The challenge of capturing data in the modern world

In todays business environment there are massive amounts of data flying around in a huge variety of different formats, and a key issue for businesses is how to efficiently collect and use this data. There are several stimuli in the drive towards better data capture which include; an increasingly regulated business environment, the associated rising costs of record storage as businesses must keep certain information for several years, and the need to improve corporate efficiency in order to provide better service to customers.

The modern world has thrown up a raft of legal issues connected with data capture. These centre around data and access issues associated with increasing legal and regulatory compliance requirements, from the Freedom of Information Act for the UK public sector, to the Basel II accord for the financial services sector. Many companies do not yet appreciate the role of capturing and managing data, but this will become more important because of the growing need for statutory and regulatory compliance.

Associated with an increasingly regulated environment is the rising cost of storage as businesses now have to keep some records for many years. Hard copy filing is actually very costly and The Gartner Group reports that documents cost 15 to file, with one filing cabinet costing a company on average 500 a year in floor space rental costs alone. Central filing then adds more cost in terms of time spent retrieving and returning files and records (often by highly paid professionals). Misfiling further compounds the issue and adds even more cost. At some point most businesses eventually need to outsource archive storage which adds still more expense. And just when you think storage costs cant get any higher, there is the little matter of retrieval.

The long term safety / survival / preservation of records is also an issue. Not all companies have good archiving practices and records are sometimes stored in damp places which makes them vulnerable to mildew. In these days of global warming and climate change, there have recently been many instances of flooding in the UK. Many companies keep archives on computer disc, but never check to ascertain their current condition. Fire hazards still abound and computer theft is still rife.

Efficiency in retrieving and using company information is key for good service to customers. In theory, all relevant information pertaining to an individual file should be stored in one place. Thus, when retrieved at some future time, a full understanding of the information can be obtained. This was fine until the intervention of "post-it" notes and more importantly e-mail. The proliferation of e-mail means that huge swathes of pertinent information is effectively lost, residing on a multitude of local hard drives and exchange servers. These "islands of information" usually contain some of the most important details such as specification changes, pricing amendments, order details etc. and yet they are lost forever from the archiving process. This compromises the completeness of any file and particularly impinges on customer service.

In these ultra competitive times, customer service is often the only differentiator between competing businesses. When busy customers contact their suppliers and service providers they often need help and answers right away; not two days later when the file has been retrieved from off site storage or; when the accounts manager is back from his three day time management course; or even in fifteen minutes when the Finance Director finishes his conference call. The pace of todays business has never been faster and there are no signs that this will abate any time soon. So if you cannot provide the information immediately, your customer may well start looking for another supplier that can.

Why Electronic Document Management?
An efficient electronic document management (EDM) system is a way of making sure that the business is storing and protecting critical data that makes up the intangible assets of the company. It also helps a company meet its legal requirements with regard to storing information that must legally be kept for many years in some cases.

Data capture needs to target all critical data - not just electronic and paper documents and faxes, but also email messages, diary records, reports, plans and in some cases, audio and video tapes. An important point about EDM systems is they allow you to store files in their original format (e.g. Word, Excel or other specialised software program), so they are editable and modifiable - but within an overarching system. It commonly occurs that departments within a business wish to use their own front end application program which defines the way in which they conduct their daily business while accessing this information. But where the information is shared, the EDM system is common to each and must be managed as such.

Who is allowed access to records is another issue where each company needs to develop a set of guidelines, with the specific circumstances that allow access laid down. An audit trail is crucial, enabling the system to track down the record wherever it is at any given moment.

Another key issue is storage conditions and handling processes to protect records from unauthorised access, loss or destruction and from theft and disaster. Records should be stored on media that ensure their usability, reliability, authenticity and preservation for as long as they are needed. Issues relating to the maintenance, handling and storage of records arise throughout their existence, not only when they become inactive. Clearly paper record keeping will no longer suffice as paper degrades over time and is susceptible to disasters such as fire or flooding. Records must be kept for as long as required to meet current and future business needs and to reasonably meet the needs (current and future) of internal and external stakeholders. The system would ideally have a full audit trail and version control of key documents.

