Introduction
Documents power offices around the world. In the past, those documents were largely paper-based. Now, organizations are ready to go paperless; scanning paper records to digital files is the first step.
Industries like banking, finance, and healthcare—traditionally paper-intensive with strict record maintenance regulations—benefit the most from large-volume document digitization as digital transformation in these sectors ties together multiple platforms, the integration of which creates immediate gains for staff in the back end and hundreds of thousands of customers in the front end
Regardless of the industry, document scanning is the pivotal starting point of digital transformation. As the global workplace shifts to a remote work model, emphasis on document scanning is greater than it has been in the last 20 years. So too is the emphasis on changing bad paper-based habits like printing documents. Printers contribute to the vicious digital-analog-digital circle where paper is scanned to digital but printed (for meetings or for signatures) to analog and then scanned to make digital again. Software is readily available for signatures and meetings to have shifted from face to face to video conference. There is no place for printers in 2021.
As organizations mandate digital communications internally, external communications and collaboration with vendors, partners, and customers pose a bigger challenge.
Data capture technologies like eForms and eSignature software create external inputs in an electronic format from the point of origin. Optical Character Recognition (OCR) technology converts information into searchable electronic text. Organizations that adopt a streamlined information management system will reap the benefits of records digitization and truly achieve paperless information processing.
What is Document Scanning?
Document scanning turns a paper document into an electronic document. A scanner captures and stores a digital image of a paper document and OCR makes that digital image readable and searchable by document management software (similar to a massive electronic filing cabinet). This process—which is also called records digitization, document imaging, or paperless processing—cuts costs and makes accessing, updating, and sharing information faster.
A Document Processes Survey conducted by IDC in 2019 found that organizations are moving towards paperless processes, but there is still some way to go:
- 30% of the records office workers use each day are paper documents.
- 40% of knowledge workers report spending 21-30% of their week on document-related tasks, including both paper and digital documents.
The survey showed that paper remains prevalent in modern offices despite routinely converting paper to digital format.
To stop leaning on paper, we must first start using digital-focused systems to gather information (eForms), to modify information (Google Docs), to sign documents (eSignature software), and to collaborate with others (Microsoft Teams, Monday, Slack). Only then, when paper is left out of the equation, will companies truly benefit from a paperless system.
As technologies mature and the costs of adoption come down, more and more organizations are going paperless. The first step is backfile conversion, a one-time bulk scanning effort that converts legacy documents to electronic format.
In banking, converting paper archives to digital is a complex initiative that requires high-speed scanning by a professional service provider to produce accurate results that are highly confidential and highly secure.
After backfile conversion is complete, digitization efforts switch to day-forward scanning. All new records from a specified date onward are scanned and converted to electronic format as they come in. Both these techniques are essential to create and maintain digital transformation.
Why Businesses Should Scan their Documents
There’s no going back. Paper is a thing of the past. Digital documentation is the accepted medium of the future because it streamlines workflows to maximize productivity, which creates significant cost savings. As digitization technologies mature, automation is an invaluable tool that optimizes returns on investment by taking tedious tasks from valuable human workers and giving those repetitive tasks to robots (software)—something impossible to achieve with traditional paper-intensive processes.
Scanning and imaging saves time and money
Paper records create massive long-term storage costs. How many filing cabinets can your office accommodate? Large organizations maintain millions of archived paper records in large warehouses to comply with industry regulations.
Apart from storage, there are other costs involved: the human resource cost of working with paper, searching for it, copying it, and printing it. Plus the line item expense of paper reams, paperclips, staples, folders, bins, drawers…the list goes on.
These costs disappear with digitization. Digital documents are managed by a DMS (which makes record retrieval, update, and sharing easy in a few clicks) and stored in the cloud.
Digital documents are secure
One of the challenges of maintaining paper records is that they go missing. Not so with digital files. Digital documents have version history and they’re searchable thanks to indexing tags. A copy of a digital file always exists. Document management systems (DMS) have access controls (logins) and file permissions, which prevent unauthorized access to documents and duplication of documents. Digital files make data backups quick and affordable and cloud storage protects information from natural disasters, fire, and onsite theft.
