Subscribe to Email Updates

Subscribe



Nov 4, 2015 8:40:24 AM Michael Myers

How to Determine Enterprise Content Management ROI

ECM_ROI_Calculation

The need for an Enterprise Content Management (ECM) system is often spurred by regulatory and compliance concerns. But what is the financial impact of implementing an ECM system? How do you justify the cost and determine the Return on Investment (ROI)? Organizations need a way to evaluate the ROI of a proposed ECM technology investment to be certain it will pay for itself in results and efficiencies.

Below are two ways to calculate ECM ROI:

  • Online ECM ROI Calculator
  • Detailed instructions on how to calculate your specific ECM ROI
  • Online ECM ROI Calculator for Paper-Based Filing System Cost Analysis
  • Want to know how much is your paper-based filing system costing you?

    Taking a realistic look at the hard costs associated with your manual filing system may prove to be quite shocking. Take a look at our online ROI calculator and get a quick picture of what your paper is costing you. According to studies by PricewaterhouseCoopers:

    • Of all the pages that get handled each day in the average office, 90% are merely shuffled
    • The average document gets copied 19 times
    • Companies spend $20 in labor to file a document, $120 in labor to find a misfiled document, and $220 in labor to reproduce a lost document
    • 5% of all documents get lost, 3% of the remainder get misfiled
    • Professionals spend 5-15% of their time reading information, but up to 50% of their time looking for that information
    • There are more than 4 trillion paper documents in the U.S. alone - growing at a rate of 22% per year
  • Detailed Instructions on how to calculate your specific ECM ROI
  • Download our ECM ROI white paper to find out how you can calculate your ROI easier and faster with better visibility into your potential cost savings.

    Labor Costs

    Include fully burdened hourly costs, and determine how many (full-time and part-time) employees are involved in the process. Estimated savings should be included.

    • Number of FTEs who handle paper documents
    • Hours per day
    • Average working days / month
    • Average full loaded hourly salary of paper-handling staff
    • Monthly cost of a minute’s worth of work by each FTE per day
    • Time spent by each FTE
      • Retrieving documents
      • Filing documents
      • Copying documents
      • Faxing documents
      • Recreating existing information

    Document Handling Costs

    Compare the supply costs including file folder, pre-printed forms, paper, and other file-room supplies.

    • Photocopying
      • Number of paper copies generated each day (pages)
      • Cost per copy (paper, toner, ink)
    • Storage Costs
      • Amount spent on physical offsite storage per month
      • Hours spent per month accessing offsite storage
      • Amount spent on filing supplies
    • Delivery Costs

      Mailing and courier costs should be evaluated. Example; one state’s courier fees exceeded $1 million per year for transferring child support case files.

      • Courier & Postage
      • Number of faxes sent per day (pages)
      • Cost per fax (page)
      • Facsimile
      ECM_ROI_Calculation_Formula

    The results give an illuminating look at what an ECM system can do for organizations, from driving value to minimizing risk and ensuring compliance. Click to download the complimentary white paper on how to calculate your ECM ROI.

    Download White Paper