How Saa S Is Reinventing Document Management

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How SoftwareHow Software--asas--aa--Service (Service (SaaSSaaS) is ) is Reinventing Document ManagementReinventing Document Management

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Bryant Duhon – Editor, AIIM EDOC Magazine

Rebecca Wettemann – Vice President, Research, Nucleus Research

Chris Ryan – Vice President Marketing, SpringCM

AIIM Presents:AIIM Presents:

How SoftwareHow Software--asas--aa--Service (Service (SaaSSaaS) is ) is Reinventing Document ManagementReinventing Document Management


About AIIMAbout AIIMAIIM is the international industry association connecting users and suppliers of enterprise content management (ECM) technologies - the tools and methods used to capture, manage, store, preserve, and deliver content in support of business processes. For more than 60 years, AIIM has been a neutral and unbiased source for education and industry information, standards, advocacy, and community.

Learn more about AIIM at www.aiim.org.


• Enterprise-class content management solution launched in 2005• Delivered only as SaaS (software as a service) on-demand model• Integrated SaaS platform includes capture, document management, workflow,

collaboration and delivery• 125 customers in industries as varied as finance, technology, manufacturing,

consumer products, telecommunications, healthcare and government• Over 100 years of combined content management experience on the management

team• Sold both direct and through reseller partners• Partnerships with:

– Platform: Salesforce.com, WebEx, Microsoft– Capture: Fujitsu, Kofax– Resellers: Service bureaus, EDM /IT/Mgmt consultancies, VARs

Who is Who is SpringCMSpringCM??


WhoWho’’s Using s Using SaaSSaaS ApplicationsApplications

Human Resources: Uses a SaaS solution for managing HR and performance data on 85,000 employees. Goal is to make employees more productive and increase customer satisfaction.

Contract lifecycle management collaborate, share best practices, and streamline contract negotiations and approval prioritize deals according to potential revenue

Compliance and collaboration: 1.2 million documents centralized, managed and shared by 2000 employees at 36 locations – and efficiently centralize, manage, and share safety data among all locations and customers

Training: material creation, review, management, access, and performance monitoring.


Other Uses for Other Uses for SaaSSaaS--Based ECMBased ECM

• Accounting – financial stmt; tax acct preparation

• Architecture – project management• Claims processing • Construction – change-order

management • Contract management• Customer support• Employee on-boarding• Engagement management• Engineering• Exceptions processing

• Field service mgmt• Human resources• Insurance processing • Invoice processing (accounts payable)• Logistics/POD• Marketing collateral creation and

approval• Mortgage processing• Proposal management• Sales tools creation and approval library• Training and credential management


SaaSSaaS Benefits Case 1: Managing Project Benefits Case 1: Managing Project Related DocumentsRelated Documents

• Make documents available to all (subject to proper permissions) anytime and anywhere• Make it easy to manage and store documents and files• Make it easy to find documents and files – usually the most current version• Securely share documents with clients and vendors without adding them to your

network?• Replace network file shares• Stop using email as a document management system


SaaSSaaS Benefits Case 2: Streamlining the Benefits Case 2: Streamlining the Review and Approval ProcessReview and Approval Process

• Reduce cycle times by creating an approval “assembly line”• Gain visibility into the approval process –

– Where has the document been?– Where is the document now?– How long has it been there?

• Notify approval stakeholders when critical path steps are completed• Manage exceptions –

– Reroute documents to alternate approval sources– Reassignment when approvers not available


Tough Questions to Ask a Tough Questions to Ask a SaaSSaaS ProviderProvider

• What has been your avg. outage time over the past 12 months?

• How often is new software released?

• How much domain experience do you have as a provider?

• Can I try the software for free?

• How much customization/configuration is required to make the solution

usable?

• How does your application scale?

• Explain how you will keep my data safe.

Platinum Sponsor: Gold Sponsors:

SAAS Content ManagementSAAS Content Management

Rebecca Wettemann, Vice PresidentNucleus Research

Platinum Sponsor: Gold Sponsor:

Evaluating Software as a Service for Content Management

Rebecca WettemannVice [email protected]

January 16, 2008

Nucleus Researchwww.NucleusResearch.com

Agenda

> The promise of content management

> Challenges with traditional content management

> The SAAS value proposition> Adoption trends> Building the business case> Best practices > Conclusion

About Nucleus Research

> A technology advisory firm delivering investigative analysis and advice.

> 1000 published ROI case studies

> 4.7M ROI tools distributed

> Research centers in Boston, Paris, and London

> The only firm registered with the National Association of State Boards of AccountancyRegistration #108024

The promise of content management

> Uniting the world through content …> Managing content and business processes to

improve the way decisions are made …> Making the Web a place where people can

connect with you anywhere, any time, on any device …

> Bringing control to unstructured content, reducing risks associated with information discovery and information loss …

The challenges of traditional content management

> The average project takes 11 months to deploy

> 30 percent of projects are not delivered on schedule

> Average initial license cost is $619,524

> Average initial hardware investment is $816,222

> Average initial consulting and training investment is 112% of initial license cost

Source: D9, Benchmark Study: Document Management, 2003

Content management today

Two out of three employees suffer from information overload!

Source: G75, Benchmarking Content Management: Desktop Search is not the Answer, October 2006

Too many haystacks

>Mergers and acquisitions>Departmental efforts>Shared files and folders = reduplication

One of every two employees searches more than five document repositories to find the information they need.

