PRINCIPLES OF BUSINESS HANDOUT #2

ELECTRONIC RECORDS MANAGEMENT

Computers are used for an ever-increasing range of business activities, including

communication, stock control, purchases and sales and so on. Organizations are sending and
receiving documents in a wide range of electronic formats, including:
- Word processed documents
- Digital images
- Online forms
- Emails
- Instant messages

Benefits of an electronic filing system:

- It reduces the physical space required for storing documents.
- Information is immediately available online to workers and customers.
- It reduces the number of staff that must be hired to manage records.
- It increases the speed with which documents can be located and retrieved.
- It ensures that only authorised persons are able to access records.

Limitations of an electronic filing system:

- Records may be lost if the computer system crashes.
- Some countries have not yet modified their laws to accommodate electronically stored
documents.

PROCESSES IN ELECTRONIC RECORDS MANAGEMENT:

1. RECORDS CAPTURE
Documents may be electronic or paper and may be on a variety of media, such as hard drives
or CDs. A paper document is captured by using a scanner to create a digital image that can be
viewed on the computer. Electronic documents are captured by importing them into the filing
system.

2. PROCESSING
Data input on a computer must be processed, that is organised, sorted and indexed. Processing
can either be in batches or in real time. With batch processing the data is gathered over a
period of time and then all the data is processed together. In real time the data are processed as
soon as they are input into the computer system.
Electronic document indexing involves associating a document with the search terms. This is
called tagging.
 3. STORAGE
Storage involves keeping the record securely so that it cannot be altered or destroyed. Some
storage media may become obsolete after time. For example, magnetic tapes and zip disks are
no longer commonly used. High capacity flash drives and external hard drives are now more
popular. Some organizations use online storage facilities as well.

4. RETRIEVAL
Retrieval is the process of accessing records that are stored in the system. Electronically stored
documents may be accessed by doing a search.

5. ARCHIVING AND DISPOSAL

Some business records may be archived or destroyed after a specific period of time. Documents
can be achieved on external media such as CDs, external hard drives or magnetic tape.
The electronic records management system is programmed with a schedule for the archiving or
disposal of documents after the specified periods have elapsed. Usually the system creates a
list of the documents that are past their retention period.

DATA SECURITY

This is concerned with:

- Ensuring that only authorised persons have access to files.
- Preventing tampering of files
- Ensuring that vital records are not destroyed.
- Protection of the computer system from malicious software such as viruses.
- Identifying persons who attempt these actions.

The electronic system can be used to identify the level of access for each file. Each person
must enter a username and password before the file can be accessed. Files should be backed
up regularly in case the system fails. Backing up is the process of storing the information on an
external medium.

SHARED DATABASES

Databases are organised collections of records. Databases can be shared among departments
and branches or externally with other organizations. Each department inputs data into the
central database. The data can then be accessed throughout the business.
ELECTRONIC FILE CONTROL SYSTEMS

Some organizations in which paper records are frequently accessed and borrowed have found it
feasible to invest in electronic file control systems. Each file is labelled with a barcode and the
file information is stored on the computer system. Each employee may also have an ID card
with a barcode. A barcode reader is used to scan the borrowed file and the employee’s card and
an out record is automatically generated on the computer system.
Automated systems may be used to generate and print reports showing the frequency with
which records are accessed, the status and location of each file and so on. The system may
also be programmed to automatically produce notifications when files have not been returned by
a specified time. Another advantage of an automated system is that it immediately shows
whether a person is authorised to view a file.