1. To control the creation and growth of records
Despite decades of using various non-paper storage media, the amount of paper in our offices
continues to escalate. An effective records information system addresses
both creation control (limits the
generation of records or copies not required to operate the business) and
records retention (a system for destroying useless records or retiring inactive records),
thus stabilizing the growth of records in all formats.
2. To reduce operating costs
Recordkeeping requires administrative dollars for filing equipment, space in offices
, and staffing to maintain an organized filing system (or to search for lost records when there is
no organized system)
.It costs considerably less per linear foot of records to store inactive records in a
Data Records Center versus in the office. [Multiply that by 30% to 50% of the records in an
office that doesn't have a records management program in place], and there is an opportunity to
effect some cost savings in space and equipment, and an opportunity to utilize
staff more productively - just by implementing a records management program.
3. To improve efficiency and productivity
Time spent searching for missing or misfiled records is non-productive. A good records
management program (e.g. a document system) can help any organization upgrade its
recordkeeping systems so that information retrieval is enhanced, with corresponding
improvements in office efficiency and productivity.
A well designed and operated filing system with an effective index can facilitate retrieval
and deliver information to users as quickly as they need it.Moreover, a well managed information
system acting as a corporate asset enables organizations to objectively evaluate their
use of information and accurately
lay out a roadmap for improvements that optimize business returns.
4. To assimilate new records management technologies
A good records management program provides an organization with the capability to assimilate
new technologies and take advantage of their many benefits. Investments in new computer
systems whether this is financial, business or otherwise, don't solve filing problems unless
current manual recordkeeping or bookkeeping systems are analyzed (and occasionally,
overhauled) before automation is applied.
5. To ensure regulatory compliance
In terms of recordkeeping requirements, China is a heavily regulated country. These laws can
create major compliance problems for businesses and government agencies since they can be
difficult to locate, interpret and apply. The only way an organization can be reasonably sure that
it is in full compliance with laws and regulations is by operating a good management information
system which takes responsibility for regulatory compliance, while working closely with
the local authorities. Failure to comply with laws and regulations could result in severe fines
, penalties or other legal consequences.
6. To minimize litigation risks
Business organizations implement management information systems and programs in order
to reduce the risks associated with litigation and potential penalties. This can be equally true
in Government agencies. For example, a consistently applied records management program
can reduce the liabilities associated with document disposal by providing for their systematic,
routine disposal in the normal course of business.
7. To safeguard vital information
Every organization, public or private, needs a comprehensive program for protecting
its vital records and information from catastrophe or disaster, because every organization
is vulnerable to loss.
Operated as part of a good management information system,
vital records programs preserve the integrity and confidentiality of the most important records
and safeguard
the vital information assets according to a "Plan" to protect the records.
This is especially the case for financial information whereby ERP (Enterprise Resource Planning)
systems are being deployed in large companies.
8. To support better management decision making
In today's business environment, the manager that has the relevant data first often wins,
either by making the decision ahead of the competition, or by making a better,
more informed decision. A good management information system can help ensure
that managers and executives have the information they need when they need it.
By implementing an enterprise-wide file organization, including indexing and retrieval capability,
managers can obtain and assemble pertinent information quickly for current decisions and
future business planning purposes. Likewise, implementing a good ERP system to
take account of all the business’ processes both financial and operational will give
an organization more advantages than one who was operating a manual based system.
9. To preserve the corporate memory
An organization's files, records and financial data contain its institutional memory,
an irreplaceable asset that is often overlooked. Every business day, you create the
records, which could become background data for future management decisions and planning.
10. To foster professionalism in running the business
A business office with files, documents and financial data askew, stacked on top of file
cabinets and in boxes everywhere, creates a poor working environment.
The perceptions of customers
and the public, and "image" and "morale" of the staff, though hard to quantify
in cost-benefit terms, may
be among the best reasons to establish a good management information system.
