An IDC White Paper sponsored by RicohSeptember 2012   Executive Summary                 Organizational Blind Spot:        ...
Improving Document Processes                                    •	 Among consumers who are dissatisfied with companies’Yie...
Conventional wisdom has clearly missed the key point.Document-driven business processes are not just a                Focu...
tablets into existing document-driven business processes.      IDC Study Methodology  New requirements in document managem...
Definitions                                                    About IDCThe following definitions were used for this study...
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Organizational Blind Spot - the role of a document driven business process


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Improving Document Processes
Yields Strategic, Top-Line Benefits
While Reducing Bottom-Line Costs

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Organizational Blind Spot - the role of a document driven business process

  1. 1. An IDC White Paper sponsored by RicohSeptember 2012 Executive Summary Organizational Blind Spot: The Role of Document-Driven Business Processes in Driving Top-Line Growth Angèle Boyd // Joseph Pucciarelli // Melissa Webster
  2. 2. Improving Document Processes • Among consumers who are dissatisfied with companies’Yields Strategic, Top-Line Benefits document processes, 60.1% would switch to anotherWhile Reducing Bottom-Line Costs provider and 56.8% would likely tell others about their dissatisfaction.Findings from a recent IDC study indicate that document- • Respondents estimated that they could speed the time todriven processes — the business processes that are get products to market by 13.4% by streamlininggoverned and controlled by documents in electronic or new product development, manufacturing, and supplypaper format — have a profound impact on companies’ chain functions.customer-facing functions. Furthermore, reengineeringthese document processes can yield strategic, top-linebenefits including revenue growth and improved market Busted Myth: The impact of improvingresponsiveness, which this study found to be the highest- document-driven business processes appliesrated business priorities for enterprises today. Despite the only to reducing costs through back-officebelief held by many business executives that document- efficiencies.driven processes relate only to “back office” functions, IDCresearch indicates that this conventional wisdom is off IDC Finding: Over 83% of study respondents found thatthe mark and that optimizing document-driven processes optimizing document-driven business processes wouldpresents a significant revenue growth opportunity. increase revenue on average by 10.1% and could speed timeIDC’s recent global study of 1,516 document-driven to market by 13.4%. Document-driven business processes have a strong impact on strategic, top-line growth process owners and information workers suggeststhat common perceptions around document-drivenbusiness processes are mistaken. Businesses have placed a Business partners — suppliers and distributors — playgreat degree of focus on improving their business processes, a key role in today’s economy, and the health of theirand many may believe they have achieved optimum document processes directly affects the enterprise. Moreefficiency in their document-driven processes. While it is than 75% of study participants believe it is importanttrue that improving document-driven processes can have that their supply-side and distribution-side partnersa strong impact on reducing operational costs — and this have effective document processes, but only about halfstudy shows there is still room for improvement in this area are satisfied with the state of their partners’ processes.— it can have an even greater impact on an organization’s Enterprises must work to ensure that the partners theytop-line potential for revenue. select are placing appropriate emphasis on document- driven business processes.Specifically: The introduction of tablets into the enterprise is part• Over 83% of study respondents indicated that of a new wave of enterprise computing. It is improving optimizing customer-facing document-driven business employee productivity and allowing organizations to more processes would increase revenue — on average by rapidly address market needs, but at the same time it is 10.1%. This could be achieved by improving customer dramatically changing the way employees interact with communications, streamlining the sales and customer document-driven business processes. The intersection of onboarding process, and improving customer support. tablets and document-driven processes is still not clearly• In their role as consumers, more than half of the defined or fully understood. Many organizations are aware respondents are dissatisfied with the document-driven of the importance of making existing document processes processes in six of the seven industries studied: business work with tablets, with one in three organizations currently services (64.9%), government (63.9%), healthcare investing to reengineer existing document processes to (63.1%), education (62.3%), insurance (54.3%), and account for them. But to make all necessary processes fully telecommunications (51.8%). tablet compatible, organizations need to increase their focus on this area. 2
  3. 3. Conventional wisdom has clearly missed the key point.Document-driven business processes are not just a Focus on document-driven processes forback-office phenomenon; they are critically important strategic upside. … These changes canfor strategic, revenue-generating activities. Process help improve customer-facing potentialimprovements can both reduce costs and increase revenue and reduce overall operating costs.— a win-win scenario. This is one of those rare areaswhere there is no downside to investing in improvements.Organizations that do not place a high priority on • Focus on document-driven processes for strategicimproving their document processes are missing a golden upside. There is little downside to optimizing customer-opportunity, but companies need to focus executive-level facing processes. Many strategic initiatives focus strictlyattention and take action — now. on cost, while other initiatives aim to yield strategic benefits. Optimizing document-driven business processes is the rare initiative that achieves both goals: CompaniesImproving document-driven processes can improve efficiency and benefit from the strategicincreases top-line revenue and reduces upside by improving customer relationships — it is abottom-line costs — a win-win. There is no no-lose scenario.downside to investment, but companies • Recognize that ineffective document processes damageneed to act now. customer relationships and hence your company. Some executives may believe that their document-driven business processes do not play a customer-facing role. OneEssential Guidance should not fall victim to this perception. This study found the opposite is true. Customers believe it is important thatDocument-driven processes are critical information arteries the companies they do business with have efficient andthat drive organizations’ financial results — both top line effective document processes, and many are dissatisfiedand bottom line. They facilitate information flows throughout with the state of the processes of those organization, between an organization and its business Dissatisfied customers will take their business elsewhere,partners, and between an organization and its customers. will tell others not to do business with the companies, andCustomers and partners care about them, and process will post negative reviews of the companies.owners and information workers depend upon them. • Take an extended view of document processes to includeGiven the systemic impact of document-driven business supply