In many cases, office work means paperwork — mountains of documents to sign and reports to review. An article on Forbes reveals that the average office worker uses around 10,000 pieces of paper a year. Corporations even spend over $120 billion on paper forms, even though they become outdated in a matter of months. However, these days, businesses are shifting to more advanced records management methods — in particular, document management systems. A document management system (DMS) is a crucial tool for storing and organizing electronic documents. It's a useful business process management software that removes the need for paper documents. This allows organizations to transition to paperless operations. That being said, here are four ways businesses benefit from implementing an electronic document management system.
Another blog post on DocuXplorer talked about how document management solutions reduce costs in detail. In short, it saves on material and equipment costs, physical storage costs, and even staffing costs. It also cuts down on expenses in the long run by boosting productivity among the workforce. This is because document management systems make it easier for employees and executives to revise and amend documents as needed. There's no need to reprint and re-sign paper documents because everything can be done through the digital platform.
Document management software also makes it easier to track and retrieve documents. Because files can be found with a simple search query, employees save time as they don't need to sift through different filing cabinets. Additionally, electronic records can be centralized in a singular database, either local or in the cloud, creating an integrated data source that the entire workforce can access. This decreases the chances of files getting lost. Migrating paper files into the document management software effectively destroys any data silos within the company. Overall, document management systems allow for more data accessibility within an organization.
Document management systems are also useful in improving data security. Often, securing company data requires a cyber professional. However, given the ever-growing cybersecurity talent gap, hiring one becomes exceedingly difficult. A feature on Security Week highlights that in 2020, 73% of organizations reported at least one cyber incident partially caused by the talent gap. In response, more educational organizations are putting a focus on their cyber-related degrees, instructing students to comply with industry standards and regulations, such as those of SEC, HIPAA, FINRA, and others. Accreditation is crucial as it ensures that future cybersecurity professionals are adequately equipped to enter the workforce. However, the cybersecurity talent gap is still growing. Thus, while there is a drought in cybersecurity talent, businesses must adopt alternative means to protect company data. Document management systems are an excellent means for this as they provide secure encryption and auditing features. Moreover, reputable document management software is built to comply with all government security and privacy regulations. Thus, they serve as a useful option for ensuring data security.
Lastly, document management systems allow for automation, boosting the efficiency of business process management. Automation increases productivity, labor efficiency, product quality. Thus, business process automation via document management software is extremely useful for organizations. Built-in dashboards within the system allow users to customize specific automated workflows, ensuring the documents are sent to the relevant parties at the right time. Upon finalizing the workflow, employees can then track the document's status and progress, ensuring that everyone is on the same page in terms of document processing.
Document management also provides automated indexing and filing of documents. When batch scanning mass amounts of documents, AI technology identifies and tags the document with searchable metadata and files it away to a predefined location. This drastically cuts time, resources, and eliminates human error. With automated features taking care of the more menial work, employees can then focus on client success and driving business growth.
Managing documents is a continuous and complex process that requires careful filing and meticulous attention. However, with document management software, businesses can automate tedious processes and focus on improving business performance. Clearly, going paperless has its perks, but when supplemented with the right digital tools, business operations become much more streamlined.