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Knowing Your OrganizationsGoal's Before Choosing a ProductBrian DirkingApril 9, 2009

Records Management Software Selection

• Information and the Economy• The New Role of Records Management• Knowing Your Organization• What Can Be Improved?• Features• Evaluation Process• Making the Case• How To Succeed

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“Effective information management will be critical in the next decade, differentiating those enterprises that will implode under the infoglut from those that

will use it to dominate the global economy."

Gartner, June 2006

Source: Gartner; June 2006; Spotlight on Enterprise Information Management

A Tough Economy Brings New Opportunities

How do we thrive in the midst of an economic downturn?

• Demonstrably lowering costs• Being more competitive by fostering speed and

transparency in decisions• Lowering risk• Preparing for additional regulatory requirements

The New Role of Records Management

The Pendulum Swings

• Patrick Oot, a lawyer for Verizon

“Almost every case involves e-discovery and spits out ’terabytes’ of information... In an ordinary case, 200 lawyers can easily review electronic documents for four months, at a cost of millions of dollars.”

• The Economist: http://www.economist.com/business/displaystory.cfm?story_id=12010377

Content Retention

• To persuade business unit leaders of the necessity for effective document retention, a large chemical firm’s legal department conducted an internal cost assessment of a 3-year litigation project. Their findings:

• They reviewed 75 million pages of text during the 3-year period.

• More than 50 percent of the documents they reviewed were out-of-date and should have been deleted.

• The cost of reviewing out-of-date documents amounted to $12 million.

• How much money would your organization save if you could target your outdated content, and remove it?

What is a record?

• Vital piece of history of how we do business• Licenses, insurance policies

• Emails

• Documents

• Website

• Information Explosion – Facebook, blogs, wikis, discussion boards, chat, IM, text messages

• All of these are subject to discovery

• Therefore, we want to manage retention on information we might not consider a record

Other Data

• MS Outlook - Email• Content Management

Systems – Documents, Images• HR Systems - Employee

Records• CRM Systems - Customer

Records

People may own the operation of these applications, but they

do not own the data.

Information Universe

• We have defined the information universe for our organization

• Any information is fair game for records managers

Knowing Your Organization

Know Thyself…

• Socrates • Pythagoras • Chilon of Sparta (Chilon I 63, 25) • Heraclitus • Solon of Athens • Thales of Miletus• The Matrix

Organization Goals

• Make information findable and improve business processes

• Ensure compliance and reduce risk by controlling information retention

• Empower legal counsel and reduce costs by enabling e-Discovery

• Provide long-term archiving of physical and electronic assets

What are the processes?

• What is working?• What is not working?• What is the cost?

• Invoice processing• Employee on-boarding• Customer support calls• Partner applications• Purchase and warranties• Contracts management

Process Improvement

• What improvements can we make to these processes?

• What are the costs of those improvements?

• What are the potential upsides?

• Understanding this business case will enable us to better choose a system that is suited to our issues and requirements

• 5 photocopies created

• Routed to 5 departments

• Contract received

Record Ownership

• Who owns the records?• Who will sign off on destruction?• Who will actually perform destruction?

IT Landscape

• What are your IT department skillsets and preferences?

• Which OS?• Which database?• What development

platforms?

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Features

Key Physical Records Mgmt. Features

• Space Management• definition of warehouse layout• searching for empty space• reserving space • tracking occupied and empty space

• Bar Code Reading / Writing• need to productize• label printing

• Circulation Services• reserving and checking out physical content• maintaining a due date for checked out items• sending notification when overdue

• Charge-backs• track charges for actions within warehouse • generate reports indicating how much is owed by different entities (e.g.,

departments).

Physical/Electronic Records

• Differences between physical and electronic records management

• Lots of the same categories/classes• Physical traits to manage – barcodes, checkout,

chargebacks, space management• Full text searchability of electronic records• Instant aspect of electronic records – categorization,

holds, disposition• Multiple access points

Core Records Management Features

• Customizable metadata• Screening/searching• Placing holds/layering holds• Import – files, retention plans, conversion• Classification• Retention management of non-records• Archiving• Reports, Custom reports• Audits• Collection, holds, export

Other Considerations

• Training• Maintenance costs• Average deployment cycle• Partners• Language Support

Retention ManagementMore than a deletion date

• Retention policies combine events and actions– Events

• Content expired (e.g. a contract)• Usage statistics (e.g. document has not been accessed in 18 months)• Business event (e.g. environmental impact filing)• Content life cycle event (e.g. new revision checked in)

– Actions• Delete• Notify author• Archive• Move• Delete revisions• Revise

Multi-Schedule - Healthcare• A publicly held hospital in California is subject to many

