AIIM Market Intelligence Delivering the priorities and opinions of AIIM’s 80,000 community Industry Watch Paper Wars 2014 - an update from the battlefield Underwritten in part by: aiim.org l 301.587.8202 About the Research As the non-profit association dedicated to nurturing, growing and supporting the information management community, AIIM is proud to provide this research at no charge. In this way, the entire community can leverage the education, thought leadership and direction provided by our work. We would like these research findings to be as widely distributed as possible. Feel free to use individual elements of this I n research in presentations and publications with the attribution – “© AIIM 2014, www.aiim.org” d Wu Rather than redistribute a copy of this report to your colleagues or clients, we would prefer that you direct s t them to www.aiim.org/research for a download of their own. Permission is not given for other aggregators to ary host this report on their own website. t c Our ability to deliver such high-quality research is partially made possible by our underwriting companies, h without whom we would have to return to a paid subscription model. For that, we hope you will join us in thanking our underwriters, who are: -P aa Spigraph Group np 31, Boucle de la Ramée, ue BP 749, pr 38297, St-Quentin-Fallavier Cedex, dW France aa Tel: +33 (0)4-74-94-62-60 ters EWmeba:il w: w [email protected] aph.com fro 20 m1 4 t h e b a Process Used and Survey Demographics t t le fi While we appreciate the support of these sponsors, we also greatly value our objectivity and independence e as a non-profit industry association. The results of the survey and the market commentary made in this ld report are independent of any bias from the vendor community. The survey was taken using a web-based tool by 444 individual members of the AIIM community between Sept 12, and Oct 07, 2014. Invitations to take the survey were sent via e-mail to a selection of the 80,000 AIIM community members. Survey demographics can be found in Appendix 1. Graphs throughout the report exclude responses from organizations with less than 10 employees, and suppliers of ECM products and services, taking the number of respondents to 366. ©2014 AIIM - The Global Community of Information Professionals 1 About AIIM AIIM has been an advocate and supporter of information professionals for 70 years. The association mission is to ensure that information professionals understand the current and future challenges of managing information assets in an era of social, mobile, cloud and big data. AIIM builds on a strong heritage of research and member service. Today, AIIM is a global, non-profit organization that provides independent I n research, education and certification programs to information professionals. AIIM represents the entire d Wu information management community: practitioners, technology suppliers, integrators and consultants. s t ary About the Author t c Doug Miles is head of the AIIM Market Intelligence Division. He has over 30 years’ experience of working h with users and vendors across a broad spectrum of IT applications. He was an early pioneer of document management systems for business and engineering applications, and has produced many AIIM survey reports on issues and drivers for Capture, ECM, Information Governance, SharePoint, Mobile, Cloud, Social Business and Big Data. Doug has also worked closely with other enterprise-level IT systems such as ERP, BI and CRM. Doug has an MSc in Communications Engineering and is a member of the IET in the UK. -P aa np ue pr dW aa ters © 2014 fr 2 o0 AIIM The Global Community of Information Professionals m1 4 1100 Wayne Avenue, Suite 1100 th Silver Spring, MD 20910 e b +1.301.587.8202 a t www.aiim.org t le fi e ld ©2014 AIIM - The Global Community of Information Professionals 2 Table of Contents About the Research Opinions and Spend About the Research . . . . . . . . . . . . . . . . . . . . . . 1 Opinions and Spend.....................26 I Process Used and Survey Demographics ......1 Spend.................................26 n d About AIIM ..............................2 Wu s About the Author..........................2 Conclusion and Recommendations t ary Conclusion and Recommendations........27 t Introduction Recommendations . . . . . . . . . . . . . . . . . . . . . . . 