White Paper: Going Paperless – Part 2
Structure a successful paperless project plan, avoid common pitfalls and report on the metrics that matter when going paper free.
Excerpt from the white paper:
The push for digitisation is typically driven by a desire to reduce cost and improve efficiency. So a successful paperless implementation will be judged by performance against these metrics. In order to demonstrate success, steps need to be taken to measure this improvement in performance.
Determining the reduction in cost can vary significantly, depending on the business scenario, but here are some outline areas to consider the cost savings in.
- Materials – including paper, toner/ink, staples and binders
- Overheads – including electricity, postage costs, storage costs, hardware and insurance
- Human costs – time spent filing, searching, copying, recreating, updating, destroying, delivering and handling queries and complaints due to time taken for paper-based delivery to be received
- Business costs – reduction in lost business and fines for late delivery or payment
Offset these against the investment in hardware, software and expertise to deliver a digital solution. This can be more challenging to calculate when internal resources are applied to a project, but where possible these can be measured through staff time and infrastructure usage costs.
Through greater efficiency, staff are empowered to focus on more profitable work, reducing customer payment timeframes and closing deals faster. These elements, and more, contribute to improved cash flow as well as improved profitability.
Cash flow metrics such as reduction in days’ sales outstanding (DSO), or delinquency are of huge value to any businesses, as free cash flow is one of the most important metrics for a healthy business – determining the business’s ability to invest in growth, or reward shareholders.
Improved efficiency is simply measured by how much time and investment in resources is saved to generate the same volume of business. This associated cost saving leads to improved profitability, and the time saving delivers profit in a shorter timeframe, leading to a more efficient business.
Download the full white paper to read more…