• HIPAA• Records must also be retained for six years, two years after a patient's

death • Medicare Conditions of Participation, section 42 CFR 482.24 (b)

• Retain medical records for five years • State of CA Welfare and Institutions Code section 14124.1

• Three-year retention period for records• Department of Labor regulation 29 CFR 516.6

• Employment and earnings records for two years.• Employment discrimination complaints for three years

• Internal Revenue Service • Tax records for four years

• Sarbanes Oxley Section 103(a)(2)(A)(i)• Audit work papers for seven years

• Occupations Safety and Health Administration (OSHA)• Keep records of both medical and other employees who are exposed to

toxic substances and harmful agents for thirty years

DOD 5015

• Organization records series

• Organizational file plans

• Organization disposition instructions

• Retention calculation

• Access controls

• Security classification markings

• Management of records stored in electronic formats

• Management of emails and attachments in electronic formats

• Linking of records to supporting materials

• Tools to aid the search and retrieval of records

• Records destruction in a manner that prevents recovery

• Freedom of Information Act (FOIA)/Privacy Act workflow requirements

• Vital records review cycles• Additional metadata, including e-mail,

PDF, digital photographs, images and Web records

• Greater data security and integrity• Capability to create alerts and notifications

regarding changes in metadata fields• More automatic linking requirements• Capability to restrict metadata access

based on the contents of fields• Tools to support RMA-to-RMA

interoperability• Additional transfer requirements• Data discovery requirements• Interface and behavioral requirements for

integration with electronic document management systems

Versions 1 and 2 Version 3

User Adoption

• Most companies have tried to install RM systems, and retrain users in how to author content

• Costly – new licenses, throwing away old licenses, training costs

• User adoption is the biggest barrier to good records management

Categorizing ContentMetadata Driven

• Content can be matched to retention policies based upon metadata

Categorizing ContentMetadata Driven

• Content can be matched to retention policies based upon metadata

• Retention policies can be assigned by information such as which folder a user saves information into

Categorizing ContentUser Driven

• Content can be matched to retention policies based upon metadata

• Retention policies can be assigned by information such as which folder a user saves information into

• Users can select policies when they create and save documents

RM in Content Management Systems

• Allow records management features to be implemented in content management systems

• File plans, retention schedules, discovery, placing holds, disposition

• Anybody see a problem with that?

• Either you have records manager who is trained in administering many systems, or you have records managers who each manage their own systems.

• How do you coordinate file plans, retention schedules, discovery, placing holds, and disposition?

Federated Records Management

• Allow authors to create content as they usually do• Store it where they do – file shares, document

management systems, SharePoint• Harvest that content on a regular basis• Do you copy or move that content?

• If you copy it, you have two copies, and upon disposition you still have the content around

• If you move it, you have angry users who can’t find their content

In Place Records Management

• Allow content to remain in system where it was created

• Monitor that content and categorize it according to the file plan

• If it’s a record, keep the file from being deleted• If the system cannot relinquish that control, have a

backup strategy• Upon disposition, take action on the file

Single Console

• Records management across all your systems • Email• document management• physical records

• Single place to • perform discovery• place holds• perform disposition

Shared Content

• What about content outside of our organization?• M&A, board information, partners, employees taking

work home?• Control who can view/print/copy• Revoke access at any time• Audit usage• Ensure content updates• Disposition of remote content• Clawbacks

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Evaluation Process

Organization Processes

• What are your organizations processes around:• Contracts• System Requirements• Pricing and Billing• RFPs

What will we need to evaluate?

• RFP/RFI• Demonstration• Pilot• Consulting• Training (Admin and End User)• Support contract

RFPs

• Keep it to the point• Nobody wants to fill it out, nobody wants to read it• Should weed out some vendors• Focus on your goals – cost cutting, e-discovery, user

performance, long term archiving

• Why should you not put out an RFP in March, June, September, or December?

Demonstrations

• When you have narrowed down to 2-3 vendors• Get a demonstration showing your content• See the administrator’s experience• See the end user’s experience

Pilot

• How long?• How many employees involved?• What is the feedback process from users?• Have a mock discovery• Look at audit trails and certificates of destruction – will

these stand up in court?

