Study finding is first output of Ricoh's new Document Process Imperative
Ongoing research to detail best document-related practices
MISSISSAUGA, ON, June 12, 2012 /CNW/ - Ineffective document-based
processes, a "blind spot" for businesses, have directly triggered
serious incidents at three out of four organizations in the past five
years, according to a new IDC white paper commissioned by Ricoh Company, Ltd. The white paper is the first product of Ricoh's new Document Process
Document process failures have caused severe consequences: 36 percent of
responding companies failed to meet compliance requirements, 30 percent
lost key employees, and 25 percent lost major customers. Other
consequences include major IT security breaches, getting pulled into a
major audit, suffering a PR crisis and being sued.
The good news: addressing failures proactively can head off substantial
financial harm. IDC estimates that the overall cost of process failure
(in terms of staff time and executive oversight for activities such as
required rework and process reviews, as well as opportunity costs
associated with lost customers) is at least 10 times the direct out-of-pocket costs (such as paying financial settlements).
"What many [business executives] may not appreciate is the degree to
which document-driven business processes affect their organization's
risk profile: there is a high risk of breakdowns in these processes
causing severely negative business outcomes, and the costs of these
breakdowns are worse than many executives think," states IDC in the
Ricoh-commissioned report, "It's Worse than You Think: Poor Document
Processes Lead to Significant Business Risk".1 "Although most invest significant resources to reduce low-probability/high-impact risk events, high-probability/high impact risks introduced by broken document processes are lurking
dangerously below the corporate radar and merit C-level attention."
The Ricoh Document Process Imperative is an ongoing initiative to help
businesses understand the risks, opportunities and best practices
around the documents that drive their critical business processes.
The findings are based on a global survey of over 1,516 business process
owners and iWorkers from large and medium-sized organizations,
supplemented by focus groups. Respondents were randomly recruited and
screened from international panels and came from eight countries: the
United States, Canada, the United Kingdom, France, Germany, Australia,
China and Japan. Document-driven business processes were defined as
processes that are governed and controlled by information captured in
documents, whether paper or electronic.
Document process inefficiencies and ineffectiveness afflict all
industries, geographies and company sizes, according to IDC. Serious
business and compliance incidents have occurred at roughly equal rates
in organizations in North America, Europe, and Asia, the data showed,
with the highest rates (79 percent) in Asia.
More than one in three respondents reported personal knowledge of
inefficient or ineffective document-driven processes. And though
between 31 and 39 percent of document processes are paper-based, the
research found that paper isn't necessarily a risk factor in itself.
"Having effective processes depends on the underlying workflows," the
report states. "The medium is not necessarily the problem."
Proposals for improving document processes sometimes fail because they
don't make it onto the agenda of C-level executives, the research
found. That's an important threshold because document processes span
multiple teams, departments and organizations. Many subordinates don't
have the scope of responsibility to architect and execute the
broad-based changes required. "Truly effecting change requires C-level
attention," the report states.
Ricoh is keenly aware of these risks and, as a leader in providing
Managed Document Services ("MDS"), is uniquely equipped to assist its
customers. Sergio Kato, Deputy General Manager, Global Marketing
Group/Services Business Center observes: "Through our Managed Document Services (MDS) approach, we work to understand how information flows through an
organization and how business processes, especially people-driven ones,
affect that flow," he said. "Improved processes can not only help drive
efficiency and productivity, but can be engineered to help address risk
factors at every stage."
About the Document Process Imperative
Ricoh's Document Process Imperative is an on-going initiative to promote
understanding of new document processing paradigms that help
enterprises leverage the collective wisdom embodied in their
organizations. This initiative will fund research and provide
resources, like those found on this site, which combine Ricoh's document process expertise with that of industry
visionaries, our partners and our customers.
| About Ricoh |
Ricoh is a global technology company specializing in office imaging
equipment, production print solutions, document management systems and
IT services. Headquartered in Tokyo, Ricoh Group operates in more than
200 countries and regions. In the financial year ending March 2012,
Ricoh Group had worldwide sales of 1,903 billion yen (approx. 23
The majority of the company's revenue comes from products, solutions and
services that improve the interaction between people and information.
Ricoh also produces award-winning digital cameras and specialized
industrial products. It is known for the quality of its technology, the
exceptional standard of its customer service and sustainability
Under its corporate tagline, imagine. change. Ricoh helps companies transform the way they work and harness the
collective imagination of their employees.
© 2012 Ricoh Company, Ltd. All rights reserved. All referenced product
names are the trademarks of their respective companies.
1 IDC White Paper sponsored by Ricoh, "It's Worse than You Think: Poor
Document Processes Lead to Significant Business Risk," doc #6352, June
SOURCE Ricoh Canada Inc.
For further information:
Ricoh Canada Inc.
Ricoh Co., Ltd.