When you calculate ROI, one of the most important metrics to consider is Return on Investment. DMS software can provide a great return on investment for your organization by helping employees save time and work more efficiently. DMS software also provides disaster management of documents which ensures that all important files are backed up securely.
Installing a DMS system can aid your business in many different ways. Saving time, protecting data and saving money are just a few things to consider when weighing whether or not you should invest in a DMS solution for your company.
A Document Management Software is essential for your organization. You save time for employees by spending less on contract processing, invoicing and customer inquiries. As we’ve discussed, installing a DMS software on your computers will help you save time and disaster management.
Now I want to show you how much.
The benefits of a DMS are clear, but how does it make corporations money?
Calculating the Return-On-Investment for the Document Management Software is a very straightforward process.
To calculate ROI when purchasing a DMS system, ask these ten questions.
1. How many people in your organization still use paper documents?
2. How many times does every person retrieve the paper document?
3. How much time does it take to locate a paper document?
4. How long does it take to process a paper document?
5. What is the average annual salary of these employees who handle these documents?
6. How many paper copies of documents are generated on a daily basis?
7. How many filing cabinets do you have in your office?
8. How much space is occupied by the cabinets in your office? Each cabinet occupies 12sq.ft of space in the office.
9. What is the approximate cost of your office premises?
10. How much money do you spend on filing supplies every month?
Now that you have estimated the time it takes to document a single file or document, you can calculate your organization’s total cost for documentation.
Multiply this time by the average hourly salary to get an estimate of how much money is wasted on searches each day.
Changing by mistake: Multiplying the amount of money lost in a search, for example $10, would result in $100 being spent every day if you are paid at $20/hr.
After this consider the loss of business or loss of customer trust due to lost documents. The cloud-based or on-premises based document archiving software may seem costly, but in reality, it’s not as expensive as filing and retrieval of physical documents.
In addition to a fast retrieval and storage, there are many other benefits of using DMS that don’t include :
- A Document Management System operates in electronic format and contains documents that can be backed up relatively easily and exported offsite without any cost. This is contrary to a paper-based system which has high prices, with the additional disadvantage of not being environmentally friendly.
- Any misplaced document can be easily found through the search function in a DMS system. With paper filing, it can become tough to find documents sometimes impossible to know where they should be filed- and when you filed them.
- With a Document Management Software, filing becomes very easy. Filing is achieved by retrieving documents in the cabinets.
- Moving documents in a workflow process from one point to another is an easy task because the on whoever holds the document at any time has access to it through modular, cloud-based services. It’s much more difficult with paper folders as you don’t know who is holding the file and where.
- Forms filled out on paper can require tedious effort and manual input, but electronic forms eliminate these mistakes.
- Electronic documents are encrypted and therefore protected from unauthorized access. Physical versions of the same document can be stolen or misused.
- Physical papers are a dangerous manner of storing records as they can be destroyed by natural disasters like earthquake, fire, pest attack and more.
- At the end of the day, a DMS system pays for itself in cost savings and opening up space in your office.
- After considering the points in the article, you will have a better understanding of what your investment can accomplish.