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We know that an accurate projection of your company's ROI from a document or data imaging solution or other Image Data service cannot be determined from a simplistic fill-in-the-blank worksheet--and there are many out there. A complex issue deserves a comprehensive treatment.

An Image Data consultant will help you examine your enterprise's needs and help you preface the investment justification process with a sound ROI analysis.

Contact us to help you realistically calculate your ROI.

Why Are Organizations Focusing on
Business Processes and ROI?

TABLE OF CONTENTS QUICK LINKS
Intro
1. Leveraging the Value of Enterprise-Wide Solutions
2. Reducing Labor Resource Requirements
3. Achieving Physical Plant Savings
4. Reducing Materials and Shipping Costs
5. Decreasing Collection Time and Fees
6. Improving Customer and Partner Satisfaction

There has been a major shift in the way companies are approaching the subjects of business processes and return on investment (ROI). This shift has been driven by a realization that inefficiency in any part of the business can lead to severe competitive disadvantage. Smart executives have come to realize that business wars are won not with the best product or the clever advertising slogan but rather through a disciplined approach to managing the transactional aspects of the organization.

Today, many organizations are looking for ways to mine additional value from their existing infrastructure. Efficiency and productivity have taken on added importance in companies with tightened budgets and reduced workforces.

Even those not feeling an economic pinch want more efficient business processes to hone their competitive edge. And whatever the specific efficiency requirement, any solution must now also promise quick return on investment.   back to top

Opportunities to generate rapid ROI by maximizing efficiencies can be divided into six major categories.

1. Leveraging the Value of Enterprise-Wide Solutions

   Large organizations have spent millions of dollars and dedicated thousands of employee hours to implementing sophisticated document/data imaging systems. In midsize companies, the investments may be hundreds of thousands of dollars, but the stakes are equally high.

   Despite these massive investments, the promise of document/data imaging systemsoften has not been realized because of bottlenecks that continue to exist in the way people actually use the systems. These bottlenecks, which we refer to as "business chokepoints," are found in three primary areas:

   • Capture, storage and retrieval of data, documents, images, etc. Without the ability to quickly find and retrieve structured and unstructured data, a great deal of a document/data imaging system's efficiency is lost.
   • Mapping of critical business processes. Unless document/data imaging systems that interface with other parts of the organization are based on efficient workflow models, much of their value will be wasted.
   • Collaboration between internal and external resources. Analyst studies have shown that, on average, between 10 and 15 percent of business transactions are out of tolerance in some way. According to Aberdeen Group, as much as 40 percent of the total costs of managing transactions are spent on these "unruly" transactions. A company's inability to collaborate electronically to resolve such problems costs it dearly, not only in lost productivity but also in strained relationships with its customers and vendors.

   The good news is that by content- and process-enabling document/data imaging systems, and extending them with collaboration tools, companies like Image Data can help you leverage your investments in these systems by reducing operating costs and increasing customer and vendor satisfaction.  back to top

2. Reducing Labor Resource Requirements

   The majority of investment returns are generated through process efficiency gains and the elimination of handling costs. The gains achieved are valuable because they are reached throughout the organization, at the processor and clerk level as well as the management level.

   Labor and resource requirements are reduced by:

