- 4 Mins Read
What is a Document Management System?
A document management system provides a structured way to store, organise, access and control business documents. Depending on how it is configured, a DMS can support features such as centralised storage, metadata, version history, permissions, search and document workflows.
Key Benefits of a Document Management System
A document management system can improve how organisations store, access, control and share business information. Key benefits include:
Centralised Information:
With no standardised system for storing and managing information, documents may move across an organisation’s departments, making it difficult to manage documents and workflows effectively.
These poor document management practices plague businesses of all shapes and sizes. This is where the benefits of having an electronic document management system come into play.
A DMS offers a centralised system for managing and storing company documents and is designed to improve the information workflow throughout the organisation.
Not only does it provide users with greater access to critical documents, but it also ensures that the most up-to-date documents are stored and used.
Convenient Retrieval
Retrieving critical information from piles of physical documents or even digital documents stored in files and folders can be stressful, time consuming and unpredictable. Well-archived and indexed documents and records allow easy retrieval of information as and when it is required. This can be achieved by combining a robust document management system with scanning automation tools so that information is properly indexed based on its metadata. Electronic document management thus makes it easy for critical business information to be quickly searched, retrieved and shared with other people in the organisation across a network, intranet or even the internet.
Version Control
In a collaborative DMS with features such as version control, the need to manually version files becomes redundant. It also eliminates ad hoc naming conventions such as using numbers or dates in file names to manage different file versions. Digital document management ensures that all versions of a document are preserved while at the same time giving instant visibility to the most recent version. With document control, it is also possible to monitor who made changes to a document, when the change was made, and what was modified.
Enhanced Document Security:
One of the major benefits of adopting a document management software for your company is file security. Company documents can contain critical business information and other confidential data, such as employee personal details. A DMS software helps by preventing unauthorized persons to gain access to this information which can lead to business or legal damages or even cause irreversible harm to your business. With permission settings that only allow authorized users to access certain documents, data encryption, and tracking user behavior, a document/records management system can help safeguard confidential business information effectively.
Regulatory Compliance:
The use of electronic DMS helps companies to ensure compliance with applicable regulations and legal requirements which is a day to day process. It also helps mitigate the risk of litigation and financial responsibility when any deviations are detected in regulatory compliance. This is crucial for any organisation since noncompliance can adversely impact the continuity of the organisation and can even lead to significant penalties.
Better Collaboration:
A document management system can work as a collaborative content management system, allowing an entire team to work on the same master document from anywhere in the world. This can be done using any device, even mobile devices, to collaborate on documents.
Integrated collaboration tools make co-authoring of documents easy and efficient, with the added benefit of version control and tracking.
Cost Reduction:
If your organisation still relies on hard copies or paper based documentation, you’re probably spending much on operational costs.
Having an electronic DMS in place can help reduce costs by freeing up office space for more productive uses rather than for storage.
Electronic documents eliminate the need to create multiple copies of the same document for interdepartmental filing and storage.
A master copy of the document can be stored in a centralised repository, where it is accessible to all authorised users, thereby saving money on printing, supplies and equipment.
Also, automated workflows help streamline many business processes across sales, accounting, HR, and customer service, thereby saving personnel time.
Read further:
SharePoint can support document management through libraries, metadata, permissions, version history and workflows within Microsoft 365. The linked guide explains how these components can be used together for document control. Read More…
