“guilty until proven innocent”

“Guilty Until Proven Innocent”

Pamela Doyle, Spokesperson, DirectorFujitsu Computer Products of America

AIIM Board of Directors and Chair, The TWAIN Working Group

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Trends and Business Drivers

• Costs• Customer• Continuity (Risks)• Compliance

(Governance)

• “Quarttrone Guilty on All 3 Counts”

• “Martha Behind Bars”

• “Ignorance is not Bliss for Execs On Trial”

• “Enron: Portrait of Greed”

• “CEO of a Public Pharmaceutical Co. Sentenced to 7 Years in Jail and Ordered to Pay $3M

for Ordering Destruction of Documents”

• March, 2007 Former Lason Executives Get Time

– Plead guilty to filing fraudulent quarterly reports

– Former Chairman and CEO

• 15 months in prison

• 20 million in restitution

– Former President and COO

• 1 year in prison

• 20 million in restitution

Risk and Governance

U.S. Guidelines

• Government Paper Elimination Act

• HIPAA

• Gramm-Leich-Bliley

• Sarbanes-Oxley

• SEC 17a3-4

• Check 21

• Patriot Act

• The Health Care Quality and Modernization, Cost Reduction and Quality Improvement Act

• Data Protection Act

• eDiscovery

Defining Best Practices for Data Management and Security

• Central to these regulations are:– Accessibility,– Privacy, and– Protection of Data

The Solution• Enterprise Content Management, including

document imaging, the capture component, as it provides real world solutions that enable organizations to manage information more efficiently, to secure confidential information and to ensure the physical protection of their data.

Enterprise Content Management

“The strategies, methods and tools used to capture, manage, store, preserve and deliver content and documents related to key organizational processes.”

AIIM International, 2006

ECM – E = EnterpriseECM – E = Enterprise

ECM• Think like an environmentalist

• Think globally, act locally

• Think strategically, implement tactically

ECM – C = ContentECM – C = Content

• All content, not just text documents, not just emails without attachments

• How widely do you need to search & retrieve• Users inside & outside the organization

ECM

ECM – M = ManagementECM – M = Management

ECM• Not just collecting & holding content,

but actively managing it

Content Exists in Numerous Formats

• Graphics• Electronic• Sound• Video• Web Content• Email• FAX• Paper

Facts about Electronic MailFacts about Electronic Mail AIIM Industry WatchFacts about Electronic MailFacts about Electronic Mail AIIM Industry Watch

• Users spend 30% of their time in email• 70% of users use email to negotiate contracts and

agreements• 84% use email to discuss operational or product

strategies• 63% use email to discuss sensitive HR issues• Only 45% of user have a formal policy for email

retention

Facts about FAX and Paper

• Manually faxing document takes an avg. of 8 min.• The avg. US Office Worker users over 10,000 sheets of

paper per year• Paper Consumption has increased six-fold over the past 50

yrs. (YourSITE.com)• Typical office worker spends 40% of time looking for

information• Professionals spend 150 looking for incorrectly filed

documents (Enterprise Storage Group)• Avg. Organization loses 1 out of every 20 docs.• Avg. organization spends 25 hrs. recreating each lost

document (PricewaterhouseCoopers)

Software

• Archive and Retrieval

• Production Capture

• OCR

• ICR/OMR/Barcode

• Forms Processing

• FAX Management

• Document Distribution

• Key from Image

• File to Image

• eMail Management

• Business Process Management (Workflow)

• Image Enable

• Enterprise Report Mgmt.

• Information Management Compliance

• Information Lifecycle Management

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Aiding with Information Management• Convert Paper to Electronic

Format

• OCR/ICR/Barcode

• Metadata

• Full Text Search and Retrieval

• Forms Processing

• Author

• Check-In/Out Privileges

• Version Control

• Audit Trail

• Designated Privacy Administrator for Access Control

• Remote Access

• Simultaneous Access

• IDR

• BPM (Workflow)

• Redundant Off Site Storage

ECM Applications

• Horizontal Applications:– Disaster recovery– Customer records management– Human resource records management– Processing forms– Document distribution– Document publication– Automating business processes

ECM Applications• Education:

– Student Records

• HealthCare:

– Patient Records

– Claim Processing

– Order Entry (Lab, etc.)

