You may start by asking yourself the following simple questions. These are 10 questions for which you may record this data in an excel for the ease of doing calculations.
- The number of people in your organisation who handle paper documents?
- The number of times does each person retrieve a paper document daily?
- What is the average time taken to retrieve a paper document? (minutes)
- What is the time taken to file a paper document? (minutes)
- The volume of new documents generated every day?
- The number of paper copies of each document done every day?
- Calculate an average hourly salary of the people who handle these documents?
- Number of cabinets for storage that you have?
- The average rental rate of your office?
- What is the total spend on filing supplies per month? (Folders, stapler pins, box files etc.)
Once you have the answers to these questions, you will be in a position to calculate the time spent on searching a particular document each day. Multiply this time by the average hourly salary to get the amount of money that gets spent on searching a particular document every day.
The total spent is much more than what we have calculated. Take into consideration the loss of business or loss of customer trust because of lost documents.
Initial investment on a cloud based or on-premises document management software might seem costly, but when compared to total spend on physical storage, the cost and benefits are immense.
There are a number of benefits of using a document management solution apart from saving cost and time.
- Your documents are safe in digital form and cannot be destroyed by fire, pests and other physical damages.
- Its becomes easy to take backup of the entire data when stored on cloud. There is no limit to creating copies of each document as required.
- Even if a document is misfiled, it can be found easily. Each document becomes more searchable due to Optical Character Recognition and meta tags linked to the document. A paper if misfiled can never be traced.
- Saving documents digitally also allows unauthorized access of important documents. You may grant access to only relevant stakeholders.
- Filling out paper forms can be tedious and prone to human error. Using electronic forms allows data to be pre-filled eliminating these types of errors.
- Documents if stored in physical form are prone to theft whereas documents in electronic form gets encrypted and hence safe.
- Ease of collaboration is yet another benefit that you get when your documents are online. Organisations with offices at multiple locations spend a lot of money transferring papers.