Because best-of-breed enterprise content management (ECM) software enhances existing business processes, organizations can quickly identify the many tangible benefits of implementing ECM technology. Calculating the return on investment (ROI) for the implementation becomes a relatively straightforward process, which makes it easy to develop a convincing business case.
If the ROI is so obvious, why aren’t ECM implementation plans at the top of every IT project list?
Perhaps there isn’t a single proponent in your organization to drive the process because no one person controls the whole budget for a solution that is truly enterprise-wide, Or possibly the sheer volume of documents and unstructured content your organization is dealing with makes it difficult to narrow the initial project focus to a manageable size. (Hint: Start in one department and then expand from there.)
Whatever the reason, the benefits of ECM are too great to let implementation languish in the no man’s land of “if we have budget left over in Q3, we’ll consider it.” If you’re ready to dramatically speed business processes, get rid of cumbersome paperwork and meet the many compliance regulations facing your organization, read on to see eight ways to advance your case for ECM.
1. Do Some Digging to Prove Cost Savings.
The good news is ECM technology offers real savings that can be quantified. And the easiest ones to quantify are those for key business processes, such as invoice processing, vendor management, and travel and expense processing. Start with those because real numbers are far more compelling than vague promises about “better collaboration” or “enhanced communication,” although those are among the benefits of ECM.
The bad news is most organizations don’t collect data on the materials, volume of documents, and labor associated with these processes. So you’ll need to do some figuring on your own.
But don’t get bogged down in the details. Select one portion of a process – invoice approval, for example – and use it as an illustration. Get estimates from your accounts payable manager on volume and how much time each step takes. Estimate error rates/reworks to add to the labor costs, then the cost of materials, including paper, toner, and equipment leases. You don’t need to know down to the penny. Just use a logical methodology you can explain.
There are lots of cost savings calculators around. You can try this one for free. And no log-in required.
2. Use Benchmarks to Show the Value of Other Key Benefits.
While cost savings may be the most tangible benefit of an ECM solution, there are other advantages that should be emphasized. Risk mitigation in the event of litigation and business continuity in the face of a disaster will also gain the attention of executive management. You may be able to get industry data on legal discovery expenses and the cost of recovery from disaster. If not, ask the ECM software vendors you’re talking with for examples or case studies that show the value of risk mitigation in these areas.
3. Line Up Your Case With Your Company’s Business Goals.
Look at your company’s mission statement and strategic goals to be sure you’re emphasizing benefits that directly support your company’s top priorities. If customer satisfaction is at the top of the list, emphasize how ECM will improve your customers’ experience. If delivering value is a key operational goal, cost savings and ROI should be right up that alley. You’re competing for budgetary resources that are fragmented and can be allocated a thousand ways. You’ll give your case a big boost if you can underscore how ECM is the logical choice to help your organization reach its stated goals.
4. Understand How the Expense for ECM Will be Classified.
Find out if your ECM initiative will be classified as a capital expense or an operating expense. If it’s the latter, initial cost savings combined with future cost avoidance may easily exceed the acquisition expense, fully justifying the investment. If part of the ECM solution would be a capital expenditure, you may want to emphasize the timeframe over which savings will be realized. Your chosen ECM vendor should offer various pricing options to suit your purchasing needs.
5. Review How Your Company Budgets for IT and Go With the Path of Least Resistance.
Look into how implementation costs will be apportioned across departments. If the first business unit to be deployed will bear the majority of the cost, consider proposing simultaneous adoption by several departments. Otherwise, the deployment will be a long process. You also can ask your ECM vendor about SaaS (software as a service) options that allow you to subscribe to software (with upgrades included) instead of purchasing it.
6. Emphasize/Prove Usability.
All the cost savings, budget gyrations, and strategizing in the world won’t help if you can’t assure senior management that the ECM technology you’re proposing will actually be used. Emphasize that the technology will expedite your current processes without disrupting them, and highlight integration with existing (or proposed) line of business software systems. Both of these factors are vital if your company is to realize a positive ROI as quickly as possible. Again, ask your ECM vendors for any white papers or case histories that will help prove these points.
7. Do a Little Research into What has Worked at Your Company in the Past.
Review any major IT projects that have been approved or turned down in the last few years. Are there any aspects of the successful initiatives you can emulate with your case? Do the unsuccessful cases have common pitfalls you can avoid? Everyone has pet peeves and things he or she really likes. Your senior managers are no different. Don’t be afraid (or too proud) to emulate a strategy that has worked before and, of course, steer clear of what hasn’t.
8. Present Your Case Clearly.
Resist the temptation to put too much detail in your presentation. Describe your methodology for projected cost savings and benefits, and broadly cover the functional and technical aspects of the solution you propose. But don’t go into the minutiae in spreadsheets or charts. Your audience could end up losing sight of the real, big-picture benefits, and you may find yourself answering questions about details that have little to do with the overall strategic purpose of your initiative.
Offer senior management enough details and substance so they can clearly see the business benefits of ECM, the approximate costs, and a high-level view of the technology to make it work. Save the details for your written leave behind, and be prepared for any questions they might ask. Ask the ECM vendors you’re talking with to help you build your case. They should be willing and able to partner with you to make your ECM project a success from start to finish.