A document management system is a computer system put in place to track and store electronic documents or images of paper documents. In today’s small business world, hundreds of documents are accessed, edited, stored, saved, and shared via the office computer network or hard copies in file cabinets. Times are changing. The days when employers using giant file cabinets filled with paper, organized haphazardly in folders can effectively compete with their electronically stream-lined competitors are coming to an end. The Internet and intra-office computer networks allow for the rapid exchange and immediate publication of documents. But, even these electronic documents still need to be organized for maximum efficiency within the organization.
Using an electronic document management system to efficiently handle the volumes of information being stored related to your business is absolutely essential. Below are 5 of the most important business benefits of document management systems:
Cost Savings-The cost of an employee’s time spent locating documents in file cabinets and records rooms, or having to email other people in the company to find the exact electronic source of a document they are seeking is hidden in your payroll and labor expenses. Lost document costs are also eliminated. Replacing a lost document can cost anywhere from hundreds to thousands of dollars to replace, depending on its complexity and importance. Finally, the price of office space can be greatly reduced by storing your documents electronically. With office space leasing for $10-$50 + per square feet, DMS systems can save businesses a considerable amount of real estate cost.
Disaster Recovery-Whether using paper storage methods, or electronic, many businesses don’t have an adequate disaster recovery plan in place. A good DMS will protect your paper records by creating electronic copies, which you can then backup in a variety of different ways. Off-site backup plans, such as co-located server virtualization will ensure that fires, floods, viruses or theft won’t bring your business to a halt.
Improved Security-A document management system provides more flexible control over sensitive files. Most current DMS solutions, for instance SharePoint, allow for a variety of different permissions levels to be used for different individuals and work teams. A good DMS also provides an auditing trail of who viewed or modified a document.
Enhanced Customer Service-Getting the best information to the customer in the shortest amount of time is only possible with a document management system in place. Unnecessary time delays are eliminated, and previously frustrated customers are pleased with the timely information your business is able to provide to them. This improved customer service will undoubtedly enhance your company’s reputation, exponentially over time, while your competitors continue struggling to find misplaced, or disorganized documents.
Improved Compliance Standards-Government and industry regulations are an increasing challenge to the business owner. Having a document management system to manage regulatory and legal compliance is critical to business success. By using a DMS to define policies, a business owner can accurately capture, identify, manage, and store documents according to regulatory and legal requirements.
Enhance your competitive edge, save money, protect yourself legally and manage the security of your business critical data with a document management system. With the advancement of DMS technology , and the shift to utilizing managed service providers for IT, the cost of implementing a system have become more affordable than ever for the small business owner.