Digital Transformation in Document Management

The journey of document management that started in 1898, when Edwin Grenville Seibels designed the vertical file system, has changed its shape over years. Today, the Association for Intelligent Information Management (AIIM) define document management as – the software that controls and organizes documents throughout an organization. It is observed by both academicians and practitioners that document management system is adding value to the journey of digital transformation. They agree that as organizations embark on their digital transformation journeys, the integration of document management system stands out as one of the key components of this evolution. With organizations operating globally, seamlessly sharing, accessing, and updating documents in real time has become increasingly indispensable. [1] This basic requirement of effective document management in business and personal life makes the document management system key to our daily life.

The document management system is an efficient, time saving and easy way to report, view and control the version of a file. It is the process of handling documents in such a way that information can be created, shared, organized and stored efficiently and appropriately. The biggest driving factor for the digital transformation of documents is the ability to access them anywhere. As organizations grow, add locations, add employees, or restructure operations to facilitate more remote or home workers, you need a way for them to be able to be able to work collaboratively on documents.[2] Moreover, document management allows organizations to exert greater control over the production, storage, and distribution of documents, yielding greater efficiencies in the ability to reuse information, to control a document through a workflow process, and to reduce product cycle times. [3] It not only accelerates file processing but also ensures the effectiveness of capturing information and eliminating the need for manual document processing.

The success of the document management system is function of the key activities that includes - index electronic and paper records to a secure central hub, enable access for all, permission-based document access, instant document search and retrieval, automated workflow checkpoints from input to finalization, automated data retention and removal, time-stamp based activity, support governance, internal and external audits and compliance, workflow visibility, assured data and document security, and real-time management reports. These activities empower businesses to streamline processes, protect data, ensure compliance, and drive productivity in the ever-evolving digital landscape. For example, Leonardo – a key global player in aerospace, defense, and security as part of its digital transformation strategy wanted to break down document and data management silos in order to reduce costs and improve both process efficiency and risk management. Xerox’s capture and content services offered efficient scanning, digital archiving, and 3D printing services improved data accessibility of Leonardo that is more secure, auditable and compliant. Xerox helped Leonardo bring its print room, reprographics, technical publications library and distribution, and data control center into a single function.

Transforming document lifecycle

The changing technology landscape is transforming enterprise systems across industries and document management systems is no exception. It has witnessed significant advancements over the years. Implementation of a document management system is now almost a must-have for companies wanting to be competitive in the market and with a desire to digitalize its processes and is also surely a good step in the right direction for the environment. [4] its only apt to say that as your business evolves, your document management must evolve too.

The journey of document management system started as early as in 1980’s, when vendors began pushing solutions to the market to fuel a transformation from paper-based documents to electronic versions with multi-file format support. As these solutions evolved, they became the defacto hub for storing digitized content. [5] The document management system has changed the shape of organization over years from traditional paper-based systems to the digital document-based system. There are many successful document management systems in the play including – Xerox DocuShare, Office 365, Laserfiche, Box, DocuWare, Doxis Intelligent Content Automation, OpenText Extended ECM, iManage Work, Newgen OmniDocsm. This document management system is based on creating, storing, structuring, optimizing, controlling, securing, distributing, and governing document lifecycle.

A typical document lifecycle consists of the following steps: creation, scanning and indexing, storage, access, extraction, administration, collaboration, utilization, distribution, and reassignment. But a true document management system is beyond the realms of just managing documents.

It is observed that almost all the leading organizations realize that the effective document management can account for the entire document lifecycle. The document management system delivers full document controls, measurable cost savings, increase efficiency, offers productivity gains, helps in technology integration, improves service delivery, supports implementation of regulatory and legal frameworks, among many other benefits. For example, Volksbank Romania was buried under a mountain of paper. 8.5 million pages of loan contracts, combined with paper-heavy processing, made it difficult to process requests quickly and put a strain on their client relationships. Xerox DocuShare offered Volksbank better control over document management costs, secure and accurate digital storage of sensitive documents, instant access to documents and files, faster and more convenient application processing, and more flexibility to meet client needs. ?

The document management system is designed to streamline numerous business functions including finance, accounting, human resource, sales, and others. For example, L'Oreal – a leading global beauty company, implemented a collaborative document management system to streamline its product development process. With the new system, teams across different departments and countries can access product information, including formulas, ingredients, and packaging designs, in real time. [6] L'Oreal used the document management system to streamline its product development process. Most of the progressive organizations, just like L'Oreal , have been digitizing documents for decades, and many others have just started to move to document management systems.

