What is a document management system?
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The efficient management of digital documents is a necessity in the modern working world. A digital document management system (“DMS” or “DMS software” for short) is therefore becoming a must-have for companies – and not just for corporations, but also for SMEs. In this article, you will find out what a digital document management system actually is, what functions it fulfills and what advantages it can offer your company.
What is a document management system?
A DMS is software for creating, organizing, storing, searching and sharing electronic documents in companies. The main objective of a DMS is to enable the efficient handling of documents and to manage the entire life cycle of a document.
The introduction of a document management system can contribute to this,
- reduce paper consumption,
- increase efficiency,
- improve compliance
- and to promote cooperation within organizations.
Document management software: the foundation for the digital workplace
Nowadays, the majority of business documents (invoices, contracts, orders, etc.) are no longer received in paper form, but digitally. Business correspondence is also increasingly being conducted by email and – at the latest since the pandemic – via video conferencing tools such as Microsoft Teams or Zoom.
A DMS system plays a key role in this scenario. It offers clear advantages for companies, as it increases productivity, reduces costs and streamlines and optimizes work processes. As part of the digital workplace, it is the foundation on which everything else is built. But what does a document management system actually do?
The most important functions of document management software
The basic function is the capture and evaluation of documents and the information and data they contain. If a paper document is available, it is scanned. An electronic document, on the other hand, is captured directly by the DMS software. The documents are then made available to all authorized users for retrieval via a terminal device at any time and from any location.
A document management system (DMS) facilitates and optimizes collaboration by providing central, versioned documents. Employees can access files simultaneously without overwriting each other. Changes are documented transparently and automatic notifications keep everyone involved up to date. In this way, a DMS ensures structured, efficient and trouble-free collaboration.
Audit-proof archiving is an essential component of a DMS. It stores original files so that they cannot be changed, meaning that they are usually legally equivalent to paper documents. This is particularly relevant for audits and legal disputes. Legal advice clarifies which documents must still be stored in paper form, such as opening balance sheets and annual financial statements.
Modern DMSs can be seamlessly integrated into existing IT systems without major restructuring. You can receive data from third-party applications and use it for document management, while other tools such as ERP or email software can easily access DMS content.
Document management system advantages
The introduction of a document management system (DMS) offers many advantages. These can vary depending on a company’s specific requirements and processes – but overall, a DMS helps to increase efficiency, improve document security and facilitate collaboration. Here are the most important document management system benefits.
Increased efficiency
A document management system enables documents to be managed efficiently, which saves time. Search functions, clear structuring and fast access enable employees to find and edit documents quickly.
Paperless working
A digital document management system reduces the need for paper. This not only helps to protect the environment, but also saves the space and resources needed to store paper documents.
Mobile working
A DMS enables mobile working by providing location-independent access to documents. Employees can securely access, edit and share relevant files at any time and from any device. This promotes flexible working models, increases productivity and improves collaboration – whether working from home, on the move or in the office.
Improved collaboration
By making it easy to share, comment on and collaborate on documents, a DMS promotes collaboration between departments and teams.
Versioning
A DMS makes it possible to manage different versions of a document. This allows changes to be tracked and older versions to be restored.
Access control and security
The DMS enables the implementation of access rights and security measures. Only authorized users are granted access to certain documents, which ensures the confidentiality and integrity of information.
Compliance and audit trail
For industries that are subject to strict regulations and compliance standards, a DMS offers valuable support in meeting these requirements.
Reduced search times
Intelligent search functions allow users to find documents quickly and easily. This minimizes the time normally spent searching for information.
Workflow automation – digitize & automate work processes
Some DMSs offer workflow management functions that make it possible to set up automated processes for the approval, release and distribution of documents. This increases efficiency and reduces manual workflows.
Scalability
A document management system is generally scalable and can grow with the company. It can therefore meet the increasing demands placed on document management.
Quick document search with a DMS – how does it work?
The core function of a document management system is to store all company-relevant documents (contracts, invoices, emails, delivery bills, etc.) centrally and make them available quickly and easily. In other words, if you need a certain piece of information or a document, you can access it in seconds without having to search for a long time. Whether in the office, at home or on the train. But how can this actually work?
Indexing and indexing of documents
Each individual document is indexed when it is entered into the document management system. The indexes refer to relevant information such as the client or supplier, the machine identification number or a categorization such as “invoice” or “delivery bill”. Paper documents are scanned and then also indexed. Simply select the information with which you can best find the document via the DMS interface. In a modern DMS, a document can also be automatically indexed, provided that the necessary additional software solutions are used – this eliminates the need for manual input by the user.
Find the information you are looking for in seconds
For example, you are looking for a specific invoice. You type a keyword into the DMS search function on your tablet that is related to the invoice, e.g. the invoice number or the customer name. You immediately get access to the corresponding document or to a list of documents to which your keyword is linked. It’s just a matter of seconds before the desired information appears on your end device.
Search functions for document research
The integrated search function of a DMS makes document searches much easier and offers various options. These generally include search options such as searching via document types, searching via the document indexes, a quick search with search criteria defined by the user and a full-text search. This includes not only the content of the documents themselves, but also attached comments. Everything is designed so that the user can find the required documents and information as quickly as possible using the search function.
Optimal options for mobile working
With a document management system, you can create and optimize opportunities for remote working and working from home. Employees are no longer tied to the office – they can work from anywhere and at any time using the device of their choice.
Collaboration and shared access to documents and information are not a problem remotely – on the contrary, they actually improve collaboration. This increases both the flexibility of your employees and the qualitative possibilities for collaboration.
Thanks to various integrated solutions, e.g. for contract management, e-mail archiving or digital invoice processing, you have all documents, tools and digital processes at your fingertips at all times. Access is possible at any time and from anywhere, as long as you have an Internet connection and a suitable end device.
Document management system provider: How to make the right choice
Your document management system provider should respond to your individual requirements and endeavor to find the right solution for your company. Consider a few factors in advance to help you separate the wheat from the chaff and find the right DMS more quickly:
If you can answer “yes” to all the questions on this checklist, this is a very good sign. Nevertheless, don’t be afraid to ask the provider if you don’t understand something or if details remain unspoken. A document management system is not an assembly line product, but a complex software solution that should take into account the individual requirements of your company and the people who work with it. The same applies to the service/support surrounding the product.
The choice of your DMS should therefore be well thought out and accompanied by a good feeling, which usually emerges from your initial discussions with the consultants or other contacts on the provider side. Effective, transparent communication is the be-all and end-all before you make a decision.
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