No, Paper Tiger is not a scanning system, nor does it currently work with a scanner or scanned electronic documents.
Scanning allows you to easily share information, get rid of the paper (as long as you are not afraid of the scanning system crashing - you could lose everything!), more easily find the information you are looking for, reduce purchases for file cabinets, etc. There are many advantages, not the least of which is the office looks and feels more streamlined.
However, scanning is not without problems and it is important that you understand the risks involved before committing to this option. There are some problems with scanning - many documents cannot be easily scanned (bound material, original contracts, non-standard shapes/textures, etc.) Scanning documents can be very time consuming and tedious - scanners are machines - they jam, they break, documents are stapled or bound, documents have handwritten "sticky notes" on them (sticky notes like to "stick" to scanners! and does not scan very well!), etc. Some people, even after scanning their documents, are afraid to destroy the original paper in case there is ever a problem and keep the paper in archives (thus still keeping the physical documents!)