DocPro implementation: ROI calculation
DocPro implementation: ROI calculationApril 5, 2022 Comments Off on DocPro implementation: ROI calculation
The main objective of DocPro is to drive towards a paper-less office. Creating, storing, retrieval and management of paper documents results in economic inefficiencies due to the following reasons:
The costs involved in printing physical documents, storage, retrieval, searching for the documents, risks involved due to misplacement/loss is substantial. Implementing DocPro saves the costs associated with physical documents.
Inefficiencies involved in business processes with physical documents are totally avoided with DocPro. DocPro allows instantaneous search and retrieval of digital documents.
Storage of physical documents take up a lot of real-estate in all organizations. This real estate ties up a lot of capital which can be used for more productive purposes.
By ensuring that documents are available at the touch of a button, DocPro ensures that lot of productive time lost in searching and bringing the physical document to the users is saved. DocPro also allows parallel processing of documents that cannot be achieved with physical documents because physical documents will have to go through a sequential process as the physical document cannot be at two or more places at the same time. For digital documents no such restrictions are applicable.
Risk of misplacement or loss
DocPro has a strong access control and all documents are encrypted which provides a very strong security for all the documents. Physical documents can fall in wrong hands and can be misplaced. DocPro provides a strong audit trail which keeps track of all access that has been done on the documents as well as data. With physical documents it is difficult to know who has accessed the document and when.
DocPro allows you take backups and put in pace a proper disaster recovery system. If physical documents are lost due to a disaster like fire or floods, it is impossible to recover the documents. While electronic documents stored in DocPro can always be recovered if proper disaster recovery systems are in place.
Estimate of economic impact:
Typically, an employee spends at least 15 minutes in a day for searching and handling physical documents.
- A minimum per month salary of INR 25,000/- for the employee.
- 25 working days in a month and 8 hours per day, the per minute cost for an employee is INR. 2.083. [ 25000 ÷ (25 x 8 x 60) ]
Cost of 15 minutes is INR. 31.25 [15 x 2.083].
Thus, per day cost for handling physical documents is INR. 31.25.
The annual cost per employee spent for searching, handling, processing, filing and storing physical documents is INR 9,375/- [ 31.25 x 25 x 12 ].
Thus, the savings are INR. 9,375/- per annum per employee.
For organizations that have 500 employees the savings are INR 46,87,500/-.
The above calculation is based on the minimum cost of the employee. As senior employees also spend considerable time in handling physical documents the costs are substantial.
The return on investment based on only employee costs is within one year for DocPro.
If we consider all other costs mentioned above like real estate for storage, printing costs, productivity loss, risks of misplacement/loss and risks associated with disasters then the ROI period reduces further to less than 6 months.
The bottom line is it makes immense economic sense to implement DocPro in your organization.