Document Management System is Transforming Business. (Part Two)

The document management is the automated control of electronic documents – page images, spreadsheets, word processing documents, and complex, compound documents – through their entire lifecycle within an organization, from initial creation to final archiving. It is designed to optimize all aspects of business from financial records to legal contracts to human resource documentation to customer support interactions to product design documentations. The document management system structures the way businesses capture, store, manage, retrieve and secure every digital document. In turn, this streamlines document workflows by making people more productive and efficient and saves the businesses considerable time and money. [1] It is widely agreed that the biggest driving factor for the digital transformation of documents is the ability to access them anywhere. For example, England's 158-Year-Old HM Land Registry uses Xerox’s Production Workflow Management platform to digitize data and maintain the integrity of the land register for England and Wales and deliver excellent customer service. Xerox has transformed HM Land Registry’s paper-based catalog and document submission process to a digital system, has modernized the entire document workflow, help extract key data including both information and images, and offer secure environment to document management system.

Benefits of the document management systems

It is observed that the regulators have also mandated tighter data governance, fast query response times, robust security controls, and documentation of compliance reports. Moreover, the customer demands, governance and compliance requirements continue to intensify making the document management core of the best practices. It offers numerous benefits including – index electronic and paper records to a secure central hub, enable access for all, with permission-based access levels, instant document search and retrieval, automated workflow checkpoints from input to finalization, automated data retention and purge, workflow visibility and staff collaboration, assured security and built-in compliance, and real-time management reports.

Sustainable reduction of paper usage with document management solutions: One of the key benefits of document management systems is to bring a significant contribution to sustainability by digitizing documents and promoting electronic workflows. It helps organizations decrease their reliance on printed materials, yielding far-reaching environmental benefits. The reduced paper usage facilitated by document management systems adoption is a vital step toward a more eco-friendly and cost-effective document management approach. Moreover document management systems also free up the document storage space of the office and make room for other equipment or new employees.

For example, Fairfield Chair, a 99-year-old, family-run furniture maker based in Lenoir, North Carolina turned to Xerox to help them move from an analog to digital system. Xerox DocuShare helped Fairfield Chair digitize and automate their workplace processes. It allowed users to scan papers into a central content management system in the cloud where the documents can be measured, managed, and securely stored for users to access. Fairfield Chair post document management system implementation managed to integrate six different departments on one platform, got rid of one hundred and sixty-five file cabinets, has instant access to information online, can now respond to customers faster and better, and has reduced its print costs by 35 to 40 percent.

Productivity and Collaboration with document management solutions: An advanced document management system helps documents acquired from various sources to be accessible from a variety of locations. It facilitates effortless collaboration among team members, whether they work in the same office or are dispersed globally. It also enables multiple users to access, edit, and comment on documents concurrently.

For example, W.W. Grainger, A Fortune 500 industrial supply company implemented a document management system to improve collaboration among its sales and customer service teams. With the new system, sales reps can easily access customer account information and orders, which allows them to better serve their clients. Customer service teams can also quickly retrieve information about previous customer interactions, which improves their ability to resolve issues efficiently. As a result, W.W. Grainger was able to improve customer satisfaction and increase sales. [2]

Document management system helps organizations save time: The document management system helps organizations save time in the document management process, which translates directly into higher production. It increases the visibility of business processes and allows workflow monitoring and tracking. This feature also enhances workflow oversight, solidifying document management system as an indispensable tool for governance, accuracy and accountability.

For example, Capital One, the financial services company uses a collaborative document management system to improve collaboration and efficiency among its employees. With the new DMS system, employees can easily access and share information across teams and departments, reducing the need for time-consuming email exchanges and meetings. This has resulted in faster decision-making and improved productivity. Capital One has also been able to reduce errors and improve compliance with regulatory requirements. [3]

Storage and tracking with document management solutions: Some documents that are valuable and require use for a longer period of time require storage. The document management system eliminates the need for file cabinets, boxes, and storage bins is a great asset to any business, freeing up valuable office space. The file storage and tracking system is used to manage and store documents, images, videos, and other digital files. It is used by many organizations to keep track of their most important documents, ensuring that they are accessible and secure. Moreover, it also offers the scope for the documents that must be retained in hard copy can frequently be held in less expensive locations, such as an offsite warehouse or vault for the governance, academic and legal requirements.

 For example, Bahrain Airport Service use document management system to control the increasing complexities of managing differing regulatory and operator document approvals. The document management system has enabled the Bahrain Airport Service team to not only gain complete control over complex documentation approvals, but also manage associated audit tasks including auditing to different international standards. The effective document management system has helped Bahrain Airport Service increase productivity by 30 percent.

Document management system offers more control over critical data: The document management system allows for more control over critical data, and access to documents can be restricted at the folder level for different groups of people. Moreover, the document tracking capabilities lessen the possibility of records being misfiled or lost. The documents in a document management system are highly traceable and can be traced using various criteria.

