Records Classification

Records classification refers to the systematic identification and arrangement of business activities and/or records into categories according to logically structured conventions, methods, and procedural rules represented in a classification system. It involves organizing records into categories based on their type, content, or other characteristics, augmenting the effectiveness of managing, storing, and accessing records while ensuring their proper protection and preservation.

Importance of Record Classification

By classifying records, the following benefits come into play:

• Clarity on Record Context

While some IT professionals might question the need for classifying documents given the capabilities of enterprise systems to index content, indexing alone does not establish the context of records. Classification is crucial because it allows us to distinguish valuable records from those of little or no value. The perceived value of information can vary based on the goals of the search, but records classification helps identify where reliable information is likely to be found.

• Elevated Searchability

Classification enhances searchability. When searching for records on a particular topic with minimal information available, users can begin their research by identifying relevant classifications. Proper filing and systematic auditing by records managers significantly increases the success rate of this approach.

• Efficient Record Retention and Disposition

A common argument is that “storage is cheap, so why bother deleting data?” While the cost of portable storage units has decreased, acquiring robust, reliable, and enterprise-grade storage remains expensive. Keeping unnecessary records can expose an organization to unnecessary litigation. By adhering to legal and organizational retention and disposition schedules, records are less likely to be subject to litigation or spoliation accusations. This approach serves as a financially prudent risk management strategy.

Different Methodologies for Records Classification

Records can be classified according to the following systems:

• Alphabetic Systems

Alphabetic systems classify and index records using the letters of the alphabet to arrange them by names, subjects, or keywords. They are simple and common, ideal for sorting customer files by last name or project files by topic. While easy to use and understand, they can create large, uneven groups of records, be inconsistent and ambiguous, and require frequent updates and revisions.

• Numeric Systems

Numeric systems classify and index records using numbers to arrange them by categories, subcategories, or sequences. They offer precision and consistency, useful for sorting invoices by account number or contracts by date. Numeric systems save space and protect confidentiality but can be difficult to remember and use, require cross-references and indexes, and be affected by changes in the numbering scheme.

• Alphanumeric Systems

Alphanumeric systems combine alphabetic and numeric systems, using both letters and numbers to arrange records by multiple criteria, such as function, activity, or subject. They provide flexibility and comprehensiveness, accommodating complex and diverse records, like sorting policies by department code, function code, and policy number. However, they can be complex and confusing, requiring extensive training and documentation, and can be prone to errors and duplication.

• Subject Systems

Subject systems are a type of alphanumeric system that uses a predefined list of subjects or topics to arrange records by their main content or theme. They group records by common interests or functions, facilitating analysis and research, such as sorting reports by industry sector, product line, or market. Despite their utility, they can be subjective and inconsistent, require regular updates, and create overlaps and gaps in the subject list.

• Geographic systems 

Geographic systems, another type of alphanumeric system, use geographic locations or regions to arrange records by their origin or destination. They are useful for managing records related to different places, and supporting planning and coordination, like sorting orders by country, state, or city. However, they can be affected by changes in geographic boundaries or names, require additional information and verification, and create large, uneven groups of records.

• Functional Systems

Functional systems are advanced records classification and indexing systems that use the functions and activities of an organization to arrange records by their purpose and value. They reflect the structure and goals of an organization, enhancing efficiency and accountability, such as sorting records by business processes like human resources, finance, or marketing. Developing and implementing functional systems can be complex, requiring constant review, evaluation, and involvement from multiple stakeholders and standards.

Manual Vs. Automated Records Classification 

Classification can be manual or automatic, employing various techniques. Manual classification is usually carried out by experts with subject knowledge who can classify records accurately. Historically, this was the only method available for classifying records. However, it becomes highly difficult and error-prone when dealing with large volumes of records.

Automated classification, performed by machines, can be accomplished through various methods. Automatic records classification involves using computers to automate the process, with or without human oversight. With advancements in technology, machine learning, and AI capabilities now allow for the automatic identification and tagging of record content. Compared to manual classification, this automated process is faster, more scalable, accurate, and cost-effective.

Smart Food Safe’s Smart Record as an Automated Record Classification Solution

Recognizing how the volume and complexity of enterprise data continue to grow, augmenting the significance of record classification, Smart Food Safe’s Smart Record presents user-friendly records classification and categorization features to harness the capability of information for decision-making, innovation, and knowledge discovery, ensuring quick access to vital information while maintaining compliance with regulatory standards.