Digital files are quick and easy to retrieve and share
By contrast, archived paper records stored in an offsite warehouse are not easy to find for customers. When paper was the medium of the day, if a customer walked in and requested a record, that involved tracking down the physical files in a storage facility and physically moving them back to the office. That takes time and underserves customers, who are forced to not only wait but come back another day. Now consider the same situation, but with digital records. A search query locates the file instantly and information is shared moments after the customer’s request.
Similarly, when you have to send documents to external stakeholders, vendors, partners, and customers, digital files are a distinct advantage; no time or money wasted on staff searches or couriers. Email and other transfer technologies are instant and inexpensive.
Digital documents comply with regulations
Some industries operate according to strict privacy regulations that protect customer information. To comply with these regulatory frameworks, organizations install cybersecurity and access controls to digital data, keeping physical archived copies for a specified time only if regulations mandate (whereby physical paper copies are destroyed upon expiration).
Document digitization eases past challenges for knowledge workers, improving the customer experience, while at the same time increasing employee morale by eliminating tedious, manual processes. Freed from repetitive tasks, productivity goes up, and a priority can be put on value-added work. According to research conducted by IDC, 42% of office workers point to manual paper-based workflows as the culprit of workplace inefficiency.
The Document Scanning Process
Professional scanning companies streamline scanning large volumes of documents. This is the process:
Assessment
Assess the scope, complexity, and project timeline. Every scanning project is unique. Professional document scanning service providers analyze the type of documents, the volume, as well as their physical size. They also check document condition, repairing when necessary so the quality will be sufficient for conversion. Is the paper torn? Has the ink faded? Is the text unreadable due to stains or other damage?
Document pickup and transfer (chain of custody)
Professional scanning service providers guarantee confidentiality and security during document transfer and scanning. It is critical to review what kind of facility is used by the service provider to store and scan documents, what security measures are in place, and whether staff is highly trained with security validation (as opposed to interns, students, and temps). Pick a provider that offers secure document pickup and delivery or mobile on-site scanning if documents can’t leave the property by regulation.
Document preparation
At this stage, trained technicians manually check the documents before scanning. They remove any staples, clips, attached notes—anything that may obstruct the scanning process. They straighten folded corners and smooth creases for better scan quality.
Scanning and file conversion
Production-grade document scanners convert thousands of documents per day into digital formats like .PDF, .TIFF, and .JPG. Technicians check the output, flagging image correction and clarity issues.
OCR and indexing
Advanced imaging software uses OCR (optical character recognition) to convert images into electronic text that is indexed and categorized. Some systems also support manual indexing by associating metadata with the files. Document Management Software (DMS) manages the digital documents, providing convenient and expedient tools for fast search, update, transfer, and archive.
Post-scanning services
Physical documents are either destroyed or transported to a storage facility to meet compliance until their expiration date.
Industries that Benefit from Document Scanning
Every industry has unique requirements. An experienced document management partner provides customized services that cater to diverse domains. Here’s how various industries benefit from document scanning services.
Healthcare
In the healthcare industry, besides patient records, there are insurance documents, nursing charts, operating procedures, and physician guidelines that can all speak to each other via a document management system (DMS).
- Digitization improves medical record security, guarding sensitive information about the health status of patients, giving access only to authorized personnel. Document scanning in the healthcare industry is a best practice that complies with patient confidentiality laws.
- Digitization frees up doctors, nurses, technicians, and other skilled medical personnel from the tedious task of sorting through documents so they can focus on patient care rather than on document upkeep. An efficient DMS improves efficiency and saves costs of paper, printing, and copying.
- Other benefits include less storage space requirements, increased accessibility and searchability of records, and higher productivity of medical staff.
Manufacturing
Manufacturing companies produce and maintain large volumes of paperwork: work orders, change orders, purchase orders, accounts, material safety data sheets, government regulations, and industry guidelines. They must store, update, and archive records to achieve maximum efficiency and accuracy. Manufacturing companies reap rich benefits by digitizing records and adopting a structured document management system:
- Digitization enables an electronic log of all documents, making them easily searchable during an audit.
- Improved vendor management as documents and vendor communications are systematically captured.
- Digitized documents and automated workflows eliminate duplicates, reduce the risk of human errors, and minimize delays. All this results in better turnaround times for orders.
- Faster authorizations, document revisions, approvals, and notifications—in a few clicks!
