Analysis On Electronic Data Imaging 18401

INTRODUCTION DigiFile has been serving the Houston community since 1992. Originally a litigation support company, they evolved into a total solution service organization for electronic document management. They offer conversion services, both at their production facility and on-site, as well as open architecture data management solutions. While initially servicing the legal industry they have ventured into other markets through associations developed through existing clients. Ownership is looking to pursue the development of these markets, but is unsure on how to segment such unlimited potential into viable and manageable market segments. From initial exploratory research using primarily secondary resources we have developed the following overall market analysis: Digital Imaging Conversion Services Much to the dismay of many in the business world, the arrival of the "paperless office" has been slow coming.

Even though the technology exists to almost eliminate paper documents, many businesses have never heard about it. This technology is collectively known as Document Imaging. Imaging has evolved out of the necessity for businesses to manage the ever-increasing amounts of information(Porter- Roth Associates, 1996). The following statistics are evidence of the massive amounts of paper that exist in American business today: Over three trillion documents are currently stored in corporate offices in the U.

S. alone and 95 percent of those are in paper from. One billion pages are generated a day in the United States. A typical executive stores the equivalent of five filing cabinets of paper.

This same executive also spends more than 150 hours a year searching for misplaced documents. The average missing file cost $120.00 in lost productivity. 80 percent of business documents are generated by computers and 60 percent of that is keyed right back into another computer-based system.

Only seven percent of the most crucial information used to run organizations is stored on-line(Smith, 1999, p. 74). The research objective of this proposal will focus on determining what markets contain the highest percentage of companies that are addressing electronic document management in the next three years, broken down annually. The demographics of these organizations can then be analyzed to profile the most ideal candidates for DigiFile's services in the greater Houston area. To achieve this objective we will conduct a survey utilizing the Houston Business Journal Top 100 lists published in 1999 as our sample base. The sampling method chosen for our research proposal is the quota sampling technique which is a form of non-probability sampling.

Quota sampling is used for its equitable representation of only the pertinent sampling characteristics required by those conducting the research. Statistical data will be offered in support of quota sampling, once our proposal is approved. Advantages of using this type of research are the speed of data collection, lower costs, and convenience(Weathers, 1999). The initial steps in conducting a survey will require a pilot study. Upon approval of the survey we will use the same sample base as introduced earlier including the solicitation of three individuals from each of the seven vertical markets.

Interviews with these individuals will be verbal in order to clarify and validate the survey questionnaire. Once the pilot study is completed we will pursue the roll out of the survey. Success will be based on the survey achieving a minimum of 35% participation in all vertical markets(Weathers, 1999). Utilizing our in-house staff, consisting of five interviewers, two technical support personnel, and the project manager, we will conduct a mail survey supported by both pre and post telephone interviews. Interviewers are skilled and trained professionals that are provided overall product knowledge during initial training and will be involved in daily status meetings to evaluate any unforeseen problems.

The pre-survey interview's primary function will be to identify the appropriate individuals with in the organization: CEO, CFO, CIO, COO, and soliciting their participation in the survey. Address information will also be verified to aid in increasing response rate. Post telephone interviews will be conducted on an as needed basis for clarification of responses and also to increase response rates in a timely manner. In an attempt to expedite the data gathering process, the survey will be mailed electronically to all agreeing participants, others will be sent by the traditional mail method.

The survey will consist of three sections: Company profile, Information Technology Status, Product Knowledge (for sample survey see appendix). DISCUSSION As defined by the Association for Information and Image Management (AIIM), imaging is, "The ability to capture, store, retrieve, display, process, and manage business information in digital form"(Schroeder, 1996). Put simply, digital imaging means taking paper-based documents and converting them into computer-based documents. Instead of trying to move a document through the process faster, imaging uses innovation to shorten the path. Images appear where they are suppose to, when they are suppose to, in the order they are suppose to and without human error(Weathers, 1999). A variety of statistics from a number of studies show 3 percent of all documents are filed incorrectly and 7.

5 percent of all document s are lost forever(Smith, 1999). Electronic document management (EDM) combines imaging along with optical character recognition (OCR) and indexing or electronic cataloging when dealing with the conversion of paper-based documents(Skupsky, 1999). OCR technology translates characters contained in the document's image into meaningful text that can be cut and pasted into a word processing file or have "fuzzy-logic" searches preformed on it. Indexing allows for information to be entered about the electronic document, such as its title, author, creation date and key words including client name, document description, and so forth. Upon creation, the file is archived - perhaps in a "folder" of items pertinent to a particular subject- in a given storage medium, CD-ROM, on hard drive, or in an online database(Skupsky, 1999).

As one can guess, the possibilities of document imaging are endless. Document imaging can help increase productivity and efficiency in almost any business or organization that uses information contained on paper. The following short list contains some of the ways imaging technology is being used currently: Human resource management- resumes, letters of reference, pictures and employee records. Legal applications- discovery files, contracts and depositions. Accounting- purchase orders, invoices, and receipts for expense reports. Marketing- competitive profiles, magazine and newspaper articles and products information.

Insurance- applications, legal proof of coverage, claims and forms sent via email. Financial- check processing, research, loans and signature cards Government- law enforcement case records, hand written evidence, digital photographs and historic records for research. Engineering and Architecture- project files, drawings, specifications and compliances. Medical- medical records, doctor's notes, administrative files, insurance claim forms(Weathers, 1999). Document imaging benefited greatly by the many legal opinions that came out in support of imaging.

Donald Skupsky, a noted legal expert in data storage requirements and president of the Information Requirements Clearinghouse, issued the following opinion in March 1995: "After reviewing the legal issues in all United States jurisdictions, we have concluded that an organization may proceed to develop an electronic imaging system with magnetic media storage to replace a paper records system without adverse legal consequences. Such a system may incorporated scanning or original records, storage of images and information on any media, and the destruction of the paper records." On a local note, the Harris County District Attorney's office now has more than 10 million pages of documents scanned and stored on the Internet(Mansfield, 1999). With this popular method, even CD's are unnecessary.

Attorneys simply carry a laptop computer with them to access the Internet and quickly find the documents they need(Williamson, 1999). More advanced imaging systems allow work-flow processing to automate and re-engineer business processes. Document imaging systems can be cost justified through simple operational savings, such as increased productivity and reductions in staff and storage space. They are much more cost-effective than paper or microfiche/ film file management. By decreasing the number of people required to manage the information, more staff is available to work on important projects(Mansfield, 1999). One reason is that the cost of image libraries for storing and retrieving images has fallen below the cost of purchasing and developing microfilm.

For example, in the banking industry, the average storage cost per 1000 checks is $.32, but it can go as low as $.20 using imaging on CD-ROM. Images replace microfilm, which is slow, labor-intensive, poor quality and error prone.

In particular, microfilm takes 3-4 minutes on average and images take anywhere from ten seconds to one minute to research an item. Also, based on a study by Robert Allerding, a retired state of Ohio records manager, the cost for storing 2 million paper documents exceeds $41,000 - just for the filing cabinet(Weathers, 1999). Imaging systems do have some drawbacks. Document imaging systems can have substantial up front costs.

Investment in an entry-level system can cost anywhere from $45,000 to $70,000, plus staffing. In addition a backfile conversion is one of the largest single jobs that a company will undertake. An organization must be sure that all steps have been considered before deciding to do the conversion in-house. Staffing is the largest problem the company will face. Most do not have personnel experienced in managing and organizing the work-flow of a conversion project. Also companies spend too long on a conversion.

Businesses have reported taking over three years to complete a 500,000-image job that a service bureau could have finished in a few months(Porter- Roth Associates, 1996). Using a service bureau is an invaluable asset when taking on a backfile conversion. Speed is key to processing information efficiently. A conversion service bureau is ideal because they provide the high-end equipment, experience and expertise to complete the job faster, cheaper, and more efficiently than the user.

