AIIM White Paper Jump Start your Paper Free Journey

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The business case for kicking out paper is overwhelming - it takes up space, slows processes down, creates costs and limits flexibility. AIIM's research has shown that most organizations need strong leadership to steer the business towards paper-free workflows. This paper reviews how paper clogs up business processes and the potential benefits of going paper-free.

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  • 1. Jump-start your paper-free journey AIIM White Paper Sponsored by

2. Jump-startyourpaper-freejourney 1 AIIM 2013 www.aiim.org / Swiss Post Solutions AG 2013 www.swisspostsolutions.com About the White Paper As the non-profit association dedicated to nurturing, growing and supporting the user and supplier communities of information management Systems and services, AIIM is proud to provide this research at no charge. In this way the entire community can take full advantage of the education thought-leadership and direction provided by our work. Our objective is to present the wisdom of the crowds based on our 80,000-strong community. We are happy to extend free use of the materials in this report to end-user companies and to independent consultants, but not to suppliers of Information Management, products and services, other than Swiss Post and its subsidiaries and partners. Any use of this material must carry the attribution AIIM 2013 www.aiim. org / Swiss Post Solutions 2013 www.swisspostsolutions.com Rather than redistribute a copy of this report to your colleagues, we would prefer that you direct them to www. aiim.org/research for a free download of their own. Our ability to deliver such high-quality research is made possible by the financial support of our underwriting sponsor, without whom we would have to return to a paid subscription model. For that, we hope you will join us in thanking our underwriter for this support: Swiss Post Solutions AG Pfingstweidstrasse 60b 8080 Zrich Switzerland Email: solutions@swisspost.com Web: www.swisspostsolutions.com Process used and survey demographics The survey results quoted in this report are taken from a survey carried out between May 10, and June 26, 2013 with 562 responses from individual members of the AIIM community surveyed using a Web- based tool. Invitations to take the survey were sent via email to a selection of AIIMs 70,000 registered individuals worldwide. They cover a representative spread of industry and government sectors. Results from organizations of less than 10 employees and suppliers of ECM products and services have not been included, bringing the total respondents to 455. About AIIM AIIM has been an advocate and supporter of information professionals for nearly 70 years. The association mission is to ensure that information professionals understand the current and future challenges of managing information assets in an era of social, mobile, cloud and big data. AIIM builds on a strong heritage of research and member service. Today, AIIM is a global, non-profit organization that provides independent research, education and certification programs to information professionals. AIIM represents the entire information management community: practitioners, technology suppliers, integrators and consultants. AIIM runs a series of training programs, including the ECM Master course. www.aiim.org/training/ECM-Enterprise-Content- Management-Course About the author Nick Geddes is a senior analyst within the AIIM Market Intelligence Division. He has over 15 years marketing experience in a variety of industries. Nick is also a Six Sigma Blackbelt with 10 years experience working on business improvement projects. He has a BSc in Information Technology, an MSc in Marketing and is a member of the CIM in the UK. 2013 2013 AIIM Swiss Post Solutions AG 1100 Wayne Avenue, Suite 1100 Pfingstweidstrasse 60b, Silver Spring, MD 20910 8080 Zrich, Switzerland (+1) 301 587-8202 solutions@swisspost.com www.aiim.org www.swisspostsolutions.com 3. Jump-startyourpaper-freejourney 2 AIIM 2013 www.aiim.org / Swiss Post Solutions AG 2013 www.swisspostsolutions.com About the White Paper: About the White Paper......................................................................................................................... 1 Process used and survey demographics............................................................................................... 1 About AIIM.............................................................................................................................................. 1 About the author..................................................................................................................................... 1 Introduction: Introduction...........................................................................................................................................3 Kicking out paper: Kicking out Paper.................................................................................................................................3 Issues and blocks: Issues and blocks................................................................................................................................5 Getting outside help: Getting outside help.............................................................................................................................6 Positioned for the future: Positioned for the future......................................................................................................................8 Conclusion and Recommendations: Conclusion and Recommendations................................................................................................... 9 Recommendations................................................................................................................................. 9 References............................................................................................................................................. 9 Underwritten in part by: Swiss Post Solutions.............................................................................................................................. 10 AIIM........................................................................................................................................................ 10 Table of Contents 4. Jump-startyourpaper-freejourney 3 AIIM 2013 www.aiim.org / Swiss Post Solutions AG 2013 www.swisspostsolutions.com Introduction The business case for kicking paper out of the organization is overwhelming it takes up space, slows things down, creates costs and limits flexibility. Despite this, AIIMs research1 has shown that most organizations need strong leadership to steer the business towards paper-free workflows. Lack of confidence for change often stems from assumed - or real - issues about paper-free working as it relates to specific industry segments. Sometimes its a case of not knowing where to start paper records, inbound documents, paper in the process, outbound printing. Some processes may be better candidates than others - what is the experience of other businesses in the sector? It may also be an expertise issue: the concepts of scanning, capture, and process workflow may be completely new both in technology terms, but also in business change management. Using outsourced services to achieve business change can overcome both inertia and a steep learning curve. An established outsource provider will bring experience from other similar businesses, including any compliance issues. The starting point for the project is likely to be a look at the current pain points