The above picture depicts a scenario that is common to most organiztations. Paper information arrives at an office from various sources:
Most of these papers reach the records room where a very organized system is already in place. However, as information grows, space constraints begin to crop up. The Records Officer now has to decide which files can be sent into cold storage (another location inside the building, or archive with a physical records archiving company, etc.) Furthermore, these files need to travel between the records room and the departments changing several hands. Hence, there is a concern on security of the information and many more chances of documents falling out or getting misplaced. Many of these documents would be required to be sent to external stakeholders (Ministry, Customers, Suppliers etc). This distribution is usually done by making multiple copies and either faxing or couriering them. So while business increases, so does the need to send documents to stakholders every time costs. Communication costs would rise tremendously.