You’ve made a significant investment in your ECM solution but adoption isn’t where you’d like it to be. What’s the big deal anyways? What exactly are the costs of not solving this issue?
1 Billion dollars
This is where I back up and explain that it clearly differs across organizations and is dependent on size etc. But when you total up the costs of supporting shadow IT, fines for non-compliance, lost business due to an inability to find the right information at the right time, and brand damage from leaked non-essential information, the figures start piling up.
Think of it this way. Imagine spending millions on a highly secure, hi-tech safe but opting to hide your cash under the mattress, in a shoebox in the closet, and otherwise lying about. It shouldn’t come as much of a surprise when some of that money happens to disappear over time.
Information is money and organizations are stuffing it in random nooks and crannies. Cumbersome ECM tools are driving more and more workers into the arms of consumer-based solutions. In the United States alone, shadow IT is costing companies an average of $35 million per firm/per year and this is expected to grow another 20% this year.
Scattered repositories are making information discovery a challenge. Incomplete or unretrievable data leads to poor business decisions that have a direct effect on the bottom line. Costs continue to mount as organizations struggle to find relevant information in their data haystack. It’s not just finding the right information to make business decisions, eDiscovery costs as a result of legal actions come in at a cost of $18,000 for every reviewed gigabyte and those are wasted dollars if the company is still unable to locate the required information.
Information stored outside of secure, managed repositories are exposed and vulnerable. Data breaches are costing Fortune 500 companies hundreds of millions of dollars in immediate damages, legal fees and regulatory fines. Secondary costs for corporate victims, banks and insurers have been known to escalate to more than 10 times the original loss.
Information that should have been destroyed is being leaked to the public and causing untold damage to the brand. Sony’s leaked emails and internal memos that could have been legally disposed of are instead being made into tabloid fodder.
These issues are all mitigated when adoption of the ECM goes up and data gets secured. It’s information governance making essential information easy to find while non-essential data is defensibly disposed. You’ve got a digital safe, actually using it ensures you’re not bleeding money.