Transcript ECM Grand Slam: Using Process Optimization, Compliance

ECM Grand Slam:
Using Process Optimization,
Compliance, and Risk Reduction to
Achieve Organizational Transformation
John Mancini
President, AIIM
• Or…
– Five Key Trends Shaping the ECM
Industry
• Two statisticians were traveling next to me last on the trip
from Dulles to LAX.
• About 10 minutes into the flight, the pilot announced that
they had lost an engine, but don't worry, there are three
left. However, instead of 5 hours it would take 10 hours to
get to LAX.
• A little later, he announced that a second engine failed,
and they still had two left, but it would take 12 hours to get
to LAX.
• Somewhat later, the pilot again came on the intercom and
announced that a third engine had died. Never fear, he
announced, because the plane could fly on a single
engine. However, it would now take 20 hours to get to
LAX.
• At this point, one statistician turned to the other and said,
"Gee, I hope we don't lose that last engine, or we'll be up
here forever!"
• AIIM: The leading industry association
representing professionals working in
Enterprise Content Management
(ECM).
– Market Education
– Peer Networking
– Industry Advocacy
– Professional Development
www.aiim.org/training
The only roadmap for competency in
Electronic Records Management (ERM) and Enterprise Content
Management (ECM)
Give me your card for a free course -module 6 -- access controls
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• AIIM End User Survey Results
• Survey information can be found at
www.aiim.org/industrywatch
• Get e-mail updates at my blog at
www.aiim.typepad.com
• The groundhog is like most other
prophets; it delivers its prediction and
then disappears.
• Bill Vaughan
1.
2.
3.
4.
5.
Bit and Atoms
Moving to the mainstream.
Moving to the desktop.
Shakespeare was right.
Think big. Think differently.
• For a list of all the ways technology has
failed to improve the quality of life,
please press three.
• Alice Kahn
During the next five years, how important do you expect these
trends to be in terms of impact on the profitability of your
company?
Source: McKinsey Quarterly, Global Survey of Business Executives, March 2006
1.
2.
3.
4.
5.
Bit and Atoms
Moving to the mainstream.
Moving to the desktop.
Shakespeare was right.
Think big. Think differently.
• In accordance with our principles of
free enterprise and healthy competition,
I'm going to ask you two to fight to the
death for it.
• Monty Python
The Next Wave
•
•
•
•
•
•
•
•
•
•
Product focus→Platform focus
Aggregating content→Leveraging content
Structured and limited→ad hoc and ubiquitous
Automating tasks→optimizing performance
Centralized content creation→Decentralized
Wired →Unwired
High cost per seat→Low cost per seat
Complex solutions →Portable solutions
Inflexible →Flexible
Transactions →Collaboration
4 stages of industry consolidation
• Opening
• Scale -- top 3 control 15% to 45%
• Focus -- top 3 control 35% to 70%; five to
twelve major players; “the period of
megadeals”
• Balance and alliance -- “the titans reign”;
alliances with peers
– “The Consolidation Curve”—Harvard Business
Review
ECM Software Market
ECM is now a Stage 3 industry
segment with a Consolidation Factor
of 1.2. The top three vendors control
over 60% of the market. Consolidation
occurred rapidly in the ECM segment
due to a series of
blockbuster acquisitions.
Source: InfoTech Research Group
Open Text
Hummingbird
PC Docs
Red Dot
Gauss
Magellen
IXOS
Artesia
CoreChange
Eloquent
PSSoftware
VistaPlus
(Quest)
EMC
Documentum
eRoom
TruArc
Box Car
Bulldog
Legato
OTG
Ask Once
(Xerox)
Captiva
SWT
Action
Point
VM Ware
RSA Security
IBM
FileNet
Venetica
eGrail
Yaletown
Saros
Watermark
Greenbar
Shana
Tarian
Aptrix
Green
Pasture
CrossAccess
Ascential
Trigo Technologies
Alphablox
1.
2.
3.
4.
5.
Bit and Atoms
Moving to the mainstream.
Moving to the desktop.
Shakespeare was right.
Think big. Think differently.
• If we don't change direction soon, we'll
end up where we're going.
• Professor Irwin Corey (1914 - )
• Two quick data points…
– 166,000
– Large pharmaceutical end user
The Rush to the Desktop
• Entry of core content services
• Expansion of enterprise contracts for the
traditional ECM players
• Impact of the rush to the desktop…
– Users must decide how ubiquitous core content
services will tie to mission critical, processcentric ECM
– Power shifting to users
1.
2.
3.
4.
5.
Bit and Atoms
Moving to the mainstream.
Moving to the desktop.
Shakespeare was right.
Think big. Think differently.
• If you laid all of the lawyers in the
world, end to end, on the equator ---- It
would be a good idea to just leave them
there.
• Unknown
COST-DRIVEN USERS
Improve efficiency
Reduce costs
Increased profits and
better performance
CUSTOMER-DRIVEN USERS
Better customer service
Leadership and competitive
advantage
Faster turnaround/Improved
response
RISK-DRIVEN USERS
Compliance
Risk management and
Business continuity
AIIM State of the Industry survey, N=1226
• Electronic Records Management
Does your organization have formal programs (in other words, specific
programs that include designated employees, policies, procedures, and
information technology) relative to ELECTRONIC information?
AIIM ERM Survey, large organizations only, N=466
Ind employee responsibility
How does your
organization
view e-mail
archiving?
Stand alone application
Part of overall IM strategy
Have not given it a thought
How does your
organization
view e-mail
archiving?
AIIM E-Mail Survey, large organizations only, N=582
Has an executive communicated
with you about RM in past 18
months?
Is there a statement about RM in
your standard employee
materials?
Does your organization regularly
deliver RM training?
