go. Executives can manage approvals; salespeople can submit expense reports; and field workers can access customer information without ever stepping foot into the office.
Collaborative projects and teamwork can be achieved from the road, and business is no longer stifled during executive travel.
With the web-based access that DocuPhase provided to the Forsyth County Sheriff’s Office, every one of their 125 patrol officers with an in-car computer can access such files as arrest records, hand-written instant reports, and case information immediately from the field.
5. Legal Trouble
All organizations are held to some degree of compliance and regulation, such as Sarbanes-Oxley 404 (SOX) or HIPAA. Protecting your organization from potential legal complications is one of the greatest assets a document management solution can deliver.
- Are documents securely stored, with confidential information protected from unauthorized internal and external access?
- Is information and data readily available and easily found?
- Is the information accurate and is the integrity of data intact?
If the answers to these questions are not an immediate “yes”, then your organization is facing potential financial and legal risks.
Document management solutions provide a more effective way to retain records and ensure documents are stored in a secure manner for the required period of time.
Additionally, features like redactions and permission controls ensure complete confidentiality of private information, while audit trails provide the ability to track and monitor all activity in the system.
Should your organization ever be faced with a possible legal dispute, having a document management solution and strategy in place will help maintain and enforce your governance, risk, and compliance.
6. Customer Satisfaction
Document management solutions allow businesses to get ahead of the competition, especially by allowing them to enhance their customer service.
Customers have high expectations when it comes to prompt service from businesses. However, organizations relying on paper-based processes often struggle to respond quickly to customer requests for invoice statements or delivery notes.
These delays can leave a negative impression on customers, impacting their overall satisfaction.
On the other hand, companies equipped with a convenient central document management repository can swiftly access and send documents to their customers and vendors. By embracing efficient document management solutions, businesses can ensure timely responses, leaving a positive and lasting impression on their valued clientele.
7. The Business
In the event of a natural disaster, organizations often face substantial setbacks and, in some cases, struggle to recover entirely.
According to FEMA, 40-60% of small businesses never reopen after experiencing a data disaster. Even for those that manage to reopen, the odds are against them, with two out of five ultimately going out of business if they lack a solid disaster recovery plan.
Fortunately, document management provides a vital safeguard for your critical business data and information, shielding them from physical damage or loss. By securely storing your data on remote, cloud-based servers, you can maintain access to the essential information necessary to keep your organization running smoothly, even if your physical workspace is damaged or temporarily inaccessible.
As you consider an investment in document management software, keep these seven savings opportunities and the tangible benefits they offer in mind. These savings not only drive ROI but also enhance efficiency, streamline processes, and offer your business a competitive edge.
To learn more about how automation could transform your back office, chat with an automation expert.