What is (in fact) the importance of document management?

Document Management software allows company documents to be organized thanks to a combination of strategies, methods and tools. It is through document management that the company gains in productivity and reduces costs.

And who doesn’t want a more productive and profitable organization? While the answer is obvious, unfortunately not all companies consider the expense they incur on a daily basis due to the time and effort wasted in tracking and tracing documents.

Since we know you want a different story for your organization, learn about the importance of document management.

To begin with: what happens when a company does not automate document management?

For you to fully understand the importance of document management in organizations, let’s understand some of the risks a company exposes itself to by not having a document management system.

One of the biggest risks – especially these days when information security is being discussed – lies in the possibility of exposing important data. A document management software ensures that access to files is only possible to those who are authorized to do so.

Not to mention when critical documents are stored on laptops that can be stolen, lost, or damaged at any time. In this case either important information is lost, or can be accessed by anyone.

And to understand even more the importance of document management, we have another point to add: without it, it is impossible to know who has viewed and/or edited a document. So, if you want to audit a business process to discover errors or inefficiencies, the task will be impossible.

Now that we understand what happens to companies that don’t do document management, let’s have a look at the opposite scenario.

What happens in a company that automates document management?

Document management software enables the capture, management, storage, preservation, and delivery of documents. In other words, companies that invest in ECM have the ability to:

• Capture any type of content, store it safely, and make it available throughout the whole process, regardless of location;
• Track changes in documentation;
• Effectively organize any kind of information;
• Enable employees to search and find information quickly;
• Improve the publication and delivery of processes.

With the above points you get an idea of the importance of document management, but we can go into a little more detail.

A company that uses ECM reduces costs for printing, shipping, and storing paper. In addition to cost reduction, we also mentioned at the beginning of this article the productivity gain.

Repetitive tasks can be automated directly in document management software. This frees up employees so that they are available to perform tasks with real added value for the company.

A subject that has been discussed a lot inside and outside organizations is collaboration. ECM helps collaborative work, since information can be accessed anytime and anywhere (which also promotes team mobility).

In addition, employees will have access to authorized documents and, if necessary, can easily modify/validate/delete them. We cannot fail to emphasize security, another relevant item to describe the importance of document management in companies.

To top it off, all information stored in the ECM software is secure and, unlike paper, does not risk being lost and/or damaged. And, of course, all access is online.

But how does a document management tool work?

In order for you to understand how it is possible for all this to happen, here is a simplified explanation.

First, you need to capture the document so that the users can find it when they need it. A good ECM system allows you to capture physical documents, emails, reports, and more.

However, capture alone is not much use. That is where, once captured, the document is indexed so that it can be easily located (after all, the importance of document management is also saving time in locating them, right?).

Essentially, indexing is a way to classify a document. You add terms to the document metadata (such as order number or customer number) and these terms that make it easier to find. Furthermore, in a document management software it is possible to give the appropriate access permissions to each of the documents.

Every captured and indexed document is stored in a central repository, which will facilitate access and ensure file security. Additionally, document management systems must enable retrieval and distribution of documents to ensure that they can be used and shared if permission is granted.

We emphasize that such retrieval must be quick and easy; otherwise it is totally useless. Good document management software offers keyword search capabilities (this is possible thanks to the indexing we’ve commented above).

Another essential factor for any document management system is document distribution. This is how a user will be able to send documents to customers, suppliers and even employees.

And, of course, in ECM software you can archive or even delete a document.

Well, but to end on a high note and for you to understand well the importance of document management, there is one item that we cannot forget:

Process and workflow automation

Document distribution is just the tip of the iceberg in ECM. Document management systems that deliver results have the ability to automate processes and workflows.

To do this, all the user has to do is set up a process. For example, the sales area receives an invoice. Through this process, this invoice will be sent to accounts payable. If the system detects a problem, a notification is sent. Otherwise, the invoice will be paid and the initiator of the process will receive a process completed notice.

This shows one of the biggest benefits of document management: you no longer have to chase every document through an approval process. The system does all the work for you.

Try it for 15 days free right now! Or, if you prefer, request a demonstration from our consultants. Count on us to answer all your doubts and help your company!