Services

• Find out how much consulting, training, and support will be involved in • Your first implementation• Running your system thereafter

Beyond Implementation

• Will this system be useful to solve other problems within your organization?• Contract repository• Knowledgebase• Website• Regulatory submissions

Making The Case

ROI

• Stakeholders will want to see a strong ROI, especially in current economic environment

• Where are the areas we can show this?• Soft numbers – productivity• Hard numbers – call center times, discovery costs,

storage costs• Go back to the processes you reviewed and see what

you can improve• Don’t boil the ocean – pick an area to focus on

Retention Management and Storage

• Typical Content Growth Example company - storage, archiving, services costs

• Email• 10,000 user mailboxes, 100 MB per mailbox = 1 TB• 10 sent msgs/day, 25 rec’d @ 15 K per = 5.25 GB• Growth rate of 137%

• Documents• 10,000 users storing 2.5 GB documents = 25 TB• Create 1 MB/day = 100 GB• Growth rate of 100%

• Calculated at $50/GB annual storage/archiving/service cost

Storage Savings Storage, archiving, services

• Deleting content kept beyond it’s retention period can save up to 33% of your storage costs

• Based upon deleting 50% of your content that is beyond it’s retention period.

  Projected Storage Projected CostsManaged

Storage Savings

2007 26,000 $1,300,000 26,000 $0

2008 53,365 $2,668,250 40,365 $650,000

2009 80,730 $4,036,500 47,548 $1,659,125

Total $8,004,750 $2,309,125

Restoration CostsThe Cost to IT

• What would it cost to find everywhere content

exists in your organization – file system, email, applications, repositories, desktop, archives, backup tapes.

• What would it cost you to restore this content for review?

 Projected

ContentRestoration

CostsManaged

Storage Savings

2007 26,000 $15,843,750 26,000 $0

2008 53,365 $32,519,297 40,365 $7,921,875

2009 80,730 $49,194,844 47,548 $20,220,586

Total $97,557,891 $28,142,461

Discovery Costs

• Discovery costs are typically $1,800 to $2,500 per GB

• One time discovery on 20% of your data at $1,800 per GB

 

Projected Content Discovery Costs

Managed Storage Savings

2007 26,000 $9,360,000 26,000 $0

2008 53,365 $19,211,400 40,365 $4,680,000

2009 80,730 $29,062,800 47,548 $11,945,700

Total $57,634,200

Litigation Preparedness

• In case of litigation, it is important to have strong control over your content

• Know what evidence you have• Quickly search it for relevant information• Know the strength of your case – called “knowing hand”• Present organized data at discovery meetings

• Catalog of content, per new Civil Rules of Federal Procedure

Litigation Savings

• A typical $1B revenue company has 146 lawsuits per year.

• 25% of lawsuits are settled earlier based on “knowing hand” and immediate access to evidence (140 lawsuits x 25% = 35).

• Estimated savings approximated at 20% per early settled lawsuit ($1.5 million average lawsuit cost x 20% = $300,000).

• Year 1 Savings: 35 lawsuits settled early at a savings of $10.5 million.• Year 2 Savings: 35 lawsuits settled early at a savings of $10.5 million.• Year 3 Savings: 35 lawsuits settled early at a savings of $10.5 million.

• Total Savings 3 Years: 105 lawsuits settled early at a savings of $31.5 million.

Total Savings• Quantifiable Cost/Savings Comparison:

• Storage savings over 3 years: $2.3 million• Restoration savings, 2009: $20 million• Discovery savings, 2009: $12 million• Litigation savings, per year: $10.5 million

• Non-Quantifiable Cost/Saving Comparison:• Decreased corporate risk (exposure) though implementation of

document retention process.• Increased flexibility for new Federal Rules of Civil Procedures – i.e.

“Meet and Confer” – early access/understanding of scope of evidence.

• Less vulnerability to “nuisance” lawsuits• Decreased cost due to employee ability to locate knowledge

resources amidst less clutter

How to Succeed

Executive Support

• How do you engage executives and win support?• Understand their goals

• Make information findable and improve business processes

• Ensure compliance and reduce risk by controlling information retention

• Empower legal counsel and reduce costs by enabling e-Discovery

• Provide long-term archiving of physical and electronic assets

• How do you maintain that support and ensure continued funding?

Other Constituents

• IT• Application Owners• End Users/Content Creators• People who touch the processes• Legal Counsel

• Figure out who your constituents are and recruit a strong and supportive person from each group to be on your team

How to implement

• Management – Constituent buy in • Manageability - Start small and learn• Mojo

• evangelizing• choosing vocal early adopters

• Momentum• Milestones• Maintenance• Moving On - Next Project

Partners

• Your organization may have specialized requirements due to your industry or other factors, but more than just a feature comparison, your selection should consider which vendor‘s product, people and approach best aligns with your goals.

• You need strong partners to guide you…• Evaluation, file planning, implementation, roll out

Summary

• Records managers – your organization needs you

• You can align your organizations’ information goals with it’s information practices

• Your experience with retention management, holds, and disposition practices can result in strong return on investment

For more information…

http://bdirking.blogspot.com/

Brian.dirking@oracle.com