How can companies determine ROI for enterprise content management (ECM) tools?
Tidmarsh: By measuring both tangible and intangible value. Tangible ROI is measured in bottom-line dollars saved – determine metrics of current practices as a baseline, set goals and measure against those goals. Paper processes can cost as much as 24x electronic – measure how long it takes to process paper today, set a clear savings objective, and measure again after automation. Most companies see dramatic time-savings, faster time to market, increased customer satisfaction, and in many cases, higher revenue. Measure intangible return by tying content management deployments to a specific initiative that has metrics for success – for example, being able to deliver a 20-minute loan approval (vs. two days) will yield measurably more revenue and number of customers. Samat: As infrastructure, ECM is multi-purpose. ECM ROI has to be a process of looking at the operating efficiency or operating capability gained for a series of specific business processes. For example, it may not be clear how
