ECM Grand Slam: Using Process Optimization, Compliance, and Risk Reduction to Achieve Organizational Transformation

1. ECM Grand Slam: Using Process Optimization, Compliance, and Risk Reduction to Achieve Organizational Transformation John Mancini President, AIIM

2. Or… • Five Key Trends Shaping the ECM Industry

3. 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!"

4. AIIM: The leading industry association representing professionals working in Enterprise Content Management (ECM). • Market Education • Peer Networking • Industry Advocacy • Professional Development

5. 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 and copy of presentation

6. 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

7. The groundhog is like most other prophets; it delivers its prediction and then disappears. • Bill Vaughan

8. Bit and Atoms • Moving to the mainstream. • Moving to the desktop. • Shakespeare was right. • Think big. Think differently.

9. For a list of all the ways technology has failed to improve the quality of life, please press three. • Alice Kahn

10. 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

11. Bit and Atoms • Moving to the mainstream. • Moving to the desktop. • Shakespeare was right. • Think big. Think differently.

12. 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

13. 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

14. 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

15. 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

19. Bit and Atoms • Moving to the mainstream. • Moving to the desktop. • Shakespeare was right. • Think big. Think differently.

20. If we don't change direction soon, we'll end up where we're going. • Professor Irwin Corey (1914 - )

21. Two quick data points… • 166,000 • Large pharmaceutical end user

22. 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

23. Bit and Atoms • Moving to the mainstream. • Moving to the desktop. • Shakespeare was right. • Think big. Think differently.

24. 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

25. 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

26. AIIM State of the Industry survey, N=1226

27. Electronic Records Management

28. 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

29. 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?

30. How does your organization view e-mail archiving? AIIM E-Mail Survey, large organizations only, N=582

31. 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

32. My organization takes its RM obligations seriously. My organization’s RM directives are consistently enforced. AIIM E-Mail Survey, large organizations only, N=582

33. E-discovery

34. 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.”

35. 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.

36. 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.

37. 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.

38. 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

39. The average worker sends or receives 56 e-mail messages per day (Microsoft). • If 20% of these messages have a 200K attachment....

40. 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.

41. Bit and Atoms • Moving to the mainstream. • Moving to the desktop. • Shakespeare was right. • Think big. Think differently.

42. 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)

43. Think big about ECM

44. How does your organization think about ECM and BPM?

45. “I fully understand this term.” Enterprise ECM only, N=140

46. Enterprise ECM and Move to BPM… For BPM slice, Enterprise ECM only, N=140

47. Enterprise ECM and Move to BPM… For BPM slice, Enterprise ECM only, N=140

48. Payback Period for ECM and BPM Initiatives… ECM Those with enterprise perspective only

49. Payback Period for ECM and BPM Initiatives… ECM BPM Those with enterprise perspective only

50. Likely to consider a BPM solution? Enterprise ECM only, N=140