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               Executive White Paper

               Digital Mailrooms:
               Fixing Your Weakest Link in
               the Customer Value Chain
               Business case for the centralized digital processing of paper-                                                                                                                                                                                                                                                                                                                                                                                                                                       KEY TOPICS ADDRESSED
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Lifecycle costs of paper-based mail and customer-generated
               based mail, business forms, faxes, and email, speeding an                                                                                                                                                                                                                                                                                                                                                                                                                                              documents
               organization’s overall time to satisfy customer requests for                                                                                                                                                                                                                                                                                                                                                                                                                                         • Exhaustive inventory of compound documents by industry
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Distributed fast-cycle collaboration with virtual customer
               information, order processing, and service fulfillment                                                                                                                                                                                                                                                                                                                                                                                                                                                 engagement files
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Featured use-case productivity models:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  - Loan processing
               Business process benchmarks analyzing faster cycle-time contributions                                                                                                                                                                                                                                                                                                                                                                                                                                                              - Order processing
               to the customer engagement and revenue pipeline of new customers                                                                                                                                                                                                                                                                                                                                                                                                                                                                   - Accounts receivable
               and existing accounts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              - Mortgages

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     TABLE OF CONTENTS
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     PAGE
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          3                         Summary
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          4                         Executive Primer: Digital Mailrooms
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         11                         Digital Mail Processing
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         19                         Strategic Use Cases and Payback Scenarios
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         34                         Enterprise Content Processing Infrastructure
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


Who helped produce this white paper? Who is GISTIcS?
AuTHor                                   coNTrIbuTorS
mIChael moon                             alex marTInez
President, CEO                           Product Marketing Manager
GISTICS Incorporated                     Open Text
moon@gistics.com                         amartine@opentext.com                                                              THINK TANK For EArLY STAGE-MArKETS
                                         mIChael Cybala                                                                     GISTICS constitutes a think tank that speeds the adoption of new technology and disruptive
ANALYST                                  Director, Program and
                                                                                                                            innovations among enterprises and consumers. Founded in 1987, GISTICS Incorporated
joel warwICk                             Product Management
Principal                                SAP Solutions Group                                                                minimizes the risk of potential buyers through the following:
JAW Consulting                           mcybala@opentext.com                                                                 • Interviews with successful early adopters of new technologies
joel@joelwarwick.com                                                                                                          • Definition of the critical success patterns of successful early adopters
                                         roland jaGer

DESIGN, LAYouT,                          Product Manager                                                                      • Activity-based analyses of adoption benefits on supply chains, workflows, and user
EDITING, ProDucTIoN
                                         Open Text                                                                              activities
                                         rjaeger@opentext.com
lIanne mUeller                                                                                                                • Visual explanations of how new technologies produce economic value
Art Director                             johanneS SChaChT                                                                     • Investment analyses that justify the purchase of new technical systems
Fly Design Media                         Director of Marketing
                                         Open Text Document Technology
                                                                                                                              • Project roadmaps that break down large-scale organizational changes into smaller two-
lianne@flydesignmedia.com
                                         johannes.schacht@opentext.com                                                          week to two-month projects
IrIS alroy
                                                                                                                              • Practitioner portals that clarify the next steps in rapid deployment and payback
Production Artist                        Gerhard deTzel
GISTICS Incorporated                     Strategic Planning                                                                   • Certified consultants that provide essential skills and resources
research@gistics.com                     Open Text
                                                                                                                            GISTICS drives the emergence of shared vocabularies, the adoption of effective problem-
                                         gerhard.detzel@opentext.com
kaThleen mCFadden                                                                                                           determination methods, and the development of unassailable investment analyses that justify
kmcfadden@writetools.com                 jaSon weIr                                                                         purchases of new technologies or disruptive innovations.
                                         Senior Manager, Product Marketing
STeve TUrner                             Open Text                                                                          GISTICS attracts early adopters and pace-setting solutioneers, demonstrating how they can
Turner Associates                        jweir@opentext.com                                                                 use new technologies or disruptive innovations to make money by delivering new complex,
steve@turnersf.com
                                                                                                                            integrated solutions to enterprise or consumer clients.
                                                                                                                            GISTICS develops breakthrough market-making strategies for vendors of new technologies or
                                                                                                                            disruptive innovations, using industry thought leadership, executive white papers, Webcasts,
GISTICS InCorporaTed
4171 Piedmont Avenue,                                                                                                       specialized Websites, and a global trust network of advanced project managers within large
Suite 210                                                                                                                   enterprises, independent consultants, and small master-class solution providers.
Oakland CA 94611 USA
www.gistics.com
+1.510.450.9999 tel
+1.510.450.0954 fax
                                         WHAT’S IN THE NAME?
                                         gist ’jist n -s [AF, it lies (said of
©2009 GISTICS Incorporated. All          a legal action), fr. MF, 3d pers.
rights reserved. Printed in the U.S.A.   sing. pres. indic. of gesir to lie,
                                         fr. L jacére to lie, fr. jacere to
                                         throw — more at jet (to spout)]
GISTICS and its agents have used
                                         1: the main point or material part
their best efforts in collecting and
preparing information published in
                                         (as of a question or debate) : the
this executive white paper, Digital      pith of a matter : essence (the ~
Mailrooms: Fixing Your Weakest Link      of a question) <the ~ of all that
in the Customer Value Chain. GISTICS     can be said upon the matter—R.
does not assume, and hereby dis-         L. Stevenson> 2: the ground or
claims, any liability for any loss or    foundation of a legal action without
damage caused by errors and omis-        which it would not be sustainable
sions in this white paper, whether
such errors or such omissions            —Webster’s Third New International
resulted from negligence, accident, or   Dictionary Unabridged
other causes.

    GISTICS | EXECUT IVE W HITE PA P ER | Digit al Mailroom s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                         2
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


What summarizes the business case for digital mail processing and the deployment of digital
mailrooms?




                                                                                                                                                                                                            DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
WEAKEST LINK OF CUSTOMER ENGAGEMENT                                              SERVICE-FULFILLMENT CYCLES                                           TIME TO SATISFY CUSTOMERS
Most large business-to-consumer and public                                       In the course of interacting with customers,                         This paper makes the case that sluggish,
sector organizations seek better and less                                        hundreds to thousands of organizational staff,                       error-prone mailflow processing suppresses
costly ways of serving customers, growing                                        as well as partners, must satisfy a diverse                          revenues from both new and existing
revenues, and reducing exposure to risk.                                         range of customer criteria for information                           customers, diminishing overall satisfaction,
                                                                                 or service fulfillment, using all available                          brand equity, and loyalty.
This paper makes the case that automating
                                                                                 information sources, including paper-based
physical mailroom operations supports all three                                                                                                       The digital, online, pan-regional processing
                                                                                 correspondence, forms, and documents.
strategic aims, shoring up one of the weakest                                                                                                         of customer-generated paper-based
links of customer engagement: cycle times and                                    The inbound handling and distribution of                             communications—a function of DIGITAL
mistakes in physical mailflows.                                                  individual pieces of mail—letters, orders,                           MAILROOMS—speeds an organization’s
                                                                                 contracts, etc.—often represents the weakest                         overall time to satisfy customer criteria for
CUSTOMER ENGAGEMENT                                                              link in the customer value chain, adding                             timely and more personal service fulfillment.
The growing preference of customers for                                          significant time delays, paper management
                                                                                                                                                      Faster time to satisfy customers unlocks
online, interactive services continues to drive                                  costs, and barriers to fast-cycle collaboration
                                                                                                                                                      revenues already in engagement-revenue
overall expectations of value and satisfaction,                                  among decision-making teams.
                                                                                                                                                      pipelines, adding the equivalent of 2.9 days of
demanding that enterprises improve all                                           The manual, duplicated, and physical                                 revenues to the firm.
customer-facing business processes.                                              logistics workflows or mailflows consist
                                                                                                                                                      This paper demonstrates how other
The relatively new term, customer                                                of receiving, sorting, distributing, and
                                                                                                                                                      productivity dividends (cost and labor savings)
engagement, conveys a new strategic priority                                     using customer-generated paper-based
                                                                                                                                                      fund enterprise wide digital mail processing
and operational capability of the enterprise:                                    communications.
                                                                                                                                                      and paperless business processes.
how to attract, serve, and keep customers for                                    Mailflow processing that includes orders,
life.                                                                            change orders, complaints, requests for                              SUMMARY
Networked customers demand faster,                                               information, and contract amendments                                 Digital mailrooms increase revenues,
more cogent, and transparent fulfillment of                                      (especially compound, multipart documents
                                                                                                                                                      speeding an organization’s overall
their requests for information, service, and                                     that require two or more people to review and
                                                                                 contribute to an appropriate response to the
                                                                                                                                                      time to satisfy customers in the
satisfaction.
                                                                                 customer) slows an organization’s overall time                       engagement-revenue pipeline and,
Digital mailroom processing marks the next                                       to satisfy customers and potential buyers.                           thus, funding enterprise wide digital
logical step in improved customer engagement.                                                                                                         mail processing.




   GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                       3
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems




                                                                                                                                             Section 2
                                                                                                                                             Executive Primer:
                                                                                                                                             Digital Mailrooms

                                                                                                                                            PAGE ESSENTIAL QUESTIONS ADDRESSED
                                                                                                                                              5 What’s the strategic case for Digital Mailrooms, automating the
                                                                                                                                                digitization and process orchestration of in-bound physical mail,
                                                                                                                                                email, business forms, faxes, and compound documents?
                                                                                                                                              6 What assumptions support the case for digital processing of
                                                                                                                                                in-bound mail, business forms, compound documents, and emails
                                                                                                                                                with attachments?
                                                                                                                                              7 What areas of a customer value chain benefit from digital mail
                                                                                                                                                processing?
                                                                                                                                              8 What constitutes a service-fulfillment cycle, framing the productivity
                                                                                                                                                contribution of digital mail processing?
                                                                                                                                              9 What types of mail drive the business case for digital mail
                                                                                                                                                processing and centralized digital mail rooms?
                                                                                                                                             10 How do faster cycle-times of digital mail processing contribute to
                                                                                                                                                major launches, customer engagement, and revenue pipelines?




   GISTICS | EXECUT IVE W HITE PA P ER | Digit al Mailroom s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                    4
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


What’s the strategic case for digital mailrooms, automating the digitization and process orchestration of inbound physical mail,
email, business forms, faxes, and compound documents?




                                                                                                                                                                                                                                                                              DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
LIFEBLOOD OF ORGANIZATIONS                                                       Greater asset-utilization rates  FASTER CYCLE TIME INCREASES SALES, LOWERS COST, AND ADDS
                                                                                 represent handling higher        PROCESS AGILITY
Finding and serving customers define the
                                                                                 volumes of more diverse and
purpose of all organizations, commercial or
                                                                                 complex interactions with buyers   TIME TO SATISFY CUSTOMER REQUESTS FOR SERVICE OR INFORMATION
public sector.
                                                                                 and customers—how firms satisfy
                                                                                                                     Manual Mail Processing               4.5 Days Days
                                                                                                                                                                 4.5
If customers represent the lifeblood of                                          evolving customer requirements,
organizations, then communication serves as                                      especially among networked
the heart and workflows as the arteries.                                         buyers.                                 DIGITAL MAIL
                                                                                                                                                       PROCESSING
ALL ABOUT CYCLE TIME                                                             Greater business process
                                                                                 transparency gives management                                        1.6 Days                          2.9 Day Cycle-time Gain
This paper makes the case that digital                                           new operational and data-based
processing of inbound mail, customer                                             insights—how firms can focus on                                       Productivity Drivers                            Productivity Dividends
correspondence, and compound documents                                           higher value-added opportunities                              • Centralized mail-item processing:                 • Sales pipeline acceleration
speeds the fulfillment of requests for service                                   and challenges.                                                      -Extended operation hours / shifts
                                                                                                                                                      -Peak level loading with subcontractors
                                                                                                                                                                                                   • Incremental closings of opportunistic deals
and information, creating productivity                                                                                                         • Faster processing of complex
                                                                                                                                                                                                   • Lower lifecycle costs of business records,
dividends.                                                                       Better visibility of high-priority                              workflows:                                          forms, and compound documents
                                                                                 accounts means senior managers                                       -Loans                                       • Greater asset-utilization rates through
                                                                                                                                                      -Leases                                        consolidated mailrooms and teams
PRODUCTIVITY DIVIDENDS                                                           can track and expedite delays in                                     -Multivendor systems
                                                                                                                                                                                                   • Greater business process transparency
                                                                                 establishing new major accounts                                      -Statements of work
                                                                                                                                                                                                     and monitoring
This paper shows that greater productivity in                                    or the handling of nonstandard
                                                                                                                                               • Faster problem determination:
                                                                                                                                                      -Customer complaints                         • Better visibility and handling of high-
mail workflows returns its investment in several                                 customer requests—how firms can                                      -Change orders and expedited                   priority accounts and situations
areas:
                                                                                                                                                       backorders
                                                                                 make their quarterly goals without                                   -Disrupted vendor supply chain flows

Sales pipeline acceleration represents faster                                    creating a big mess or breaking                               • Faster receivables workflow:
                                                                                                                                                      -Outstanding item resolution
buying cycles—the result of faster, more                                         the system.                                                          -Proof of receipt or acceptance           • Instant multiparty collaboration:
                                                                                                                                                                                                    -Subcontracted work
                                                                                                                                                      -Instant bill presentation
informed interactions with new and existing                                      Digital mail processing can deliver                           • Instant online status:
                                                                                                                                                                                                    -Multiproduct / multivendor
                                                                                                                                                                                                     configurations
customers.                                                                       additional dividends, emphasizing
                                                                                                                                                      -Rerouting
                                                                                                                                                      -Ad hoc “Huddles”
                                                                                                                                                                                                    -Risk, compliance, or clearance
                                                                                                                                                                                                    -Remote office / call center

Incremental closings represent opportunistic                                     the particular aspects of individual                                 -Peer-to-peer handoffs
                                                                                                                                                      -Quick approvals
                                                                                                                                                                                                     decision making


sales—often the result of faster approvals and                                   organizations, industry norms, and                                   -Fast escalation / triage

expedited order processing.                                                      statutory requirements.                                                                                                  Time_to_Satisfy_RFI.A.1.5 © 2009 GISTICS All rights reserved.


Lower lifecycle costs represent going digital                                                                                              Faster processing of inbound physical mail and documents
                                                                                                                                           saves an average of 2.9 days in the time it takes to receive,
earlier in the document lifecycle, lowering costs                                                                                          sort, and route customer communications to the appropriate
of administrative labor, interim paper storage,                                                                                            internal staff or department, producing a number of immediate
and long-term business records archives.                                                                                                   economic benefits and longer term process management
                                                                                                                                           options.

   GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                                                                         5
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


What assumptions support the case for digital processing of inbound mail, business forms, compound documents, and emails
with attachments?




                                                                                                                                                                                                                                                                                                                                                                                                                DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
NEXT STEP IN THE JOURNEY OF AUTOMATION                                           Faster cycle times in customer-                                FIXING THE WEAKEST LINK OF CUSTOMER VALUE CHAINS
                                                                                 facing communications, interaction,
Business IT history reveals that automation
                                                                                 and handoffs accelerate the core
of seemingly small units of work throughout a                                                                                                                   Digital
                                                                                 business process of finding and                                                Mail
large organization often produces significant,
                                                                                 keeping customers.                                                             Processing
long-reaching effects.
                                                                                                                                                                AUTOMATES                                                                                            Time to Satisfy
The figure to the right depicts the core                                         TIME TO SATISFY REQUESTS                                                                                                                                                            Requests for Service
                                                                                                                                                                                                                              SPEEDING
assumptions that support the case for digital                                    Centralized mailroom operations
                                                                                                                                                                Centralized                                                                                          or Information
                                                                                                                                                                Mailroom
mailrooms, emphasizing three immediate,                                          speed the routing of digitized                                                 Operations
                                                                                                                                                                                                                              BY WAY OF
long-lasting benefits:                                                           items, using workflow engines and
                                                                                                                                                                                                                                                                     Handoff Delays,
                                                                                                                                                                                                                                                                     Monolinear Queues,
                                                                                                                                                                                                                              REDUCING
 • Increased productivity of frontline                                           business records managers—how                                                                                                                                                       and Manual Searches
   knowledge workers and trade partners—                                         firms integrate digital mailflows into
   especially those parties that contribute to                                   their core business applications and                                                                               Throughout a Customer Value Chain
   revenues and customer satisfaction                                            business records management.                                                                                  Communications, Interactions, and Handoffs among
 • Improved satisfaction of customers                                                                                                                                                          Staff, Trade Partners, Customers, and Regulators
                                                                                 Digital mail processing automates
   through faster service-fulfillment cycles and                                                                                                                                                                                                                                                            Greater

                                                                                 the digitization, profiling, and
   better, more informed answers by frontline




                                                                                                                                                                  ADDING ACTIVITIES
                                                                                                                                                                   PRIMARY VALUE-




                                                                                                                                                                                                                               Manufacturing




                                                                                                                                                                                                                                                                                                      MA
                                                                                 cataloging of all inbound mail and




                                                                                                                                                                                                    Development
                                                                                                                                                                                                    New Product




                                                                                                                                                                                                                                                                          Service and
                                                                                                                                                                                                                                               Distribution
                                                                                                                                                                                                                               Operations/




                                                                                                                                                                                                                                                                                         Leadership
   workers




                                                                                                                                                                                                                                                              Marketing




                                                                                                                                                                                                                                                                                                             DIF F ERENTIATION
                                                                                                                                                                                                                                               Logistics/



                                                                                                                                                                                                                                                              and Sales
                                                                                                                                                                                                                  Logistics




                                                                                                                                                                                                                                                                                                      RG
                                                                                                                                                                                                                  Inbound




                                                                                                                                                                                                                                                                          Support
                                                                                 faxes, including email with attached




                                                                                                                                                                                                                                                                                                                                 Digital_Mailroom_Case_A.2.3 ©2009 GISTICS Incorporated, All rights reserved.
                                                                                                                                                                                                                                                                                                       IN
 • Enhanced orchestration of complex, pan-




                                                                                                                                                                                              R&D
                                                                                 documents or images, business
   regional business processes—important in
                                                                                                                                                                                              Organizational Infrastructure




                                                                                                                                                                         SUPPORT ACTIVITIES
                                                                                 forms, and complex multipart                                                                                   Finance and Legal

   the era of consolidation and globalization of                                 documents.
                                                                                                                                                                                                Human Resources


   a workforce
                                                                                                                                                                                                ICT Infrastructure
                                                                                                                                                                                                Procurement and Vendor Management                                                                           Lower
                                                                                 This paper explains each of these
                                                                                                                                                  IT THEN FOLLOWS THAT
SERVING CUSTOMERS                                                                key assumptions, quantifying                                     D I G I TA L MAILROOMS PROVIDE THE MISSING LINK,
                                                                                 the business value of bottom-up
As wryly noted by Peter Drucker, the guru
                                                                                 automation.
on management and knowledge worker                                                                                                                         INCREASING                                                         IMPROVING                                                  and ENHANCING
productivity, “A firm has no other purpose than
to find and keep customers.”
                                                                                           Digital mail processing                                    Productivity of Front                                         Customer Satisfaction,                                              Orchestration of
Customer value-chain models depict the                                                     constitutes the next logical-                              line Knowledge Workers                                        Loyalty, and Share-of-                                              Complex, Pan-regional
primary and support activities of a firm,                                                  step in enterprise automation                              and Trade Partners                                            Wallet Revenues                                                     Business Processes

calling attention to the central role that                                                 and business process                                       • Customer service                                          • Better informed answers                                  • Innovating new services
                                                                                           management, speeding the                                   • Account development                                         by staff                                                 • Launching new offerings
communications, interaction, and handoffs play                                             time-to-satisfy requests for
                                                                                                                                                      • Contract administration
                                                                                                                                                      • Risk or compliance
                                                                                                                                                                                                                  • Faster fulfillment of customer
                                                                                                                                                                                                                    needs
                                                                                                                                                                                                                                                                             • Processing new accounts and
                                                                                                                                                                                                                                                                               complex orders
in finding and keeping customers.                                                                                                                                                                                 • Fewer defects, mistakes,                                 • Servicing customer requests
                                                                                           service and information by                                                                                               and do over's
                                                                                           customers and trade partners.
                                                                                                                                                                                                                  • Greater visibility of priority
                                                                                                                                                                                                                    customer accounts


   GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                                                                                                                                                                                     6
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


What areas of a customer value chain benefit from digital mail processing?




                                                                                                                                                                                                                                                                  DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
VALUE-CHAIN INTERACTIONS                                                         SERVICE-FULFILLMENT CYCLES                                                                   It then follows that faster inputs to those
                                                                                                                                                                              service-fulfillment cycles, coupled with more
Each organization within an industry or                                          Over the span of any business day, a larger
                                                                                                                                                                              complete and accessible “answers” increases
business ecosystem incorporates the value-                                       enterprise will start and complete a multitude of
                                                                                                                                                                              overall productivity in the customer value
added products or services of upstream                                           tasks in service of customers.
                                                                                                                                                                              chain: increased revenues!
suppliers, adding distinctive value to its
                                                                                 Service fulfillment describes the basic work
own products or services that downstream
                                                                                 of serving customers and serving those who
customers incorporate and pass along to the
                                                                                 service customers. The faster a firm completes
end-chain customer.
                                                                                 service-fulfillment cycles represents a primary
The figure on the right depicts a value-chain                                    source of revenue: satisfied customers.
business entity, suggesting how digital mail
processing might spread throughout many                                          ANY AREA THAT RECEIVES EXTERNAL MAIL OR DOCUMENTS BENEFITS FROM DIGITAL MAIL PROCESSING
areas of the enterprise.
                                                                                                               Communications, Interactions, and Hand offs among Staff,
VALUE CHAIN BUSINESS ENTITY                                                                                    Trade Partners, Customers, and Regulators
Michael Porter, the international authority on
competition, first introduced the concept of a
value chain business entity, emphasizing the                                                                                                                                                                                           Greater
                                                                                   ADDING ACTIVITIES
                                                                                    PRIMARY VALUE-




value-adding activities of the firm.




                                                                                                                                               Manufacturing




                                                                                                                                                                                 Marketing and




                                                                                                                                                                                                                                 MA
                                                                                                                     Development
                                                                                                                     New Product




                                                                                                                                                                                                   Service and
                                                                                                                                                               Distribution
                                                                                                                                               Operations/
In the example shown to the right, the higher




                                                                                                                                                                                                                    Leadership
                                                                                                                                                               Logistics/




                                                                                                                                                                                                                                        DI FFERE NT IATI ON
                                                                                                                                   Logistics
value-adding activities start with R&D and




                                                                                                                                                                                                                                 RG
                                                                                                                                   Inbound




                                                                                                                                                                                                   Support
new product development and conclude with




                                                                                                                                                                                 Sales




                                                                                                                                                                                                                                  IN
                                                                                                               R&D




service, support, and leadership.
However, every firm must build and maintain
                                                                                                                Organizational Infrastructure
                                                                                          SUPPORT ACTIVITIES




                                                                                                                                                                              SERVICE
(or access a partner’s) organizational                                                                                                                                        FULFILLMENT
infrastructure—support activities.                                                                                Finance and Legal                                           CYCLE     SS                 F




                                                                                                                                                                                          E
                                                                                                                                                                                       ASS
 In particular, the ICT infrastructure




                                                                                                                                                                                                           UL
                                                                                                                  Human Resources




                                                                                                                                                                                                             FILL
(computers, telecommunications, data centers,
etc.) supports digital mailrooms, integrating                                                                     ICT Infrastructure
automated mail processing with existing or
                                                                                                                                                                                                 PLAN
                                                                                                                  Procurement and Vendor Management                                                                                    Lower
newly developed workflow platforms and                                                                                                             Value_Chain_Entity.E.1.2 © 2009 GISTICS Incorporated, All rights reserved.

records management systems.                                                      The elimination of one communication or interaction cycle (follow-up telephone call, fax, email)
                                                                                 in the time to satisfy ALL paper-based requests for service or information can add up to tens of
                                                                                 millions of dollars in savings and increased revenues.
   GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                                                             7
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


What constitutes a service-fulfillment cycle, framing the productivity contribution of digital mail processing?




                                                                                                                                                                                                                                                                                DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
SERVICE-FULFILLMENT CYCLES                                                       BRAND VALUE                                                                    • Permanent collections of all related
                                                                                                                                                                  information objects and feeds—digital
Industry benchmarks of business response                                         Customer satisfaction represents many
                                                                                                                                                                  customer files—enable faster completion of
times to customers using telephone, email,                                       aspects of a complex business operation
                                                                                                                                                                  service-fulfillment cycles.
website, online contact center, fax, and                                         coming together to meet or exceed the
physical mail services reveal significant delays                                 customer’s expectations and criteria for value                                 • Online service-fulfillment cycles enable
for physical mail and faxes.                                                     and quality.                                                                     account managers and executives to monitor
                                                                                                                                                                  the number of completion rates of service-
The figure on the right depicts the common                                       Fast, courteous, well-informed, and effective                                    fulfillment cycles by account, workgroup, and
element of all customer requests, a service-                                     answers, fulfilled correctly on the first time                                   region—a way to manage by exception and
fulfillment cycle.                                                               represent the ideal.                                                             marshal resources to achieve a strategic
Current condition represents a status quo                                        Digital mail processing moves an                                                 win.
until a precipitating event occurs, initiating a                                 enterprise closer to that ideal in four                        FASTER TIME TO SATISFY REQUESTS CREATES NEW BRAND VALUE
service-fulfillment cycle.                                                       ways:
The clarity, succinctness, and form of requests                                   • Digitization of physical mail,                                                                                                       Current Condition
                                                                                                                                                                                        B ra n d
often vary, ranging from hysterical complaints                                      forms, faxes, and compound                                                                                                              REWORK
                                                                                                                                                                                                                                                                    START
                                                                                                                                                                                                                                                                    HERE
                                                                                    documents creates more
                                                                                                                                                                                                                          SUB-CYCLE(S)
(weak, ill-formed requests) to well-reasoned                                                                                                                                                                   !
                                                                                                                                                                                                                                  1

                                                                                    potential answer-making
                                                                                                                                                                                                                                  2

and comprehensive descriptions of the                                                                                                                                                                                             3                        PRECIPITATING

problem, likely causes, and possible solutions.                                     resources.                                                                       Affirm             Equity                                                               INCIDENT


                                                                                  • Secure, searchable, online
Assessment may entail a single staff member                                         global repositories enable                                                                  Detract       Complain
responding to a customer’s need, applying a                                         any number of authorized
known policy (or policies) and resources at                                         participants to use answer-                                       Satisfaction                                                                                Request
hand (information and applications) to satisfy                                      making resources.
the customer—clearly the ideal situation.                                                                                                                                          Insufficient
                                                                                                        Keeping customers                                                                                                                          Assess
However, many service-fulfillment cycles
require internal or external multiparty,                                                                entails answering
                                                                                                                                                           Confirm




                                                                                                                                                                                                                                                  S
                                                                                                        questions and




                                                                                                                                                                                                                                              TION
                                                                                                                                                                                                                              S
multistep workflows, delaying cycle




                                                                                                                                                                                                                          IE
                                                                                                                                                                                                                         RT
                                                                                                        provisioning                                                                                                     PA




                                                                                                                                                                                                                                           ORA
                                                                                                                                                                                                                    AL
times and contributing to the heightened                                                                services. Faster
                                                                                                                                                                                                               RN




                                                                                                                                                                                                                                        LAB
                                                                                                                                                                                                           E
                                                                                                                                                                                                       INT




                                                                                                                                                                                                                                      OL
dissatisfaction of customers.                                                                           service-fulfillment




                                                                                                                                                                                                                                    YC
                                                                                                                                                                                                                                  RT
                                                                                                                                                                                                                       PA
                                                                                                        cycles of customers’                                                                                        LTI
These multistep workflows may include                                                                   requests increase                                                                                     EP,
                                                                                                                                                                                                                  MU
                                                                                                                                                                                                          TIST




                                                                                                                                                                                                                                                                S
                                                                                                                                                                                                                                                            IE
many iterative cycles and a changing cast of                                                            satisfaction and                                                      Fulfill                  MUL




                                                                                                                                                                                                                                                           RT
                                                                                                                                                                                                                                                           PA
                                                                                                                                                                                             Plan                                                 NA
                                                                                                                                                                                                                                                       L

workflow participants across the phases of                                                              the likelihood of                                                                                                             EX
                                                                                                                                                                                                                                           TE
                                                                                                                                                                                                                                              R


assess, plan, fulfill, and confirm of the service-                                                      retaining loyal
                                                                                                        customers.                                                        SERV
                                                                                                                                                                                 ICE-FULFILLMENT CYCLE
fulfillment cycle.
                                                                                                                                                                                               Service_Fulfillment_Cycle.A.2.2 ©2009 GISTICS All rights reserved


   GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                                                                           8
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


What types of mail drive the business case for digital mail processing and centralized digital mailrooms?




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
CRITICAL MAIL ITEMS IN COMPLEX MAILFLOWS                                                                                           TIME TO SATISFY CUSTOMER REQUESTS                                                                                                                                                      Complex workflows also emphasize what
                                                                                                                                                                                                                                                                                                                          we call service-fulfillment cycles—demand by
How many important pieces of mail get lost                                                                                         The bottom figure on the right depicts a
                                                                                                                                                                                                                                                                                                                          customers for information related to a buying
in the daily shuffle of mailrooms and Website                                                                                      category of critical mail items in complex
                                                                                                                                                                                                                                                                                                                          decision, support related to using a product or
communications, delaying sales cycles,                                                                                             workflows—a small, often quite diverse, and
                                                                                                                                                                                                                                                                                                                          service, and service of an account or program.
creating higher-cost personal interventions                                                                                        meaningful portion of all inbound mail that
by field sales or customer service staff, or                                                                                       represents considerable value: new accounts,                                                                                                                                           High volumes of inbound mail can obscure
putting the firm at risk of noncompliance with                                                                                     orders, and service requests.                                                                                                                                                          critical mail items. Complex workflows
regulations?                                                                                                                                                                                                                                                                                                              with multiple parties and hand offs entail
                                                                                                                                   The number of decision-making variables
                                                                                                                                                                                                                                                                                                                          additional risks: delay, mistakes, and customer
The sheer volumes of mail and the diverse                                                                                          or items to consider in taking well-informed
                                                                                                                                                                                                                                                                                                                          dissatisfaction.
types of mail make it difficult to answer that                                                                                     actions and the number of participants who
question.                                                                                                                          engage in two or more decision points all
                                                                                                                                   contribute to the complexity of core business
In this paper, we make the case that the digital
                                                                                                                                   processes.
processing of higher added-value mail will
deliver sufficient short-term value that the firm
will recoup the total investment in a centralized
digital mailroom.
The top figure on the         HIGH VOLUME MAILFLOWS OFTEN HIDE CRITICAL MAIL ITEMS
right depicts how greater
volumes of mailed and         GREATER                                                                                                                                              GREATER                                                                   GREATER                                                                                                                                            GREATER

emailed items and a greater
                                                                   High-risk                                                                                                                                                                                                                                                                                                                Critical Mail
                                                 Number of unique types of mail and documents processed




number of unique types of                                          Mailflows                                                                                                                                                                                                                                                                                                                     Items in




                                                                                                                                                                                                                                                                                                                                                                                                                                and authorizers per service-fulfillment cycle
                                                                                                                                                                                                  making variables, and service-fulfillment steps


                                                                                                                                                                                                                                                    Number of variables or items to consider
mail and documents can                                                                                                                                                                                                                                                                                                                                                                          Complex

                                                                                                                                                                                                   Number of workflow participants, decision-




                                                                                                                                                                                                                                                                                                                                                                                                                                  Number of decision-makers, reviewers
                                                                                                                                                                                                                                                       in taking a well-informed action
mask inherent business                                                                                                                                                                                                                                                                                                                                                                       Workflows



                                                                                                                                                                                                                                                                                               DECISION POINTS




                                                                                                                                                                                                                                                                                                                                                                                                                 PARTICIPANTS
risks—communications and                                                                                                                                                            ENTAILMENTS
documents that entail a
                                                                                                          TYPES




greater number of workflow
participants, decision-making
variables, and service-
fulfillment steps.