in the business, as well as areas where paper-only communications are holding it back. Existing processes will be studied with objective recommendations as to which would be the best candidates for change. Document Process Outsourcers (DPOs) are likely to offer a range of options: upfront capture of inbound mail using the digital mailroom concept, the addition of multi-channel electronic communications, data capture and integration with in-house transactional systems, and the replacement of some print outputs with electronic content. Some may actually provide a substantial element of the core process itself. This paper will review how paper clogs up business processes and the potential benefits of going paper-free - as well as some of the challenges. In particular we will look at the factors that hold organizations back from taking the paper-free step. The paper will then discuss the pros and cons of outsourcing various document-oriented processes, including the need for both parties to fully understand the requirements and current processes, and to work together to deliver real business benefit and ongoing process development. Kicking out paper Paper is a problem for business: it is costly to process, difficult to manage, gets lost, cant be accessed remotely and takes up space lots of space. There are many other issues such as version control and finding the information you want, the list goes on. In the drive for business process excellence, removing the paper can be a major win in terms of process efficiency and improvement. AIIM research1 shows that paper is being reduced in 41% of organizations, although for 19% it is still increasing, suggesting it is something that needs to be closely monitored to ensure once a process has been redesigned to be paper free, it stays that way. Figure 1: What would you say are the three biggest issues caused by paper-based processes in your organization? (Max THREE) (N=447)1 0% 10% 20% 30% 40% 50% 60% Time spent re-keying data, searching for paper copies and ling Storage volume and outsource paper store costs Inability to monitor workow progress Lost paperwork or case les Compliance and audit issues Poor access to case or process documents for front-oce/call-desk sta Inability of sta to work from home or on the road Delays introduced by post, courier or mailroom Diculty of re-allocang or re-locang workloads 0% 20% 40% 60% 80% 5. Jump-startyourpaper-freejourney 4 AIIM 2013 www.aiim.org / Swiss Post Solutions AG 2013 www.swisspostsolutions.com There are many possible candidate processes for paper-free re-design. The first two processes that many organizations target for paper-free working are accounts payable, and the expense claim process. The accounts payable process can be lengthy and prone to error, with invoices traveling around an organization until they find a manager willing to sign them off for payment. In a paper-less system, with each manager regularly viewing their invoices awaiting approval and either accepting, rejecting or redirecting them, the process is much faster, easier to monitor, and removes a bottleneck in the finance department. In fact previous AIIM research has shown an average reduction in processing costs per invoice of 33% from automating the accounts payable process, with the top three benefits given by users as better transparency of the process, improved record keeping for audit trail, and faster payment turnaround. The expense claim process can also be an easy way to show how a paper free process can work across an organization. This can remove another common finance department bottleneck, with users completing an electronic expense claim form, scanning their receipts, and sending them electronically into the workflow for manager approval and payment and this is increasingly being used as a SaaS web application. Figure 2: Have you made any of the following processes capture-enabled or paper-free (N=272) Careful management will be important to retain the benefits of paper-free processes. It is critical that information is routed to the correct person and can be easily re-routed if an error has been made. In an approval process, decisions must be made in a timely manner and if not, escalated to the next-level approver. The workflow itself needs to be flexible, and able to deal with exceptions. On completion, the records archive will need to be updated in order to remain compliant. One of the ultimate goals of going paper-free is the electronic mail room. All incoming paper correspondence is scanned as it comes in and is identified and categorized, along with other formats such as faxes and e-forms (from the web or even from mobile devices). This correspondence then enters the relevant process and is directed to appropriate personnel for processing. This can seem a huge step for many organizations but with the appropriate technology and skills it can certainly be achieved. Moving paper forms and correspondence from physical paper to electronic as soon as possible in the process cuts out the mailing delays caused by to-and-fro requests between customer and back-office staff. It also provides the opportunity to recognize data from the forms, avoiding the need for re-keying, and if integrated with transactional systems, it allows automated matching to orders or customer records. In the AIIM Paper Wars1 report, we asked By how much do you think driving paper out of the process using scanning and capture, including digital mailroom and mobile capture, would improve or has improved the speed of response of your organization to customers, suppliers, citizens or staff, and would improve or has improved the productivity of your process staff. The answers indicate a startling potential for improved services and Time spent re-keying data, searching for paper copies and ling Storage volume and outsource paper store costs Inability to monitor workow progress Lost paperwork or case les Compliance and audit issues Poor access to case or process documents for front-oce/call-desk sta Inability of sta to work from home or on the road Delays introduced by post, courier or mailroom Diculty of re-allocang or re-locang workloads 0% 20% 40% 60% 80% Internal HR: expenses, mesheets, on-boarding, etc. Finance, accounts payable (invoices) Customer correspondence, help desk Specic line-of-business, forms-based, external Contracts, procurement, shared-services Other internal processes, e.g., approvals, quality, etc. Finance, accounts receivable (credit control) Case-based, claims, invesgaons, consultaons New applicaons, mortgages, members, accounts Logiscs, delivery, manifests, etc. Plant records, inspecons, engineering change 0% 10% 20% 30% 40% 50% Physical signatures on paper are obligatory Too much investment in scanning and capture needed Legal admissibility will be compromised The process workow will be too inexible for excepons Prefer to write notes and amendments onto paper Its a major change/jobs may be lost Captured data will not be accurate, leading to mistakes Scanned forms may not be easily readable Documents and forms will be less reliably accessible than with paper ling Cant take work or reference documents home, on the train or out on site 6. Jump-startyourpaper-freejourney 5 AIIM 2013 www.aiim.org / Swiss Post Solutions AG 2013 www.swisspostsolutions.com reduced costs and on the whole, those who are using these technologies indicated even higher benefit than those merely contemplating it. n The average improvement given for customer response times is 4x, rising to 4.6x for those with such systems. This is a dramatic leap in customer service, reducing weeks to days. n Respondents suggested an average of a 30% improvement in productivity by taking...