Document imaging is a document management tool which can increase your productivity, reduce your document management costs, provide enhanced document security and assist with compliancy issues. Because document imaging can do so much, yet is so simple to learn and use, you may be tempted to go “on-line” with a system without first developing a plan. Don’t
Often tendency is to call in several document imaging vendors and have each of them tell you what they think you need. After a lengthy process of each vendor gathering information and presenting a proposal you are not ready to make a decision because:
* The cost is more than you anticipated and there does not seem to be an ROI to justify system. * The project is overwhelming and your resources to get it done are very thin.
You can eliminate above scenario if you gather some infromationa and put together a plan. Before you contact any vendors you need to resolve a number of issues. This article addresses these issues in form of questions to be answered. Some of questions will not be relevant to your situation.
The first issues concern funding project. If funds are not going to be available even if project looks good, there is no need to proceed.
1. Return on Investment (ROI).
· What is company policy requiring an ROI?
· What is standard payback period?
2. Does this project need to be budgeted? 3. Which department’s budget will fund project? 4. Does department that will fund project have total buy in? 5. What are preconceived costs of project? 6. Could price tag on a system be too high even if it ROI meets company standards. 7. At what level can project be approved? 8. Do you have infrastructure to support a document imaging system? 1. If not will that cost be included in cost of imaging system
The following is a commentary on how companies build their ROI. Accounting is where most companies find best ROI.
A document imaging system in accounts payable will have good ROI if some or all of these conditions exist:
1. There are 5 or more payables clerks 2. They are manually matching checks 3. Invoices have to be approved after they are received. 4. Receivers are being printed and sent to accounting. 5. Some payables become receivables. 6. You process hundreds of invoices every week from same vendor(s)
Much of processing in accounts payable can be automated to some degree by using document imaging technology. When you invite consultants or vendors in you need to have an idea what you expect to accomplish to be sure that they are going in right direction. Evaluate process and determine if document imaging will provide a good ROI.
Accounts receivable is best ROI for many companies. Good customer service and reducing outstanding receivables days is a challenge for any organization. Document imaging can be a tremendous help in improving customer service, reducing receivables days as well as reducing bad debt because: