Develop an ecm strategy


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This solution set will assist you in determining if ECM is right for your organization, help you build the business case for stakeholder communication and support, and determine if the enterprise is ready to move forward with implementation. By completing this solution set you will:

•Understand the various ECM concepts and technologies and how they relate to key considerations like worker productivity, managing information growth, and compliance.
•Have a strategy to ECM implementation in alignment with corporate goals.
•Establish a basis for ongoing ECM success. Use the metrics to determine if the ECM strategy is logical and to guide ongoing investment.
Use this research to help navigate the ECM landscape and learn whether or not to implement it in your organization.

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Develop an ecm strategy

  1. 1. Develop an Enterprise Content Management Strategy Info-Tech Research Group
  2. 2. Full-bodied Enterprise Content Management solutions are out there. Should you have one? Those who should read this: At the end, you will: <ul><li>Understand the various ECM concepts and technologies and how they relate to key considerations like worker productivity, managing information growth, and compliance. </li></ul><ul><li>Have a strategy for ECM implementation that is aligned with corporate goals. </li></ul><ul><li>Establish a basis for ongoing ECM success. Use the metrics to determine if the ECM strategy is logical and to guide ongoing investment. </li></ul><ul><li>Have a rough-cost estimate of ECM implementation. </li></ul><ul><li>Are evaluating enterprise readiness for ECM. </li></ul>Info-Tech Research Group ECM is a better marketing term for vendors than a technology roadmap for decision makers. Tech term bewilderment and requirements confusion are only compounding contributors to enterprise uncertainly when it comes to ECM. Vendor push causes many to begin full implementation before considering smaller, more appropriate alternatives. <ul><li>Are IT managers in mid-sized organizations. </li></ul>
  3. 3. Executive Summary Info-Tech Research Group <ul><li>There are several vendor solutions for ECM on the market, many of which are over-kill for organizational needs. It is essential to consider actual requirements and garner feedback from the end-user community to ensure a best-fit before finalizing on a vendor. </li></ul><ul><li>A focus on IT efficiencies and niche technologies like collaboration, business process integration, and search provide the best complexity tradeoffs. </li></ul><ul><li>Improved internal technology efficiencies, better response and adherence to compliance and litigation, as well as increased employee productivity all contribute to the bottom line and drive ECM adoption. </li></ul><ul><li>Before taking any steps into the ECM implementation process, the enterprise should complete the readiness assessment developed by Info-Tech Research Group. This assessment provides recommendations on where to focus before jumping into ECM. </li></ul><ul><li>A well planned out business case and deployment strategy are key to increasing end-user adoption and obtaining executive support. </li></ul><ul><li>Training is key for getting staff through an extensive learning curve and must be built into implementation plans to mitigate the risk of failure. </li></ul>
  4. 4. ECM is the strategies and tools to manage content, however it is defined Info-Tech Research Group The Association for Information and Image management ( AIIM ) provides the following definition: Enterprise Content Management (ECM) is the strategies, methods and tools used to capture, manage, store, preserve, and deliver content and documents related to organizational processes. ECM tools and strategies allow the management of an organization's unstructured information, wherever that information exists.
  5. 5. Info-Tech Research Group ECM Triggers Applications Key Factors Technologies Records Management Document Management Web Content Management Ancillary Technologies Deployment Plan & Costs Vendors Success Factors Trends Future Factors
  6. 6. Enterprise Content Management addresses the lifecycle of corporate information Enterprise Content Management integrates a variety of different technologies to manage an organization’s unstructured information, wherever it exists. Info-Tech Research Group
  7. 7. Most enterprises have some sort of ECM. Those that don’t, need to pay attention to the triggers related the volume of information, corporate mandates, and process handoffs Info-Tech Research Group Source: AIIM State of ECM Industry (2009) <ul><li>Over 2TB of storage dedicated to unstructured data. </li></ul><ul><li>More than 500 employees. </li></ul><ul><li>Knowledge workers spend more than 15% of their time looking for information or integrating different data sources. </li></ul><ul><li>Process workers manually handoff records or documentation more than three times. </li></ul><ul><li>More than 300 documents that are deemed crucial for ongoing business operation. </li></ul><ul><li>Corporate mandate to comply with regulatory frameworks or establish proactive defense for litigation. </li></ul>All enterprises that meet one of the key triggers should have ECM.
  8. 8. ECM projects are driven by many factors but a focus on IT efficiencies and niche technologies like collaboration, business process integration, and search provide the best complexity tradeoffs. Info-Tech Research Group The whole point of implementing ECM is collaboration. - Infrastructure Manager, Marketing Firm “ For litigation, there has to be a process in place of going through things, organizing them, and making sure all of the right stuff is there. This is important, but not the key driver for our project. - Infrastructure Manager, Marketing Firm “ ” ”
  9. 9. The ECM business case depends on three interlocking factors: compliance/litigation, IT efficiency, and business efficiency Dedicated ECM suites include both the core and fringe technologies. Internal efficiencies encourage IT departments to support ECM. But the real benefits for ECM lie within the business. Compliance and litigation get the attention of senior management and other key stakeholders.
  10. 10. 25x data growth by 2020 peaks ECM interest but the business case relies on the three key factors. Info-Tech Research Group Compliance & Litigation - Changes in regulatory compliance is forcing increased scrutiny of records and document management. - Enterprises must comply with key regulatory frameworks like Sarbanes-Oxley, USA PATRIOT Act, NASD 3010, and various state and federal guidelines. - These regulations mandate how documents and records are to be used and maintained. - Enterprises must also protect themselves from litigation by securing documents and disposing of them appropriately. <ul><li>IT Efficiency </li></ul><ul><li>- Data growth rates in excess of 50% forces new investments in storage technologies. </li></ul><ul><li>Enterprise Content Management strategies can be effective in reducing growth rates and delaying new investment in storage technology. </li></ul><ul><li>- IT can also off-load development effort to business units and may see improvements on the help desk. </li></ul><ul><li>Business Efficiency </li></ul><ul><li>ECM benefits both knowledge workers and process workers. </li></ul><ul><li>Knowledge workers gain shared work spaces to collaborate and tools to improve their ability to find information. </li></ul><ul><li>Process workers gain standard workflow functionality that reduces paperwork and improves throughput. </li></ul>Explosive data growth is driving interest in ECM. But the business case depends on three key factors: x
  11. 11. Business efficiencies are the most important popular driver of ECM, but compliance/litigation & IT efficiencies are important parts of the business plan Info-Tech Research Group Compliance & Litigation Advantage: - The threat of litigation attracts buy-in from senior management. - Responding to litigation discovery requests can be very expensive. - Compliance initiatives force some degree of document management and retention. Disadvantage: - Not all industries have to comply with regulations. - For many organizations, litigation is rare event with very low probability. IT Efficiency Advantage: - All enterprises face the storage growth problem. - Delaying investment in storage can be used as an example of hard savings for a business case. Disadvantage: - CFOs have a common belief: disk is cheap. It's cheaper to add storage than to take a proactive response to data growth. - ECM is ultimately owned by the business. So the business must buy-in to the project. Business Efficiency Advantage: - User adoption is the key success factor for ECM. Engaging the business early improves adoption. - Business users generally complain loudly about the need for new systems to improve their productivity. Disadvantage: - The business benefits are soft. - A CFO that demands hard savings for the business case will quickly dismiss business efficiency. Not Important Very Important
  12. 12. Litigation & compliance get senior management on-board quickly & get a lot of attention Info-Tech Research Group Business Efficiency IT Efficiency <ul><li>Compliance & Litigation </li></ul><ul><li>Key Issues: </li></ul><ul><li>Compliance initiatives demand that records must be retained in a certain way for a minimum period of time. </li></ul><ul><li>Compliance can be compulsory (e.g., publicly traded enterprises) or voluntary (e.g., manufacturers pursuing quality </li></ul><ul><li>control initiatives). </li></ul><ul><li>For the most common compliance regulations see: “Compliance Regulation – Understanding the Dirty Dozen ” </li></ul><ul><li>Litigation is different and requires a proactive defense. Changes to the US Federal Rules of Civil Procedure in 2006 forced many CIO and legal counsels to rethink their defense strategy. While compliance typically deals with records , litigation deals with all information within the enterprise, including email. The best way to prepare for ediscovery requests is to know exactly what information the enterprise has and automate its disposition. </li></ul><ul><li>Steps to Success: </li></ul><ul><li>Get legal counsel on-board . Issues like retention schedules are business issues, not IT issues (although they will have an impact on storage growth estimates). Counsel and the business units must determine the retention period so that IT can impose the appropriate controls. </li></ul><ul><li>Remember email . It’s often the most difficult type of content to control, record, and archive. Get records out of the email archive so it can be dealt with based on IT considerations, not litigation or compliance issues. </li></ul>Source: AIIM State of ECM Industry (2009)
  13. 13. IT efficiencies present real ROI for ECM deployments Info-Tech Research Group Compliance & Litigation <ul><li>IT Efficiency </li></ul><ul><li>Key Issues: </li></ul><ul><li>Many ECM projects begin due to a very practical IT concern: the rate of data growth. </li></ul><ul><li>IT managers are confronted with the challenges of managing storage growth rates of over 40% per year. They worry about the scalability of their systems and the impact this rapid growth will have on their ability to effectively meet backup and disaster recovery requirements. </li></ul><ul><li>IT efficiencies are one of the few areas that demonstrate real ROI for ECM in terms of: deferred investment in new storage technology, improvements to business continuity, reduction in storage, improved ability to meet business unit demands for new functionality (for both process and knowledge workers), and reduced helpdesk requests for recovering lost documents. </li></ul><ul><li>Steps to Success: </li></ul><ul><li>Prepare for ROI rejection. IT efficiencies will produce compelling ROI numbers but many CFOs will dismiss the storage concerns by saying “disk is cheap”. Remind them that adding disks to an array might be relatively inexpensive but major storage infrastructure upgrades are not cheap. Nor are business disruptions caused by the decay in business continuity provisions. </li></ul><ul><li>Corral the key documents of the file share. ECM will never fully replace the file share. Use it for the most heavily used or process-dependent contents in the enterprise. The shared drive will always have a role for ephemeral documents (e.g., the folder “Summer Vacation Photos 2003”). It is, however, crucial to minimize the cost of maintaining the shared drive. It may, for example, be appropriate to support the shared drive on low-cost NAS storage with no business continuity provisions. </li></ul><ul><li>Help end users to help themselves. The storage benefits of ECM are significant, but the greatest benefit comes from employee self service. Many ECM systems enable business units to create their own repositories and workflows, without the need for IT’s help, resulting in considerable reductions in developer effort. </li></ul>Business Efficiency But keep it simple. Once you have the content indexed in the system, you want to be able to find things. Avoid over-granularity. - IT Consultant, Financial Services “ ”
  14. 14. Knowledge workers rely on tools to find, collaborate on & share documents Info-Tech Research Group Compliance & Litigation IT Efficiency <ul><li>Business Efficiency: Knowledge Workers </li></ul><ul><li>Key Issues: </li></ul><ul><li>Knowledge workers must use information to be successful in their roles. </li></ul><ul><li>Typical roles include: analysts, engineers, managers, directors, producers, writers, and editors. </li></ul><ul><li>Knowledge workers value technologies like shared workspaces, search, document, collaboration, and document management. </li></ul><ul><li>The business case for knowledge workers depends on a variety of factors: cycle time reduction to produce deliverables, reduced time spent finding information, increased productivity, and the reuse of knowledge assets (e.g., using existing marketing materials as opposed to creating new ones). </li></ul><ul><li>Steps to Success: </li></ul><ul><li>Engage the end user. Process workers buy in to content management because they have no choice. Knowledge workers must be sold. Identify and address their concerns. Ask questions like: “What are the biggest problems in your role?” and “In an ideal world, what technology would help you to do your job?” </li></ul><ul><li>Bring collaboration back into content management. Many enterprises have content management and most have some collaboration tools. These tools are often not integrated, leading to workflow and productivity concerns. </li></ul>Source: AIIM State of ECM Industry (2009)
  15. 15. Process workers require BPM & forms tools for an effective ECM strategy Info-Tech Research Group Compliance & Litigation IT Efficiency <ul><li>Business Efficiency: Process Workers </li></ul><ul><li>Key Issues: </li></ul><ul><li>Process workers complete documentation. They may process forms, complete transactions, or file updates. Their jobs are structured and related to key output metrics such as the number of invoices processed or claims filed. </li></ul><ul><li>Typical roles include: clerks (government, accounts payable, etc.), front line staff, inside sales people, and brokers. </li></ul><ul><li>Process workers rely on technologies like forms automation and business process management. </li></ul><ul><li>The business case for process workers differs from that of knowledge workers. Key elements include: cycle time reduction (cash cycle, time to process inventories, etc.), reduction in paper and storage space, increased productivity due to online information access, and improved customer service and responsiveness to inquiries. </li></ul><ul><li>Steps to Success: </li></ul><ul><li>Know the process. The project will fail if the strategy or tool doesn’t completely address what the users require. Engage the business units to model the process and to explore ways of improving or streamlining it. </li></ul><ul><li>Remember the outputs. Most enterprises focus their efforts on business process management and on the use of forms to create documentation. They often neglect output: how the documents become records, how they are rendered for external use (e.g., printed bills), and how they are stored for future reference. </li></ul>Source: AIIM State of ECM Industry (2009)
  16. 16. Three perspectives demonstrate how the three factors are operationalized in ECM Info-Tech Research Group Compliance & Litigation Consider: A very large provider of shipping services maintained a yard where they stored the goods of partners and customers. Much of this material was damaged during a freak natural event resulting in several lawsuits. The shipping company was unprepared and turned to a consultant to facilitate the discovery process. Total discovery costs were almost $1-million for claims of approximately $2-million. The process was so painful that legal counsel determined that they should be better prepared for the inevitable next time. The project was driven by counsel. Even though the goal of the project concerned litigation defense, the project team quickly realized that they could leverage an ECM deployment for other reasons such as automating invoicing and providing knowledge support functions for the sales organization. IT Efficiency Consider: An IT manager for a professional services firm became incredibly worried about enterprise storage. He felt that the growth rate for information was excessive (~60% growth per year) and key stakeholders were reticent to remove documents from the fileshares. The engineers claimed that they needed all of their previous files just in case the same problem came up in the future. The manager developed a strategy where he would corral all key documents into an ECM system. They were the most frequently accessed and were related to core business processes. He maintained the ECM system with strict SLAs for uptime and backup. He demoted other fileshares to a cheaper tier of storage with less strict SLAs. The focus of the project was reducing both the cost of storage and the growth rate. The enterprise also gained efficiencies because the engineers were able to find the documents they needed, particularly when responding to compliance-driven requests. Business Efficiency Consider: A mid-sized insurance company was facing a key growth issue. They dealt with a variety of different policy types that were sold by different groups of brokers. Their processes, however, were highly manual. Fairly minor policy changes would trigger a cascade of manual processes to update the policy documents. The VP of IT suggested a document management system and worked with the business units to create an appropriate solution. All of the policies were maintained in a repository. The documents were accessed as part of strict update workflows. The focus of the project was to increase the efficiency of process workers but also resulted in other advantages. Multiple versions of documents were eliminated resulting in both storage benefits and an increased ability to respond to litigation discovery requests.
  17. 17. Info-Tech Research Group ECM Triggers Applications Key Factors Technologies Records Management Document Management Web Content Management Ancillary Technologies Deployment Plan & Costs Vendors Success Factors Trends Future Factors
  18. 18. History illustrates how disparate technologies came together to create ECM Info-Tech Research Group 1970s Records Management Document Management Business Process Management Web Content Management Blogs & Wikis 1980s 1990s 2000s 2010s ECM started with the management of paper records: where they were stored, how long they were maintained, etc. Only the metadata was managed. Users began to ask for systems that provided greater control for documents. System emerged that enabled process workers to collaborate and create documents. Two things changed in the 199os. Process workers asked for BPM tools and a need emerged for the management of web-based content. These tools rolled into ECM. The first decade of the 2000s saw massive industry consolidation and the formation of true ECM providers. Social computing also emerged as an important force for content creation. ECM continues to evolve in 2010. It includes document management, records management, and WCM. It also includes new sources of enterprise content. ECM concerns the creation, control, organization, access, and disposition of content anywhere in the enterprise. If it has words and can be stored, it is ECM. Info-Tech Insight:
  19. 19. ECM strategy is implemented with a variety of different technologies Info-Tech Research Group The core of ECM is a pyramid of three technologies: records management, document management and web content management. ECM bleeds into a fringe of related ancillary technologies like archiving and collaboration. Dedicated ECM suites include both the core and fringe technologies.
  20. 20. Records management specifically addresses content that needs to be maintained to meet compliance & regulatory concerns Info-Tech Research Group <ul><li>It is essential to understand the different between a record and a document . A record is different from a document. According to ISO 15489, a records is: </li></ul><ul><li>Necessary for compliance reasons. </li></ul><ul><li>Essential for business recovery. </li></ul><ul><li>Or of historical significance. </li></ul><ul><li>Key features of records management systems include: </li></ul><ul><li>Secure access to and audit-ability of repository. </li></ul><ul><li>Ability to maintain retention schedules. </li></ul><ul><li>Automation of disposition. </li></ul><ul><li>Support for queries and e-discovery. </li></ul><ul><li>Integration with paper-based filing plans. </li></ul>It can also be an important element of automation for process workers. Recommendations 1. Involve key stakeholders from applicable business units (typically finance and human resources), corporate counsel, and existing records managers. Records management is never an IT project, even though IT may have responsibility for the care and feeding of the system. 2. Address only records as defined by ISO15489. The management of documents should be driven by IT Efficiencies (i.e. impact on storage infrastructure) or business efficiencies, particularly as they impact knowledge workers. 3. Review existing frameworks to develop an understanding of records management solutions, including DoD 5015.2, VERS, ANSI-ARMA 8-2005, and MoReq. See &quot; Use International Standards as a First Step Towards Records Management .&quot;
  21. 21. Email: Is it a document or a record ? It’s not a record… Info-Tech Research Group … it should be a document . Info-Tech is commonly asked a basic question: “What is the retention period for email?” The answer depends on the type of information contained within the email. If the email archive contains records, then the email repository has to be maintained for as long as the minimum retention period for the contained records. If, for example, a power generation facility has maintenance records that are only contained in the email system, then that email repository would have to maintained for 30 years after the facility is decommissioned! The only tenable strategy is to remove email that represents records from the email archive and then set the retention period based on IT efficiencies or business efficiencies. IT, for example, may elect to automatically delete email that is older than one year. Alternatively, Knowledge Workers may be allowed to keep their email for five years to serve as a knowledge repository. Make sure there are no records in the email repository. This step will make it much easier to meet compliance and litigation goals. Info-Tech Recommends:
  22. 22. Document management supports business efficiencies for all types of workers <ul><li>Recommendations </li></ul><ul><li>Right size the strategy. Document management comes in a variety of different shapes and sizes making product selection very challenging. Info-Tech clients report RFP responses with cost estimates that varied by 400%! Enterprises considering document management begin the project assuming the most basic technology requirements. </li></ul><ul><li>Ask the business unit: “Will this technology meet your needs?” In many cases the answer will be “no” and the project team will have to add requirements and explore different options. If the answer is “yes”, don’t go looking for more complexity than you need because vendors will gladly sell it to you. </li></ul><ul><li>Consider the needs of both knowledge and process workers. Each role has a different set of goals and requirements (as indicated above). Certain products favor one set of roles over the other. Many IT leaders, for example, start their ECM initiative with SharePoint as “right size” strategy. It may meet the needs of their knowledge workers while requiring considerable additional investment in ancillary technologies to meet the requirements of process workers (e.g., forms, BPM, etc.). </li></ul>Info-Tech Research Group <ul><li>A document is essentially anything that isn't a record. Documents do not have a mandated retention schedule. Keep documents as long as necessary to support either business processes or IT goals. Engineers, for example, may insist that they have access to documents for long periods of time while legal counsel may mandate very short periods. </li></ul><ul><li>Key features of document management systems include: </li></ul><ul><li>Document libraries and versioning. </li></ul><ul><li>Check-in/check-out. </li></ul><ul><li>Collaboration features. </li></ul>Both knowledge workers and process workers can benefit from document management, but the solutions may look very different.
  23. 23. WCM addresses the IT woes of getting the right content onto the Web & managing it appropriately <ul><li>WCM shares many of the same components of records and document management: a shared repository and workflows to create and access content. WCM content, however, is ultimately published to an external web site. </li></ul><ul><li>Key features of document management systems include: </li></ul><ul><li>Authoring interfaces that enable business users to create and manage content. </li></ul><ul><li>Workflows for content editing and approval. </li></ul><ul><li>Features for compliance with accessibility frameworks (e.g., Section 508). </li></ul><ul><li>Integration with analytics and social media tools to support user interaction with the Web site. </li></ul><ul><li>Info-Tech Advice </li></ul><ul><li>WCM is the least interdependent element of ECM. If the need for WCM emerges from a particular business unit, take a tactical approach. An enterprise-wide strategy is not generally necessary . Instead, address the needs of the business users with the most affordable technology option available. </li></ul><ul><li>Governance is a key element of project success. Many Info-Tech clients ask: “Now that we have WCM, how do we manage it?” The answer is “governance”. Any governance approach for WCM must articulate three things: </li></ul><ul><ul><li>People . Who can access, use, edit, create, and approve content? </li></ul></ul><ul><ul><li>Process . How do people (see above) interact with both the available content and the system in which it is supported? </li></ul></ul><ul><ul><li>Content (formerly “Paper”). What content is permissible on the site? </li></ul></ul>Info-Tech Research Group Stress test the governance model by asking what would happen if an employee posted sexist or racist material on a public site. Does the model effectively address how to address the issue? Info-Tech Insight:
  24. 24. Many ECM deployments depend on an array of ancillary technologies for search, workflow & other parts of an ECM solution Info-Tech Research Group The Repository is the core of an ECM system. It is where the content is stored and maintained. They are generally database driven. Repository technologies are typically vendor proprietary but standards like JSR-283 and CMIS articulate how different repositories can interoperate. A deployment may have one or more repositories depending on the requirements. ECM also includes a variety of other technologies. They may be included as part of the package or may be provided by partner functionality:
  25. 25. Info-Tech Research Group ECM Triggers Applications Key Factors Technologies Records Management Document Management Web Content Management Ancillary Technologies Deployment Plan & Costs Vendors Success Factors Trends Future Factors
  26. 26. The first two months of an ECM project are about building the business plan, assessing organizational readiness, and estimating project costs. Info-Tech Research Group Establish the business need. Build the project team. Assess organizational readiness. Determine approximate cost. Develop the Business plan. The first step in an ECM project is identifying the need. There must be some trigger for the process typically related to litigation/compliance, IT efficiencies, or business efficiencies. Deliverable: A statement of direction. It should include the executive sponsor for the team and have representation from the business units that will be affected by the project. Legal counsel is a crucial part of teams involving compliance/litigation. The project team will have an important role in both scoping the project and ultimately in product selection. Deliverable: A team list. Solutions may involve a great deal of technical and process complexity. Enterprises must ensure that they either have the appropriate resources in place or are willing to acquire or build those resources. Deliverable: Appropriateness assessment. If the preliminary requirements can be met by a set of products but those products are excessively expensive, then the enterprise must reconsider either requirements or approach. This cost can be difficult to quantify due to extreme range in quoted costs. Deliverable: A rough-cut cost estimate that meets senior management expectations. An important part of the project is to prepare a business plan that explores the potential benefits of a particular solution and how they will affect different parts of the organization. It should explore market dynamics and include both an opportunity assessment and recommendations. Deliverable: Completed business plan. :: Month 1 :: :: Month 2 ::
  27. 27. <ul><li>Based on your answers to a series of questions about your environment, the Info-Tech “ Enterprise Content Management Readiness Assessment Tool “ will create an assessment of the ability of the enterprise to effectively support an ECM deployment. </li></ul>Leverage Info-Tech’s readiness assessment tool to determine if the enterprise is ready for an ECM deployment.
  28. 28. The business plan… is it necessary? Absolutely! … but it will be tough to put together. Info-Tech is commonly asked a basic question: “What numbers should I put in a business case?” The numbers for an ECM business plan can be exceptionally difficult to determine. What is more important is to establish a solid business purpose for the project. Consult with the different business units to determine the needs and direction and use those to create a common direction for the ECM project. Be aware that any numbers will be subject to criticism from other stakeholders. IT’s concerns about storage growth may be dismissed with “but disk is cheap” while counsel’s fears about litigation are met with “it’s a rare event.” ROI may not be important but common purpose is. If there is no common purpose there is no ECM project. Whatever your driver, one of the biggest challenges is access. If you want to go by dollars and cents, it’s going to be hard. Make sure you have a solid business case – the driver does not have to be dollars and cents , we had a disaster is a good enough reason. You need to have a solid understanding of why you are implementing ECM. IT Consultant, Financial Services “ ”
  29. 29. Finding numbers for a business case is difficult, but there is some low-hanging fruit Getting a hard ROI is very difficult for ECM unless you’re talking about filing cabinets. Analyst, Professional Services Firm “ ”
  30. 30. ECM costs vary drastically 0 Consider: A power generation and distribution company wanted to deploy an ECM solution to manage internal documents for 150 users. The team originally considered extending their existing SharePoint deployment. Their requirements were not, however, met by SharePoint given their needs for compliance driven records management and their need to maintain engineering drawings. RFPs revealed a wide range in estimated costs. Option 1: Existing technology (SharePoint Services) Concerns: SharePoint Services was inexpensive. It could meet rudimentary business efficiency needs for knowledge workers but was wholly inappropriate for both compliance considerations and the needs of knowledge workers. $6,000 $0 licensing Consulting 30% of total Option 2: Existing technology (SharePoint Server) Concerns: SharePoint Server was more appropriate for the project. The project team still had concerns about its appropriateness for records and for engineering drawings. Option 3: RFP from leading ECM vendors Concerns: The RFP responses varied widely in their quality and approach. The team was impressed, however, with the solutions built specifically for their needs and their industry. This domain experience was important for final selection. $105,000 $40,000 licensing Consulting 50% of total $250,000 to $1-million Requirements are crucial. Poorly scoped projects create widely variable RFPs that are very difficult to evaluate. Info-Tech Insight:
  31. 31. SharePoint costs are more predictable than those of ECM suites. On average, WSS costs $36 per user while MOSS costs $704 0 Info-Tech Research Group *Cost are per year, and will vary depending on implementation size, licensing agreements, degree of customization and use of third party solutions. Source: Info-Tech Research Group Consulting Cost per User $15 Hardware $21 License Consultant $352 Hardware $112 License $240 Cost per User WSS costs $36* per user per year, and comes with basic functionality appropriate for smaller organizations with basic needs. MOSS costs $704* per user per year and comes with advanced functionality options such as indexing. Our needs are completely met right now with WSS 3.0. We have no intentions of upgrading. - IT Manager, Large Healthcare Organization “ ”
  32. 32. Estimating the rough cut ECM cost for other ECM suites requires estimation of licensing, hardware & consulting Info-Tech Research Group Consider: A IT leader for a $100-million professional services firm has been asked to look into ECM. She doesn’t know if she can get capital approval. She estimates that a solution with 100 users should cost about $700,000. She knows that she could never get approval for a project of that size so she goes back to the stakeholders to reconsider the size of the deployment. Component A: Licenses Component B: Hardware Component C: Consulting <ul><li>There are two licensing components: </li></ul><ul><li>Repositories ($10,000) </li></ul><ul><li>User seats ($2,000) </li></ul><ul><li>Licensing = Repositories * $10,000 + Users * $2,500 </li></ul><ul><li>Include one repository for each application (records management, document management, or WCM). </li></ul>Take the base licensing component and multiply it by 0.25: Hardware = Licensing * 0.25 The consulting ratio will depend on the size and complexity of the deployment and enterprise. Consulting = Licensing * (Enterprise Revenue / $1 million) ^ 0.25 If the deployment is only departmental, scale revenue appropriately. Rough Cut ECM Cost = Licensing + Hardware + Consulting Use this formula in Excel to determine the Rough Cut ECM Cost: = (numRepositories * 10000 + numUsers * 2000)*(1.25 + (enterpriseRevenue/1000000)^0.25) Info-Tech Recommends:
  33. 33. <ul><li>Customize the Info-Tech “ Enterprise Content Management Business Plan Template ” to create a business plan that is appropriate to share with project stakeholders. </li></ul>Info-Tech’s Enterprise Content Management Business Plan template provides the next step for determining if ECM is appropriate
  34. 34. Months 3 & 4 of an ECM project get to the vendor shortlist Info-Tech Research Group Create requirements. Decide: Existing technology or go-to-market. Identify Vendors. Prepare RFP. Shortlist vendors. Moving from project objectives to a tactical plan requires the creation of functional requirements. They must identify what the system should do and, ideally, how it should be done. Deliverable: Completed solution specification. Many ECM initiatives can be accomplished using technology that the enterprise has already licensed (e.g., SharePoint). That technology must be evaluated for appropriateness for the business requirements. If it isn't appropriate, move to the next step. For more information on SharePoint for ECM, see “ Evaluate SharePoint for ECM .“ The next step is to identify potential suppliers of packaged solutions. This long list should include considerations such as solution architecture, functional requirements, and vendor reputation. The list should be compiled in consultation with the project team. Deliverable: Vendor long list. The vendors must be compared in a consistent manner. The RFP presents an opportunity to ask questions that reflect requirements to potential vendors. The completed RFPs should then be assessed with consideration of both the requirements and the business plan. Deliverable: Completed RFP The project team must evaluate the RFPs to determine which vendor presents the best potential fit for the enterprise. Deliverable: Vendor short list. :: Month 3 :: :: Month 4 ::
