What really is a document management system? A document management system is a technology-based solution used to capture, store, and retrieve both data and information in digital form.
These digitized versions of documents are most commonly stored as PDFs, tiffs, word documents, or an image format from scanned hard documents.
Document management systems are being pursued more heavily by organizations today than over the last decade due to cloud technology, lower costs, improvements in efficiency for workflows, and their ability to bring data compliance to these workflows.
Throughout this blog, we’ll be going into great detail on what document management solutions are, why they are necessary for companies today, and the extensive benefits they provide.
Document Management System — What is it?
Without repeating what we already discussed above, a document management system in its most simple form means to digitize previously paper-based processes and create visibility over different workflows.
According to the IDC, “95% of corporate information exists on paper. It is estimated that the average worker prints out 45 sheets of paper per day.” – International Data Corp.
A typical document management system will comprise several features including but not limited to:
Search functions
A document management system should have a search function that allows you to find information at the snap of your finger.
Files can be found instantaneously as documents of all types are parsed metadata tags as a criterion are taken into consideration for more clearly defined files.
This in effect means that essentially any document, regardless of file format, can be found instantly.
46% of workers find it sometimes or almost always challenging to find the information they’re looking for.
Security
Security is a major factor for document management solutions today and any solution provided should come with the measures necessary to secure your stored data.
This includes standards like 256-bit Advanced Encryption (AES) security for the sending and receiving of information, and SSL (or TLS) certificates for the protection of data transferred between two systems (like a worksite and client).
Version control
“Versioning” refers to maintaining a documented history of a file throughout its entire lifecycle.
When documents have been collectively reviewed, revised, or approved, every version of them will be held onto in case of the need to revert or view a previous existence of a file.
Employees can also be notified when changes have been made for easier collaboration.
A Perforce survey of over 1,000 employees found that 83% of workers lose time to versioning issues every day. – Perforce
Permissions
Access controls and permissions 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 far clearer visibility over who has access to what.
Compliance support
Access controls and other security protocols like encryption also play a large role in organizations that need to be compliant with data standards, particularly those concerning personal identifiable information (PII) – for industries like healthcare, finance and legal.
Easy Integration
A quality enterprise management system should have a simple interface that is able to integrate with any organization’s existing applications. This brings together your main business application and document management system, creating a single system working together.
For example, while working in your CRM or an accounts payable software, all documents pertaining to the customer/transaction can be accessed by the click of a button archived in one central, secure location.
The most likely location for workers to collaborate and manage documents is email, cited by 69% of respondents; this is followed by shared network drives and folders (55%) and/or information saved locally to desktop or laptop (54%).
Workflow Automation
Document management systems allow for the automation of workflows — this is particularly important for approval processes.
In such instances, the workflows can be automated so that the necessary parties are notified before approval, upon which the specified file is sent to its destination.
This is used extensively by companies that deal with documents such as contracts and invoices on a daily basis and is an important part of digital document workflow.
Remote access
A document management system for any business should be accessible from any Internet-connected device.
This allows for more efficiency and flexibility, as employees can conduct tasks regardless of where they are located, whether at the office; on the go; or working from home.
How Does a Document Management System Function?
Input
At the input stage, a stakeholder will capture the document.
This should be able to accommodate a large variety input devices from which to digitize the document or file.
These input sources should include things like:
- Scanners
- Manual and bulk uploads
- Mobile apps
- Web-based software applications
Conversion/Processing
Once a document is scanned or otherwise inserted into the system, it needs to be processed (and converted if need be).
Document processing involves taking a hand-written or paper-based file and translating it into a digital format for indexing and storing.
Indexing
At this stage, the uploaded documents are “tagged” with the appropriate data to make it easier to search for them. This can be done through manual data entry, OCR, or Artificial Intelligence (AI).
This data should be determined by the internal organization process, but will typically involve the use of key search terms and phrases.
Additionally, system indexing should also take place here, which in effect means that data relating to information about dates, document type, or other identifiers of the document are accounted for as well.
Indexing should also consider revisions after the fact, so different document versions are made clear for the people accessing them.
Retrieval
A document management system should offer a search function that is easy-to-use for employees when retrieving documents.
A powerful search engine should form this aspect of the management system which considers all of the attributes that are outlined in the indexing stage — most modern systems will have a search function that is more than adequate.
The Significance
Document management systems are essential for modern businesses to effectively index, store, and manage their document’s data.
As volumes of data within SMBs rise to unprecedented levels, the need for organizations to both utilize this data effectively and ensure that it is secured is a must. To meet today’s compliance standards for sensitive information, document management systems are the way to go.
All in all, if your company is still using paper-based processes for documentation and requires modernization, consider asking if a document management solution can benefit your operations and improve both your efficiency and productivity.
