Delivering A Return On Investment That Wins

Phillip Jones, Vice President

Reality
Budgets are often not in place Departments often compete for limited discretionary funds Customers can find money if they really want to The best ROI wins What area of the business will this serve? Is it targeting a critical objective? Who is the person presenting it?

Reality
82% of projects over $50,000 require an ROI Dont hope that your project is one of the 18%!

Customers often have a minimum threshold what is it?

Does your customer have the time and the skills to do the ROI? Will they let you participate in their process? Will they let you review their results?

Do you have the skills to do this yourself?

Reality

The most credible ROI wins, NOT the most incredible.

What To Use

Credible
Direct observation Customer Data (Historic Samples) Customer Estimates Surveys Case studies Benchmark / Industry Analyst Data Our Estimates

Incredible

Foundational Concepts

What is An ROI
The ratio of the average savings (of the first 3 years) to the initial

cost, expressed as a percentage.

(Year ($900k) 1, Year 2, Year 3) / / 3 ($600k) /3 / $400k) 3 ($200k ($200k + + $300k $200k + + $200k) /3 3 $300k $200k X 100 100 X 100 100X XXX 100 100 Initial Cost $500k $500k $500k $500k

40% 60%
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Payback Period
The time required for net savings to return the initial cost,

typically expressed in months.

Savings Payback Period

Time

Costs

Gathering Data

Positioning Your Solution Departmental Staff

Conduct a walk through of the target business area

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Mapping Organizational Pains to Goals Executive Strategic Objectives

Improve Underlying Profitability Drive Growth In Emerging Markets Improve Business Agility and Flexibility Standardize Global Processes and Systems Increase Revenue

Operational Goals
Leverage Best Practices Raise Productivity Improve Quality Expand Self-Service Options Optimize Operations Exceed Service Standards

Departmental Needs
Faster Response to Customer Enquiries Minimize Errors Simplify Processes Reduce Manual Tasks Real-time Tracking of Every Case

Where To Look

?
Labor Manual tasks Logistics Latency, movement, transportation Liability Anything that can go wrong

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Where To Look : Labor

Documents

Data

L
3

Labor

Sorting, Separating and Identifying Data Keyed From Documents and Image (Keystrokes) Duplication / Multiplication of Effort Photocopying Customer Interactions Handling exceptions Batch preparation

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Where To Look : Logistics

Data Movement
Shipping / transportation of documents On-site storage of documents Off-site storage of documents Filing costs Retrieval times Retrieval costs

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Where To Look : Liability

What Could Go Wrong?

Lost / Misplaced Documents Insecure Data / Documents
Compliance Issues

Liability

L
3

Exception Handling Customer Satisfaction

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Calculate Value
Quantify The Opportunity

ROI Calculator

Fill in the white cells!

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ROI Calculator

Enter data in the Calculations white cells! are Results shaded are highlighted

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ROI Calculator
Figures brought forward

Just enter the solution costs

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Calculating ROI
3 Year ROI Formula (Savings Yr1 + Savings Yr2 + Savings Yr3) / 3

Initial Cost

X 100

Payback & ROI

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Calculate: Labor

Documents
Activity Doc Prep / Sort Classification Manual Data Entry Copying & Filing Total: Savings $48,000 $12,000 $60,000 $3,600

Data
Branches 1 (central) 1 (central) 1 (central) 100 Total $48,000 $12,000 $60,000 $360,000 $480,000 $120,000
Eliminate Reduce Reduce Eliminate

L
3

Labor

$480,000
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Calculate: Logistics

Data Movement
Activity Shipping Storage Separator Sheets Photocopies File Folders Total: Savings $3,000 Branches 100 Total $300,000 $468,000 $50,000 $96,000 $20,000 $934,000
Reduce Eliminate Eliminate Reduce Eliminate

Logistics

L
3

$934,000
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Calculate: Liability

What Could Go Wrong?

Activity Search / Retrieve Reproduce Docs Customer Inquiries Total: Savings $4,000 $70 $250 Branches 100 100 100 Total $400,000 $7,000 $25,000 $390,000
Eliminate Eliminate Reduce

Liability

L
3

$432,000
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Payback & ROI

5 Months
$1,846,000
Saved Annually
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Payback in

What If The ROI Isnt That Good?

Check all your costs Add more document types Include more extraction fields Automate more activities Incorporate more processes Add other capabilities Extend to other departments Try to get credit for soft benefits Replace competitive solutions

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Thank you.
Phillip Jones Vice President, Field Enablement Phone: +1-949-375-3523 Email: phillip.jones@kofax.com