Posted by nikkicostelloe 0 Comment(s) Add a Comment 
01/20/2012 06:06 AM
Unless you have been living in a cave or on a remote island with no contact with the outside world, you have been subjected to a steady stream of “cloud hype” over the past few years. Marketing messages to move your business applications to “the cloud” are as common as beer commercials.
These marketing campaigns promoting the migration of business applications away from traditional premises-based client/server applications to remotely hosted, browser-based applications have been very successful for many good reasons. However, they deceptively hide two essential truths from prospective buyers; 1) the cloud has latency (delays) that you, the customer, cannot ultimately control and, 2) “document management” is not the same thing as “data management” when it comes to cloud computing.
I am not anti-cloud computing. Personally, I use several cloud-based applications and there is one I use all the time for our business which is an email marketing application. This application is mostly “data-centric”, but I do upload photos and images to it and can observe the latency first-hand during the upload process. But, even during regular use when there is no uploading or downloading of images, this application exhibits obvious latency when I perform normal functions such as data entry and page views. Keep in mind that I use a Dell Vostro laptop with an i5 CPU and 4 GBs of RAM. Furthermore, our business leases a full T1 line from our ISP. There is a compelling article about the inherent latency of cloud computing by Robert Minnear. It is very detailed and well worth reading.
Now, be honest with yourself. How many of you experience latency delays while using your cloud-based business applications? Now, imagine how this problem can be magnified and exacerbated by the size of your “data” when your “data” are scanned page images.
Here are 2 reasons cloud computing is not ready for serious document management:
The larger the data, the greater the latency experience for the user: In spite of advancements in compression algorithms, documents such as PDFs, TIFFs and JPEGs are larger “data elements” to be managed and manipulated than simply typing text into data fields of your cloud application. The average size of one scanned page of text is 50 kilobytes. Thus, a 20 page document, sans fancy color images, etc., is about 1 megabyte in size. Add some graphical images and some color and the file size will balloon accordingly. If your job is very document-centric, such as mortgage loan processor or insurance agency customer representative, the latency experience of a cloud-based application will hurt your productivity and maybe your attitude!
Connection speeds to the cloud are FAR slower than a connection to a local server: If your firm is multi-location, you may be forced to use “the cloud” to enable distributed users to access your document management solution. But, for small single-location businesses, or firms that are focusing document management on one functional area (i.e. accounting or HR) where the highest concentration of daily users of document management are in the corporate office, then, you are better off implementing document management as a “premises-based” solution on your local area network (LAN). Why? Because your LAN delivers a connection to the document management server that is typically more than 500 times faster than your connection to a cloud-based document management solution. The math is simple and irrefutable: Your LAN uses GB connections (1,000 MBs) to your locally hosted servers from each workstation. Compare that speed with whatever connection service your business is leasing from your internet service provider. Many businesses have a single T1 line at 1.5 MBs or multiple T1s with up to 6 MBs of throughput symmetrically (upload speed is the same as download speed). Of increasing popularity is the Metro Ethernet (a.k.a . “Metro E”) which can deliver 10 MB of bandwidth and higher. The faster the service, the higher the cost per month. So, even if you lease a 10 MB Metro Ethernet connection from your ISP, uploading and downloading documents will still be 100 times slower than if your document management solution was on your LAN. Is this speed differential noticeable to your users? You bet it is.
If you have 10 people who process 50 documents per day in a 264 day work-year at an average pay of $25 per hour, the table below will demonstrate your financial loss due to cloud latency where people are waiting instead of working:
|
Latency Per Document |
Total Cost per Year |
|
5 seconds |
$4,583 |
|
6 seconds |
$5,500 |
|
7 seconds |
$6,416 |
|
8 seconds |
$7,333 |
Many business owners either don’t care or don’t pay attention to the “user experience”, but, the math on financial loss due to latency should get their attention.
In summary, small to mid-sized businesses who want to implement document management with localized concentrations of users will be better off with a local premises-based solution for the above reasons until the day when cloud connection speeds can rival LAN connection speeds at the same price point.
