A document management system is a system that is used to efficiently track, manage, and also store documents. With a document management system (DMS), an organization’s use of paper is reduced drastically. Most of these systems are capable of keeping a record of not just one, but several versions of a document that are created and modified by different users.
As is the case with introducing any new system in your organization, when introducing a DMS, you might meet resistance from your employees. Your team/employees will need to be convinced about how the system will benefit not just the organization, but them as well.
We are listing the top four benefits of a Document Management System here:
Advantage #1: Easier compliance
Proper document management is the first step to achieving compliance. The system will allow your organization to easily prepare for audits, maintains audit trails, version control of documents to differentiate between two versions, reconstruction of documents, and clear visibility of any action that is taken to help with the compliance of document management. Your employees get instant and secure access to share documents with outside auditors.
Remember that proper compliance can help you grow your business by selling in regulated industries or going international.
Advantage #2: Better knowledge management
Documents and records contain critical information for the company. Your organization manages massive amounts of documents – contracts, sales decks, proposals, HR guidelines, training manuals, onboarding material, and more. A document management system plays a critical role in ensuring your organization can manage all these documents electronically within one secure central repository.
A McKinsey report states that employees spend 1.8 hours every day (9.3 hours per week) searching and gathering information. With a DMS, your team can store, manage, sync, and organize all your important documents. When you need access to documents in a hurry, the system allows you to classify, search, and retrieve the right information at the right time. An efficient workflow enables employees to save time.
Advantage #3: Training
Reduce training time and costs. Take charge of all employee onboarding and training and ensure your organization complies with all its training and reporting requirements.
The system’s tracking capabilities provide clear processes and guidelines regarding training schedules, capturing training costs and expenses, employee development, and succession planning. The system also automatically notifies employees and supervisors when a refresher course or new training is required.
Advantage #4: Non-conformances tracking
Non-conformance issues arise with products that do not meet the required specifications. Managing conformances with manual processes for identifying, documenting, and rectifying and documenting on paper is extremely time-consuming. A document management system can capture, manage, and track non-conformances across the organization. This allows you to identify issues, fix them, and get back into compliance mode.
Rather than just letting you know when a process fails, the system gives you a clear route for understanding where a process might have failed.
Why Document Management Matters
Proper documentation improves business operations and compliance. Great documentation demonstrates to your prospects and customers that you are a professional organization. It also allows founders to delegate activities properly. Furthermore, with all your organization’s important documents stored away electronically and safely, the system ensures business continuity – even in the face of a natural disaster.
With a document management system in place, your organization and your employees have more freedom, free time, and peace of mind, allowing employees and the company time for professional growth.
There is no doubt that a document management system can provide both tangible and intangible benefits to an organization, as well as all its people. In this day and age, when compliance is the name of the game, it is not a question of whether, but of when, an organization transitions from paper documents to paperless electronic documents. The impact a document management system has on your organization can be felt immediately.
Any organization that wants to get ahead of the competition and stay ahead in the game, any employee who wants to be relieved of the stress of creating blunders and also has easy and quick access to information at the right time, will benefit from the document management system.