AIIM E-Mail Survey, large organizations only, N=582
My organization takes its RM
obligations seriously.
My organization’s RM
directives are consistently
enforced.
AIIM E-Mail Survey, large organizations only, N=582
• E-discovery
• Federal Rules of Civil Procedure 26
and 34, which went into effect
December 1, 2006, use the term
“electronically stored information”
rather than the term “data compilation”
and identify it as a distinctive category
of information subject to discovery
obligations on par with “documents”
and “things.”
• Understanding e-Discovery (1):
– Requires a framework for early attention.
• Organizations not ready to address issues
when litigation or regulatory requests hit will
immediately be behind; significant early
disclosure.
• Understanding e-Discovery (2):
– Gives a safe harbor for routine data destruction
and information “not reasonably accessible.”
• There are no penalties for deleting electronically
stored information in keeping with routine operation of
IT systems if the party took reasonable steps to
preserve it.
• Organizations must have granular retention policies in
place, and technology to enforce those policies and
audit the enforcement as well.
• Understanding e-Discovery (3):
– Requires native file production.
• Organizations must be able to produce
electronically stored information in its native
format with its metadata intact and prove a valid
chain of custody.
If this isn’t complex enough…
• This is just for federal cases…
• Still unclear how this will pass to the
states…
– DIRECTLY -- By direct legislation
– INDIRECTLY -- through legislation tied to the
National Conference of Commissions of
Uniform State Laws
– OBLIQUELY -- in modified form
• The average worker sends or receives
56 e-mail messages per day
(Microsoft).
• If 20% of these messages have a 200K
attachment....
• RM and e-discovery and compliance
• Usual marketing approach…
– Buy our hardware/software/stuff or else “Go
to Jail, Go Directly to Jail. Your Organization
will not Pass GO.”
• Conflicting and inconsistent compliance
interests--privacy, government, security, legal-can’t be solved by continual and additive one-off
solutions
• Think about these as core processes, with costs
that will be reduced--or increased!--depending
on how you deal with your underlying content,
document, and records issues.
1.
2.
3.
4.
5.
Bit and Atoms
Moving to the mainstream.
Moving to the desktop.
Shakespeare was right.
Think big. Think differently.
• I get up every morning determined to
both change the world and have one
hell of a good time. Sometimes this
makes planning my day difficult.
• E. B. White (1899 - 1985)
• Think big about ECM
How does your organization think about
ECM and BPM?
BPM projects are a subset of our
ECM initiative.
ECM projects are a subset of our
BPM initiative.
BPM and ECM are separate
initiatives that occasionally intersect.
There is no connection.
34%
25%
38%
3%
“I fully understand this term.”
93%
84%
69%
67%
47%
BPM
ECM
Enterprise ECM only, N=140
Workflow Bus Proc
An
50%
EAI
49%
Bus Proc
Re-eng
DPO
Enterprise ECM and Move to BPM…
3 15
For BPM slice, Enterprise ECM only, N=140
29
19
31
Enterprise ECM and Move to BPM…
3 15
14
29
17
Nothing
Departmental
Enterprise
For BPM slice, Enterprise ECM only, N=140
19
27
31
14
28
Nothing, 6 months
Transitional
Payback Period for ECM and BPM
Initiatives…
ECM
11
Those with enterprise perspective only
36
18
36
Payback Period for ECM and BPM
Initiatives…
ECM
BPM
11
36
27
18
46
less than 1 year
three to five years
Those with enterprise perspective only
36
8
19
one to three years
not important
Likely to consider a BPM solution?
45
42
Vendor comm
Cust comm
20
R&D
35
Risk Mgmt
47
General admin
53
HR
35
Sales & Mkting
18
Supply chain
Mfging and fulfil
14
67
Legal doc
60
Comp mgmt
Order entry
Back office
Cust serv
Enterprise ECM only, N=140
45
59
63
• Think differently about ECM
High electronic records competency of IT staff
(those responding 7, 8, 9, 10 on 10 pt scale)
# of organizations viewing themselves as
effective = 3.8X more in strategic sample
AIIM State of Industry survey
High electronic records competency of executive
management (those responding 7, 8, 9, 10 on 10 pt
scale)
# of organizations viewing themselves as
effective = 4.0X more in strategic sample
AIIM State of Industry survey
High IT competency of RM staff
(those responding 7, 8, 9, 10 on 10 pt scale)
# of organizations viewing themselves as
effective = 2.2X more in strategic sample
AIIM State of Industry survey
Confidence in electronic information
(% “confident” or better)
# of organizations viewing themselves as
effective = 2.0X more in strategic sample
AIIM State of Industry survey
PUBLIC SECTOR: How does the effectiveness of your
organization compare to your peers? (% “more effective”
or “much more effective”)
# of organizations viewing themselves as
effective = 2.3X more in strategic sample
AIIM State of Industry survey
PRIVATE SECTOR: How does the profitability of your
company compare to your peers? (% “more profitable” or
“much more profitable”)
# of organizations viewing themselves as
effective = 1.5X more in strategic sample
AIIM State of Industry survey
• The Japanese eat very little fat and suffer fewer
heart attacks than the British or the Americans.
• On the other hand, the French eat a lot of fat and
also suffer fewer heart attacks than the British or
the Americans.
• The Japanese drink very little red wine and suffer
fewer heart attacks than the British or the
Americans.
• The Italians drink excessive amounts of red wine
and also suffer fewer heart attacks than the British
or the Americans.
• Conclusion: Eat and drink whatever you like. It's
speaking English that kills you.
• Survey information can be found at
www.aiim.org/industrywatch
• Get e-mail updates at my blog at
www.aiim.typepad.com
Give me your card for a free course -- access controls
and copy of presentation