  35. 35. <ul><li>Holistic approach to collaboration; no other vendor provides all of SharePoint’s capabilities within one solution. </li></ul><ul><li>Solution works seamlessly with the whole Microsoft stack. </li></ul><ul><li>Due to its momentum in the market, most vendors have also created integration modules that allow easy connection to SharePoint. </li></ul><ul><li>In the 2010 release, SharePoint Foundation 2010 (free) will replace WSS and SharePoint Server 2010 (paid) will replace MOSS. </li></ul><ul><li>Pricing under an Open Agreement without software assurance is: $4,389 for each server license, $93 for each Standard CAL, and $74 for each Enterprise CAL (CALs are additive). </li></ul>SharePoint is the product of choice for many enterprises. It excels for basic knowledge worker support & collaboration, but also presents weaknesses Info-Tech Research Group Product: Microsoft Office SharePoint Server 2007 We are really exclusively a Microsoft shop and had dabbled with SharePoint 2003 and that fizzled out as the organization wasn’t ready. Then recently we had a project on the horizon that needed over 20 collaborators and we needed a way to keep them organized. So then we decided to go with SharePoint 2007. - IT Manager, Business Services “ ” Strengths Weaknesses <ul><li>Market leader in terms of adoption; 53% of customers are currently using a version for collaboration. </li></ul><ul><li>SharePoint sitting on the backend can greatly improve the functionality of Office tools (e.g. extend Excel’ power). </li></ul><ul><li>The 2010 version of SharePoint is on the verge of release, improving much of the team-based collaboration, search and content management and business intelligence functionalities. </li></ul><ul><li>Total cost of ownership for all capabilities is lower than purchasing each functionality through pure play vendors. </li></ul><ul><li>Organizations often implement SharePoint “piece-meal” i.e. one ad hoc implementation per department – managing this is a major headache for IT. A proper governance plan and strategy is recommended. </li></ul><ul><li>Much stronger at document management than at Web 2.0-type collaboration in 2007. </li></ul><ul><li>Implementing and getting started with SharePoint can be very easy but complex scenarios require resources trained in SharePoint. </li></ul>
  36. 36. SharePoint is not an appropriate choice if the project requires advanced records management or industry specific functionality <ul><li>Why? </li></ul><ul><li>The market is responding to the limitations of SharePoint and building solutions. </li></ul><ul><li>If it will meet needs, SharePoint is less expensive than other solutions. </li></ul><ul><li>Many users have experienced SharePoint before and are comfortable with the interface. </li></ul>If you are an MS Shop and SharePoint’s native functionalities meet your business needs, it is your best option; it’s relatively cheap and easy to deploy. Dis qualify it before looking to other vendors. Use SharePoint How to dis qualify SharePoint <ul><li>Technical Factors </li></ul><ul><li>Microsoft shop </li></ul><ul><li>Run SQL Server </li></ul><ul><li>Use .NET development </li></ul><ul><li>Business Factors </li></ul><ul><li>Document Management </li></ul><ul><li>Content Management </li></ul><ul><li>Basic functionality required </li></ul><ul><li>Little need for customization </li></ul><ul><li>Technical Factors </li></ul><ul><li>Not a Microsoft Shop </li></ul><ul><li>Java or Adobe is used </li></ul><ul><li>Business Factors </li></ul><ul><li>Records Management </li></ul><ul><li>Industry specific </li></ul><ul><li>High level of compliance and security needs </li></ul><ul><li>Need a solution, not a tool </li></ul>Info-Tech Research Group
  37. 37. SharePoint 2010 offers new features for content management, but it still isn’t as full-featured as most ECM suites <ul><li>Content recovery at site and list level </li></ul><ul><li>Management of unstructured silos </li></ul><ul><li>Content type syndication </li></ul><ul><li>Individual development </li></ul><ul><li>Enhanced metadata management </li></ul><ul><li>Content authoring, publishing, deployment </li></ul><ul><li>Workflow </li></ul><ul><li>Records repository </li></ul><ul><li>Slide libraries </li></ul><ul><li>Navigation Controls </li></ul><ul><li>Document information panel </li></ul>New features in MOSS 2007 <ul><li>Site templates </li></ul><ul><li>User profiles </li></ul><ul><li>Audience targeting </li></ul>2003 For more information on SharePoint, see Info-Tech’s “ Evaluate SharePoint for Enterprise Content Management .”
  38. 38. If SharePoint 2010 is the choice, prepare for deployment by mid-2011. By the end of 2012 there will only be laggards left Info-Tech Research Group <ul><li>IT leaders were critical of the limited support for MOSS 2007 when it launched. </li></ul><ul><li>Adoption intentions indicate that there will be channel support established by mid-2011. </li></ul><ul><li>Microsoft has already created more documentation for SharePoint 2010 than for MOSS 2007. </li></ul><ul><li>Enterprises that adopt SharePoint 2010 after 2012 will be late to the party and can probably afford to wait for the next major release. </li></ul>SharePoint 2010 appears to have capabilities that are sadly lacking in earlier versions. - CIO, Mid-sized Business Services Organization “ ” Support for SharePoint 2010 will be mature by mid-2011, mainstream by mid-2012
  39. 39. ECM Suites are present alternatives to SharePoint. They are only appropriate for enterprises that must provide at least two of the functional areas of ECM Info-Tech Research Group Document Management ECM Suites Web Content Management Records Management Potential Providers For more information, see Info-Tech’s “ Select the Best Enterprise Content Management Suite ” Other sources of vendor information include the DOD 5015.2-STD product register (for Records Management) and the AIIM Solution Provider Locator .
