Three Steps to Choosing a Document Management Vendor

Steve Comer, Credit Union Industry Manager, Hyland Softwareby: Steve Comer, Credit Union Industry Manager, Hyland Software

Dusty file rooms, overstuffed filing cabinets and boxes full of documents. You already know this affects member service, and not in a good way. That’s why you’ve built a strong business case for a new document management strategy. Now, it’s time to make sure you choose the right vendor. Because they’re not all the same. By going through these three key steps, you’ll set yourself up for success and put information at your employees’ finger tips.

Step #1: Do Your Homework
The first thing to do is identify your biggest needs. Look at areas that will impact your organization and provide a quick return on investment. Many of our more than 4,600 financial services customers find that streamlining the lending and deposit processes are great places to start, but it might be different for you.

Now you’re ready to create a shortlist of vendors. Take a look at vendor-neutral document management thought leaders for help. I recommend AIIM.org. It provides free, valuable information through webinars, research reports and surveys. Tapping into analyst research firms such as Gartner, Forrester Research and Cornerstone Advisors will also help narrow your list.

Even with the (sometimes) high quality of information that can be found on the Internet, the best place to gather information is your peers. By soliciting recommendations from fellow institutions and talking to end-users, you’ll get a good perspective on how a system will function in a real-world scenario. Look at the client lists on vendors’ websites and call a few organizations similar to yours. They’ll tell you their thoughts and experiences and give you an insider’s view into how they use their document management solution.

Step #2: Review Your Vendors
With a shortlist created, it’s time to research each vendor and its products. Be specific on your requests for proposals/information and scrutinize the answers. Ask for a demonstration that isn’t just a generic show and tell. A strong vendor will show you your organization’s process and will even use your own documents, if you prefer.

The key to this stage is to ask questions. Asking vendors if they can do something isn’t enough. Ask them how they do it and why they do it that way. It’s a great way to figure out which solutions really have the functionality you need out-of-the-box and which will need customization. It will also give you a better feel for a total cost of ownership, not just the initial cost.

When evaluating document management or enterprise content management (ECM) solutions from a product capabilities standpoint, there are several important questions to consider:

  • How well does the product’s functionality match your specific business requirements?
  • What is the expected return on investment?
  • What are the costs required to implement and use the solution?
  • How easy is it for employees to learn and use?

These questions aren’t all-encompassing, but the answers will offer a clear picture of a product’s capabilities and how well it will meet your needs. The right solution will have the ability to expand beyond your immediate needs and become an enterprise standard. For example, if you’re looking at a system for new account opening, it should also have the ability to add value to other departments like deposits, lending, accounts payable, human resources and more. If it can’t scale to meet the needs of the entire organization, it could become a one-off solution in a single department that can’t communicate with the other core technologies you use every day.

Step #3: Choose the Best Fit
The last thing to do is to scrutinize the vendor itself. The reality is that every software implementation is going to face challenges. What matters is how many can you prevent, how serious they are and how you and your vendor deal with them. That’s why you want a true partner – a company that will be there with you for the long-term. Document management is an important investment, and you’ll need guidance from the vendor before your institution can take over complete ownership.

Look for a vendor that has extensive expertise in financial services processes so they’ll know best practices that will give your solution the most value. But be wary of vendors who push services too hard –they’re expensive and difficult to maintain in the long-run.

Again, keep in mind how the solution will grow and evolve with you. It should be easily configurable and designed for change, so it meets your needs right now and over the next five to 10 years. Choosing a long-term vendor also means that it’s a financially stable company that devotes a substantial amount of time to its product. Consistent upgrade schedules are a key identifier of how focused a vendor is on research and development.

With these three key research areas covered, you’ve figured out which type of document management solution fits your needs best, analyzed each product and scrutinized the vendors. You’re armed with the right knowledge to make a smart choice. All that’s left is the decision.

Steve Comer, Credit Union Industry Manager, Hyland Software
Developed by Hyland Software, Inc., OnBase® document management solution meets the unique service and regulatory needs of more than 550 credit unions. OnBase allows credit unions to instantly access documents by integrating with core systems to reduce costs and increase processing times while safeguarding member information.  In 2011, Hyland Software was recognized again as a Leader in the Gartner Magic Quadrant and was honored as the CUES Suppler of the Year for its contributions and achievements in the credit union industry. www.hyland.com

Steve Comer

Steve Comer

Steve Comer, Director of the Financial Services industry at Hyland Software. For the past 13+ years, Steve has been dedicated to helping the financial services industry transform their business through ... Web: www.hyland.com Details