Assessing the Return on investment for EDMS is not difficult to do. A look at some of the research provides a clear picture of how a document management solution can provide real savings in time and money.
The intangible long-term benefits can add up to huge savings over time.
Nucleus Research, an independent research firm specializing in measuring the ROI of IT investments, reported that 83% of companies surveyed reported a positive ROI on their investment in Document Management Systems. That's a much higher percentage than can be found with virtually any other IT investment! It's just one reason that Gartner Research puts Document Management squarely in their magic quadrant of tools with high ROI and low cost of ownership.
Cost Savings by investing in an EDMS:
- Cost Savings on Physical Storage: A DMS reduces the need for physical storage, optimizing office space and cutting costs associated with maintaining filing systems, streamlining document management processes.
- Reduced Paper and Printing Costs: Minimizing paper usage cuts operational costs and simplifies document management processes, contributing to a more cost-effective and sustainable business.
- "Cost savings" from administrative costs involving manual tasks: Automating document categorization, filing, and retrieval reduces the need for labor-intensive work, driving down administrative expenses.
- Reduction in "Labor Costs": By automating repetitive and time-consuming tasks, a DMS decreases labor needs, leading to significant reductions in labor expenses.
- Reduction in "human errors": A DMS helps reduce costly errors caused by manual data entry or misfiled documents, improving accuracy and operational efficiency.
- Improved Productivity and Time Savings: By automating manual processes, a DMS boosts employee efficiency and increases employee satisfaction by allowing them to focus on higher-value tasks.
Direct benefits as a result of investing in an EDMS:
- Enhanced Regulatory Compliance using Audit Trails: A DMS ensures adherence to regulatory requirements, with features like automated retention schedules and audit trails, reducing risks of fines or penalties.
- Faster Decision-Making: Quick access to critical documents allows for faster, informed decision-making, improving regulatory compliance and overall business efficiency.
- Disaster Recovery and Risk Mitigation: A DMS provides secure storage, protecting documents from risks such as fire or theft, ensuring business continuity and reducing downtime.
- Improved Collaboration and Accessibility: A DMS enhances document sharing across departments, leading to quicker project completion, Improved Customer Service, and reduced project costs.
- Improved Data Security: Strong security measures ensure sensitive documents are protected, reducing the risk of data breaches and helping meet regulatory requirements.
- Scalable Growth and Flexibility: A DMS allows for growth without major infrastructure investments, ensuring cost-effective scalability and long-term ROI as the business expands.
Savings from cutting down on paper-related costs
Reducing paper can amount to huge savings based on storage costs alone.
- Floor space requirements for document storage
- Filing cabinets and filing supplies.
- Cost of routing physical documents between departments and offsite locations
- Cost of paper and printing
- Cost of off-site storage service providers
Savings from Time and Productivity Improvements
Productivity gains from timely access and retrieval to documents is a major factor.
- Improved service to customers
- Instant access to documents
- No cost of routing documents
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Intangible benefits and savings
There are a lot of intangible benefits can cannot be expressed in terms of money. Although the case can be made for
- Reduced errors and omissions
- Improved turn-around time
- Ability to audit and track documents
infoRouter can easily pay for itself in just a few months given the increased ability for users to locate the information they need. Productivity gains and benefits are only part of the picture. infoRouter also saves you money by centralizing and managing a function typically spread over countless applications and systems.
Finally, there's the very real value associated with your peace of mind -- knowing that all of your critical corporate files and documents are centralized, secured, versioned, and instantly recoverable even if they are deleted.
For an eye-opening return on investment for electronic document management systems, make sure to download and play what-if games with our infoRouter ROI Calculator (Excel format)
Manual Document Management vs. Advanced Document Management System
Managing documents manually versus using an advanced document management system (DMS) can have a substantial impact on your business's efficiency, security, and overall cost savings. Below is a side-by-side comparison of the two approaches:
- Efficiency and Productivity:
Manual: Employees spend countless hours searching through filing cabinets, physical documents, or scattered digital files, leading to lost productivity. Manual processes often result in duplicated efforts, errors, and delays.
Advanced DMS: An advanced system automates document storage, retrieval, and sharing, allowing employees to access critical information in seconds. With advanced search capabilities, users can achieve sub-second search results, while the use of Meta Data helps them locate documents even faster. Automated workflows further streamline processes, eliminating repetitive tasks and ensuring that documents move through approval stages efficiently.
- Cost Savings:
Manual: Hidden costs such as physical storage, paper, printing, and lost labor add up over time. Not to mention the costs associated with retrieving or reproducing lost documents.
Advanced DMS: By going digital, businesses eliminate paper, storage, and administrative costs. With quicker access to documents and fewer errors, organizations can save time and improve overall profitability.
- Security and Compliance:
Manual: Physical documents can be easily lost, stolen, or damaged. Keeping track of who has accessed sensitive information is nearly impossible, making compliance with regulations like HIPAA or GDPR difficult.
Advanced DMS: Advanced DMS provides secure digital storage, audit trails, and access controls. You can ensure compliance with regulatory bodies and industry regulations through automated retention schedules and security features that prevent unauthorized access.
- Scalability:
Manual: As your business grows, so does your volume of paperwork. Scaling manual processes involves more storage space, increased administrative overhead, and greater potential for error.
Advanced DMS: An advanced document management system grows with your business, offering virtually unlimited storage for digital documents and scalable workflows that can be easily adapted to your organization’s needs.
- Collaboration:
Manual: Sharing physical documents requires printing, shipping, or scanning—slowing down collaboration between team members, especially in remote or hybrid work environments.
Advanced DMS: A DMS allows for real-time collaboration, with multiple users able to access and edit documents simultaneously from anywhere. Discover how you can enhance teamwork with the collaboration features of infoRouter.
Ultimately, moving from a manual process to an advanced document management system results in improved operational efficiency, better security, and a higher return on investment.