Why your business needs a document management system

Project proposals. Technical documentation. HR records. Training resources. Marketing materials. Should we keep going?

Your organization runs on content. But managing it all is often harder than it seems. No matter what size your company is, you'll need help wrangling all those documents. 

Using a cloud-based document management system benefits companies by simplifying organization, streamlining collaboration, and improving transparency. Keep reading to find out how.

The challenges of document management

When you don't have a defined process in place, company document management is often a herculean task. Important files go missing, your network drives fill up, and people spend hours looking for the resources they need.

Some of the biggest document management problems companies face include:

• Siloed work: Departments and individuals use different systems to store and manage documents, making access difficult for others
• Cluttered network drives: Without a proper document management system in place, drives quickly become full and difficult to navigate
• Shadow IT: Team members or departments that are dissatisfied with your existing storage system turn to software your IT team has not approved, leading to security and compliance problems
• Disorganized databases: Lack of organization leads to people working with missing or incomplete information, which hampers productivity and increases risk

Without effective document management, you could face data silos, cluttered drives and databases, and shadow IT

Solving these problems is manageable for businesses that don't handle a lot of information — but those organizations are few and far between. 

Companies generate an enormous quantity of data every day, though they only keep a small portion of it. Finding a way to make sure your company keeps what you need and removes what you don't is critical for preventing serious problems down the line.

Establishing a strong document management system allows your organization to reach its full potential. But what is a document management system, and how do you know which one is right for your company?

What is a document management system?

A document management system (DMS) is a digital system that helps you manage the entire content lifecycle from creation to retention. It provides a framework for how critical information flows across your organization, streamlining workflows and boosting productivity.

Depending on your organization's needs, you might choose between an on-premises DMS or a cloud-based DMS. With an on-premises DMS, you store and manage all your documents on your in-house servers. While this option significantly reduces latency by keeping all your information local, it comes with higher upfront costs and limited storage space.

A cloud-based DMS, on the other hand, involves storing your documents on an external cloud server and managing them over the internet. This arrangement allows you to keep costs low and to scale, providing the agility your business needs to grow.

Document management system vs. cloud storage

It can be easy to mix up document management and cloud storage solutions if you're just dipping your toes into the cloud conversation. Although both options have cloud capabilities, they're different in a few key ways.

A DMS lets you transform documents, while cloud storage holds your files off-premises

Cloud storage systems simply hold your content in a secure location. These are typically consumer applications intended for personal use. For example, you might transfer your vacation photos to a cloud drive to clear up space on your phone. 

A DMS allows you to do more than just store your documents in the cloud. You can also transform your documents using integrated tools like:

• Document and data capture
• Secure file sharing
• Workflow automation
• Version control
• Electronic signatures (e-signatures)

These added capabilities make a cloud-based DMS a powerful platform for companies of any size, in any industry. 

What to look for in a document management system

Not all DMS solutions are equal. Keep the following features top of mind while you're evaluating different systems. 

Centralization

Any good DMS provides a robust centralized repository for all your content, from Word documents to PDFs to video and audio files. This repository creates a single source of truth for your entire organization, ensuring your people work with the most accurate and up-to-date version of your information.

Other benefits of a centralized cloud repository include:

• Easy access: Because there's only one point of access, people don't need to spend time searching for siloed documents
• Improved collaboration: Everyone can access, edit, and send the right documents to their collaborators all from one place
• Increased security: It's easier to protect information that's all in one place — grant or deny access to specific individuals, lock certain documents for editing, and apply advanced protections to sensitive documents

Look for a system that allows people to upload to the repository from multiple sources to create a more seamless flow of information.

Lots of storage space

Traditional on-premises storage infrastructure limits the amount of space you have for important documents. And when you run out, you have to buy new equipment — most of which will sit unused for long periods. Look for highly scalable, cloud-based DMS solutions so you can easily add more storage space as your company grows. 

Fast uploads

Look for a DMS that lets you quickly drop in multiple files at once for fast uploads

Uploading files to legacy systems can take a long time because of all the steps involved. A good DMS simplifies the upload process, so all someone has to do is drag and drop the files they want to upload from their drive or desktop into the browser. This method provides an easy, quick way to upload multiple files at once, boosting productivity.

Secure file sharing

Companies often need to share documents with customers and business partners, and workers need to be able to share resources with each other to get work done. A DMS with specialized file-sharing functionalities will store the document in a secure central location and limit the time each party can access it, reducing the risk of improper information usage. A good DMS will improve organizational transparency by tracking who accessed what files and when. 

Collaborative tools

Effective collaboration boosts efficiency and enhances company culture. Look for a DMS solution that enables multiple people to work on the same document simultaneously in real time. This functionality eliminates the back-and-forth editing through email attachments, which often leads to confusion and duplicate work. 

Why you need a document management system

As we move further into the 21st century, companies increasingly need to digitize for greater efficiency. Maybe you're already working toward a digital transformation, or maybe you're just getting started. Either way, a cloud-based DMS can help make the journey a whole lot easier. Here are some of the top reasons why.

Enjoy easy accessibility

Ease of access is one of the biggest benefits of a DMS. These systems help break down information silos so people don't need to scour the whole organization for specific documents. 