  40. 40. Many vendors provide ancillary tools for ECM Info-Tech Research Group Wikis and blogs Search Analytics Digital Asset Management Workflow Archiving eDiscovery Capture Forms
  41. 41. Do small businesses need full-blown ECM? Probably not … but they still need to handle the problems of ECM. Info-Tech is commonly asked a basic question: “Can I do ECM for less than $50,000?” The answer is no. You can, however, put together a solution to address the basic requirements. The most common problem is related to the need to support knowledge workers. In these cases, Windows SharePoint Services or SharePoint Foundation can deliver basic capabilities with little licensing costs. Other enterprises turn to collaboration services to get basic document management features without the expense of an entire suite. SaaS is starting to present a third option. SaaS-based ECM can be an affordable option for enterprises that need to support fewer than 50 users with tightly defined requirements. Vendors include: Inexpensive systems that fail to meet enterprise needs for records will not be successful. Either keep them out of the project scope or select a system that will meet basic requirements. Info-Tech Recommends: For more information on SharePoint, see Info-Tech’s “ Select the Right Collaboration Platform .”
  42. 42. By the end of six months, the vendor should be selected & the project focus should turn to deployment Info-Tech Research Group Conduct demonstrations Perform due Diligence Negotiate Plan deployment Shortlisted vendors should conduct a product demonstration at the enterprise's site. The content of the demonstration should be scripted to a certain extent by the enterprise. Scoring of the demonstrations should happen immediately upon the conclusion of the demonstration. Deliverable: Completed vendor score cards. The demonstration process will likely result in a very short list including only a few vendors. The analysis must now shift to confirming the ability of these vendors and their integration partners to successfully complete the project. The final purchase price and contract terms must be negotiated with the vendor. This process ultimately results in a signed contract. Deliverable: Finalized contract. The implementation process begins with the creation of detailed deployment plan. The preparation of the deployment plan will occur in conjunction with the vendor and the implementation partner. Deliverable: Detailed deployment plan. :: Month 5 :: :: Month 6 ::
  43. 43. Teams recognize that end-user adoption is the most important component of ECM project success but underemphasize the importance of formal deployment & maintenance Info-Tech Research Group IT teams recognize that end-user adoption is the most important aspect of ECM success. They often emphasize factors like the use of a formal deployment approach and gaining executive support. This effort comes at the expense of other factors like planning for deployment and maintenance. Functionality is a thimble-full compared to the bucket-full required for end-user adoption. ECM implementation changes end-user lives. - IT Leader, Non-Profit “ ”
  44. 44. End-users need to be involved in the project at every stage Info-Tech Research Group <ul><li>Wrong Way: </li></ul><ul><li>Ignore end users completely. </li></ul><ul><li>Assume that if you build the solution, the users will come. This problem is acute with knowledge workers. </li></ul><ul><li>Assume that if you mandate that process workers use a system, that they will use it consistently and well. </li></ul><ul><li>Impact: </li></ul><ul><li>There is no ROI on ECM if users don’t actually use the system. </li></ul><ul><li>Paying maintenance on shelfware is particularly painful. </li></ul><ul><li>Trying to save a poorly adopted ECM system is costly in terms of IT effort and support. </li></ul><ul><li>Right Way: </li></ul><ul><li>Engage end users at all stages of the project. </li></ul><ul><li>Involve them when establishing the business case for the project and when determining business requirements. </li></ul><ul><li>Remember that different groups of users will be involved for each area of the ECM business case. Records managers and legal counsel should be involved for litigation/compliance, IT administrators need to be involved when considering IT efficiencies, and the appropriate business users need to be consulted. </li></ul><ul><li>Train, train, and train some more. </li></ul><ul><li>Impact: </li></ul><ul><li>End user adoption is key to successful ECM. </li></ul><ul><li>Projects with high levels of end-user involvement also report high levels of success for on-time and on-budget project completion. </li></ul>Train, train, train. – VP of HR, Telecommunications “ “
  45. 45. Training will make or break your ECM deployment. Take a formal approach to ensure end-user adoption   Info-Tech Research Group Formally train IT staff Create an advanced manual Formally train early adopters Create minimum manuals Early adopters help with training within department Find early adopters in each department Monitor end-user adoption and adjust training as needed Advanced Manual Minimum Manuals <ul><li>A run book; include network configurations, reboot procedures, monthly/daily maintenance, and troubleshooting guidelines. </li></ul><ul><li>Have one copy in IT. </li></ul><ul><li>A step-by-step description of the tasks to be performed by a department; include screen shots, written descriptions, and an index. </li></ul><ul><li>Have one per department, tailored to that department. </li></ul>Early Adopters <ul><li>An employee in a department that is quick to adopt new technologies and processes. </li></ul><ul><li>Usually someone who has recently joined the company and has not developed habitual methods of doing things. </li></ul>= Training phase = Action item
  46. 46. Formal IT capacities & processes have an important role in ECM success Info-Tech Research Group “ <ul><li>Wrong Way: </li></ul><ul><li>Assume that the ECM project ends after it is deployed. </li></ul><ul><li>Consider only today’s ECM requirements without any consideration for what future needs may be. </li></ul><ul><li>Conduct the ECM project without any consideration of existing IT frameworks or policies (e.g., storage, authentication, networking, etc.) </li></ul><ul><li>Impact: </li></ul><ul><li>ECM projects executed without project management and standard development competencies run over-budget and over-time, compromising the key IT efficiency goals of ECM. </li></ul><ul><li>Implementations without attention to security and authentication compromise ECM goals related to compliance and litigation defense. They can also generate data outages and drive poor user involvement. </li></ul><ul><li>Projects that are too fragile to support either knowledge workers or process workers achieve poor adoptions. </li></ul><ul><li>Right Way: </li></ul><ul><li>Use formal processes for the ECM project. Focus specifically on project management and development processes. </li></ul><ul><li>Train IT administrators in the nuances of the new system. </li></ul><ul><li>Prepare the appropriate documentation. </li></ul><ul><li>For more guidance, refer to the Info-Tech “ OptimizeIT ” resources for Project Management and Applications Management. </li></ul><ul><li>Impact: </li></ul><ul><li>ECM projects that are deployed with attention to formal processes are generally more successful. </li></ul><ul><li>The real cost of ECM is in the care and feeding of the system following the implementation. Appropriate use of formal IT processes ensures that this lifespan is as predictable and repeatable as possible. </li></ul>
