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Building a Document
Management Plan Part I
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by Ray Griffiths |
Editorial Note: If
you are thinking about finding a document management solution, you
will want to read this article. Preparation and planning upfront is
one key to successfully evaluating a document management solution.
Read Part II to learn about imaging tools.
Kay
Graham-Gilbert
Document imaging is a document management
tool which can increase your productivity, reduce your document
management costs, provide enhanced document security and assist with
compliancy issues. Because document imaging can do so much, yet is so
simple to learn and use, you may be tempted to go “on-line” with a
system without first developing a plan. Don’t.
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Often the tendency is to call in several document imaging vendors and
have each of them tell you what they think you need. After a lengthy
process of each vendor gathering information and presenting a proposal
you are not ready to make a decision because:
* The cost is more than you anticipated and there does not seem to be an
ROI to justify the system.
* The project is overwhelming and your resources to get it done are very
thin.
You can eliminate the above scenario if you gather some information and
put together a plan. Before you contact any vendors you need to resolve
a number of issues. This article addresses these issues in the form of
questions to be answered. Some of the questions will not be relevant to
your situation.
The first issues concern funding the project. If the funds are not going
to be available even if the project looks good, there is no need to
proceed. |
1. Return on Investment (ROI).
· What is company policy requiring an ROI?
· What is the standard payback period?
2. Does this project need to be budgeted?
3. Which department’s budget will fund the project?
4. Does the department that will fund the project have total buy in?
5. What are the preconceived costs of the project?
6. Could the price tag on a system be too high even if it the ROI meets
company standards.
7. At what level can the project be approved?
8. Do you have the infrastructure to support a document imaging system?
1. If not will that cost be included in the cost of the imaging system
The following is a commentary on how companies build their ROI.
Accounting is where most companies find the best ROI.
A document imaging system in accounts payable will have good ROI if some
or all of these conditions exist:
1. There are 5 or more payables clerks
2. They are manually matching checks
3. Invoices have to be approved after they are received.
4. Receivers are being printed and sent to accounting.
5. Some payables become receivables.
6. You process hundreds of invoices every week from the same vendor(s)
Much of the processing in accounts payable can be automated to some
degree by using document imaging technology. When you invite consultants
or vendors in you need to have an idea what you expect to accomplish to
be sure that they are going in the right direction. Evaluate the process
and determine if document imaging will provide a good ROI.
Accounts receivable is the best ROI for many companies. Good customer
service and reducing outstanding receivables days is a challenge for any
organization. Document imaging can be a tremendous help in improving
customer service, reducing receivables days as well as reducing bad debt
because:
1. You have better control of your proof of delivery documents.
1. They will be in the system faster
2. You know if one is missing at the end of the day so you can do
something about immediately.
3. Once they are in the system you will not loose them.
4. You can retrieve them instantly.
2. All customer documents relating to a transaction can be retrieved
quickly to answer questions and resolve issues.
3. Imaged documents can be emailed or faxed from the imaging system.
Again you need to look at your current process and determine, if you
automate the POD process, will there be a good ROI.
Other areas where document imaging will help provide an ROI:
* Sending MSDS sheets with product orders
* Work orders
* Manufacturing documents
* Quality control
* Sending certifications with product orders
In my early years in the business I would work with a company and not
ask the money questions. I soon found that if the company had not
answered the money questions it was difficult to get a sign-off, and
most of the time the project would die. When I work with a company today
these are the first issues I deal with. I know that most organizations
have a need for document imaging and many of these organizations have an
easy ROI.
If the funds are available, proceed to the next set of issues.
1. Who initiated the project?
2. What problem(s) are they trying to solve?
* Define the problem(s)
* How will document imaging solve the problem?
3. Are there other departments in the company that are interested or are
there other departments you think will jump on the band wagon once a
system is in place?
4. What other departments in the company should be involved.
Who initiated the project can often be the key to the success of
acquiring a document imaging system. If a high level executive is
championing the project it will be easier to get approved.
In some cases the problem(s) will insure that a system will be
installed, if it will solve the problem, regardless of the ROI.
When you invest in a document imaging system your goal should be to
leverage the system to the fullest extent. So it is important to look
for all the areas that can benefit from document imaging technology. To
do this you need to understand document imaging technology and how it
can be applied. That will be covered in the part 2 of this series of
articles.
Almost any company that can justify a document imaging system will have
several departments that will be able to use the system. But, (there is
always a but) do not try to solve everyone’s problems with the initial
project. It will become too complicated and overwhelming and nothing
will get done. Pick one area like accounts payable. Once that is up and
running move to another area.
Part 2 of this series will discuss how document imaging technology is
used to solve some of the most common problems.
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©
2005 Interactive Consulting. All rights reserved.
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