# The problem with paper-Magazine
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2017-06-02
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: Manual Processes Hindering Digital Transformation for
Meta Description: Discover how manual, paper-based processes hinder digital transformation, impacting employee productivity, financial health, and environmental sustainability.
URL: https://financedigest.com/magazinethe-problem-with-paperhtml

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**A reliance on manual, paper-based processes to store, manage and distribute crucial data continues to hold back many companies on their digital transformation journeys, says Steve Mulroy, Portfolio Marketing Manager, Information at Kodak Alaris**

![Steve Mulroy](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/steve-mulroy-200x300-1736843785767-compressed.jpg)

Steve Mulroy

Paper is a pain for businesses. Additionally, and perhaps more importantly to CIOs and CFOs, a dependence on paper can have a negative impact on a business’ [balance sheet](https://www.financedigest.com/ecb-policymakers-back-jumbo-rate-hike-differ-on-balance-sheet-cut.html "ECB policymakers back jumbo rate hike, differ on balance sheet cut"), both directly and indirectly.

For example, many organisations have no [clear system](https://www.financedigest.com/sales-growth-of-automotive-clear-vision-systems-market-is-driven-by-production-of-new-vehicle.html "Sales Growth Of Automotive Clear Vision Systems Market Is Driven By Production Of New Vehicle") in place for storing critical documents, leaving them distributed across numerous tools, systems and people, and they are almost always difficult to locate. Employees can spend a large part of their working day wading through paperwork in the hunt for critical information, which can translate to thousands of man-hours wasted per year.

This problem will only get worse as the amount of information and data employees receive, continues to increase. In its Digital Universe study, IDC predicted that the amount of data on the planet is set to grow ten-fold by 2020 to 44ZB. And [research conducted by EDM Group revealed that 56 per cent of people claim that they now receive more information at work](https://www.financedigest.com/new-research-suggests-over-13-million-brits-were-inadequately-managed-while-working-remotely-2.html "NEW RESEARCH SUGGESTS OVER 13 MILLION BRITS WERE INADEQUATELY MANAGED WHILE WORKING REMOTELY*") than they did three years ago, with 18 per cent saying they have seen an increase of more than 50 per cent.

An obvious misuse of an employees’ time – the financial implications are significant, particularly when that team member could be focusing on other revenue-generating business activities instead. According to PricewaterhouseCoopers, the average cost of locating a misfiled document is $122 and the cost of reproducing a document is $220!

While we’re talking about a drain on resources, organisations spend thousands collecting and storing paper documents each year.Aside from the obvious limitations on office space, the sums can quickly add up,PricewaterhouseCoopers [estimates that on average](https://www.financedigest.com/fine-chemicals-market-is-estimated-to-witness-an-average-pace-with-a-cagr-of-5-4-during-the-forecast-period-2022-2032.html "Fine Chemicals Market is estimated to witness an average pace with a CAGR of 5.4% during the forecast period 2022-2032"), a company spends $25,000 to fill,and an additional $2,100 per year to maintain,a single filing cabinet.

Elsewhere, one of the biggest problems with paper is that gaining approval from multiple stakeholders often takes so long that it [delays progress on important](https://www.financedigest.com/britain-delays-full-post-brexit-import-checks-until-late-2023-2.html "Britain delays full post-Brexit import checks until late 2023") projects. Workers are forced to use methods such as email, courier, or overnight delivery, to [secure approval](https://www.financedigest.com/exclusive-amazon-to-secure-unconditional-eu-approval-for-8-5-billion-mgm-buy-sources.html "Exclusive-Amazon to secure unconditional EU approval for .5 billion MGM buy – sources") on important documents, which again, add significant costs. There’s also the risk that emails are overlooked, lost or blocked by internal firewalls.

And don’t forget the sheer waste, and its effect on the environment. A survey conducted by research firm Loudhouse, found that the average employee uses 10,000 sheets of paper per year, and as many as 6,800 of those sheets end up in the rubbish bin.

Another problem is that critical business [information is often locked in with certain individuals or stored in disparate systems](https://www.financedigest.com/the-cardiovascular-information-systems-market-is-expected-to-grow-on-a-persistent-note-in-the-future.html "The Cardiovascular Information Systems Market is expected to grow on a persistent note in the future") across the organisation. This is a tremendous risk to businesses – without transparent access to critical data, [companies can find themselves being held hostage to events outside their control](https://www.financedigest.com/hospital-acquired-infection-control-market-global-leading-companies-analysis-revenue-trends-and-forecasts-2027.html "Hospital Acquired Infection Control Market Global Leading Companies Analysis, Revenue, Trends and Forecasts 2027"). The Paperless Project cites an alarming statistic that more than 70 percent of today’s businesses would fail within three [weeks if they suffered a catastrophic loss](https://www.financedigest.com/european-stocks-rise-on-bargain-hunting-erase-weekly-losses.html "European stocks rise on bargain-hunting, erase weekly losses") of paper-based records due to fire or flood.