  47. 47. Training isn’t limited to end-users. It’s also an important part of IT administration & support 35   How to Train IT Staff in ECM: Info-Tech Research Group If given the chance, 75% of organizations would put more effort into SharePoint IT Training <ul><li>If a consultant was used, have them develop a series of training sessions that cover every aspect of SharePoint. </li></ul><ul><li>If not, training must be an effort coordinated between the business unit and IT. Ultimately, workers want a solution to a business problem, not more technology. </li></ul><ul><li>Design the training sessions to be interactive and no longer than 90 minutes each. </li></ul><ul><li>Refer to, and update, the Advanced Manual regularly. </li></ul>
  48. 48. Formal deployment plan & executive support is important, but should not trump governance Info-Tech Research Group <ul><li>Wrong Way: </li></ul><ul><li>Focus only on the deployment approach without addressing the real requirements of users. </li></ul><ul><li>Only talk to executives about the project needs rather than actual end-users. </li></ul><ul><li>Impact: </li></ul><ul><li>Projects that meet with IT success (on-time and on-budget) but don’t meet the requirements of the end-users are failures, regardless of what executives think. </li></ul><ul><li>Right Way: </li></ul><ul><li>Remember that ECM is a business project, not an IT project. </li></ul><ul><li>Focus on the needs of the end-users and how to meet them. </li></ul><ul><li>Use executive support to effectively drive user engagement. This support is necessary for busy end-users to get the necessary time and encouragement to actually engage in training on the new system. </li></ul><ul><li>Prepare to transition from “deployment” to “governance”. </li></ul><ul><li>Impact: </li></ul><ul><li>ECM project success occurs during the lifetime of the project, not during deployment. </li></ul>
  49. 49. ECM governance: recognize that ECM technology must interact with policy & control technology Info-Tech Research Group ECM technology automates the administration of the policy. But controls are still required to ensure that the policy is being met. The use and management of ECM systems must be guided by policy. IT Efficiency Compliance Litigation Business Efficiency
  50. 50. Most ECM projects overlook the importance of control technology Info-Tech Research Group Policy Policy must generally dictate how content is used, who can access content, how content is described and retrieved, and how it is disposed. Each functional area of ECM has its own policy requirements. Compliance/litigation requires policy governing acceptable use and retention. IT efficiencies also requires policy that dictates how content is accessed using existing storage, networking, and authentication tools. Business efficiencies are enacted in policies mandating business processes. ECM Technology ECM technology provides a means for facilitating polices. Compliance retention schedules, for example, can be automated. Similarly, the work processes of both knowledge and process workers can be facilitated using ECM technology. Control Technology All business procedures require controls to ensure that the procedures are completed appropriately. ECM is no different. The term “control technology” entered the business lexicon in the wake of the business scandals that promulgated Sarbanes-Oxley. Auditors and judges now know to ask whether or not a policy is consistently applied. The only way to demonstrate its application is via controls. Consider: A female employee left a legal firm following allegations of sexual harassment. She sued her former employer. As part of the discovery process, her team requested copies of all email containing certain defamatory words that had been sent by her manager during the final year of her employment. The legal firm maintained that those emails wouldn’t exist because their employee handbook explicitly prohibited such language (i.e., policy). Furthermore, they regularly audited their email repository for occurrences of that type of language and disciplined infringing employees appropriately (i.e., control technology).
  51. 51. Info-Tech Research Group ECM Triggers Applications Key Factors Technologies Records Management Document Management Web Content Management Ancillary Technologies Deployment Plan & Costs Vendors Success Factors Trends Future Factors
  52. 52. The ECM market has consolidated drastically in the last six years & a limited number of vendors dominate
  53. 53. There are still opportunities for vendors that can take advantage of new trends <ul><li>It all comes down to lowering the cost of development and deployment. </li></ul><ul><li>The ECM market is changing dramatically. Four key forces are driving the ongoing consolidation and change: </li></ul><ul><li>Both customers and prospects are unhappy with the traditionally high cost of on-premise software licenses and maintenance. </li></ul><ul><li>The vendors are experiencing margin pressure forcing them the consider options that have lower costs of development and sales. </li></ul><ul><li>Industry specialization is becoming increasingly important as enterprises recognize the ECM is a business unit sell, not an IT sell. </li></ul><ul><li>SharePoint is dominating in the mid-market. </li></ul><ul><li>The industry is responding: </li></ul><ul><li>The major vendors are introducing options that enable their customers to consolidate their spend on a “one stop shop” for their applications strategy. All of these vendors offer some degree of integration with SharePoint </li></ul><ul><li>Open source ECM options from vendors like Alfresco and Nuxeo are gaining in popularity. They take advantage of open source modules to reduce the cost of deployment and give enterprises the option of acquiring the product with limited up front investment and then purchase support as their needs expand. </li></ul><ul><li>SaaS options are becoming more important. They enable enterprises to attain relatively fast implementations with little IT intervention or upfront investment. These options will continue to increase in popularity. </li></ul>
  54. 54. Summary Info-Tech Research Group <ul><li>Full ECM solutions are not always right for the enterprise. Take the time to determine business and technology requirements before looking into vendors. </li></ul><ul><li>Enterprise readiness is key to ECM success. If you jump before you look, chances are you’ll land on the rocks. </li></ul><ul><li>Improved internal technology efficiencies, better response and adherence to compliance and litigation, as well as increased employee productivity, all contribute to the bottom line and drive ECM adoption. </li></ul><ul><li>The business case is the best way to communicate to the business and obtain buy-in and support. Avoid wishy-washy statements and be sure to focus on the bread and butter of the organization – increased revenue, decreased costs, and risk mitigation. </li></ul><ul><li>Info-Tech offers two tools to assist your organization with ECM: </li></ul><ul><ul><li>“ Enterprise Content Management Readiness Assessment Tool ” </li></ul></ul><ul><ul><li>“ Enterprise Content Management Business Plan Template ” </li></ul></ul>