For example, the BT Group plc, a global telecommunications services company with over 98,000 employees, is the largest telecommunications services company in the world. The BT Group had been using two separate databases to manage Audit Planning Programme and Audit Tracking. These databases were old, and both were not linked together in the way that BT management required. The BT Group recognized that they needed an easily accessible application that managed all parts of their auditing processes from beginning to end, in one central location. The document management system introduced a standardized approach across lines of the business. It also offered a simplified reporting to the senior management, providing visibility of business performance.

Document management system redefine how organizations access vital information: The document management system redefine how organizations access vital information. By digitizing and centralizing documents, document management system ensures swift and convenient retrieval, elevating efficiency and collaboration. Moreover, this document management system reduces response times, minimizes errors, and fosters seamless global cooperation, ultimately streamlining workflows and boosting productivity.

 For example, Edgefield County Hospital (ECH) in Edgefield, South Carolina to manage hard copy of insurance remits and other related claim documentation annually. They also needed to reduce costs for maintaining and storing paper HealthCare records. ECH to automate the process used FileHold document management software along with EMC Captiva QuickScan Pro scanning software and Fujitsu scanners allowed ECH to get their patient insurance information quickly, easily, and securely into an electronic format. Post document management system implementation ECH takes less than one minute to have a batch of insurance remit forms scanned and stored into the document management solution.

Version and Access Control with the help of document management solutions: The advanced document management system offers detailed version control capabilities which is essential for maintaining document integrity and tracking changes accurately. It systematically records all document revisions, averting confusion and errors caused by multiple file versions. The advanced document management system offers access controls, user permissions, and end-to-end encryption protect sensitive document information.

Workflow Automation with help of document management solutions: The document management system can mechanize routine tasks such as document routing, approval processes, and notifications, minimizing manual intervention and expediting workflows. For example, DocuWare combines a document management system with a workflow management system to simplify invoice processing. Finance manager with help of the workflow management system can pay entire invoices or partial amounts using digital stamps. The workflow automation not only minimizes human error but also empowers team to focus on high-value tasks, thus boosting work quality and removing bottlenecks that at times also hurt bottom line. 

According to the German study Process Mining & RPA 2019 by IDG, 90% of companies want to automate their processes with the focus is on time and cost efficiency. The workflow management system can standardize and automate any workflow that drives important business processes. For example, an HR department leveraging document management systems can automate the onboarding process, establishing predefined document submission, review, and approval workflows, ensuring a consistent and efficient onboarding experience for new employees. Workflow automation saves time, reduces errors, enhances accountability, and enables organizations to allocate resources more strategically. With document management systems -driven workflow automation, organizations achieve higher productivity and operational efficiency across various departments and tasks.

Automation and Workflow Optimization with document management solutions: The automation can help streamline processes and reduce the risk of errors, resulting in increased efficiency and cost savings. This can be achieved through automated workflows, electronic approvals, and other advanced features in document management systems. Moreover, the advanced Robotic Process Automation software robots can perform tasks such as data entry, data extraction, and document routing, freeing up employees' time and reducing manual errors. It also offers workflow automation capabilities, allowing organizations to streamline and optimize their document-centric processes. The organizations by automating tasks, notifications, and approvals can improve efficiency, reduce bottlenecks, and enhance overall productivity.

For example, companies can save valuable time managing these documents by incorporating splitting and merging tools into their applications. The document management systems rather than copying and pasting or rescanning documents, employees can simply disassemble or reassemble them programmatically. This allows them to quickly consolidate records, combining relevant documents into a single, comprehensive PDF that’s easier to track and manage.[5]

Integration with various business systems with document management solutions:  In last few years, the digital document management system has become the primary first step in the digital transformation journey.  It helps business in many business functions including purchase orders, invoices management that enables easy access, facilitate faster decision-making and improve process efficiency. It helps sales representatives access customer-related documents directly from the CRM platform that provide a holistic view of customer information. The integration between document management systems and other business systems eliminates manual data entry, reduces errors, and improves workflow efficiency. The document management systems are designed to integrate with customer relationship management and enterprise resource planning systems, data analytics applications, and other applications that enables a unified view of information and streamlined workflows.

Enhanced Security and Compliance features with document management solutions: It provides advanced access controls, including role-based permissions, two-factor authentication, and granular access rights. The access control in document management system ensures that only authorized personnel can access sensitive documents. It offers multi-factor authentication, such as requiring a password and a fingerprint or facial recognition, can provide an extra layer of security. The document management systems employs robust encryption techniques. Some of the basic compliance features, including audit trils, data retention policies, and secure storage, enable organizations to meet regulatory requirements and avoid penalties. The compliance measures ensure that only authorized personnel can access and modify documents, enhancing security and compliance. It caters to industry-specific regulations, such as GDPR (General Data Protection Regulation) or HIPAA (Health Insurance Portability and Accountability Act).