                                                                 FEWER                                                                                                             FEWER                                                                                     FEWER                                                                                                                              FEWER
                                                                                                                                                                                                                                                                                                                 Doc_Volume_Decisions_Participants.B.1.3 © 2009 GISTICS, All rights reserved.

                                                                                                                  LOWER                   VOLUME                         GREATER                                                                                                                                 LOWER                                                 VALUE                          GREATER
                                                                                                                          Number of mailed and emailed items processed


   GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                                                                                                                                                                                                                                                                      9
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


How do faster cycle times of digital mail processing contribute to major launches, customer engagement, and revenue
pipelines?




                                                                                                                                                                                                                                                                                   DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
THE VALUE OF ONE DAY’S REVENUE                                                   VALUE CREATION                                                                             CUSTOMER ENGAGEMENT LIFECYCLE
Frontline service staff’s instant access to                                      The major launch of new products, campaigns,                                               Today, organizations must re-engineer how
the pertinent information of a customer’s                                        partnerships, or business models often                                                     they attract and keep customers for life.
situation—digital account files composed of                                      represents the most significant source of new                                              Online consumers expect more: better, faster,
previous emails, voicemails, and digitalized                                     revenue for most firms.                                                                    cheaper.
correspondence, forms, faxes, and
                                                                                 A 2.9 day cycle-time gain in faster fulfillment of                                         The customer engagement lifecycle model
documents—speeds completion of service-
                                                                                 customer questions and faster processing of                                                depicts additional needs for a more informed
fulfillment cycles
                                                                                 first-time orders correlates to more sales in the                                          and agile context for communication and
Faster completion of service-fulfillment cycles                                  product sales lifecycle.                                                                   interaction.
can add up to significant positive effects for the
firm.
                                                                               CYCLE-TIME GAIN IN PROCESSING INBOUND MAIL ADDS VALUE THROUGHOUT THE FIRM
GISTICS’ research of digital mail processing
reveals that a medium to large enterprise can
                                                                                 CUSTOMER ENGAGEMENT LIFECYCLE
expect an average net gain of 2.9 days in all
business processes that rely upon inbound                                                      STATUS OF BRAND           No awareness   Awareness   Consideration   Trial      Purchase   Preference   Commitment      Repurchase        Advocacy       Collaboration

mail and related documents.                                                        IDENTIFICATION OF WEB USER                 Unknown                       Known                 Profiled              Customerized                            Certified
                                                                                          BRAND CONVERSIONS            Lead generation (BC1) Facilitated Buying (BC2)            Retention (BC3)          Loyalty (BC4)                 WOM agents (BC5)
A quick calculation of the 2.9 day cycle-
time gain suggests that a firm with $1 billion                                   VA L U E - C R E AT I O N P R O C E S S
in annual revenues or roughly $4.5 million
per business day (from 220 days in a year)
can add up to $13.5 million in incremental
revenue—essentially adding 2.9 days to the
fiscal year.                                                                            Offer-market                       Demand                            Sales                        Satisfaction                            Strategic
                                                                                        development                        creation                        conversion                      fulfillment                          development
The figure below depicts three areas of
benefits from a 2.9 day cycle-time gain,
calling attention to the pervasive effects of
processing inbound mail, forms, faxes, and
documents and integrating those native digital                                      MAJOR LAUNCH: Products, Campaigns, Partnerships, Business Models
objects such as emails and their attached
digital files.                                                                                                                                                                                           Pipeline_Engagement_Sales.B.1.0 ©2009 GISTICS All rights reserved.


                                                                              Faster, more informed service-fulfillment cycles, using the digitized objects from digital mail
                                                                              processing, enable frontline sales to close more business, customers to more fully engage in self-
                                                                              service workspaces, and firms to maximize the sales potential of major launches.

    GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                                                                            10
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems




                                                                                                                                             Section 3
                                                                                                                                             Digital Mail Processing
                                                                                                                                            PAGE ESSENTIAL QUESTIONS ADDRESSED
                                                                                                                                             12 What summarizes the basic idea of digital mail processing?
                                                                                                                                             13 How can an activity model of enterprise mail flows highlight the
                                                                                                                                                value of digital mail processing?
                                                                                                                                             14 Which of these types of documents flow through your enterprise
                                                                                                                                                operations?
                                                                                                                                             15 Which of these types of documents flow through these industries or
                                                                                                                                                supply chains?
                                                                                                                                             16 How long must firms store various types of business records and
                                                                                                                                                customer communications?
                                                                                                                                             17 What constitutes a customer engagement package, a logical
                                                                                                                                                collection of digital contents of a digital customer file?
                                                                                                                                             18 What elements comprise a customer engagement package?




   GISTICS | EXECUT IVE W HITE PA P ER | Digit al Mailroom s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                  11
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


What summarizes the basic idea of digital mail processing?




                                                                                                                                                                                                                                                                                                                DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
LAST HOLD-OUT OF THE PAPERLESS OFFICE                                                          ALREADY DIGITAL AND READY TO INTEGRATE                                      ALL-DIGITAL MAIL FLOWS
Successive waves of innovation in IT and                                                       Much of the existing communications and                                     Digital mail processing entails the digitization
Internet technologies drive gains in productivity,                                             messaging already exists in digital form: emails                            of physical mail and the integration of these
business agility, and customer engagement.                                                     and their attached files, digital dispatches from                           newly digitized items with email, digital
                                                                                               camera phones, faxes, online file transfers                                 dispatches, and web content.
Digital mail processing constitutes another
                                                                                               (FTP and HTTP), digital newsletters, and Web
meaningful step toward business process                                                                                                                                    Digitizing physical mail upon first receipt pays
                                                                                               posts (Web pages, user-generate content, and
automation and the long-time vision of the                                                                                                                                 several downstream dividends:
                                                                                               Web-user session recordings, etc.)
“paperless office.”                                                                                                                                                         • Faster, more agile fulfillment of revenue-
                                                                                               Digital mail rooms simply bring physical                                       producing workflows
The figure below depicts the basis elements
                                                                                               mail and documents into the digital flow of                                  • Lower labor expenses and physical costs
of digital mail processing, calling attention to
                                                                                               information.                                                                   associated with the life cycle of business
existing digital flows of communications and
files.                                                                                                                                                                        information and records management



DIGITIZING UP-FRONT REDUCES COST, ERROR RATES, AND TIME-TO-SATISFY REQUESTS FOR INFORMATION OR SERVICES
                   O R I G I N AT E                     CAPTURE                                       I N T E G R AT E                  MANAGE                                            PROCESS                                                                         PRESERVE
          P H YS IC AL • Correspondences
                MAIL • Forms and applications
                          • Agreements                            Digital                             Workflow
                          • Statements of work                                                        Manager                                                                                                                                                                             Archival
                                                                   Mail                                                                                                              B ra n d                           Current Condition
                                                                                                                                                                                                                                                                                          Policies
                          • Coupons and contests                                                                                                                                                                                                                  START
                                                                Processing                                                                                                                                                 REWORK
                                                                                                                                                                                                                         SUB-CYCLE(S)                             HERE
                                                                                                                                                                                                           !
DIGITAL SOURCES




                                                                                                                                                                                                                                 1
                                                                                                                                                                                                                                 2
                                                                                                                                                                                                                                 3                       PRECIPITATING
                  EMAIL • Plain text                                                                                                                              Affirm             Equity                                                                INCIDENT         Bankers Box
                          • Rich text
                          • PDFs
                                                                                                                          Enterprise
                          • MS Office docs                                                            Enterprise           Content                                                         Complain
                                                                                                                                                                             Detract
                          • Photos, scans, etc.           DI GI TAL                                  Data Sources         Repository                                                                                                                                       Physical            Digital
                                                                                                                                                   Satisfaction
                                                                                                                                                                                                                                                Request                    Long-term           Long-term
                                                          M AI L ROOM                                                                                                                                                                                                      Storage             Storage
                                                          OPERATI ON S
         DIGITAL • WiFi/3G camera photos                   • Scan: digital                                          INTERACTION                                                 Insufficient
   D I SPATC HES • Faxes                                     image                                                  DEVICES                                                                                                                         Assess
                          • FTP/HTTP transfers
                                                           • Capture / crop                                              PC                             Confirm




                                                                                                                                                                                                                                                 S
                          • eNewsletters




                                                                                                                                                                                                                                             TION
                                                             digital image




                                                                                                                                                                                                                             S
                                                                                                                                                                                                                         IE
                                                                                                                                                                                                                        RT
                                                                                                                                                                                                                        PA




                                                                                                                                                                                                                                          ORA
                                                           • Classify / index                                                                                                                             ER
                                                                                                                                                                                                               NA
                                                                                                                                                                                                                    L




                                                                                                                                                                                                                                       LAB
                                                           • Extract data item                                           Smart                                                                      INT
                    WEB • User-generated content




                                                                                                                                                                                                                                     OL
                                                                                                                         Phone




                                                                                                                                                                                                                                   YC
                                                                – OCR or Auto-Fill
                  POSTS • Syndicated content




                                                                                                                                                                                                                                 RT
                                                                                                                                                                                                                     A
                                                                – Manual data input                                                                                                                               TIP
                                                                                                                                                                                                                UL
                          • Webpage "snapshot"             • Dispatch to                                                 Web Mail                                                                        STE
                                                                                                                                                                                                            P, M




                                                                                                                                                                                                                                                              S
                                                                                                                                                                                                     ULTI




                                                                                                                                                                                                                                                          IE
                                                                                                                                                                           Fulfill




                                                                                                                                                                                                                                                         RT
                          • Session recording                workflow                                                                                                                     Plan      M
                                                                                                                                                                                                                                                    AL
                                                                                                                                                                                                                                                         PA
                                                                                                                                                                                                                                               RN
                                                                                                                                                                                                                                          TE
                                                                                                                         Fax                                                                                                         EX


                                                                                                                                                                       SERV
                                                         Mail_Flow_Model.A.1.5
                                                         © 2009 GISTICS All rights reserved.                             Handheld                                             ICE-FULFILLMENT CYCLE
                                                                                                                                                                                            Service_Fulfillment_Cycle.A.2.2 ©2009 GISTICS All rights reserved




       GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                                                                                                      12
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


How can an activity model of enterprise mail flows highlight the value of digital mail processing?




                                                                                                                                                                                                                                                      DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
CENTURIES OF HABIT                                                                 TOTAL ELAPSED END-TO-END TIMES                                                         DIGITIZE NOW OR LATER
Organizations have received and handled mail                                       This activity model shows that physical                                                This activity model also calls attention to a
for nearly two centuries without much change                                       workflow takes an average of three to eight                                            stunning irony: enterprises will eventually
in the basic structure or task.                                                    days to complete mail transport within a                                               digitize many of their business records
                                                                                   large enterprise and another four to nine                                              and customer communications and incur
The figure below depicts a general activity
                                                                                   days to complete a service fulfillment—the                                             tremendous costs of a paper-based workflow.
model for the typical physical and digital mail
                                                                                   satisfaction of a request for information or                                           This paper makes the now self-evident case
flows, calling attention to two workflows: mail
                                                                                   service. Digital mail processing slashes the                                           to digitize paper-based mail upon receipt,
transport and service fulfillment.
                                                                                   total number of days elapsed (both workflows                                           eliminating the costs of duplication, local
                                                                                   combined) to 1.3 to three days, saving 5.7 to                                          storage of 9 ± 5 duplicates, the labor of an
                                                                                   14 days.                                                                               end-of-lifecycle assessment, and long-term
                                                                                                                                                                          record storage.
ACTIVITY MODEL OF TYPICAL MAIL FLOWS REVEAL SIGNIFICANT OPPORTUNITIES FOR PROCESS IMPROVEMENT
         MAIL TRANSPORT WORKFLOW         SERVICE FULFILLMENT WORKFLOW                                                                                                                        TOTAL DAYS ELAPSED
              3 to 8 Calendar Days                                     4 to 9 Calendar Days                                                                                                   7 to 17 Days
            RE CE IVE                      M OVE                  AS S E S S                      RESEARCH                  R E S O LV E                      R E S POND                      MONI TOR                     ARC HI V E
            • Intake mail tubs             • Load carts           • Read incoming                 • Access workflow         • Review request                  • Telephone or fax              • Confirm satisfaction       • Assess items
Physical




            • Unbundle packs               • Visit mail-stop      • Verify account                • Forward to staffer      • Edit or request                   summary                         or rework subcycle         • Certify to policy
            • Bulk sort: piles             • Pick-up bundle       • Determine issue               • Confirm hand-off          clarification(s)                • Print cover letter            • Run reports and            • Store or DIGITIZE
                 – Discard junk mail       • Put to inbox         • Open new case                 • Research answers        • Discuss / IM / Email            • Package for mailing             summaries                    official records
                 – Reroute to other                                                                                         • Approve or reject               • Route pick-up                 • Expedite lagging cases     • Journal items
                   address(es)             • Pick-up items        • Label case folder             • Compose response
                                           • Return to desk       • Create correspon-             • Add to correspondence   • Add to correspondence           • Update case folder            • Declare official records   • Offline / offsite
                 – High / low priority
                                           • Photocopy (3)          dence folder                    folder                    folder                                                          • Destroy (16 to 18)         • Warehouse or
            • Certify received                                                                                                                                                                  photocopy duplicates
                                                                  • Initiate workflow             • Request approval                                                                                                         destroy
            • Pre-route to trays           • File a copy


                                                                                                                                                                                             TOTAL DAYS ELAPSED
              0.5 to 1 Calendar Day                                    0.8 to 3 Calendar Days                                                                                                 1.3 to 4 Days

                           CA P TU RE                          M AN AG E                          PROCESS                   R E S O LV E                      P R OV I S I ON                   MONI TOR                   ARC HI V E
                                                               • Ingest into repository           • Read online             • Review request                  • Execute email with              • Review cases             • Assess items
                     DIG ITAL M AI L                           • Assign to workflow(s)            • Access account          • Edit or request                   links:                            pending                  • Certify to policy
                     P ROC E S S I N G                         • Multi-route items                • Determine issue           clarification(s)                     – Teleservice center
                                                                                                                                                                   – Customer engagement
                                                                                                                                                                                                • Run reports and
                                                                                                                                                                                                  summaries
                                                                                                                                                                                                                           • Store official
                                                                  – Teleservice representative    • Collaborate online      • Discuss / instant                                                                              records
                     • Scan: digital image
Digital




                                                                                                                                                                     package
                                                                  – Account manager                 with multiple parties     message / email                      – Interactive FAQ
                                                                                                                                                                                                • Expedite lagging         • Journal items
                     • Capture / crop digital                  • Link to policy manager                                                                                                           cases
                                                                                                  • Research answers        • Approve or reject                      database                                              • Offline / offsite
                       image                                   • Integrate to IT services                                                                     • Telephone with                  • Declare official
                                                                                                  • Compose response        • Notify Account                                                                               • Warehouse /
                     • Classify / index                           – ERP, CRM, Portals                                         Service                           confirmation                      records
                                                                  – ECM, BPM, Email               • Request approval                                                                                                         destroy
                     • Extract data item                                                                                                                                                        • Destroy duplicate
                          – OCR or Auto-Fill                   • Build customer                                                                                                                   digital copies
                          – Manual data input                    engagement objects                                         Mail_Asset_Lifecycle.A.1.7 © 2009 GISTICS All rights reserved.

                     • Dispatch to workflow                       – Previous correspondences, mailers,
                                                                    business records, etc.
     GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                                              13
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


Which of these types of documents flow through your enterprise operations?




                                                                                                                                                                                                                                                                              DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
MAILFLOWS OF AN ENTERPRISE                                                                    Schedules                                      Equipment Maintenance Plans                                  Bills of Material
                                                                                              Spreadsheets                                   Equipment Profiles                                           Channel Lists
The table on the right depicts a partial list of documents                                    Text Documents                                 Equipment Receipts (POP)                                     Commission Reports
                                                                                              Web Documents                                  Guidelines                                                   Customer Communications
that most enterprises process on a regular basis.                                                                                            Maintenance and Repair Docs                                  Inventory Reports
                                                                                              MARKETING OPERATIONS                           Maintenance History Summaries                                Leads Reports
Items underlined represent high-risk inbound mailflows                                        Coupons                                        Maintenance Records                                          Letters of Intent
for which firms likely pay a high “analog tax” in the form                                    General Business Reports                       Maintenance Schedules                                        Presentations
                                                                                              Marketing Reports                              Programmed Maintenance (by Mfr.)                             Price Lists
of significant time delays, paper management costs, and                                       Multimedia Presentations                       Repair Expense Documents                                     Product / Service Catalogs
barriers to fast-cycle collaboration among teams.                                             Newsletters                                    Repair Expense Tracking                                      Promotion Materials
                                                                                              Product Info and Spec Sheets                   Schedules                                                    Proposals
The figure to the right depicts the operational capabilities                                  Product / Service Catalogs                     Tracking Reports                                             Quotes
of attracting and keeping customers for life—customer                                         Promotions Brochures                                                                                        Receipts
                                                                                              Qualification / Reference Reports              SALES OPERATIONS                                             Return / Credit Documents
engagement—calling attention to the two applications of                                       Surveys                                        Account Statements                                           Sales Agreements
transactional content processing: digital mail processing                                     Targeted Emails                                Arrangement Letters                                          Sales Reports
that speeds in-bound customer communications                 HR AND PAYROLL
                                                                                                                                                      MAILFLOW DELAYS AFFECT CUSTOMER ENGAGEMENT
and requests to the appropriate department and               Resumes
customer portals that provision content and self-service Cover Letters
                                                             Recruiting Collateral                                                                                                            Custome
applications to customers, trade partners, and customer- Employment Policy Handbooks                                                                                         ilities
                                                                                                                                                                                     of the
                                                                                                                                                                                                     r En
facing staff.                                                Employee Surveys                                                                                           Capab                            gag
                                                                                                                                                                      l                                     em
                                                                                              Benefit Enrollment Documents                                          na                                        e
                                                                                                                                                                 tio
                                                                                                                                                                                         Personal
ACCOUNTING                                    CALL CENTERS                                    Benefit Claim Documents                                                                 Interaction-
                                                                                              OSHA Compliance Docs                                                                                        Fulfillment




                                                                                                                                                                                                                                                              nt
                                                                                                                                                          era
Account Statements                            Account Statements                                                                                                                Customer                                         Individualized
                                                                                                                                                                                 Service                                           Email and




                                                                                                                                                                                                                                                                 Cy
Annual Reports                                Bills                                           Federal/State Compliance Docs




                                                                                                                                                        Op
                                                                                                                                                                               (Operational CRM)                                    Services




                                                                                                                                                                                                                                                                   cle
Financial Models                              Collection Notes                                Training Seminar Materials
Financial Statements                          Customer Communications                         Workbooks / Online Resources                                   Sales Force                                                                            Multichannel
General Ledger                                Incident Reports                                Salary Surveys                                                 Automation
                                                                                                                                                              (Tactical CRM)
                                                                                                                                                                                                                                                     Analytics
Internal Audit Reports                        Notification Letters                            Job Opening Announcements
Internal Project Analyses                     Price Lists                                     Skills Matrices




                                                                                                                                                                                                   S




                                                                                                                                                                                                                             INS
                                                                                                                                                                                             ICE
Invoices                                      Product / Service Catalogs                      Work Agreements                                                                                               SERVING




                                                                                                                                                                                                                                 IGH
                                                                                                                                                                                           RV
Portfolio Management Reports                  Receipts                                                                                                   eCommerce                                                                                          Customer




                                                                                                                                                                                                                                    TS
                                                                                                                                                                                                         Customers




                                                                                                                                                                                        SE
                                                                                              PROCUREMENT




                                                                                                                                                                                                                                              ENT
                                                                                                                                                         and Web site                                                                                      Experience
Purchase Orders                               Service Outage Reports




                                                                                                                                                                                   MARK
                                                                                              Agreements                                                 Management                                       for Life                                        Management
Pro Forma Statements                          Service Reports / Notes
                                                                                              Catalogs




                                                                                                                                                                                                                                           EM
                                                                                                                                                                                                   ATTRACTING          KEEPING
Quarterly Statements                          Service Requests
                                                                                              Misc. Analysis Reports




                                                                                                                                                                                        ET




                                                                                                                                                                                                                                        AG
Tax Documents                                 Termination Notices
                                                                                              Payable Invoices                                                                                       DEVELOPMENT




                                                                                                                                                                                           I
                                                                                                                                                             Marketing                                                                                   Social




                                                                                                                                                                                                                                      N
                                              Collaboration                                                                                                                                    G




                                                                                                                                                                                           N
                                                                                              Price Lists




                                                                                                                                                                                                                                   A
                                                                                                                                                              Content                               OP          M                                        Media
BILL PRESENTMENT / PAYMENT                    Agreements                                                                                                    Management                                 ERATIONS                                         Monitoring
Account Statements                                                                            Product Manuals
                                              Calendars
Invoices                                                                                      Purchase Orders
                                              Correspondence                                                                                                                Content                                                 Voice of
Payment Advice Notes                                                                          Purchase Requisitions (BOMs)                                                                                                         Customer
                                              Design Drawings                                                                                                             Optimization                                              Content
Payment Orders / Histories                                                                    Receipts for Goods Received                                                                                   Agile
                                              Emails
                                                                                                                                                                       (SEO, Semantic tagging)
                                                                                                                                                                                                           Content                 Analysis
Receipts                                                                                      RFQs / RFPs
                                              Historical Documents                                                                                                                                         Creation
Vendor Profile Data Forms                                                                     Specification Sheets                                                                                    (DAM, Media Services,
                                              Marketing Collateral                                                                                                                                        Localization)
                                              Project Logs                                    PROJECT MANAGEMENT
                                              Proposals                                       Assignments
                                                                                                                                                                                Engagement_Cycle_Capabilities.A.1.7 ©2009 GISTICS All rights reserved


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ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


Which of these types of documents flow through these industries or supply chains?




                                                                                                                                                                                                                                 DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
MAILFLOW NOT SIMPLE
The table below depicts a partial list of documents that flow through particular industries and supply chains on a regular basis.
Items underlined represent high-risk inbound mailflows in which firms likely pay a high “analog tax” in the form of significant time delays, paper
management costs, and barriers to fast-cycle collaboration among decision-making teams.


BANKING                                         FINANCIAL INDUSTRY                               MANUFACTURING                                        TAX, LICENSE, & CUSTOMS                TRAVEL AND LODGING
Account Agreements                              Appraisals and estimates                         Bills of Material                                    Customs Documents                      Invoices
Account Balance Statements                      Customer Trade Orders                            CAD / CAM / CAE Drawings                             Customs Regulation Manuals             Itineraries
Credit Appraisals                               Trade Confirmations                              Component Catalogs                                   Denied / Restricted Party Lists (for   Reservation Confirmations
Customer Correspondence                         Research Reports                                 Detailed Product Specifications                      Drawback Documents)                    Tickets
Customer Payments                               Account Balance Statements                       Inspection Approvals                                 Exports                                Travel Preference Reports
Loan Applications                                                                                Inventory Reports                                    General Instructions
Prospects Lists and Information                 INSURANCE                                        Operating Procedures & Manuals                       Import/Export Licenses                 WAREHOUSE MANAGEMENT
                                                Accident/ Catastrophe Reports                    Quality Specs                                        Other Regulatory Compliance Docs       Agreements
CONSTRUCTION                                    Claims Reports                                   Repair Logs                                          Sales and Use Tax Docs                 Barcode Labels
Agreements                                      Cost Estimates                                   Request Documents                                    Tariff / Rate Rules                    Bills of Lading / Airbills
Closing Statements                              Disputes / Counter claims                        Shipping Tags                                        US / VAT Tax Docs                      Bills / Invoices / Receipts
Construction Permit Requests                    Insurance Policy Agreements                      Supplier Lists / Info                                                                       Broker / Freight Forwarder Costs
Construction Permits                            Invoices                                                                                              TRANSPORTATION / LOGISTICS             Capacity Planning, Optimization,
                                                                                                 Test Plans
Construction Plans / Designs                    Lists of Asset Repair Vendors                                                                         Agreements                             and Demand Forecasting Reports
Construction Status Reports                     Payments                                         PROFESSIONAL SERVICES                                Barcode Labels                         Daily Schedules
Inspection Certificates                         Prospects Lists                                  Agreements                                           Bills of Lading / Airbills             Exception Handling Documents
Invoices                                        Repair Work Approvals                            Budget Reports                                       Bills / Invoices                       Feedback / Quality Surveys
Material Requirements Sheets                    Risk Profiling Reports                           Invoices                                             Broker / Forwarder Costs               General Instructions / Manuals
Purchase Orders                                                                                  Letters and Reports                                  Capacity Planning, Optimization,       Inventory Reports
Specification Sheets                            LEGAL SERVICES                                   Plans and Schedules                                  and Demand Forecasting Reports         Loss / Damage Claim Documents
                                                Agreements                                       Proposals                                            Daily Schedules & Inventory            Order and Order Detail Documents
HEALTHCARE INDUSTRY                             Arbitration Agreements                           Purchase Orders                                      Exception Handling Documents           Performance Reports
Appointment Books                               Corporate Filings                                Time and Expense Reports                             Feedback / Quality Surveys             Pickup Request Documents
Doctor Fees Reports                             Court Filings                                                                                         General Instructions / Manuals         Price Lists
Insurance Applications                          Lawsuits                                         PHARMACEUTICAL                                       Landed Cost Estimation Reports         Quotes
Insurance Cards                                 Letters and Reports                              Chemical Reports                                     Loss/Damage Claim Documents            Reorder Documents
Patient Records                                 New Patent Filings                               Clinical Test Procedure Manuals                      Performance Reports                    Return Documents
Payment Invoices                                Proposals                                        New Drug Application (NDA)                           Pickup Request Documents
Prescription Slips                              Time and Expense Reports                         Approvals                                            Price Lists
Verifications of Insurance                                                                       NDA Filings                                          Quotes
Coverage                                                                                         Patient Summaries
X-rays                                                                                                                                                Receipts
                                                                                                 Research Plans and Schedules                         Return Documents
                                                                                                 Research Reports                                     Service Level Reports
                                                                                                 Statistical Analysis Reports
                                                                                                 Testing Reports / Records




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ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


How long must firms store various types of business records and customer communications?




                                                                                                                                                                                                                              DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
BUSINESS RECORD RETENTION                                                               ONE YEAR                                            Inventories of products, materials,     Minutes books of directors and
                                                                                        Correspondence with customers and                   supplies                                stockholders
Digital mail processing helps to reduce the cost of                                     vendors                                             Invoices to customers                   Payroll tax returns
                                                                                        Duplicate deposit slips                             Notes receivable ledgers, schedules     Property records
records management, eliminating the surprising                                          Purchase orders (other than                         Payroll records and summaries,          Real estate appraisals by external
and largely hidden costs of labor, physical storage,                                    purchasing department copy)                         including payment to pensioners         appraisers
                                                                                        Receiving sheets                                    Plant cost ledgers                      Retirement and pension records
photocopying, and productivity lost in searching                                        Requisitions and stockroom                          Purchasing department copies of         Sales and use tax returns
for or re-creating lost or misplaced documents.                                         withdrawal forms                                    purchase orders                         Tax returns and worksheets (not
                                                                                                                                            Sales records                           mandated but recommended)
                                                                                        THREE YEARS
According to a published report of AIIM, an                                             Employee personnel records (after
                                                                                                                                            Time books                              Trademark and patent registrations
                                                                                                                                            Travel and entertainment records        Training manuals
international professional association dedicated to                                     termination)
                                                                                                                                            Voucher registers and schedules
information and image management, the average                                           Employment applications
                                                                                                                                            Vouchers for payments to vendors,
                                                                                        Expired insurance policies
company studied spends.                                                                 Form I-9 (employment eligibility
                                                                                                                                            employees, etc.                         NOTE: Document
 • $20 in labor to file one document                                                    verification)                                        LONG TERM                              retention regulations and
                                                                                        General correspondence                              Annual financial statements             policies vary according
 • $120 in labor to find a misfiled document                                            Help wanted ads                                     Audit reports from CPA / accountant
                                                                                        Internal audit reports                              Business permits                        to a particular nation and
 • $220 in labor to reproduce a lost document                                           Internal reports                                    Buy-sell agreements                     province.
 • $8 to $15 to courier or overnight a document                                         Petty cash vouchers                                 Canceled checks: fixed assets,
                                                                                        Physical inventory tags                             income taxes
 • $12,000 per year to maintain one file cabinet                                        Savings bond registration records of                Cash disbursements journals
   with four file drawers                                                               employees                                           Charts of accounts
                                                                                        Time cards for hourly employees                     Contracts
 AIIM also reports that a typical firm                                                                                                      Leases now in effect
                                                                                        SEVEN YEARS
 • Photocopies a typical document 19 times                                              Accident reports and claims
                                                                                                                                            Corporate documents (incorporation,
                                                                                                                                            charter, by-laws, etc.)
 • Loses 7.5 percent of all documents                                                   Accounts payable ledgers and
                                                                                        schedules
                                                                                                                                            Deeds, mortgages, bills of sale
                                                                                                                                            Depreciation schedules
 • Misfiles a remaining 3 percent of all documents                                      Accounts receivable ledgers and
                                                                                                                                            Documents substantiating fixed asset
                                                                                        schedules
                                                                                                                                            additions
In addition, AIIM reports, professionals spend 11                                       Auto mileage logs
                                                                                                                                            Employee records: actuarial reports,
                                                                                        Bank statements and reconciliations                 financial statements, correspondence
percent of their time reading information and up                                        Canceled checks: general, payroll,                  with IRS and Dept. of Labor, plan and
to 50 percent of their time searching for pertinent                                     payroll taxes                                       trust agreements
                                                                                        Canceled stock and bond certificates
information.                                                                            Charitable contribution
                                                                                                                                            General and subsidiary ledgers and
                                                                                                                                            year-end trial balances
                                                                                        acknowledgments of $250 or more                     Insurance records: current accident
INVESTMENT JUSTIFICATION                                                                Employment tax records                              reports, claims, and policies
                                                                                        Expense analyses and expense                        Investment trade confirmations
                                                                                        distribution schedules
The infrastructure of digital mail processing                                           Expired contracts, leases
                                                                                                                                            IRS revenue agents’ reports
                                                                                                                                            Legal records, correspondence
includes records management and workflow—                                               Expired option records
critical elements of enterprise records
management.



   GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                        16
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


What constitutes a customer engagement package, a logical collection of digital contents of a digital customer file?




                                                                                                                                                                                                                                                                              DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
TRANSFORMING CONTENT INTO ENGAGEMENT                                             Similar in structure to virtual case files and                                           emails, forms, etc. within a service portal, or
                                                                                 digital account files, customer engagement                                               enable users to download policy-managed
Frontline staff interacts and communicates with
                                                                                 packages may contain emails and attached                                                 PDFs—a customer engagement package.
customers throughout the workday, using the
                                                                                 documents, Web pages from corporate and
best available information to answer questions,                                                                                                                           Customer engagement packages also enable
                                                                                 social networking sites, videos, and photos.
render services, and keep customers satisfied.                                                                                                                            frontline staff, partners, and managers
                                                                                 Frontline staff, partners, and managers may                                              to simultaneously access any customer
A closer examination of how frontline staff
                                                                                 simultaneously access any customer                                                       communication or content—no hand off’s, no
engages customers and suggests three
                                                                                 engagement package, speeding ad hoc                                                      lost folders, and no delays.
transformational ideas:
                                                                                 collaboration, decision making, and approvals.
 • Live improvisational performances by
   frontline staff engage customers in problem-                                  PROVISIONING                    STRATEGIC ENDPOINT OF DIGITAL MAIL PROCESSING: CUSTOMER ENGAGEMENT PACKAGES
   solving collaborations.                                                       PACKAGES TO
 • A fully informed frontline staff, accessing all                               CUSTOMERS                            CONTENT TYPES BY SO U R CE
   pertinent information related to the customer,                                                                 Collaborative Content               MASTERED PACKAGES
                                                                                 A well-designed                     • Email                          - Vetted for external use
   stands a much better chance of satisfying                                                                                                                                                         PDF object or online folder
                                                                                 document archive
                                                                                                                                                      - Packaged to provision
                                                                                                                     • Discussion boards
                                                                                                                                                                                                                                    Customer
   the customer.
                                                                                                                     • Social networks                - Linked to CRM & ERP
                                                                                 and workflow                        • Workspace annotations                                                                                        Engagement
 • Integrated collections of all pertinent                                       platform enables                 Static or Locked Files
                                                                                                                                                                                                                                    Package
   customer information require digital objects,                                 authorized
                                                                                                                     • CAD drawings
                                                                                                                     • Illustrations
                                                                                                                                                      COLLABORATIVE
                                                                                                                                                      OBJECT SETS
                                                                                                                                                                                                                                    • Dates and times
                                                                                                                                                                                                                                      created, used,
   workflow engines, and content archiving.




                                                                                                                                                                                  CONTENT WORKFLOW
                                                                                                                     • Maps / geospatial                                                              Multi-party workspaces
                                                                                 personnel to                        • PDFs
                                                                                                                                                      - Extensive metadata
                                                                                                                                                      - Policy-managed routes
                                                                                                                                                                                                                                      and retired
                                                                                 share portions                                                                                                                                     • Customer
                                                                                                                     • Photos
The figure on the right depicts a content                                                                            • Scans (film or
                                                                                                                                                      - Storage governance
                                                                                                                                                                                                                                      comments,
services workflow for improving customer                                         of customer                            paper-based)
                                                                                                                  Editable Documents
                                                                                                                                                                                                                                      communications,

engagement among frontline staff,                                                engagement                          • Drawings                       BASIC CONTENT
                                                                                                                                                                                                                                      and messages
                                                                                                                                                                                                                                    • Commitments
                                                                                 packages with
                                                                                                                     • Presentations
emphasizing the production and provisioning
                                                                                                                                                      - Known source
                                                                                                                     • Text files                     - Basic metadata                                                                mapped to
of customer engagement packages to the                                           customers, as                       • Spreadsheets                   - Basic storage                                                                 policies and
                                                                                                                                                                                                                                      tracking
frontline staffer.                                                               well as service                  Time-based
                                                                                                                     • Audio: voice, music, signals
                                                                                 intermediaries
                                                                                                                                                                                                                                   Customer_Engagement)_Packages.1.5
                                                                                                                     • Video: camcorder,              DARK                                                                          ©2009 GISTICS, All Rights Reserved
                                                                                                                       webcam, broadcast,
CUSTOMER ENGAGEMENT PACKAGES                                                     (maintenance                          streaming
                                                                                                                                                      CONTENT
                                                                                                                                                      - Digital objects
                                                                                 and repair
                                                                                                                     • Webcast, presentation,
                                                                                                                       webinar                        - No descriptive
An accessible, digital collection of pertinent                                                                                                          metadata
                                                                                 organizations).                  Physical Objects
customer information, enabling frontline
                                                                                 Authorized                          • Postal mail
staffers to more effectively engage and satisfy                                                                      • Express mail/Overnight
                                                                                 personnel can                       • Shipping manifests
customers and trade partners, defines the
                                                                                 send an email
strategic endpoint of digital mail processing                                                                                                   DIGITAL       EMAIL               WEB                Digital mail processing adds scans of physical
                                                                                 with hyperlinks to                                              MAIL          AND                SITES
                                                                                                                                              PROCESSING     DESKTOP                                 mail objects to online workflows, contributing to
                                                                                 view documents,
                                                                                                                                                                                                     the production of customer engagement packages.

   GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                                                                        17
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


What elements comprise a customer engagement package?




                                                                                                                                                                                                                                                                                                       DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
ENTERPRISE CONTENT MASH-UPS                                                      For example, a customer engagement package                                                     ALL IN ONE PLACE FOR MULTI-PARTY COLLABORATION
                                                                                 contains all digital content related to one open
Young adults today grab mash-up content—                                                                                                                                        The figure below also depicts how multiple
                                                                                 customer case, including emails, forms, faxes,
photos, graphics, videos, music—creating a                                                                                                                                      parties can examine all or portions of a
                                                                                 drawings, receipts, etc.
mixed media file that they subsequently share                                                                                                                                   package in a concurrent or time-shifted
with friends.                                                                    Authorized users may access customer                                                           basis, adding comments and visual
                                                                                 engagement packages in a customer portal or                                                    annotations in a specific context of a customer
The figure below depicts an example of how
                                                                                 an internal service portal.                                                                    engagement (disputed item on invoice or
an organization might combine emails, forms,
                                                                                                                                                                                return authorization). Concurrent, multi-party
videos, and faxes related to a particular
                                                                                                                                                                                collaboration can eliminate hours or days in
account, creating a customer engagement
                                                                                                                                                                                fulfilling a request for service or information.
package.



DIGITAL MAIL PROCESSING SUPPORTS THE TRANSFORMATION PAPER-BASED FORMS AND COMMUNICATIONS INTO MIXED-MEDIA CUSTOMER ENGAGEMENT PACKAGES
                                                                                   EMAIL                      FORM EMAIL                          DISCUSSION THREAD            SCREENCAST VIDEO             WEB CONFERENCES              PHOTOGRAPHIC EVIDENCE
EXTERNAL MULTI-PARTY COLLABORATION
• Customers, subcontractors, trade partners


 CUSTOMER
 PORTAL

      Customer Engagement Package
                                                                                                                                        DIGITAL OBJECTS OF CUSTOMER ENGAGEMENT PACKAGES
                                    POLICY-MANAGED PDF
     INTEGRATED VIEW
                                                                       CREDIT APPLICATION                 RMA ( Return Material Authorization )             FAX                                   LETTER                                     CAD DRAWING




  SERVICE                                                SERVICE
  FULFILLMENT                                            PORTAL
  CYCLE       SS           F
              E
             AS S




                           UL




                                                                       BUSINESS REPLY MAIL               SHIPPING MANIFEST                                  SHIPPING RECEIPT                      JOURNAL                                    REPORT
                             FILL




                    PLAN


INTERNAL MULTI-PARTY COLLABORATION
• Account executives, teleservice representatives, credit managers,
 risk and compliance officers, department heads, senior executives
                                                                                                                                                  DIGITIZED SCANS OR PAPER-BASED MAIL
                                                                                                                                                                                                                          Customer_Engagement_Package.B.1.2 © 2009 GISTICS All rights reserved.




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ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems




  Section 4
  Strategic Use Cases and
  Payback Scenarios
  PAGE ESSENTIAL QUESTIONS ADDRESSED                                                                                                           PAGE ESSENTIAL QUESTIONS ADDRESSED
   20 What makes an IT investment strategic?                                                                                                    30 How can digital mail-processing of account payables save
   21 What drives the return on IT investments?                                                                                                    $10,002,376 in processing costs and $1,153,125 in ancillary
                                                                                                                                                   gains from fewer mistakes and overpayments?
   22 What assumptions underlie the productivity dividends in mortgage processing,
      emphasizing the benefits of digital mail processing?                                                                                      31 What assumptions underlie the productivity dividends of the faster,
                                                                                                                                                   more accurate service fulfillment cycles in a public institution,
   23 How can digital mail processing of new loans reduce cycle time?                                                                              emphasizing the benefits of digital mail processing?
   24 How can digital mail processing of new loans save $11,918,750 in costs,                                                                   32 How can digital mail-processing reduce cycle time in the
      add $20,555,556 in new loans and add $49,636,409 in incremental interest                                                                     fulfillment of citizens’ requests for information or service by public
      earnings?                                                                                                                                    institutions?
   25 What assumptions underlie the productivity dividends in new account                                                                       33 How can digital mail-processing in public institutions save
      establishment, emphasizing the benefits of digital mail processing?                                                                          $28,330,455 in processing costs, $4,666,667 in incremental
   26 How can digital mail-processing reduce cycle time in new account                                                                             revenues, and $210,000,000 in overall economic impact?
      establishments?
   27 How can digital mail-processing of new account establishments save
      $6,807,301 in costs and add $148,750,000 in potential new revenues?
   28 What assumptions underlie the productivity dividends of the faster, more
      accurate processing of account payables, benefits deriving from digital mail
      processing?
   29 How can digital mail-processing reduce cycle time for accounts payable
      processing?



   GISTICS | EXECUT IVE W HITE PA P ER | Digit al Mailroom s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                      19
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


What makes an IT investment strategic?




                                                                                                                                                                                                                                                                DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
INNOVATION AND MARKETING                                                                                                   BASIC STRATEGY MAP DEPICTS THREE AREAS OF RETURN ON IT INVESTMENT

Peter Drucker, expert on management, wryly
noted, “Only two things create value: innovation                                                                                                                Increase return
and marketing. All else is cost.”                                                                                                                                  on capital

The figure on the right depicts a generic strategy



                                                                                                       1
map, emphasizing the practical implementation of
Drucker’s dictum.                                                                                           Financial                Improve
                                                                                                                                                                Increase sales in                              Grow sales in
                                                                                                            Focus                                              existing segments                               new products
In this paper, we make the case that digital                                                                                       productivity                   and markets                                  and services
mail processing delivers substantial short-term
productivity improvements, increases sales in
existing segments and marketing, and supports                                                                                 Improve Operating                 Grow High-Value                            Accelerate Product
                                                                                                                             Quality and Efficiency          Customer Relationships                           Innovation
bringing innovation to market—greater levels of


                                                                                                       2
customer engagement and faster fulfillment of                                                                                  Become acknowledged             Provide valued service,                      Introduce innovative,
requests for information or services.                                                                       Customer                                            application expertise,                        high-performance
                                                                                                            Focus                 leader in quality
                                                                                                                                    and reliability                  and support                            products or solutions
In this section of the paper, we will examine four
strategic use-case scenarios, correlating the


                                                                                                       3
                                                                                                                                                                                                            Excel at technology,
criteria as depicted in this strategy map to the                                                                                Improve supply chain                                                       product development,
                                                                                                                                                                 Optimize customer
                                                                                                            Process                efficiency and
following:                                                                                                  Focus                  effectiveness
                                                                                                                                                                    profitability                              and lifecycle
                                                                                                                                                                                                               management
 • Processing new loan applications
 • Closing an accounts receivable                                                                                               Improve quality, cost,           Expand channels,                         Identify next-generation
                                                                                                                                   and flexibility of              offerings, and
 • Processing a new, complex order                                                                                               operating processes                  markets
                                                                                                                                                                                                           market opportunities
 • Processing a new mortgage.
In each use case, we will compare the activity                                                                                                                   Build and maintain
                                                                                                                                                                  strong customer
costs of current physical mail and service                                                                                                                          relationships
fulfillment workflows with all-digital workflows
enabled by digital mail processing.




                                                                                                       4
                                                                                                                                                         Create a High-Performance Culture
                                                                                                            Learning              Expand and builld                                                          Enable and require a
                                                                                                                                                                 Develop leadership
                                                                                                            and                    strategic skills,
                                                                                                                                                                 and an execution-                           continuous learning
                                                                                                            Growth                   capabilities,                                                             and sharing of
                                                                                                                                                                   driven culture
                                                                                                            Focus                   and expertise                                                                 knowledge
                                                                                                                                                                            StrategyMap_Generic.D.1.3c © 2009 GISTICS Incorporated, All rights reserved.



   GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                                                          20
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


What drives the return on IT investments?




                                                                                                                                                                                                                                                                                                                                                      DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
THE PROMISE AND REALITY OF IT INVESTMENTS                                                                                              Personal computers, packaged software,                                                                                                20-20 INSIGHT
                                                                                                                                       and local area networks enabled many firms
Each new wave of information technology                                                                                                                                                                                                                                      GISTICS’ research of hundreds of deployed
                                                                                                                                       to eliminate typing pools and clerical staff.
arrives with a unique set of opportunities.                                                                                                                                                                                                                                  systems at 15,000+ end-use firms reveals
                                                                                                                                       This opportunity required new investments in
                                                                                                                                                                                                                                                                             that bottom-up automation solutions yield the
The arrival of mainframes gave many                                                                                                    industry-standard hardware and software, as
                                                                                                                                                                                                                                                                             highest return on investment when compared
firms unprecedented ability to control the                                                                                             well as in user support and help desks.
                                                                                                                                                                                                                                                                             to other options. Why? Workflow and
fundamentals of their businesses, in particular,
                                                                                                                                        The Internet enables many firms to engage                                                                                            workgroup automation rarely addresses more
inventory and accounting. However, this
                                                                                                                                       customers worldwide 24x7, reducing costs                                                                                              than a small, tightly focused group of users.
opportunity demanded mastery of software
                                                                                                                                       and time-to-market cycles. This opportunity
development.                                                                                                                                                                                                                                                                 The figures below depict the distilled insights
                                                                                                                                       still requires huge investments in specialized
                                                                                                                                                                                                                                                                             of industry research: The highest return-
Minicomputers and packaged software gave                                                                                               IT infrastructure and in reengineering core
                                                                                                                                                                                                                                                                             on-investment for information technology
many firms the ability to automate specialized                                                                                         business processes.
                                                                                                                                                                                                                                                                             results from quickly deployed solutions
business processes and departments, such
                                                                                                                                                                                                                                                                             (usually in workgroups or departments) that
as human resources and manufacturing.
                                                                                                                                                                                                                                                                             successfully automate a business process.
This opportunity required new investments in
training.
                                                                                           WORKFLOW AUTOMATION DELIVERS GREATEST RETURNS                                                                                                         BY SPEEDING CYCLE TIMES FROM THE BOTTOM UP
                                                                    HIGH                                                                                                                HIGHLY
                                                                                                                                                                                      AUTOMATED                                                                                                    Enterprise
                                                                                                                                                                                                                                                             Workgroup                              systems
                                                                                                                                                                                                                                                              systems
                  productivity gains, savings, or increased sales




                                                                                               Workflow
                    Number of times total cost returned from




                                                                                              automation      Workgroup                                                               procedures, processes, or practices
                                                                                                                                                                                                                                                                                              Workflow
                                                                                                                                                                                                                            EMBEDDED KNOWLEDGE
                                                                    RETURN ON INVESTMENT




                                                                                                                                                  Enterprise
                                                                                                               systems
                                                                                                                                                                                          Business rules automating


                                                                                                                                                   systems                                                                                                                                   automation
                                                                                                                                                                                                                                                               Departmental
                                                                                                                                                                                                                                                                 systems

                                                                                                                Departmental
                                                                                                                  systems


                                                                                                       Desktop                                                                                                                                            Desktop
                                                                                                     applications                                                                                                                                       applications

                                                                                                                                                                                                  MOSTLY
                                                                    LOW                                                                                                                           MANUAL
                                                                                                                    ROIVsTimeB.1.2 ©2009 GISTICS Incorporated, All rights reserved.                                                                                 ROI-CycleVsKnowledgeB.1.2 ©2009 GISTICS Incorporated, All rights reserved.

                                                                                           SHORT            BREAKEVEN TIME                                                LONG                                                                   SLOW      BUSINESS PROCESS CYCLE TIME                                                FAST
                                                                                                     Time to recoup total cost of ownership                                                                                                                 Time to produce a finished unit of work

   GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                                                                                                                                                21
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


What assumptions underlie the productivity dividends in mortgage processing, emphasizing the benefits of digital
mail processing?




                                                                                                                                                                                                                                                                         DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
PROCESSING NEW LOANS                                                             “banking” the operational capacity to handle a                                                                      following pages) separates efficiency-based
                                                                                 significant increase in lending activity.                                                                           cost savings and revenue gains, calculating
Lending institutions make money by lending
                                                                                                                                                                                                     two different payback scenarios.
money to businesses and individuals.                                             SOURCE OF INCREASED REVENUES
                                                                                                                                                                                                     The activity-based data of the models
In the particular case of home mortgages, a                                      The payback model estimates potential                                                                               demonstrate cost savings from current
network of middlemen facilitate the lending                                      revenues from realizing 162 extra revenue-                                                                          workloads. Increase revenues derive from
process; these middlemen often include                                           producing days from a greater daily capacity                                                                        faster revenue cycles and greater capacity to
mortgage brokers, appraisers, and loan                                           to process loan applications already in the                                                                         process more loans.
aggregators—with great variation across                                          pipeline:
regional markets (states or nations).                                             • Daily processing capacity expands from 68.5                                                                      Unlike many efficiency benchmarks that
                                                                                    loans per day or 25,000 per year to 123.3                                                                        examine the contribution of workflow
The lending process often entails the
                                                                                    loans per day or 45,000 per year.                                                                                automation to a specific operation (such as
production, delivery, and review of 50-plus
                                                                                                                                                                                                     CRM)—where only a small number of users
pages of material: loan application forms,                                       Increased productivity in loan processing                                                                           benefit from the exchange certain types of
credit reports, legal disclosures, tax returns,                                  represents a potential of $70,191,964 on new                                                                        information—the productivity dividend as
appraisals, permits, waivers, etc.                                               revenue from existing lines of business and                                                                         described in this paper spreads to every
Digital mail processing addresses the labor-                                     revenue pipelines, comprise of the following:                                                                       aspect of the enterprise: sales, account
and cost-intensive process of getting the right                                   • Receipt of $20,555,556 in incremental                                                                            management, customer service, HR, legal,
documentation to all the authorized individuals                                     revenue from points (one percent of                                                                              administration, etc. Processing loans
involved in the lending process, minimizing                                         $185,000 loan package)                                                                                           represents one of several benefits of digital
delays, errors, and redundant activities of a                                     • Activation of a loan four days sooner,                                                                           mail process in lending institutions.
multi-step, multi-party workflow.                                                   thus earning
                                                                                                   FASTER PROCESSING OF IN-BOUND LOAN PACKAGES INCREASES REVENUE IN TWO WAYS
                                                                                    additional
ANNUAL COST SAVINGS
                                                                                    interest         MANUAL MAIL PROCESSING                 MANUAL SERVICE FULFILLMENT: PROCESSING NEW LOANS

The figure to the right depicts a net gain                                          income of                      2.0 Days                4.5 Days                                                                 7.0 Days
of four days of a lending institution that                                          $49,636,409      DIGITAL MAIL
                                                                                                     PROCESSING           DIGITAL SERVICE FULFILLMENT: PROCESSING NEW LOANS
processes 25,000 loan packages (averaging                                           calculated at       0.5 Days                                                4.5 Days              4 Day Cycle-time Gain
$185,000) per year, delivering $11,918,750 in                                       six percent
                                                                                                                  Productivity assumptions and drivers                                       Productivity dividends
total cost savings from:                                                            per annum.
                                                                                                                            LOAN PROCESSING                                                                                $10,668,750   Annual labor savings
 • $10,688,750 in annual labor savings or 75.5
                                                                                                                                                                                                  PHYSICAL /   DIGITAL

                                                                                                                            Daily loan processing capacity                                           68.5 123.3             $1,250,000   Annual material savings
   percent reduction labor                                                       DESCRIPTIVE                                                                                                                             $11,918,750     Total annual savings
                                                                                                                            Annual loan processing capacity                                      25,000 45,000
                                                                                 DATA MODEL
 • $1,250,000 in annual cost savings or 100                                                                                 Average loan amount                                                       $185,000              162 days     Extra revenue-producing

                                                                                 The detail
                                                                                                                                                                                                                                         days recouped
   percent reduction in materials                                                                                                                                                                                          $20,555,556   New loans closed
                                                                                 analytic model
A lending institution may realize these                                          (SEE two
                                                                                                                                                                                                                           $49,636,409   Additional interest from
                                                                                                                                                                                                                                         faster closings
labor savings in a staff reduction as well as                                                                  Productivity_Dividend_Digital_Mail_Loan.1.2 © 2009 GISTICS All rights reserved.
                                                                                                                                                                                                                         $70,191,964     Potential new revenue


   GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                                                                   22
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


How can digital mail processing of new loans reduce cycle time, emphasizing the benefits of digital mail processing?




                                                                                                                                                                                                                                                DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
Use-case payback scenario: Loan processing agent receives 50-page loan application package, including legal disclosures, forms, applicant
financials, and regulatory notices, from independent broker and initiates evaluation workflow.
  LABOR TASKS                                                     LABOR / MINUTES             NOTES
  SUBORDINATE ACTIVITIES                                         PHYSICAL        DIGITAL      DESCRIPTION OF ACTIVITIES: ITALICS INDICATES SYSTEM-ASSISTED ACTIVITIES OF A DIGITAL MAILROOM
  MAIL TRANSPORT WORKFLOW
                                                                                              Mailroom staff receive intake, unbundle, bulk sort (junk mail, periodicals, correspondence, priority, etc.)
  Central mail center - receives, processes and sorts mail               15            22
                                                                                              Receive, open, sort, categorize, execute digitization process, verify addressee and key reference IDs
                                                                                              Mailroom staff certifies receipt, pre-routes bundles by location, transports, ships or re-mails to office (often long distance)
  Certify, route and deliver to office location                          10              0
                                                                                              No action required, documents have been digitized and ingested and metadata, including addressee, that defines routing
                                                                                              Office administrator receives, sorts, and fills employee in boxes, agent retrieves mail periodically at the risk of interruptions and dis-
  Inter-office sorting, distribute to inbox, and
                                                                         15              0    tractions
  collecting by employee
                                                                                              Loan agent is notified via email or other digital channel (text or in-system message etc.) that package awaits his or her review
                                                                                              Agent makes 5 copies for: supervisor, underwriter, compliance manager, records management, a working copy and files each
  Photocopy and file loan application packages                           45              0
                                                                                              Application is accessible by all relevant parties with varying levels of access rights to all or part of the application package
  Review application package, verify sources, assess                                          Agent reviews and verifies application, determines issues to resolve accepts ownership of application processing
                                                                         60            15
  issue and determine actions                                                                 Configurable views into documents accelerate review efficiency, and offer potential for automation, quality control and governance
                                                                                              Agent starts new docket, creates various file folders, fills out process tracking forms
  Open new loan docket and set up organizational tools                   18              5
                                                                                              Agent opens new loan processing project or workspace in system
  Fill out processing forms, and distribute packages to                                       Agent defines routing and workflow, prepares request forms and sends packages to relevant workflow actors
                                                                         45              5
  multiple parties                                                                            Workflow automation configuration defines actors and distributes e-notifications prompting recipients to action
                                                                                              Agent executes complex review and approval workflow comprised of 5 participants: agent, agent’s supervisor, underwriter, compliance
  Execute parallel, multi-party review and approval
                                                                       600            150     manager, and records administrator
  cycle
                                                                                              System-facilitated review and approval workflows with collaboration tools and status-based access controls
  SUBTOTAL (minutes)                                                  808            197

  LABOR COSTS (dollars)                                           PHYSICAL         DIGITAL    DIFFERENCE BASED ON PORTION OF WORK COMPLETED BY EACH ACTOR
  Mailroom Staff (physical)                                          $8.33          $0.00     $20 per hour fully-burdened rate
  Mailroom Staff (digital)                                           $0.00        $11.00      $30 per hour fully-burdened rate
  Office Administrative Staff                                        $6.25          $0.00     $25 per hour fully-burdened rate
  Loan Processor Agent                                            $238.00         $49.58      $35 per hour fully-burdened rate
  Loan Processing Supervisor                                        $85.00        $21.25      $50 per hour fully-burdened rate
  Loan Underwriter                                                $168.00         $42.00      $60 per hour fully-burdened rate
  Compliance Manager                                                $45.00        $11.25      $45 per hour fully-burdened rate
  Records Management Administrator                                  $15.00          $3.75     $30 per hour fully-burdened rate
  TOTAL LABOR COSTS                                             $566.00 $139.00




   GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                                          23
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


How can digital mail processing of new loans save $11,918,750 in costs, add $20,555,556 in new loans and add
$49,636,409 in incremental interest earnings?




                                                                                                                                                                                                                    DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
 MATERIAL COSTS (dollars)                                        PHYSICAL                  DIGITAL     NOTES
 Mail transport, shipping, postage                                 $15.00                    $0.00     Blended cost of local or re-route containers, couriers & postage
 Photocopies                                                         $5.00                   $0.00     250 copies @ $.02 each
 File storage overhead and maintenance                             $30.00                    $0.00     $12K/yr. per 4-drawer file cabinet, assume 0.25% per app. package
 TOTAL MATERIAL COSTS                                             $50.00                   $0.00

 ANNUAL VOLUMES AND COSTS
 Loan applications processed per year                                                      25,000
 ANNUAL COSTS ($)                                                PHYSICAL                  DIGITAL     NOTES
 Annual labor costs                                          $14,139,583              $3,470,833       Fully-burdened labor costs
 Annual material costs                                        $1,250,000                     $0.00     Total material costs associated with process
 Annual rework costs                                          $2,770,125                $312,375       Costs from errors and missed deadlines. 10% reworks physical, 5% reworks digital
 TOTAL ANNUAL COSTS                                     $18,159,708               $3,783,208
 PRODUCTIVITY DIVIDENDS: COST SAVINGS, INCREASED PRODUCTIVITY, INCREMENTAL REVENUE
 ANNUAL SAVINGS ($)                                               SAVINGS                PERCENT       NOTES
 Total labor savings                                         $10,668,750                  75.45%       Percent reduction in costs, physical vs. digital
 Total material cost savings                                  $1,250,000                 100.00%       Percent reduction in costs, physical vs. digital
 TOTAL ANNUAL SAVINGS                                   $11,918,750

 CYCLE TIME (days)                                             PHYSICAL                   DIGITAL      NOTES
 Mail transport workflow                                                2.0                    0.5     Linear workflow to distribute physical packages, per loan processed
 Service fulfillment workflow                                           7.0                    4.5     Non-linear workflow - variable routing & alterations, per loan processed
 TOTAL DAYS PER LOAN                                                   9.0                     5.0     DAYS TO COMPLETE PROCESSING OF ONE LOAN
 Loan processing capacity                                            68.5                   123.3      Number of loans that can be processed each day
 Annual loan processing capacity                                   25,000                  45,000      Number of loans that can be processed per year
 NEW REVENUE GAINS ($)                                   NEW WORK DAYS              NEW REVENUE        ELIMINATING CYCLE TIME BOTTLENECKS INCREASES CAPACITY, OFFERING POTENTIAL TO PROCESS MORE LOANS
 Increased # of loans closed                                           162     $20,555,556             Revenue generated at closing - assume 1 point (1%) for each average. $185K loan
 Increased # of earning days                                           162     $49,636,409             Interest on additional loans in place each extra day (using average. $185K loan at 6% IO, compounded)
 TOTAL NEW REVENUE                                                            $70,191,964              POTENTIAL NEW REVENUE BY LEVERAGING INCREASED CAPACITY
 INTANGIBLE GAINS
 Brand Reputation                                      Reputation among wholesale loan broker market as fast-processing lender - reducing their sales cycles
 Brand Reputation                                      Reputation for fewer errors and reworks - reducing brokers operating costs and headaches
 Fewer process failures                                Fewer deals lost from expired rate locks, perceptions of incompetence and lack of customer service

   GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                              24
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


What assumptions underlie the productivity dividends in new account establishment, emphasizing the
benefits of digital mail processing?




                                                                                                                                                                                                                                                                           DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
SETTING UP NEW COMPLEX ACCOUNTS                                                       ° Expanding daily processing capacity                                                                         DESCRIPTIVE DATA MODEL
                                                                                        from 113.6 account activations to 272.7
All commercial firms find and serve customers.                                                                                                                                                      The detail analytic model (SEE two following
                                                                                        accounts activations.
Digital mail processing addresses the often-                                                                                                                                                        pages) separates efficiency-based cost
sloppy hand-off between “finding” a customer                                          ° We assume that an all-digital workflow                                                                      savings and revenue gains, calculating two
and “serving” one.                                                                      will enable a firm to convert 25 percent of                                                                 different payback scenarios.
                                                                                        its greater processing capacity (a total of
The figure below depicts a net gain of six                                              128 days of productivity) into $30,989,583                                                                  The activity-based data of the models supports
days of a firm with annual sales of $1B.                                                of incremental sales.                                                                                       the claim that most enterprises can realize
                                                                                                                                                                                                    significant increases new revenue and lower
The six-day cycle-time gain derives from the                                          ° In accounting terms, this figure represents
                                                                                        faster revenue recognition—the result                                                                       costs from the efficiency gains of digital mail
operational efficiencies of two workflows:
                                                                                        of fewer days needed to activate a                                                                          processing.
 • Mail transport workflow: faster “inputs” to
   all core business processes                                                          revenue-generating service or deliverable.                                                                  Unlike many efficiency benchmarks that examine
 • Service fulfillment workflow: faster                                           • “Getting it right the first time” enables a                                                                     the contribution of workflow automation to a
   “resolution” of new account set-up workloads                                     firm to recoup of $6,177,916 or 10 percent                                                                      specific operation (such as SCM, CRM, etc.)—
                                                                                    of all revenue from:                                                                                            where only a small number of users create and
In a larger or smaller business, savings                                                                                                                                                            exchange certain types of information—the
                                                                                      ° Resolution of new account activation
and revenues would increase or decrease                                                 workflows with fewer errors, reworks,                                                                       productivity dividend as described in this
proportionally.                                                                         “make goods”, and compensatory                                                                              paper digital spreads to every aspect of the
                                                                                        discounts or fee waivers.                                                                                   enterprise: sales, customer service, HR, legal,
ANNUAL COST SAVINGS
                                                                                                                                                                                                    administration, factory floor, etc.
Total cost savings in this model of $6,807,301
                                                                                                     TWO WORKFLOWS PRODUCE PRODUCTIVITY DIVIDENDS FOR NEW ACCOUNT SET-UP
represent less labor and lower material costs
needed to set-up 25,000 new accounts:                                                                   MANUAL MAIL PROCESSING                                            MANUAL SERVICE FULFILLMENT: PROCESSING NEW ACCOUNT APPLICATIONS

$5,939,688 or 79.8 percent reduction labor                                                                                          2.0 Days                                 4.5 Days                                                                   10.0 Days
and $867,614 or 67.1 percent reduction in                                                               DIGITAL MAIL
                                                                                                        PROCESSING                             DIGITAL SERVICE FULFILLMENT: NEW ACCOUNT PROCESSING
materials.                                                                                                0.5 Days                                                                               4.5 Days             6 Day Cycle-time Gain

SOURCE OF INCREASED REVENUES                                                                                                   Productivity assumptions and drivers                                                          Productivity dividends
                                                                                                            NEW ACCOUNT PROCESSING                                                                                           $5,939,688     Annual labor savings
The payback model estimates potential revenues                                                                                                                                              PHYSICAL /   DIGITAL
                                                                                                                                                                                                                               $867,614     Annual material savings
from realizing 128 extra revenue-producing days
                                                                                                            Annual revenues                                                                 $1,000,000,000
                                                                                                            Daily account set-up processing capacity                                          113.6   272.7               $6,807,301        Total annual savings
from two sources:                                                                                           Annual account set-up processing capacity                                      25,000 60,000                                    Extra revenue-producing
                                                                                                                                                                                                                             128 days
  • Greater daily capacity to convert new                                                                   Percentage of new capacity used in                                                                                              days recouped
                                                                                                            revenue-generating projects                                                                  25%
    accounts into paying customers by reducing                                                                                                                                                                             $123,958,333     Increased sales days

    cycle time and labor content needed to                                                                                                                                                                                  $24,791,667     Increased earning days
                                                                                                                                                                                                                         $148,750,000       Potential new revenue
    activate a new billing cycle:                                                                     Productivity_Dividend_Digital_Mail_Account.1.2 © 2009 GISTICS All rights reserved.




   GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                                                                     25
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


How can digital mail-processing reduce cycle time for new account establishments?




                                                                                                                                                                                                                                             DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
Use-case payback scenario: New account specialist receives account application and first order - including service order form, credit application,
customer info forms and copies of relevant permits and licenses - completes account setup and submits order for fulfillment.
 LABOR TASKS                                                     LABOR / MINUTES             NOTES
 SUBORDINATE ACTIVITIES                                         PHYSICAL        DIGITAL      DESCRIPTION OF ACTIVITIES: ITALICS INDICATES SYSTEM-ASSISTED ACTIVITIES OF A DIGITAL MAILROOM
                                                                                             Mailroom staff receive intake, unbundle, bulk sort (junk mail, periodicals, correspondence, priority, etc.)
 Central mail center - receives, processes and sorts mail               15             22
                                                                                             Receive, open, sort, categorize, execute digitization process, verify addressee & key reference IDs
                                                                                             Mailroom staff certifies receipt, pre-routes bundles by location, transports, ships or re-mails to office (often long distance)
 Certify, route and deliver to office location                          10              0
                                                                                             No action required, documents have been digitized and ingested and metadata, including addressee, that defines routing
                                                                                             Office administrator receives, sorts, and fills employee in-boxes, specialist retrieves mail periodically at the risk of interruptions and
 Inter-office sorting, distribute to inbox, and
                                                                        15              0    distractions
 collecting by employee
                                                                                             New account specialist is notified via email or other digital channel (text or in-system message etc.) that package awaits his or her review
                                                                                             Specialist makes four copies for: supervisor, credit line manager, records management, a working copy and files each
 Receive package, make copies, and create new account file              45              0
                                                                                             Application is accessible by all relevant parties with varying levels of access rights to all or part of the application package
 Review application package, verify sources, assess                                          Specialist reviews and verifies application, determines issues to resolve accepts ownership of application processing
                                                                        60             15
 issue and determine actions                                                                 Configurable views into documents accelerate review efficiency, and offer potential for automation, quality control and governance
                                                                                             Specialist starts new docket, creates various file folders, fills out process tracking forms
 Open new loan docket and set up organizational tools                   18              5
                                                                                             Agent opens new application processing project or workspace in system
 Fill out processing forms, and distribute packages to                                       Specialist defines routing and workflow, prepares request forms and sends packages to relevant workflow actors
                                                                        45              5
 multiple parties                                                                            Workflow automation configuration defines actors and distributes e-notifications prompting recipients to action
                                                                                             Specialist executes review and approval workflow comprised of three participants: specialist, new accounts supervisor, credit line man-
 Execute review cycle and send services agreement to                                         ager, and records administrator, then sends services agreement to new customer
                                                                       120             25
 new customer                                                                                System-facilitated review and approval workflows with collaboration tools and status-based access controls, and automated generation of
                                                                                             outbound electronic or paper mail
                                                                                             Specialist reviews agreement, secures approval from the new accounts supervisor recovers original order form from file and sends over
 Receive completed services agreement, review approve
                                                                        60             10    order for fulfillment
 and place order
                                                                                             System-facilitated final approval automatically invokes order processing
 SUBTOTAL (minutes)                                                  388              82

 LABOR COSTS (dollars)                                           PHYSICAL         DIGITAL    DIFFERENCE BASED ON PORTION OF WORK COMPLETED BY DIFFERENT STAFF
 Mailroom Staff (physical)                                          $8.33          $0.00     $20 per hour fully-burdened rate
 Mailroom Staff (digital)                                           $0.00         $11.00     $30 per hour fully-burdened rate
 Office Administrative Staff                                        $6.25          $0.00     $25 per hour fully-burdened rate
 New Accounts Specialist                                         $202.95          $33.71     $45 per hour fully-burdened rate
 New Accounts Supervisor                                           $40.80          $7.93     $80 per hour fully-burdened rate
 Credit Line Manager                                               $32.40          $6.30     $60 per hour fully-burdened rate
 Records Management Administrator                                   $7.20          $1.40     $30 per hour fully-burdened rate
 TOTAL LABOR COSTS                                             $298.00         $60.00



   GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                                       26
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


How can digital mail-processing of new account establishments save $6,807,301 in costs and add
$148,750,000 in potential new revenues?




                                                                                                                                                                                                                    DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
 MATERIAL COSTS (dollars)                                         PHYSICAL                         DIGITAL     NOTES
 Mail transport, shipping, postage                                  $15.00                          $0.00      Blended cost of local or re-route containers, couriers & postage
 Photocopies                                                         $6.75                          $0.00      45 copies @ $.15 fully-burdened cost each
 File storage overhead & maintenance                                $30.00                          $0.00      $12K/year to maintain 4-drawer file cabinet, assume 400 account files per cabinet
 Digital infrastructure overhead                                                                   $17.05      Assume 75,000/year total, 1% assigned to this specific use case
 TOTAL MATERIAL COSTS                                             $51.75                          $17.05

 ANNUAL VOLUMES AND COSTS
 New account applications per year                                                                 25,000

 ANNUAL COSTS ($)                                                PHYSICAL                          DIGITAL     NOTES
 Annual labor costs                                            $7,448,333                     $1,508,646       Fully-burdened labor costs
 Annual material costs                                         $1,293,750                       $426,136       Total material costs associated with process, digital side is burdened cost of infrastructure
 Annual rework costs                                           $2,360,363                       $174,130       Costs from errors and missed deadlines. 15% reworks physical, 5% reworks digital
 TOTAL ANNUAL COSTS                                      $11,102,446                      $2,108,913
 PRODUCTIVITY DIVIDENDS: COST SAVINGS, INCREASED PRODUCTIVITY, INCREMENTAL REVENUE
 ANNUAL SAVINGS ($)                                               SAVINGS                        PERCENT       NOTES
 Total labor savings                                           $5,939,688                         79.75%       Percent reduction in costs, physical vs. digital
 Total material cost savings                                     $867,614                         67.06%       Percent reduction in costs, physical vs. digital
 TOTAL ANNUAL SAVINGS                                      $6,807,301

 CYCLE TIME (days)                                              PHYSICAL                          DIGITAL      NOTES
 Mail transport workflow                                               2.0                             0.5     Linear workflow to distribute physical packages, per account processed
 Service fulfillment workflow                                         10.0                             4.5     Non-linear workflow - variable routing and alterations, per account processed
 TOTAL DAYS PER ACCOUNT                                               12.0                             5.0     DAYS TO COMPLETE ONE NEW ACCOUNT SETUP
 Account setup capacity                                              113.6                          272.7      Number of new accounts that can be processed each day
 Annual account setup capacity                                      25,000                         60,000      Number of new accounts that can be processed per year
                                                                                                               ELIMINATING CYCLE TIME BOTTLENECKS INCREASES CAPACITY, OFFERING POTENTIAL TO
 NEW REVENUE GAINS ($)                                   NEW WORK DAYS                      NEW REVENUE
                                                                                                               PROCESS MORE LOANS
 Increased # of sales or earning days                                  128            $123,958,333             Additional revenue from increased capacity - assumes 25% utilization of new capacity
 Increased # of earning days                                           128             $24,791,667             Reduction in lost sales from clumsy account setup order-processing, recoup 10% of sales
 TOTAL NEW REVENUE                                                                   $148,750,000              POTENTIAL NEW REVENUE BY LEVERAGING INCREASED CAPACITY
 INTANGIBLE GAINS
 Brand Reputation                                       Reputation among customers for fast-processing new accounts - competent service
 Brand Reputation                                       Reputation for fewer errors and reworks - reducing customer’s operating costs and/or headaches



   GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                              27
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


What assumptions underlie the productivity dividends of the faster, more accurate processing of account payables,
benefits deriving from digital mail processing?




                                                                                                                                                                                                                                                                                 DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
ACCOUNTS PAYABLES                                                                AP PROCESS ASSUMPTIONS                                                                                                 of paper-based workflows enables the firm to
                                                                                                                                                                                                       realize only half or 7.5 percent of all payables.
All organizations buy goods and services from                                    Our payback model assumes a firm with $1B
                                                                                                                                                                                                       An all-digital AP workflow increases both
a network of suppliers and service providers.                                    in annual revenues, $300 million in resulting
                                                                                                                                                                                                       productivity and transparency: we assume
This entails receiving and processing invoices                                   annual payables, and 200,000 invoice
                                                                                                                                                                                                       that the firm can realize the remaining
and other forms of demand for payment.                                           workflows per year from a base of 3,000
                                                                                                                                                                                                       early payment discounts and, with greater
                                                                                 vendors, using 14 full-time clerks and one
Industry benchmarks indicated that 45 percent                                                                                                                                                          confidence and transparency, negotiate new
                                                                                 supervisor.
of all invoices correspond to pre-established                                                                                                                                                          discount terms for another 15 per of total
purchase orders in the accounting system of                                      Using industry benchmarks, we assume that                                                                             payments.
the buying firm. The remaining 55 percent of                                     an AP clerk can process 1,200 invoices per
payment demands do not have pre-established                                      month using paper-based invoices and a modern                                                                         PRODUCTIVITY DIVENDEND
purchase orders (also known as “non-PO                                           accounting or ERP application. In an all-digital                                                                      Annual labor savings represent doing more
invoices”), entailing more work and a greater                                    workflow, the processing capacity expands to                                                                          with fewer people Material savings derive from:
likelihood of errors, duplicate payments, and                                    3,000 invoices per month.                                                                                             1) early payment discounts, 2) reduction of
fraud.                                                                                                                                                                                                 fraudulent payment, 3) elimination of interest
                                                                                 We also assume that 15 percent of the current-
The account payables (AP) function of the                                        state account payables offer a 2.5 percent early                                                                      payment and recovery fees associated with
firm:                                                                            payment discount—which due to the inefficiency                                                                        duplicate payments.
  • Receives incoming invoices with                                                        PRODUCTIVITY GROWS BY 80 PERCENT AND ANNUAL COSTS FALL BY $10 MILLION
    approximately 15 percent in digital form—PDF
    or XML datastream—and the remaining 85                                                   MANUAL MAIL PROCESSING                                                                               MANUAL SERVICE FULFILLMENT: PROCESSING NEW INVOICES

    percent in paper form.                                                                                                 3.0 Days                                  4.5 Days                                                                              4.0 Days
  • Confirms the validity of the invoice or                                                  DIGITAL MAIL
                                                                                             PROCESSING                                    DIGITAL SERVICE FULFILLMENT: PROCESSING NEW INVOICES
    demand for payment, matching four to 14                                                       1.0 Days                                                                                       2.0 Days           4 Day Cycle-Time Gain
    business facts of the invoice to the terms of
                                                                                                                      Productivity assumptions and drivers                                                                 Productivity dividends
    the purchase order or internal requisition or
    communication.                                                                                      INVOICE PROCESSING                                                        PHYSICAL   /     DIGITAL                 $5,001,467          Annual labor savings
                                                                                                        Invoice processing capacity—daily                                          909.1           1590.9                  $5,614,545          Annual material savings
  • Posts a cleared payment of the invoice to the                                                                                                                                                                         $10,616,012          Total annual savings
                                                                                                        Invoice processing capacity—yearly                                       200,000          350,000
    accounting system.
                                                                                                        Total annual payables                                                       $300,000,000                           126 days           Extra revenue-producing
Digital mail processing addresses the inherent
                                                                                                                                                                                                                                              days recouped
                                                                                                        Number of vendors:                                                                 3,000
inefficiency of processing paper-based                                                                                                                                                                                     $1,125,000          Savings from early payment
                                                                                                                                                                                                                                               of invoices
invoices, speeding the delivery of digitized                                                                                                                                                                              $49,636,409          Duplicate payments -
versions of invoices to AP staffers.                                                                                                                                                                                                           interest costs
                                                                                                                                                                                                                             $375,000          Duplicate payments -
                                                                                                                                                                                                                                               cost recovery
                                                                                            Productivity_Dividend_Digital_Mail_Invoice.1.1 © 2009 GISTICS All rights reserved.
                                                                                                                                                                                                                        $1,153,125             Potential new revenue

   GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                                                                           28
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


How can digital mail-processing slash cycle times in accounts payable processing?




                                                                                                                                                                                                                                                DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
Use-case payback scenario: Accounts payable worker receives invoices and executes validation and payment workflows.

 LABOR TASKS                                                     LABOR / MINUTES             NOTES
 SUBORDINATE ACTIVITIES                                         PHYSICAL        DIGITAL      DESCRIPTION OF ACTIVITIES: ITALICS INDICATES SYSTEM-ASSISTED ACTIVITIES OF A DIGITAL MAILROOM
                                                                                             Mailroom staff receive intake, unbundle, bulk sort (junk mail, periodicals, correspondence, priority etc.)
 Central mail center - receives, processes and sorts mail              1.5            2.0
                                                                                             Receive, open, sort, categorize, execute digitization process, verify addressee and key reference IDs
                                                                                             Mailroom staff certifies receipt, pre-routes bundles by location, transports, ships or re-mails to office (often long distance)
 Certify, route and deliver to office location                         1.0            0.0
                                                                                             No action required, documents have been digitized and ingested and metadata, including addressee, that defines routing
                                                                                             Office administrator receives, sorts, and fills employee in-boxes, AP worker retrieves mail periodically - at the risk of interruptions and
 Inter-office sorting, distribute to inbox, and
                                                                       1.5            0.0    distractions
 collecting by employee
                                                                                             AP worker is notified via email or other digital channel (text or in-system message etc.) that package awaits his or her review
                                                                                             AP worker locates vendor file or creates new one and makes 4 copies for: supervisor, procurement manage, records manager, and
 Receive invoice package                                               4.5            0.0    working copy, and files each
                                                                                             Invoice package is accessible by all relevant parties with varying levels of access rights to all or part of the application package
                                                                                             AP worker checks for PO match in multiple locations defined by operational areas or purchase type, 40% have no PO whatsoever
 Check if matched to PO                                                2.2            1.2    Like invoices, POs are also found in the system - simplifying and accelerating review efficiency, with potential for automation,
                                                                                             quality control and governance
                                                                                             AP worker contacts POs owner for approval, or when no PO issues execute search to identify who ordered and who approved purchase
 Identify proper PO owner / approver                                  12.0            1.4    Agent opens PO in system and auto-messages owner for payment approval The number of non-PO’d purchases will decrease dramatically
                                                                                             from requirement to post to system to gain approvals
                                                                                             AP worker executes review and approval workflow comprised of 3 participants: AP worker, procurement manager, PO/purchase
                                                                                             approver, records manager, primarily through email and attachments transfer
 Secure approval                                                      13.0            3.1
                                                                                             System-facilitated review and approval workflows with collaboration tools and status-based access controls—consistent notifica-
                                                                                             tion processes, doc version control etc.
                                                                                             AP worker completes approval paperwork to update file, then makes 4 copies for: supervisor, procurement manage, records manager, and
 Update approved status                                                3.5            0.0    working copy and files each
                                                                                             None. Approval status is always maintained in the system by definition.
                                                                                             AP worker collected up all required info from file and execute payment online
 Execute payment                                                       6.0            1.3
                                                                                             One button processing - message sent to payment processor or group
 SUBTOTAL (minutes)                                                    45               9

 LABOR COSTS (dollars)                                           PHYSICAL         DIGITAL    DIFFERENCE BASED ON PORTION OF WORK COMPLETED BY DIFFERENT STAFF
 Mailroom Staff (physical)                                          $0.83          $0.00     $20 per hour fully-burdened rate
 Mailroom Staff (digital)                                           $0.00          $1.00     $30 per hour fully-burdened rate
 Office Administrative Staff                                        $0.63          $0.00     $25 per hour fully-burdened rate
 AP Worker                                                         $23.13          $3.63     $45 per hour fully-burdened rate
 AP Supervisor                                                      $2.60          $0.62     $80 per hour fully-burdened rate
 Procurement Manager                                                $3.51          $0.84     $60 per hour fully-burdened rate
 Records Management Administrator                                   $0.52          $0.12     $30 per hour fully-burdened rate
 TOTAL LABOR COSTS                                               $31.00          $6.00
   GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                                          29
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


How can digital mail-processing of account payables save $10,002,376 in processing costs and $1,153,125
in ancillary gains from fewer mistakes and overpayments?




                                                                                                                                                                                                            DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
 MATERIAL COSTS (dollars)                                         PHYSICAL                  DIGITAL    NOTES
 Mail transport, shipping, postage                                   $5.00                   $0.00     Blended cost of local or re-route containers, couriers & postage
 Photocopies                                                         $3.30                   $0.00     22 copies @ $.15 fully-burdened cost each
 File storage overhead and maintenance                              $30.00                   $0.00     $12K/year to maintain 4-drawer file cabinet, assume 400 account files per cabinet
 Digital infrastructure overhead                                     $0.00                  $13.30     Assume 75,000/year total, 1% assigned to this specific use case
 TOTAL MATERIAL COSTS                                             $38.30                  $13.30

 ANNUAL VOLUMES AND COSTS
 New invoices processed per year                                                          200,000

 ANNUAL COSTS ($)                                                PHYSICAL                  DIGITAL     NOTES
 Annual labor costs                                            $6,244,333              $1,242,867      Fully-burdened labor costs
 Annual material costs                                         $7,660,000              $2,045,455      Total material costs associated with process, digital side is burdened cost of infrastructure
 Annual rework costs                                           $3,754,170                $351,176      Costs from errors and missed deadlines. 15% reworks physical, 5% reworks digital
 TOTAL ANNUAL COSTS                                      $17,658,503               $4,253,134
 PRODUCTIVITY DIVIDENDS: COST SAVINGS, INCREASED PRODUCTIVITY, INCREMENTAL REVENUE
 ANNUAL SAVINGS ($)                                               SAVINGS                 PERCENT      NOTES
 Total labor savings                                           $5,001,467                  80.10%      Percent reduction in costs, physical vs. digital
 Total material cost savings                                   $5,000,909                  65.29%      Percent reduction in costs, physical vs. digital
 TOTAL ANNUAL SAVINGS                                    $10,002,376

 CYCLE TIME (days)                                              PHYSICAL                  DIGITAL      NOTES
 Mail transport workflow                                                3.0                     1.8    Linear workflow to distribute physical packages, per account processed
 Service fulfillment workflow                                           4.5                     2.1    Non-linear workflow - variable routing & alterations, per account processed
 TOTAL DAYS PER INVOICE                                                7.5                      3.9    DAYS TO COMPLETE ONE WHOLE INVOICE PAYMENT CYCLE
 Annual working days required                                         220                     114      Number of work days required to process the existing volume of invoices
 Annual invoice processing capacity                               200,000                 384,615      Number of new accounts that can be processed per year
 ADDITIONAL COST SAVINGS                                                                  SAVINGS      NOTES
 Savings for early payment                                                             $1,125,000      Increase in payment discounts from on time payments, assume 2.5% terms, 15% of invoices
 Duplicate payments - Interest cost                                                       $28,125      Borrow $ to cover cash flow, .5% dupe payments, 4.5 mo. average term @ 5% interest only
 Duplicate payments - cost recovery                                                      $375,000      Outsource collections on dupe payments, vendor takes 25%
 TOTAL ANCILLARY GAINS                                                             $1,153,125
 INTANGIBLE GAINS
 Brand Reputation                                       Reputation among vendors for fast-processing invoices
 Brand Reputation                                       Results in closer relationships with vendors - more favorable terms and more accommodation in other aspects of doing business
 Brand Reputation                                       Reputation for fewer errors and reworks - reducing everyone's operating costs and headaches
 Brand Reputation                                       Reputation for fewer errors and reworks—reducing everyone’s operating costs and headaches
   GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                      30
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


What assumptions underlie the productivity dividends of the faster, more accurate service fulfillment
cycles in a public institution, emphasizing the benefits of digital mail processing?




                                                                                                                                                                                                                                                                              DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
SERVICE CYCLES AND REVENUES                                                      permits and the collection of additional sales                                                                          • Daily processing capacity expands from
                                                                                 taxes.                                                                                                                    1363.6 permits per day or 300,000 per year
Public institutions deliver a diverse and
                                                                                                                                                                                                           to 2933.1 permits per day or 642,857 per
complex set of services to the citizens and                                      ANNUAL COST SAVINGS                                                                                                       year.
businesses under their jurisdiction.
                                                                                 Total cost savings in this model of $28,330,455                                                                    Increased productivity in issue permits
Digital mail processing can deliver substantial                                  represent less labor and lower material costs                                                                      represents a potential of $215 million in
increase in productivity throughout a state                                      needed to issue 300,000 seller’s permits:                                                                          ancillary gains, and comprise of the following:
or federal agency, department, bureau, or                                        $24,255,000 or 72 percent reduction labor
administrative office—any group that now                                                                                                                                                              •$4,666,667 in incremental permit fees
                                                                                 and $4,075,455 or 95 percent reduction in                                                                             from faster processing of permit applications
receives in-bound mail, initiates an internal                                    materials.
workflow, and communicates or delivers its                                                                                                                                                             already in the queue—thus a one-time gain.
result to internal or external parties.                                          SOURCE OF INCREASED REVENUES                                                                                        • $210,000,000 in incremental sales tax
                                                                                                                                                                                                       receipts, a result of issuing 35 percent fewer
Seller’s permits enable their holders to buy                                     The payback model estimates potential                                                                                 seller permits to individuals or business that
products at wholesale prices and avoid the                                       revenues from realizing 103 extra revenue-                                                                            do not qualify as a reseller—a recurring
payment of retail sales taxes.                                                   producing days from a greater daily capacity                                                                          annual gain.
                                                                                 to issue seller’s permits:
Consequently, many individuals or businesses
with no intent to resell the goods purchased
will nonetheless seek seller’s permits as a way
of defrauding government of sales taxes.                                                PUBLIC INSTITUTIONS BENEFIT IN FOUR WAYS FROM DIGITAL MAIL PROCESSING
                                                                                           MANUAL MAIL PROCESSING                                                                              MANUAL SERVICE FULFILLMENT: PROCESSING NEW SELLER’S PERMIT APPLICATIONS
The six-day cycle-time gain derives from the
                                                                                                                                                               4.5 7.0 Days
                                                                                                                                                                   Days                                                                                  8.0 Days
operational efficiencies of two workflows:
 • Mail transport workflow: faster “inputs” to
                                                                                           DIGITAL MAIL                                        DIGITAL SERVICE FULFILLMENT:
                                                                                           PROCESSING                                          PROCESSING NEW PERMITS
   all core business processes                                                               3.0 Days                                                                                   5.0 Days                7 Day Cycle-time Gain
 • Service fulfillment workflow: faster                                                                          Productivity assumptions and drivers                                                                   Productivity dividends
   issuance of seller’s permits
                                                                                             NEW ACCOUNT PROCESSING                                                                                                   $24,255,000          Annual labor savings
The figure to the right depicts a net gain                                                   Daily permit applications
                                                                                                                                                                                PHYSICAL   /   DIGITAL                 $4,075,455          Annual material savings
of seven days of a public institution and,                                                   processing capacity                                                                1363.6         2922.1             $28,330,455              Total annual savings
in particular, the office that issues 300,000                                                Annual permit applications
                                                                                             processing capacity                                                              300,000      642,857                     103 days            Extra revenue-producing
seller’s permit to businesses and individuals                                                Average sales tax revenue per year                                              $15,000,000,000
                                                                                                                                                                                                                                           days recouped

per year. Using a permit fee of $10 each, this                                                                                                                                                                         $4,666,667          Increased fee generation
institution will earn $4.7 million in additional                                                                                                                                                                     $210,000,000          Revenues recovered
                                                                                                                                                                                                                       $7,687,500          Faster collections and
fees. Moreover, greater workflow accuracy                                                                                                                                                                                                  early payment discounts
leads to the issuance of fewer fraudulent                                                                                                                                                                         $214,666,667             Ancillary gains
                                                                                             Productivity_Dividend_Digital_Mail_AP.1.3 © 2009 GISTICS All rights reserved.



   GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                                                                        31
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


How can digital mail-processing reduce cycle time in the fulfillment of citizens’ requests for information
or service by public institutions?




                                                                                                                                                                                                                                                     DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
Use-case payback scenario: State tax office receives seller’s permit application, directs to local field office, where it’s processed, permit issued,
and recorded by central state tax office.
 LABOR TASKS                                                     LABOR / MINUTES             NOTES
 SUBORDINATE ACTIVITIES                                         PHYSICAL        DIGITAL      DESCRIPTION OF ACTIVITIES: ITALICS INDICATES SYSTEM-ASSISTED ACTIVITIES OF A DIGITAL MAILROOM
 State government mail center - receives, processes and                                      State mail center staff receive intake, unbundle, bulk sort (by agency, general correspondence, priority etc.)
                                                                       3.0            4.4
 sorts mail                                                                                  Receive, open, sort, categorize, execute digitization process, verify addressee & key reference IDs
                                                                                             State mail center operations certifies receipt, pre-routes bundles by location, transports, ships or re-mails to office (often long distance)
 Route and deliver to central tax agency offices                       2.0            0.0
                                                                                             No action required, documents have been digitized and ingested with metadata, including addressee, that defines routing
                                                                                             Central office receiving staff inspects application, flags for delivery to regional office in daily bulk transport
 Inspect, route and deliver to regional office                         3.0            0.6
                                                                                             Automated routing suggested based on applicant’s location, quick staff confirmation and instantaneous digital routing to regional office
                                                                                             Regional office administrator receives, sorts, and fills employee in-boxes, seller’s permit clerk retrieves mail periodically - at the
 Inter-office sorting, distribute to inbox, and collect by
                                                                       3.0            0.0    risk of interruptions and distractions
 employee
                                                                                             No action required, digitized documents are routed directly to seller’s permit clerks
                                                                                             Clerk reviews application package for completeness and accuracy, any gaps denoted in file for hardcopy letter or telephone follow-ups
 Check application for completeness and accuracy                       6.0            2.0    Clerk’s review results are accessible across work teams allowing processing flexibility among staff and avoiding bottlenecks from
                                                                                             individual clerk performance or availability
                                                                                             Clerk verifies business applicant’s standing with other government agencies (corp. or LLP/LLC status, county business name registration
 Check applicant’s legal status for dependencies and holds             3.0            1.0    etc.) - sometimes via fax & phone
                                                                                             Verification, if not completely electronic, is facilitated by joint access to digital application by other agencies and offices
                                                                                             Clerk submits application to immediate supervisor for approval via inter-office mail, requiring additional copies
 Acquire supervisor’s approval                                         6.0            1.0
                                                                                             Clerk flags application for approval and system automatically routes it to supervisor (or any available approver) for quick review and approval
                                                                                             Clerk issues permit, completes request for physical certificate printing and delivery to applicant, records at local regional office and reports
 Issue perm invoke delivery to applicant and report
                                                                       8.0            1.6    issuance to central office - multiple redundant data entry events (paper-based and online)
 issuance to central office
                                                                                             System automatically routes request to certificate production upon clerk’s issuance of permit
                                                                                             Central office recording staff receives issuance notification, copies and/or attachments, files and records
 Central office records permit issuance                                7.0            0.0    No action required; documents in system are inherently preserve however may become exposed to the central office only after when
                                                                                             permits issued based on workflow-triggered business rules
 SUBTOTAL (minutes)                                                    41             11

 LABOR COSTS (dollars)                                           PHYSICAL         DIGITAL    DIFFERENCE BASED ON PORTION OF WORK COMPLETED BY DIFFERENT STAFF
 Mail Center Staff (physical)                                       $5.50          $0.00     $22 per hour fully-burdened rate including government-level benefits
 Mail Center Staff (digital)                                        $0.00         $12.10     $33 per hour fully-burdened rate including government-level benefits
 Central Office Receiving Staff                                     $6.88          $1.38     $27.50 per hour fully-burdened rate including government-level benefits
 Regional Office Administrative Staff                               $6.88          $0.00     $27.50 per hour fully-burdened rate including government-level benefits
 Seller’s Permit Clerk                                             $73.79         $17.97     $38.50 per hour fully-burdened rate including government-level benefits
 Central Office Records Management                                 $19.25          $0.00     $33 per hour fully-burdened rate including government-level benefits
 TOTAL LABOR COSTS                                             $112.00         $31.00




   GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                                               32
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


How can digital mail-processing in public institutions save $28,330,455 in processing costs, $4,666,667 in
incremental revenues, and $210,000,000 in overall economic impact?




