M-Files is an intelligent document management system that automates workflows, secures your data, and organizes your documents based on what they are, not where they are stored. In August 2023, M-Files commissioned Forrester to determine the economic impact their software has on their customers. To better understand the benefits and costs of M-Files, Forrester conducted interviews and carefully researched the effect of the solution on customers.

In order to come up with concrete numbers, Forrester aggregated the interviewees’ experience and the companies’ data into a fictional composite organization with 800 employees and a revenue of $400 million each year. They then constructed a financial model that was representative of the interviews and risk-adjusted that financial model.

Forrester concluded that M-Files would achieve a 294% ROI and a $5.59 million NPV (net present value) over three years. Let’s break down those numbers a bit more.

Costs

First, a brief note about costs: Forrester estimated that the composite company would spend around $1.9 million on M-Files, including licensing, hosting, implementation, support, and internal management.

Quantifiable Benefits 

Forrester estimated that the organization would experience $7.5 million in benefits. If you subtract the costs from that number, it leaves us with $5.59 million. So where did Forrester get that number? Here are some of the quantifiable benefits that they found:

• $3.5 million through improved searching functionality: With its advanced searching capabilities and effective metadata use, M-Files cuts the search time for documents in half. This 50% reduction translates into $3.5 million saved.
• $1.9 million through faster filing: By largely automating metadata tagging and file naming, M-Files reduced document filing time by 65%. M-Files allows for seamless filing through Word and Outlook, also contributing to the time reduction.
• Over $750,000 through efficient workflows: M-Files has extensive automation capabilities, saving both time and money in all areas of your organization. In addition, strict version control means that employees can more easily collaborate.
• Over $600,000 through compliance and security: By helping the organization adhere to regulations, avoid data breaches, and restrict document access, M-Files saves time during an audit.
• Nearly $400,000 in revenue uplift: Through improved documentation of client agreements, M-Files helps the organization collect additional revenue.
• Nearly $350,000 by decommissioning legacy systems: M-Files can replace multiple business software solutions at once.

Qualitative Benefits 

The Forrester study does also cover some unquantified benefits of M-Files that are worth mentioning:

• M-Files improves the customer experience through user-friendly processes.
• M-Files enables effective and secure remote work.
• M-Files can save employees’ time and ensure standardized documentation through document templates.
• M-Files integrates smoothly with other software solutions such as CRM, ERP, a client portal, and Microsoft applications.