Digitise or just keep paying storage fees? The imperative for government departments

digitisation

Executive summary

Across all levels of government, the weight of paper continues to constrain efficiency, visibility and compliance. While digital transformation strategies have evolved rapidly, one foundational layer of that transformation, records digitisation, often remains incomplete. Every unscanned archive, offsite box or legacy record represents an information blind spot: a risk to compliance, accessibility and trust.


This paper reframes digitisation not as an operational cost, but as a compliance and governance necessity. It explores the realities driving the need for action, the measurable risks of delay and the steps agencies can take to transform paper archives into intelligent, searchable digital assets that support better decision-making, transparency and service delivery.

The compliance illusion

Many departments assume compliance because they have records stored and retrievable. But compliance is not the same as accessibility or auditability. If records are boxed, fragmented, or reliant on physical retrieval, compliance is often being simulated rather than achieved.

When audit time arrives, locating a specific document can take days or weeks. The result is a reactive, manual process that exposes agencies to unnecessary risk. Compliance in the modern public sector is about immediacy, accuracy and transparency – qualities only achievable through digital information ecosystems.

The question is no longer “Can we afford digitisation?” but rather,

How much longer can we afford not to?

Every box of paper adds cost, complexity and potential exposure.

Retaining physical archives perpetuates inefficiency and prevents agencies from realising the full potential of their digital strategies.

The true cost of paper

The ongoing storage and management of paper records is often underestimated. Departments pay not only for physical storage space but also for retrieval, transport and the administrative time required to access information.

Those costs compound over time. As records age, staff familiarity decreases, metadata weakens and continuity breaks down. The longer agencies delay digitisation, the greater the eventual conversion cost and the higher the risk of data loss or non-compliance.

But the cost isn’t just financial. Paper-based processes slow responses to freedom of information requests, impede collaboration and create bottlenecks in decision-making. In the era of instant digital access, continuing to rely on paper fundamentally limits an agency’s ability to operate efficiently, transparently and securely.

The digital transformation gap

Most government transformation programs have focused on front-end service delivery such as online portals, digital forms and automated workflows. Yet, behind these digital interfaces often sits an analogue information foundation: legacy records, scanned images without searchable metadata and unstructured content that can’t easily be leveraged.

True transformation requires that the information backbone of an organisation be as modern as its front-end systems. Without digitised, intelligent records, even the most advanced service platform is limited by the inaccessibility of historical and supporting information.

Digitisation bridges this gap. It enables agencies to integrate structured and unstructured content, apply retention rules, automate classification and strengthen governance under a single, compliant framework.

From digitisation to intelligent records

Digitisation is not the end goal, it’s the first step in building intelligent, usable and secure records ecosystems. Once records are digitised, agencies can layer on metadata enrichment, AI-driven search and automation tools that turn passive documents into active information assets.

This evolution transforms the records function from a compliance burden into a strategic capability. With intelligent records, agencies can:

  • Respond instantly to audits, investigations and information requests.
  • Reduce manual processing and human error.
  • Enhance continuity and resilience across departments.
  • Provide citizens and staff with faster, more transparent access to information.

Ultimately, intelligent records underpin proactive compliance, where information is not just stored securely but governed intelligently throughout its lifecycle.

Barriers to progress

While the benefits are clear, many departments still delay digitisation. Common reasons include:

  • Perceived cost: treating digitisation as an expense rather than an investment in compliance and operational readiness.
  • Legacy complexity: large, fragmented archives spanning decades of formats, storage methods and record types.
  • Unclear accountability: uncertainty about ownership between business units, records teams and shared service providers.
  • Short-term focus: transformation budgets often prioritise visible front-end initiatives over foundational infrastructure.

Overcoming these barriers begins with reframing digitisation as a compliance and risk management measure, not an IT project. Agencies that view it through this lens can secure executive support and unlock funding aligned to governance and performance objectives.

What success looks like

Successful digitisation initiatives within government share several consistent features:

  1. Executive sponsorship – Clear accountability from senior leadership ensures alignment with agency risk frameworks and performance goals.
  2. Defined information governance – Establishing metadata standards, retention policies and quality controls ensures that digitised content remains compliant and searchable.
  3. Scalable workflows – High-volume scanning, automated indexing and secure data transfer support large-scale projects without disruption to ongoing operations.
  4. Data sovereignty and security – Hosting within Australian data centres under ISO 27001:2022 certification guarantees control and compliance with government privacy mandates.
  5. Lifecycle thinking – Viewing digitisation as part of an ongoing information management strategy, not a one-off project, ensures sustainability and continuous improvement.

Agencies that adopt these principles transition from reactive record keeping to proactive compliance and data-driven governance.

The cost of inaction

Every year that paper remains in storage, agencies continue to pay for the privilege of inefficiency. The longer information sits idle, the harder and more expensive it becomes to bring it into the digital ecosystem.

Beyond cost, inaction carries reputational and operational risks. Public expectations for transparency and digital responsiveness are rising, while legislative requirements for data management are tightening. Delayed action exposes departments to avoidable scrutiny and undermines citizen trust.

Digitisation journeys begin with acknowledging that every paper record, no matter how small, represents both a risk and an opportunity.

A pragmatic path forward

Transformation doesn’t need to happen all at once. Agencies can start by identifying high-value or high-risk collections, those most critical to service delivery, governance or public access.

From there, targeted digitisation pilots can demonstrate quick wins and measurable ROI, building the internal confidence and momentum for wider programs. Partnering with trusted information management experts ensures projects are executed securely, with minimal disruption to daily operations and with compliance at the forefront.

When done right, digitisation delivers immediate efficiency gains while laying the foundation for long-term transformation across the entire records lifecycle.

Conclusion – from compliance burden to strategic advantage

The digitisation imperative is not about technology for its own sake, it’s about ensuring that government departments can fulfil their mandates effectively, transparently and compliantly.

Paper records once served a purpose. Today, they represent an obstacle. By converting them into digital, intelligent assets, agencies strengthen compliance, unlock efficiency and enhance service delivery.

The question is no longer whether to digitise, but how soon.
Every box left in storage is another blind spot in an agency’s digital strategy.

Ready to continue the conversation?

The journey from physical to intelligent records begins with understanding your current environment – the scale of your archives, the systems in place and the outcomes you want to achieve.

If you’re ready to explore practical steps for secure, compliant digitisation tailored to your agency’s needs, connect with our information management specialists to start the discussion.

Like what you’re reading?

Get monthly insights and updates that resonate with your business.

Further reading

Here are some other insights that you might find interesting.

Industries We Serve

Our industry expertise and solutions

Fujifilm DMS can support any industry that needs to communicate frequently with customers across multiple channels, physical or digital. Whether you’re sending or receiving information or engaging with customers online, we’re here to help.


Banking & Financial