Document management system is transforming business.

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 business 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 business considerable time and money. [7] 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.

With a structured digital transformation document management plan, transition to digital ecosystem will be faster, smarter, and better. Let’s explore the benefits that document management system brings into the business.

Achieving a sustainable reduction of paper usage with document management solutions: Document management systems brings in a significant contribution to sustainability by digitizing documents and promoting electronic workflows. It helps organization reduce its reliance on printed materials, offering far-reaching environmental benefits.

Document management system offers scan, capture and collect information. Document management system offers digitization of documents as the first and the most important process. It involves scanning, profiling and indexing of document.

Document management system also helps version and access control: 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 including amendments, clarifications, and approvals, ensuring legal compliance and transparency.

Document management systems comply with global data privacy regulations. The document management systems also help businesses comply with data privacy regulations, safeguard confidential documents, and prevent unauthorized access or data breaches. They also protect documents from loss or damage with backup and disaster recovery capabilities.

Document management system offer document access from anywhere at any-time The biggest driving force for a digital transformation of documents is the ability to access them from anywhere.

Document management system offers benefits of digital signature. Digital signatures help streamline the manual-based process of acquiring signatures for contracts, approvals, and any other governance or regulatory process. ?Digital signatures are a fast and convenient process for managing document management.

Document management system is an effective tool for data security, compliance, and governance. As more and more businesses store sensitive information digitally. It is critical that document management systems are built with digital security in mind mapping data privacy regulations like GDPR and CCPA.

Document management system is all about the cloud. The cloud-based software and advancements in technology have made it possible to access document management system as service. It ensures that documents are available at anytime, anywhere. It offers opportunity of scalable reach, ease of access, reduced costs, and drives the best document management systems.

Mobile-friendly is key to effective document management system. The advance document management system needs to be accessible from mobile devices through mobile app or mobile web. It is essential for any effective document management system to be mobile responsive.

Social integration is essential for effective document management system. In recent years social media and digital technology has successfully integrated into document management and file sharing systems. Also, it is essential for any effective document management system to be mobile ready and backed by popular social media platforms, like Facebook, Instagram, LinkedIn, and others.

Document management system offers advanced analytics and document insights The advance document management systems are expected to provide analytics and business insights. Moreover, it should also provide document tracking feature such as - who read your documents, how much time was spent on each page or each document.

Artificial intelligence is key to document management system success. ?AI-powered document management systems can automate tasks like document classification, data extraction, and even translation. It can also help businesses to reduce the time and costs associated with manual data entry, and also improve the accuracy of the data.

Document management system as services has made proposition more affordable and scalable. The cutting-edge document management system was once so expensive that many organizations chose to avoid it altogether, but the document management as service is designed with scalability in mind and enables business owners to transition smoothly to the digital transformation journey. ?

Document workflow and project management has become integral part of the transformation journey. Project management software comes in all shapes and sizes backed by effective document management system. Moreover, it also enables automated workflows and processes.

Collaboration is increasing with help of document management system. Many professionals prefer collaborative work environment. It generally enhances project efficiency. The advance document management system incorporates collaboration tools, and rich social technology functionality.

Document management system empowering the customer portals. It is accepted that customer satisfaction determines your bottom line. The new age customer portals are backed by document management system, among many other knowledge management tools. It allows customers to ask questions, comment on documents that have been uploaded, or download them for themselves.

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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. It is also evident from the marketing trends, where in last few decades digital document management system has become the primary first step in the digital transformation journey.

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[1] Managing Document Management Systems’ Life Cycle in Relation to an Organization’s Maturity for Digital Transformation; Simona Sternad Zabukov?ek, Sandra Jordan and Samo Bobek

[2] What Digital Document Transformation Means for Your Business; Document Logistix

[3] Overview of Document Management Technology, Gary Cleveland, National Library of Canada

[4] Document Management System – A Way to Digital Transformation; Sandra Jordana, Simona Sternad Zabukov?ekb, Irena ?i?ovska Klan?nikc

[5] The Future of Work: Rethinking Document Management Systems (DMS), Alex Panagides, DataDrivenInvestor - April 2019

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

[7] 5 Document management trends to track, Di Mace, June 2022