Financial Services
Transactions such as tax returns, loan applications, remote deposit information, and appraisals contain sensitive and confidential information. They are also subject to strict compliance requirements and state regulations.
- Institutions like banks and insurance firms have millions of records. Paper records take up expensive real estate and are not easy to search through and access. Cloud storage of electronic records brings significant cost savings for financial services firms.
- Digitization makes it easy to maintain backups off-site and protect critical information from natural disasters.
- Paperless systems make records easily searchable, enhancing employee efficiency, saving time and costs.
- Document revisions, modifications, and sharing are easier with digitization.
Construction & Engineering
Engineers depend on accurate and detailed drawings to execute projects efficiently. Over time, construction companies amass a huge volume of engineering documents as each trade requires different engineering drawings, and each drawing encounters change orders. The McKinsey Global Institute asserts that the adoption rate of digital transformation in the construction industry is slow compared to other sectors. However, the trend is changing as companies begin to realize the numerous benefits of partnering with a professional document scanning services organization:
- Construction engineers spend most of their time in the field. They must access documents on project sites or while traveling. Digitized documents are easily accessible from any location on any device.
- Digital documents have better version control. Some digital engineering drawings now show site plans overlaid with electrical, plumbing, heating/cooling ductwork etc. One digital drawing for all work that updates in real-time is an invaluable tool compared to multiple paper drawings with pencil markups (and rips… and coffee stains).
- Engineering documents like architectural blueprint drawings are typically in large size formats, which makes them difficult to carry and share. Digital files provide a convenient solution to this challenge (not to mention access permissions to maintain one master working drawing for accuracy).
Wholesale & Distribution
Specifications sheets, order forms, proof-of-delivery documents, and accounts payables/receivables related to warehouse inventory create a hefty document load for wholesalers. All these records require updates and tracking for operations to run smoothly. Every process in the department potentially generates documents. With multiple offices and docks, large distributors benefit from digitized records:
- Digitization allows hassle-free storage of information sheets, maintenance documents, warranties, delivery receipts, and other sales documents.
- A document management system allows multiple users in different offices or warehouses to retrieve records instantly, enhancing inventory management and control.
- Automated workflows minimize labor, reduce the risk of human error, and provide access to information at the touch of a button.
Government Agencies
Government institutions exist as tiered bureaucracies across all sectors, creating overarching national and state transactions that filter down to congressional jurisdictions. Information accuracy and authenticity are essential for agencies controlling policy at all levels:
- Digitizing citizen records ensures information accuracy, efficient storage, and quick retrieval.
- Sensitive and confidential information is secured using information management systems with strict access controls.
- Document management systems enhance efficiency, productivity, and morale of knowledge workers.
- Government agencies achieve cost savings by freeing up massive storage spaces and through paper reduction.
K-12 Education & Higher Education
Public schools, private educational institutions, and universities process student transcripts, academic reports, teachers’ notes, class schedules, HR documents, scholarships, student publications, alumni records, and administrative paperwork. State regulations require institutions to store student records for a defined period. The volume of records increases year after year, necessitating an efficient storage and retrieval system:
- Academic records can be stored in digital formats for long periods without fear of fading, erosion, or smudging.
- Electronic files indexed in an efficient document management system are searchable, making retrieval faster than a manual search through files of paper records.
- Electronic copies of transcripts and test results can be shared easily between colleges and universities for admissions.
- A document management system ensures the confidentiality of sensitive, personal information.
Key Departments that Benefit from Document Scanning
Document scanning services help industries that traditionally relied on high volumes of paper documents and manual processes. But not every department in a company adds to the paper mountain the same way. Some departments within large enterprises (no matter the industry) will benefit more from digital transformation than others.
Accounts Payable / Accounts Receivable
The heaviest department for documentation? We think so! Accounts Payable and Accounts Receivable create documents as they come in and as they go out (invoices and checks). Timely compliance in this department is crucial to avoid penalties, late fees, and regulatory action. Where cash flows, so does tracking where and how that cash is flowing.
AP/AR must produce impeccable records for audits and lock-solid proofs in case of payment or delivery disputes. Electronic records are accurate, instantly retrievable, and conveniently stored in the Cloud. Checks are deposited digitally. Audits are simplified. Bills are paid. Invoices are automated.