Ken Kingery / Mosaic Corp.
kkingery@mosaiccorp.com / 800 387-7859 / Atlanta 770 452-7373
Posted by jimkingery 0 Comment(s) Add a Comment
12/15/2011 09:16 AM
Getting the most from training and implementation efforts
Three elements adding to a “good experience” when implementing a paperless system are 1) work with an organization experienced in your segment, 2) take steps to assure your team understands the engagement process and 3) make proper assignments to assure maximum benefit from the training and implementation efforts.
Technology providers typically have experience in certain segment and a result, can offer you a defined engagement process. If they don’t, then you should ask. The engagement process itself should provide work process confirmations, timeline specifics for technical set up and for end user training. All three phases are important in a “Paperless Systems” implementation but, end user training will be vital for a successful outcome.
In "Accounting" environments for example, managing AP and AR records will be your likely goals. Prior to the transition, all back office staff should understand the new process "end to end". They should also know their individual roles and how best to contribute. They will appreciate the inclusion and you will see faster and more controlled adoption as the new process is rolled out.
All too often, Paperless Systems are “voted in” for implementation and too little attention is paid to preparation for roll out. Our recommendations are as follows:
Remember, the advantages of paperless operation compound over time. A coordinated effort in the early stages help “the benefits” arrive sooner and minimizes learning curve adjustments. Your vendor is committed for the period stated in the engagement process so take full advantage. If you allow that period to lapse without a plan to maximize, you may find yourself struggling for the wrong reasons.
James Kingery / Mosaic Corp.
jkingery@MosaicCorp.com / 800 387-7859 / Atlanta 770 452-7373
Posted by jimkingery 0 Comment(s) Add a Comment
12/14/2011 01:33 PM
For starters, going paperless is a good thing and any organization “over the hump” will tell you the same. The benefits of paperless operation are well documented and include the elimination of filing cabinets and offsite storage, reduction in supply expense, faster access to files and information, elimination of lost files, elimination of lost documents from within a file, reclaimed office space, secure Agent access to transaction files, compliant records and much more.
More elaborate advantages come in the form of workflow, standardized processes for your specific requirements, coverage strategies and virtual operation. So what problems will we face implementing a paperless solution? How can we assure a successful launch? What expectations should I set?
At face value, “going paperless” is all good news. But like anything worth having, it takes proper expectations and dedicated effort to see desired results. The best outcomes are from organizations with strong leadership. In our experience when confident leaders set expectations, announce the strategic direction and re-enforce positive behavior throughout the transition process - the possible results are achieved.
This also simplifies the overall engagement process and maximizes benefits realized from training efforts. Employees participate and collaborate on all levels as they adapt to faster and more productive processes. All boats rise with the tide as advantages present themselves on a day to day basis.
But it doesn’t always work this way. Often, the entire process is pushed off to a few individuals or a small workgroup. The small group in turn feels “saddled” with the responsibility and the collaborative process is replaced by an isolated effort. This impacts the rate of acceptance and slows what we refer to as “cultural adoption”.
As you engage the new process, think about team members. How long have they been doing things the same way? Do they appreciate technology or avoid it? Do they see process evolution as good them? Good for the company? Or are they resistant to new ways and unwillng to change?
Remember, the benefits of paperless operation compound over time so attitude and perspective in the early stages makes a big difference. In days 1-30, little or no information is in the system so it’s all new activity without the real benefits. There is a learning curve no matter how ‘intuitive” the process. In days 31-60, familiarity grows, routines are established and early benefits are now realized. In the third and fourth month, team members settle in and the processes becomes more reflexive. Information is in the system, searches yield results, due dates permit sorting and work prioritization, process advantages become evident. You are on your way!
So my recommendations are, do your homework, find the right solution and then Go For It! Set the expectation that teams collaborating on process and participating in training are successful faster than groups with selective involvement and limited participation. Knowing that it takes a few months for real benefits to emerge and that advantages will grow over time is a great way to begin the project.
James Kingery / Mosaic Corp. / jkingery@MosaicCorp.com
800 387-7859 Direct: 678 244-1704
01/20/2012 06:06 AM —
2 Reasons "The Cloud" Is Not Ready for Serious Document Management
12/15/2011 09:16 AM —
Going Paperless - The Engagement Process
12/14/2011 01:33 PM —
Going Paperless - Setting Expectations
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