28 c Introduction.............................4 References.............................28 h Key Findings.............................4 Appendix 1: Survey Demographics Paper in the Office Appendix 1: Survey Demographics .......29 Paper in the Office .......................6 Survey Background ......................29 Personal Paper Use.......................7 Organizational Size ......................29 Paper and Processes......................7 Industry Sector..........................30 -P Job Roles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 aa np Drivers for Paper Reduction ue Drivers for Paper Reduction ...............9 Appendix 2: Selective Comments pr dW Why So Much Paper?......................9 Appendix 2: Selective Comments .........31 aa Selective Comments......................31 ters Scanning and Capture fro 20 Scanning and Capture................... 11 Underwritten in Part By m1 4 t Underwritten in Part By ..................32 h e Scanning Characteristics Spigraph Group .........................32 b Scanning Characteristics ................ 11 AIIM ..................................34 a t t le fi Inbound Documents e ld Inbound Documents.....................12 Capture Adoption ........................12 Invoices ...............................13 Scan-on-Entry...........................14 Digital Mailroom Benefits and ROI...........14 Outsourcing Outsourcing ...........................16 Paper-Free Processes Paper-Free Processes ...................16 Decision Process ........................17 Triggers for Paper-Free Working ............18 Benefits and Issues ......................19 Issues.................................20 Lessons Learned ........................21 ROI...................................21 Mobile Capture and Cloud Mobile Capture and Cloud................22 Places for Mobile Capture .................23 Content for Mobile Capture ................23 Benefits and Issues ......................24 Cloud .................................25 ©2014 AIIM - The Global Community of Information Professionals 3 Introduction It feels like we have been fighting the paper wars for a very long time. These days the technological weaponry is cheaper, better, faster. The office troops are mobile, agile and highly computer-literate. The rules of engagement have legitimized scanned copies and digital signatures. Yet, most organizations are still fighting everyday battles with paper that clogs up offices and slows down processes. I n d The arguments for keeping electronic records to save office space, improve findability and reduce waste Wu are well rehearsed, and yet billions of unnecessary paper copies are still printed around the world every s t day. Meanwhile, we have moved on to another battlefront – paper-free processes. This presents a more ary resounding rallying cry for the corporate troops. Let’s join forces across the enterprise and fight for paper- t c free processes, rather than pursue that seemingly elusive paperless office. h A very strong case can be made for all-digital processes in improved productivity and lower costs, but the biggest impact is on speed of response - response to inbound mail, response to bottlenecks, response to regulatory changes, but above all, response to the customer, citizen or client. Business-at-the-speed-of- paper is not an appealing maxim and is likely to be completely unacceptable in a few years’ time, in what will be an increasingly mobile, remote-working, just-in-time world. In this report, we take an in-depth look at the amount of paper in the office, the battle plans to remove it, -P the take up of digital mailrooms and multi-channel capture, and the influence of mobile and cloud. Above aa np all, we look at the progress towards paper-free processes, the triggers and decision-making processes, ue and the issues, benefits and ROI. pdr W aa ters Key Findings fro 20 m1 Paper in the Office 4 t h n 68% of respondents agree that business-at-the-speed-of-paper will be “unacceptable in just e a few years’ time”. 46% consider that the biggest single productivity improvement for most of their b a business processes is to remove the paper. t t le n Only 35% of organizations have a maxim to drive paper out of the business, with just 19% fi e having endorsement at board-level. 