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News Release

Ricoh-sponsored study: three of four organizations suffer
serious problems from broken document processes

Study finding is first output of Ricoh's new Document Process Imperative;
Ongoing research to detail best document-related practices for business

TOKYO, June 12, 2012 — 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 Imperative initiative.

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.”

  • 1IDC White Paper sponsored by Ricoh, “It's Worse than You Think: Poor Document Processes Lead to Significant Business Risk,” doc #6352, June 2012

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 first 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.

Related Subject Business