Better Information Management for Improved Productivity

In association with: Presented by:

Better Information Management for Improved Productivity, Even Across Time Zones

Presented April 27, 2011


About AIIM

AIIM is the community that provides education, research, and best practices to help organizations find, control, and optimize their information. As a neutral and unbiased source of information, AIIM serves the needs of

its members and the industry through the following activities:

Market Education Peer NetworkingProfessional Development Industry Advocacy

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AIIM Presents:

Peggy Winton – Vice President, AIIM

Nathaniel Palmer – Principal and Chief BPM Strategist, SRA Int’l

Michael Theis – Solution Development Representative, Iron Mountain

Better Information Management for Improved Productivity, Even Across Time Zones


Introducing our Featured Speaker

Nathaniel Palmer

Principal and Chief BPM Strategist, SRA Int’l

Executive Director, Workflow Management Coalition

Editor-in-Chief, BPM.com


5 exabytes of new informationgrowing at 30% annually

Print, film, magnetic, and optical storage media92% of the new information was stored on magnetic media, mostly in hard disks.5 exabytes = 500,000 Library of Congress print collections.

The United States produces about 40% of the world's new stored information

US is under 5% of world population) 33% of the world's new printed information50% of the information stored on magnetic media.

30% Growth Rate

0

500

1,000

1,500

2,000

2,500

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Source: Lyman, Peter and Hal R. Varian, "How Much Information”

“The summation of human experience is being expanded at a prodigious rate,

and the means we use for threading through the consequent maze to the

momentarily important item is the same as was used in the days of

square-rigged ships.”

This is what 30% annual growth

looks like.Doubles every

2.64 Years

Bush, V. “As we May Think,” The Atlantic Monthly, July 1945

Information Volumes


Source: Adapted from zur Muehlen, M. (2008) and Hackathorn, R. (2002)

BusinessValue

TimeData

LatencyAnalysisLatency

DecisionLatency

Reaction Time

Infrastructure Latency

Business-relevant Event occurs

Event-Related Information Found Analysis of

information Action taken

Value lost through latency

The Cost of Access Latency


Changing Information Physicality

Policy Data

Claim Data

Customer Data

Source: Delphi Group


The key evaluation criteria used during an analysis: Strategic Importance - how core should the process be to the business and Process Performance - how well is this process executed

Strategic ImportanceDifferentiation

Process Performance

Supply Chain

Demand Chain

Competitive Value

Innovation

• How well should the process differentiate the business from it’s competitors?

• How key is the process in supporting key elements of differentiation in the marketplace?• How pivotal is this process to the business

success?

• How important is the process in the overall execution of the Supply Chain?

• How does process directly impact the relationship with suppliers?

• How important is the process in the support of the Demand Chain?

• How important is process to customer satisfaction and loyalty?

• What is the relative competitive value created from the execution of this process?

• Can the process provide a competitive advantage?

• Does this process lend itself to innovative improvements?

• Can this process help drive or support innovation in the company?

Quality

Cost

Efficiency

Responsiveness

• How well is the process performed - using success metrics determined by our company?

• How well does the process support business goals?• Does this process spawn other issues/problems in related

processes?

• How much does it cost in resources, material, systems, and time to complete the process?

• How does this compare to internal and external common practices?

• Are costs just a cost of doing business vs inefficiency?

• Is the process executed in an efficient manner consistently?• Does this process involve redundant tasks?

• Are there practical improvements that are evident in the process?

• How well can the process respond to changes to your business internally (e.g. changing workforce) and externally

(e.g. managing customer needs)?

Knowledge Management

• How well is knowledge captured, stored, and shared within the process?

• How well is knowledge utilized by process executors?

ITInfrastructure

• How well is the IT component of the process executed? Are there bugs, need for workarounds?

• Is the IT infrastructure utilized to its full capability?Knowledge

Requirements• How critical is internal specific knowledge to the

process?• How specialized is this knowledge?

Prioritizing Process Improvement Candidates


Prioritizing Process Improvement Candidates


Start With Processes That Lack Rigid Definitionand Offer Broad-Reaching Exposure

Why hasn’t it already been addressed?

Seek Manual, Paper-Intense, Ad Hoc, InconsistencyHow many forms/documents are involved?

Ensure Substantial Value to Existing ObjectivesDo changes map directly tokey organizational objectives

Improvement Starts at Home:Picking the Right Internal Process


Common IM Project Pitfalls to Avoid

Failure to line up executive sponsorshipAvoid the path of least resistance

Caving in to history rather than focusing on the futureChange is necessary to optimization

Getting stuck in “analysis paralysis” Go with good enough and then fine tune from there

Focusing on “seconds saved” rather than building ROI around tangible business benefits


Today’s Information Management Reality

IM Offers Significant Payback Possibilities

Market Has Matured but Still in Early-Majority Stage

Everyone Is Still Learning (Few Invest in Education)

Deploy It & They Will Come….? Change Management!