56% have an environmental impact policy including reduced use ld of paper, but only 24% proactively promote it. n Overall paper consumption is decreasing in 44% of organizations compared to 35% three years ago. However, it is still increasing in 21%. Paper flowing through processes is decreasing for 46% of organizations, increasing for 25%. n Over half of respondents print personal paper copies to take to a meeting, or to add a signature. They also use printed copies for reading offline or out-of-the-office (50%), and particularly to review and mark-up (45%). n The average space taken up in offices to store paper is 13.5% (down from 15.3% in 2011). Respondents suggest that with electronic-only filing, this would halve to 6.7% in 5 years’ time. n Lack of management initiatives and the (perceived) need for physical signatures are given as the top reasons why there is still so much paper in business processes. There is also felt to be a general lack of understanding of paper-free options. Driving Paper Out n Improved searchability and sharability of business documents is the biggest driver for scanning and capture. Faster response to customers, improved process productivity and reduced physical storage space are also big drivers. n On average, 35% of scanned documents are 100% born digital i.e., unchanged from printer to scanner. 16% of scanned documents are photocopied before scanning, and 65% are not destroyed after scanning. ©2014 AIIM - The Global Community of Information Professionals 4 Capture at the Point of Entry n On average, 44% of invoices arrive as electronic (PDF, Fax, EDI). 59% of these will still end up as a paper copy, mostly printed prior to manual processing (39%). 13% print a copy and then scan it back in. Only 8% pass it directly to the capture system. n 27% “scan-at-the-door”, including 18% using distributed capture across multi-channel inbound I n content and 9% using a digital mailroom. 9% scan in advance of the process and 19% scan-to-archive d after the process. 45% only do “ad hoc scanning”. Wu s t n 38% of users showed an ROI from digital mailrooms within 12 months, and 60% within 18 months. ary Respondents list faster turnaround to customers and more efficient data capture as the main benefits. t c Outsourced Services h n Our respondents generally expect to spend more with service providers on scanning pre- process, both with and without data capture. Post-process imaging for archive is still growing, and there is still an appetite to spend more on back-scanning of paper records. Paper-Free Processes n 44% of organizations are only 10% towards their goal of paper-free processes. 23% have yet to achieve any, including 22% of the very largest organizations. 17% are updating processes at a rate of - P aa five or more per year. np ue n Legal and finance departments are considered to be the most resistant to paper-free working. A pdr W mandate from above is the most likely trigger for implementation, but cost saving in specific areas is the aa next most likely. ters fr 2 n 60% of users have seen ROI on their paper-free projects within 12 months, and an impressive o0 m1 77% within 18 months. Faster response to customers and higher productivity are seen as the biggest 4 t h benefits, along with improved remote and mobile availability. e b Mobile Capture a t n Two thirds of respondents recognize the importance of mobile devices for content access and tle data capture. 25% are keen to exploit mobile and 9% see it as a “required option for all processes”. fi e ld Cloud n 15% are already using cloud or SaaS for capture (including expense receipts), and 10% have immediate plans to do so. 42% are still setting cloud strategies. Spend n Spend intentions are strong in all software areas, particularly workflow and BPM, mobile, OCR/ ICR and AP/AR. Intended spend on scanners is largely neutral, except for mailroom scanners in Europe, where spend is set to grow. ©2014 AIIM - The Global Community of Information Professionals 5 Paper in the Office The good news from the battlefront is that 44% of the organizations we surveyed say that overall paper consumption is decreasing. Only 21% consider it to be increasing, so the net is 25% decreasing over increasing, albeit that a third see no movement in either direction. This compares with our survey three years ago where things were much more balanced – 35% decreasing and 32% increasing, so progress is I n being made. The largest organizations (5,000+ employees) are leading the way, with only 15% indicating d Wu an increase in paper compared to 43% seeing a decrease – a net of 28%. For the smallest (10-500 s employees) the net is 21%. atry t Figure 1: Would you say that the consumption of paper and/or number of photocopies c in your organization is? (N=362) h Increasing Decreasing rapidly, 5% rapidly, 7% Increasing somewhat, 16% -P Increasing aa