1. The Dark Side of Document Imaging: ‘The Hidden Cost of Capture’

2. Jerry Van Loozen, CDIA 23 years experience Filing Systems Record Centers Service Bureaus Document Imaging Records Management Current President - Atlanta Chapter of ARMA

3. The Walter H. Hopkins Company www.BusinessOrganizationSolutions.com Serving Georgia and Alabama for 37 years Serving the Nation through Systec www.systcgroup.com - Spacesaver High Density Storage - Smead Custom Filing Solutions - Active Workroom Furniture - Filetrail technology for barcode and RFID tracking - Smeadlink software for document imaging - Captiva solutions for document and data capture

5. ISO 15489 RIM Best Practice Standard

6. Your Experience in Document Imaging Have not tried yet Just getting started One year experience I figured it out

7. To Store vs. Scan Off-Site Storage.25/month/box + retrievals 12 x 15 x 10 archive box $3.00 per year $150.00 - 225.00/box includes prep, scan, index, write to cd and reassemble folder + cost for software investment, maintenance & support

8. Quick Estimate on Cost to Scan Add up number of file inches Get average number of folders per inch to get estimated number of folders Multiple number of inches by pages per inch 150 to 225 based on folder, paperclip and fastener thickness Take total number of folders and calculate cost to index based on.03 to.20 each – Cost varies based on number of fields, characters per field and process to get data Take number of documents and calculate by.08 to.10 per page – the cost goes down to.05 to.07 with quantities over 100k Add.25 per filing inch for shipping and handling of paper

9. The Cost of Capture Collect Documents Prep Documents Indexing Filing

10. High Labor Costs In most applications, capture is a small part of the initial capital investment…. But by far the largest ongoing expense Front-EndCapture Front-EndCapture Back-EndApplication Back-EndApplication

11. Ways to reduce cost Distributed vs centralized scanning Workflow – Batch Processing Automation

12. Centralized Scanning at a central site on a single LAN

13. Decentralized Scanning with the internet Same process but work can be done anywhere Internet provides reliable inexpensive network infrastructure Filing Server Internet ServerInternet Scan Recognition Index/ Validation QC

14. Cost Comparison Centralized scanning Assume 10 sites scanning 100 pages per day –10 packages per day @ $10 each = $100 per day –Total shipping cost: $25,000 per year Additional operator cost at central site –1000 documents per day –2 hours of prep/scan @ $10 per hour = $20 per day –Total scan/prep costs = $5000 Total cost = $30,000

15. Cost Comparison Distributed scanning –10 scanners + software at remote sites @ $2,500 each –Total hardware/software cost = $25,000 Internet access cost –$20 per month per site –Total access cost = $2,400 Total cost = $27,400 (first year) $2,400 (subsequent years)

16. Cost Comparison Total savings: –First year: $2,600 –Second year: $27,600 Non-monetary savings –Faster access to documents –Better security –Local personnel know the documents better

17. Capture Costs - Operator Assumptions: –Fully loaded operator cost is $23,000 per year $11.50 per hour $.19 per minute –250 working days per year In document and data capture, savings are measured in seconds, multiplied by thousands of documents

18. WorkFlow Batch processing increases productivity With a 40 ppm scanner: –Manual scanning = 10 ppm –Batch scanning = 30 ppm At 1,000 pages per day: –Manual scanning = 100 minutes –Batch scanning = 33 minutes Cost savings: –67 minutes x $.19 per minute = $12.73 per operator per day Total savings of $3,182 per year!

19. Automation Heads up Data Entry OCR & Barcodes Data integration COLD Esignatures

20. Indexing Cost Assumptions: –5 fields per document, 12 characters per field –Keying rate of 7,000 characters per hour –6.2 seconds per field

21. Field #1 – Faster Keying Properly designed ‘Heads Up Data Entry’ module can speed keying rate –Keying rate improves to 10,000 characters per hour –Keying rate is now 4.3 seconds per field At 1,000 pages per day: –Total time = 71 minutes –32 minutes saved for field #1 Cost savings: –32 minutes x $.19 per minute = $6.08 per day Total savings for field #1 of $1,520 per year!

22. Field #2 – Zonal OCR If OCR is performed on one index field: –Field only needs to be checked, not keyed –Time to check field = 2 seconds At 1,000 pages per day: –Total time = 33 minutes –70 minutes saved for field #2 Cost savings: –70 minutes x $.19 per minute = $13.30 per day Total savings for field #2 of $3,325 per year!

23. Field #3 - Barcodes If bar code is performed on one index field: –Bar codes are 99% accurate At 1000 pages per day: –1% error rate = 10 pages –Total time = 2 minutes to check/correct 10 pages –101 minutes saved for field #3 Cost savings: –101 minutes x $.19 minute = $19.19 per day Total savings for field #3 of $4,798 per year!

24. Field #4 & #5 - Data Integration Match unique data in document to data in host database and merge all relevant fields to document index table Eliminate keying cost and potential for error At 1,000 pages per day –Total time is 206 minutes per day Cost savings - 206 minutes at $.19 per minute = $39.14 per day Total savings of field # 4 & # 5 of $9,785.00

25. Cost Savings Summary Process Batch scanning Faster keying (field #1) OCR indexing (field #2) Bar code indexing (field #3) Integrated match and merge data ( field #4 & #5) Total savings X number of stations Annual Savings $3,182 $1,520 $3,325 $4,798 $9,785 $22,610

26. COLD (Computer Output to Laser Disk) Any data created in a computer should be archived directly to image vs. print to scan –Reports No more Green Bar Reports –Accounting Data Output to an Electronic Template

27. Electronic Signature Capture Signature Through Attached Pad Pasted Signatures are not Considered Legal –Credit Card Transactions –Insurance Applications –Insurance Claims –Loans –Many More

28. Walter H. Hopkins Company Business Organization Solutions™ For more information: Jerry Van Loozen, CDIA jvanloozen@walterhopkins.com 404-931-4699 direct