Document management systems can help your business store, organize, share, and safeguard your most important files

With a smart document management system (DMS), your business can store, organize, and share the paperwork it needs to run smoothly. Better still, you can automate most of the process. As most companies have a steady stream of both physical and digital incoming documents, a systematized approach to managing them can help your business operate more efficiently and stay compliant with legal regulations.

In this guide, we’ll cover the basics of document management systems: what they are, which features they need, and how to find the right hardware and software for your setup. We’ll also explore a few related topics, such as records management and business information management. Learn how DMS technology can make your company’s information easier to store, easier to find, and easier to protect.

What is a document management system?

A document management system (DMS) is a suite of tools that companies use to store, modify, and keep track of the many documents necessary to conduct business. Those documents can include simple text files, complex legal or online forms, images, and more. Many document management systems also offer document capture, workflow management, and a host of other features businesses may find useful. Most are cloud-based and work with a number of computer operating systems. They are ideal for companies who need document management software on Mac and PC, and several have mobile capabilities across iOS and Android.

Be aware that some providers may refer to document management solutions instead of systems. The terms are basically interchangeable, although some companies may use “systems” to refer to software and “solutions” to refer to any part of the process.

What is document management?

Document management is the process by which organizations store, track, and retrieve digital documents as well as digitized scans of paper documents.

Typically, documents move through the following stages, often facilitated by document management processes or software:

• Creation: Documents are either written directly on a computer or digitized via document scanners.
• Storage: After creation, documents are stored on physical hard drives or uploaded to internal networks or cloud storage.
• Utilization: Documents are retrieved, updated, and shared during day-to-day operations.
• Archival/Destruction: Organizations can archive physical or digital documents for long-term storage once a document has served its purpose. Or, if a document is no longer required or its existence poses a security risk, it can be deleted or destroyed.

A DMS handles the storage, utilization, and archival phases of the document management lifecycle. The purpose of a DMS is to create a centralized repository for digital documents for easy access across an organization’s network.

What’s the difference between document management and records management or content management?

As you research DMS tools, you’ll probably come across a few related concepts. “Records management” is one of the most common. Records management and document management are similar, but not interchangeable. While they both deal with storing business paperwork, document management covers the whole document life cycle, whereas a records management system (RMS) focuses more on archiving, preservation, and access controls. Records management is especially important in industries that deal with sensitive personal information, such as healthcare and finance. Electronic records management (ERM) systems are a good option for forward-thinking businesses.

Content management is another similar concept. Whereas records management focuses on archival and compliance, content management is all about publishing content online. The ability to store and share multimedia, such as photos, video, and audio, is especially important in a content management system (CMS).

You may also come across the term “corporate records management,” although it doesn’t have a specific definition. These systems are often easy to implement and run at a corporate scale, but other features vary from solution to solution.

Document management vs. content management

Like DMS, CMS tools provide centralized storage of important files, though they differ in a few key ways:

Document Management System (DMS)

• Manages mostly text-based files
• Focused on documents in formats like:
• .doc
• .pdf
• .xls
• .txt
• Aids in workflow management
• Easily searchable

Content Management System (CMS)

• Manages text and multimedia files
• Can store document files, along with audio and visual formats like:
• .html
• .jpg
• .gif
• .mp3
• Aids in publishing content
• Less searchable

Document management vs. records management

RMS is a subset of DMS focused on compliance over access:

Document Management System (DMS)

• Manages general business documents
• Includes version history and user access features
• Meant for storing and using files for day-to-day operations

Records Management System (RMS)

• Manages signed contracts, insurance records, and other important documentation
• Audit history and user access features are more robust and stringent
• Includes customizable document retention rules for managing document lifecycle
• Meant for meeting strict security and compliance standards

Benefits of document management systems

In addition to providing a centralized digital storage solution for businesses and enterprises, DMS offers the following benefits:

1. Security: provided through user access controls and permissions
2. Metadata tagging for cataloging, indexing, and searching.
3. Versioning for assessing changes over time and the ability to roll back to previous versions.
4. Collaboration tools for real-time modification and markup.
5. Reproduction through digital copies and physical printouts.

Professional document management can reduce the costs of shuffling necessary paperwork around multiple departments and locations, increase productivity, and reduce the potential for errors when handling outdated information.

How document management systems drive growth

The goal of any technological solution is to make employees work smarter, not harder. This, in turn, allows businesses to make better decisions about how to dedicate available resources. The business can then use newly freed-up time, money, and energy to add new business units or expand ones that already exist.

Document management solutions can make most tasks involving physical and digital paperwork more efficient. Here’s how they can help you achieve your growth targets:

• Faster processes: You can extract data from intake forms and create new digital records within seconds. Or you can use digitization automations to help you manage larger projects, complete with cascading tasks and approval steps, so everyone involved knows exactly what they need to do.
• Fewer mistakes: Automation can significantly reduce errors such as mistyped names or incorrect tagging and organization to ensure everything is where it needs to be with every single document. That way, you’ll be sure that every employee has the most accurate and up-to-date information at their disposal.
• More accessible information: Document management solutions offer centralized repositories for digital information. These make it easier for anyone with the right credentials to look up what they need, whether they’re at their desk in the office or on a plane with their laptop.
• Greater accountability: DMS tools automatically surface mission-critical tasks to the relevant parties, along with any necessary documentation. They’ll also point out whether these tasks have been completed and store access and signature logs, allowing you to stay on top of every step of the process.

