Calculating: Electronic Document Management System 5 people $ 12.50 dollars 30 quantity 3 minutes 5 quantity 3 minutes 20 minutes 100 copies 20 minutes $ dollars 0 dollars 0 quantity $ 30,208.33 $ 23,853.92 $0.00 $ $ $ Months $ #DIV/0! 0 0.5 minutes 0.5 minutes $ dollars $ dollars $ dollars 50% percent 50% percent 90% percent 50% percent
How many people in your office handle paper documents ? What is average salary (per hour) of staff that handles the paper documents ? How many times (average) does each person search and retrieve a paper document per day? How long (average) does it take to retrieve the paper document? How many times (average) does each person prepare/send or retrieve/file a fax per day? How much time (average) does it take to prepare/send or receive/file a fax? How much time (average) does each person spend making copies per day? How many paper copies are generated in your office for internal use per day? How much time (total) is spent by all staff in capturing data from standard forms per day? Cost of my system - enter the anticipated cost of your investment here How much do you pay (monthly) for offsite document storage/retrieval? How many 4 drawer file cabinets do you maintain? YOUR TOTAL DOCUMENT HANDLING COSTS TODAY (PER YEAR) YOUR ANNUAL POTENTIAL RETURN (SAVINGS) USING AN EDMS Annual maintenance fee First year cost using electronic document management system Cost of electonic document management system software & hardware First year cost of system MONTHS UNTIL SAVINGS EXCEED INVESTMENT Savings over 5 years 5 Year ROI Cost analysis assumptions (change for an accurate assumption to your situation) Time to retrieve document via electonic document management system Time to send or retrieve a FAX via electonic document management system Typical electonic document management system implementation costs/ small office system Typical electonic document management system implementation costs / departmental system Typical electonic document management system implementation costs/ large enterprise system Typical reduction in offsite storage costs Typical reduction in generation of internal copies Typical reduction in onsite storage costs Typical reduction in time spent in data capture from standard forms. Other calculation considerations Mailing including Fedex etc., not included How many documents are shipped out overnight /two day? Other considerations not calculated Employees time spent with auditors Once a month Once a quarter One month a year
$
2,000.00 4 Annual
Disaster recovery plan not calculated!
Time it takes to find misplaced or lost documents per day per person for 200 days-search and find
$
40 Minutes
Cost of annual maintenance not included
If system is purchased what is the annual cost of system maintenance?
5.00% $0.00 Annual Asset Inves. $ Annual Main. $0.00 AM(X5 years) $0.00 Asset Capt. 60 months $0.00
Description of Formulas Used to Determine Return on Investment Return on Investment (ROI) Analyzer Value Formula Translation Total Document Handling Costs – This is an (Hourly Salary * Number of People * 200 work days per year) * estimate of the cost of handling paper (hours per person per day doing retrievals] + [hours per person per day doing faxes +(hours per documents today. It takes into account labor person per day making copies) + [hours per person per day filling in forms) +(yearly offsite costs, storage costs, copying costs, and cost storage costs} + for the space to store paper documents. The spreadsheet uses the following formula: (# file cabinets * 4 square feet per cabinet * $8 per square foot per month * 12 months per year) Annual Potential Return (Savings) – This is the amount that a document management system can save you, per year, based on your assumptions. It basically is the difference between the Total Document Handling Costs calculated in the formula above, and the cost of document handling, assuming use of a document management system. The spreadsheet uses the following formula: (Current Total Document Handling Costs per Year) – (Hourly Salary * Number of People * 200 work days per year) * (hours per person per day doing retrievals using assumptions from bottom of spreadsheet) + (hours per person per day doing faxes using assumptions) + [hours per person per day making copies using assumptions) + [hours per person per day filling in forms using assumptions) + (yearly offsite storage costs times percentage of reduction from bottom of spreadsheet) + (# file cabinets * 4 square feet per cabinet * $8 per square foot per month * 12 months per year times percentage of reduction)
Return On Investment - The number of months it will take to recover your investment, based on your annual savings. Assumptions - The following assumptions are in the calculation, but can be changed (via the entries in the bottom of the spreadsheet) if you wish:
{Investment (cost of system) / Annual Savings} * 12
Time (minutes) to retreive a document using the document management system (default is 30 seconds) - This would include a search for the document based on your document indexes. - It compares to the process of going to a filing cabinet and pulling the folder, and making a copy. Time (minutes) to send a fax using the document management system (versus paper) (default is 30 seconds) - Instead of printing a copy, and walking to a fax machine, assumes use of a fax server. Typical reduction in offsite storage costs (default is 70% reduction) - Because you have an electronic storage capability, only very sensitive documents are typically stored after implementation. - Because there is little need to retrieve from physical storage, this can be less accessible (thus cheaper) storage. Typical reduction in generation of Internal copies (default is 50% reduction) - This takes some discipline. - Because everyone has access to files electronically, routine distribution of multiple copies can be eliminated. - Only the copies that are needed will get printed. Typical reduction in Onsite Storage Costs (default is 75%) - Because all files that lived in the file cabinets are now online, electronically. Typical reduction in time spent filling out standard forms (default is 80%) - Using advanced OCR technology, form data can be read electronically - Instead of using manual intensive key from paper methods.