How do EDM systems work?
Once the preserve of the FTSE 100 and Fortune 500 companies, this technology is now available to the mass market at affordable prices. They work by scanning documents into a system where they are automatically indexed and filed electronically, so documents can then be instantly recalled by searching on key words. The systems can work alongside existing software packages such as accountancy software and clients databases, so that output from several different systems may be electronically filed within the one overarching system. The system should integrate seamlessly with existing software packages so it can be installed and be up and running quickly without the need for extra programming to create an interface. Users should be able to view all documents scanned onto the system through the applications they use every day, thereby considerably increasing the speed and efficiency of document retrieval and cross-referencing.

Scenario - time is money, EDM to the rescue
A good way of understanding the benefits electronic document management can bring is to imagine a typical scenario when an executive needs some urgent information for a new business pitch. The executive thinks that the company already holds some information on this as they did some similar work two years ago, but the information is dispersed around the company in the technical and legal departments, some in hard copy archive storage which is offsite in a warehouse on the other side of town, and a lot of it is contained in emails long since archived in personal email folders. It will take days to pull the information together and is dependant on other people being available to assist.

Now imagine the same scenario but using an electronic document management system. The executive has the same query, but all information can be pulled together in a few minutes on their computer. The executive can review the material on screen, and follow research paths to find resources, all without having to ask anyone else a single question. A query that could have taken a couple of days, and a lot of administration support time to resolve, is handled in 15 minutes and the business executive can approach the new business meeting with confidence, and at much less cost to the company in terms of time spent.

So how to choose an electronic document management system?
One of the first things to look for is a system that is very easy to use. It should be simple to install, and be up and running in a few days. A well designed system with a good user interface means that staff will require almost no training to use the system, and staff should be able to find and retrieve documents easily and quickly and remotely when necessary, a useful attribute for those on the move - the mobile workforce.

An EDM system should:

Automatically index and file documents

Have version control capability

Have audit trails

Integrate seamlessly with existing software

Be scalable to suit small to large businesses

Be easy to use

And the benefits?
An EDM system can hold and protect corporate memory because resources are held centrally and filed in a logical way. Crucially, important information is available to all people within the company (within varying levels of pre-set permissions) so corporate information is freely shared, creating a huge time and cost saving for staff at all levels.

Retrieval times are almost instantaneous and "long lost files", from "the temps PC in the corner", are now fully accessible, thanks to intelligent keyword searching. Robust computer back up systems ensure that all information can be copied and secured off-site, thus ensuring that fire, flood, theft, and act of God will never again jeopardise your business.

Another immediate benefit is a reduction in costs. Archive storage costs disappear, and office space per square metre becomes more profitable as the space is used by staff working on the business, rather than in storing documents in filing cabinets. In many cases this enables expansion without relocation. The day-to-day costs in paper and other storage consumables are also dramatically reduced.

However, the real bonus is better customer service. When a customer calls, you can answer their questions on the spot simply by pulling up the relevant files on screen, rather than having to arrange to call the client back once you have obtained the hard copy files from their various locations (including the managers car boot or the filing clerks "pending" shelf).

Providing good service also ties into the key issue of customer retention vs new business. As everyone knows, retaining and growing existing business is cheaper than finding new business, so being better at providing such service makes commonsense to everyone. It is all about working smarter rather than increasingly harder.

What next?
Businesses need to act quickly to protect their vital business data. With information dispersed around on individual computers, it is not just a crisis when the chief filing clerk retires. Any staff member leaving means the loss of potentially crucial information, and therefore the potential loss of a businesses critical competitive edge.

With the mounting legislative burden faced, not just by the heavily regulated legal and accounting businesses, but also increasingly by all businesses in the UK, companies really need to think about how secure and accessible their information is. For example, there is the potential to be sued if information on company personnel isnt secure.

Data is the lifeblood of business. Electronic document management restores that vital flow and provides a way of managing all the new electronic forms of information in one central repository.

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