William Zastrow President, CEO FileMark Corporation September 20, 2004

1. Document Solutions 10 Things You Should Know AboutImaging and Document Management William ZastrowPresident, CEOFileMark Corporation September 20, 2004

2. The Harsh Reality • Paper use in business is growing 6-8% per year • On average, each document is copied 19 times • 37% of these copies are unnecessary • 45% of all files are duplicates • 95% of all references are to records less than 3 years old • 90% of all records are never referred to after initial transaction • Office workers spend up to 40% of their time searching for information • Hard copy printing now costs corporations up to 3% of gross annual revenue • Up to 60% of helpdesk calls are related to output documents Elimination of inefficient paper processes allows more work to be done faster, with fewer people, and less cost

3. Why Yesterday’s Document Management Solutions Can’t Make the Grade….. get it right the next time # 1

4. Why Existing DM Solutions Get Replaced • No longer architecturally compatible– poor IT fit, inadequate security and/or records management to meet new regulations • Can’t capture, store and view all required document formats – images, fax, reports, statements, eMail, eDocs, rich media, etc. • Workflow angst – too difficult, expensive or time consuming to further deploy into new business processes • Compatibility – need to integrate with new business applications • Poor internet affinity– no Web access • System consolidation– industry acquisitions, system compatibility, management and control issues • Support issues– vendor consolidation, platform or storage obsolescence, ongoing maintenance costs

5. Ensure Enterprise Applications Flexibility….. but don’t go overboard # 2

6. “Enterprise Content Management” • Production Imaging • Forms Processing • Workflow • Business Process Management • eMail Archiving • Records Management • COLD/ERM • Electronic Document Management • Digital Asset Management • Web Content Management • Collaboration • Indexed Full Text Search • Enterprise Portal Do you really need all of this?

7. So, What are your Business Needs? • Elimination of paper • Faster document processing – application forms, claims, loans, orders, annuities, checks, invoices, credit card exceptions, etc. • Automated data entry • Managing business growth • Reduced labor costs • Managing records for legal or regulatory compliance • More efficient and responsive customer service • Website publishing and updates • Dispersed workgroup collaboration • High-value document creation and revisions • Internal computer output report capture and distribution • Electronic distribution of customer statements • Self-service Web portal – for customers, agents, partners, suppliers, employees, etc.

8. All You Need is One (Repository)….. and it’s not just for documents anymore # 3

9. Modular Configuration, Multiple Repositories, Specialized Servers Browser Clients COLD/ERM Repository Imaging Repository DM Repository CM Repository Storage Server Web Web Server Host OCRServer IntegrationServer SearchServer WorkflowServer CaptureSubsystem Server DesktopClients

10. DocumentRepository The Universal Repository eMail Photos Video Computer Reports, Statements Images Records Web Content Forms Fax Office Documents eForms

11. Single Repository, Integrated Server IntegratedRepository/Server Browser Clients ArchiveServer Database Universal Repository Archival Storage Workflow Web Server Web Host Desktop Clients Scan Station(s)

12. The Universal Repository • One logical repository and storage subsystem • One database • One administration system • One set of APIs for application integration • One logical client with one universal viewer • One vendor • One system to learn, use, configure, maintain, backup, integrate, secure and buy

13. Don’t Confuse Collaboration with Transaction Processing….. a square peg will never fita round hole # 4

14. Collaborative DM vs.TransactionProcessing DM Collaborative • High value revisable documents • Word, Excel, PPT • Web content • Group editing, approval routing • Content search • Many casual users • Law, Pharmaceuticals, Government, Engineering, Consulting, Advertising, Publishing Transaction Processing • Transitory fixed documents • Images, forms, fax, eMail • Computer output reports • Invoices, statements, checks • Business records • Production workflow • Metadata search, app integration • Few production workers • Healthcare, Manufacturing, Distribution, Financial Services, Education, Government

15. Collaborative DM vs.TransactionProcessing • Indexing efficiency – mandatory fields vs. used-defined business attributes • Retrieval performance – check in/out, auto-versioning, document-level vs. page-level delivery • User interface issues – browse, text search, field search, QBE, folder search, desktop application integration, workflow integration • Logical repository configuration – distributed vs. centralized • Revisable vs. WORM document storage • High speed image printing • Collaborative vs. production workflow

16. Focus on Capture Technology ….. the most labor-intensive component of Document Management # 5

17. Document Capture Repository Scan Capture Images eMail ImportOffice Documents, eMail, Images,Fax, PDF, eFiles

19. Invoice Type Invoice Amount

20. Distributed Document Capture DistributedIndexers Repository Batches Commits Scan Capture Images Import Index Auto-Fill eMail ImportOffice Documents, eMail, Images,Fax, PDF, eFiles BusinessApplications

21. Automatic Report Capture Repository Host Print Streams Capture Print Reports, Invoices and Statements

22. Automatic eMail Capture Repository CorporateeMail Server InternaleMail External eMail Archive SMTP ProxyServer

23. When Workflow Doesn’t Work….. it happens more often than you think # 6

24. Why Workflow Doesn’t Work • The concept of traditional rules-based workflow is fundamentally flawed • Too complex to build and inflexible in use • Too expensive and time consuming to deploy, maintain, change and/or grow • Most workflow deployments try to do too much

