ecm grand slam: using process optimization, compliance, and risk reduction to achieve organizational...

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

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

and copy of presentation

www.aiim.org/training

• 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. Bit and Atoms

2. Moving to the mainstream.

3. Moving to the desktop.

4. Shakespeare was right.

5. 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. Bit and Atoms





• 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

Source: InfoTech Research Group

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 ofblockbuster acquisitions.

PC Docs Red Dot

Hummingbird

Magellen

Gauss

IXOS Artesia

CoreChange Eloquent

PSSoftware VistaPlus(Quest)

Open Text

eRoom TruArc

Box Car Bulldog

Ask Once(Xerox)

Documentum

OTG

Legato

SWT ActionPoint

Captiva RSA Security

VM Ware

EMC

eGrail Yaletown

Saros Watermark

Greenbar Shana

FileNet Venetica

Tarian Aptrix

GreenPasture

CrossAccess

Ascential Trigo Technologies

Alphablox

IBM

1. Bit and Atoms





• 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, process-centric ECM

– Power shifting to users

1. Bit and Atoms





• 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 USERSImprove efficiencyReduce costsIncreased profits and better performance

CUSTOMER-DRIVEN USERSBetter customer serviceLeadership and competitive advantageFaster turnaround/Improved response

RISK-DRIVEN USERSComplianceRisk 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

How does your organization view e-mail archiving?

Ind employee responsibility

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?

My organization takes its RM obligations seriously.


My organization’s RM directives are consistently enforced.

• 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. Bit and Atoms





• 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.

34%

ECM projects are a subset of our BPM initiative.

25%

BPM and ECM are separate initiatives that occasionally intersect.

38%

There is no connection. 3%

“I fully understand this term.”

69%

84%93%

47% 50%

67%

49%

BPM ECM Workflow Bus ProcAn

EAI Bus ProcRe-eng

DPO

Enterprise ECM only, N=140

Enterprise ECM and Move to BPM…

For BPM slice, Enterprise ECM only, N=140

3 15 29 19 31

Enterprise ECM and Move to BPM…

14 17 27 14 28

Nothing Nothing, 6 monthsDepartmental TransitionalEnterprise

For BPM slice, Enterprise ECM only, N=140

3 15 29 19 31

Payback Period for ECM and BPM Initiatives…

Those with enterprise perspective only

11 36 18 36ECM

Payback Period for ECM and BPM Initiatives…

27 46 8 19

less than 1 year one to three yearsthree to five years not important

Those with enterprise perspective only

11 36 18 36ECM

BPM

Enterprise ECM only, N=140

Likely to consider a BPM solution?

6359

4560

6714

1835

5347

3520

4245

Cust serv

Back office

Order entry

Comp mgmt

Legal doc

Mfging and fulfil

Supply chain

Sales & Mkting

HR

General admin

Risk Mgmt

R&D

Cust comm

Vendor comm

• Think differently about ECM

High electronic records competency of IT staff (those responding 7, 8, 9, 10 on 10 pt scale)

AIIM State of Industry survey

# of organizations viewing themselves as effective = 3.8X more in strategic sample

High electronic records competency of executive management (those responding 7, 8, 9, 10 on 10 pt scale)



High IT competency of RM staff (those responding 7, 8, 9, 10 on 10 pt scale)



Confidence in electronic information (% “confident” or better)



PUBLIC SECTOR: How does the effectiveness of your organization compare to your peers? (% “more effective” or “much more effective”)



PRIVATE SECTOR: How does the profitability of your company compare to your peers? (% “more profitable” or “much more profitable”)



• 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 controlsand copy of presentation

ecm grand slam: using process optimization, compliance, and risk reduction to achieve organizational...

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ecm segment

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industry segment

principles of free enterprise

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consolidation factor

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