Published on 27-Apr-2012
"We are looking at a three-year ROI of USD2 million to- USD4 million with the IBM ECM solution. But as for the value it has brought to the company in terms of transforming the way we do business, the worth is beyond any estimate " - Richard Daley, Director of Records and Information Management, Tejon Ranch
Construction / Architecture / Engineering
Enterprise Content Management, Information Lifecycle Governance (ILG), Smarter Analytics, Smarter Analytics - Manage risk & fraud
With nearly 270,000 acres, Tejon Ranch (Tejon) is the largest continuous expanse of private land in California. Its 422 square miles make it almost as large as Los Angeles and about 40 percent the size of Rhode Island. Tejon is committed to preserve 90 percent of its land in its natural state, but it is also a diversified public company (NYSE:TRC) with a business history dating back 150 years.
Tejon employed a manual, paper-based records management system to comply with regulations. Its many businesses operated as separate, siloed entities, and employees used paper-based systems for their work processes.
Tejon deployed IBM Enterprise Records integrated with Iron Mountain Accutrac to streamline records management and IBM FileNet® Content Manager to enable employees to have seamless access to the content they need.
Projected USD2 to USD4 million return on investment over three years. Single solution for end-users to manage records regardless of format. Ensures compliance objectives are met.
Overdevelopment and suburbanization have overtaken much of Southern California, but 60 miles north of Los Angeles and 25 miles south of Bakersfield, all that stops at the borders of Tejon Ranch.
With nearly 270,000 acres, Tejon Ranch (Tejon) is the largest continuous expanse of private land in California. Its 422 square miles make it almost as large as Los Angeles and about 40 percent the size of Rhode Island. Tejon is committed to preserve 90 percent of its land in its natural state, but it is also a diversified public company (NYSE:TRC) with a business history dating back 150 years. Major company projects include Tejon Industrial Complex, a 1,450-acre commercial/industrial park; Tejon Mountain Village, a resort community of 26,400 acres; and Centennial, a 12,000-acre planned city with 23,000 housing units.
Tejon also sells rights for mining, oil and gas extraction, grazing and filming as well as rights of way to power and telecommunications companies. Home to elk, deer, antelope and other wildlife, Tejon even offers a hunting program. This is development, but it is planned and sustainable.
Complying with regulations
Here as elsewhere, business is conducted using contracts. A contract and its associated documents comprise a case file that follows the business transaction until the deal is closed. When the deal is closed, the documents must be retained or disposed of in accordance with the regulations that apply to the business. As a public company, Tejon has to comply with Sarbanes-Oxley and HIPAA and is subject to audits by the U.S. Securities and Exchange Commission.
Until a few years ago, however, Tejon had only a manual, paper-based records management system to enable the company to comply with regulations. Its numerous businesses operated as separate, siloed entities. In many cases, employees used paper for their work processes. Paper-based content was stored in boxes, folders and notebooks.
Realizing that it needed an electronic records management solution to manage the diverse and dispersed records that existed in various formats, the company hired Richard Daley to be the director of its first records and information management program.
The company used Iron Mountain to archive its physical files. “That meant we had to implement an electronic information lifecycle governance solution for digitized content and integrate physical and digital records management so that both could be managed together,” says Daley.
Daley also had a broad vision of what Tejon needed to move it away from paper-based systems and to be able to provide digitized content to employees whenever they needed it in the correct format. “We wanted to make the case management function a holistic process that would connect all the departments to the content they needed to enable them to serve their customers efficiently,” he says. “We decided to implement an enterprise content management system to streamline business processes that were based on paper and turn them into centrally managed electronic files.”
Minimizing risk and cost
At the core of its challenges, Tejon needed to enhance its work processes in order to manage workflow among its employees and systems for content and case-based strategies. With its siloed work processes, one employee frequently did not know what another employee was doing on a particular case. The company deployed a business process management (BPM) solution using IBM FileNet Business Process Manager to ensure that a case would not be dependent on a single employee. The solution enables multiple employees to work together on a case with access to all the information they need at any point in the process. Daley and his team streamlined the process and created workflows that move cases quickly through the system.
