Document Imaging ECM The Case for Information Management

“Document Imaging (ECM), The Case for Information Management Compliance” Pamela Doyle, Spokesperson, Director, Fujitsu Computer Products Chair, AIIM NA Advisory Trade Member Board, The TWAIN Working Group, and CDIA+ Tech Data Confidential & Proprietary www. techdata. com

Agenda 1. Trends Driving the Demand 2. The Solution 3. Technology Overview 4. Case Studies 5. Market Opportunity 6. More Information 2 Tech Data Confidential & Proprietary

Trends Driving the Demand for Document Imaging • • • 3 Protect information Streamline business operations Demonstrate regulatory compliance Tech Data Confidential & Proprietary

• • • 4 “Many CEOs Take Ebbers’ Crime Personally, want Tough Sentence “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 Sentenced to 7 Years in Jail and Ordered to Pay $3 M for Ordering Destruction of Documents” Tech Data Confidential & Proprietary

U. S. Regulations • • Government Paper Elimination Act HIPAA Gramm-Leich-Bliley Sarbanes-Oxley Patriot Act Bank Secrecy Act ISO 15489 -1 & 15489 -2 • • • 5 Tech Data Confidential & Proprietary SEC 17 a 3 -4 Federal Rule of Litigation Discovery Do. D 5015. 2 STD/DITSCAP Check 21 The Health Care Quality and Modernization, Cost Reduction and Quality Improvement Act The Rehabilitation Act – Section 508

Define Best Practices for Data Management & Security • 6 Central to regulations are: – Accessibility, – Privacy, and – Protection of data. Tech Data Confidential & Proprietary

The Solution • 7 Enterprise Content Management, including document imaging, the capture component, as it provides real world solutions that enable organizations to manage information more efficiently, to streamline business operations and to ensure the physical protection of their data. Tech Data Confidential & Proprietary

Enterprise Content Management “Capture, manage, store, preserve and deliver information and documents related to business and organizational processes. ” AIIM International, 2005 8 Tech Data Confidential & Proprietary

The Content Management Crisis • • 9 Unstructured content is growing at 92% CAGR (Enterprise Storage Group) Typical office worker spends 40% of time looking for information Professionals spend over 500 hrs. annually reviewing and routing files Another 150 looking for incorrectly filed documents Tech Data Confidential & Proprietary

Content Exists in Numerous Formats • • 10 Graphics Electronic Sound Video Web Content Fax Email Paper Tech Data Confidential & Proprietary

Facts about FAX • • • 11 Many businesses still rely heavily on fax Many P. O. systems, invoicing systems and mortgage processing are still driven by fax Manually faxing documents takes an average of 8 minutes and greatly consumes resources Considering an average labor cost of $20, can help estimate labor cost using the manual method Scanning and distributing electronically can reduce the time to less than 30 seconds Tech Data Confidential & Proprietary

Facts about Electronic Mail • • • 12 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 Tech Data Confidential & Proprietary

Facts about Paper • Stacking UP, by Daniel Gross (U. S. Airways Attache, May ‘ 2005): – PCs Chew up some 115 billion sheets of paper each year – In 2003, U. S. office worker used more than 10, 000 sheets • Average organization (Pricewaterhouse Coopers Study): – Makes 19 copies of each document – Spends $20 in labor to file each document – Spends $120 in labor searching for each misfiled document – Loses 1 out of every 20 documents – Spends 25 hours recreating each lost document – Spends 400 hours per year searching for lost files 13 Tech Data Confidential & Proprietary

Convert Paper to Electronic Format • • • 14 Capture images Retain as image or extract data Create metadata Manage the data Secure the data (store CDs, WORM, MO) Protect off-site (the more redundancy the better) Tech Data Confidential & Proprietary

Software • • 15 Archive and Retrieval Production Capture OCR ICR/OMR/Barcode Forms Processing Fax Management Document Distribution Key from Image Tech Data Confidential & Proprietary • • • e. Mail Management Business Process Management (Workflow) Image Enable Enterprise Report Mgmt. Information Management Compliance Information Lifecycle Management

Hardware • • • 16 Network Infrastructure Scanner(s) Image Processing Image Enhancement Collaboration Tools Security Tech Data Confidential & Proprietary • Storage: – – – Magneto Optical WORM RAID CDs NAS SAN

Recent Industry Trends • • • 17 Internet Distributed Capture Image Processing Color Increase in the Number of Service Bureaus Adoption of ASPs Tech Data Confidential & Proprietary

Technology and Compliance • • • 18 Technologies can aide Challenge is to develop, implement and review compliance strategies and policies First step is to become knowledgeable Apply technology, processes, cultural change and employee education to make the changes to demonstrate regulatory compliance Technology can provide the infrastructure Tech Data Confidential & Proprietary

Aiding in Regulatory Compliance • • 19 Convert Paper to Electronic Format OCR/ICR/Barcode Metadata Full Text Search and Retrieval Zoom Author Check-In/Out Privileges Version Control Tech Data Confidential & Proprietary • • Remote Access Simultaneous Access Designated privacy administrator Access Control Audit Trail BPM (Workflow) Redundant Off Site Storage

