Document Conversion ROI Calculator
To determine the ROI of a document management system, you must calculate the saved man-hours and storage costs and compare the final number against the cost of the document management system and its operation.
Cost of storage for a paper based document management systems:
Formula: Number of filing cabinets x 21 square feet x cost per square foot = annual cost. One 3-foot filing cabinet drawer = 9,000 documents (pages) One 4-drawer filing cabinet = 36,000 documents (pages) One 4-drawer filing cabinets require 21 sq. ft. of storage space
Lost Productivity Cost:
The cost associated with finding and retrieving documents in a paper based document management system.
A key advantage of an electronic document management system is the ability to find and retrieve documents instantly from your desktop PC.
Formula: Number of employees x 20% x average annual wages = Annual Savings. Time-management experts estimate that searching for documents requires 20% to 30% of the average employees’ time.
Added cost of scanning and indexing documents for electronic document management systems:
Formula:Number of filing cabinet drawers x 9,000 divided by 4,000 = days required to eliminate archived documents. Based on current customer influx, a good rule of thumb is 4,000 documents per day of an entry-level employee’s time.
Some more information to help with your proposal:
Cost of electronic document management system:
A multitude of electronic document management solutions are available. We offer two base packages:
A simple web-based solution that we host and manage for you.
A more robust system that you host and manage in house.
For either solution, you can do the scanning and indexing yourself or we can do it for you.
Please call for pricing: 540-898-1406
Studies show that offices increase their paper demands by 25% per year; retention periods are becoming longer and access to the documents are becoming greater. A document management system can replace filing cabinets and improve efficiency.
Benefits of Document Management :
- The ability to efficiently store documents and easily search and retrieve their contents.
- Secure archive capabilities.
- Elimination of lost or decaying documents.
- Manage your business, not your paper.
- Documents can be scanned, indexed for searching, and stored on any type of electronic media. CD ROMs have over a 40 year shelf life and can store about 15,000 pages; a DVD can hold 100,000 pages. A document that is stored on a computer can be easily located, and once it is found it can be printed, faxed or e-mailed. Imagine storing 10 file cabinets worth of paper documents in your desk drawer, and being able to retrieve any document within 30 seconds!
- With paper documents, an employee will spend more time looking for a document than they spend reading it. On average, 1 hour of searching results in 20 minutes of reading.
- 3% of paper documents get misfiled, while 7% get lost completely.
- An average company spends $25,000 to fill one file cabinet and $2,100 a year to maintain that cabinet.
- On average, an employee spends 15 minutes filing a document, 1 hour looking for a misfiled document and 3 hours to recreate a document.
- Of all the paper documents that are handled each day in the average office, 90% are merely shuffled.
If you digitize your documents, you will need GB of storage space.
That's GB Flash Drive(s), GB External Hard Drive(s), or GB of Cloud Storage.
I would like to speak with ILM about digitizing my documents