10 Document Management Facts Small Businesses Must Know
These 10 document management facts are simply need-to-knows for small businesses in today’s contemporary market. Innovation and ingeniousness is no longer just about big startup ideas, it’s about helping these ideas flourish as expediently as possible.
To make this more than a pipe dream, document management software and related technologies shouldn’t take a backseat to other forms of capital that most entrepreneurs are overly concerned with: leverage, speed-to-market, and more.
These 10 document management facts listed on AIIM’s website are grounds for this discussion. Although the post was published in 2010, it’s worth resuscitating this post too, to limn the fact that although document management has changed, businesses are still slow to adopt these technologies, and to their downfall.
Although we have not adjusted these stats for inflation, their importance would remain glaringly obvious if adjusted for economic factors. Yes, the dollar is not as strong as it was 5 years ago, but the lessons we can learn from the following facts and figures, are.
Companies spend $20 in labor to file a document, $120 in labor to find a misfiled document, and $220 in labor to reproduce a lost document
I can hear you quipping it in the back of your mind–“there’s no way that’s possible,” you exclaim. Well, when compounded with the laziness of today’s workforce, these facts are probably generous if anything. The inefficiencies are so obvious and so glaring that most people don’t recognize them until they finally go paperless through an electronic document management system.
7.5% of all documents get lost; 3% of the remainder get misfiled
If you know basic math, the implications here are pretty obvious. This means that if you’re like most paper-dependent organizations, and have roughly 5,000 documents, and you lose 7.5% of your documents, this means you’ve lost 350 documents in total. Each of these lost documents costs, if they are reproduced after being lost, costs $77,000.
That’s roughly what you’d pay for a highly experienced HR professional. That’s right: You may as well be paying someone seventy seven thousand dollars a year to come in to the office and lay in a bean bag every day. This isn’t including the cost of benefits and opportunity cost of paid vacations.
Professionals spend 5 – 15% of their time reading information, but up to 50% looking for it
Very few people are paid to do what their degrees and years of study have paid them to do–but this fact is only worsened when you examine the cause behind this phenomenon: using traditional paper-based filing methods.
The average document is photocopied 19 Times
We aren’t really sure whether this needs an explanation, but we’ll give one any way: To be the most efficient business possible, you’re going to have to do some things as little as possible, and needlessly photocopying documents is one of them. It’s basically the equivalent of going on Facebook 19 times a day. And this is just one of the reason millennials can become more effective through document management software.
There are over 4 trillion paper documents in the U.S. alone and they are growing at a rate of 22% per year
This stat from Price Waterhouse Coopers is alarming, especially when considering how much paper-based operations cost on a macroeconomic level. Based on this statistic alone, one could argue paper-dependence isn’t just a problem for SMBs, but rather the domestic and global economy as a whole.
Corporate users received an average of 18MB of email per day in 2007; email is expected to grow to over 28MB per day by 2011.
The saddest part of this stat is that in 2017, the average had risen more than expected by 2011. This is primarily because of the pervasiveness of email access on mobile phones.
Users send and receive an average of 133 email messages per day (Radicati Group).
We’re sorry, people. But email is not just a bad means of overcoming breach, it’s not great for facilitating a workflow process, either. In a day and age where most content is being stored in email, the potential for breach is huge, and has been experienced as early as the tail end of last year in 2016, when email provider, Yahoo, had to notify its users of the breach.
A single Fax machine costs $6,200 per year (Captaris); the average time to manually Fax a document is 8 minutes.
Sometimes people are wary of opting in to a cloud-based document management solution because of the cost they fear it will incur to their organization. Little do they know, the fax machine they use to manage their information costs them a walloping figure, especially when compared to the file sharing speed of document faxing. Office automation add-ons can solve this problem, as can encrypted web portals.
The average cost to send a package via courier service is between $8 and $15.
This is absolutely baffling. Snail mail is just one of the paper-dependent processes holding business back. But factor in the security risks of manual shipping and snail mail, and you’ll probably steer clear of the UPS or FedEx for quite some time.
The cost of office space has increased 19% (Office Space Across the World 2008).
Happily, our customers have found that they can save time and money when they make the switch to a paperless office. What’s more, if you’re a consultant or independent contractor, or mental health services professional and just need a small office for yourself and have some small compliance needs, the lite version of eFileCabinet Online, eFileCabinet Express, can bring business-grade security to your single-room office or consultancy.
In the mean time, I will leave you with this one
We love our customers, and we love the experiences that they have with eFileCabinet products. Despite being a smaller vendor, we have the top-rated solutions in the industry according to numerous review sites like Capterra.com, Finances Online, CrowdReviews, and more.
“The program itself has already saved us 4 to 5 man hours in two days. We are able to find the file we need quickly and save time printing. Now a 2-person job can be done with 1 person. What used to take a whole day takes an hour at the most.”
—George Encinosa, Coos County Airport