Service bureaus are on the cutting edge of current edge of current imaging technologies, and the client benefits from this wealth of knowledge and experience(Williamson, 1999). Service bureaus can analyze the client's documentation to determine the most cost-effective and efficient way to complete the conversion. They examine indexing schemes to ascertain whether automated indexing system (i.e., bar code labels and cross-referencing information from existing on-line systems) can be used. Also the service bureau will plan the conversion in advanced, taking into consideration such issues as security, legality, quality control, cost, personnel, management, and data access during conversion and equipment compatibility(Weathers, 1999).

In 1999 the expected overall U.S. market for electronic document imaging to be over five billion dollars. This is a 24 percent increase over the same market in 1998(Schroeder, 1996). Currently there are thirty-six digital imaging conversion companies listed in the Houston yellow pages.

Some such as RACOM, the largest and oldest conversion bureau, have roots in microfilm and stand a considerable edge with established clients. However, only a few offer open-ended solutions. The vast majority of service bureaus also are valued-added re-sellers for software. These software solutions are often closed architecture systems, meaning the information stored cannot be integrated with another system. This allows a conversion bureau affiliated with an open architecture software package to pursue all market possibilities. Including those organizations currently utilizing a system to easily outsource the conversion portion.

In the Houston market there are few dominant players, for example primary research in engineering market showed over 90 percent of those contacted had never been contacted by a service bureau. And based on the Harris County Business Journal, currently there are over 1300 engineering firms in the area. All conversion bureaus have the good fortune of having literally zero restrictions towards pursuit of business in any vertical market, with 95% of all documentation currently in paper form. And with statistics stating a 25 percent growth in paper documents annually, potential clients are abundant(Weathers, 1996). CONCLUSION In choosing quota sampling and utilizing electronic mail and a staff of eight we see needing approximately ten to twelve weeks to complete the project.

Two weeks for initial pilot study and training, two for pre-telephone interviews, and full survey roll out, two to three weeks for responses, an additional two weeks for post-telephone interviews, and two to three weeks for data analysis and composition of report. We do not see the need for any equipment outside of our standard office equipment. Total expense for this project is estimated at $53,000.00. ANNOTATED BIBLIOGRAPHY Consulting in Electronic Data. Porter- Roth Associates, Mill Valley, CA 9 June 1996.

http:www.erms.com(13 Jan. 1999).

The authors talk about the technical aspects of installing electronic management equipment and software, and the maintenance required for upkeep. Mansfield, Kirby. CEO, Inso Corporation. Personal Interview. 20 June 1999. Mr.

Mansfield explains how electronic document management affects upper- level management. Shroeder, Robert. [email protected].

ac.uk Imaging Made Easy. 26 Mar. 1996 (13 Jan. 1999).

This web site talks about the simple steps involved in changing from an old analog system of documentation to a modern electronic documenting system. Skupsky, Donald. CIO, Information Requirements Clearinghouse. Personal Interview.

12 June 1999. Mr. Skupsky talks about the very technical aspects of choosing and installing a electronic management system and how it benefits the CIO objective. Smith, Mark. Electronic Communication. Business Communication Quarterly 59 (May 1999): 74-81.

ABI/Inform. On line. ProQuest. 16 May 1999. Talks about the history of document management.

Weathers, Brett. Product Development, DigiFile. Personal interview. 8 June 1999.

Talks about every aspect of electronic document management. This was the interview in which we based most of our paper on. Mr. Weathers has implemented every stage of system change over at his own company and gave very relevant information for our paper. Williamson, Reginald.

CEO, Data Corporation. Personal Interview. 15 June 1999. Mr. Williamson talks about electronic management from another CEO perspective.

This interview is a lot more vague than Mr. Mansfields interview.