Why is Document Management System Important for your Business?

Introduction

Imagine the number of times a paper sheet that contains important information gets passed from one desk to another in your Workspace. It is then referred to, altered, and subsequently filed by different people, with different intentions. It is not only difficult to manage and work with paper documents but is also an exhausting process. To cut short the process of arrangement and organization of data seamlessly, teams adopt a Document Management System.

Like any business solution, the Return on Investment (ROI) must outdo the investment. The Document Management System that you choose will decipher what the comeback is. For some companies, it might be a hefty investment but given the time and money that it saves, the cost gets truly justified.

After all, a company that values clean and clear management solutions already gets the upper hand over the ones that stay disorganized. 

According to recent research by YouGov, SMEs across the world waste approximately USD 5,11,02,554 of revenue every year while searching for documents. The research also highlights that on average, company directors and managers spend a complete hour only on retrieving a document (an hour is worth USD 106.61 in this study), which might have either been misplaced, or moved to a new location, or destroyed.

Therefore an SME loses approximately USD 5,330.30 per week. This loss of revenue arose due to poor document management practices, which could have easily been utilized in business development and expansion projects. Despite this, only 7% of the existing SMEs resolve to utilize electronic media to store their vital information, and less than 20% of SMEs claim to have implemented a Document Management System.

If any of the following points address a problem that your team or business is facing, then the answer is ‘yes, you definitely need a DMS’. 

Wasted resources cost

The most important benefit of adopting a Document Management System is the elimination of paper debt. Research suggests that in an average workplace, over 10,000 paper sheets are used annually, which are copied over 10 times. In this process, over 45% of these paper documents are trashed. Now imagine how much of your essential investment gets drained on paper and related stationery.

On top of that, how much energy gets drained in making copies of copies! If your team is facing a similar issue, then implementing a Document Management System can help you instantly by reducing paper debt and eliminating a dependency on expensive paper, related machinery, products as well as real estate.

Access to organized information

Time is an important currency in the professional realm, and organizations that are on their way to scale, cannot compromise on that! Adopting a smart Document Management System (DMS) can save a lot of time and effort which are otherwise spent on storing, organizing, and retrieving paper documents. A Document Management System makes it easier for you to search and retrieve documents easily, in a matter of seconds.

Blocked real estate

It is not a surprise that less paper frees up expensive real estate. Professionals hardly realize that the real estate that they utilize burns a major hole in their pocket and is certainly not meant for creating scattered landscapes of paper.

Rather than investing in physical spaces to store paper documents, it is advised to use this space for productive operations from which their business can profit. In this light, a Document Management System can play a major role in freeing up expensive real estate. 

Control over information

Security is the most invested area for any growing business. It is something that cannot be overlooked at any cost. Paper is certainly not the best way to secure your vital information. It’s next to impossible to control access to files and restrict critical information from being copied.

This is where smart solutions like a Document Management System step in. With bank-grade security and granular access controls, a smart DMS can ensure your information remains in your control at all times.

Redundancy & continuity

Not only security but safety is also ensured by a Document Management System. Unlike paper documents, digital docs are not prone to natural deterioration, theft, or damage of any kind. With cloud storage, a SaaS-based Document Management System can easily help you in keeping your important information safe with multiple levels of data redundancy to address any natural calamity. Plus, you can access the docs anytime, anywhere! 

Now that you know all the major reasons why a Document Management System is necessary for your team and your business, let us have a look at all the factors that you must consider before actually going for one! 

Factors to Consider Before Choosing a Document Management System For Your Business

A Document Management System (DMS) is software that is capable of managing and storing digital documents. Adopting the right  DMS for your business can go a long way in improving your efficiency and help your team work better. 

It is a daunting task to find the right Document Management System that fits your business needs from among several available options. Each Document Management System brings on different capabilities and we hope the following information helps you make an informed decision while selecting the best one for your business! 

It’s best to start off by identifying the pains or problems you expect the Document Management System to solve for you. This, in turn, would give more clarity about the features you should look for in making your selection. Some questions you should ask yourself:

• Do you need a DMS to store & archive documents?
• Do you need a tool to help search and retrieve documents quickly? 
• or, do you need to adopt a DMS to automate your workflow?

A few key features you should consider when choosing the right-fit Document Management System are:

1. Full-text extraction 
2. File Storage with integrated viewer
3. Retrieval & organization
4. Access Control
5. Security & Audit Logs
6. Cloud vs On-Prem
7. File Versioning 
8. Automated Workflows 
9. Editing, commenting & collaboration

Furthermore, a DMS provides high-end security measures to help keep your important and confidential information secure. You can control who gets to download, make edits and even have a look at certain documents. You may even use the audit trail available in a DMS to have insights into the activities performed on documents. 

Considering all these factors when choosing a Document Management System that works for you may seem overwhelming. To make the choice easy for you, get a free demo for dox2U.

dox2U is a leader in the document management industry and will save you time, and money, and help you get back to the work that really matters.

Conclusion

There is no doubt that documented information is crucial for the success of any business, provided that they are managed efficiently, without becoming the cause of financial overload. Manual management of physical documents is an inefficient, overwhelming, and expensive process. This is where a cloud-based DMS like dox2U steps in.

Suppose you’re a business that needs to organize and streamline data, accelerate, and automate your business processes, then yes. In that case, your business is all set to adopt a DMS that’s ready to scale as your business grows.