                                                                                                                                                                                                            DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
 MATERIAL COSTS (dollars)                                    PHYSICAL                       DIGITAL    NOTES
 Mail transport, shipping, postage                                   $4.00                   $0.00     Blended cost of bulk transport to regional offices
 Photocopies and forms                                               $3.60                   $0.00     15 copies @ $.15 fully-burdened cost each + 6 multi-part duplicate forms at $.05 each
 File storage overhead and maintenance                               $6.67                   $0.00     $12K/yr. to maintain 4-drawer file cabinet, assume 1800 permits per cabinet
 Digital infrastructure overhead                                     $0.00                   $0.68     Assume 75,000/yr total, .025% assigned to this specific use case
 TOTAL MATERIAL COSTS                                             $14.27                    $0.68

 ANNUAL VOLUMES AND COSTS
 Seller’s permits issued per year                                                         300,000

 ANNUAL COSTS ($)                                            PHYSICAL                      DIGITAL     NOTES
 Annual labor costs                                          $33,687,500               $9,432,500      Fully-burdened labor costs
 Annual material costs                                         $4,280,000                $204,545      Total material costs associated with process, digital side is burdened cost of infrastructure
 Annual rework costs                                         $10,251,225                 $520,400      Costs from errors and missed deadlines. 15% reworks physical, 3% reworks digital
 TOTAL ANNUAL COSTS                                      $48,218,725             $10,157,446
 PRODUCTIVITY DIVIDENDS: COST SAVINGS, INCREASED PRODUCTIVITY, INCREMENTAL REVENUE
 ANNUAL SAVINGS ($)                                          SAVINGS                      PERCENT      NOTES
 Total labor savings                                         $24,255,000                   72.00%      Percent reduction in costs, physical vs. digital
 Total material cost savings                                   $4,075,455                  95.22%      Percent reduction in costs, physical vs. digital
 TOTAL ANNUAL SAVINGS                                    $28,330,455

 CYCLE TIME (days)                                              PHYSICAL                  DIGITAL      NOTES
 Mail transport workflow                                                7.0                     3.0    Linear workflow to distribute physical packages, per permit processed
 Service fulfillment workflow                                           8.0                     5.0    Non-linear workflow - variable routing & alterations, per permit processed
 TOTAL DAYS PER PERMIT                                                15.0                      8.0    DAYS TO COMPLETE ONE DAYS TO COMPLETE ONE SELLER’S PERMIT ISSUANCE CYCLE
 Permit processing capacity                                         1363.6                  2922.1     Number of permits that can be processed each day
 Annual permit processing capacity                                300,000                 642,857      Number of permits that can be processed per year
 Annual working days required                                         220                     117      Number of work days required to process the existing volume of permits
 ADDITIONAL GAINS                                                                         SAVINGS      NOTES
 Additional permitting fees                                                      $4,666,667            Greater capacity to process permits generates more fees, assume 1M permits/yr., $10/permit *
 Tax revenue recovery                                                          $210,000,000 20% of inaccurate permitting avoided, assume 4% errors $15B sales tax revenue/yr.
 Accounts payable efficiencies                                                   $7,687,500 SEE EARLY PAYMENT, INTEREST SAVINGS, AND COLLECTIONS COST GAINS
 TOTAL ANCILLARY GAINS                                                        $214,666,667
 INTANGIBLE GAINS
 Economic Stimulus                                      Macroeconomic: any reduction of government delays to business, especially small business, carries a profound economic benefit


   GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                      33
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems




                                                                                                                                             Section 5
                                                                                                                                             Enterprise Content Processing
                                                                                                                                             Infrastructure

                                                                                                                                            PAGE ESSENTIAL QUESTIONS ADDRESSED
                                                                                                                                             35 What IT elements enable digital mail processing and the production
                                                                                                                                                of customer engagement packages?
                                                                                                                                             36 How can digital mail processing support transformational
                                                                                                                                                applications?




   GISTICS | EXECUT IVE W HITE PA P ER | Digit al Mailroom s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                34
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


What IT elements enable digital mail processing and the production of customer engagement packages?




                                                                                                                                                                                                                                   DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
ENTERPRISE APPLICATIONS AND SERVICES                                             The figure also depicts that digital mail                                    Internal-only packages dynamically link to
                                                                                 processing can deliver four different types of                               enterprise applications and enterprise content
All modern firms use enterprise applications
                                                                                 customer engagement packages to seven                                        services.
to operate; most large firms also deployed
                                                                                 common types of users.
enterprise content management (ECM) or                                                                                                                        Suitably configured ECM systems and
several of its components. The figure below                                      Customer engagement packages consist                                         customer portals enable access to vetted
depicts the major components of ECM,                                             of policy-controlled collections of                                          public-versions of customer engagement
emphasizing those components that enable                                         communications and transactional content.                                    packages for customers, subcontractors, or
digital mail processing.                                                                                                                                      trade partner.
 C O N T E N T W O R K E R S : D I G I TA L M A I L
 Account managers                   Teleservice representatives            Credit or loan               Order processing and              Account receivables or       Risk or compliance          Regional or
                                                                           processing agents            provisioning agents               payables staff               managers                    department heads

 C U S T O M E R E N G A G E M E N T PA C K A G E S
 Loan and mortgage packages                                   New account establishment packages                         Trade accounts-payable packages                     Service fulfillment packages
 C O N T E N T A P P L I CAT I O N S
 Marketing portals          Enterprise publishing                     Video publishing                Information portals                     Video publishing         Digital mail processing          Communities and
  •	Collateral	store         •	Catalogs                                •	Corporate	videos             •		 gent	broker	portal
                                                                                                        A                                      •	Corporate	videos       •	Orders                        social media
  •	Content	expert	profiles  •	Documentation                           •	Product	demos                •	Branch	network	portal                  •	Product	demos          •	Service	requests               •	Catalogs
  •	Presentations            •	Editorial	publishing                    •	Training	and	                •	Independent		financial                 •	Training	and					      •	New	accounts                   •	Documentation
                             •	Marketing	collateral                      support                        advisors portal                          support
  •	Product	demos                                                                                                                                                       •	Marketing	campaigns
                                                                       •	Webcasts                     •	Procurement	portal	
                                                                                                      •	Trader	broker	network                                           •	Claims
                                                                                                        portal                                                          •	Tax	returns
 ENTERPRISE CONTENT MANAGEMENT (ECM)
 Web content                Media asset             Document           Metadata                    Transactional content                Business process       Records                    Email archive    Collaboration
 management                 management              management         management                  processing                           management             management                 management       management
  •	HTML,	XML                •	Animations            •	Compound			      •	Business							            •	Business	forms                    •	Business	rules       •	Business	records         •	Addresses      •Discussions
  •	Production					          •	Audios	/						         documents           objects                    •	Correspondence                    •	Process		            •	Communications           •	Attachments    •	Instant					
    support                    podcasts              •		 resentations
                                                       P                •	Data-entity														 •	Digital	Credit	files                 monitoring and       •	Scanned	                 •	Contacts	and	    messaging
  •	Rich	media               •	Images	/	             •	Spreadsheets       relationships                                                    reporting              images of                 vCards          •	Postings	and	
                                                                                                     •	Faxes
  •	Stylesheets                photos                •	Static	items			  •	Document		                                                     •	Workflow				           paper,	film,	or								 •	Emails            ratings
                                                                          properties                 •	Handwritten	notes                   routing                transparencies
                              •	Video                 (PDF,	TIFF)                                                                                                                                           •	Surveys
                                                                                                     •	Invoices

 E N T E R P R I S E A P P L I CAT I O N S
 Transaction processing applications:                         Analytic Applications: Systems and networks Transformational Applications: Systems                             ICT Infrastructure: Information,	communi-
 Systems that automate the basic repetitive                   that	promote	analysis,	interpretation,	and	 and networks that change the prevailing                            cations,	and	telecommunications	technolo-
 transactions of the enterprise                               sharing of information or knowledge         business model of the enterprise                                   gies and managerial expertise to enable
                                                                                                                                                                             effective delivery and use of ICT services
   GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                             35
ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems


How can digital mail processing support transformational applications?




                                                                                                                                                                                                                                                                                                  DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved
STRATEGY MAP HIGHLIGHTS INNOVATION PROCESSES                                                                      BENEFITS OF DIGITAL MAIL PROCESSING FUND FULL DEPLOYMENT OF ECM AND
                                                                                                                  SUPPORT GAME-CHANGING INNOVATIONS
Bringing game-changing innovations to market often entails
considerable risk and opportunities for considerable reward.
                                                                                                                                                                                                 Increased Shareholder Value
Now more than ever, agile ICT infrastructure and applications
must support the rapid, problem-free launch of new product




                                                                                                                   Financial
configurations and novel business concepts.                                                                                                            Productivity                                                                                                        Brand
                                                                                                                                                                                                                        Growth Strategy
                                                                                                                                                       Strategy                                                                                                            Strategy
ECM and content applications described in this paper play an
evermore critical role in driving innovations to market.                                                                                  IMPROVE COST
                                                                                                                                          STRUCURE
                                                                                                                                                                   INCREASE ASSET
                                                                                                                                                                   UTILIZATION
                                                                                                                                                                                                      BUILD REVENUE FROM
                                                                                                                                                                                                      NEW PRODUCTS AND
                                                                                                                                                                                                                                    BUILD REVENUE FROM
                                                                                                                                                                                                                                    EXISTING PRODUCTS
                                                                                                                                                                                                                                                                      BUILD REPUTATION
                                                                                                                                                                                                                                                                      • Institutional
                                                                                                                                          • Spendings              • Greater output                   CUSTOMERS                     AND CUSTOMERS                       citizenship
The figure on the right depicts a strategy map that calls attention                                                                       • Payroll
                                                                                                                                          • Waste or
                                                                                                                                                                   • Inventory turns
                                                                                                                                                                   • Workforce
                                                                                                                                                                                                      • Acquisitions
                                                                                                                                                                                                      • Product launches
                                                                                                                                                                                                                                    • Order volumes
                                                                                                                                                                                                                                    • Share of wallet
                                                                                                                                                                                                                                                                      • Thought leadership
                                                                                                                                                                                                                                                                      • Social programs
to a relatively new class of applications—transformational                                                                                  reworks                  planning                         • Market making               • Cross-selling                   • Corporate culture

applications—that change the game.                                                                                                                                                                   Customer Value Proposition




                                                                                                                    Customer
It seems that each quarter or month brings new wave of                                                                                                 Price            Quality         Selection       Availability Functionality      Personalized    Partnership         Brand
innovations, making it impossible to predict which new application                                                                                                                                                                      Interaction

or service will disrupt the status quo of markets and customer                                                                                                              PRODUCT/SERVICE ATTRIBUTES                                         RELATIONSHIP                  VOICE
requirements. However, it remains certain that the pace of                                                                                      Operations Management                  Customer Management                  Innovation and                    Regulatory and
innovation will continue to accelerate, bringing change, disruption,



                                                                                                                    Internal
                                                                                                                                                Process                                Process                              Solutioneering Process            Social Process
and opportunity for the agile.                                                                                                                   • Supply                               • Selection                          • Opportunity discovery          • Environment
                                                                                                                                                 • Production                           • Acquisition                        • Design/development             • Safety and health
Digital mail processing clearly adds value to internal processes                                                                                 • Logistics
                                                                                                                                                 • Risk management
                                                                                                                                                                                        • Retention
                                                                                                                                                                                        • Growth
                                                                                                                                                                                                                             • Launch/Market-making
                                                                                                                                                                                                                             • Customization
                                                                                                                                                                                                                                                              • Employment
                                                                                                                                                                                                                                                              • Community
of operations management, customer management, and
regulatory compliance, speeding the flow of mail and concurrent                                                                                 ORGANIZATION CAPITAL: Leadership, Teamwork, Culture
multi-party collaboration around customer engagement objects.
                                                                                                                    People and Culture

                                                                                                                                                HUMAN CAPITAL: Skills, Knowledge, Values                                            StrategyMap.D13 ©2009 GISTICS.All rights reserved.

Each enterprise of particular industries will have its own
opportunities to drive game-changing innovations—transformational                                                                               INFORMATION CAPITAL: Systems, Databases, Networks

applications—to market.
                                                                                                                                                        Transaction                                                                                        Technology
                                                                                                                                                                                          Analytic                         Transformational
                                                                                                                                                        Processing                                                                                         Infrastructure
                                                                                                                                                                                          Applications                     Applications
                                                                                                                                                        Applications
And success will in part result from the firm’s information capital                                                                               Systems that                         Systems and networks               Systems and networks          The shared technology
and its internal capability to develop and launch new applications.                                                                               automate the basic                   that promote analysis,             that change the               and managerial
                                                                                                                                                  repetitive transactions              interpretation, and                prevailing business           expertise required to
                                                                                                                                                  of the enterprise.                   sharing of information             model of the enterprise.      enable effective delivery
Digital mail processing capability not only mends a missing                                                                                                                            or knowledge.
                                                                                                                                         Source: Strategy Maps–Converting Intangible Assets into Tangible Outcomes by
                                                                                                                                                                                                                                                        and use of Information
                                                                                                                                                                                                                                                        Capital applications.
link in the customer value chain; deployment also supports the                                                                           Robert S. Kaplan and David P. Norton, Harvard Business School Press, 2004


deployment of a full ECM capability—that in turn will support the                                                 The strategy map above depicts the central role that transformational applications can play in driving
success of mission-critical, game-changing transformational                                                       growth.
applications.

   GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n                                                                                                                                            36
Thought-Leadership White Papers mapped to DAM Maturities
                                             DAM LEVEL 1                                                                                                                                                                                                                                                                                                                                                       DAM LEVEL 2                                                                                                                                                                                                                                                                                                                                                                  DAM LEVEL 3                                                                                                                                                                                                                                                                                                                                                                  DAM LEVEL 4                                                                                                                                                                                                                                                                                                                                                                 DAM LEVEL 5




                                                 Marcom
                                                       Image
                                                      Portals



                                                       LESSER
                                                                                                                                                                                                                                                                                                                                                                                                                    Enterprise
                                                                                                                                                                                                                                                                                                                                                                                                                    Marketing
                                                                                                                                                                                                                                                                                                                                                                                                                     Content
                                                                                                                                                                                                                                                                                                                                                                                                                     Portals



                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     SCORE AND DEPTH OF DAM SERVICES
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Global
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Media
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Service
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Portals
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Integrated
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            DAM-enabled
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Production
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Platforms
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Integrated
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Media or
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Marcom
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Factories



                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             GREATER




                                                                                                                                   Executive White Paper                                                                                                                                                                                                                                                                                                                                                   Executive White Paper                                                                                                                                                                                                                                                                                                                                                Executive White Paper                                                                                                                                                                                                                                                                                                                                                           Executive White Paper                                                                                                                                                                                                                                                                                                                                                  Executive White Paper


                                                                            Making the                                                                                                                                                                                                                                                                                                                                                    Business Case for                                                                                                                                                                                                                                                                                                                                Business Case for                                                                                                                                                                                                                                                                                                                                                           Digital Supply-Chain                                                                                                                                                                                                                                                                                                                                   Pan-Regional Marketing
                                                                      Business Case for                                                                                                                                                                                                                                                                                                                                                   Marketing Content                                                                                                                                                                                                                                                                                                                             On-demand DAM and                                                                                                                                                                                                                                                                                                                                                                      Strategies for                                                                                                                                                                                                                                                                                                                                  Productivity Dividends
                                                                           Digital Asset                                                                                                                                                                                                                                                                                                                                                  Repositories in the                                                                                                                                                                                                                                                                                                                              Media Services in                                                                                                                                                                                                                                                                                                                                                                      Marketing                                                                                                                                                                                                                                                                                                                                           from Outsourced
                                                                          Management                                                                                                                                                                                                                                                                                                                                                              Enterprise                                                                                                                                                                                                                                                                                                                               Global Marketing                                                                                                                                                                                                                                                                                                                                                           and Packaging Assets                                                                                                                                                                                                                                                                                                                                       Collateral Operations
                                                                                                                                                                                                                                                                                                                                                                                                                                       Strategies and business metrics for managing the product
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Operations                                                                                                                                                                                                                                                                                                                                                                        How global brand-marketing communication groups maximize
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       their productivity with workflow automation, digital asset
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            How to redirect savings from outsourced pan-regional collateral operations to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          additional media placements and campaigns within existing operational budgets
                                                                                                                                                                                                                                                                                                                                                                                                                                         launch, supporting field sales, and enabling self-service                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                management, and real-time collaboration tools
                                             Strategies and business metrics for estimating the economic benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Impact of outsourcing the online management of marketing
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        access to multichannel marketing materials                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Business case for the full-service pan-regional collateral factory
                                                            of digital asset management and related technologies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            content and reusable media components on the productivity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Simple pay-for-page localization
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Business case for reduced time-to-market of multichannel, multi-format                                                                                                                                                                                                                                                                                                   • Managed operations and systematized best practices
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     of marketing, sales, and corporate communications                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     • Instant automated collateral-artwork production and retailer modifications
                                                                                                                                                                                                                                                                                                                                                                                                                                                         How a centralized repository and related digital media services reduce                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      marketing artwork, and packaging content in automotive, consumer packaged goods,
                                                                                                                      How to use analysis of activity-task automation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Online workflow and approval platform
                                                                                                                                                                                                                                                                                                                                                                                                                                                          the cost and speed time to market of brand identify elements, selling                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    food and beverages, and life sciences                                                                                                                                                                                                                                                                   • Online progress monitoring, reporting, and process quality controls.
                                                                                                                                      to calculate time to breakeven                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Business metrics, automation benchmarks, and total cost of ownership models for                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Real-time workflow data interfaces to enterprise IT systems.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     images, and marketing collateral
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               automating the global delivery of marketing materials, presentations, videos and
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             TECHNICAL CAPABILITIES INCLUDE:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        sales training to creative teams, field staff and partners                                                                                                                                                                                                                                                                                                        •   Visibility of all projects and campaigns across the           • Branded web sites and extranets
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Industry emphasis:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      •
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             organization
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Centralized assets that increase utilization rates
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           • Real-time collaboration, annotation, and
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             mark-ups
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Global enterprises                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   •   Streamlined routing and approval of source                    • Full color management, matching, and                                                                                                                                                                                                                                                                     OPERATIONAL
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 OPERATIONAL                                OPERATIONAL
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  SPENDINGS                                  SPENDINGS
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             artwork files and finalized content                               proofing                                                                                                                                                                                                                                                                                                   SPENDINGS
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 • Life sciences and pharmaceuticals


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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      STRATEGIC                                  STRATEGIC                                  STRATEGIC
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         •   Standardization platform for digital assets, and global       • Review of RIP files for printing verification,                                                                                                                                                                                                                                             SPENDINGS                                  SPENDINGS                                  SPENDINGS
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Media, entertainment, and publishing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           brand identities                                                tracking, and reporting
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         •   Detailed project tracking and reporting                       • Management of video, audio, podcasts,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Retail and consumer products                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         •   Web-based collateral management and fulfillment                  3D content and graphic files
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           • Regulatory compliance and audit trails

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Current Spend                  Greater Operational Efficiencies                        Future Spend




                                                  34 pages                                                                                                                                                                                                                                                                                                                                                                   24 pages                                                                                                                                                                                                                                                                                                                                                                       32 pages                                                                                                                                                                                                                                                                                                                                                                     32 pages                                                                                                                                                                                                                                                                                                                                                                    80 pages



                                                                                                                                  Executive White Paper                                                                                                                                                                                                                                                                                                                                                          Executive White Paper                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Executive White Paper                                                                                                                                                                                                                                                                                                                                                Executive White Paper


                                                                      Business Case for                                                                                                                                                                                                                                                                                                             Business Case for
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Executive White Paper
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Digital Supply-Chain                                                                                                                                                                                                                                                                                                                                                    Strategies for
                                                                      Dynamic Imaging                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Impact of                                                                                                                                                                                                                                                                                                                                                                                            Strategies for                                                                                                                                                                                                                                                                                                                                                    Maximizing
                                                                                                                                                                                                                                                                                                                                                                                             On-Demand Delivery of                                                                                                                                                                                                                                                                                                                                                     Enterprise Collaboration                                                                                                                                                                                                                                                                                                                                                                                      Enterprise Content
                                                                                                                                                             in the
                                                                                                                                                                                                                                                                                                                                                                                          Digital Asset Management                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Pan-Regional
                                                                                                                           Enterprise                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        on Productivity of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Market Coverage and
                                                                                                                                                                                                                                                                                                                                                                                                  in Global Marketing                                                                                                                                                                                                                                                                                                                                                         Intangible Assets
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  How digital asset management (DAM) maximizes productivity of
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    workflow automation and creative collaboration, fortifying the
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Sales from Integrated
                                                                                                                                                                                                                                                                                                                                                                                                           Operations
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   weakest link in the enterprise content lifecycle
                                                                Strategies and tactics for accelerating the time to market
                                                                              for promotional images, online advertising,
                                                                                                                                and visual knowledge assets
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Business case for speeding acquisitions and divestitures, value-chain
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            innovations, enhanced customer value, and strategic sourcing of indirect
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Economic analyses of reduced time-to-market for multichannel, multi-format content, using                                                                                                                                                                                                                                                                                     New-Product
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Launch Platforms
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                production best practices of smart content factories for broadcast,marketing operations,
                                                                                                                                                                                                                                                                                                                                                                                                       Impact of Automating the Management and International Distribution of                                                                                                                                                                                                                                                                                                                          spend with enterprise collaboration platforms                                                                                                                                                                                                                                                                                                                                                                                 military intelligence, and publishing.
                                                                                 How dynamic imaging and related workflow automation technologies
                                                                                                                                                                                                                                                                                                                                                                                                 Approved Marketing Content, Reusable Media Components, and Digital Assets
                                                                                                 address the shortcomings of content management,
                                                                                           enterprise resource planning, supply chain management,                                                                                                                                                                                                                                                                 on Multichannel Product Launches, Field Sales Productivity,                                                                                                                                                                                                                                                                                                       ROI payback model for business metrics, process automation benchmarks, and service-delivery                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Business case for a center of excellence in
                                                                                              customer relationship management, and eCommerce                                                                                                                                                                                                                                                                                                 and Brand-Voice Consistency                                                                                                                                                                                                                                                                                                           requirements for coordinating the work of subject matter experts throughout the enterprise and
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        among trusted partners of supply chains, distribution networks, and customer organizations
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        international marketing communications

                                                                                                                                                                                                                                                                                                                                                                                                         ROI payback models, business metrics, process automation benchmarks, and outsourcing-service
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Outsourcing-service requirements for reducing the cost to localize, produce,
                                                                                                                                                                                                                                                                                                                                                                                              requirements for reducing the cost and time to market throughout the marketing communications value chain


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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                DOWNLOAD                                                                                                                                                                                                                                                                                                                                                                       DOWNLOAD                                                                                                                                                                                                                                                                                                                                                                DOWNLOAD                                                                                                                      promotions, point-of-purchase materials, and multimedia content




                                                  34 pages                                                                                                                                                                                                                                                                                                                                                                      40 pages                                                                                                                                                                                                                                                                                                                                                             40 pages                                                                                                                                                                                                                                                                                                                                                                            36 pages                                                                                                                                                                                                                                                                                                                                                                    46 pages
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                                                     Thought Leadership...Executed Worldwide                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  4171 Piedmont Avenue, Suite #210                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Tel +1.510.450.9999                                                                                                                                                                                                                                                                                                                                                                                                                                          gistics@gmail.com
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                       ...................




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Digital Mailrooms: Fixing Your Weakest Link in the Customer Value Chain

