To measure the return on investment (ROI) of an Document Management Solution (DMS - ECM) solution, you can take the following steps:
👨💻 Identify Upfront Costs: This includes costs to purchase or set up the DMS solution, such as software licenses, hardware, implementation services, staff training, maintenance , accommodation...
👨💻 Quantify Cost Savings: Evaluate the savings achieved through the ECM solution compared to traditional document management methods. This can include reducing costs related to printing, handling, physical storage, document retrieval, human error, validation times...
👨💻 Evaluate efficiencies: Measure improvements in productivity and operational efficiency with ECM solution. This can include indicators such as the time saved in the search for documents, the processing time of requests or transactions, the reduction of response times to customers...
👨💻 Estimate qualitative benefits: Consider the intangible or qualitative benefits of the EDM solution, such as improved collaboration, regulatory compliance, data security, quality of customer service, employee satisfaction...
👨💻 Calculate ROI: To calculate ROI, use the following formula: (Benefits - Costs) / Costs x 100. Benefits can include cost savings and estimated efficiencies, while costs include costs initial and annual maintenance costs.
👨💻 Analyze investment payback time: Calculate the time needed to recover the initial investment by dividing the initial costs by the annual savings or profits generated by the EDM solution.
It is important to note that the calculation of the ROI of ECM can vary according to the specificities of each organization and its objectives.