Other Document Imaging Applications • Horizontal Applications: – – – – 20 Disaster recovery Regulatory compliance Customer records management Human resource records management Processing forms Document distribution Document publication Automating business processes Tech Data Confidential & Proprietary

Other Document Imaging Applications • Education: • – Student Records • Medical: – – • Patient Records Claim Processing Order Entry (Lab, etc. ) Clinical Data Repositories Transportation: – Proof of Delivery 21 Tech Data Confidential & Proprietary Legal: – Client Records – Case Reports • Government: – – Historical Records Parking Tickets Compliance Documents Police Department Records

Other Document Imaging Applications • Insurance: – Applications – Claims – Damage Inspections • Hospitality: – Charge Authorizations – Reservations • Retail/Manufacturing: – – 22 PCard/TCard Receipts Contracts Buyer Files Sales Agreements Tech Data Confidential & Proprietary • Banking/Financial Services: – – – – Proof of Deposit Check Truncation Signature Verification New Account ID Transaction Processing Safe Deposit Contracts Wire Transfer Documentation

Implementation Recommendations Leverage Infrastructure Identify Document Intensive Business Problem RFP Training Get Educated Installation Retain Services Of VAR/SI 23 Board Commitment

Considerations • • 24 Backfile versus day forward implementation Internal implementation versus using a third party (clear understanding of charge model) Centralized versus decentralized Shred versus off-site storage Tech Data Confidential & Proprietary

Myths • • • 25 File formats Storage media longevity Data recognition accuracy Can be submitted in a court of law Eliminate paper Tech Data Confidential & Proprietary

Realities • • 26 Cut costs Broaden market outreach Increase document management efficiencies Maintain accurate audit trail Ensure regulatory compliance Accelerate business processes Reduce storage costs Protect data and ensure business continuity Tech Data Confidential & Proprietary

Pharmaceutical • • 27 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 Tech Data Confidential & Proprietary

Pharmaceutical • • 28 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 (40 K+) – Ensure protection of data Tech Data Confidential & Proprietary

Manufacturer • • • 29 Paper and Lumber Manufacturer Business Problem • Too many man hours spent filing and retrieving 2 M documents yearly • Physical space to store was becoming excessive • Needed a disaster recovery plan for critical information asset Solution • Capture Software and LVP Scanner Tech Data Confidential & Proprietary

Manufacturer • 30 ROI • Processing time reduced from 17 -20 minutes to 20 seconds • Reduced storage costs • Accelerated business process by enabling customers to have direct access to documents • Ensured security of data from any data storage disaster Tech Data Confidential & Proprietary

Hospital • • • 31 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 Tech Data Confidential & Proprietary

Hospital • 32 ROI: – Faster patient response (10 min. vs. < 3 min. ) – Reduced storage (elim. storing 150, 000 docs. monthly) – Cost savings ($500 K per year) – Faster retrieval and processing for HIPAA compliance Tech Data Confidential & Proprietary

Compliance: An Imaging VAR’s Secret Weapon (Business Solutions, May 2005, By Ken Congdon) • • • 33 ECS Imaging, Riverside, CA “Individual regulations have their own stipulations but all center around the management, maintenance, and retention of records” “Imaging technologies help protect against failure costs by providing an electronic platform where records can be quickly accessed” “Traditionally, businesses base their decisions to implement on ROI or payback…However, in compliance TCF (total cost of failure) can be more influential in closing a technology sale “ECS increased sales 26% by showing clients how imaging can help them meet regulatory requirements” Tech Data Confidential & Proprietary

Overall Market Potential • • 34 Enterprise Content Management is a $3 billion dollar market (AIIM International based on Gartner Study) Total market opportunity created by compliance will reach $80 billion over the next 5 years (AMR Research) Tech Data Confidential & Proprietary

Scanner Market Categories Info. Trends 35 Tech Data Confidential & Proprietary

Workgroup Market Share – CY ‘ 04 Source: Info. Trends *Estimated 36 Tech Data Confidential & Proprietary fi-4120 C / fi-4220 C

Departmental Market Share CY ‘ 04 Source: Info. Trends *Estimated fi-4530 C 37 Tech Data Confidential & Proprietary

LV Production Market Share CY ‘ 04 Source: Info. Trends *Estimated fi-5750 C 38 Tech Data Confidential & Proprietary

MV Production Market Share CY ‘ 04 Source: Info. Trends *Estimated 39 Tech Data Confidential & Proprietary fi-4860 C

More Information • Industry Associations: – AIIM www. aiim. org Annual trade show • • • 40 Local chapters Certifications Market. Place – ARMA www. arma. org • Annual trade show • Local chapters – Comp. TIA (www. comptia. org) • CDIA+ Periodicals (DIR; e. Doc; DOC 1; & Business Solutions) Tech Data VPRs Tech Data Confidential & Proprietary