  • 1. ............ ............ .......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .......... Executive White Paper Digital Mailrooms: Fixing Your Weakest Link in the Customer Value Chain Business case for the centralized digital processing of paper- KEY TOPICS ADDRESSED • Lifecycle costs of paper-based mail and customer-generated based mail, business forms, faxes, and email, speeding an documents organization’s overall time to satisfy customer requests for • Exhaustive inventory of compound documents by industry • Distributed fast-cycle collaboration with virtual customer information, order processing, and service fulfillment engagement files • Featured use-case productivity models: - Loan processing Business process benchmarks analyzing faster cycle-time contributions - Order processing to the customer engagement and revenue pipeline of new customers - Accounts receivable and existing accounts - Mortgages TABLE OF CONTENTS PAGE 3 Summary 4 Executive Primer: Digital Mailrooms 11 Digital Mail Processing 19 Strategic Use Cases and Payback Scenarios 34 Enterprise Content Processing Infrastructure
  • 2. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems Who helped produce this white paper? Who is GISTIcS? AuTHor coNTrIbuTorS mIChael moon alex marTInez President, CEO Product Marketing Manager GISTICS Incorporated Open Text moon@gistics.com amartine@opentext.com THINK TANK For EArLY STAGE-MArKETS mIChael Cybala GISTICS constitutes a think tank that speeds the adoption of new technology and disruptive ANALYST Director, Program and innovations among enterprises and consumers. Founded in 1987, GISTICS Incorporated joel warwICk Product Management Principal SAP Solutions Group minimizes the risk of potential buyers through the following: JAW Consulting mcybala@opentext.com • Interviews with successful early adopters of new technologies joel@joelwarwick.com • Definition of the critical success patterns of successful early adopters roland jaGer DESIGN, LAYouT, Product Manager • Activity-based analyses of adoption benefits on supply chains, workflows, and user EDITING, ProDucTIoN Open Text activities rjaeger@opentext.com lIanne mUeller • Visual explanations of how new technologies produce economic value Art Director johanneS SChaChT • Investment analyses that justify the purchase of new technical systems Fly Design Media Director of Marketing Open Text Document Technology • Project roadmaps that break down large-scale organizational changes into smaller two- lianne@flydesignmedia.com johannes.schacht@opentext.com week to two-month projects IrIS alroy • Practitioner portals that clarify the next steps in rapid deployment and payback Production Artist Gerhard deTzel GISTICS Incorporated Strategic Planning • Certified consultants that provide essential skills and resources research@gistics.com Open Text GISTICS drives the emergence of shared vocabularies, the adoption of effective problem- gerhard.detzel@opentext.com kaThleen mCFadden determination methods, and the development of unassailable investment analyses that justify kmcfadden@writetools.com jaSon weIr purchases of new technologies or disruptive innovations. Senior Manager, Product Marketing STeve TUrner Open Text GISTICS attracts early adopters and pace-setting solutioneers, demonstrating how they can Turner Associates jweir@opentext.com use new technologies or disruptive innovations to make money by delivering new complex, steve@turnersf.com integrated solutions to enterprise or consumer clients. GISTICS develops breakthrough market-making strategies for vendors of new technologies or disruptive innovations, using industry thought leadership, executive white papers, Webcasts, GISTICS InCorporaTed 4171 Piedmont Avenue, specialized Websites, and a global trust network of advanced project managers within large Suite 210 enterprises, independent consultants, and small master-class solution providers. Oakland CA 94611 USA www.gistics.com +1.510.450.9999 tel +1.510.450.0954 fax WHAT’S IN THE NAME? gist ’jist n -s [AF, it lies (said of ©2009 GISTICS Incorporated. All a legal action), fr. MF, 3d pers. rights reserved. Printed in the U.S.A. sing. pres. indic. of gesir to lie, fr. L jacére to lie, fr. jacere to throw — more at jet (to spout)] GISTICS and its agents have used 1: the main point or material part their best efforts in collecting and preparing information published in (as of a question or debate) : the this executive white paper, Digital pith of a matter : essence (the ~ Mailrooms: Fixing Your Weakest Link of a question) <the ~ of all that in the Customer Value Chain. GISTICS can be said upon the matter—R. does not assume, and hereby dis- L. Stevenson> 2: the ground or claims, any liability for any loss or foundation of a legal action without damage caused by errors and omis- which it would not be sustainable sions in this white paper, whether such errors or such omissions —Webster’s Third New International resulted from negligence, accident, or Dictionary Unabridged other causes. GISTICS | EXECUT IVE W HITE PA P ER | Digit al Mailroom s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 2
  • 3. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems What summarizes the business case for digital mail processing and the deployment of digital mailrooms? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved WEAKEST LINK OF CUSTOMER ENGAGEMENT SERVICE-FULFILLMENT CYCLES TIME TO SATISFY CUSTOMERS Most large business-to-consumer and public In the course of interacting with customers, This paper makes the case that sluggish, sector organizations seek better and less hundreds to thousands of organizational staff, error-prone mailflow processing suppresses costly ways of serving customers, growing as well as partners, must satisfy a diverse revenues from both new and existing revenues, and reducing exposure to risk. range of customer criteria for information customers, diminishing overall satisfaction, or service fulfillment, using all available brand equity, and loyalty. This paper makes the case that automating information sources, including paper-based physical mailroom operations supports all three The digital, online, pan-regional processing correspondence, forms, and documents. strategic aims, shoring up one of the weakest of customer-generated paper-based links of customer engagement: cycle times and The inbound handling and distribution of communications—a function of DIGITAL mistakes in physical mailflows. individual pieces of mail—letters, orders, MAILROOMS—speeds an organization’s contracts, etc.—often represents the weakest overall time to satisfy customer criteria for CUSTOMER ENGAGEMENT link in the customer value chain, adding timely and more personal service fulfillment. The growing preference of customers for significant time delays, paper management Faster time to satisfy customers unlocks online, interactive services continues to drive costs, and barriers to fast-cycle collaboration revenues already in engagement-revenue overall expectations of value and satisfaction, among decision-making teams. pipelines, adding the equivalent of 2.9 days of demanding that enterprises improve all The manual, duplicated, and physical revenues to the firm. customer-facing business processes. logistics workflows or mailflows consist This paper demonstrates how other The relatively new term, customer of receiving, sorting, distributing, and productivity dividends (cost and labor savings) engagement, conveys a new strategic priority using customer-generated paper-based fund enterprise wide digital mail processing and operational capability of the enterprise: communications. and paperless business processes. how to attract, serve, and keep customers for Mailflow processing that includes orders, life. change orders, complaints, requests for SUMMARY Networked customers demand faster, information, and contract amendments Digital mailrooms increase revenues, more cogent, and transparent fulfillment of (especially compound, multipart documents speeding an organization’s overall their requests for information, service, and that require two or more people to review and contribute to an appropriate response to the time to satisfy customers in the satisfaction. customer) slows an organization’s overall time engagement-revenue pipeline and, Digital mailroom processing marks the next to satisfy customers and potential buyers. thus, funding enterprise wide digital logical step in improved customer engagement. mail processing. GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 3
  • 4. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems Section 2 Executive Primer: Digital Mailrooms PAGE ESSENTIAL QUESTIONS ADDRESSED 5 What’s the strategic case for Digital Mailrooms, automating the digitization and process orchestration of in-bound physical mail, email, business forms, faxes, and compound documents? 6 What assumptions support the case for digital processing of in-bound mail, business forms, compound documents, and emails with attachments? 7 What areas of a customer value chain benefit from digital mail processing? 8 What constitutes a service-fulfillment cycle, framing the productivity contribution of digital mail processing? 9 What types of mail drive the business case for digital mail processing and centralized digital mail rooms? 10 How do faster cycle-times of digital mail processing contribute to major launches, customer engagement, and revenue pipelines? GISTICS | EXECUT IVE W HITE PA P ER | Digit al Mailroom s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 4
  • 5. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems What’s the strategic case for digital mailrooms, automating the digitization and process orchestration of inbound physical mail, email, business forms, faxes, and compound documents? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved LIFEBLOOD OF ORGANIZATIONS Greater asset-utilization rates FASTER CYCLE TIME INCREASES SALES, LOWERS COST, AND ADDS represent handling higher PROCESS AGILITY Finding and serving customers define the volumes of more diverse and purpose of all organizations, commercial or complex interactions with buyers TIME TO SATISFY CUSTOMER REQUESTS FOR SERVICE OR INFORMATION public sector. and customers—how firms satisfy Manual Mail Processing 4.5 Days Days 4.5 If customers represent the lifeblood of evolving customer requirements, organizations, then communication serves as especially among networked the heart and workflows as the arteries. buyers. DIGITAL MAIL PROCESSING ALL ABOUT CYCLE TIME Greater business process transparency gives management 1.6 Days 2.9 Day Cycle-time Gain This paper makes the case that digital new operational and data-based processing of inbound mail, customer insights—how firms can focus on Productivity Drivers Productivity Dividends correspondence, and compound documents higher value-added opportunities • Centralized mail-item processing: • Sales pipeline acceleration speeds the fulfillment of requests for service and challenges. -Extended operation hours / shifts -Peak level loading with subcontractors • Incremental closings of opportunistic deals and information, creating productivity • Faster processing of complex • Lower lifecycle costs of business records, dividends. Better visibility of high-priority workflows: forms, and compound documents accounts means senior managers -Loans • Greater asset-utilization rates through -Leases consolidated mailrooms and teams PRODUCTIVITY DIVIDENDS can track and expedite delays in -Multivendor systems • Greater business process transparency establishing new major accounts -Statements of work and monitoring This paper shows that greater productivity in or the handling of nonstandard • Faster problem determination: -Customer complaints • Better visibility and handling of high- mail workflows returns its investment in several customer requests—how firms can -Change orders and expedited priority accounts and situations areas: backorders make their quarterly goals without -Disrupted vendor supply chain flows Sales pipeline acceleration represents faster creating a big mess or breaking • Faster receivables workflow: -Outstanding item resolution buying cycles—the result of faster, more the system. -Proof of receipt or acceptance • Instant multiparty collaboration: -Subcontracted work -Instant bill presentation informed interactions with new and existing Digital mail processing can deliver • Instant online status: -Multiproduct / multivendor configurations customers. additional dividends, emphasizing -Rerouting -Ad hoc “Huddles” -Risk, compliance, or clearance -Remote office / call center Incremental closings represent opportunistic the particular aspects of individual -Peer-to-peer handoffs -Quick approvals decision making sales—often the result of faster approvals and organizations, industry norms, and -Fast escalation / triage expedited order processing. statutory requirements. Time_to_Satisfy_RFI.A.1.5 © 2009 GISTICS All rights reserved. Lower lifecycle costs represent going digital Faster processing of inbound physical mail and documents saves an average of 2.9 days in the time it takes to receive, earlier in the document lifecycle, lowering costs sort, and route customer communications to the appropriate of administrative labor, interim paper storage, internal staff or department, producing a number of immediate and long-term business records archives. economic benefits and longer term process management options. GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 5
  • 6. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems What assumptions support the case for digital processing of inbound mail, business forms, compound documents, and emails with attachments? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved NEXT STEP IN THE JOURNEY OF AUTOMATION Faster cycle times in customer- FIXING THE WEAKEST LINK OF CUSTOMER VALUE CHAINS facing communications, interaction, Business IT history reveals that automation and handoffs accelerate the core of seemingly small units of work throughout a Digital business process of finding and Mail large organization often produces significant, keeping customers. Processing long-reaching effects. AUTOMATES Time to Satisfy The figure to the right depicts the core TIME TO SATISFY REQUESTS Requests for Service SPEEDING assumptions that support the case for digital Centralized mailroom operations Centralized or Information Mailroom mailrooms, emphasizing three immediate, speed the routing of digitized Operations BY WAY OF long-lasting benefits: items, using workflow engines and Handoff Delays, Monolinear Queues, REDUCING • Increased productivity of frontline business records managers—how and Manual Searches knowledge workers and trade partners— firms integrate digital mailflows into especially those parties that contribute to their core business applications and Throughout a Customer Value Chain revenues and customer satisfaction business records management. Communications, Interactions, and Handoffs among • Improved satisfaction of customers Staff, Trade Partners, Customers, and Regulators Digital mail processing automates through faster service-fulfillment cycles and Greater the digitization, profiling, and better, more informed answers by frontline ADDING ACTIVITIES PRIMARY VALUE- Manufacturing MA cataloging of all inbound mail and Development New Product Service and Distribution Operations/ Leadership workers Marketing DIF F ERENTIATION Logistics/ and Sales Logistics RG Inbound Support faxes, including email with attached Digital_Mailroom_Case_A.2.3 ©2009 GISTICS Incorporated, All rights reserved. IN • Enhanced orchestration of complex, pan- R&D documents or images, business regional business processes—important in Organizational Infrastructure SUPPORT ACTIVITIES forms, and complex multipart Finance and Legal the era of consolidation and globalization of documents. Human Resources a workforce ICT Infrastructure Procurement and Vendor Management Lower This paper explains each of these IT THEN FOLLOWS THAT SERVING CUSTOMERS key assumptions, quantifying D I G I TA L MAILROOMS PROVIDE THE MISSING LINK, the business value of bottom-up As wryly noted by Peter Drucker, the guru automation. on management and knowledge worker INCREASING IMPROVING and ENHANCING productivity, “A firm has no other purpose than to find and keep customers.” Digital mail processing Productivity of Front Customer Satisfaction, Orchestration of Customer value-chain models depict the constitutes the next logical- line Knowledge Workers Loyalty, and Share-of- Complex, Pan-regional primary and support activities of a firm, step in enterprise automation and Trade Partners Wallet Revenues Business Processes calling attention to the central role that and business process • Customer service • Better informed answers • Innovating new services management, speeding the • Account development by staff • Launching new offerings communications, interaction, and handoffs play time-to-satisfy requests for • Contract administration • Risk or compliance • Faster fulfillment of customer needs • Processing new accounts and complex orders in finding and keeping customers. • Fewer defects, mistakes, • Servicing customer requests service and information by and do over's customers and trade partners. • Greater visibility of priority customer accounts GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 6
  • 7. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems What areas of a customer value chain benefit from digital mail processing? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved VALUE-CHAIN INTERACTIONS SERVICE-FULFILLMENT CYCLES It then follows that faster inputs to those service-fulfillment cycles, coupled with more Each organization within an industry or Over the span of any business day, a larger complete and accessible “answers” increases business ecosystem incorporates the value- enterprise will start and complete a multitude of overall productivity in the customer value added products or services of upstream tasks in service of customers. chain: increased revenues! suppliers, adding distinctive value to its Service fulfillment describes the basic work own products or services that downstream of serving customers and serving those who customers incorporate and pass along to the service customers. The faster a firm completes end-chain customer. service-fulfillment cycles represents a primary The figure on the right depicts a value-chain source of revenue: satisfied customers. business entity, suggesting how digital mail processing might spread throughout many ANY AREA THAT RECEIVES EXTERNAL MAIL OR DOCUMENTS BENEFITS FROM DIGITAL MAIL PROCESSING areas of the enterprise. Communications, Interactions, and Hand offs among Staff, VALUE CHAIN BUSINESS ENTITY Trade Partners, Customers, and Regulators Michael Porter, the international authority on competition, first introduced the concept of a value chain business entity, emphasizing the Greater ADDING ACTIVITIES PRIMARY VALUE- value-adding activities of the firm. Manufacturing Marketing and MA Development New Product Service and Distribution Operations/ In the example shown to the right, the higher Leadership Logistics/ DI FFERE NT IATI ON Logistics value-adding activities start with R&D and RG Inbound Support new product development and conclude with Sales IN R&D service, support, and leadership. However, every firm must build and maintain Organizational Infrastructure SUPPORT ACTIVITIES SERVICE (or access a partner’s) organizational FULFILLMENT infrastructure—support activities. Finance and Legal CYCLE SS F E ASS In particular, the ICT infrastructure UL Human Resources FILL (computers, telecommunications, data centers, etc.) supports digital mailrooms, integrating ICT Infrastructure automated mail processing with existing or PLAN Procurement and Vendor Management Lower newly developed workflow platforms and Value_Chain_Entity.E.1.2 © 2009 GISTICS Incorporated, All rights reserved. records management systems. The elimination of one communication or interaction cycle (follow-up telephone call, fax, email) in the time to satisfy ALL paper-based requests for service or information can add up to tens of millions of dollars in savings and increased revenues. GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 7
  • 8. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems What constitutes a service-fulfillment cycle, framing the productivity contribution of digital mail processing? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved SERVICE-FULFILLMENT CYCLES BRAND VALUE • Permanent collections of all related information objects and feeds—digital Industry benchmarks of business response Customer satisfaction represents many customer files—enable faster completion of times to customers using telephone, email, aspects of a complex business operation service-fulfillment cycles. website, online contact center, fax, and coming together to meet or exceed the physical mail services reveal significant delays customer’s expectations and criteria for value • Online service-fulfillment cycles enable for physical mail and faxes. and quality. account managers and executives to monitor the number of completion rates of service- The figure on the right depicts the common Fast, courteous, well-informed, and effective fulfillment cycles by account, workgroup, and element of all customer requests, a service- answers, fulfilled correctly on the first time region—a way to manage by exception and fulfillment cycle. represent the ideal. marshal resources to achieve a strategic Current condition represents a status quo Digital mail processing moves an win. until a precipitating event occurs, initiating a enterprise closer to that ideal in four FASTER TIME TO SATISFY REQUESTS CREATES NEW BRAND VALUE service-fulfillment cycle. ways: The clarity, succinctness, and form of requests • Digitization of physical mail, Current Condition B ra n d often vary, ranging from hysterical complaints forms, faxes, and compound REWORK START HERE documents creates more SUB-CYCLE(S) (weak, ill-formed requests) to well-reasoned ! 1 potential answer-making 2 and comprehensive descriptions of the 3 PRECIPITATING problem, likely causes, and possible solutions. resources. Affirm Equity INCIDENT • Secure, searchable, online Assessment may entail a single staff member global repositories enable Detract Complain responding to a customer’s need, applying a any number of authorized known policy (or policies) and resources at participants to use answer- Satisfaction Request hand (information and applications) to satisfy making resources. the customer—clearly the ideal situation. Insufficient Keeping customers Assess However, many service-fulfillment cycles require internal or external multiparty, entails answering Confirm S questions and TION S multistep workflows, delaying cycle IE RT provisioning PA ORA AL times and contributing to the heightened services. Faster RN LAB E INT OL dissatisfaction of customers. service-fulfillment YC RT PA cycles of customers’ LTI These multistep workflows may include requests increase EP, MU TIST S IE many iterative cycles and a changing cast of satisfaction and Fulfill MUL RT PA Plan NA L workflow participants across the phases of the likelihood of EX TE R assess, plan, fulfill, and confirm of the service- retaining loyal customers. SERV ICE-FULFILLMENT CYCLE fulfillment cycle. Service_Fulfillment_Cycle.A.2.2 ©2009 GISTICS All rights reserved GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 8
  • 9. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems What types of mail drive the business case for digital mail processing and centralized digital mailrooms? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved CRITICAL MAIL ITEMS IN COMPLEX MAILFLOWS TIME TO SATISFY CUSTOMER REQUESTS Complex workflows also emphasize what we call service-fulfillment cycles—demand by How many important pieces of mail get lost The bottom figure on the right depicts a customers for information related to a buying in the daily shuffle of mailrooms and Website category of critical mail items in complex decision, support related to using a product or communications, delaying sales cycles, workflows—a small, often quite diverse, and service, and service of an account or program. creating higher-cost personal interventions meaningful portion of all inbound mail that by field sales or customer service staff, or represents considerable value: new accounts, High volumes of inbound mail can obscure putting the firm at risk of noncompliance with orders, and service requests. critical mail items. Complex workflows regulations? with multiple parties and hand offs entail The number of decision-making variables additional risks: delay, mistakes, and customer The sheer volumes of mail and the diverse or items to consider in taking well-informed dissatisfaction. types of mail make it difficult to answer that actions and the number of participants who question. engage in two or more decision points all contribute to the complexity of core business In this paper, we make the case that the digital processes. processing of higher added-value mail will deliver sufficient short-term value that the firm will recoup the total investment in a centralized digital mailroom. The top figure on the HIGH VOLUME MAILFLOWS OFTEN HIDE CRITICAL MAIL ITEMS right depicts how greater volumes of mailed and GREATER GREATER GREATER GREATER emailed items and a greater High-risk Critical Mail Number of unique types of mail and documents processed number of unique types of Mailflows Items in and authorizers per service-fulfillment cycle making variables, and service-fulfillment steps Number of variables or items to consider mail and documents can Complex Number of workflow participants, decision- Number of decision-makers, reviewers in taking a well-informed action mask inherent business Workflows DECISION POINTS PARTICIPANTS risks—communications and ENTAILMENTS documents that entail a TYPES greater number of workflow participants, decision-making variables, and service- fulfillment steps. FEWER FEWER FEWER FEWER Doc_Volume_Decisions_Participants.B.1.3 © 2009 GISTICS, All rights reserved. LOWER VOLUME GREATER LOWER VALUE GREATER Number of mailed and emailed items processed GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 9
  • 10. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems How do faster cycle times of digital mail processing contribute to major launches, customer engagement, and revenue pipelines? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved THE VALUE OF ONE DAY’S REVENUE VALUE CREATION CUSTOMER ENGAGEMENT LIFECYCLE Frontline service staff’s instant access to The major launch of new products, campaigns, Today, organizations must re-engineer how the pertinent information of a customer’s partnerships, or business models often they attract and keep customers for life. situation—digital account files composed of represents the most significant source of new Online consumers expect more: better, faster, previous emails, voicemails, and digitalized revenue for most firms. cheaper. correspondence, forms, faxes, and A 2.9 day cycle-time gain in faster fulfillment of The customer engagement lifecycle model documents—speeds completion of service- customer questions and faster processing of depicts additional needs for a more informed fulfillment cycles first-time orders correlates to more sales in the and agile context for communication and Faster completion of service-fulfillment cycles product sales lifecycle. interaction. can add up to significant positive effects for the firm. CYCLE-TIME GAIN IN PROCESSING INBOUND MAIL ADDS VALUE THROUGHOUT THE FIRM GISTICS’ research of digital mail processing reveals that a medium to large enterprise can CUSTOMER ENGAGEMENT LIFECYCLE expect an average net gain of 2.9 days in all business processes that rely upon inbound STATUS OF BRAND No awareness Awareness Consideration Trial Purchase Preference Commitment Repurchase Advocacy Collaboration mail and related documents. IDENTIFICATION OF WEB USER Unknown Known Profiled Customerized Certified BRAND CONVERSIONS Lead generation (BC1) Facilitated Buying (BC2) Retention (BC3) Loyalty (BC4) WOM agents (BC5) A quick calculation of the 2.9 day cycle- time gain suggests that a firm with $1 billion VA L U E - C R E AT I O N P R O C E S S in annual revenues or roughly $4.5 million per business day (from 220 days in a year) can add up to $13.5 million in incremental revenue—essentially adding 2.9 days to the fiscal year. Offer-market Demand Sales Satisfaction Strategic development creation conversion fulfillment development The figure below depicts three areas of benefits from a 2.9 day cycle-time gain, calling attention to the pervasive effects of processing inbound mail, forms, faxes, and documents and integrating those native digital MAJOR LAUNCH: Products, Campaigns, Partnerships, Business Models objects such as emails and their attached digital files. Pipeline_Engagement_Sales.B.1.0 ©2009 GISTICS All rights reserved. Faster, more informed service-fulfillment cycles, using the digitized objects from digital mail processing, enable frontline sales to close more business, customers to more fully engage in self- service workspaces, and firms to maximize the sales potential of major launches. GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 10
  • 11. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems Section 3 Digital Mail Processing PAGE ESSENTIAL QUESTIONS ADDRESSED 12 What summarizes the basic idea of digital mail processing? 13 How can an activity model of enterprise mail flows highlight the value of digital mail processing? 14 Which of these types of documents flow through your enterprise operations? 15 Which of these types of documents flow through these industries or supply chains? 16 How long must firms store various types of business records and customer communications? 17 What constitutes a customer engagement package, a logical collection of digital contents of a digital customer file? 18 What elements comprise a customer engagement package? GISTICS | EXECUT IVE W HITE PA P ER | Digit al Mailroom s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 11
  • 12. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems What summarizes the basic idea of digital mail processing? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved LAST HOLD-OUT OF THE PAPERLESS OFFICE ALREADY DIGITAL AND READY TO INTEGRATE ALL-DIGITAL MAIL FLOWS Successive waves of innovation in IT and Much of the existing communications and Digital mail processing entails the digitization Internet technologies drive gains in productivity, messaging already exists in digital form: emails of physical mail and the integration of these business agility, and customer engagement. and their attached files, digital dispatches from newly digitized items with email, digital camera phones, faxes, online file transfers dispatches, and web content. Digital mail processing constitutes another (FTP and HTTP), digital newsletters, and Web meaningful step toward business process Digitizing physical mail upon first receipt pays posts (Web pages, user-generate content, and automation and the long-time vision of the several downstream dividends: Web-user session recordings, etc.) “paperless office.” • Faster, more agile fulfillment of revenue- Digital mail rooms simply bring physical producing workflows The figure below depicts the basis elements mail and documents into the digital flow of • Lower labor expenses and physical costs of digital mail processing, calling attention to information. associated with the life cycle of business existing digital flows of communications and files. information and records management DIGITIZING UP-FRONT REDUCES COST, ERROR RATES, AND TIME-TO-SATISFY REQUESTS FOR INFORMATION OR SERVICES O R I G I N AT E CAPTURE I N T E G R AT E MANAGE PROCESS PRESERVE P H YS IC AL • Correspondences MAIL • Forms and applications • Agreements Digital Workflow • Statements of work Manager Archival Mail B ra n d Current Condition Policies • Coupons and contests START Processing REWORK SUB-CYCLE(S) HERE ! DIGITAL SOURCES 1 2 3 PRECIPITATING EMAIL • Plain text Affirm Equity INCIDENT Bankers Box • Rich text • PDFs Enterprise • MS Office docs Enterprise Content Complain Detract • Photos, scans, etc. DI GI TAL Data Sources Repository Physical Digital Satisfaction Request Long-term Long-term M AI L ROOM Storage Storage OPERATI ON S DIGITAL • WiFi/3G camera photos • Scan: digital INTERACTION Insufficient D I SPATC HES • Faxes image DEVICES Assess • FTP/HTTP transfers • Capture / crop PC Confirm S • eNewsletters TION digital image S IE RT PA ORA • Classify / index ER NA L LAB • Extract data item Smart INT WEB • User-generated content OL Phone YC – OCR or Auto-Fill POSTS • Syndicated content RT A – Manual data input TIP UL • Webpage "snapshot" • Dispatch to Web Mail STE P, M S ULTI IE Fulfill RT • Session recording workflow Plan M AL PA RN TE Fax EX SERV Mail_Flow_Model.A.1.5 © 2009 GISTICS All rights reserved. Handheld ICE-FULFILLMENT CYCLE Service_Fulfillment_Cycle.A.2.2 ©2009 GISTICS All rights reserved GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 12
  • 13. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems How can an activity model of enterprise mail flows highlight the value of digital mail processing? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved CENTURIES OF HABIT TOTAL ELAPSED END-TO-END TIMES DIGITIZE NOW OR LATER Organizations have received and handled mail This activity model shows that physical This activity model also calls attention to a for nearly two centuries without much change workflow takes an average of three to eight stunning irony: enterprises will eventually in the basic structure or task. days to complete mail transport within a digitize many of their business records large enterprise and another four to nine and customer communications and incur The figure below depicts a general activity days to complete a service fulfillment—the tremendous costs of a paper-based workflow. model for the typical physical and digital mail satisfaction of a request for information or This paper makes the now self-evident case flows, calling attention to two workflows: mail service. Digital mail processing slashes the to digitize paper-based mail upon receipt, transport and service fulfillment. total number of days elapsed (both workflows eliminating the costs of duplication, local combined) to 1.3 to three days, saving 5.7 to storage of 9 ± 5 duplicates, the labor of an 14 days. end-of-lifecycle assessment, and long-term record storage. ACTIVITY MODEL OF TYPICAL MAIL FLOWS REVEAL SIGNIFICANT OPPORTUNITIES FOR PROCESS IMPROVEMENT MAIL TRANSPORT WORKFLOW SERVICE FULFILLMENT WORKFLOW TOTAL DAYS ELAPSED 3 to 8 Calendar Days 4 to 9 Calendar Days 7 to 17 Days RE CE IVE M OVE AS S E S S RESEARCH R E S O LV E R E S POND MONI TOR ARC HI V E • Intake mail tubs • Load carts • Read incoming • Access workflow • Review request • Telephone or fax • Confirm satisfaction • Assess items Physical • Unbundle packs • Visit mail-stop • Verify account • Forward to staffer • Edit or request summary or rework subcycle • Certify to policy • Bulk sort: piles • Pick-up bundle • Determine issue • Confirm hand-off clarification(s) • Print cover letter • Run reports and • Store or DIGITIZE – Discard junk mail • Put to inbox • Open new case • Research answers • Discuss / IM / Email • Package for mailing summaries official records – Reroute to other • Approve or reject • Route pick-up • Expedite lagging cases • Journal items address(es) • Pick-up items • Label case folder • Compose response • Return to desk • Create correspon- • Add to correspondence • Add to correspondence • Update case folder • Declare official records • Offline / offsite – High / low priority • Photocopy (3) dence folder folder folder • Destroy (16 to 18) • Warehouse or • Certify received photocopy duplicates • Initiate workflow • Request approval destroy • Pre-route to trays • File a copy TOTAL DAYS ELAPSED 0.5 to 1 Calendar Day 0.8 to 3 Calendar Days 1.3 to 4 Days CA P TU RE M AN AG E PROCESS R E S O LV E P R OV I S I ON MONI TOR ARC HI V E • Ingest into repository • Read online • Review request • Execute email with • Review cases • Assess items DIG ITAL M AI L • Assign to workflow(s) • Access account • Edit or request links: pending • Certify to policy P ROC E S S I N G • Multi-route items • Determine issue clarification(s) – Teleservice center – Customer engagement • Run reports and summaries • Store official – Teleservice representative • Collaborate online • Discuss / instant records • Scan: digital image Digital package – Account manager with multiple parties message / email – Interactive FAQ • Expedite lagging • Journal items • Capture / crop digital • Link to policy manager cases • Research answers • Approve or reject database • Offline / offsite image • Integrate to IT services • Telephone with • Declare official • Compose response • Notify Account • Warehouse / • Classify / index – ERP, CRM, Portals Service confirmation records – ECM, BPM, Email • Request approval destroy • Extract data item • Destroy duplicate – OCR or Auto-Fill • Build customer digital copies – Manual data input engagement objects Mail_Asset_Lifecycle.A.1.7 © 2009 GISTICS All rights reserved. • Dispatch to workflow – Previous correspondences, mailers, business records, etc. GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 13
  • 14. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems Which of these types of documents flow through your enterprise operations? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved MAILFLOWS OF AN ENTERPRISE Schedules Equipment Maintenance Plans Bills of Material Spreadsheets Equipment Profiles Channel Lists The table on the right depicts a partial list of documents Text Documents Equipment Receipts (POP) Commission Reports Web Documents Guidelines Customer Communications that most enterprises process on a regular basis. Maintenance and Repair Docs Inventory Reports MARKETING OPERATIONS Maintenance History Summaries Leads Reports Items underlined represent high-risk inbound mailflows Coupons Maintenance Records Letters of Intent for which firms likely pay a high “analog tax” in the form General Business Reports Maintenance Schedules Presentations Marketing Reports Programmed Maintenance (by Mfr.) Price Lists of significant time delays, paper management costs, and Multimedia Presentations Repair Expense Documents Product / Service Catalogs barriers to fast-cycle collaboration among teams. Newsletters Repair Expense Tracking Promotion Materials Product Info and Spec Sheets Schedules Proposals The figure to the right depicts the operational capabilities Product / Service Catalogs Tracking Reports Quotes of attracting and keeping customers for life—customer Promotions Brochures Receipts Qualification / Reference Reports SALES OPERATIONS Return / Credit Documents engagement—calling attention to the two applications of Surveys Account Statements Sales Agreements transactional content processing: digital mail processing Targeted Emails Arrangement Letters Sales Reports that speeds in-bound customer communications HR AND PAYROLL MAILFLOW DELAYS AFFECT CUSTOMER ENGAGEMENT and requests to the appropriate department and Resumes customer portals that provision content and self-service Cover Letters Recruiting Collateral Custome applications to customers, trade partners, and customer- Employment Policy Handbooks ilities of the r En facing staff. Employee Surveys Capab gag l em Benefit Enrollment Documents na e tio Personal ACCOUNTING CALL CENTERS Benefit Claim Documents Interaction- OSHA Compliance Docs Fulfillment nt era Account Statements Account Statements Customer Individualized Service Email and Cy Annual Reports Bills Federal/State Compliance Docs Op (Operational CRM) Services cle Financial Models Collection Notes Training Seminar Materials Financial Statements Customer Communications Workbooks / Online Resources Sales Force Multichannel General Ledger Incident Reports Salary Surveys Automation (Tactical CRM) Analytics Internal Audit Reports Notification Letters Job Opening Announcements Internal Project Analyses Price Lists Skills Matrices S INS ICE Invoices Product / Service Catalogs Work Agreements SERVING IGH RV Portfolio Management Reports Receipts eCommerce Customer TS Customers SE PROCUREMENT ENT and Web site Experience Purchase Orders Service Outage Reports MARK Agreements Management for Life Management Pro Forma Statements Service Reports / Notes Catalogs EM ATTRACTING KEEPING Quarterly Statements Service Requests Misc. Analysis Reports ET AG Tax Documents Termination Notices Payable Invoices DEVELOPMENT I Marketing Social N Collaboration G N Price Lists A Content OP M Media BILL PRESENTMENT / PAYMENT Agreements Management ERATIONS Monitoring Account Statements Product Manuals Calendars Invoices Purchase Orders Correspondence Content Voice of Payment Advice Notes Purchase Requisitions (BOMs) Customer Design Drawings Optimization Content Payment Orders / Histories Receipts for Goods Received Agile Emails (SEO, Semantic tagging) Content Analysis Receipts RFQs / RFPs Historical Documents Creation Vendor Profile Data Forms Specification Sheets (DAM, Media Services, Marketing Collateral Localization) Project Logs PROJECT MANAGEMENT Proposals Assignments Engagement_Cycle_Capabilities.A.1.7 ©2009 GISTICS All rights reserved GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 14
