Does DocuWare Justify the Cost? A Comprehensive Perspective on ROI

In today's fast-paced business environment, organisations across various departments – from accounting and finance to human resources – are constantly looking for solutions to streamline operations and improve efficiency. DocuWare, a leader in document management systems, offers a compelling proposition. But the question remains: does the investment in DocuWare justify the cost? Let's explore this question using insights from a wide range of customer experiences.

ROI: a multifaceted perspective

Return on investment (ROI) with DocuWare is not a static metric; it's a dynamic value that varies from department to department. Feedback from over 18,000 satisfied customers indicates significant time and cost savings in various business processes.

Intelligent Indexing, for example, reduces capturing time by up to 95%, while document approval time is reduced by 80%.

Understanding the return on investment with DocuWare is crucial. The ROI goes beyond cost savings and includes improvements in operational efficiency, reduced document processing time and increased accuracy in document handling. For many businesses, DocuWare isn’t just a cost – it's a transformative investment that reshapes the way they do business, potentially leading to significant long-term financial gains.

Calculating ROI for different business needs

The ROI for DocuWare can be calculated using the following formula:

ROI = (Profit / Investment) x 100%.

Profit' can mean:

• Cost savings in various departments before and after implementing DocuWare.
• Process efficiency – shortening process times from x to y after implementing DocuWare.
• Investment savings – increasing the productivity of the current team. Output per employee, 200 invoices before and 1000 invoices after implementing DocuWare. In HR, these savings could mean handling more tasks per hour without hiring additional staff, while in Finance, it could mean faster invoice processing with fewer errors. The investment is the cost of DocuWare, including implementation and maintenance.

ROI Example 1

Let's say a company invests 30,000 in implementing DocuWare to automate its purchase to pay process. They estimate the annual savings as follows:

Labour cost savings: 20,000

Error reduction savings: 10,000

Faster processing benefits: 15,000

Space saving: 2,000

Total savings = 30,000 + 10,000 + 5,000 + 2,000 = 47,000

Net benefits = total savings - total costs = 47,000 - 30,000 = 17,000

ROI = (17,000 / 30,000) × 100 = 56%

The intangible savings of refocusing time on revenue-generating activities have not been included in the calculation.

ROI Calculator

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ROI Example 2

A similar example can be applied to an employee management environment. In such a case, additional return can be expected as shown below:

Legal risk reduction: 20,000

Return on employee satisfaction:

• Reduced staff turnover: 20,000
• Productivity improvement with experience: 20,000

Labour cost savings: 20,000

Space savings: 2,000

Faster processing benefits: 15,000

Net benefits = total savings - total costs = 97,000 - 30,000 = 67,000

ROI = (17,000 / 30,000) × 100 = 56%

Key benefits of using DocuWare

Realize ROI within 6 months through intelligent indexing and document approvals

The value of DocuWare goes beyond time savings. Its impact on error reduction, automated notifications and overall workflow efficiency is profound. Such improvements can result in ROI times of less than six months compared to the cost of implementation. Automating document-driven processes in any department brings immense value by replacing manual, repetitive tasks.

DocuWare's intelligent indexing and streamlined document approval processes play a key role in saving time and reducing operating costs. Customers have reported savings of up to 95% in document capture time and 80% in document approval processing time. These savings are significant, translating into faster turnaround times for critical business processes and contributing to overall operational efficiency.

Faster approvals and processes streamlined by 70% to 80%

Instead of searching for paper on their colleagues' desks, HR staff can focus on more important tasks. Their colleagues' drawers won't eat up their documents. Vacations or business trips no longer delay decisions. As a result, you and your team can reduce the time it takes to make decisions by 70% to 80%.

Reduced audit preparation

Every organisation is subject to audits from time to time. Audits can last from a few days to a few weeks and auditors require a lot of documents and records. During this time, one or more colleagues take documents to the auditors. This is very costly for the organisation and very stressful for you and your team. No matter how hard you try, you can never be sure that your paper file is complete.

In DocuWare, all documents can be accessed via a simple search and the document data can be used in reports, e.g. for audits. This speeds up audits and reduces the risk of non-compliance. DocuWare Digital File can generate the following reports: deadline control, file completeness, audit trail, access report, documents deadline report and file deadline report. This reduces the time needed to prepare for audits and, most importantly, minimises the risk of non-compliance.

Reduced risk of non-compliance

DocuWare monitors your files and processes 24/7. The controls can run on a single document level. With a click, you can see a full audit trail including: who accessed records and when? How was it used, copied? Was it printed? Was it saved locally? The audit trail shows the history of each document. This gives the HR team peace of mind and no one has to worry about whether the filing cabinet has been locked.

Increased productivity and efficiency in key business areas

DocuWare's flexibility allows it to seamlessly adapt to various needs of different departments. In accounting, it enables faster invoice approvals and real-time financial reporting. For HR, it streamlines employee onboarding and simplifies compliance with labour laws. Finance departments benefit from accelerated financial processes and improved audit readiness. According to IDC, “Information workers waste a significant amount of time each week dealing with a variety of challenges related to working with documents. This wasted time costs the organization $19,732 per information worker per year and amounts to a loss of 21.3% in the organization's total productivity. For an organization with 1,000 people, addressing these time wasters would be tantamount to hiring 213 new employees.”

Process transparency

DocuWare addresses these challenges by streamlining the processes of capturing, storing, processing and retrieving documents, as well as by facilitating automated workflows between teams. While opportunities for such automation exist throughout the organisation, there are specific business areas that benefit the most.
DocuWare facilitates the automation of manual tasks, reducing dependence on slower paper-based processes and consolidating data in a single repository. This integration leads to numerous benefits, such as quicker product or service delivery and reduced labour costs across various sectors, including government, manufacturing, and education.

Real-world impact and testimonials

Testimonials from a wide range of customers demonstrate the versatility and effectiveness of DocuWare. These success stories illustrate how companies have realized reduced costs, increased security and significantly improved the efficiency of document processing and management in various departments. Please find three examples below:

• Glenkeir Whiskies (docuware.com)
• Carebase (docuware.com)
• Owens Group Ltd. (docuware.com)

Conclusion

DocuWare's cost is clearly justified by its comprehensive benefits – from increased productivity to streamlined processes and reduced risks. For any department considering digital transformation in document management, DocuWare stands out as a strategic investment with clear, measurable returns. To further understand how DocuWare can specifically benefit your organisation, we recommend a personal consultation with our team or one of our expert Business Partners.

If you have any further questions, reach out to us!