   • Reducing the amount of time required to process a transaction. By enhancing the effectiveness of the business process, companies can reduce processing time from days to minutes. By using electronic storage for the retrieval of documents and reports, users of critical business systems gain faster access through the elimination of manual handling and the increased speed of searching for relevant documents and report information.
   • Reducing the number of times a transaction must be handled. Incorporating a predefined series of rules and routes for the automated flow of transactions enables the user community to act on other tasks. An automated transaction process (ATP) system evaluates the steps to be taken based on user input.
   • Reducing paper processing. Each time a piece of paper or printed report is touched, it costs money. The process becomes even more expensive when a large amount of data must be captured from the paper. Capturing the data and eliminating the paper on the front end of the automated process reduce processing time.
   • Facilitating audit access. Audit activities are typically a very labor-intensive process. An automated Web interface for users can perform the functions of a filing clerk, doing spot retrievals that eliminate the usual manual gathering and collection time required during a formal audit. Additional audit support is provided by the ability to electronically "batch output" requested information, eliminating the need for manual retrieval and duplication of documents. These capabilities reduce auditor and staff time required to provide the information.
   • Reducing inquiries through self-service and collaboration. By making information available in a portal-type interface, partners and customers can look up information themselves, thus reducing the inquiry burden on internal staff. At the same time, if collaboration is required, partners and customers can interact in near to real-time, enhancing the overall efficiency and sharing of information and reducing the number of times a transaction must be touched.
   • Facilitating the resolution of discrepancies. The speed with which a process solution can identify, present and facilitate collaboration on an issue or discrepancy creates a unique opportunity to reduce costs. Essentially, this is accomplished by lowering the amount of user interaction required not only from the organization utilizing the solution but also from its partner and customer organizations.
   • Eliminating errors and loss. Two key areas where business process savings are achieved are the elimination of duplicate data entry and document loss. The capture of documents on the front end of a process not only expedites the process but also eliminates the potential for document loss on the back end when a document must be retrieved.
   • Streamlining internal communication. It's also important to go beyond the traditional view of the organization and look at the time savings of personnel tangential to the process. For example, in an accounts payable application, the individuals in warehouse, distribution and purchasing can leverage the information collected in the process without having to contact an A/P representative. Auditors responsible for reviewing and evaluating the process or contractors performing additional duties also have the tools to become more efficient in their interaction with information. They become less dependent on the individuals responsible for maintaining the day-to-day operations.  back to top
3. Achieving Physical Plant Savings

   An area frequently overlooked in achieving ROI is physical plant savings. This opportunity has three components:

   • Storage of documents. Storing documents, reports and other correspondence electronically eliminates the need for maintaining large, usually expensive storage space. Savings can be achieved by making the space available for other activities as well as eliminating the transfer and storage costs associated with long-term off-site storage.
   • Occupancy. Because automated processes save time and effort, organizations can perform the same duties or expanded duties without adding additional staff. This ultimately results in decreased occupancy costs associated with maintaining or expanding a business process.
   • Maintenance and repair operation savings. As occupancy and storage requirements decrease, the amount of time and money invested in the repair and maintenance of facilities or equipment (computers, monitors, phone systems, fax equipment, etc.) decreases as well.  back to top
4. Reducing Materials and Shipping Costs

   To execute a business process, time-critical information is often delivered via expensive mediums to the facility responsible for the processing. A good example is a retail or manufacturing organization where goods are received remotely but ordered and paid for centrally. In this instance, the packing slip documents are delivered to a central processing facility in an expedited fashion to take advantage of discounts for early payment. This is just one of many examples where data and documents are captured remotely and must be consumed or utilized elsewhere.

   By leveraging the distributed capabilities of an automated transaction process, including remote capture and access to information, typical material and shipping costs are reduced, both from the perspective of input into the process as well as output from the process.

   Here's how it works:

   • Postage. Information can be captured into the process remotely, potentially without a physical document that must be captured, thus eliminating or significantly minimizing storage and postage requirements. In addition, outbound postage can be decreased as information is presented over the Web.
   • Overnight shipping. Because of efficiencies in the business process, once information has been captured remotely, the requirement to ship documents or reports overnight can be reduced or eliminated. If information is still shipped centrally, organizations can transfer information into the process using a cheaper alternative to overnight shipping as a result of process efficiencies. From an outbound perspective, the ability for customers to receive information over the Web eliminates many requirements for overnight shipping.
   • Fax. By leveraging Web capabilities, customers can achieve savings based on the amount of Web traffic generated. The opportunity to receive orders, applications, claims or correspondence via the Web will increase, and the need for fax will decrease. When faxes can't be eliminated entirely, an electronic transaction results in an automatic process for capturing and delivering faxes into the business process and/or to an archive, where they can be easily retrieved alongside other information content.
   • Copying. The need for hard copies and duplicates as well as the management of those copies and duplicates is eliminated.
   • Resources and supplies required to support materials handling costs. By minimizing and potentially eliminating the need for faxes, copies, etc., the materials required to support the processes are reduced, including paper output (especially in the case of reports), copy paper, fax machines, copy machines and printer ink. In addition, phone line savings can be generated through the use of Web applications and/or delayed faxing.  back to top
5. Decreasing Collection Time and Fees