Human Resources
The HR department houses employee applications, contracts, performance management, payroll, tax forms, compensation, and termination records. Sensitive personal information and confidential salary records are stored almost permanently. The larger the number of employees, the more complex it is to maintain records with accuracy. Digital transformation through a structured document management system improves accuracy, efficiency, timeliness, access, and confidentiality of HR records.
Contract Management & Purchasing
Third-party communication, estimates, invoices, requisition forms, and purchase orders create extensive paperwork that’s tedious and time-consuming for the contract management team. A document management system puts ease of use, accuracy, space-saving, accessibility, and cost-saving into software that delivers productivity efficiency in a few clicks.
Scanning Confidential Documents
Scanning paper documents creates digital files saved on a searchable database on the Cloud—accessing these electronic documents requires logins and passwords.
Electronic files create data risks from hackers or malware. When scanning confidential documents like health records, business plans, sensitive personal details, or financial documents, data security is the paramount concern.
Information leaks, data theft, or misuse of sensitive information is a potentially danger (but less so than with paper). Data protection regulations impose hefty fines on organizations for non-compliance of data privacy rules. Failure to protect confidential data is a veritable offence.
It’s no wonder then that professional scanning service providers layer multiple levels of security when scanning confidential documents.
Digital Security
Scanning companies invest time and money to prevent data breaches. Digital data security is an ongoing safeguard. As new security protocols mature, so do hackers and people with intent to break the security layers.
Here are some ways to enhance digital security:
- Restrict document access to the minimum number of employees/users required in the DMS.
- Use the latest cloud security protocols and best practices.
- Limit access to read-only rights for sensitive files.
- Enable document audit trails to monitor who has viewed, edited, and downloaded files.
- Use additional password protection for files saved to a PC or server.
- Consult an expert to permanently remove files from the hard disk and any backup media for any sensitive files copied to a disk or backup media.
Secured Premises/Physical Security
The best scanning service providers invest in secure facilities to store and scan documents. They keep confidential paper documents under lock and key and limit access to the premises to verified personnel only. They also protect server rooms with cameras, access codes, and alarms. The physical server location is known only to relevant individuals.
Employee Verifications
Scanning companies have a strict vetting process for every employee handling confidential data that includes background checks and police verification to maintain the highest ethical standards. The employees are also legally bound by confidentiality agreements and non-disclosure agreements to prevent malpractice.
Confidentiality & Non-disclosure Agreements
Professional document scanning companies routinely sign confidentiality agreements and non-disclosure agreements with their clients.
The agreements specify protocols about who will handle sensitive documents, how the documents are processed, stored, and destroyed after expiration.
Backfile Scanning vs Day-forward Scanning
Some paper legacy documents require long-term storage. These may be health records, financial transaction records, or government documents.
Archived documents retained by organizations over long periods take up valuable real estate.
Companies are moving to digital archival systems as they are instantly accessible, safe, affordable, and offer convenient cloud storage.
Backfile conversion is an efficient, high-speed scanning process that converts bulk legacy paper records into digital format. Benefits:
- Create a digital repository of all records in the organization that is easily searchable and accessible from any location or device.
- Mitigate the risks of loss or damage of old documents that contain vital information.
- Access valuable insights from past records to help make data-driven business decisions in the future.
An efficient backfile scanning project starts with assessing document inventory. The next step prioritizes vital records and scans them in order from most important to least important. An information management system ensures the scanned files are instantly searchable and accessible.
Once the legacy backlog is digitized, day-forward scanning ensures that any document that enters the organization is converted into digital format. This way, an organization’s records are instantly updated without creating a new backlog. All new physical documents are scanned, indexed, and imported to a record management system for permanent paperless storage and easy retrieval.
Day-forward scanning is a vital step that keeps paperless operations completely paper-free.
Using a Document Scanning Company vs Scanning your own Documents
Scanners and multifunction printers are commonplace in most offices today. Scanning a document on a desktop scanner does not require technical knowledge or training. So why should companies opt for a professional scanning services provider to handle a digitization project? Well, scanning projects are not always as easy as running a few pages through a desktop scanner. Before companies decide whether to outsource a scanning project or handle it in-house, these are factors to consider:
Volume of documents
How paper-intensive is the business? In-house document scanning will prove to be a time-consuming, labor-intensive, and expensive exercise for large volumes of paper. Transforming documents to digital every day requires speed as well as accuracy. Outsourcing the work to a professional scanning services provider is a better option. An experienced provider evaluates your digitization requirements thoroughly, plans the scanning project meticulously, and delivers the scanned records in the specified formats, with professional contrast and clarity, ready to go directly into your DMS—instantly.