Decreasing rapidly, 5% np ue Decreasingra pidly, 7% Increasing pr somewhat, dW somewhat, 37% aa 16% ters fr 2 o0 m1 Stable, 34% 4 t Decreasing h e somewhat, b 37% a When it comes to policies that drive a general reduction of paper, things are a little more disheartening. tt le Just over a third have a policy to drive paper out of the business and 24% have a proactive environmental fi e policy that includes the reduced use of paper. Even where these are in place, the policy will most likely Stable, 34% ld have been set below senior board level in all but 40% of cases, which explains the 21% with environmental policies that are largely ignored. Perhaps more commercial organizations should align themselves with the government seDcotno’rt where many follow a government mandate to reduceD opna’tp er – nearly half in that seYecst o–r know, 4% for the US and UK. know, 7% proac(cid:31)vely promoted, 24% Figure 2: Do you have a specific policy or maxim to “Drive paper out of the business”? Do you have an environmental impact policy that includes reduced use of paper? (N=385) Yes, Don’t 35% Don’t Yes –Yes –but Nkon,o w, 4% No, 37k%now, 7% proac(cid:31)venltyoa bkoedsy promoted, 60% much 24% no(cid:31)ce, 21% Probably, Yes, 11% 35% Yes –but No, 37% nobody No, Drive Paper Out Policy Environmental Impact Polticakyes 60% much no(cid:31)ce, 21% Probably, 11% Drive Paper Out Policy Environmental Impact Policy 0% 10% 20% 30% 40% 50% 60% 70% Consumption of paper in the office is decreasing for 44% of organizations surveyed, but still increasing for 21%. Two-thirds have no eTffoe ctatikvee tpoo al imcieees(cid:31) tnog drive out paper or reduce usage for environmental reasons. To add a signature To read offline or out of the office 0% 10% 20% 30% 40% 50% 60% 70% ©2014 AIIM - TThoe Grelovbieawl C aonmdm munaitryk o uf pIn wforitmha ctihona nPgroefsessionals 6 To kTeoe pta ak ele tgoa al o mr eaeu(cid:31)dnitg copy As a receipt orT coo andfidr ma asi(cid:31)gonna toufr oerder As a rTeof erereandc oeffl duinrein ogr a onu ot no-fs tchreee onffi pcreocess To reTvoie kwe eapn da mloacarkl ourp p weirtsho nchaal nfiglee scopy AsT ao hkaeredp cao lpeyg aolf oimr apuodrtita ncot peymails As a receipt or confirma(cid:31)on of order As a reference during an on-screen process To keep a localor personal file copy As a hard copy of important emails Increasing Decreasing rapidly, 5% rapidly, 7% Increasing somewhat, 20% Increasing Decreasing rapidly, 5% rapidly, 7% Decreasing Increasing somewhat, 39% somewhat, 20% Stable, 28% Decreasing somewhat, 39% Stable, 28% Increasing Decreasing rapidly, 5% rapidly, 7% Increasing somewhat, 16% Decreasing somewhat, 37% Stable, 34% Don’t Don’t Yes – know, 4% know, 7% proac(cid:31)vely Personal Paper Use promoted, Out of interest, we also asked our respondents why they personally might resort to paper copies. 592%4% print papers to take to a meeting This is good to avoid the distraction of laptops and tablets being used for email during the meeting, but bad in terms of additional copies – especially if the meeting secretary also Yes, prints copies just in case. Then comes the need to add signatures, despite there being perfectly secure and 35% Yes –but legally acceptable digital and electronic signing systems avaNiola, b37le%. Half print copies to read offline or nooubto doyf In the officNeo, ,i ndicating that use of tablets while traveling is not as prevalent as we think – or that paper ctoakpeies s d 60% much Wu carried in briefcases or read on the train are considered to be more secure than password-protected nmo(cid:31)ocbei,le s t devices. Of course, formally reviewing documents and marking up changes has been a challenge on m21o%st ary consumer-orientated mobile devices. Probably, t 11% c One aspect that we found interesting was the 20% who print a copy of a document (especially a form or h invoice) in ordeDr troi vhea vPea pa erer fOeruetn Pceo lwichyile entering data into an on-sEcnreveirno pnrmoceensst.a Al Ism ap saidcet Pquoelisctyion we asked how many employees are equipped with two screens – and more than half have only one-in-four able to work dual-screen, and in more than half of organizations, a quarter of employees mostly work from laptops – not an ideal situation for complex, multi-application working. Figure 3: For which of the following purposes do you personally resort to printing paper copies? (N=357) -P aa np 0% 10% 20% 30% 40% 50% 60% 70% uper dW aa To take to a mee(cid:31)ng ters To add a signature fr 2 o0 m1 