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How Document Management Systems Prove Cost-Effective?

DMS is described as: “Using computer software and systems to allow storage, management and tracking of electronic documents and images of information that is printed on paper and captured using an electronic device such as scanners.”

Some praiseworthy features of DMS include:

  • Locking to prevent simultaneous editing of the document by separate sources
  • Version control to keep track of who changed what and when
  • Roll  back in the case of premature release or error
  • Audit trails that allow users to observe what happened to the document through its lifespan

While most organizations, businesses have switched over to document management system in an attempt to reduce organizations costs associated with physical data storage others argue about its cost-effectiveness.

cost effective dms

If you’re an owner of an established business, a startup or an SME and you’re confused about how management system may be we have compiled a list of the way it lives up to its reputation:

Cost Of Storage

The most significant costs associated with physical data records are costs associated with their maintenance and storage. The extra filing cabinets in workplaces that occupy the many data records of the company may be crucial for maintenance, however, using an electric system to manage the records allows companies the independence of removing these cabinets and freeing space for more employees that lead companies towards success.

Cost Of Supplies

One major cost that most organizations choose to ignore or consider unavoidable are the costs associated with printing supplies, such as paper rims, toners, printer maintenance and extra copies. Document management system helps to eradicate costs that are associated with multiple copies and prints.

Along with saving on material, the labor associated with printing tasks can be redirected towards other tasks that help generate revenue for your business.

Cost Of Labor

A company may lose many hours of employee time as they search for a specific data record. According to a report:

-50 % of employees spend time looking for documents and 18 minutes to locate a particular document.

Having appropriate system for documents management help eliminates the costs associated with losing out or misplacing company data. Physical storage may cost the company its reputation when certain records go missing. Also in case of a lack of organization, it might take a long time for a physical record to be found when required.

Cost Of Delay

Businesses and workplaces have become more efficient with streamlined workflows optimizing the efficiency of the whole system, and there are lesser chances of delays.

Documents can be accessed by the right people, in the right order, at the right time, through a secure portal. Efficient workflows have resulted in efficient customer's feedback and payments.

Cost Of Threats

Employees who are terminated or turn rogue can physically access company records and also cause damage to the company. With document managing software data remains safe even after termination of employees.

Access settings can be altered with minimal cost and without effort in order to protect data from the employees. Organization does not have to go to the extent of changing locks and security alarms which would prove costly.

According to a source, 77 % of small Australian business owners would like to access their files remotely

DMS allow authorized personnel to access the information stored in the system wherever and whenever needed. Not only does it reduce the chances of sensitive company data getting stolen but it also helps all parties stay in touch with updated versions of the documents.

Cost Of Recovery

Without the presence of physical data storage at your workplaces, the threat associated with damages to the data is minimal. The software for documents management allow data backups to be secured in other geographic locations, which can be accessed in case back up is required.

Not only that, it eliminates the need for recreating any physical data records in case of a calamity which saves time and cost both.

Take Away

The most important and significant aspect of an organization is its data records, without which an organization may not be functional. From salary slips to contracts, from payment orders to procurement documents, form the most basic to the most confidential; all types of data are responsible for the creation of an organization’s backbone.

Document management systems have indeed revolutionized data compilation, maintenance and storage, and with the advancement in technology, numerous companies are developing advanced solutions to cater to the needs of businesses.