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ROI =
DOLLARS and SENSE
"The bitterness
of poor quality is remembered long after the sweetness of low cost has
been forgotten"!
Michael Hackleman, Waterworks
Cost justification dollars typically fall
into two primary categories:
1) First are
hard dollar savings
or increased revenue in the operating budget. Hard dollar savings are
usually the result of having tangible reductions in expenses or
increased revenues from a new product. For example, after a project is
complete, the payroll for that department may be reduced from $2
million per year to $1 million per year.
2) Second are
soft dollar savings
or increased revenues. For example, a new customer service
system allows you to offer better customer service, therefore,
increasing business and revenues. Other examples include: increased
competitive edge, better and faster access to information and quicker
internal communications.
Your cost benefit analysis needs to be
accomplished with as much accuracy, as possible. It is the financial
foundation upon which your project is built and will become the basis
for long-term evaluation of the project.
Document and Work Areas for Consideration.
Following are various areas to consider for
achieving maximum savings in a typical imaging and workflow system:
- Legal mandates and regulatory compliance
- Sarbanes-Oxley, SEC Rule 17, FACTA, HIPAA,
- CHECK 21, FERPA, FRCP, GLBA, HMDA, NCLB,
PCIDSS
- Off-site storage and retrieval costs
- Labor reductions
- Remote work access capability
- Lost or misplaced documents (Average cost
is $75)
- File retrieval times for in-house
(Average six (6) minutes in an organized office)
- File retrieval times for storage (Average
three (3) days without any rush fees)
- Increased productivity for shared
documents
- Reduced printing, mailing, faxing or
special delivery costs
- Document access to customers over the
Internet saving labor costs
- Cost of file cabinets
- Cost of leased space for file cabinets
- Cost of paper, paper clips, staples,
folders, index cards, etc.
- Cost of printing including printers,
cartridges, maintenance, etc.
- Cost of copiers, toner, maintenance, etc.
- Disaster Recovery – fire, water damage,
theft, tornadoes, etc.
- Overall document growth rate
- Moving paper documents, manually and
internally
- Decrease A/R (“Can’t find your invoice?
Let me pull it up, now, and e-mail it to you”)
- Improved Security (Disgruntled employees
can’t “misfile” important documents)
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