Overview and strategies for leading backfile conversion projects to a successful outcome.

1. Backfile Conversion: Best Practices
and Considerations for Electronic
Document Management
DATAMARK, Inc. White Paper in association with the Outsourcing Institute.
SUMMARY
The Digital Age is upon us. The need to convert paper documents to
digital files in pursuit of streamlined workflow and improved efficiency
presents a challenge for private companies and government agencies
alike. The process requires both digitization and organization of new,
inbound documents – traditional and electronic mail and facsimiles – and
the “backfile” digital conversion of what can be millions, even hundreds of
millions of existing paper documents. Addressing the process in a
strategic, planned fashion can make order from potential chaos.
Successful outcomes deliver ownership of a modern workflow solution
that serves the organization's needs going forward.
© The Outsourcing Institute

2. Introduction – A Government
Agency Goes Digital
When a state's Human Services
Department decided to undergo a
major document digitization project
in early 2013, officials understood
the effort would be advantageous for
citizens and employees alike with a
transformation of services based on
paper-based workflows to systems
using searchable digital images.
Clients of the agency would benefit
from faster response times, and staff
would avoid the headaches of
having to search through and
manage cumbersome paper-based
case files. But the transformation
also meant committing to a system
of Electronic Document
Management (EDM) incorporating
millions of legacy paper documents.
The paper-to-digital backfile
conversion required the creation of a
holistic process solution that
analyzed every document type –
from structured agency forms, to
unstructured supporting documents
– and created a model that
determined how each – and all –
would be handled. Some 100 million
paper documents were transported
in bankers boxes from locations
throughout the state to a service
provider's secure facility for
scanning, imaging, indexing and
storage. In the end, the agency
gained a modern solution for
document storage, as well as
anywhere, anytime document
accessibility.
Government agencies and private
corporations alike are realizing the
need – and requirements – to free
themselves from the physical and
fiscal burdens of paper. While the
concept of a “paperless office” might
present a seemingly insurmountable
challenge for some organizations,
making strategic steps toward
digitization and EDM does not.
Given smart practices and strategic
planning, EDM not only can create
an efficient document management
solution, it can present a model for
future document handling. For those
organizations committed to EDM,
digitization is a powerful change
agent that unlocks efficiency,
convenience and improved
customer service in ways paper
never could.
From the Promise to Reality of
“Paperless”
In some organizations, “paperless”
is difficult to achieve. Paper enters
the process flow from many points.
Some are bound by law or
regulations to retain paper, even
after originals have been digitized.
For others, digitization includes
hand-written patient notes, X-rays or
other media in the case of a
healthcare organization, or largeformat renderings for an
architectural firm. Executives or
managers with such companies
often believe their enterprise's
processes are the most complicated
and that digitization is impossible.
And frankly, many of us like the feel
of paper in our hands.
Obstacles may seem
insurmountable. But they can be
overcome with careful planning, and
by starting with a single paperbased process within an
organization, rather than confronting
the overwhelming task of
transforming an entire enterprise at
once.
© The Outsourcing Institute
2

3. Any transition to EDM often begins
with an end-to-end process
analysis conducted by experienced
business engineering consultants
of a global business services
provider.
At DATAMARK, for example, the
Business Engineering Department
is engaged to conduct a
comprehensive Business Process
Analysis (BPA) as a first step in
reviewing, evaluating and
proposing a backfile scanning and
EDM solution. The BPA uncovers
the “pain points” within the client's
paper flow. These could be a lack
of accountability or verification of
the presence or process for
arriving documents. Or they could
be document bottlenecks and
backlogs. Among the areas
evaluated and questions asked
are:
• What are the most effective EDM
systems for the organization's
process? Some companies may
need only one; others, like
healthcare, may need several,
including an Electronic Health
Records system, an
ePrescription System, or an
eInvoicing system, for example.
• What will work best? Can the
organization outsource backfile
scanning offsite to a service
provider, or does it need to be
completed in-house?
• What's the deployment
environment? Does the
organization have the network
bandwidth needed for the EDM
system? Are desktop hardware
and legacy systems able to
integrate with the system? Does
the organization need a mobile,
tablet-based environment?
Every evaluation will be different,
with the business engineering
team developing solutions that
meet the output needs of the client.
The goal is to transform the
organization in a way that is as
non-disruptive as possible – today
and in the future.
The consulting team should help the
organization better understand the
value of digitization – and mitigate
the risk of storing millions of paper
documents. Questions to ask
include: What documents have
inherent business value?
Do legal imperatives necessitate
keeping certain documents?
What future costs may be borne
from lost productivity or storage of
files that otherwise can be digitized
and the paper documents
disposed of?
A Business Process Analysis leads
to the development of a formal work
plan for the project. This will serve
as the master schedule for all teams
involved, both internal and external.
The business engineering team will
identify project stakeholders in
pursuit of development of a
consistent workflow that will endure
through the duration of the project
and beyond. Consulting teams also
encourage a cooperative effort that
crosses disciplines – such as
operations, business engineering,
software development and IT, for
example. With gates open and
“silos” gone, communication is
enhanced.
The Technical Side of Paper
Capture
At its most visible core, back file
conversion is the transition to a
digital workflow that requires the
capture of legacy paper – important
files, records and forms that have
been warehoused for years and
which must be imported into the alldigital workplace.
Because solutions are digital and
automated, consultants can
establish rules based on the types of
documents clients process. The
consultant helps define needs by the
specific client and create a model
that is dependable, measurable,
relatively error-proof and within a
defined workflow and comfort level.
Over time, the more clients come to
realize the control they gain in the
paperless process, the more they
embrace it.
© The Outsourcing Institute
3