Source: G75, Benchmarking Content Management: Desktop Search is not the Answer, October 2006

Enter SAAS content management …

SAAS Characteristics

Physical> Hosted by remote provider> Accessed via Web browser> Supported on a multitenant basis> Frequent nondisruptive upgrades and improvements

Deployment> Low initial configuration time and cost> Low ramp-up time

Cost> Little initial cost> Low ongoing cost> Flexibility to add / reduce users over time

The advantages of SAAS delivery

> Rapid deployment> Low initial and ongoing license cost> Low initial consulting cost> Low training costs> Flexibility to change and

reconfigure as needed> Ongoing innovation> Support for remote users

SAAS Adoption trends

> More than 51 percent of companies have adopted a SAAS application

> One in 20 companies have adopted SAAS content management; 1 in 8 are considering

> Key motivations for adoption:> Rapid implementation (25%)> Ease of use (20%)> Low total cost of ownership (9%)

Source: Benchmark Research: On Demand, Nucleus Research 2007

SAAS Content Management Use Cases

> Streamline cross-company processes (AP, AR, invoicing)

> Provide access to partners across the supply chain

> Eliminate or reduce paper> Provide broader access to

employee information

SAAS Content Management Benefits

> Direct> Reduced paper and storage> Reduced courier and mailing costs> Reduced or avoided IT costs

> Indirect> Increased productivity> Increased flexibility> Support for growth> Increased profitability

Benefits of Content Management

Can you identify the areas that deliver maximum benefit?

Content management:

Benefit?

01020304050607080

90

Paper Searching

Building the business case …

Compare Traditional to SAAS TCO

Initial and ongoing On Premise costs

Initial and ongoing On Demand costs

Cost comparison

Standard ROI process

FinancialResults

Identify

- Top areas of real benefit

- Impact to company/group

- Stakeholders

Quantify

- Measure benefit areas

- Confirm values- Survey- Direct observation- Estimate

- Get benefit buy-in

Assess

- Calculate Metrics

- Reconfirm values

- Perform sensitivity analysis

- Assess expected case/worst case

The 5 Key factors of an ROI assessment

> Breadth“How many people will the application affect?”

> Repeatability“How many times a day will they use it?”

> Cost“Is this a costly task?”

> Collaboration“Will employees need to collaborate?”

> Knowledge“Can I reuse the information I create?”

Factor 1 - Breadth

Does it impact a lot of people, or only a few?

The greater the breadth of the application, the higher the potential return.

Factor 2 - Repeatability

The greater the repeatability of the application, the higher the potential return.

Will the application be used frequently or infrequently?

Factor 3 - Cost

Is this a costly or relatively inexpensive task?

The greater the cost of the task, or the greater the benefit, the higher the potential return.

Factor 4 - Collaboration

Does this task involve collaboration among groups?

The greater the collaboration component of the task, the higher the potential return.

Factor 5 - Knowledge

Will this task involve management of key information?

The greater the use of knowledge management the higher the potential return.

Short finance class…

Toolbox used to measure the value of technology:

> Net Present Value

> Payback Period

> Return on Investment

> IRR

> TCO

Payback Period

PaybackThe time period needed before net savings equal initial cost.

Excellent measure of riskShould be the key measurement!

Savings

Costs

Payback Period

Time

Payback Period

> Serves as an excellent measure of risk and a necessary companion to the ROI metric

> Pros> Provides initial screening and supplemental information to an

ROI analysis> Useful for preliminary risk assessment> Quantifies a project’s deployment flexibility

> Cons> Neglects all net cash flows after the payback period which may

contribute to a positive ROI

Return On Investment

ROIThe average total savings over 3 years divided by the cost.

Nucleus recommends a three year horizon but use a time period consistent with your organization’s standards.

(Year 1, Year 2, Year 3) / 3

Initial CostROI =

Return On Investment

> ROI is the ultimate litmus test; all other metrics should be considered supplemental

> Pros> ROI quantifies all possible costs and benefits> Percentage metrics can be easily compared to the cost

of capital, other projects, or a simple bank CD

> Cons> ROI can only measure internal performance, not how

one company’s investments compare to another’s

Best practices

Selection> Check references> Ask about backup and underlying architecture> Ask how you can get your data back

Deployment> Build a business case> Let the business case drive the deployment> Don’t ignore training and change management> Gauge best opportunities for a pilot (breadth,

repeatability)> Evaluate and evolve

Summary

> Content management as a service delivers ROI with lower cost and risk than traditional ECM.

> You still need a business case to be most successful.

> Gauge the opportunity (breadth and repeatability?).

> Don’t forget indirect benefits like productivity.

> Payback is an indicator of risk and flexibility.> The shorter the payback the greater the flexibility> Buy and discard option

> Take advantage of SAAS flexibility to leverage more value

Resources

Nucleus Research Web site:www.NucleusResearch.com

Nucleus Research Microsoft ROI tools, case studies, and reports:www.msftroi.com

Nucleus Research knowledge center> Tutorial> B20 – ROI Quick Reference Guide> A11 – Managing Payback and Risk> A10 – Maximizing ROI> A21 – The Strengths and Weaknesses of TCO> A4 – Human Factors Impact Application Value


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www.springcm.comwww.springcm.com

Thank you!

How Saa S Is Reinventing Document Management

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