  • 15. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems Which of these types of documents flow through these industries or supply chains? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved MAILFLOW NOT SIMPLE The table below depicts a partial list of documents that flow through particular industries and supply chains on a regular basis. Items underlined represent high-risk inbound mailflows in which firms likely pay a high “analog tax” in the form of significant time delays, paper management costs, and barriers to fast-cycle collaboration among decision-making teams. BANKING FINANCIAL INDUSTRY MANUFACTURING TAX, LICENSE, & CUSTOMS TRAVEL AND LODGING Account Agreements Appraisals and estimates Bills of Material Customs Documents Invoices Account Balance Statements Customer Trade Orders CAD / CAM / CAE Drawings Customs Regulation Manuals Itineraries Credit Appraisals Trade Confirmations Component Catalogs Denied / Restricted Party Lists (for Reservation Confirmations Customer Correspondence Research Reports Detailed Product Specifications Drawback Documents) Tickets Customer Payments Account Balance Statements Inspection Approvals Exports Travel Preference Reports Loan Applications Inventory Reports General Instructions Prospects Lists and Information INSURANCE Operating Procedures & Manuals Import/Export Licenses WAREHOUSE MANAGEMENT Accident/ Catastrophe Reports Quality Specs Other Regulatory Compliance Docs Agreements CONSTRUCTION Claims Reports Repair Logs Sales and Use Tax Docs Barcode Labels Agreements Cost Estimates Request Documents Tariff / Rate Rules Bills of Lading / Airbills Closing Statements Disputes / Counter claims Shipping Tags US / VAT Tax Docs Bills / Invoices / Receipts Construction Permit Requests Insurance Policy Agreements Supplier Lists / Info Broker / Freight Forwarder Costs Construction Permits Invoices TRANSPORTATION / LOGISTICS Capacity Planning, Optimization, Test Plans Construction Plans / Designs Lists of Asset Repair Vendors Agreements and Demand Forecasting Reports Construction Status Reports Payments PROFESSIONAL SERVICES Barcode Labels Daily Schedules Inspection Certificates Prospects Lists Agreements Bills of Lading / Airbills Exception Handling Documents Invoices Repair Work Approvals Budget Reports Bills / Invoices Feedback / Quality Surveys Material Requirements Sheets Risk Profiling Reports Invoices Broker / Forwarder Costs General Instructions / Manuals Purchase Orders Letters and Reports Capacity Planning, Optimization, Inventory Reports Specification Sheets LEGAL SERVICES Plans and Schedules and Demand Forecasting Reports Loss / Damage Claim Documents Agreements Proposals Daily Schedules & Inventory Order and Order Detail Documents HEALTHCARE INDUSTRY Arbitration Agreements Purchase Orders Exception Handling Documents Performance Reports Appointment Books Corporate Filings Time and Expense Reports Feedback / Quality Surveys Pickup Request Documents Doctor Fees Reports Court Filings General Instructions / Manuals Price Lists Insurance Applications Lawsuits PHARMACEUTICAL Landed Cost Estimation Reports Quotes Insurance Cards Letters and Reports Chemical Reports Loss/Damage Claim Documents Reorder Documents Patient Records New Patent Filings Clinical Test Procedure Manuals Performance Reports Return Documents Payment Invoices Proposals New Drug Application (NDA) Pickup Request Documents Prescription Slips Time and Expense Reports Approvals Price Lists Verifications of Insurance NDA Filings Quotes Coverage Patient Summaries X-rays Receipts Research Plans and Schedules Return Documents Research Reports Service Level Reports Statistical Analysis Reports Testing Reports / Records GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 15
  • 16. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems How long must firms store various types of business records and customer communications? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved BUSINESS RECORD RETENTION ONE YEAR Inventories of products, materials, Minutes books of directors and Correspondence with customers and supplies stockholders Digital mail processing helps to reduce the cost of vendors Invoices to customers Payroll tax returns Duplicate deposit slips Notes receivable ledgers, schedules Property records records management, eliminating the surprising Purchase orders (other than Payroll records and summaries, Real estate appraisals by external and largely hidden costs of labor, physical storage, purchasing department copy) including payment to pensioners appraisers Receiving sheets Plant cost ledgers Retirement and pension records photocopying, and productivity lost in searching Requisitions and stockroom Purchasing department copies of Sales and use tax returns for or re-creating lost or misplaced documents. withdrawal forms purchase orders Tax returns and worksheets (not Sales records mandated but recommended) THREE YEARS According to a published report of AIIM, an Employee personnel records (after Time books Trademark and patent registrations Travel and entertainment records Training manuals international professional association dedicated to termination) Voucher registers and schedules information and image management, the average Employment applications Vouchers for payments to vendors, Expired insurance policies company studied spends. Form I-9 (employment eligibility employees, etc. NOTE: Document • $20 in labor to file one document verification) LONG TERM retention regulations and General correspondence Annual financial statements policies vary according • $120 in labor to find a misfiled document Help wanted ads Audit reports from CPA / accountant Internal audit reports Business permits to a particular nation and • $220 in labor to reproduce a lost document Internal reports Buy-sell agreements province. • $8 to $15 to courier or overnight a document Petty cash vouchers Canceled checks: fixed assets, Physical inventory tags income taxes • $12,000 per year to maintain one file cabinet Savings bond registration records of Cash disbursements journals with four file drawers employees Charts of accounts Time cards for hourly employees Contracts AIIM also reports that a typical firm Leases now in effect SEVEN YEARS • Photocopies a typical document 19 times Accident reports and claims Corporate documents (incorporation, charter, by-laws, etc.) • Loses 7.5 percent of all documents Accounts payable ledgers and schedules Deeds, mortgages, bills of sale Depreciation schedules • Misfiles a remaining 3 percent of all documents Accounts receivable ledgers and Documents substantiating fixed asset schedules additions In addition, AIIM reports, professionals spend 11 Auto mileage logs Employee records: actuarial reports, Bank statements and reconciliations financial statements, correspondence percent of their time reading information and up Canceled checks: general, payroll, with IRS and Dept. of Labor, plan and to 50 percent of their time searching for pertinent payroll taxes trust agreements Canceled stock and bond certificates information. Charitable contribution General and subsidiary ledgers and year-end trial balances acknowledgments of $250 or more Insurance records: current accident INVESTMENT JUSTIFICATION Employment tax records reports, claims, and policies Expense analyses and expense Investment trade confirmations distribution schedules The infrastructure of digital mail processing Expired contracts, leases IRS revenue agents’ reports Legal records, correspondence includes records management and workflow— Expired option records critical elements of enterprise records management. GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 16
  • 17. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems What constitutes a customer engagement package, a logical collection of digital contents of a digital customer file? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved TRANSFORMING CONTENT INTO ENGAGEMENT Similar in structure to virtual case files and emails, forms, etc. within a service portal, or digital account files, customer engagement enable users to download policy-managed Frontline staff interacts and communicates with packages may contain emails and attached PDFs—a customer engagement package. customers throughout the workday, using the documents, Web pages from corporate and best available information to answer questions, Customer engagement packages also enable social networking sites, videos, and photos. render services, and keep customers satisfied. frontline staff, partners, and managers Frontline staff, partners, and managers may to simultaneously access any customer A closer examination of how frontline staff simultaneously access any customer communication or content—no hand off’s, no engages customers and suggests three engagement package, speeding ad hoc lost folders, and no delays. transformational ideas: collaboration, decision making, and approvals. • Live improvisational performances by frontline staff engage customers in problem- PROVISIONING STRATEGIC ENDPOINT OF DIGITAL MAIL PROCESSING: CUSTOMER ENGAGEMENT PACKAGES solving collaborations. PACKAGES TO • A fully informed frontline staff, accessing all CUSTOMERS CONTENT TYPES BY SO U R CE pertinent information related to the customer, Collaborative Content MASTERED PACKAGES A well-designed • Email - Vetted for external use stands a much better chance of satisfying PDF object or online folder document archive - Packaged to provision • Discussion boards Customer the customer. • Social networks - Linked to CRM & ERP and workflow • Workspace annotations Engagement • Integrated collections of all pertinent platform enables Static or Locked Files Package customer information require digital objects, authorized • CAD drawings • Illustrations COLLABORATIVE OBJECT SETS • Dates and times created, used, workflow engines, and content archiving. CONTENT WORKFLOW • Maps / geospatial Multi-party workspaces personnel to • PDFs - Extensive metadata - Policy-managed routes and retired share portions • Customer • Photos The figure on the right depicts a content • Scans (film or - Storage governance comments, services workflow for improving customer of customer paper-based) Editable Documents communications, engagement among frontline staff, engagement • Drawings BASIC CONTENT and messages • Commitments packages with • Presentations emphasizing the production and provisioning - Known source • Text files - Basic metadata mapped to of customer engagement packages to the customers, as • Spreadsheets - Basic storage policies and tracking frontline staffer. well as service Time-based • Audio: voice, music, signals intermediaries Customer_Engagement)_Packages.1.5 • Video: camcorder, DARK ©2009 GISTICS, All Rights Reserved webcam, broadcast, CUSTOMER ENGAGEMENT PACKAGES (maintenance streaming CONTENT - Digital objects and repair • Webcast, presentation, webinar - No descriptive An accessible, digital collection of pertinent metadata organizations). Physical Objects customer information, enabling frontline Authorized • Postal mail staffers to more effectively engage and satisfy • Express mail/Overnight personnel can • Shipping manifests customers and trade partners, defines the send an email strategic endpoint of digital mail processing DIGITAL EMAIL WEB Digital mail processing adds scans of physical with hyperlinks to MAIL AND SITES PROCESSING DESKTOP mail objects to online workflows, contributing to view documents, the production of customer engagement packages. GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 17
  • 18. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems What elements comprise a customer engagement package? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved ENTERPRISE CONTENT MASH-UPS For example, a customer engagement package ALL IN ONE PLACE FOR MULTI-PARTY COLLABORATION contains all digital content related to one open Young adults today grab mash-up content— The figure below also depicts how multiple customer case, including emails, forms, faxes, photos, graphics, videos, music—creating a parties can examine all or portions of a drawings, receipts, etc. mixed media file that they subsequently share package in a concurrent or time-shifted with friends. Authorized users may access customer basis, adding comments and visual engagement packages in a customer portal or annotations in a specific context of a customer The figure below depicts an example of how an internal service portal. engagement (disputed item on invoice or an organization might combine emails, forms, return authorization). Concurrent, multi-party videos, and faxes related to a particular collaboration can eliminate hours or days in account, creating a customer engagement fulfilling a request for service or information. package. DIGITAL MAIL PROCESSING SUPPORTS THE TRANSFORMATION PAPER-BASED FORMS AND COMMUNICATIONS INTO MIXED-MEDIA CUSTOMER ENGAGEMENT PACKAGES EMAIL FORM EMAIL DISCUSSION THREAD SCREENCAST VIDEO WEB CONFERENCES PHOTOGRAPHIC EVIDENCE EXTERNAL MULTI-PARTY COLLABORATION • Customers, subcontractors, trade partners CUSTOMER PORTAL Customer Engagement Package DIGITAL OBJECTS OF CUSTOMER ENGAGEMENT PACKAGES POLICY-MANAGED PDF INTEGRATED VIEW CREDIT APPLICATION RMA ( Return Material Authorization ) FAX LETTER CAD DRAWING SERVICE SERVICE FULFILLMENT PORTAL CYCLE SS F E AS S UL BUSINESS REPLY MAIL SHIPPING MANIFEST SHIPPING RECEIPT JOURNAL REPORT FILL PLAN INTERNAL MULTI-PARTY COLLABORATION • Account executives, teleservice representatives, credit managers, risk and compliance officers, department heads, senior executives DIGITIZED SCANS OR PAPER-BASED MAIL Customer_Engagement_Package.B.1.2 © 2009 GISTICS All rights reserved. GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 18
  • 19. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems Section 4 Strategic Use Cases and Payback Scenarios PAGE ESSENTIAL QUESTIONS ADDRESSED PAGE ESSENTIAL QUESTIONS ADDRESSED 20 What makes an IT investment strategic? 30 How can digital mail-processing of account payables save 21 What drives the return on IT investments? $10,002,376 in processing costs and $1,153,125 in ancillary gains from fewer mistakes and overpayments? 22 What assumptions underlie the productivity dividends in mortgage processing, emphasizing the benefits of digital mail processing? 31 What assumptions underlie the productivity dividends of the faster, more accurate service fulfillment cycles in a public institution, 23 How can digital mail processing of new loans reduce cycle time? emphasizing the benefits of digital mail processing? 24 How can digital mail processing of new loans save $11,918,750 in costs, 32 How can digital mail-processing reduce cycle time in the add $20,555,556 in new loans and add $49,636,409 in incremental interest fulfillment of citizens’ requests for information or service by public earnings? institutions? 25 What assumptions underlie the productivity dividends in new account 33 How can digital mail-processing in public institutions save establishment, emphasizing the benefits of digital mail processing? $28,330,455 in processing costs, $4,666,667 in incremental 26 How can digital mail-processing reduce cycle time in new account revenues, and $210,000,000 in overall economic impact? establishments? 27 How can digital mail-processing of new account establishments save $6,807,301 in costs and add $148,750,000 in potential new revenues? 28 What assumptions underlie the productivity dividends of the faster, more accurate processing of account payables, benefits deriving from digital mail processing? 29 How can digital mail-processing reduce cycle time for accounts payable processing? GISTICS | EXECUT IVE W HITE PA P ER | Digit al Mailroom s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 19
  • 20. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems What makes an IT investment strategic? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved INNOVATION AND MARKETING BASIC STRATEGY MAP DEPICTS THREE AREAS OF RETURN ON IT INVESTMENT Peter Drucker, expert on management, wryly noted, “Only two things create value: innovation Increase return and marketing. All else is cost.” on capital The figure on the right depicts a generic strategy 1 map, emphasizing the practical implementation of Drucker’s dictum. Financial Improve Increase sales in Grow sales in Focus existing segments new products In this paper, we make the case that digital productivity and markets and services mail processing delivers substantial short-term productivity improvements, increases sales in existing segments and marketing, and supports Improve Operating Grow High-Value Accelerate Product Quality and Efficiency Customer Relationships Innovation bringing innovation to market—greater levels of 2 customer engagement and faster fulfillment of Become acknowledged Provide valued service, Introduce innovative, requests for information or services. Customer application expertise, high-performance Focus leader in quality and reliability and support products or solutions In this section of the paper, we will examine four strategic use-case scenarios, correlating the 3 Excel at technology, criteria as depicted in this strategy map to the Improve supply chain product development, Optimize customer Process efficiency and following: Focus effectiveness profitability and lifecycle management • Processing new loan applications • Closing an accounts receivable Improve quality, cost, Expand channels, Identify next-generation and flexibility of offerings, and • Processing a new, complex order operating processes markets market opportunities • Processing a new mortgage. In each use case, we will compare the activity Build and maintain strong customer costs of current physical mail and service relationships fulfillment workflows with all-digital workflows enabled by digital mail processing. 4 Create a High-Performance Culture Learning Expand and builld Enable and require a Develop leadership and strategic skills, and an execution- continuous learning Growth capabilities, and sharing of driven culture Focus and expertise knowledge StrategyMap_Generic.D.1.3c © 2009 GISTICS Incorporated, All rights reserved. GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 20
  • 21. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems What drives the return on IT investments? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved THE PROMISE AND REALITY OF IT INVESTMENTS Personal computers, packaged software, 20-20 INSIGHT and local area networks enabled many firms Each new wave of information technology GISTICS’ research of hundreds of deployed to eliminate typing pools and clerical staff. arrives with a unique set of opportunities. systems at 15,000+ end-use firms reveals This opportunity required new investments in that bottom-up automation solutions yield the The arrival of mainframes gave many industry-standard hardware and software, as highest return on investment when compared firms unprecedented ability to control the well as in user support and help desks. to other options. Why? Workflow and fundamentals of their businesses, in particular, The Internet enables many firms to engage workgroup automation rarely addresses more inventory and accounting. However, this customers worldwide 24x7, reducing costs than a small, tightly focused group of users. opportunity demanded mastery of software and time-to-market cycles. This opportunity development. The figures below depict the distilled insights still requires huge investments in specialized of industry research: The highest return- Minicomputers and packaged software gave IT infrastructure and in reengineering core on-investment for information technology many firms the ability to automate specialized business processes. results from quickly deployed solutions business processes and departments, such (usually in workgroups or departments) that as human resources and manufacturing. successfully automate a business process. This opportunity required new investments in training. WORKFLOW AUTOMATION DELIVERS GREATEST RETURNS BY SPEEDING CYCLE TIMES FROM THE BOTTOM UP HIGH HIGHLY AUTOMATED Enterprise Workgroup systems systems productivity gains, savings, or increased sales Workflow Number of times total cost returned from automation Workgroup procedures, processes, or practices Workflow EMBEDDED KNOWLEDGE RETURN ON INVESTMENT Enterprise systems Business rules automating systems automation Departmental systems Departmental systems Desktop Desktop applications applications MOSTLY LOW MANUAL ROIVsTimeB.1.2 ©2009 GISTICS Incorporated, All rights reserved. ROI-CycleVsKnowledgeB.1.2 ©2009 GISTICS Incorporated, All rights reserved. SHORT BREAKEVEN TIME LONG SLOW BUSINESS PROCESS CYCLE TIME FAST Time to recoup total cost of ownership Time to produce a finished unit of work GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 21
  • 22. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems What assumptions underlie the productivity dividends in mortgage processing, emphasizing the benefits of digital mail processing? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved PROCESSING NEW LOANS “banking” the operational capacity to handle a following pages) separates efficiency-based significant increase in lending activity. cost savings and revenue gains, calculating Lending institutions make money by lending two different payback scenarios. money to businesses and individuals. SOURCE OF INCREASED REVENUES The activity-based data of the models In the particular case of home mortgages, a The payback model estimates potential demonstrate cost savings from current network of middlemen facilitate the lending revenues from realizing 162 extra revenue- workloads. Increase revenues derive from process; these middlemen often include producing days from a greater daily capacity faster revenue cycles and greater capacity to mortgage brokers, appraisers, and loan to process loan applications already in the process more loans. aggregators—with great variation across pipeline: regional markets (states or nations). • Daily processing capacity expands from 68.5 Unlike many efficiency benchmarks that loans per day or 25,000 per year to 123.3 examine the contribution of workflow The lending process often entails the loans per day or 45,000 per year. automation to a specific operation (such as production, delivery, and review of 50-plus CRM)—where only a small number of users pages of material: loan application forms, Increased productivity in loan processing benefit from the exchange certain types of credit reports, legal disclosures, tax returns, represents a potential of $70,191,964 on new information—the productivity dividend as appraisals, permits, waivers, etc. revenue from existing lines of business and described in this paper spreads to every Digital mail processing addresses the labor- revenue pipelines, comprise of the following: aspect of the enterprise: sales, account and cost-intensive process of getting the right • Receipt of $20,555,556 in incremental management, customer service, HR, legal, documentation to all the authorized individuals revenue from points (one percent of administration, etc. Processing loans involved in the lending process, minimizing $185,000 loan package) represents one of several benefits of digital delays, errors, and redundant activities of a • Activation of a loan four days sooner, mail process in lending institutions. multi-step, multi-party workflow. thus earning FASTER PROCESSING OF IN-BOUND LOAN PACKAGES INCREASES REVENUE IN TWO WAYS additional ANNUAL COST SAVINGS interest MANUAL MAIL PROCESSING MANUAL SERVICE FULFILLMENT: PROCESSING NEW LOANS The figure to the right depicts a net gain income of 2.0 Days 4.5 Days 7.0 Days of four days of a lending institution that $49,636,409 DIGITAL MAIL PROCESSING DIGITAL SERVICE FULFILLMENT: PROCESSING NEW LOANS processes 25,000 loan packages (averaging calculated at 0.5 Days 4.5 Days 4 Day Cycle-time Gain $185,000) per year, delivering $11,918,750 in six percent Productivity assumptions and drivers Productivity dividends total cost savings from: per annum. LOAN PROCESSING $10,668,750 Annual labor savings • $10,688,750 in annual labor savings or 75.5 PHYSICAL / DIGITAL Daily loan processing capacity 68.5 123.3 $1,250,000 Annual material savings percent reduction labor DESCRIPTIVE $11,918,750 Total annual savings Annual loan processing capacity 25,000 45,000 DATA MODEL • $1,250,000 in annual cost savings or 100 Average loan amount $185,000 162 days Extra revenue-producing The detail days recouped percent reduction in materials $20,555,556 New loans closed analytic model A lending institution may realize these (SEE two $49,636,409 Additional interest from faster closings labor savings in a staff reduction as well as Productivity_Dividend_Digital_Mail_Loan.1.2 © 2009 GISTICS All rights reserved. $70,191,964 Potential new revenue GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 22
  • 23. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems How can digital mail processing of new loans reduce cycle time, emphasizing the benefits of digital mail processing? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved Use-case payback scenario: Loan processing agent receives 50-page loan application package, including legal disclosures, forms, applicant financials, and regulatory notices, from independent broker and initiates evaluation workflow. LABOR TASKS LABOR / MINUTES NOTES SUBORDINATE ACTIVITIES PHYSICAL DIGITAL DESCRIPTION OF ACTIVITIES: ITALICS INDICATES SYSTEM-ASSISTED ACTIVITIES OF A DIGITAL MAILROOM MAIL TRANSPORT WORKFLOW Mailroom staff receive intake, unbundle, bulk sort (junk mail, periodicals, correspondence, priority, etc.) Central mail center - receives, processes and sorts mail 15 22 Receive, open, sort, categorize, execute digitization process, verify addressee and key reference IDs Mailroom staff certifies receipt, pre-routes bundles by location, transports, ships or re-mails to office (often long distance) Certify, route and deliver to office location 10 0 No action required, documents have been digitized and ingested and metadata, including addressee, that defines routing Office administrator receives, sorts, and fills employee in boxes, agent retrieves mail periodically at the risk of interruptions and dis- Inter-office sorting, distribute to inbox, and 15 0 tractions collecting by employee Loan agent is notified via email or other digital channel (text or in-system message etc.) that package awaits his or her review Agent makes 5 copies for: supervisor, underwriter, compliance manager, records management, a working copy and files each Photocopy and file loan application packages 45 0 Application is accessible by all relevant parties with varying levels of access rights to all or part of the application package Review application package, verify sources, assess Agent reviews and verifies application, determines issues to resolve accepts ownership of application processing 60 15 issue and determine actions Configurable views into documents accelerate review efficiency, and offer potential for automation, quality control and governance Agent starts new docket, creates various file folders, fills out process tracking forms Open new loan docket and set up organizational tools 18 5 Agent opens new loan processing project or workspace in system Fill out processing forms, and distribute packages to Agent defines routing and workflow, prepares request forms and sends packages to relevant workflow actors 45 5 multiple parties Workflow automation configuration defines actors and distributes e-notifications prompting recipients to action Agent executes complex review and approval workflow comprised of 5 participants: agent, agent’s supervisor, underwriter, compliance Execute parallel, multi-party review and approval 600 150 manager, and records administrator cycle System-facilitated review and approval workflows with collaboration tools and status-based access controls SUBTOTAL (minutes) 808 197 LABOR COSTS (dollars) PHYSICAL DIGITAL DIFFERENCE BASED ON PORTION OF WORK COMPLETED BY EACH ACTOR Mailroom Staff (physical) $8.33 $0.00 $20 per hour fully-burdened rate Mailroom Staff (digital) $0.00 $11.00 $30 per hour fully-burdened rate Office Administrative Staff $6.25 $0.00 $25 per hour fully-burdened rate Loan Processor Agent $238.00 $49.58 $35 per hour fully-burdened rate Loan Processing Supervisor $85.00 $21.25 $50 per hour fully-burdened rate Loan Underwriter $168.00 $42.00 $60 per hour fully-burdened rate Compliance Manager $45.00 $11.25 $45 per hour fully-burdened rate Records Management Administrator $15.00 $3.75 $30 per hour fully-burdened rate TOTAL LABOR COSTS $566.00 $139.00 GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 23
  • 24. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems How can digital mail processing of new loans save $11,918,750 in costs, add $20,555,556 in new loans and add $49,636,409 in incremental interest earnings? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved MATERIAL COSTS (dollars) PHYSICAL DIGITAL NOTES Mail transport, shipping, postage $15.00 $0.00 Blended cost of local or re-route containers, couriers & postage Photocopies $5.00 $0.00 250 copies @ $.02 each File storage overhead and maintenance $30.00 $0.00 $12K/yr. per 4-drawer file cabinet, assume 0.25% per app. package TOTAL MATERIAL COSTS $50.00 $0.00 ANNUAL VOLUMES AND COSTS Loan applications processed per year 25,000 ANNUAL COSTS ($) PHYSICAL DIGITAL NOTES Annual labor costs $14,139,583 $3,470,833 Fully-burdened labor costs Annual material costs $1,250,000 $0.00 Total material costs associated with process Annual rework costs $2,770,125 $312,375 Costs from errors and missed deadlines. 10% reworks physical, 5% reworks digital TOTAL ANNUAL COSTS $18,159,708 $3,783,208 PRODUCTIVITY DIVIDENDS: COST SAVINGS, INCREASED PRODUCTIVITY, INCREMENTAL REVENUE ANNUAL SAVINGS ($) SAVINGS PERCENT NOTES Total labor savings $10,668,750 75.45% Percent reduction in costs, physical vs. digital Total material cost savings $1,250,000 100.00% Percent reduction in costs, physical vs. digital TOTAL ANNUAL SAVINGS $11,918,750 CYCLE TIME (days) PHYSICAL DIGITAL NOTES Mail transport workflow 2.0 0.5 Linear workflow to distribute physical packages, per loan processed Service fulfillment workflow 7.0 4.5 Non-linear workflow - variable routing & alterations, per loan processed TOTAL DAYS PER LOAN 9.0 5.0 DAYS TO COMPLETE PROCESSING OF ONE LOAN Loan processing capacity 68.5 123.3 Number of loans that can be processed each day Annual loan processing capacity 25,000 45,000 Number of loans that can be processed per year NEW REVENUE GAINS ($) NEW WORK DAYS NEW REVENUE ELIMINATING CYCLE TIME BOTTLENECKS INCREASES CAPACITY, OFFERING POTENTIAL TO PROCESS MORE LOANS Increased # of loans closed 162 $20,555,556 Revenue generated at closing - assume 1 point (1%) for each average. $185K loan Increased # of earning days 162 $49,636,409 Interest on additional loans in place each extra day (using average. $185K loan at 6% IO, compounded) TOTAL NEW REVENUE $70,191,964 POTENTIAL NEW REVENUE BY LEVERAGING INCREASED CAPACITY INTANGIBLE GAINS Brand Reputation Reputation among wholesale loan broker market as fast-processing lender - reducing their sales cycles Brand Reputation Reputation for fewer errors and reworks - reducing brokers operating costs and headaches Fewer process failures Fewer deals lost from expired rate locks, perceptions of incompetence and lack of customer service GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 24
  • 25. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems What assumptions underlie the productivity dividends in new account establishment, emphasizing the benefits of digital mail processing? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved SETTING UP NEW COMPLEX ACCOUNTS ° Expanding daily processing capacity DESCRIPTIVE DATA MODEL from 113.6 account activations to 272.7 All commercial firms find and serve customers. The detail analytic model (SEE two following accounts activations. Digital mail processing addresses the often- pages) separates efficiency-based cost sloppy hand-off between “finding” a customer ° We assume that an all-digital workflow savings and revenue gains, calculating two and “serving” one. will enable a firm to convert 25 percent of different payback scenarios. its greater processing capacity (a total of The figure below depicts a net gain of six 128 days of productivity) into $30,989,583 The activity-based data of the models supports days of a firm with annual sales of $1B. of incremental sales. the claim that most enterprises can realize significant increases new revenue and lower The six-day cycle-time gain derives from the ° In accounting terms, this figure represents faster revenue recognition—the result costs from the efficiency gains of digital mail operational efficiencies of two workflows: of fewer days needed to activate a processing. • Mail transport workflow: faster “inputs” to all core business processes revenue-generating service or deliverable. Unlike many efficiency benchmarks that examine • Service fulfillment workflow: faster • “Getting it right the first time” enables a the contribution of workflow automation to a “resolution” of new account set-up workloads firm to recoup of $6,177,916 or 10 percent specific operation (such as SCM, CRM, etc.)— of all revenue from: where only a small number of users create and In a larger or smaller business, savings exchange certain types of information—the ° Resolution of new account activation and revenues would increase or decrease workflows with fewer errors, reworks, productivity dividend as described in this proportionally. “make goods”, and compensatory paper digital spreads to every aspect of the discounts or fee waivers. enterprise: sales, customer service, HR, legal, ANNUAL COST SAVINGS administration, factory floor, etc. Total cost savings in this model of $6,807,301 TWO WORKFLOWS PRODUCE PRODUCTIVITY DIVIDENDS FOR NEW ACCOUNT SET-UP represent less labor and lower material costs needed to set-up 25,000 new accounts: MANUAL MAIL PROCESSING MANUAL SERVICE FULFILLMENT: PROCESSING NEW ACCOUNT APPLICATIONS $5,939,688 or 79.8 percent reduction labor 2.0 Days 4.5 Days 10.0 Days and $867,614 or 67.1 percent reduction in DIGITAL MAIL PROCESSING DIGITAL SERVICE FULFILLMENT: NEW ACCOUNT PROCESSING materials. 0.5 Days 4.5 Days 6 Day Cycle-time Gain SOURCE OF INCREASED REVENUES Productivity assumptions and drivers Productivity dividends NEW ACCOUNT PROCESSING $5,939,688 Annual labor savings The payback model estimates potential revenues PHYSICAL / DIGITAL $867,614 Annual material savings from realizing 128 extra revenue-producing days Annual revenues $1,000,000,000 Daily account set-up processing capacity 113.6 272.7 $6,807,301 Total annual savings from two sources: Annual account set-up processing capacity 25,000 60,000 Extra revenue-producing 128 days • Greater daily capacity to convert new Percentage of new capacity used in days recouped revenue-generating projects 25% accounts into paying customers by reducing $123,958,333 Increased sales days cycle time and labor content needed to $24,791,667 Increased earning days $148,750,000 Potential new revenue activate a new billing cycle: Productivity_Dividend_Digital_Mail_Account.1.2 © 2009 GISTICS All rights reserved. GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 25
  • 26. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems How can digital mail-processing reduce cycle time for new account establishments? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved Use-case payback scenario: New account specialist receives account application and first order - including service order form, credit application, customer info forms and copies of relevant permits and licenses - completes account setup and submits order for fulfillment. LABOR TASKS LABOR / MINUTES NOTES SUBORDINATE ACTIVITIES PHYSICAL DIGITAL DESCRIPTION OF ACTIVITIES: ITALICS INDICATES SYSTEM-ASSISTED ACTIVITIES OF A DIGITAL MAILROOM Mailroom staff receive intake, unbundle, bulk sort (junk mail, periodicals, correspondence, priority, etc.) Central mail center - receives, processes and sorts mail 15 22 Receive, open, sort, categorize, execute digitization process, verify addressee & key reference IDs Mailroom staff certifies receipt, pre-routes bundles by location, transports, ships or re-mails to office (often long distance) Certify, route and deliver to office location 10 0 No action required, documents have been digitized and ingested and metadata, including addressee, that defines routing Office administrator receives, sorts, and fills employee in-boxes, specialist retrieves mail periodically at the risk of interruptions and Inter-office sorting, distribute to inbox, and 15 0 distractions collecting by employee New account specialist is notified via email or other digital channel (text or in-system message etc.) that package awaits his or her review Specialist makes four copies for: supervisor, credit line manager, records management, a working copy and files each Receive package, make copies, and create new account file 45 0 Application is accessible by all relevant parties with varying levels of access rights to all or part of the application package Review application package, verify sources, assess Specialist reviews and verifies application, determines issues to resolve accepts ownership of application processing 60 15 issue and determine actions Configurable views into documents accelerate review efficiency, and offer potential for automation, quality control and governance Specialist starts new docket, creates various file folders, fills out process tracking forms Open new loan docket and set up organizational tools 18 5 Agent opens new application processing project or workspace in system Fill out processing forms, and distribute packages to Specialist defines routing and workflow, prepares request forms and sends packages to relevant workflow actors 45 5 multiple parties Workflow automation configuration defines actors and distributes e-notifications prompting recipients to action Specialist executes review and approval workflow comprised of three participants: specialist, new accounts supervisor, credit line man- Execute review cycle and send services agreement to ager, and records administrator, then sends services agreement to new customer 120 25 new customer System-facilitated review and approval workflows with collaboration tools and status-based access controls, and automated generation of outbound electronic or paper mail Specialist reviews agreement, secures approval from the new accounts supervisor recovers original order form from file and sends over Receive completed services agreement, review approve 60 10 order for fulfillment and place order System-facilitated final approval automatically invokes order processing SUBTOTAL (minutes) 388 82 LABOR COSTS (dollars) PHYSICAL DIGITAL DIFFERENCE BASED ON PORTION OF WORK COMPLETED BY DIFFERENT STAFF Mailroom Staff (physical) $8.33 $0.00 $20 per hour fully-burdened rate Mailroom Staff (digital) $0.00 $11.00 $30 per hour fully-burdened rate Office Administrative Staff $6.25 $0.00 $25 per hour fully-burdened rate New Accounts Specialist $202.95 $33.71 $45 per hour fully-burdened rate New Accounts Supervisor $40.80 $7.93 $80 per hour fully-burdened rate Credit Line Manager $32.40 $6.30 $60 per hour fully-burdened rate Records Management Administrator $7.20 $1.40 $30 per hour fully-burdened rate TOTAL LABOR COSTS $298.00 $60.00 GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 26