For example, a growing financial services company needed to transition to more collaborative and digital ways of working. They also needed to enable access to client documentation from multiple sites while maintaining security of financial and personal information to ensure EU General Data Protection (GDPR) compliance. Xerox ensured a secure digital transformation with help of its device and process analytics. It helped them clarify their digital ambitions and better understand information flows and user access requirements with a secure solution that could grow with them. It also helped the financial services company reduce information and security risk, increase end user productivity and realize cost, time and storage space savings of 25–35 percent. [7]

Document management system helps in ensuring regulatory compliance: The document management system plays a pivotal role in ensuring regulatory compliance by aiding organizations in maintaining accurate records, tracking changes, and adhering to industry-specific standards. The document management system streamlines compliance-related tasks, including document retention and audit trails, simplifying the monitoring and reporting of compliance activities. For example, an IT product company with help of document management system ensures that records remain accurate, accessible, and correctly archived, streamlining compliance audits and mitigating non-compliance penalties.

 For example, The APS Bank is a leading bank in Malta established in 1910. In 1970, the Bank was incorporated into a private limited-liability company, and in 1990 it was granted a commercial-banking licence. The Bank wanted to replace a legacy system with a specialized statement printing solution that is capable of integrating with the Bank’s digital channels in a more streamlined and efficient manner. In doing so, the Bank chose to consolidate the digitization efforts into one platform.[9]

Document management system help shield sensitive information: The document management system offers formidable security measures to shield sensitive information from unauthorized access and breaches. It empowers organizations to enforce stringent access controls, guaranteeing that only authorized personnel can view or modify specific documents. It also keeps track of who had viewed a record, when it was accessed, and how it was edited. The managed documents are highly traceable and can be labeled to enable automated warnings. For example, a healthcare institution employing document management solutions can safeguard patient records by restricting access to medical staff with the requisite credentials. Furthermore, document management solutions often integrate encryption, audit trails, and automated backups to mitigate data loss or theft risks.

For example, a regional French government needed to find a better way to secure and distribute captured meeting notes to Commission members. Their existing manual process was wasteful, time consuming, unsecure, error-prone and cost $25,000 over five years — with a potential printer breach costing as high as $2.1 million. Xerox process analytics helped map a step-by-step process to identify inefficiencies and flag security and compliance risks and developed a custom digital process to better secure and distribute captured meeting notes to Commission members. The regional French government is now able to reduce exposure to security risks, turn a 23-minute task into a 1-minute one and reduce costs by 90 percent. [10]

Moreover, a sustainable reduction of paper usage with the help of the document management system makes significant contributions to sustainability by substantially curtailing paper consumption. The organizations by digitizing documents and promoting electronic workflows, can decrease their reliance on printed materials, yielding far-reaching environmental benefits. The reduced paper usage facilitated by document management system adoption is a vital step toward a more eco-friendly and cost-effective document management approach.

 What lies beyond document management system?

Ryan Thompson in a blog - 8 Benefits of Document Management Systems for Your Business has delved into exploring benefits of document management systems. Some of the crucial benefits of the document management systems proposed by Ryan Thompson include - enhanced document accessibility, seamless collaboration, precise version control, robust document security, efficient workflow automation, sustainable reduction of paper usage, effective compliance management, efficient search and retrieval. Moreover, the effective integration of AI, machine learning, and blockchain with the document management systems has offered a significant automation to various aspects of document management systems, making document categorization, retrieval, and analysis more efficient, accurate and secure. It is also observed that the regulators have also mandated tighter data governance, fast query response times, robust security controls, and documentation of compliance reports.

The world business leaders have recognized the benefits of implementing document management systems. The documents management system is set to play a major role in financial, banking, and even manufacturing industries where the need for digitization is critical.

Read -  Digital Transformation in Document Management ( Part - One)

[1] 5 Document management trends to track, Di Mace, June 2022

[2] How Document Management Can Improve Collaboration Across Teams and Departments, June 2023, docxellent

[3] How Document Management Can Improve Collaboration Across Teams and Departments, June 2023, docxellent

[4] How Document Management Can Improve Collaboration Across Teams and Departments, June 2023, docxellent

[5] Document Management: A First Step to Digital Transformation, accusoft

[6] Case Study: Digital transformation in document management, canon

[7] The power of analytics. Uncovering insights beyond devices and print, Xerox

[8] Document Management and Standard Operating Procedures in the Pharmaceutical Sector, Ana Canteli, October 2023

[9] Case Study: Digital transformation in document management, canon

[10] The power of analytics. Uncovering insights beyond devices and print, Xerox