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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]
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