To minimize risk and cost, Daley and his team deployed a unified solution to manage policy and classification for electronic and physical records by using IBM Enterprise Records integrated with Iron Mountain Accutrac, a records management solution for physical records. This gives users a standardized way to work, ensuring Tejon meets its obligations for record keeping and minimizing the users’ workloads.
Digitized content unifies dispersed workforce
Only 152 employees work on the ranch, while approximately 5,000 consultants and other groups manage much of the operations from the outside. Employees would have to put transactions on hold until a document had the necessary signatures, either because a paper document needed physical transport or digitized content was not accessible outside a certain workgroup.
Tejon implemented IBM FileNet Content Manager as a foundation for the management of digitized content so that employees could have seamless access to the content that comprises their files.
“ECM is providing a future in all kinds of document management, records management and scanning technology, and IBM is at the forefront of that,” Daley concludes. “That makes me excited to be an IBM customer.”
Mobile application for the farm and the boardroom
Bringing electronic records and content management to every remote corner of Tejon’s enterprise is the result of a close four-year relationship between Tejon and its IBM sales team. “I’m working with the same collaborative team at IBM that I’ve had since day one,” says Daley. “The partnership, collaboration and creativity IBM has to offer are there in its relationship with us. We’re not a big business by any means, yet IBM treats us the same way it does its big customers—and we’re paying very competitive prices.”
Today, Tejon is doing three times as much with its systems as it did previously and yet it has added only two staff members to its IT team. “IBM has enabled us to grow very sustainable with their solutions,” says Daley.
IBM Business Partners have also played a large role in helping the process evolve. enChoice worked with Daley’s team to implement its KwikWork for IBM FileNet P8 product, which provides workflow automation and process reporting capabilities to enhance productivity. Iron Mountain worked with Tejon to integrate its records management solution for physical records with IBM Enterprise Records. SpatiaX Infosystems has added a geographical information system to the solution.
Another IBM Business Partner, Evolution Business Group, helped Tejon develop a mobile application that enables iPad users to retrieve content from the FileNet system. With so much land to traverse, Tejon employees need a mobile solution when they are at construction sites or on the farm or in the board room. Human resources, for example, can retrieve personnel records when they are talking to employees onsite.
Up to USD4 million projected savings in three years
Tejon is following the IBM roadmap in enterprise content management right to the cutting edge. IBM Datacap Taskmaster Capture data extraction technology is helping the company convert unstructured and physical data into actionable insights in seconds. With IBM Advanced Case Management, Tejon is going to use business rules, advanced analytics, collaboration and social software to optimize outcomes and work smarter. “We’re going to be using Advanced Case Management to maneuver contracts through the office and make sure insurance certificates are updated,” says Daley.
For every IBM ECM product that Tejon has deployed, IT administrators have taken courses from IBM Education Services. “IBM’s classes have been instrumental in enabling us to roll out and use the products that have made this solution so successful,” says Daley.
Daley’s ultimate goal with the ECM initiative is to build it out to the 5,000 remote consultants that Tejon works with on a daily basis and its vendors. “We’ll be using it as a collaborative tool, sharing access to the information we have in our content repository.”
By reducing travel, paper and shipping costs, Tejon projects substantial a substantial ROI. “We are looking at a three-year ROI of USD2 million to USD4 million with the IBM ECM solution,” says Daley. “But as for the value it has brought to the company in terms of transforming the way we do business, that’s beyond calculation.”
For more information
For more information on enChoice, visit: www.enchoice.com
For more information on Iron Mountain, visit: www.ironmountain.com
For more information on Evolution Business Group, visit: www.evolutionbg.com
For more information on SpatiaX Infosystems, visit: www.spatiax.com
For more information on Tejon Ranch, visit: www.tejonranch.com
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