A Document Management solution helps companies digitize, control, and automate their unstructured information like packing slips, invoices, loans, resumes, tax documents, emails, and more.
A Document Management System (DMS) will capture, read, and index information to increase its understandability, give employees the ability to edit or annotate information, and provide comprehensive workflow tools and automation to ensure the right information ends up in the right hands anytime, anywhere.
Within this system, documents can be created, managed, processed, and archived securely.
They can be available to all employees (or some), whether mobile or in-house, and all document access, changes, and movements are recorded via a data log for proper tracing and analytics.
All communication – including that with customers, suppliers, and subcontractors is intelligently managed and can be easily retrieved for better workflows and continual process improvement.
Why a Document Management Solution Is Critical
Modern businesses are more focused than ever on digital processes and implementing the kind of digital transformation that will drive their business forward.
A variety of technological advances including cloud technology, mobile capabilities, machine learning, and automation are spurring changes and creating opportunities for growing businesses.
According to Statista, “By 2020, the global amount of data created daily will reach 44 trillion gigabytes and most of this data will be unstructured.” – Statista
A DMS provides a solution that helps businesses cope with these evolving changes by providing ways to organize information in a manner that optimizes performance and minimizes error.
Additionally, a DMS allows for effective management of data and more importantly can integrate with current business analytics to protect information from loss.
This is extremely important because in an increasingly competitive market, businesses must leverage the power of productivity to keep their advantage.
“81% of employees cite the need for mobile access to company documents.” – M-Files
A DMS provides a secure and organized way to archive critical information, so it is available to streamline workflows and increase efficiency with your data.
Components of a Document Management System
There are five basic components of a document management system: capture, management, storage, preservation, and delivery.
Capture
To capture both digital and print information, a DMS must have both scanning and optical character recognition (OCR) capabilities.
Some may even utilize handprint recognition technology (HCR), a form of intelligent character recognition (ICR) that allows hand printed text to be easily interpreted and captured.
This helps automate data entry tasks to reduce human error and allow for the tracking of large volumes of data.
Management
Management tools will vary according to each business’ requirements. Typically, they include:
- Tools that allow for content collaboration
- Workflow tools for business process management
- Archive and file management tools to make indexing, retention, and purging simple.
Storage
There are three basic elements to storage solutions in a DMS:
First: there is a repository to collect files.
Second: a library tool that picks up files that have gone through the capture and manage sequence.
Lastly: the hardware – such as servers, cloud-based storage, optical disks, and more- that holds files and software for retrieval.
Preservation
On the other hand from short-term repository of the storage component, preservation provides long-term storage or archiving of critical files.
There are many media choices that can provide appropriate archival, however it’s important to ensure media types are compatible with evolving technologies for long-term usage.
Delivery
To be able to shift content to appropriate users throughout your system, you’ll require middleware that helps move information from application to application.
The delivery process can include distribution of media for access by end users through websites, social media, intranet, or even printed documents.
Security is critical at this part of the process so that unauthorized edits and access are prohibited as data is moved from place to place.
How Does a DMS Work?
The DMS process has five core components working in tandem to organize crucial business process information throughout the lifecycle of the data. In short:
- Data is captured.
- Information is published internally or on a company website.
- Information is automatically and securely archived.
- Old, outdated, or unused information is periodically deleted to save space.
To start using a DMS solution, businesses typically identify each type of content used within the organization and assign them to a business process and specific employee.
Approved users can use full-text searches to locate necessary content that they are able to then read, edit, or print based on their permissions.
Users can also use keywords or phrases to search for documents, reducing retrieval time and increasing productivity.
These simple but powerful tools allow departments to:
- Reduce dependency on paper.
- Streamline workflows.
- Reduce risk.
- Increase productivity.
- Provide exceptional customer service.
Easy access to critical information helps businesses make better decisions, complete projects faster, and collaborate more easily for increased efficiency.
How Does a DMS Benefit Your Business?
Because a document management solution provides a unified platform for the dissemination, storage, and management of data, it can help businesses handle data in a way that meets security and compliance requirements for excellent risk management.
Other benefits include:
- Auditing capabilities including check-in/check-out and workflow oversight.
- Streamlined access and reduced information bottlenecks through version control.
- Reduced storage, paper, and mailing needs for minimized overhead costs.
- Optimized security
- Reduced costs—and the potential for error—through the automation of manual processes.
- Improved customer services through real-time visibility
A DMS’s access to complex tools brings robust functionality to business processes.
For example, data mining becomes simpler and more accurate using tools provided by the DMS that allow parameters and search ranges to be pinpointed for faster and more accurate searches.
Moreover, DMS systems continue to evolve as they target the needs of businesses that are seeking increased agility, integration, and competitive advantage in an ever-changing technology landscape.
Takeaways
- A document management solution will capture, read, and index information; give employees the ability to edit or annotate; and provide comprehensive workflow tools and automation.
- The five basic components of a DMS are: capture, management, storage, preservation, and delivery.
- A document management system is a solution that helps businesses handle data in a way that meets security and compliance requirements for excellent risk management.
- Other pros of a DMS include: auditing capabilities, streamlined access and reduced information, reduced storage, paper, and mailing needs for minimized overhead costs, and reduced long-term expenditures.
- Lastly, a DMS empowers human capital and increases both efficiency and productivity of employees.
