Electronic document storage means that documents are stored on magnetic or optical media using a computer. The documents can be ones originally created in an electronic form, as when you create a word-processed document or record a business transaction directly online, e.g., with a point-of-sale terminal. The documents can also be paper documents that are scanned into an electronic format.

Documents are stored electronically on media such as magnetic tapes and disks, and optical media such as CD. Millions of documents can be stored on current-generation media in very little space, say the size of your thumb. The contents of these media can also be easily backed up by creating duplicates on similar media.

How does electronic document storage compare with other forms of storage? Let's find out.

Electronic vs. Paper Document Storage

Paper documents are sorted by some predetermined criteria and filed in appropriately labeled folders. The sorting is done manually and if the person doing it is not clear on how to categorize a particular document (or is a little careless) documents can end up in the wrong folder. This can make subsequent retrieval a very difficult process.

Electronic document storage typically offers a search function that enables a particular document to be retrieved from wherever it is. If it has been stored under a wrong category, the situation can be remedied quickly and easily. Or even better, a copy of the document can be stored under both the old and new categories (if the old classification has some significance).

Paper documents need a great deal of space as they accumulate. Paper folders need to be stored in secure filing cabinets to keep them safe. Filing cabinets are bulky and occupy expensive floor space. In addition to floor space, other costs include expense of the filing cabinets, paper folders, and the army of paper handlers needed to sort, file, store, retrieve, and otherwise manage the filing section.

The compact media required to store electronic documents require very little space. Retrieval can be done from any workstation connected to the computer network, and it does not involve any physical movement of the document. Business processes tend to be improved considerably, in terms of speed, under such an environment, in addition to major savings in costs – floor area, filing equipment, and filing-clerk salaries.

Electronic Storage vs. Microfilm

Microfilm is a durable media for storing documents. Paper documents are photographed into micro-size pictures and stored in film rolls. The pictures can be enlarged and viewed as needed using a special microfilm viewer, and can also be printed if needed. Microfilm storage is not affected by factors such as electrical disturbances that can corrupt electronic data.

Microfilm rolls also require significant space for storage, and they also require secure containers and experienced staff to manage them safely. Electronic document storage is typically done by operating staff, though archiving and redundancy might require a separate section. However, space requirement and ease of handling are far more advantageous for electronic storage.

Major Risks of Electronic Storage

Electronic data are open to the risk of corruption and damage from factors such as electrical disturbances during writing, system crashes, and external magnetic fields. And like all other media, they are also open to damage and loss from physical events like floods, fire, and earthquakes.

These risks can be guarded against by backing up the data and storing the backups elsewhere, say in a dedicated server on the Web that you have purchased. These backups can then be used to restore the originals if the originals are lost.

To be effective, the redundancy should be done in a systematic manner, say every day. There must also be clear policies and procedures on how to create the backup and where to store them. The backups must also be tested to ensure that they can be recovered when necessary.