Resource availability
Can you afford to hire a dedicated document scanner and buy a production scanner? High-quality scans are essential. High paper volume takes time to prep and scan. Sophisticated scanning equipment is expensive, and it is not feasible for every organization to purchase it for their in-house scanning needs. Besides, the more complex the scanning project, the more time and human resources are involved in it. A scanning company frees you from heavy investments into hardware and labor.
Expertise and accountability
A professional document scanning company employs experienced staff who process a variety of customer requests every day. They know the ideal document format, speed, style, and other aspects required for your organization’s needs.
With their experience and knowledge of professional hardware, they can recommend efficient solutions for turnkey document management. They also have a time-bound schedule for delivering the project. In contrast, if you handle the project in-house, you have to identify and train your staff, diverting them away from their everyday responsibilities. Reputed scanning companies sign agreements and non-disclosure clauses that make them accountable for document safety, data protection, and timely completion.
Project Cost
In-house scanning does lower the cost of the project in the short term compared to the expense of hiring an external document scanning vendor. However, you must consider how much it will cost to purchase and maintain the equipment in-house and deploy resources and time for the project internally. Much more expensive! A professional document scanning service provider, in contrast, will charge an up-front, itemized fee that outlines all the expenses you will incur.
A report by Future Market Insights indicates that enterprises are reducing documentation time by outsourcing document handling services.
The global document outsourcing services market is expected to rise steadily at a CAGR of 3% during the forecast period of 2020 to 2030.
Ultimately, your business priorities, budget, and timelines will help you decide whether to scan documents in-house or outsource the project to a third-party vendor. Maybe a hybrid approach works best for you (scan in-house for low volumes and outsource large projects such as backfile conversion). Whatever choice you make, monitor the process closely and exercise stringent quality control. After all, what good are digital documents if you can’t read them!
The Digital Mailroom—The Next Evolution of Document Scanning
You take care of backfile legacy records and you digitize day forward paper. But other companies don’t. They still work with paper. Organizations face a deluge of incoming mail from these companies every day. Legal documents, customer requests, claims, invoices, applications, grievances, checks—an overwhelming volume in different formats! Processing all this mail is a drain on expensive human resources. Mail must be distributed to the right teams and processed appropriately. Delays or misplaced documents lead to poor customer service, missed payments, and can even result in non-compliance penalties.
Is it possible for businesses to outsource this workflow? Yes, of course!
A digital mailroom is the next evolution of document scanning. An outsourced mail processing partner routes all incoming documents to a scanning facility, captures information electronically, extracts embedded files and attachments, and uploads converted mail into your document management system or ERP where relevant teams review and approve.
A digital mailroom is a progressive technique harnessing the best technology and strategy for efficient document management. It houses sophisticated equipment to ease tedious processes involved in sorting and distributing paper mail. For instance, a machine opens envelopes and removes staples from documents to prep them for scanning. This automation boosts the processing speed and reduces manual errors.
A digital mailroom has a positive impact on your business outcomes.
- As embedded attachments are automatically sorted and routed to the correct recipients in the appropriate format, your response time improves significantly. Customer queries receive immediate attention, and invoices are processed much faster.
- Pre-defined processes and workflows in the digital mailroom aid compliance and policy adherence. Documents are processed promptly and distributed to appropriate teams.
- Automated document management leads to better, faster communication with your internal stakeholders and also your customers. Over time, this creates a noticeable impact on productivity levels, ROI, and customer delight—a competitive advantage!
Digital mailrooms take document management, a mundane activity, and channels it into an innovative business productivity booster!
Glossary of Terms
Document Scanning
Using scanning hardware to convert a paper document into a digital file format.
Document Imaging
The digital image that results from scanning paper or microfilm to a digital document read by computers in formats like JPG, TIFF or PNG. Converting paper to digital using facsimile machines (fax) or photocopiers (scan-to-email) are also forms of document imaging.