– Clinical Data Repositories

• Transportation:

– Proof of Delivery

• Legal:

– Client Records

– Case Reports

• Government:

– Historical Records

– Parking Tickets

– Compliance Documents

– Police Department Records

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ECM Applications• Insurance:

– Applications

– Claims

– Damage Inspections

• Hospitality:

– Charge Authorizations

– Reservations

• Retail/Manufacturing:

– Contracts

– Buyer Files

– Sales Agreements

– ISO Procedures

• Banking/Financial Services:

– Proof of Deposit

– Check Truncation

– Signature Verification

– New Account ID

– Transaction Processing

– Safe Deposit Contracts

– Wire Transfer Documentation

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Implementation Recommendations

Identify An Information Intensive

Business ProblemBoard

Commitment

RFP

Get Educated

Leverage Infrastructure

Training

Installation

Retain ServicesOf VAR/SI

(Demand P of H)

Considerations

• Backfile versus day forward implementation• Internal implementation versus using a third party

(clear understanding of charge model)• Centralized versus decentralized• File formats• Shred versus off-site storage

Return on Investment

• Cut costs

• Streamline business operations

• Improved customer service

• Ensure regulatory compliance

• Guarantee business continuity

Abbot Labs

• Major pharmaceutical company that researches, develops, manufactures and markets drugs for prevalent medical conditions

• Business problem:

– Inundated with files and the paper intensive process required by the FDA to track a drug from research to market

– Subject to unexpected inspections (must produce on demand)

– Needed business continuity plan

Abbot Labs

• Solution:

– Archive and Retrieval

– Production Capture

– OCR/ICR

– LVP scanners (6)

– MVP scanners (2)

• ROI:

– Increased efficiency by 18%

– Cost savings ($.10 to copy/$.06 to image)

– Decreased staff by 2 people (40K+)

– Ensure protection of data

City of San Diego

• Local government’s data processing department is a non-profit public benefit corporation

• Metropolitan Wastewater Department

• Dept. deals with taking wastewater and discharging in the ocean after treatment (heavily regulated)

• Problem:

– Documentation regarding city’s adherence to state and federal standards must be instantly available for review

City of San Diego

• Solution:

– Capture Software and MVP series scanners used to capture 88K pages per month

• ROI:

– Ability to capture wide range of documents (sizes and color)

– Immediate access to documents

– Ensures they are in regulatory compliance

Self Memorial Hospital

• Referral hospital (421 beds; 1,600 staff)

• Problem:

– Turnaround time for trauma patients was too long due to inability to find files quickly (250 boxes in hall with 3,000 documents)

– HIPAA

• Solution:

• Scan to CD

• 4 MVP scanners

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Self Memorial Hospital

• ROI:

– Faster patient response (10 min. vs. < 3 min.)

– Reduced storage (elim. storing 150,000 docs. monthly)

– Cost savings ($500K per year)

– Faster retrieval and processing for HIPAA compliance

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Property Management Plus, Inc.

• Company Overview:

– San Jose, CA

– 4 Person Property Mgmt. & Real Estate Co.

– Serves clientele in greater SF Bay & international clientele in Australia, China, Israel, Japan, Philippines, & UK

• Business Problem:

– Highly paper intensive (agreements, photos, inspection reports, disclosures, etc.)

– For regulatory purposes, physical file must be archived for up to 4 yrs.

– Receive an avg. of 70 calls per day requiring immediate access to files

Property Management Plus, Inc.

– Relying on traditional information sharing

(FAX, Postal & Courier Services)

• Solution:

– ScanSnap to digitize files to PDF for archiving and sharing via email

• ROI:

– Eliminate costs of faxing (1 doc. to Philippines $27 / Korea $36) (Saved thousands)

– Eliminated courier minimum 7 day staggering value-add

– PDF provide for vast ability to collaborate

– Execute contracts faster resulting in company growth

Universal Forest Products, Inc.


