Every decision for your organization requires you to take a look at its potential ROI (Return on Investment), even small investments can make a big impact on your organization. Many organizations don’t see the initial ROI when they implement an Enterprise Content Management (ECM) solution.
There are plenty of benefits of ECM, such as simplifying your existing paper-based processes, protecting your data, and reducing your reliance on physical files. Beyond clear day-to-day benefits, you can further improve its ROI by using your ECM as a stepping stone towards complete automation.
More than just a one-point solution
If you have a bucket with multiple holes, plugging just one of the leaks won’t stop the water from getting out. Just like plugging one hole won’t stop a leak, implementing a single point solution won’t solve all of your organization’s problems. While single pain-point solutions are effective at solving specific problems, they may overlook the cause of the issue.
By investing in multiple single-point solutions, organizations end up spending more money and wasting time. When they embrace complete transformation of their processes, they can eliminate the pitfalls that single-point solutions may have. While the concept of “digital transformation” can seem daunting to those worried about the initial upfront investment, the decision can be made easier by educating yourself on the specific benefits of a solution as well as how it can integrate with your existing business infrastructure.
DocStar, Mosaic’s software partner, recently published a white paper in partnership with Levvel Research titled “Tackling AP Automation with a Holistic Document Management Approach.” This report primarily focuses on organizations described as middle-market can directly benefit from a holistic approach to ECM.
In it, they identify middle-market as companies with $2 billion to $100 billion in annual revenue, and specifically looked at companies within this revenue range in North America.
They highlight that an approach to establish ECM ROI is by utilizing it on top of existing technology efforts, specifically within the Accounts Payable and Invoice Management space, but also within Human Resources, Contract Management, Sales Order Processing, and Quality Control. By integrating a cloud-based and scaleable ECM, the ROI greatly improves. This also means there’s a longer-term benefit to your organization.
Embracing Digital Transformation
The report highlights AP Automation as the entry point to full-scale digital transformation as described in 3 points highlighted in the report:
ECM drives ROI by expanding the value of a single technology implementation. Organizations seeking to maximize the ROI of an AP automation solution should aim for a best-in-class solution targeting a particular pain point, but that can also be applied beyond that space as resources grow. This enables an organization to increase the long-term value of a single technology investment and enables scalable digital transformation for companies determined to remain competitive.
ECM drives ROI by empowering departments and supporting processes across the organization. With a strong ECM platform, one solution can transform many functions. For example, advanced document management and workflow features can automate AP processes as well as HR onboarding, training, and form management. ECM can also support other departments, such as Accounts Receivable, Procurement, Expense Reporting, Sales, Customer Support, and the C-suite, as the platform is applicable to multiple business functions.
ECM drives ROI by comprehensively improving collaboration and efficiency and reducing costs. ECM helps reduce paper volume, manual data entry, and time-consuming manual workflows. It also facilitates more strategic allocation of back-office labor. By providing secure digital storage, ECM reduces the pressure on an organization’s IT department, which further contributes to better use of company resources and higher ROI. ECM also improves overall communication and streamlines back-office processes. ECM leads to savings from optimized labor costs, strategic staff reallocation, and a reduced need for outsourcing various back-office functions.
Beyond those three key factors, there are also additional trends to make note of:
Invoice receipt method: how does your organization receive invoices? Physical? Digital? A mix of the two? Do they come in the mail or over email?
Invoice data entry methods: how does data get input from your invoice to your ERP?
Invoice approval time: how long does it take from the receipt of an invoice to the final approval? A day? A week?
AP pain points: where do you see room for improvement within your AP process? What is slowing down employees in their process?
Barriers to AP automation adoption: what is preventing your organization from moving forward with implementing an automation solution? Timing? Cost? Understanding your barriers can better help prepare for selecting your solution.
Net benefits of AP automation: Understanding your organization’s specific benefits of AP automation can help you gain insight into exactly how a solution will work for you.
By gaining a stronger understanding of your organizational needs, as well as the benefits of ECM and automation, you can make an informed decision about a solution for your organization.
Implementing a complete system overhaul can seem overwhelming, but with the right resources and tools you can start seeing benefits almost immediately.