chain and distribution partners. In the modernprocesses on organizational outcomes, IDC believes that economy, it is no longer adequate to take a traditionalthese processes merit significantly more C-level executive wall-to-wall approach. Business processes now stretchtime and attention than they currently receive. Survey across continents and often require intimate connectionsparticipants agree: Over 40% believe that investments to with business partners and suppliers throughout theimprove document processes should receive higher priority value chain. Addressing the effectiveness and efficiency ofthan other similar investments. In addition, as the pace suppliers’ and distributors’ document-driven processes isof business continues to accelerate, the economic stakes critical for global enterprises to maximize business results.associated with these business processes continue to escalate. • Prepare your enterprise for tablet usage to avoid puttingIDC believes that many businesses are now at or near new stresses on document processes. Tablets have alreadythe bottom of the cost reduction trough. These businesses made significant inroads into organizations, and inare now seeking opportunities to improve market share the future, their penetration will only increase. But theand better position themselves when the global economy intersection of tablets and document-driven businessresumes sustainable growth. Given this environment, IDC processes is not clearly defined. There is a significantoffers the following guidance: and growing requirement among businesses to integrate 3
  4. 4. tablets into existing document-driven business processes. IDC Study Methodology New requirements in document management include the need to scan to cloud and the need to address The information for this white paper came from a global security issues around tablet printing both inside and survey plus two focus groups of U.S. executives, all of outside the firewall. which were conducted in 4Q11. IDC surveyed 1,516 process owners and information workers from IT, finance,• Make document process repair a high priority for and line-of-business management from organizations of C-level executives. C-level executives are extremely busy over 500 employees. These individuals all had responsibility and must constantly balance competing interests and for business processes that required multiple documents. priorities. But the optimization of document processes Respondents were randomly recruited and screened from needs to be among those priorities. Previously published international panels and came from eight countries: the results from this study demonstrate that addressing United States, Canada, the United Kingdom, France, issues in document processes is not receiving a Germany, Australia, China, and Japan. Global data was significant amount of C-level attention, with about 80% derived by weighting the IT executive survey by country of organizations delegating responsibility for it under the GDP. The survey was conducted over the Internet and C-level. But only C-level executives have the authority administered in the local language. All numbers in this and span of control to implement appropriate change, document may not be exact due to rounding. and C-level executives uniquely have responsibility for both revenue-generating and cost-cutting initiatives. Respondents were asked about priorities, issues, and Fixing document processes should be the responsibility investments across 23 separate business processes: customer of C-level executives. onboarding, sales, new product development, customer service, marketing/customer communication, insurance/Addressing issues in document-driven processes is one of claims processing, billing and collection, HR (employeethose rare areas where there is no downside to investing in onboarding, benefits, dismissals), demand planning,improvements. These changes improve an organization’s manufacturing (shop floor, inventory), distributioncustomer-facing potential and enable cost savings. It is channel management, vendor/supply chain management,an item that every organization should actively consider engineering/R&D, legal (contracts, litigation),and an item that should be at the top of most C-level medical (patient medical records), IT infrastructure/executives’ to-do lists. desktop support, financial planning and reporting, asset management, business continuity/risk assessment, compliance/audits, change/problem management, business monitoring and controls, and information security. Data was gathered both at the individual process level and in three higher-level rollups: customer-facing, non-customer- facing, and risk mitigation processes. This survey was supplemented by two focus groups of U.S. executives. One group consisted of line-of-business executives, and the other consisted of IT and finance executives. The individuals in both groups had oversight of or control over a variety of document-driven business processes for their organizations. Respondents were drawn from organizations with over $1 billion in revenue and from a range of industries. Representative titles included VP Strategic Planning, VP Sales, General Manager, VP Global Marketing, Chief Security Officer, VP Global Resources, Senior VP Technology Planning, VP Global IT, Corporate VP Finance Technology, and VP/Treasurer. 4
  5. 5. Definitions About IDCThe following definitions were used for this study: International Data Corporation (IDC) is the premier• Document-driven business processes are performed global provider of market intelligence, advisory by one or more groups within the organization and services, and events for the information technology, are governed or driven by information captured in telecommunications, and consumer technology markets. documents. Documents can be paper (printed, scanned, IDC helps IT professionals, business executives, and the or entirely paper based) or electronic, or they can investment community make fact-based decisions on migrate between paper and electronic during the technology purchases and business strategy. More than end-to-end life cycle of the business process. The term 1,000 IDC analysts provide global, regional, and local is also shortened to “document-driven processes” or expertise on technology and industry opportunities and “document processes” in places. trends in over 110 countries worldwide. For more than 48 years, IDC has provided strategic insights to help our• Customer-facing business processes govern customer- clients achieve their key business objectives. IDC is a facing activities including sales, customer onboarding, subsidiary of IDG, the world’s leading technology media, customer communications, customer service and support, research, and events company. You can learn more about billing and collections, and new product development. IDC by visiting• Non-customer-facing business processes govern non-customer-facing activities including employee Copyright Notice onboarding, demand planning, manufacturing, purchasing and vendor management, desktop support, External Publication of IDC Information and Data – any business continuity, audits, and financial controls. IDC information that is to be used in advertising, press• Compliance and risk mitigation or management releases, or promotional materials – requires prior written processes cover activities including business continuity, approval from the appropriate IDC Vice President or compliance, auditing, customer due diligence, change/ Country Manager. A draft of the proposed document problem management, risk assessment, remote business should accompany any such request. IDC reserves the right monitoring, and information security. to deny approval of external usage for any reason. Copyright 2012 IDC. Reproduction without written permission is completely forbidden.IDC Corporate Headquarters5 Speen StreetFramingham, MA 01701 USATel: +1