**Some other indirect costs of paper-based processes**

- Siloed, unusable data: Information doesn’t get integrated into centralised systems, and can’t be acted on
- Lost revenue: When paper is lost or misplaced, it prevents decision makers from analysing business performance, slows down the deal closure process and could potentially incur a fine from the Information Commissioner’s Office (ICO) if there is a [data breach](https://www.financedigest.com/when-not-if-why-a-data-breach-response-plan-is-more-important-now-than-ever.html "When not if: why a data breach response plan is more important now than ever")
- Unproductive employees: Staff [spending time looking for information are not being productive and the overall cost](https://www.financedigest.com/cost-of-living-crisis-consumers-keep-spending-for-now.html "Cost of living crisis? Consumers keep spending for now") to the business is increased
- Poor customer experience: Faster customer on-boarding translates into growth **.**

Manual processes delay [communications and customers who have a ‘low-effort’ experience](https://www.financedigest.com/one-app-for-a-total-communications-experience.html "One App for a Total Communications Experience") are more likely to buy again

While it appears that organisations are aware of the problems with paper and looking to achieve a [competitive advantage](https://www.financedigest.com/turning-the-burden-of-compliance-into-competitive-advantage.html "Turning the burden of compliance into competitive advantage") by capturing information as close to the point of origin as possible – 41 per cent of respondents to a study by AIIMsaid that they are usingOptical Character Recognition (OCR) in some form – many are still lost when it comes to developing a digital strategy to document management. Only 17 per cent of organisations say they work in a ‘paper-free’ environment. Furthermore, 20 per cent say paper consumption is increasing and a tiny three per cent of companies questioned have a comprehensive multichannel system to aggregate and process information from paper documents, electronic communications and social media.

So, what’s the answer? Data capture and robust automated information management can be a lifejacket when you are drowning in paperwork. Where Kodak Alaris excels is in helping organisations to capture information from paper and other sources right at the point of origin. Web-based capture, often referred to as cloud capture or thin client capture, streamlines processes, delivering increased efficiency and overall business value. With thin client capture, businesses benefit from [reduced operating](https://www.financedigest.com/just-in-time-jit-and-lean-accounting-streamlining-operations-and-reducing-waste.html "Just-in-time (JIT) and lean accounting: streamlining operations and reducing waste") costs. IT support can be centralised making it easier to deploy, upgrade and administer with substantial savings, resulting in [higher profitability](https://www.financedigest.com/paypal-adjusted-margin-forecast-cut-eclipses-higher-profit-expectations.html "PayPal adjusted margin forecast cut eclipses higher profit expectations") and ROI.

Wireless scanners enable seamless connectivity through the office network or over Wi-Fi. [Equipped with standard drivers](https://www.financedigest.com/refurbished-medical-imaging-equipment-market-comprehensive-study-with-key-trends-major-drivers-and-challenges-2018-2026.html "Refurbished Medical Imaging Equipment Market: Comprehensive Study with Key Trends, Major Drivers and Challenges 2018-2026"), they can be easily and securely integrated within existing and legacy business applications and used alongside cloud- or web-based capture applications.

The AIIM study points to the [fact that improved search and share capabilities are the primary drivers of scanning and capturing technology investments](https://www.financedigest.com/rising-investments-in-renewable-power-generation-to-amplify-demand-of-substation-monitoring-system-market-fact-mr-report.html "Rising Investments in Renewable Power Generation to Amplify Demand of Substation Monitoring System Market: Fact.MR Report"). 43 percent of [businesses questioned say](https://www.financedigest.com/a-uk-covid-lockdown-would-be-wrong-right-now-business-minister-says.html "A UK COVID lockdown would be wrong right now, business minister says") the biggest benefit of going paper-free is fast customer responses, while other advantages include increased productivity and improved compliance.

When non-digital information, practices and processes are converted into digital formats, organisations see increased agility, [improved productivity](https://www.financedigest.com/demand-for-meatless-products-and-vegetable-proteins-is-expected-to-improve-nutritional-yeast-market-sale.html "Demand For Meatless Products And Vegetable Proteins Is Expected To Improve Nutritional Yeast Market Sale") among employees, better customer service and long-term cost savings. Businesses operating in regulated environments are also turning to [technology to assist](https://www.financedigest.com/robotic-rehabilitation-and-assistive-technologies-market-to-witness-comprehensive-growth-by-2019-2027.html "Robotic Rehabilitation and Assistive Technologies Market to Witness Comprehensive Growth by 2019 – 2027") with compliance.

The ever-increasing flood of data is one of the greatest [opportunities facing](https://www.financedigest.com/new-kids-on-the-block-what-threats-will-neobanks-face-in-2022-and-where-will-the-opportunities-lie.html "New kids on the block: What threats will neobanks face in 2022, and where will the opportunities lie?") businesses today. How it is managed can have a huge impact on the future of an organisation. Investing in sophisticated information management solutions can be the first step for many on the [road to digital transformation](https://www.financedigest.com/is-the-road-to-data-transformation-slowing-digital-transformation.html "Is the road to data transformation slowing digital transformation?").

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“Original publication in Finance Digest Issue 1 https://www.financedigest.com/finance-digest-print-magazine/”
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