   Many organizations derive significant benefits from the cost savings provided by automating their processes. However, the ability to drive ROI continues into areas where cash management savings and cash generation opportunities can be executed. The opportunity to save and collect money is presented by both the receipt and payment aspect of virtually any application in the financials, approvals or claims processing arenas.

   • Discounts taken for early-pay opportunities. In the case of a payables-oriented process, an ATP application enhances the ability to take advantage of early-payment discounts. By providing an efficient process that delivers all relevant information in a more timely manner (especially the packing slip documents), this application creates the opportunity to take advantage of discounts at a more efficient level.
   • Elimination of duplicate payments. Many organizations find it difficult to identify duplicate submissions and duplicate payments. The ATP application creates an expanded environment where the system can clearly identify whether a duplicate exists and then take steps to address it. This is achieved without significant human intervention, saving time and money.
   • Decrease in day sales outstanding (DSO). From the receivables side, the ATP solution creates the opportunity to decrease DSOs. Information may be presented over the Web, so the "I never got a copy of that invoice" call is reduced or eliminated. In addition, out-of-tolerance items due to short shipments, wrong shipments, damage, etc., which can cause DSOs to increase, can be addressed by specific modules that readily identify and facilitate resolution of such items.
   • Tracking and control of rebates and/or warranty claims. Just as with payables and receivables, an ATP solution provides the ability to take advantage of rebates or warranty claims. At the same time, on the opposite side of the transaction, the application can be used to manage the efficient response and payment of warranty claims or rebates.
   • Reduction of regulatory fines and fees. By having all the information readily available and accessible, an ATP application ensures that regulatory responses are efficiently produced and submitted, reducing and/or eliminating exposure to regulatory fines and fees.
   • Reduction in lost business and lost opportunity costs. In the Internet age, time to process is of the essence. Having a Web site that can accept orders, applications, etc., is the tip of the iceberg. Behind the walls of the organization, a company must have an efficient process to facilitate the response to an order or application. By delivering content to the relevant business participants based on predefined business rules, an ATP solution creates rapidly available access to data and documents. The ability to respond quickly increases the opportunity to capture more business.  back to top
6. Improving Customer and Partner Satisfaction

   As specific automated components are added to the mix, the opportunity to create revenue opportunities increases. This is typically, but not always, a softer benefit. However, the increases in the comprehensiveness and timeliness of a response to a customer/partner inquiry will likely cause the organization to see an increase in business from that same customer or a reduction in costs from that same partner.

   Increases in revenue because of better customer service can often be found in the manufacturing arena when a manufacturer is delivering a product that is a commodity. By operating the organization with an efficient process and enhanced collaboration, the customer or partner will be more inclined to interact with the organization.

   In addition to the revenue opportunity resulting from increased customer service, other internal opportunities exist as well. The ability to attract and retain quality personnel is critical in today's market. Employees are likely to be more productive and the organization is more likely to retain employees when automated, streamlined tools are utilized. The organization is viewed as being more innovative and concerned about making the employee's job easier.

Finding hidden treasure within your organization's business processes is imperative, especially as the Internet age forces organizations to respond faster and faster. Time is money, and an automated transaction process will help decrease task time and increase response time.

We know that an accurate projection of your company's ROI from a document or data imaging solution or other Image Data service cannot be determined from a simple fill-in-the-blank worksheet--and there are many out there. A complex issue deserves a comprehensive treatment.

An Image Data consultant will help you examine your enterprise's needs and help you preface the investment justification process with a sound ROI analysis.

Contact us to help you realistically calculate your ROI.

⇒ Do you have questions? Want to find out what your options are? Submit our simple, no-obligation Call Me Now form for more information: Click here.

back to top