Delivering a Return on Investment That Wins - Phillip Jones

7/28/2019 Delivering a Return on Investment That Wins - Phillip Jones

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Delivering A Return On Investment That

WinsPhillip J ones, Vice President


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Reality

Budgets are often not in place

Departments often compete for limited discretionary funds

Customers can find money if they really want to

The best ROI wins

What area of the business will this serve?

Is it targeting a critical objective?

Who is the person presenting it?

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Reality

82% of projects over $50,000 require an ROI

Dont hope that your project is one of the 18%!

Customers often have a minimum threshold what is it?

Does your customer have the time and the skills to do the ROI?

Will they let you participate in their process?

Will they let you review their results?

Do you have the skills to do this yourself?

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Reality

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The mostcredible ROI wins,NOT the most incredible.


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What To Use

Direct observation

Customer Data (Historic Samples)

Customer Estimates

Surveys

Case studies

Benchmark / Industry Analyst Data

Our Estimates

Credible

Incredible


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Foundational Concepts


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What is An ROI

The ratio of the average savings (of the first 3 years) to the initial

cost, expressed as a percentage.

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X 100

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

Init ial CostX 100

($200k + $200k + $200k) / 3

$500kX 100

($600k) / 3

$500kX 100

$200k

$500k

40%

X 100

($900k) / 3

$500kX 100

$300k

$500k

60%

X 100

($200k + $300k + $400k) / 3

$500k


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Payback Period

The time required for net savings to return the initial cost,

typically expressed in months.

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Savings

Costs

Payback Period

Time


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Gathering Data


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Positioning Your Solution Departmental Staff

Conduct a walk through of the target business area

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Mapping Organizational Pains to Goals

Standardize Global Processes and Systems

Improve Business Agility and Flexibility

Improve Underlying Profitability

Executive Strategic Objectives

Increase Revenue

Drive Growth In Emerging Markets

Operational Goals

Departmental Needs

Improve Quality

Exceed Service Standards

Leverage Best Practices

Optimize Operations

Expand Self-Service Options

Reduce Manual Tasks

Minimize Errors

Raise Productivity

Real-time Tracking of Every Case

Faster Response to Customer Enquiries

Simplify Processes


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? Labor

Manual tasks

Logistics

Latency, movement, transportation

Liability

Anything that can go wrong

Where To Look

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Where To Look : Labor

Sorting, Separating and Identifying

Data Keyed From Documents and Image (Keystrokes)

Duplication / Multiplication of Effort

Photocopying

Customer Interactions

Handling exceptions

Batch preparation

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Documents Data L3

Labor


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Where To Look : Logistics

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Shipping / transportation of documents

On-site storage of documents

Off-site storage of documents

Filing costs

Retrieval times

Retrieval costs

Data Movement


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Where To Look : Liability

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Lost / Misplaced Documents

Insecure Data / Documents

Compliance Issues

Exception Handling

Customer Satisfaction

What Could Go Wrong? L3

Liability


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Calculate Value

Quantify The Opportunity


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ROI Calculator

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Fill in the white cells!


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ROI Calculator

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Enter data in the white cells!Calculations are shadedResults are highlighted


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ROI Calculator

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Figures brought forward

J ust enter the solution costs


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Calculating ROI

3 Year ROI Formula

(Savings Yr1 + Savings Yr2 + Savings Yr3) / 3

Initial Cost

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X 100

Payback & ROI


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Calculate: Labor

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Activity Savings Branches Total

Doc Prep / Sort $48,000 1 (central) $48,000

Classification $12,000 1 (central) $12,000

Manual Data Entry $60,000 1 (central) $60,000

Total: $120,000

Documents DataEliminate

Reduce

Reduce

Eliminate

$480,000

Copying & Filing $3,600 100 $360,000

$480,000

L3

Labor


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Calculate: Logistics

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Eliminate

Reduce

Eliminate

Activity Savings Branches Total

Shipping $3,000 100 $300,000

Storage - $468,000

Separator Sheets $50,000

Photocopies $96,000

File Folders $20,000

Total: $934,000

Data Movement

$934,000

Reduce

Eliminate

L3

Logistics


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Calculate: Liability

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What Could Go Wrong?Activity Savings Branches Total

Search / Retrieve $4,000 100 $400,000

Reproduce Docs $70 100 $7,000

Customer Inquiries $250 100 $25,000

Total: $390,000

$432,000

Eliminate

Eliminate

Reduce

L3

Liability


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Payback & ROI

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$1,846,000Saved Annually

Payback in

5 Months


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What If The ROI Isnt That Good?

Check all your costs

Add more document types

Include more extraction fields

Automate more activities

Incorporate more processes

Add other capabilities

Extend to other departments

Try to get credit for soft benefits

Replace competitive solutions

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Thank you.

Phillip J onesVice President, Field Enablement

Phone: +1-949-375-3523

Email: [email protected]

Delivering a Return on Investment That Wins - Phillip Jones

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