Now a day’s all organization work hard to improve their bottom line to survive in competitive world. They invest resources in Business Process Re-engineering to re-design the process in order to reduce cost and time consumption. At times most favorable circumstances for reducing cost are right under your nose but you failed to recognize them. As per the recent research conducted by world famous marketing research agency name IDC concluded that world Fortune 500 organization as a altogether deprived of an approximately of $12 Billion every year due to mismanagement of documents and lack of a well established structure for digital document management and Data management .
Still disagree? Here are some more facts reported by Gartner Research, on an average employee waste estimated $4,800 worth of their productive time on annual basis just looking for business documents. In large organizations with big employee headcount, these number sum up to millions of dollars annually. On other hand in smaller enterprises, the money emaciated as an end result of looking for and creating new documents that are already available but can’t be found can quickly add-up to the unwanted expense that small companies cannot really afford to remain competitive in business.
Let’s take an example of an organization without any document management system with 10 employees, on an average each one is wasting $4,800 worth of their business time searching for misplaced or lost documents annually. The annual loss for this organization would be $48,000 which is a big dent to the profit margin. This cost inflate as high as $ 7,500 in the case of smaller organization where one or two person is managing all the task of Marketing, Operation, Finance and Client Services because you are more prone to misplace important documents due to high work pressure.
Possibly you must be speculative, is this figure is accurate or applicable in your case. Let’s presume for a minute that Gartner’s numbers are magnified. Would $20,000 annually sound more reasonable to you? Even this amount make a lot difference in your margin for a small organization, will it be agreeable to you to give away this money? The financial cost of not handling your documents the right way is stunning.
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