A document management system (DMS) enables businesses to revolutionize the ways in which they store, organize, and retrieve the documents they create and reference on a daily basis.
Blog Post
8 minute read
Jun 26, 2024
A document management system, or DMS, is a digital software solution that captures, stores, and retrieves electronic files and documents.
Think of it as a well-organized digital file cabinet for all your company documents. This file cabinet can help you extract relevant information and quickly retrieve files whenever they’re needed. You can store various file types in a DMS including PDFs, word processing files, emails, or even media files like images and videos.
Since the files and data in a document management system are all digital, storing them, sharing them, and finding them takes a fraction of the time it would take to do the same with hard copies.
Relationships with customers and vendors can be improved by using a DMS since the system indexes information and highlights relevant data. When a customer query appears or a vendor requires more information, this data can easily be extracted by authorized users.
The main purpose behind implementing a document management system is to improve the employee experience by streamlining processes and eliminating time-consuming menial tasks.
The benefits of using a document management system go well beyond easy document access and a reduction in processing time. Let’s look at a few of the main advantages that stem from integrating a document management system in your business:
A quality document management system includes an easy-to-use interface that integrates with existing applications, making it easy for users to share and work on documents together regardless of their location.
SharePoint, for example, is a management system developed by Microsoft that integrates with Office and allows users to interact and collaborate on documents across platforms through the cloud.
This integration allows authorized users to access documents from any location, as long as they have a device connected to the Internet, and the proper credentials. This means that your employees can collaborate whether they work at the office, from a remote location, or even during travel.
As the world continues to embrace digitization on a global scale, the ability to collaborate on work projects with professionals despite physical separation is a major competitive advantage.
2. Automation
A document management system does not have to alter the processes and workflows of an organization. But it can make these much faster by automating business processes.
Workflows can be automated so that stakeholders are notified before approval, upon which the specified file is sent on to its destination. This removes the need for waiting for a manual review or signature, accelerating the approval process.
This is used extensively by companies that deal with documents such as contracts and invoices on a daily basis and is an important aspect of digital document workflow.
3. Remote Access
As stated above, document management system for a modern business should be accessible from any Internet-connected device with the proper capabilities.
This offers more flexibility and efficiency, as stakeholders can conduct tasks regardless of where they are located, whether at the office; on the go; or working from home.
Additionally, documents can easily be approved with a digital stamp, making it easy to advance projects through the workflow from inception to completion.
4. Search Functions
One of the biggest redundancies in business is document duplication because an existing copy simply can’t be found. This can be a result of disorganization, or just poor document management. A reliable DMS is equipped with a search function that allows users to retrieve documents quickly and eliminates the need for duplicate copies.
With a search function, files can be found instantaneously as documents (including image-based files) are indexed and labeled with metadata tags so that users can easily sift through document libraries and access the data they need.
This means that virtually any document, regardless of file format, can be found instantly with just a few known variables like file name.
5. Version Control
“Versioning” refers to maintaining a documented history of a file throughout its entire lifecycle.
When employees collaborate on, review, revise, or approve documents, every version of these files will be retained in case they need to revert or study a previous version of a file.
Stakeholders can also be notified when changes have been made for easier collaboration. By keeping track of all the versions of a document that’s gone through multiple revisions, everyone involved can look back on the evolution. Plus, logging versions makes it easy to reverse a major change if necessary.
6. Access Control
Access controls are crucial for maintaining or establishing security protocols for stored data and information.
While with paper-based processes, documents can be accessed by anyone with a key to the filing cabinet, a document management system allows for substantially more visibility over who has access to what.
7. Compliance Support
Access controls and other security protocols like encryption also play a large role in organizations looking to comply with data standards, particularly those concerning personal identifiable information (PII).
The sectors that are especially affected by data compliance laws and regulations include the finance and healthcare industries.
8. Cybersecurity
Security is a key consideration for document management systems today and any solution should come with the measures necessary to secure a company’s stored data.
This will include standard encryption protocols, SSL (or TLS) certificates, identity-access management controls, and password policies that enforce the use of multi-factor authentication.
How Does a Document Management System Work?
Now that we’ve reviewed the benefits of implementing a document management system, let’s take a look at how these systems work to demonstrate how these benefits actually come about.
1. Input
At the input stage, a stakeholder will capture the document.
A document management system can retrieve information from a variety of devices. These input sources include things like:
Scanners
Email
Manual and bulk uploads
Mobile apps
Web-based software applications
2. Processing
Once a document is scanned or otherwise inserted into the system, it needs to be processed and often converted to a different file.
Document processing involves taking a hand-written or paper-based file and translating it into a digital format for indexing and storing.
With a DMS solution, processing is much faster than manual processing and filing. RPA bots instantly scan relevant data from each document with fewer errors than human employees.
3. Indexing
At this stage, the inputted documents are “tagged” with the appropriate metadata to make it easier to search for them.
This metadata is determined by the internal organization process, but will typically involve the use of key search terms and phrases.
In addition, system indexing should also take place here, which means that data relating to information about dates, document type, or other identifiers of the document are taken into account.
Indexing also takes into account revisions after the fact, so different document versions are made clear for every authorized user.
4. Retrieval
A document management system offers a search function that is easy-to-use for stakeholders when retrieving documents.
A powerful search engine is an aspect of the management system that takes into account all of the attributes that are outlined in the indexing stage—most modern systems will have a search function that is more than adequate.
Wrapping Up on The Benefits of a Document Management System
Document management systems are essential for modern businesses to effectively index, store, and manage their data.
As the volume of data increases to unprecedented levels, the need for organizations to both utilize this data effectively and ensure that it is secured in order to meet today’s compliance standards for sensitive information.
If your company is still using paper-based processes for documentation and is in need of modernization, consider implementing a document management system that can benefit your operations by improving efficiency, productivity, and customer relationships.