To read offline or out of the office 4 t h To review and mark up with changes e b To keep a legal or audit copy a t t le As a receipt or confirma(cid:31)on of order fi e As a reference during an on-screen process ld To keep a localor personal file copy As a hard copy of important emails Paper and Processes When it comes to the process battlefront, progress is being made, but it is slow. Overall, 46% report that the amount of paper flowing through their business processes is decreasing compared to 25% where it is increasing – a net of 21%. This compares to our survey last year where 41% reported a decrease, but with 19% then seeing an increase, the net was 22% - a very small cInhcarnegasei.n g Decreasing rapidly, 5% rapidly, 7% Larger organizations are making much greater progress, with a 55% reporting a decrease, and a net of 41%, compared to the smallest with 36% reporting a decrease and a net of just 10%. Although it could be argued that smaller organizations would struggle to justify extensive investImncerenat sinin gc apture systems, somewhat, 20% scanners and MFPs are ubiquitous, and as we will see, many transactional documents arrive electronically in the first place. On top of that, more than half of this group are 100-500 employee organizations, where significant numbers are employed in administration and process-based operations. Decreasing somewhat, 39% Stable, 28% ©2014 AIIM - The Global Community of Information Professionals 7 Increasing Decreasing rapidly, 5% rapidly, 7% Increasing somewhat, 16% Decreasing somewhat, 37% Stable, 34% Don’t Don’t Yes – know, 4% know, 7% proac(cid:31)vely promoted, 24% Yes, 35% Yes –but No, 37% nobody No, takes 60% much no(cid:31)ce, 21% Probably, 11% Drive Paper Out Policy Environmental Impact Policy 0% 10% 20% 30% 40% 50% 60% 70% To take to a mee(cid:31)ng To add a signature To read offline or out of the office To review and mark up with changes To keep a legal or audit copy As a receipt or confirma(cid:31)on of order As a reference during an on-screen process To keep a localor personal file copy As a hard copy of important emails Figure 4: Would you say that the amount of paper flowing through your business processes is increasing or decreasing? (N=364) Increasing Decreasing rapidly, 7% rapidly, 5% In d Wu Increasing s t somewhat, 20% ary t c h Decreasing somewhat, 39% Stable, 28% - P aa np ue pr dW aa ters However, there seems to be a huge variation in the largest organizations between the most progressive fr 2 and the laggards, with 35% reporting (Figure 5) that paper-free thinking is at a somewhat immature stage – o0 m1 much the same number as amongst the smallest. Only 9% of all-sizes actively evaluate every process with 4 t a view to making them paper-free. h e b Figure 5: How would you describe your progress towards eliminating paper from your a t business processes? (N=358) tle fi e 0% 10% 20% 30% 40% 50% ld They mostly work OK with paper, so we leave them that way 10-500 emps 500-5,000 emps We have evaluated removing paper from some of our processes 5,000+ emps We have one or two of the most obvious processes paper-free We have a number of paper-free processes and will do more We ac(cid:157)vely look at every process with a view to driving out paper 46% are seeing a reduction in paper flowing through their processes, but the rate of moving processes to be truly paper-free is slow. A third of even the largest organizations have yet to focus fully on the potential of paper-free working. 0% 10% 20% 30% 0% 10% 20% 30% 1% of space 1% of space 2% of space 2% of space 5% of space 5% of space 7.5% of space 7.5% of space ©2014 AIIM - The Global Community of Information Professionals 8 10% of space 10% of space 15% of space 15% of space 20% of space 20% of space 25% of space 25% of space 30% of space 30% of space 35% of space 35% of space 40% or more 40% or more 0% 5% 10%15%20%25%30%35%40%45%50% Lack of management ini(cid:6)a(cid:6)ves or mandates to reduce it We need physical signatures on paper Staff prefer paper for handling/reading/notes Lack of understanding of paper-free op(cid:6)ons Suppliers and customers con(cid:6)nue to send us paper Legal admissibility will be compromised It’s a major and poten(cid:6)ally disrup(cid:6)ve change Paper provides a more reliable/ auditable/accessible record Not cost-effec(cid:6)ve to provide suitable scanning/capture/workflow 0% 10% 20% 30% 40% 50% 60% 70% Contracts and agreements Invoices Sales brochures/data sheets Statements Purchase orders