Page 120 - DCAP306_DCAP511_E-COMMERCE_AND_E-BUSINESS

Unit 9: Legal Issues - I

several locations. Breach in the computer security is also a risk, which can be minimized by using
antivirus and password protection in the electronic storage system.

Electronic documents over paper have the advantage of being environment friendly. Electronic
document helps to minimize or eliminate paper from the daily life, thereby helping to save millions of
trees and water costs related to the production of paper.

9.2.1 Risks of Paper Documents
Paper documents pose many risks in business. Some of the risks involved in paper documents are as
follows:

1. Loss of Data in Case of Disaster: Data can be lost due to natural or man-made disasters such as
earthquakes, cyclones, or acts of terrorism. The documents may undergo wear and tear caused by
physical handling and undesirable weather conditions. The loss is minimal by maintaining
multiple copies of the document. This adds to the number of already existing documents.

A company may lose its confidential data stored due to fire.

2. Time and Cost Overruns: It is time consuming to have paper archives for source of information
and reference. The delay in archive process holds up an entire business that could be related to the
researched or referenced document.

A company SamServices has done a paper work agreement with its client
JosNetworks for a project. Now the client wants to make some changes in their
project. In order to incorporate the changes, the company will have to include
some additional expenses clause in the agreement as it will cost the company more
money. This will make the company to rewrite the document, which is time
consuming.
3. Communication Gaps: Most of the business processes involve stages of conception, iteration,
decision, execution, and follow up review. Many departments are involved in the whole exercise
and if the source documents are not at the fingertips of every stakeholder in the business, then it
can hamper smooth communication of ideas and relevant data.

A company should keep all the departments involved in a project about the
updates they get from the client regarding the project. If they miss out any of the
department, communication gaps will lead to inconsistency in work. This could
lead to a dissatisfied client.
4. Lost Opportunity to Delight Customers: While handling paper-based documents in front of a
client, it is important to keep all the relevant documents available and handy. In case, they get
misplaced or lost, the staff may have an agonizingly unprofessional situation. Such kind of
encounters or experiences will fail to satisfy the client.

A company, due to data theft, loses some data pertaining to the customer’s
confidential data. The theft would damage the customer’s reputation. The
customer would lose the trust in the company and henceforth, would not share
any details with the company that would lead to complications.

LOVELY PROFESSIONAL UNIVERSITY 113