  • 27. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems How can digital mail-processing of new account establishments save $6,807,301 in costs and add $148,750,000 in potential new revenues? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved MATERIAL COSTS (dollars) PHYSICAL DIGITAL NOTES Mail transport, shipping, postage $15.00 $0.00 Blended cost of local or re-route containers, couriers & postage Photocopies $6.75 $0.00 45 copies @ $.15 fully-burdened cost each File storage overhead & maintenance $30.00 $0.00 $12K/year to maintain 4-drawer file cabinet, assume 400 account files per cabinet Digital infrastructure overhead $17.05 Assume 75,000/year total, 1% assigned to this specific use case TOTAL MATERIAL COSTS $51.75 $17.05 ANNUAL VOLUMES AND COSTS New account applications per year 25,000 ANNUAL COSTS ($) PHYSICAL DIGITAL NOTES Annual labor costs $7,448,333 $1,508,646 Fully-burdened labor costs Annual material costs $1,293,750 $426,136 Total material costs associated with process, digital side is burdened cost of infrastructure Annual rework costs $2,360,363 $174,130 Costs from errors and missed deadlines. 15% reworks physical, 5% reworks digital TOTAL ANNUAL COSTS $11,102,446 $2,108,913 PRODUCTIVITY DIVIDENDS: COST SAVINGS, INCREASED PRODUCTIVITY, INCREMENTAL REVENUE ANNUAL SAVINGS ($) SAVINGS PERCENT NOTES Total labor savings $5,939,688 79.75% Percent reduction in costs, physical vs. digital Total material cost savings $867,614 67.06% Percent reduction in costs, physical vs. digital TOTAL ANNUAL SAVINGS $6,807,301 CYCLE TIME (days) PHYSICAL DIGITAL NOTES Mail transport workflow 2.0 0.5 Linear workflow to distribute physical packages, per account processed Service fulfillment workflow 10.0 4.5 Non-linear workflow - variable routing and alterations, per account processed TOTAL DAYS PER ACCOUNT 12.0 5.0 DAYS TO COMPLETE ONE NEW ACCOUNT SETUP Account setup capacity 113.6 272.7 Number of new accounts that can be processed each day Annual account setup capacity 25,000 60,000 Number of new accounts that can be processed per year ELIMINATING CYCLE TIME BOTTLENECKS INCREASES CAPACITY, OFFERING POTENTIAL TO NEW REVENUE GAINS ($) NEW WORK DAYS NEW REVENUE PROCESS MORE LOANS Increased # of sales or earning days 128 $123,958,333 Additional revenue from increased capacity - assumes 25% utilization of new capacity Increased # of earning days 128 $24,791,667 Reduction in lost sales from clumsy account setup order-processing, recoup 10% of sales TOTAL NEW REVENUE $148,750,000 POTENTIAL NEW REVENUE BY LEVERAGING INCREASED CAPACITY INTANGIBLE GAINS Brand Reputation Reputation among customers for fast-processing new accounts - competent service Brand Reputation Reputation for fewer errors and reworks - reducing customer’s operating costs and/or headaches GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 27
  • 28. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems What assumptions underlie the productivity dividends of the faster, more accurate processing of account payables, benefits deriving from digital mail processing? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved ACCOUNTS PAYABLES AP PROCESS ASSUMPTIONS of paper-based workflows enables the firm to realize only half or 7.5 percent of all payables. All organizations buy goods and services from Our payback model assumes a firm with $1B An all-digital AP workflow increases both a network of suppliers and service providers. in annual revenues, $300 million in resulting productivity and transparency: we assume This entails receiving and processing invoices annual payables, and 200,000 invoice that the firm can realize the remaining and other forms of demand for payment. workflows per year from a base of 3,000 early payment discounts and, with greater vendors, using 14 full-time clerks and one Industry benchmarks indicated that 45 percent confidence and transparency, negotiate new supervisor. of all invoices correspond to pre-established discount terms for another 15 per of total purchase orders in the accounting system of Using industry benchmarks, we assume that payments. the buying firm. The remaining 55 percent of an AP clerk can process 1,200 invoices per payment demands do not have pre-established month using paper-based invoices and a modern PRODUCTIVITY DIVENDEND purchase orders (also known as “non-PO accounting or ERP application. In an all-digital Annual labor savings represent doing more invoices”), entailing more work and a greater workflow, the processing capacity expands to with fewer people Material savings derive from: likelihood of errors, duplicate payments, and 3,000 invoices per month. 1) early payment discounts, 2) reduction of fraud. fraudulent payment, 3) elimination of interest We also assume that 15 percent of the current- The account payables (AP) function of the state account payables offer a 2.5 percent early payment and recovery fees associated with firm: payment discount—which due to the inefficiency duplicate payments. • Receives incoming invoices with PRODUCTIVITY GROWS BY 80 PERCENT AND ANNUAL COSTS FALL BY $10 MILLION approximately 15 percent in digital form—PDF or XML datastream—and the remaining 85 MANUAL MAIL PROCESSING MANUAL SERVICE FULFILLMENT: PROCESSING NEW INVOICES percent in paper form. 3.0 Days 4.5 Days 4.0 Days • Confirms the validity of the invoice or DIGITAL MAIL PROCESSING DIGITAL SERVICE FULFILLMENT: PROCESSING NEW INVOICES demand for payment, matching four to 14 1.0 Days 2.0 Days 4 Day Cycle-Time Gain business facts of the invoice to the terms of Productivity assumptions and drivers Productivity dividends the purchase order or internal requisition or communication. INVOICE PROCESSING PHYSICAL / DIGITAL $5,001,467 Annual labor savings Invoice processing capacity—daily 909.1 1590.9 $5,614,545 Annual material savings • Posts a cleared payment of the invoice to the $10,616,012 Total annual savings Invoice processing capacity—yearly 200,000 350,000 accounting system. Total annual payables $300,000,000 126 days Extra revenue-producing Digital mail processing addresses the inherent days recouped Number of vendors: 3,000 inefficiency of processing paper-based $1,125,000 Savings from early payment of invoices invoices, speeding the delivery of digitized $49,636,409 Duplicate payments - versions of invoices to AP staffers. interest costs $375,000 Duplicate payments - cost recovery Productivity_Dividend_Digital_Mail_Invoice.1.1 © 2009 GISTICS All rights reserved. $1,153,125 Potential new revenue GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 28
  • 29. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems How can digital mail-processing slash cycle times in accounts payable processing? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved Use-case payback scenario: Accounts payable worker receives invoices and executes validation and payment workflows. LABOR TASKS LABOR / MINUTES NOTES SUBORDINATE ACTIVITIES PHYSICAL DIGITAL DESCRIPTION OF ACTIVITIES: ITALICS INDICATES SYSTEM-ASSISTED ACTIVITIES OF A DIGITAL MAILROOM Mailroom staff receive intake, unbundle, bulk sort (junk mail, periodicals, correspondence, priority etc.) Central mail center - receives, processes and sorts mail 1.5 2.0 Receive, open, sort, categorize, execute digitization process, verify addressee and key reference IDs Mailroom staff certifies receipt, pre-routes bundles by location, transports, ships or re-mails to office (often long distance) Certify, route and deliver to office location 1.0 0.0 No action required, documents have been digitized and ingested and metadata, including addressee, that defines routing Office administrator receives, sorts, and fills employee in-boxes, AP worker retrieves mail periodically - at the risk of interruptions and Inter-office sorting, distribute to inbox, and 1.5 0.0 distractions collecting by employee AP worker is notified via email or other digital channel (text or in-system message etc.) that package awaits his or her review AP worker locates vendor file or creates new one and makes 4 copies for: supervisor, procurement manage, records manager, and Receive invoice package 4.5 0.0 working copy, and files each Invoice package is accessible by all relevant parties with varying levels of access rights to all or part of the application package AP worker checks for PO match in multiple locations defined by operational areas or purchase type, 40% have no PO whatsoever Check if matched to PO 2.2 1.2 Like invoices, POs are also found in the system - simplifying and accelerating review efficiency, with potential for automation, quality control and governance AP worker contacts POs owner for approval, or when no PO issues execute search to identify who ordered and who approved purchase Identify proper PO owner / approver 12.0 1.4 Agent opens PO in system and auto-messages owner for payment approval The number of non-PO’d purchases will decrease dramatically from requirement to post to system to gain approvals AP worker executes review and approval workflow comprised of 3 participants: AP worker, procurement manager, PO/purchase approver, records manager, primarily through email and attachments transfer Secure approval 13.0 3.1 System-facilitated review and approval workflows with collaboration tools and status-based access controls—consistent notifica- tion processes, doc version control etc. AP worker completes approval paperwork to update file, then makes 4 copies for: supervisor, procurement manage, records manager, and Update approved status 3.5 0.0 working copy and files each None. Approval status is always maintained in the system by definition. AP worker collected up all required info from file and execute payment online Execute payment 6.0 1.3 One button processing - message sent to payment processor or group SUBTOTAL (minutes) 45 9 LABOR COSTS (dollars) PHYSICAL DIGITAL DIFFERENCE BASED ON PORTION OF WORK COMPLETED BY DIFFERENT STAFF Mailroom Staff (physical) $0.83 $0.00 $20 per hour fully-burdened rate Mailroom Staff (digital) $0.00 $1.00 $30 per hour fully-burdened rate Office Administrative Staff $0.63 $0.00 $25 per hour fully-burdened rate AP Worker $23.13 $3.63 $45 per hour fully-burdened rate AP Supervisor $2.60 $0.62 $80 per hour fully-burdened rate Procurement Manager $3.51 $0.84 $60 per hour fully-burdened rate Records Management Administrator $0.52 $0.12 $30 per hour fully-burdened rate TOTAL LABOR COSTS $31.00 $6.00 GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 29
  • 30. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems How can digital mail-processing of account payables save $10,002,376 in processing costs and $1,153,125 in ancillary gains from fewer mistakes and overpayments? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved MATERIAL COSTS (dollars) PHYSICAL DIGITAL NOTES Mail transport, shipping, postage $5.00 $0.00 Blended cost of local or re-route containers, couriers & postage Photocopies $3.30 $0.00 22 copies @ $.15 fully-burdened cost each File storage overhead and maintenance $30.00 $0.00 $12K/year to maintain 4-drawer file cabinet, assume 400 account files per cabinet Digital infrastructure overhead $0.00 $13.30 Assume 75,000/year total, 1% assigned to this specific use case TOTAL MATERIAL COSTS $38.30 $13.30 ANNUAL VOLUMES AND COSTS New invoices processed per year 200,000 ANNUAL COSTS ($) PHYSICAL DIGITAL NOTES Annual labor costs $6,244,333 $1,242,867 Fully-burdened labor costs Annual material costs $7,660,000 $2,045,455 Total material costs associated with process, digital side is burdened cost of infrastructure Annual rework costs $3,754,170 $351,176 Costs from errors and missed deadlines. 15% reworks physical, 5% reworks digital TOTAL ANNUAL COSTS $17,658,503 $4,253,134 PRODUCTIVITY DIVIDENDS: COST SAVINGS, INCREASED PRODUCTIVITY, INCREMENTAL REVENUE ANNUAL SAVINGS ($) SAVINGS PERCENT NOTES Total labor savings $5,001,467 80.10% Percent reduction in costs, physical vs. digital Total material cost savings $5,000,909 65.29% Percent reduction in costs, physical vs. digital TOTAL ANNUAL SAVINGS $10,002,376 CYCLE TIME (days) PHYSICAL DIGITAL NOTES Mail transport workflow 3.0 1.8 Linear workflow to distribute physical packages, per account processed Service fulfillment workflow 4.5 2.1 Non-linear workflow - variable routing & alterations, per account processed TOTAL DAYS PER INVOICE 7.5 3.9 DAYS TO COMPLETE ONE WHOLE INVOICE PAYMENT CYCLE Annual working days required 220 114 Number of work days required to process the existing volume of invoices Annual invoice processing capacity 200,000 384,615 Number of new accounts that can be processed per year ADDITIONAL COST SAVINGS SAVINGS NOTES Savings for early payment $1,125,000 Increase in payment discounts from on time payments, assume 2.5% terms, 15% of invoices Duplicate payments - Interest cost $28,125 Borrow $ to cover cash flow, .5% dupe payments, 4.5 mo. average term @ 5% interest only Duplicate payments - cost recovery $375,000 Outsource collections on dupe payments, vendor takes 25% TOTAL ANCILLARY GAINS $1,153,125 INTANGIBLE GAINS Brand Reputation Reputation among vendors for fast-processing invoices Brand Reputation Results in closer relationships with vendors - more favorable terms and more accommodation in other aspects of doing business Brand Reputation Reputation for fewer errors and reworks - reducing everyone's operating costs and headaches Brand Reputation Reputation for fewer errors and reworks—reducing everyone’s operating costs and headaches GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 30
  • 31. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems What assumptions underlie the productivity dividends of the faster, more accurate service fulfillment cycles in a public institution, emphasizing the benefits of digital mail processing? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved SERVICE CYCLES AND REVENUES permits and the collection of additional sales • Daily processing capacity expands from taxes. 1363.6 permits per day or 300,000 per year Public institutions deliver a diverse and to 2933.1 permits per day or 642,857 per complex set of services to the citizens and ANNUAL COST SAVINGS year. businesses under their jurisdiction. Total cost savings in this model of $28,330,455 Increased productivity in issue permits Digital mail processing can deliver substantial represent less labor and lower material costs represents a potential of $215 million in increase in productivity throughout a state needed to issue 300,000 seller’s permits: ancillary gains, and comprise of the following: or federal agency, department, bureau, or $24,255,000 or 72 percent reduction labor administrative office—any group that now •$4,666,667 in incremental permit fees and $4,075,455 or 95 percent reduction in from faster processing of permit applications receives in-bound mail, initiates an internal materials. workflow, and communicates or delivers its already in the queue—thus a one-time gain. result to internal or external parties. SOURCE OF INCREASED REVENUES • $210,000,000 in incremental sales tax receipts, a result of issuing 35 percent fewer Seller’s permits enable their holders to buy The payback model estimates potential seller permits to individuals or business that products at wholesale prices and avoid the revenues from realizing 103 extra revenue- do not qualify as a reseller—a recurring payment of retail sales taxes. producing days from a greater daily capacity annual gain. to issue seller’s permits: Consequently, many individuals or businesses with no intent to resell the goods purchased will nonetheless seek seller’s permits as a way of defrauding government of sales taxes. PUBLIC INSTITUTIONS BENEFIT IN FOUR WAYS FROM DIGITAL MAIL PROCESSING MANUAL MAIL PROCESSING MANUAL SERVICE FULFILLMENT: PROCESSING NEW SELLER’S PERMIT APPLICATIONS The six-day cycle-time gain derives from the 4.5 7.0 Days Days 8.0 Days operational efficiencies of two workflows: • Mail transport workflow: faster “inputs” to DIGITAL MAIL DIGITAL SERVICE FULFILLMENT: PROCESSING PROCESSING NEW PERMITS all core business processes 3.0 Days 5.0 Days 7 Day Cycle-time Gain • Service fulfillment workflow: faster Productivity assumptions and drivers Productivity dividends issuance of seller’s permits NEW ACCOUNT PROCESSING $24,255,000 Annual labor savings The figure to the right depicts a net gain Daily permit applications PHYSICAL / DIGITAL $4,075,455 Annual material savings of seven days of a public institution and, processing capacity 1363.6 2922.1 $28,330,455 Total annual savings in particular, the office that issues 300,000 Annual permit applications processing capacity 300,000 642,857 103 days Extra revenue-producing seller’s permit to businesses and individuals Average sales tax revenue per year $15,000,000,000 days recouped per year. Using a permit fee of $10 each, this $4,666,667 Increased fee generation institution will earn $4.7 million in additional $210,000,000 Revenues recovered $7,687,500 Faster collections and fees. Moreover, greater workflow accuracy early payment discounts leads to the issuance of fewer fraudulent $214,666,667 Ancillary gains Productivity_Dividend_Digital_Mail_AP.1.3 © 2009 GISTICS All rights reserved. GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 31
  • 32. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems How can digital mail-processing reduce cycle time in the fulfillment of citizens’ requests for information or service by public institutions? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved Use-case payback scenario: State tax office receives seller’s permit application, directs to local field office, where it’s processed, permit issued, and recorded by central state tax office. LABOR TASKS LABOR / MINUTES NOTES SUBORDINATE ACTIVITIES PHYSICAL DIGITAL DESCRIPTION OF ACTIVITIES: ITALICS INDICATES SYSTEM-ASSISTED ACTIVITIES OF A DIGITAL MAILROOM State government mail center - receives, processes and State mail center staff receive intake, unbundle, bulk sort (by agency, general correspondence, priority etc.) 3.0 4.4 sorts mail Receive, open, sort, categorize, execute digitization process, verify addressee & key reference IDs State mail center operations certifies receipt, pre-routes bundles by location, transports, ships or re-mails to office (often long distance) Route and deliver to central tax agency offices 2.0 0.0 No action required, documents have been digitized and ingested with metadata, including addressee, that defines routing Central office receiving staff inspects application, flags for delivery to regional office in daily bulk transport Inspect, route and deliver to regional office 3.0 0.6 Automated routing suggested based on applicant’s location, quick staff confirmation and instantaneous digital routing to regional office Regional office administrator receives, sorts, and fills employee in-boxes, seller’s permit clerk retrieves mail periodically - at the Inter-office sorting, distribute to inbox, and collect by 3.0 0.0 risk of interruptions and distractions employee No action required, digitized documents are routed directly to seller’s permit clerks Clerk reviews application package for completeness and accuracy, any gaps denoted in file for hardcopy letter or telephone follow-ups Check application for completeness and accuracy 6.0 2.0 Clerk’s review results are accessible across work teams allowing processing flexibility among staff and avoiding bottlenecks from individual clerk performance or availability Clerk verifies business applicant’s standing with other government agencies (corp. or LLP/LLC status, county business name registration Check applicant’s legal status for dependencies and holds 3.0 1.0 etc.) - sometimes via fax & phone Verification, if not completely electronic, is facilitated by joint access to digital application by other agencies and offices Clerk submits application to immediate supervisor for approval via inter-office mail, requiring additional copies Acquire supervisor’s approval 6.0 1.0 Clerk flags application for approval and system automatically routes it to supervisor (or any available approver) for quick review and approval Clerk issues permit, completes request for physical certificate printing and delivery to applicant, records at local regional office and reports Issue perm invoke delivery to applicant and report 8.0 1.6 issuance to central office - multiple redundant data entry events (paper-based and online) issuance to central office System automatically routes request to certificate production upon clerk’s issuance of permit Central office recording staff receives issuance notification, copies and/or attachments, files and records Central office records permit issuance 7.0 0.0 No action required; documents in system are inherently preserve however may become exposed to the central office only after when permits issued based on workflow-triggered business rules SUBTOTAL (minutes) 41 11 LABOR COSTS (dollars) PHYSICAL DIGITAL DIFFERENCE BASED ON PORTION OF WORK COMPLETED BY DIFFERENT STAFF Mail Center Staff (physical) $5.50 $0.00 $22 per hour fully-burdened rate including government-level benefits Mail Center Staff (digital) $0.00 $12.10 $33 per hour fully-burdened rate including government-level benefits Central Office Receiving Staff $6.88 $1.38 $27.50 per hour fully-burdened rate including government-level benefits Regional Office Administrative Staff $6.88 $0.00 $27.50 per hour fully-burdened rate including government-level benefits Seller’s Permit Clerk $73.79 $17.97 $38.50 per hour fully-burdened rate including government-level benefits Central Office Records Management $19.25 $0.00 $33 per hour fully-burdened rate including government-level benefits TOTAL LABOR COSTS $112.00 $31.00 GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 32
  • 33. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems How can digital mail-processing in public institutions save $28,330,455 in processing costs, $4,666,667 in incremental revenues, and $210,000,000 in overall economic impact? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved MATERIAL COSTS (dollars) PHYSICAL DIGITAL NOTES Mail transport, shipping, postage $4.00 $0.00 Blended cost of bulk transport to regional offices Photocopies and forms $3.60 $0.00 15 copies @ $.15 fully-burdened cost each + 6 multi-part duplicate forms at $.05 each File storage overhead and maintenance $6.67 $0.00 $12K/yr. to maintain 4-drawer file cabinet, assume 1800 permits per cabinet Digital infrastructure overhead $0.00 $0.68 Assume 75,000/yr total, .025% assigned to this specific use case TOTAL MATERIAL COSTS $14.27 $0.68 ANNUAL VOLUMES AND COSTS Seller’s permits issued per year 300,000 ANNUAL COSTS ($) PHYSICAL DIGITAL NOTES Annual labor costs $33,687,500 $9,432,500 Fully-burdened labor costs Annual material costs $4,280,000 $204,545 Total material costs associated with process, digital side is burdened cost of infrastructure Annual rework costs $10,251,225 $520,400 Costs from errors and missed deadlines. 15% reworks physical, 3% reworks digital TOTAL ANNUAL COSTS $48,218,725 $10,157,446 PRODUCTIVITY DIVIDENDS: COST SAVINGS, INCREASED PRODUCTIVITY, INCREMENTAL REVENUE ANNUAL SAVINGS ($) SAVINGS PERCENT NOTES Total labor savings $24,255,000 72.00% Percent reduction in costs, physical vs. digital Total material cost savings $4,075,455 95.22% Percent reduction in costs, physical vs. digital TOTAL ANNUAL SAVINGS $28,330,455 CYCLE TIME (days) PHYSICAL DIGITAL NOTES Mail transport workflow 7.0 3.0 Linear workflow to distribute physical packages, per permit processed Service fulfillment workflow 8.0 5.0 Non-linear workflow - variable routing & alterations, per permit processed TOTAL DAYS PER PERMIT 15.0 8.0 DAYS TO COMPLETE ONE DAYS TO COMPLETE ONE SELLER’S PERMIT ISSUANCE CYCLE Permit processing capacity 1363.6 2922.1 Number of permits that can be processed each day Annual permit processing capacity 300,000 642,857 Number of permits that can be processed per year Annual working days required 220 117 Number of work days required to process the existing volume of permits ADDITIONAL GAINS SAVINGS NOTES Additional permitting fees $4,666,667 Greater capacity to process permits generates more fees, assume 1M permits/yr., $10/permit * Tax revenue recovery $210,000,000 20% of inaccurate permitting avoided, assume 4% errors $15B sales tax revenue/yr. Accounts payable efficiencies $7,687,500 SEE EARLY PAYMENT, INTEREST SAVINGS, AND COLLECTIONS COST GAINS TOTAL ANCILLARY GAINS $214,666,667 INTANGIBLE GAINS Economic Stimulus Macroeconomic: any reduction of government delays to business, especially small business, carries a profound economic benefit GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 33
  • 34. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems Section 5 Enterprise Content Processing Infrastructure PAGE ESSENTIAL QUESTIONS ADDRESSED 35 What IT elements enable digital mail processing and the production of customer engagement packages? 36 How can digital mail processing support transformational applications? GISTICS | EXECUT IVE W HITE PA P ER | Digit al Mailroom s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 34
  • 35. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems What IT elements enable digital mail processing and the production of customer engagement packages? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved ENTERPRISE APPLICATIONS AND SERVICES The figure also depicts that digital mail Internal-only packages dynamically link to processing can deliver four different types of enterprise applications and enterprise content All modern firms use enterprise applications customer engagement packages to seven services. to operate; most large firms also deployed common types of users. enterprise content management (ECM) or Suitably configured ECM systems and several of its components. The figure below Customer engagement packages consist customer portals enable access to vetted depicts the major components of ECM, of policy-controlled collections of public-versions of customer engagement emphasizing those components that enable communications and transactional content. packages for customers, subcontractors, or digital mail processing. trade partner. C O N T E N T W O R K E R S : D I G I TA L M A I L Account managers Teleservice representatives Credit or loan Order processing and Account receivables or Risk or compliance Regional or processing agents provisioning agents payables staff managers department heads C U S T O M E R E N G A G E M E N T PA C K A G E S Loan and mortgage packages New account establishment packages Trade accounts-payable packages Service fulfillment packages C O N T E N T A P P L I CAT I O N S Marketing portals Enterprise publishing Video publishing Information portals Video publishing Digital mail processing Communities and • Collateral store • Catalogs • Corporate videos • gent broker portal A • Corporate videos • Orders social media • Content expert profiles • Documentation • Product demos • Branch network portal • Product demos • Service requests • Catalogs • Presentations • Editorial publishing • Training and • Independent financial • Training and • New accounts • Documentation • Marketing collateral support advisors portal support • Product demos • Marketing campaigns • Webcasts • Procurement portal • Trader broker network • Claims portal • Tax returns ENTERPRISE CONTENT MANAGEMENT (ECM) Web content Media asset Document Metadata Transactional content Business process Records Email archive Collaboration management management management management processing management management management management • HTML, XML • Animations • Compound • Business • Business forms • Business rules • Business records • Addresses •Discussions • Production • Audios / documents objects • Correspondence • Process • Communications • Attachments • Instant support podcasts • resentations P • Data-entity • Digital Credit files monitoring and • Scanned • Contacts and messaging • Rich media • Images / • Spreadsheets relationships reporting images of vCards • Postings and • Faxes • Stylesheets photos • Static items • Document • Workflow paper, film, or • Emails ratings properties • Handwritten notes routing transparencies • Video (PDF, TIFF) • Surveys • Invoices E N T E R P R I S E A P P L I CAT I O N S Transaction processing applications: Analytic Applications: Systems and networks Transformational Applications: Systems ICT Infrastructure: Information, communi- Systems that automate the basic repetitive that promote analysis, interpretation, and and networks that change the prevailing cations, and telecommunications technolo- transactions of the enterprise sharing of information or knowledge business model of the enterprise gies and managerial expertise to enable effective delivery and use of ICT services GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 35
  • 36. ECM | Business case for speeding the time to satisfy customer requests for information and service fulfillment with digital mail processing systems How can digital mail processing support transformational applications? DigitalMailrooms.2.5 ©2009 GISTICS Incorporated, All rights reserved STRATEGY MAP HIGHLIGHTS INNOVATION PROCESSES BENEFITS OF DIGITAL MAIL PROCESSING FUND FULL DEPLOYMENT OF ECM AND SUPPORT GAME-CHANGING INNOVATIONS Bringing game-changing innovations to market often entails considerable risk and opportunities for considerable reward. Increased Shareholder Value Now more than ever, agile ICT infrastructure and applications must support the rapid, problem-free launch of new product Financial configurations and novel business concepts. Productivity Brand Growth Strategy Strategy Strategy ECM and content applications described in this paper play an evermore critical role in driving innovations to market. IMPROVE COST STRUCURE INCREASE ASSET UTILIZATION BUILD REVENUE FROM NEW PRODUCTS AND BUILD REVENUE FROM EXISTING PRODUCTS BUILD REPUTATION • Institutional • Spendings • Greater output CUSTOMERS AND CUSTOMERS citizenship The figure on the right depicts a strategy map that calls attention • Payroll • Waste or • Inventory turns • Workforce • Acquisitions • Product launches • Order volumes • Share of wallet • Thought leadership • Social programs to a relatively new class of applications—transformational reworks planning • Market making • Cross-selling • Corporate culture applications—that change the game. Customer Value Proposition Customer It seems that each quarter or month brings new wave of Price Quality Selection Availability Functionality Personalized Partnership Brand innovations, making it impossible to predict which new application Interaction or service will disrupt the status quo of markets and customer PRODUCT/SERVICE ATTRIBUTES RELATIONSHIP VOICE requirements. However, it remains certain that the pace of Operations Management Customer Management Innovation and Regulatory and innovation will continue to accelerate, bringing change, disruption, Internal Process Process Solutioneering Process Social Process and opportunity for the agile. • Supply • Selection • Opportunity discovery • Environment • Production • Acquisition • Design/development • Safety and health Digital mail processing clearly adds value to internal processes • Logistics • Risk management • Retention • Growth • Launch/Market-making • Customization • Employment • Community of operations management, customer management, and regulatory compliance, speeding the flow of mail and concurrent ORGANIZATION CAPITAL: Leadership, Teamwork, Culture multi-party collaboration around customer engagement objects. People and Culture HUMAN CAPITAL: Skills, Knowledge, Values StrategyMap.D13 ©2009 GISTICS.All rights reserved. Each enterprise of particular industries will have its own opportunities to drive game-changing innovations—transformational INFORMATION CAPITAL: Systems, Databases, Networks applications—to market. Transaction Technology Analytic Transformational Processing Infrastructure Applications Applications Applications And success will in part result from the firm’s information capital Systems that Systems and networks Systems and networks The shared technology and its internal capability to develop and launch new applications. automate the basic that promote analysis, that change the and managerial repetitive transactions interpretation, and prevailing business expertise required to of the enterprise. sharing of information model of the enterprise. enable effective delivery Digital mail processing capability not only mends a missing or knowledge. Source: Strategy Maps–Converting Intangible Assets into Tangible Outcomes by and use of Information Capital applications. link in the customer value chain; deployment also supports the Robert S. Kaplan and David P. Norton, Harvard Business School Press, 2004 deployment of a full ECM capability—that in turn will support the The strategy map above depicts the central role that transformational applications can play in driving success of mission-critical, game-changing transformational growth. applications. GISTICS | EXECUTIVE W HITE PA P ER | Digit al Mailroo m s : F i x i n g Yo u r We a ke s t Li n k i n t h e C u s t o m e r Va l u e C h a i n 36
  • 37. Thought-Leadership White Papers mapped to DAM Maturities DAM LEVEL 1 DAM LEVEL 2 DAM LEVEL 3 DAM LEVEL 4 DAM LEVEL 5    Marcom Image Portals LESSER Enterprise Marketing Content Portals SCORE AND DEPTH OF DAM SERVICES Global Media Service Portals Integrated DAM-enabled Production Platforms Integrated Media or Marcom Factories GREATER Executive White Paper Executive White Paper Executive White Paper Executive White Paper Executive White Paper Making the Business Case for Business Case for Digital Supply-Chain Pan-Regional Marketing Business Case for Marketing Content On-demand DAM and Strategies for Productivity Dividends Digital Asset Repositories in the Media Services in Marketing from Outsourced Management Enterprise Global Marketing and Packaging Assets Collateral Operations Strategies and business metrics for managing the product Operations How global brand-marketing communication groups maximize their productivity with workflow automation, digital asset How to redirect savings from outsourced pan-regional collateral operations to additional media placements and campaigns within existing operational budgets launch, supporting field sales, and enabling self-service management, and real-time collaboration tools Strategies and business metrics for estimating the economic benefits Impact of outsourcing the online management of marketing access to multichannel marketing materials Business case for the full-service pan-regional collateral factory of digital asset management and related technologies content and reusable media components on the productivity • Simple pay-for-page localization Business case for reduced time-to-market of multichannel, multi-format • Managed operations and systematized best practices of marketing, sales, and corporate communications • Instant automated collateral-artwork production and retailer modifications How a centralized repository and related digital media services reduce marketing artwork, and packaging content in automotive, consumer packaged goods, How to use analysis of activity-task automation • Online workflow and approval platform the cost and speed time to market of brand identify elements, selling food and beverages, and life sciences • Online progress monitoring, reporting, and process quality controls. to calculate time to breakeven Business metrics, automation benchmarks, and total cost of ownership models for • Real-time workflow data interfaces to enterprise IT systems. images, and marketing collateral automating the global delivery of marketing materials, presentations, videos and TECHNICAL CAPABILITIES INCLUDE: sales training to creative teams, field staff and partners • Visibility of all projects and campaigns across the • Branded web sites and extranets Industry emphasis: • organization Centralized assets that increase utilization rates • Real-time collaboration, annotation, and mark-ups • Global enterprises • Streamlined routing and approval of source • Full color management, matching, and OPERATIONAL OPERATIONAL OPERATIONAL SPENDINGS SPENDINGS artwork files and finalized content proofing SPENDINGS • Life sciences and pharmaceuticals DOWNLOAD DOWNLOAD DOWNLOAD DOWNLOAD STRATEGIC STRATEGIC STRATEGIC • Standardization platform for digital assets, and global • Review of RIP files for printing verification, SPENDINGS SPENDINGS SPENDINGS • Media, entertainment, and publishing brand identities tracking, and reporting • Detailed project tracking and reporting • Management of video, audio, podcasts, • Retail and consumer products • Web-based collateral management and fulfillment 3D content and graphic files • Regulatory compliance and audit trails Current Spend Greater Operational Efficiencies Future Spend 34 pages 24 pages 32 pages 32 pages 80 pages Executive White Paper Executive White Paper Executive White Paper Executive White Paper Business Case for Business Case for Executive White Paper Digital Supply-Chain Strategies for Dynamic Imaging Impact of Strategies for Maximizing On-Demand Delivery of Enterprise Collaboration Enterprise Content in the Digital Asset Management Pan-Regional Enterprise on Productivity of Market Coverage and in Global Marketing Intangible Assets How digital asset management (DAM) maximizes productivity of workflow automation and creative collaboration, fortifying the Sales from Integrated Operations weakest link in the enterprise content lifecycle Strategies and tactics for accelerating the time to market for promotional images, online advertising, and visual knowledge assets Business case for speeding acquisitions and divestitures, value-chain innovations, enhanced customer value, and strategic sourcing of indirect Economic analyses of reduced time-to-market for multichannel, multi-format content, using New-Product Launch Platforms production best practices of smart content factories for broadcast,marketing operations, Impact of Automating the Management and International Distribution of spend with enterprise collaboration platforms military intelligence, and publishing. How dynamic imaging and related workflow automation technologies Approved Marketing Content, Reusable Media Components, and Digital Assets address the shortcomings of content management, enterprise resource planning, supply chain management, on Multichannel Product Launches, Field Sales Productivity, ROI payback model for business metrics, process automation benchmarks, and service-delivery Business case for a center of excellence in customer relationship management, and eCommerce and Brand-Voice Consistency requirements for coordinating the work of subject matter experts throughout the enterprise and among trusted partners of supply chains, distribution networks, and customer organizations international marketing communications ROI payback models, business metrics, process automation benchmarks, and outsourcing-service Outsourcing-service requirements for reducing the cost to localize, produce, requirements for reducing the cost and time to market throughout the marketing communications value chain DOWNLOAD DOWNLOAD and fulfill marketing brochures, direct mail, trade DOWNLOAD DOWNLOAD DOWNLOAD promotions, point-of-purchase materials, and multimedia content 34 pages 40 pages 40 pages 36 pages 46 pages ................... ................... .............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 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