4. Not all digital initiatives call for
backfile conversion. With some, a
"day forward" approach will suffice.
This means that all future
documents will be scanned as they
enter the workflow. The organization
gradually will phase out paper as it
reaches its scheduled date for longterm retention and storage or
destruction.
Regardless of the approach, not all
documents will be scanned.
Documents instead may be purged,
organized and/or prepared for
handling. This can be labor intensive
and require involvement of various
individuals. The goal, though, is to
reduce or eliminate as many human
touch points as possible – as well as
the individual decision-making
involved in choosing what should be
scanned. By taking advantage of
available automation technologies,
human error can be reduced.
File organization is an opportunity to
introduce logical steps to the
process. For example, a healthcare
claim can be scanned, organized,
and put in order with supporting
documentation that prepares a
smooth path for review and
decision-making.
Document preparation is as it
sounds. Papers often require the
removal of staples or paperclips,
copying of odd-sized documents –
like a physician's prescription,
envelopes or “sticky” notes, and the
flattening of dog-eared or folded
pages. Smart preparation ensures
images are readable, equipment is
protected and delays caused by
malfunction or maintenance are
reduced as much as possible.
Additionally, the use of Optical
Character Recognition (OCR)
technology during the scanning
process allows for the capture of
vital information, including machinewritten (and in many cases handwritten) information in form fields,
such as names, dates, addresses,
ID numbers, invoice amounts, etc.
Once read, they can be
automatically indexed, reducing the
need for manual keying by a data
entry operator.
Other Considerations for Backfile
Conversion Projects
A paper-to-digital conversion can
take many forms, from short-term,
in-house projects that are easily
managed to large-scale endeavors
that require months of planning and
engagement with outside
consultants and service providers.
Regardless of the scale, it's best to
begin a backfile conversion project
with sufficient knowledge to allow
for thoughtful review, analysis and
preparation for an implementation.
To lead a backfile conversion to a
successful outcome involves careful
planning with an eye for finding
opportunities to improve existing
processes. Below, we share some
important project considerations:
• Perform a cost analysis to
determine whether to scan inhouse or to outsource. Identify all
costs: labor, utilities, facility space,
equipment, maintenance, supplies
and any other costs associated
with handling the backfile
scanning project in-house.
© The Outsourcing Institute
4

5. • Consider the kind of preparation
needed for your documents. Are
there paper clips and staples that
need to be removed, sticky notes
that need to be copied and
organized? Do they need to be
sorted in a certain way? Lots of
document preparation will affect
the speed and cost of the project.
• Understand the technical
requirements for compatibility with
your content management system.
Define the acceptable formats for
TIFF or PDF images before
beginning the project.
• Understand your indexing
requirements so images are easily
findable and searchable. Define
the number, length and type
(alphabetic, numeric, mixed) of
fields to be indexed per document.
Will you require double keying
(higher accuracy, but costs more)
on indexing?
• Visit your potential outsourcer's
facilities. Make sure the provider
has the technical capability for the
job. Do their scanners have the
required throughput capability? Is
there a barcode
scanning/document tracking
system in place? Does the
scanning software meet your
requirements for image clean-up,
such as straightening, despeckling
and deskewing?
• Establish quality guidelines.
Images should be as readable as
the original document. Make sure
to do test runs and make
corrections necessary to ensure
your quality goals are met. Quality
control should also address
indexing--a quality image isn't of
any use if it cannot be found.
Conclusion
With the arrival of the Digital Age,
companies are discovering the need
to transform paper to digital media.
As a result, they're realizing
improved workflow, greater
efficiency in the handling of new,
inbound documents as well as vast
stores of existing documents.
Backfile conversion of years of
retained paper holds the potential to
transform a chaotic workplace to
one that enjoys a modern workflow
solution ready to serve the
organization's needs today – and in
the future.
About DATAMARK
DATAMARK is a leading provider of multichannel customer contact center
services, digital mailroom and mail center management, data entry,
document processing services and business process re-engineering services
for Fortune 500 companies, government agencies and other large
enterprises.
Founded in 1989, the company is the strategic business process outsourcing
( BPO ) partner for companies across numerous industry sectors, including
healthcare, insurance, banking and financial services, and transportation and
logistics.
DATAMARK offers on-site, onshore and offshore processing facilities,
delivering enterprise content management (ECM) and
process-automation technologies and solutions to help organizations
improve efficiency and profitability in all business functions.
© The Outsourcing Institute
5

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