Learn the difference between collaboration and document management software and determine the best fit for your needs.
Collaboration software like Microsoft Sharepoint and document management/business process automation software can be easily confused. Both tools facilitate information management and allow users to access documents; however, the critical differences lie in how the software manages records and what core business functions it supports.
Choosing the wrong software will cost you more time and money over the long term, but the right one will deliver business stability and continuity. So, should your company choose SharePoint or a document management system?
Document management software like DocuXplorer focuses on records management. Among its many uses, document retention and compliance are core deliverables of a DMS.
SharePoint, on the other hand, was built to encourage collaboration on projects. A project inevitably creates many documents as people revise and refine content. SharePoint is not meant to streamline document processing but focuses on yielding the best collaborative effort.
Document management software treats your documents as strategic business assets, enabling maximum control and optimization. You can easily share and collaborate on documents, but you’ll also have an audit trail. Companies subject to regulatory requirements need to know where their records are at all times, and some organizations must also track document approvals. In a DMS, you’ll tag your documents according to their critical information to quickly find what you need without knowing where or how files are organized.
SharePoint encourages document sharing and doesn’t have the functionality to track records. Searching in Sharepoint can be particularly challenging, so finding and maintaining files is each user's responsibility.
Given the importance of data security, a DMS comes with robust permissions capabilities, giving you control over who can access your information. Documents requiring restricted access include sensitive legal materials, financial information, human resources, and senior management reports.
SharePoint is all about providing access to documents. While SharePoint may have limits or restrictive controls, its main focus is project-based access rather than role-specific permissions.
One of the best parts of a digital system is its ability to help you standardize your business processes. Document management software excels at this, allowing you to automate tasks like filing, signatures, approvals, and reporting.
Can you achieve tagging, automation, or document tracking with Sharepoint? Yes, but only if you add on extra features. SharePoint was never meant to be an out-of-the-box solution, so building out the platform to meet your needs requires expertise in Microsoft modules and MS products. And if you add features to Sharepoint, you’ll be locked into paying for them, even if the price changes. You’ll create automations and API connections using your own resources or consultants.
You’ll also have to train your staff to use the system effectively, and SharePoint is known for not being user-friendly. User education will be extensive and ongoing as you write your own integrations and modify them over time based on company policies and software updates. Personnel changes can easily threaten to undo all the work you’ve accomplished.
A DMS, on the other hand, will systemize your processes and continue to run them when you’re out of the office or someone leaves the organization. The software fully integrates with your tech stack and holds your institutional knowledge, so training new users happens quickly and easily. The adaptability and scalability of document management software mean you won’t have to start again from scratch as your business changes.
SharePoint is a well-developed collaboration tool. However, if you need more nuanced information management, including easy searching, indexing, secure access, or automation, working with Sharepoint will be like trying to fit a square peg into a round hole.
A DMS with business process automation delivers the functionality to keep your data organized, streamline redundant tasks, and help you adhere to regulations. Records management exists to give you control over your information while substantially lightening your workload.
Ultimately, the best software will be a good fit for your tech stack and your organizational culture. One way to confirm if document management software is the right choice is to try a DocuXplorer pilot. In a few days, you can test its functionality and get proof of concept to move forward into a new era of document efficiency.
