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CPA's Guide to Document Image Processing University of Mississippi eGrove American Institute of Certified Public Guides, Handbooks and Manuals Accountants (AICPA) Historical Collection 1998 CPA's guide to document image processing John Graves Jacqueline Justice Marge Cataldo Follow this and additional works at: https://egrove.olemiss.edu/aicpa_guides Part of the Accounting Commons, and the Taxation Commons Recommended Citation Graves, John; Justice, Jacqueline; and Cataldo, Marge, "CPA's guide to document image processing" (1998). Guides, Handbooks and Manuals. 869. https://egrove.olemiss.edu/aicpa_guides/869 This Book is brought to you for free and open access by the American Institute of Certified Public Accountants (AICPA) Historical Collection at eGrove. It has been accepted for inclusion in Guides, Handbooks and Manuals by an authorized administrator of eGrove. For more information, please contact [email protected]. • Kent Information AICPA Top Technology Series Services Graves Justice Cataldo The Document CPA ’ s The CPA’s Guide to Guide Image to Document Processing Image Processing John Graves, CPA Jacqueline Justice, Ph.D. Marge Cataldo, M.A. Published for the AICPA by Information Services You can view, print, search, or navigate this book with Adobe Acrobat Reader. To navigate, go to the fully linked Table of Contents and click on an item, or AICPA Top Technology Series pull down the Tools menu, click on Find, and input a keyword. When connected to the Internet, the URLs in Chapter 8 can be clicked to jump to the referenced site. For more information, click on the movie icon at the right. The CPA’s Guide to Document Image Processing John Graves, CPA Jacqueline Justice, Ph.D. Marge Cataldo, M.A. Published for the AICPA by Kent Information Services Title: THE CPA’S GUIDE TO DOCUMENT IMAGE PROCESSING Authors: John Graves, CPA Jacqueline Justice, Ph.D. Marge Cataldo, M.A. Copyright 1998. All rights reserved. Kent Information Services, Inc. 155 N. Water St., Suite 205 Kent, OH 44240 http://www.kentis.com [email protected] +1 330.673.1300 voice +1 330.673.6310 fax TABLE OF CONTENTS I Table of Contents Acknowledgements . .VII Chapter One • The Paperless Office . .1.1 Defining the Paper Chase . .1.2 BPR and ISO 9000 . .1.3 Electronic Document Management (EDM) . .1.5 Document Image Processing (DIP) . .1.6 DIP: A Case Study . .1.7 New York Central Mutual Fire Insurance Company . .1.8 Creating Management Goals . .1.10 Implementing the System . .1.14 The FileNET System . .1.15 Costs and Benefits . .1.16 The Role of the Accounting Professional . .1.17 Learn More About Current Industry Trends . .1.20 Executive Summary . .1.24 Chapter Two • The Business Case for DIP . .2.1 Typical DIP Benefits . .2.2 Reduced Costs . .2.3 Improved Productivity . .2.5 Improved Customer Service . .2.6 Reduced Errors . .2.7 Improved Management and Control . .2.8 Compatibility with Existing Systems . .2.8 II TABLE OF CONTENTS Identifying Problems and Solutions . .2.10 Worksheet: Identifying Problems and Solutions . .2.11 Some Common Pitfalls . .2.12 Planning the Project . .2.12 User Friendliness . .2.15 Security . .2.16 Legalities . .2.17 Consult With the Pros . .2.18 Avoiding Common Pitfalls . .2.20 Worksheet: Avoiding Common Pitfalls . .2.21 DIP in Action . .2.22 State of Kansas DMV . .2.22 Empire Blue Cross/Blue Shield . .2.23 Epson Computer . .2.26 Executive Summary . .2.27 Chapter Three • Understanding DIP . .3.1 Understanding Digitized Images . .3.1 Types of Images . .3.2 Resolution . .3.3 Color . .3.5 Overview of DIP Systems . .3.7 Capturing Documents . .3.10 Indexing Documents . .3.17 Storing Documents . .3.21 Retrieving Documents . .3.28 Network Considerations . .3.32 Assessing DIP Requirements . .3.33 Worksheet: Identifying DIP Requirements . .3.34 Executive Summary . .3.35 TABLE OF CONTENTS III Chapter Four • Selecting DIP Tools . .4.1 Integrated DIP Suites . .4.2 Westbrook Technologies’ File Magic . .4.3 FileNET’s Panagon IDM Desktop . .4.8 PC DOCS’ DOCS Open . .4.11 Assessing Other System Tools . .4.15 Scanners . .4.15 Imaging Software . .4.22 Image Editing Software . .4.25 Considering Storage Options . .4.28 Developing Selection Criteria . .4.33 Worksheet: Choosing DIP Products . .4.34 Other Vendor Resources . .4.35 Executive Summary . .4.36 Chapter Five • Web-Enhanced Document Processing . .5.1 Understanding Web Technologies . .5.2 Transmission Control Protocol/ Internet Protocol . .5.2 Clients and Servers . .5.4 The World Wide Web . .5.6 Web Servers . .5.8 Web Browsers . .5.9 Web Programming . .5.11 Benefits of Web-Enhanced Systems . .5.12 Compatibility with Intranets . .5.12 Remote Access for Staff . .5.13 Remote Access for Clients, Customers, and Business Partners . .5.13 Ease of Use . .5.15 IV TABLE OF CONTENTS Examples of Web-Enhanced Systems . .5.16 OpenText’s Livelink Intranet . .5.16 Westbrook Technologies’ Fortis PowerWeb . .5.19 Intranet Solution, Inc.’s Intra.doc . .5.23 Web Security Issues . .5.25 IP . .5.26 TCP . .5.28 Firewalls . .5.29 Executive Summary . .5.33 Worksheet: Do You Need Web-Enhanced DIP? . .5.34 Chapter Six • Planning Your DIP Project . .6.1 The DIP Team . .6.2 Developing a Written Plan . .6.4 Needs Analysis . .6.5 Site and Resource Analysis . .6.8 Cost/Benefits Analysis . .6.11 Worksheet: Cost Estimate Worksheet . .6.13 Document Analysis . .6.14 System-Use Policy . .6.15 The Pilot Project . .6.15 Testing and Adjustments . .6.16 Full Implementation . .6.17 System Support . .6.18 Executive Summary . .6.19 Worksheet: Project Planning Worksheet . .6.20 TABLE OF CONTENTS V Chapter Seven • Security and Administration for DIP Systems . .7.1 Physical Security . .7.2 Data Backup . .7.3 Computer Viruses . .7.8 Document Security . .7.12 Document Accuracy . .7.12 Document Version Control . .7.14 Document Authenticity . .7.16 User Controls and Access Rights . .7.18 Passwords . .7.18 Worksheet: Password Security Checklist . .7.21 Access Controls . .7.23 Executive Summary . .7.26 Sample Audit Checklist for EDM System Components . .7.27 Chapter Eight • Internet Resources for Document Image Processing . .8.1 Using Search Engines . .8.1 Refining Your Results . .8.4 Document Image Processing Resources . .8.9 DIP Hardware . .8.9 DIP Software . .8.11 General DIP Resources . .8.15 Networks (General) . .8.18 Security . .8.26 Executive Summary . .8.33 VI TABLE OF CONTENTS ACKNOWLEDGEMENTS VII Acknowledgements We would like to thank the following individuals and organizations who contributed their knowledge, skills, and time to the creation of The CPA’s Guide to Document Image Processing: Scott Stillisano, Webmaster and graphic designer, who is responsible for page layout and design for Kent Information Services, Inc., publications. Penny Graves and Christa Stalnaker, who coordinate fulfillment and shipping of Kent Information Services, Inc., products. Lisa Allen, editor, who authors and edits various Kent Information Services, Inc., publications, and who provided the New York Central Mutual case study. Steve Cembrinski, vice president of operations for New York Central Mutual Fire Insurance Company, who generously shared his expertise and experiences. Marketing and public relations staff members from Westbrook Technologies, PC DOCS, ISYS, and FileNET, who provided important product demonstrations and allowed us to include useful screen shots of their DIP products. The American Institute of Certified Public Accountants, who allowed us to reprint the auditing checklist in Chapter Seven. March 31, 1998 John Graves, CPA Jacqueline Justice, Ph.D. Marge Cataldo, M.A. VIII ACKNOWLEDGEMENTS THE PAPERLESS OFFICE 1.1 Chapter One The Paperless Office Today’s business environment is changing. Nowhere are these technological advances more pronounced than in the area of document management. Experts agree–the move toward Electronic Document Management (EDM) is a natural evolution for any paper-intensive business. Accounting systems, bank loan applications, and insurance claims processors are a few examples of paper-driven enterprises that are exploring EDM in its many forms, including Document Image Processing (DIP). Even so, the amount of paper generated by businesses today is reaching an all-time high. In fact, there are myriad businesses that specialize in building facilities with one purpose–to store paper documents, pictures, microfilm, microfiche, and other such bits and pieces of valuable information. As we gear up for the millennium, the business that wants to retain its competitive edge must consider alternative methods of managing information and the mountains of paper we produce to create, track, and share information. And accounting professionals must be ready to help their organizations and their clients to face the challenges posed by document management. By considering the topics presented in each chapter of this text, you will master various concepts related to Document Image Processing technology. Along the way, you will consider the benefits these technologies can offer your organization, and how best to assess your organization’s needs, as well as the needs of your clients. But before we explore the details of DIP and DIP systems, let’s spend some time considering selected aspects of the 1.2 THE PAPERLESS OFFICE business environment in which this technology is evolving. By way of introduction, we will address the following topics: • Defining the paper chase. • BPR and ISO 9000 initiatives. • Electronic Document Management (EDM). • Document Image Processing (DIP). • The role of the CPA. • Current industry trends. Defining the Paper Chase Paper–it’s an essential part of our lives. From the smallest offices to the largest, we are often surrounded (if not buried) by reams of paper. We amass stacks of notes, reports, photocopies, printouts, newsletters, faxes, memos, and post-it notes, to name a few. Even in this, the electronic age and the era of the Information Superhighway, our desktops, desk drawers, and filing cabinets are glutted with paper. Why? Well, for one thing, it’s human nature to cling to what’s familiar. And paper is certainly familiar.
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