– Grand Rapid, MI

– Fortune 1000 Manufacturer & Distributor of Wood & Wood Alternatives

– 96 Facilities and 9,000 employees


– Much of their growth as a result of acquisitions

– Result of growth was an increased need to store massive amounts of documents

– Storing docs. consuming office space & they were paying for additional storage

– Legal dept. needed a way to easily retrieve docs. that might be relevant to a case


• Solution:

– Hyland’s Integrated Doc. Mgmt. & BPM Solution

– Fujitsu fi-4120C Workgroup & fi-4530C Departmental scanners

• Benefits:

– Reduce time to access documents in legal from weeks to hours

– Quickly reached minimum ROI to prove concept


• Business Problem in Payroll:

– Needed to manage docs. For 9,000 employees in 100 locations

– 40 different documents they needed to store, track and access frequently for employee files

– Time to locate paper document about 15 minutes

– 21 employees accessing 10 documents per day (est. cost $4,000 per wk. or $200,000 per yr.)


• Solution:

– Kofax Ascent Capture and Fujitsu fi-4120 and fi-4350 scanners

• ROI:

– Cost slashed to zero by converting documents to electronic format giving employees instant access to documents


• Leverage Solution to Another Operational Issue -A Decentralized Accounts Payable Process:

– 71 locations

– Invoices lost or misplaced resulting overpayments or late fees

– Invoice must be retain for 7 yrs. (previously stored in on-remise trailer – note fire in Canadian facility)

• Solution:

– Kofax distributed capture using separator sheets and barcode with vendor ID

– Images sent via internet to central AP repository


ROI:

– No more lost or misplaced invoices

– Improved visibility for management regarding the AP process

– Paper storage costs eliminated

– Ensured physical protection of data

– Substantial labor costs savings (71 AP employees freed for other tasks)

• Still Gaining ROI:

– “We have really just scratched the surface of this solution”

– Contract management application is on the drawing boards

DHL Americas


– Airborne Express (Acquired by DHL in 2003)

– 50 years served business customers around the world

– Time sensitive delivery letters, packages and freight to U.S. and more than 200 countries


– Processes invoices and related documents for over 30,000 suppliers

– Manual process was slow and labor intensive

– Manual processing often resulted in duplicate payments, fraudulent billing attempts and overpayments

DHL Americas

• Partner:

– Sought knowledgeable VAR (ImageSource) to automate Accounts Payables process

• Solution:

– Capture – Kofax Ascent Capture

– LOB – Stellent Application to image enable Oracle Financial System

– Manage – Stellent for content storage, retrieval and workflow

DHL Americas

• ROI:

– Streamlined AP processes (enhanced processing, accelerated cycle times, & increased user productivity) resulting in reduced operating costs

– Workforce reduction

– Eliminated cost and reliance on an outsourced microfilm service

– Return on investment in 18 months

Ruby Tuesday• Company Overview:

– Headquarters in Maryville, TN– Founded over 30 years ago– Founded by Sandy Beall and four buddies with a vision for a restaurant

with:• Quality,• Passion, and• Pride

• Today:– Publicly owned– Traded on NYSE– 850+ co-owned and franchised restaurants– More than 38,000 team members– Operations throughout U.S. and Worldwide

Ruby Tuesday


– Fast-growing company with distributed operations

– Needed to eliminate costly and in-efficient paper-based processes

– Weekly restaurants would ship week’s worth of paperwork to corporate for processing (HR documents, payroll forms & invoices)

– 800 packages received on a given day

– “FedExp boxes stacked to the rafters”

Ruby Tuesday


– Accounts payable frequently took as long as six days to process

• Typical AP issues:

– Lost or misplaced documents resulting in duplicate payments or late fees

– Average cost of processing manually $24 (.22 to $350)

– Invoice volumes increasing

Ruby Tuesday

• Solution:– Forms Processing Solution with Web Capture Option

(captures, classifies & accurately extracts the data from the 1500+ invoices each day)

– Fujitsu fi-5120C scanners (800+ units)• ROI:

– Accelerated AP process by 5 days– Reduced annual shipping costs– Reassign 50% of employees– ROI achieved in 18 months

More Information

• Case Studies and White Papers:

– Fujitsu at www.fcpa.fujitsu.com

• Industry Associations:

– AIIM at www.aiim.org

• Annual trade show

• Local chapters

• Certifications (ECM and ERM)

• MarketPlace

• Periodicals (DIR; eDoc; DOC1; & Business Solutions)

• Channel Programs (Distributors)

“guilty until proven innocent”

Documents

data management

use email

contentall content

holding content

email retentionfacts

sheets of paper

timeplead guilty

document imaging