Many advanced DMS solutions also offer smart search and artificial intelligence assistance capabilities, which make finding information easier than ever. These technologies can scan and extract specific information from documents, so searchers can pull exactly what they need without having to open and skim through multiple files.

Plus, a cloud-based DMS allows workers to access and edit documents from anywhere with an internet connection. Whether they're logging in from the office, the kitchen table, or a favorite coffee shop, they can quickly retrieve the materials they need to get their work done.

Increase productivity

Knowledge workers often feel as though they don't have enough hours in the day to get their work done. On average, workers only spend about 53.3% of the day on productive work. So what's eating up all their time? 

Research has proven that workers spend at least 25% of their workweek just searching for the resources they need to do their work. Implementing a DMS makes it easier for people to access the right documentation so they can stay focused on their tasks.

Improve security

You don't want just anyone getting hold of your organization's most sensitive information, especially since the average cost of a data breach has been steadily rising since 2013 — not to mention the fines involved with noncompliance to critical cybersecurity regulations like GDPR and HIPAA. 

Implementing a DMS can reduce the risk of a data breach. DMS administrators can grant or deny access to sensitive information as needed to prevent access by unauthorized people. And check-in/check-out features monitor document access, allowing you to keep track of who can see what information and when.

Additionally, most cloud-based DMS systems use automatic backups, enabling easy recovery in the event of a disaster.

Get organized

As your business grows, so does the number of documents you create. Without a centralized repository to store all these files, you run the risk of creating information silos and losing critical documents.

A DMS stores all your documents in one easily accessible place, so you can ensure everything follows a logical organization scheme. Document categorization capabilities like file-naming conventions, tagging, and rating can all make locating files significantly more efficient.

Free up physical and digital storage space

Having too many documents on your drives reduces their function and makes it more difficult to get work done. Moving those documents to a DMS frees up valuable space, enabling more efficient work. 

The same goes for paper systems, as well. Any company that uses paper documentation knows file management is complicated. Implementing a DMS reduces your reliance on physical systems, so you can get rid of filing cabinets that take up valuable floor space. Plus, you'll cut costs and become more sustainable by printing less paper. 

Get real-time updates and feedback

It's tough to share knowledge and feedback using traditional methods like locally stored documents and spreadsheets. Even with features like commenting and tracking changes, it's hard to make sure everyone is on the same page — literally.

A cloud-based DMS allows people to work on the same document simultaneously, enabling more effective communication and reducing the risk of duplicate work. Everyone can make edits and see what others are doing instantly, so they can get more done in less time. 

That said, the ability to leave comments is still essential for asynchronous environments because it allows workers in different time zones to collaborate. If your organization has a geographically distributed workforce, make sure you keep the needs of various teams in mind.

Keep track of edits and revisions

Editing documents through email attachments worked once, but in today's work environment, this method is simply impractical. It's too easy to get lost in long email chains, and the risk of human error is high.

Implementing a DMS eliminates the need for long back-and-forth conversations by keeping your documents in one location. All you have to do is grant access to your collaborators and get to work.

Version control capabilities ensure you're always working on the most up-to-date version of your documents. And a roll-back feature enables you to return to an earlier version in case you find an error.

Enhance communication

With an accessible cloud-based DMS, it's easier to communicate and collaborate with your people

Clear communication is critical for success. A DMS streamlines collaboration and communication among your team members, customers, and business partners. 

A cloud-based DMS allows you to automate document distribution by selecting the proper recipient, time, and communication channel. You can also reformat documents to match your recipients' preferences in just a few clicks, saving time and maintaining good relations with all parties.

Work toward compliance

Attempting to comply with industry and government regulations is difficult when you don't have a proper management scheme in place. Critical documents can easily fly under the radar, opening your company up to security and compliance risks.

Audit trail capabilities help you prove to auditors that your company is following critical standards and regulations by tracking document versions, edits, and involved parties. 

You can also use an advanced DMS to automate compliance functions for specific files. Artificial intelligence and machine learning capabilities allow you to categorize and secure every document with ease.

Be more transparent

Transparency is an often underrated contributor to successful document management, but it's among the most critical. Without a transparent system, you're more likely to run into issues like information inaccuracies, noncompliance, and cybersecurity risks.

A good DMS increases transparency across your entire organization. Because all your documents are in one place, everyone works with the same information. Edit tracking features allow you to monitor what people are doing with your documents. And audit trails allow you to ensure you're in compliance with any standards or regulations that apply to your company.

Discover the power of the Content Cloud

With a single secure platform for all your content, Box enables you to manage the entire content lifecycle: file creation, co-editing, sharing, e-signature, classification, retention, and so much more. We make it easy for you to collaborate on content with anyone, both inside and outside your organization. Frictionless, enterprise-grade security and compliance are built into our DNA, so you get total peace of mind that your content is protected. And with 1,500+ seamless integrations — as well as a range of native capabilities, like Box Sign — the Content Cloud provides a single content layer that ensures your teams can work the way they want.

The Content Cloud is a game changer for the entire organization, streamlining workflows and boosting productivity across every team. Contact us today, and explore what you can do with Box.

**While we maintain our steadfast commitment to offering products and services with best-in-class privacy, security, and compliance, the information provided in this blogpost is not intended to constitute legal advice. We strongly encourage prospective and current customers to perform their own due diligence when assessing compliance with applicable laws.