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What are the Benefits of Document Management System? – Guide
A document management system (DMS) is computer software that allows users to store, organize and track electronic documents. It controls all document-related processes in an organization. A document management system can vary in size and scope. It can be designed for a single function like managing files, or for multiple functions like collaboration, tracking, etc. A robust document management system can automate the way files and records are managed across your organization. It helps you to prioritize tasks according to your personal logic. This is done through workflows.
Many surveys and studies by Mckinsey, IDC and other reputable organizations show that an employee spends valuable time looking for information and dealing with trivial matters due to poor prioritization; Waste the huddle on fuzzy discussions and more. The table illustrates the unnecessary waste of time for organizations around the world. All because of an inefficient DMS or document management system.
If you haven’t really calculated how much time is spent in your business. Here is an interesting activity that we propose for you. Note the time circle below. You can see different ratings. Divide the organization into teams and remove additional time quotas if necessary. Then encourage employees to participate in this activity, ensuring anonymity.
Advantages of the Document Management System
Facing the task of converting huge mountains of paper documents into digital documents can seem daunting. However, companies that decide to invest in an electronic document management system have the foundation to streamline workflows and scale business-critical processes. In addition to improving business productivity, here are the main benefits of implementing an electronic document management system for your business.
Reduced storage space
As the costs of commercial real estate increase, so does the cost of storing paper documents. A software-based DMS that can reduce the need for cabinets, boxes, and storage compartments is a valuable asset for any business as it frees up up valuable office space. Documents that need to be kept on paper can be kept in more economical locations, eg B. in an offsite storage or safe.
improved security
Document security is critical for organizations of any size to keep confidential data safe. DMS provides better control over confidential documents and access to documents can be controlled at the folder level for different groups or individuals. In addition, a DMS leaves an audit trail of who viewed a document, when it was accessed, and how it might have been modified. Managed documents are highly traceable and can be tagged to allow for automated alerts.
Improved regulatory compliance
Compliance requirements for certain documents can be quite complex. Non-compliance can lead to fines, revoked licenses and, in some cases, criminal liability. Federal and state regulatory regulations such as Sarbanes Oxley and HIPAA require strict security and privacy guidelines. Document management systems reduce the risk of non-compliance. Records retention schedules, for example, can be automated and new documents can be more easily classified and stored.
Easier document recovery
Searching and retrieving documents can be time consuming – and we all know that time is money. The typical office worker spends around 30% to 40% of their day looking for printed documents, while companies spend an average of $20 in labor to file a document, $120 in labor to locate a document. incorrectly filed and $220 worth of work to reproduce a lost document. These unnecessary document management costs constrain an organization’s budget, hamper productivity, and limit growth potential.
A document management system can be a powerful time-saving tool. Depending on the solution implemented, a DMS can retrieve files by word or phrase in a document. Easier integration with business applications makes it easy to access important information. DMS also offers the possibility to access documents remotely. As long as there is an internet connection, documents can be accessed anytime, anywhere.
best collaboration
The ability to quickly access content and collaborate is greatly simplified with an advanced document management system. Documents captured from different sources can be accessed from multiple locations. Electronic imaging makes it possible to share documents over a network via e-mail or the Internet. DMS provides greater visibility into business processes and can enable better workflow monitoring. Access authorized by external users can be allowed and monitored.
Better backup and disaster recovery
Any document management solution must include a data backup and disaster recovery plan. With digital archiving as a backup, paper documents are safe from fire, flood and other disasters. With a DMS, documents are highly traceable and can be traced based on multiple criteria. Document tracking features reduce the likelihood of documents being lost or incorrectly filed after viewing.
increased productivity
Time is valuable, and time saved is a definite benefit of DMS that often translates directly into increased productivity. Faster and more efficient document retrieval can boost staff morale and increase customer satisfaction. In addition, document management solutions are scalable to meet the ever-changing needs of any business. A comprehensive electronic document management system offers companies some intangible advantages, including:
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