Financial Analyses

Can I Afford (Not To Have) A Paperless ECM Solution:

Financial Analyses will likely show you can't afford not to implement a paperless Enterprise Content Management (ECM) solution.  Keep in mind that a digital image system is not an all or nothing proposition.  Paperless systems are inherently modular and can be implemented in phases.

The most relevant questions are how many times will you pay for one (through unnecessary paper-handling costs) before adopting it, and how how far will you fall behind your competitors in service and profit margins before doing so?

Do your business a favor -- take these simple steps to see what you could be saving financially from a digital image system.

Calculate your own payback and determine your monthly cash flow savings under our 100% financing alternatives.  Then calculate your ROI -- likely more than for any other investment you could make.  Contact us if you need help with any of these calculations after reading the additional detailed information below.

The financial results should demonstrate you can't afford not to make this critical investment, which will quickly pay for itself.

Payback Analysis:

A payback analysis shows how long it takes to recover an investment -- i.e., the time relationship between system cost and the resulting marginal increase in net income.  With a paperless ECM system, the marginal net income results from decreased document handling costs and increased revenue efficiency due to the inherent differences between paper and digital image systems:  Images are cheaper to handle, and they create increased revenue generation opportunities.  See our ECM Primer.

Revenue increases will result as you learn how to impress your customers and otherwise take advantage of your digital ECM system.  This is relatively subtle compared to the direct paper cost-savings component, which is itself typically sufficient to produce a strong payback result.

The potential cost savings from a paperless ECM system will depend on a number of variables, including the type of business (e.g., service, manufacturing, retail, etc.), size of staff, document volume and delivery requirements among staff and customers or clients, and compliance requirements imposed by government agencies, insurers or industry.

Typically, the greater the volume of document capture, management, storage, preservation and delivery transactions, the greater the potential cost savings from (and cost of) a paperless system.  The extent to which paper may be totally eliminated rather than maintained in parallel will also impact the potential cost savings.  See our ECM Primer for relevant factors.

Follow these simple steps to calculate your own paperless system payback period based on typical cost-saving components:

1. Use the attached Paper Cost Template to determine your annual paperless system savings.  The Excel® version is preloaded with the formulas; the PDF® version is for those who do not use Excel.

2. Request a Proposal for your own paperless system to get an estimate of the investment involved.

3. Divide your paperless system investment estimate by your annual cost savings to determine your payback period.  In most cases, this will be surprisingly short.

At the end of your payback period, your paperless system will have paid for itself.  How many times will you pay the price of a paperless image system through unnecessary paper costs before getting one?

Cash Flow Analysis:

Another way to analyze a digital ECM system is on a monthly cash flow basis.  In most cases, a financed digital ECM system will produce positive cash flow for your business from Day-1.

We offer 100% financing for paperless systems to qualified businesses, or you can merely use your existing lender if you would prefer.  Compare your paperless monthly system payment to your monthly paper cost savings from the Paper Cost Template. Typically, the amortized monthly cost of the paperless system will be a fraction of what you are already spending to drown in paper -- it can literally pay for itself without any initial investment outlay!

ROI Calculations:

The rapid payback period and positive cash flow from a digital image system will translate into a high ROI, perhaps higher than anything else you can do.  Calculate the ROI on your own system and see how it stacks up to your other investment alternatives.

Excel users can plug their numbers into the NPV and IRR formulas in the attached Excel® ROI Formula Sheet.  Or Contact us and we will be glad to help you with these calculations.