Cost Justification
For one to calculate cost savings on a document and
records management project, it is important to look at both hard and soft savings.
To simply view one without the other causes a one-sided justification, thereby
prohibiting a total overview of the whole savings strategy.
Identifying the objective, that senior management
expects, will be the guideline in determining how to best present benefits and savings.
Identify all areas having potential benefits and demonstrate those benefits.
This is what should formulate a Mission Statement.
In basic problem solving, however, all the aspects
of the problem need a broadened view. One of the tasks involved then would be to
include an evaluation of the risks involved in addressing only partial elements of the
problem. To do this, know what to look for in developing the business case.
Some content elements to look for are:
- Locating and sharing files
- Tracking
- Storage
- Productivity
- Disaster Recovery Planning
Some productivity elements to look for are:
- A means to classify by subject (how everyone looks
for information)
- Controlling all media seamlessly
- Integrating various systems and office suites
- Ability to view documents easily
- Ease of launching applications
There are certain aspects that need to be
identified. These include:
- The business process
- Scope
- Tactical vs. strategic timing
Some of the typical challenges preparing the
business case are:
- Controlling document creation and maintenance
- Grouping like documents together
- User training
Do not miss identifying document redundancies,
identifying the types of documents on different media, and locating Vital records.
These all have potential benefits that, when the solution is calculated, should
show potential cost savings.
The hard savings calculations would include:
- Reducing cost of equipment, such as filing cabinets
- Reducing cost of supplies, such as paper by reducing
paper files printed and stored
- Reducing cost of labor to service the filing of paper
in cabinets, and in the search and retrieval of information
Soft savings calculations would consist of:
- Floor space saved by the reduction of file cabinets
needed to store documents
- Time saved by reduction of filing information
- Productivity increased with an effective storage and
retrieval system that contains an efficient search technology
The risk in not having a records management system
that controls records in accordance with legal compliance is an information liability and
will manifest itself if there is a litigation or audit. Therefore, complete
retention policy management is also a savings benefit.
Even though reducing operating costs and improving
access to records are the expected benefits, one must show substantial, additional
benefits by exhibiting the whole picture. In this way, management can digest the
fact that there are only two costs involved: The cost of preventing risk and the
cost of experiencing the risk.
Ask us for a proposal and Infologics will show you
the total savings that will justify the cost! Drop us an email at info@infologics.com.
See Cost Savings
Projections
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