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Larry

Can working on a ROI to justify a EDMS system be a ridiculous waste of time?

Helping organizations be more efficient and effective using IT and Laserfiche Document Management - CALL 763-404-4711

Is a ROI really a good tool to help management to spend their money on a Document Management System? Or is it a waste of time? What other approaches to justify the expense do you recommend?

  • Comment (7)
  • March 20, 2012
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  • Carmen Mª G.

    Carmen Mª

    Carmen Mª G.

    Clinical Trials Assistant (HIV) at University Hospital Virgen de la Victoria

    In my opinion, it is a good tool. I attended a webinar arranged by AIIM (http://www.aiim.org/Research/Industry-Watch/Paper-Free-Capture-2012) and they also considered and evaluated this aspect (http://blog.yerbabuenasoftware.com/2012/03/executive-briefing-paper-free-office.html)

  • Gary L.

    Gary

    Gary L.

    Master Architect of Improved Business Processes

    Larry – The choice of tool used for investment decisions (such as implementing an EDMS) depends on the nature of the investment itself. When the implementation of an EDMS results in operational improvements and when those improvements are clearly identifiable as either reduced costs or increased revenues, then the “return” can be used for the calculation of ROI. But sometimes the attempt to quantify an otherwise qualitative metric (e.g., improved customer service or employee satisfaction) results in a false sense of rigor. A sharp decision maker will see through such machinations, defeating the purpose of the ROI exercise. That same sharp decision maker will also likely recognize the qualitative benefits of the EDMS.

  • J.R. R.

    J.R.

    J.R. R.

    SEO Specialist & SEO Consultant at XPONENT InfoSystem (PVT) Limited

    read this http://www.trueseowebdesign.com/how-to-calculate-the-tco-and-roi-of-going-paperless

  • Paul S.

    Paul

    Paul S.

    Private & Coastal Sector Sales Director @EOH SAP Services

    I think you will find that for certain aspects of a business it will be easier to measure ROI from a tangible perspective than other areas. Like Gary has alluded to, the reality is EDMS systems value can more than often be related to efficiently gains within the business. So when we measure this it comes down to saving time, which in turn saves money. This can only be converted if the organisation takes advantage of these efficiency gains by either actively managing this improvements on an ongoing basis, cutting head count or redeploying people appropriately. I would like to point out though, in order to measure the ROI effectively, it is important during the initial environmental analysis to measure the current processes and way of working to be able to define the necessary benchmarks. I have seen all too often this not taking place, and then global best practice or industry standards are used, which provides a false positive benchmark.

  • Braj Bhushan D.

    Braj Bhushan

    Braj Bhushan D.

    Manager- Business Development

    It depends how you take things.ROI calculatin is not required for DMS. It is proven It reduces comlexity,Uncertinity,Unsecurity,Cost.It speeds up search,work,document transmition. This blog will help you to understand and I hope after this you dont need to calculate ROI
    http://documentmanagementsystemindia.wordpress.com/

  • Andro

    Andro G.

    Consultant

    The benefits of EDMS solutions lies in the combination of ROI and VOI. ROI is possible with EDMS if the right metrics are put in place from the outset in the implementation and carried through to benefit realisation monitoring. The challenge lies in the broad scope of ROI calculations, narrow it down to function or process level then it becomes more tangible. One also needs to realise that in some function of business there will be no ROI, but the value derived through the EDMS solution contributes to intangible benefits.

  • Darshana T.

    Darshana

    Darshana T.

    Solution Architect at Spectra Technovision (India) Pvt. Ltd.

    Absolutely agree with Andro. I recommend reading the white paper titled “Measuring ROI on a Document Management System.” You can get it for free from here: http://ow.ly/a4mup.

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