25. Why Workflow Doesn’t Work “Business ProcessRe-Engineering”

26. Rules-Free Workflow • Paperless ad hoc document routing – for approvals, transaction processing or case management applications • Easy configuration – automates existing business processes, no rules, users still make most decisions, no BPR • Secure work queues, audit trails, instant WIP status • Out-of-box deployment can resolve over 70% of process inefficiencies – prioritize your problems • Rapid implementation = quick ROI = success • Knowledge worker empowerment, not rigid rules enforcement

27. Go Live Retest & Refine Point of Diminishing Returns Deploy Deploy Test Codify Rules Re-Engineer Analyze Document Rules-Free Workflow Traditional vs Rules-Free Workflow Productivity Time/Cost Traditional Workflow

28. Application Integration….. index and access information in context directly from your business applications # 7

29. Mainframe Application Integration

30. Docs Client/Server Application Integration

31. Application Window Application Extender DM Indexer VB Program Docs Commit DatabaseandRepository Query Invoice Type Search Results Invoice Amount Simple Application Extender

32. Don’t Ignore Records Management and Regulatory Compliance Mandates….. its not just about corruption anymore # 8

33. Records Management Definition • Policies, practices, technologies and management controls – to protect legal interests and comply with regulations • Information lifecycle management • Electronic and physical records • Complete audit trails • Controls to ensure process consistency

34. Regulation Finance Insurance Banking Health-care Pharmac-eutical Manufact-uring Notes Sarbanes-Oxley* X X X X X X * Affects all public companies HIPAA* X X * Affects benefits dept of all companies, and schools SEC 17A-4 X 21 CFR Part 11 X Basel II X X California SB 1386 * X X X X X X Affects any business doing business with a CA resident US Patriot Act X X X Gramm-Leach-Bliley X X Examples of Industry Regulations

35. Sarbanes/Oxley Records ManagementCompliance Simplified • Capture all business transactions and correspondence – no exceptions • Store it twice – keep one copy on non-erasable media • Validate records as genuine • Enforce prescribed 7-year retention period • Provide fast, easy access to records for first 2 years • Keep information secure • Delete systematically, and then only according to official retention rules • Maintain accurate, detailed audit trails

36. Records Management Requirements • Complete Information capture – scanned, electronic and reference to physical records • Record classification • Record declaration – finalization, library services • Retention rules – time until cutoff • Disposition –ignore, delete, migrate, suspend • Detailed audit trails • Authentication and security

37. Choose the right system architecture….. how to avoid obsolescence # 9

38. Architectural Considerations • Server platform –Unix, Linux or Windows • Database –MS SQL Server, Oracle, DB2 or proprietary • Storage – JBOD, DAS, NAS, SAN, CAS, CD-R, jukebox or tape • Clients –desktop, browser, Citrix/TermServer, portal, workflow or legacy system • Scanner –SCSI or video interface, color or black & white, centralized or decentralized

39. Out with the Old, In with the New….. you can get there from here # 10

40. Legacy System Document Options • Day-forward document capture – forget the old • Backfile conversion – migrate the old • Live legacy system link – remote access to the old when needed • Live content integration – coexist with the old

41. FileMark Corporation • Founded in 1989 • Software developer, system integrator, professional services provider • High-volume document processing, archiving and records management technologies • Healthcare, Manufacturing, Distribution, Financial Services, Government and Education solutions

42. AIPSO Insurance Schwartz and Benjamin Boston City Hall Boston Globe Bridgeport Fittings Church Pension Fund Cigna Dental Citizens Bank Compass Bank Credit Suisse First Compaq Computer Cranston Print Works Dunkin Donuts Eagle Tribune Eastern Connecticut Health Network Sample Clients Estee Lauder Fiduciary Trust First Atlantic Credit Fletcher Allen Healthcare Florence Savings Bank Friendly Ice Cream Good Samaritan Hospital Halifax Regional Municipality HarborOne Credit Union Horner Millwork Jersey Shore Hospital Kentucky Lumber Loring, Walcott & Coolidge New York National Bank North Shore Medical Center NUI Elizabethtown Gas MBTA Mellon Trust Millbury Federal Credit Union Moynihan Lumber Pawtucket Credit Union Robert Moreno Insurance Simplex South County Hospital Stride Rite Time Warner Ulbrich Steel UC Irvine Wayne State University Worcester Poly Tech

43. SMARTi™ Imaging ReportMgmt SMARTi Records Mgmt • Production Imaging – high-volume batch scanning and indexing, fax capture, workflow, application integration • Report Management (COLD/ERM)– print stream capture, report mining, report distribution, statement presentment • Records Management – retention and disposition, library services, check in/out, versions, eMail archiving, legal and regulatory compliance

44. Efficient– facilitates the transition to paperless operations Saves Money– reduces hard dollar and labor costs Saves Time– provides instant access to documents from anywhere Improves Productivity– streamlines document-centric business processes, integrates with line-of-business applications Mitigates Risk– fulfills legal and regulatory compliance requirements Easiest to Configure, Easiest to Use Lowest Cost Solutions SMARTi Summary

45. FileMark Corporation 40 Mechanic Street Marlborough, MA 01752 Tel: 800-251-0840 Tel: 508-485-3320 Fax: 508-485-5423 www.filemark.com Document Solutions