Necessary hardware and software for document management systems

To implement a DMS at your business, you’ll need some specialized hardware and software:

1. Document scanner: Document scanners are vital for digitization projects, and sheetfed scanners are especially good at processing large stacks of standard paper. These devices contain automatic document feeders (ADFs) which can process hundreds of scans in minutes, making them perfect for organizations with large backlogs of paperwork.
2. Word processing tools: For creating digital documents, a powerful word processing suite is critical. Look for options that include a plethora of formatting options, such as fonts, indentations, bullet lists, table creation, and image importing, and other features. You’ll also need the ability to save and export documents into several file types, including .DOC, .DOCX, and .PDF.
3. Document management software: As the heart of your document management system, your document management software will act as the central hub for document access and retrieval. The best options offer collaboration from multiple computers, metadata tagging for searchability, and compliance features to ensure proper tracking and security.

Which features should you look for in a document management system?

There are many types of DMS on the market. The right one for you depends on your specific needs and the features you find the most important. Some DMS solutions are better suited to small businesses, while others work well for massive enterprises. One DMS may prioritize regulatory compliance, while another specializes in innovative organizational methods.

When evaluating a document management system, there are ten vital functions to consider:

1. Version control: How easy is it for your document control software to track different versions of a file?
2. Audit history: How does the DMS track changes, and how easy is it to audit them?
3. Customizable security controls: Can you customize the security protocols and rules?
4. Compliance checks: How thorough are the compliance checks, and what are they checking against?
5. Process automation: How much can be automated?
6. Document capture and optical character recognition (OCR): How well does the DMS capture documents, and what technologies does it use?
7. Form and e-signature compatibility: Can you input configurable forms and capture signatures?
8. Cloud storage: Does it store documents in the cloud?
9. Collaborative document editing: Does it allow for online collaboration, and, if so, how many users can work on the same document at a time?
10. Document archiving: How does the DMS archive data, and where and how are those archives stored?

What is intelligent document processing?

Intelligent document processing (IDP) refers to the extraction of data from scanned documents, the analysis of that data, and its application to specific tasks. For example, IDP can look over the elements of a loan application and quickly determine whether or not to extend an offer. Scanning confidence acts as a safeguard, putting potential exceptions into a queue for human review.

IDP adds an intelligent layer of automation to document management, providing the following benefits:

• Manages the intake of large quantities of forms
• Eases scaling by keeping headcount low
• Performance can improve over time thanks to artificial intelligence (AI) and machine learning

Look for DMS systems with IDP features to help future-proof your organization’s workflows.

Best practices for document management systems

As the worldwide economy shifts towards digital workflows, companies must update their document management systems so they can store, organize, and access files at any time. To ease the transition, you can adopt the right techniques and modify them to suit your business and industry. Here are five document management best practices that almost every organization can benefit from:

1. Create a document management plan: Consider which documents you need for day-to-day operations, who needs access to these resources, where you will store digital files, and when you will ultimately archive or delete your records. Assign a real person to oversee operations at every stage.
2. Choose the right document management system: Look for a DMS that offers cybersecurity options, an intuitive design, cloud storage, and version control capabilities. The tool should fit within your budget and scale easily as your business grows.
3. Be consistent with categorization: There’s no right or wrong way to categorize documents, but applying a consistent model helps your employees find what they’re looking for. Create standard naming conventions for both files and folders, and put dates on individual documents.
4. Prioritize remote access: Many employees access documents remotely, whether working from home or checking on projects while traveling. Your DMS should offer cloud storage so that your staff can access files from anywhere. Businesses may also want software with dedicated smartphone apps.
5. Audit your document management practices: You probably won’t get everything in your DMS right on the first try. Managers should review the document management plan and determine whether the current system behaves as intended or needs to be overhauled, especially following any major organizational changes.

How can different industries use document management systems?

DMS tools can be valuable in every line of work. Consider these examples from various industries:

• Legal: Files are encrypted to protect client confidentiality 
• Construction: Cloud storage lets on-site personnel access blueprints
• Accounting: OCR scanning creates searchable digital contracts
• Healthcare: Access controls help support Health Insurance Portability and Accountability Act (HIPAA) compliance efforts
• HR: Managers and supervisors can collaborate on the same personnel files
• Government: Navigate large databases with relevant metadata tags
• Law Enforcement: Advanced analytics to identify crime patterns in an area
• Education: Populate data for parent or student online portals

Our recommendation: Ricoh fi-8170

The Ricoh fi-8170 document scanner is an excellent tool for the job. This device can scan up to 70 double-sided pages per minute and comes with a 100-sheet ADF to keep scanning projects flowing smoothly. Multi-feed detection lets you scan documents of different sizes, while a small footprint (11.8 x 6.7 inches, 8.8 pounds) make it a suitable size for most offices. The Ricoh fi-8170 is also compatible with the PaperStream Capture Pro software, which uses advanced OCR, metadata tagging, file sorting, and data extraction features to make your documents editable and searchable.

Contact us today to learn more about how Ricoh hardware and software can be part of your document management strategy.

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