Advanced Features Rarely Used Early in Deployment

Externalities Gaining on Internal Issues

Taxonomy & Info Architecture Key to Success

Like All IT Investments, IM Must Be Profitable


ROI Focus: IM Cost-Cutting Benefits

Increased Search & Retrieval Efficiency

Reduced Content Maintenance Costs

Lower Customer Transaction Costs

Reduced Rework & Manual Entry

Reduced Fine & Penalties

Reduced Infrastructure Costs

Reduced Paper Production & Shipping Costs

Reduced Printing & Distribution Costs


ROI Focus: IM Business Benefits

Risk Management & Regulatory Compliance

Faster Time-to-Market for Products & Services

Brand Management & Consistency

Improved Email Handling

Intellectual Property Management / Knowledge Management Increased Disaster Recovery SupportIncreased Customer SatisfactionFaster Response to Commercial OpportunitiesCompliance Audit, eDiscovery and Litigation Support


Examine a combination of Hard Dollar Benefits, realized as direct & measurable cost reductions; Soft Benefits, realized in terms of operational & enterprise options & opportunities; & Strategic or Operational Benefits

Hard Dollar Benefits - result in fewer dollars actually being spent, money that can be allocated elsewhere or saved entirely

Soft Benefits - yield bottom line improvement oroperational flexibility, but impact is challenging to quantify in dollars or to pinpoint in operations

Strategic or Operational Benefits - some IM impacts & benefits support strategic or operational goals that are corporate priorities & whose benefits are not tracked or quantified

Benefits Summary for Centralized IM


HARD DOLLAR BENEFITS

SOFT BENEFITS

STRATEGIC & OPERATIONAL BENEFITS

HIGH MED LOW IMPACT

1

1 Governance, Risk and Compliance

Unification of Communications

Enforcement of Corporate Policies

2

3

2 3

AB

C

E

DGI

H

L

J

K

Reduced Printing & Distribution Costs

Lower Customer Transaction Costs

Reduced Fine & Penalties

Reduced Document Processing Costs

Reduced Search Costs

Reduced Infrastructure Costs

A

B

C

E

D

Compliance Audit Support

eDiscovery and Litigation Support

Knowledge Management

Universal Document Index & Search

Disaster Recovery Support

Improved Email Handling

G

I

H

L

K

J

F

F

Benefits Summary for Centralized IM


IM Payback Best Practices: Pharmaceutical Example

Background

• Leading global pharmaceutical organization

• Geographically dispersed drug development teams

• Minimal sharing of information assets between groups

• Numerous departmental & decentralized respositories

• Significant duplication of efforts due to recent M&A activity

• Highly regulated environment



Goals • Decrease the amount of redundant work being

performed within the organization• Allow for geographically dispersed teams the

ability to collaborate online• Provide single point of access to all research

related materials• Decrease time spent on searching for required

information



Financial Highlights

• Capital Expenditure $847,622

• Payback in years 0.7 years

• ROI (3 years) 458%

• NPV (5 years) $5,851,128


Summary

Use ‘Quick Wins’ to Build Creditability & Win Sponsorship

Avoid the Path of Least Resistance -- Spend the Time Necessary to Develop a Visible and Measurable Business Case

Start By Focusing on “What” & “When” -- Not “Why” & “How”

Engage Stakeholders in Defining Their Roles in theProcess & to Reduce Resistance to Change

Focus On Defining Measurable Outcomes to SupportHigher Level Goals & Objectives

Look for Well Understood Use Cases to ValidateAssumptions & Model ‘Real World’ Work Conditions

But Do Not Waste Time Trying to Define the ‘Perfect’ Scenario


Questions

For Questions or Otherwise to Discuss Information Management, Workflow,

or Business Process Management, Contact:

Nathaniel [email protected]


Introducing our Sponsor

Michael Theis

Solution Development Representative

Iron Mountain


is the percentage of Global 2000 companies who reported that they were concerned with simply finding all of their contracts when they needed them.*

is the amount of productivity lost per person per year because workers can't find the data to do their jobs. *

is the percent of annual costs PriceWaterhouseCoopers estimated companies could save by eliminating inaccuracies and non-compliance through improved contract management.

The Effects of Inefficient Processes

81

$14k

2%

* Kirk Krappe and Gopi Kallayil. “Contract Management is More Out of Control Than You Think.” Journal of Contract Management. April 2003.* IDC Canada. (Cited in many web postings, we do not have the original report or source.)


Improved Efficiency Leads to Greater Productivity

In our world of information management, your success depends on two things:

1. You need to increase collaboration and knowledge management so that people can do their jobs better and

2. You need to improve the findability of and access to business documents — regardless of their format


Customer Case Study

Parker Hannifin

VISIBILITY ACROSS THE ENTERPRISE


Customer Case Study: Parker Hannifin

To cost-effectively manage a decentralized national purchasing card program and eliminate highly manual, paper-based processes.

Customer Challenges:

““Our biggest challenge was one of accessibility. We had the procedures in place to maintain the documentation required for audit compliance, but accessing the information was time consuming, expensive and inefficient,” - Jason Lance, Tax Analyst at Parker Hannifin.


Process AccessStoreImageInput

DIGITAL RECORD CENTER® FOR

IMAGES

The Solution:




Increased visibility into P-Card expenditures

Elimination of temporary workers

Reduced risk and storage requirements

Solution Benefits:

Solution Results:

$30,000 net savings annually60-70% reduction in the average cost per audit request


Thank you!

Looking for more Information? Go to:

www.storeaccessmanage.com

Call: 1-800-899-4766

Email: [email protected]


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