Document Conversion
The process used to change (convert) paper into a digital file or convert a document from one file format to another. The resultant filename extension indicates the file type of the new file after conversion. For example, we may convert a file from the .DOCX (MS Word) file format into a .PDF format.
OCR
OCR stands for Optical Character Recognition, and refers to software that converts printed, typed, handwritten, or scanned documents into editable text that is recognizable by text editing software programs.
Indexing
Sorting digital files according to a predefined structure to facilitate instant and convenient data retrieval (search and find) in business processes.
Business process automation
Automating activities to achieve efficient business processes. Usually, activities that are repetitive in nature or processes that are time-consuming or that demand integration across applications are suitable for business process automation.
Archiving
Moving electronic data, documents, or images that are not frequently used to a storage area (physical cabinets or servers) for a specified retention period as required.
Document Management System
A Document Management System or DMS is a software application used to securely store digitized records or business data and instantly retrieve them, update them, and share them.
Cloud Storage
A remote server that securely stores data on the internet instead of on a computer housed onsite. This storage model makes the data accessible from any device or location. Cloud storage is efficient and affordable.
JPG
JPG or JPEG is an acronym for Joint Photographic Experts Group. It is the preferred format for saving and sharing photographs over the internet.
TIFF
TIFF stands for Tagged Image File Format. It is ideal for saving raster graphics (photos and graphics that aren’t vectorized line art) and exchanging them between applications. This image format is most commonly used in desktop publishing, medical imaging, and for sending documents via fax and email as there is no degradation in quality.
PDF or the Portable Document Format is a file format developed by Adobe to preserve an exact electronic copy of a printed document that you can save, read, print, or forward as an attachment through email. It is a standardized, universal format that is platform-independent, meaning everyone should be able to open it and read it.
Frequently Asked Questions
What is the best document scanner for a business?
As a business, when you decide to purchase a scanner, you look for efficiency in performance, price, and a good user experience. Canon departmental scanners are compact and feature-comprehensive, making them ideal for office use. With the ability to handle a large volume of documents, and precision in image capture, department scanners are a reliable day forward device to complement your document management system.
What is the best scanner for organizing documents?
For regular office use, a desktop or department scanner is the best choice for affordability and ease-of-use by multiple personnel. However, if you need high-volume scanning, OCR, third-party integration, or workflow automation, then a high-speed production scanner is recommended.
What does it cost to scan documents?
The cost of scanning documents varies widely, based on several factors: Are you using a professional scanning services provider or an in-house team? What is the volume of paper to be scanned? Do you require other services such as pickup, transportation, or installation of a document management system to handle the digital files? In-house projects will cost less but require time and upskilling of your staff. For large projects, additional charges for pickup, transportation, and storage may drive the project cost up.
Is scanning documents secure?
Organizations must follow best practices for the security of digitized documents. Use appropriate Document Management and Enterprise Content Management systems. These systems have stringent access controls to prevent unauthorized access to sensitive data. Data backups on Cloud storage make retrieval of lost or damaged documents affordable and quick.
How do you retrieve a scanned document?
Enter the filename or relevant keywords in the search function. Digital files are indexed or categorized using metadata, which are keywords related to the type of file or the content of the file. The search function makes files instantly retrievable in a DMS.
What is the best DPI for scanning documents?
DPI settings generally range from 150 DPI to 600 DPI. The higher the DPI you choose while scanning a document, the bigger the file size and the better the resolution of the output file. Choose the right resolution depending on the type of material. 200-300 DPI is an appropriate resolution for most documents.
Can you edit a scanned document?
It is possible to edit a scanned document. It depends on the file format of the scanned file. Remember that some file formats, like PDF, are designed to prevent the digital copy from being altered at a later time for security reasons. An image editing application can edit files in image formats like JPG, or TIFF. However, the kind of changes you can make to these images is limited. Scanned documents that run through an OCR program are available to be copied and pasted into other applications to be recreated or adjusted.
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Document Scanning Associations
- AIIM – The Association for Intelligent Information Management
- ARMA International
- IIMDA the Leading Document Management Industry Association
Start Scanning Your Documents Today
No matter your industry, all companies benefit from digitized documents, whether those files are archived, highly-confidential, or incoming. Using a document scanning company to scan your documents, including your mailroom documents, is the right move for productivity, security, cost savings, and employee happiness. Contact AMI about scanning your legacy and day-forward documents today.