Receipts, remi‹ance advices Recruitment materials Engineering, construc(cid:6)on or planning drawings Renewal/subscrip(cid:6)on/debit no(cid:6)ces 0% 10% 20% 30% 40% 50% They mostly work OK with paper, so we leave them that way 10-500 emps 500-5,000 emps We have evaluated removing Drivpeapresr f rfoom rso Pmea ofp ouer rpr oRceseseds uction 5,000+ emps Scanning or imaging documents for archive has been in place for over three decades. The business case We have one or two of the most based on savings in office space is easily made, although the widespread availability of box storage, and obvious processes paper-free smooth collection and retrieval logistics has dented that case somewhat. Having said that, many records and files need to be held locally for immediate reference, and hot-desking, teleworking, and business I We have a number of paper-free n flexibility have added to the premium on office floor-space. d processes and will do more Wu The amount of current office space taken up by paper file cabinets varies quite widely, but the average in s t our survey is 13.5%. This is down from the 15.3% we measured three years ago, confirming the previous ary We ac(cid:157)vely look at every process results of reduced paper in the business. When asked how they felt that might be reduced over five year’s t with a view to driving out paper c if an electronic-only filing regime were introduced, our respondents forecast a reduction to on average h 6.7% - almost exactly half. This would represent an annual saving in office floor-space costs of 7%. Figure 6: How much of your office space would you say is currently used for storing paper documents? What do you think that figure would be in 5 years’ time if you could change the culture to one of electronic-only filing? (N=329) 0% 10% 20% 30% 0% 10% 20% 30% -P aa np 1% of space 1% of space ue 2% of space 2% of space pdr W aa 5% of space 5% of space ters 7.5% of space 7.5% of space fr 2 o0 10% of space 10% of space m1 4 t 15% of space 15% of space h e 20% of space 20% of space b a t 25% of space 25% of space tle fi 30% of space 30% of space e ld 35% of space 35% of space 40% or more 40% or more Why So Much Paper? Business change doesn’t just happen. There needs to be a will or a mandate for change, and this shows up as the top reason for the lack of progress on paper-free processes (Figure 7). There is also the natural 0% 5% 10%15%20%25%30%35%40%45%50% human nature of resistance to change. We see this as the number three reason regarding how people prefer to handle, read and annotate documents, but it also crops up further down: process re-engineering Lack of management ini(cid:6)a(cid:6)ves or mandates to frequently constitutes a major and potentially disruptive change. Number four indicates a lack of training reduce it and knowledge, and implies that there is much further work for AIIM and the information management industry to doW ine rnaeiseidn pgh aywsicaarel snigensast uarneds ohnig phalipgehrting the options for paper-free processes. Which takes us back to the number two reason, the need, or perceived need, for physical or “wet signatuStraeffs ”p orenf epra ppaepre. rT fhoer rhea andreli nmga/rneya ddiinffge/rneontte selectronic signing solutions available ranging from stylus input, automated verification, digitally encrypted signatures, and web signatures, all of which have a place in achieving paper-free working. Stopping an otherwise all-electronic process simply to collect a physical Lack of understanding of paper-free op(cid:6)ons signature on a piece of paper, which is often immediately re-scanned, is obviously somewhat sub-optimal – and freqSuuepnptlliye rpsr aensde ncutss tao mgreeras tceorn c(cid:6)onnufied teon steianldity risk than the electronic original itself. us paper 50% of respLoengdael andtsm aisgsribeieli ttyh wati lls bigen caotmurperso mariese tdhe biggest single impediment to the wider use of paper- free processes. It’s a major and poten(cid:6)ally disrup(cid:6)ve change Paper provides a more reliable/ auditable/accessible record ©2014 AIIM - TheN Golot bcaol sCt-oemffmeucn(cid:6)itvye o tf oIn pforromvaidtioen s Puritoafebslseionals 9 scanning/capture/workflow 0% 10% 20% 30% 40% 50% 60% 70% Contracts and agreements Invoices Sales brochures/data sheets Statements Purchase orders Receipts, remi‹ance advices Recruitment materials Engineering, construc(cid:6)on or planning drawings Renewal/subscrip(cid:6)on/debit no(cid:6)ces
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