Studies disclose that in most corporate environments, workers spend up to 40% of their time trying to locate documents needed in their daily routines. Time spent searching for and re-creating documents that already exist and shuffling through unstructured information can account for a huge amount of wasted time. As a result, documents are a tactical liability if they fail to perform optimally and cause inefficiencies in the business processes they support. Clearly, the tactical implications of document mismanagement can be significant.
Stacks of statistics from various sources point to the unwavering cost of creating, maintaining, and retrieving documents to corporate America – estimated to reach as much as 15% of annual revenue.
Effective document management can dramatically lower these expenses in terms of reducing reliance on paper and printing and alleviating the administrative costs associated with filing, retrieving, and storing documents.
Regulatory compliance is a growing concern in today’s business environment. A rising number of regulations from the state, federal, and industry levels have resulted in increasingly severe risks and penalties for non-compliance. Businesses that fail to address these risks are subject to fines, lawsuits, and loss of market share. The consequences of non-compliance can be significant and can result in imprisonment for the most egregious offenders. Changes in legislation such as Basel II and Sarbanes-Oxley have identified the critical nature of storing data in an environment that is safe from potentially damaging influences of all types.
The financial and records management industries both predict that the legislation will become increasingly demanding and complex. More importantly, security has become of paramount importance, guaranteeing that your records are safe from identity theft, data corruption, and information contamination.
According to a Cooper’s and Lybrand study, a sample office that generates 200 documents in a week will lose at least fifteen of them. To further illustrate, contemporary analysis indicates that each one of your misfiled records will cost your organization a minimum of $100 US to search, locate, and/or reproduce. An efficient document management system can reduce these costs by removing files that are no longer needed but cannot be discarded.