Document Management 101: What is document management and how can it benefit me?

By Sylvia Feldman, Optical Image Technology

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If your business is like most, you are probably dealing with documents and related materials in a variety of formats: paper, email messages, photographs, faxes, electronic documents, etc. Without a means to organize these communications, operational efficiency can become compromised. Worse, business-critical information can become lost.

Document management is a computer system that lets you store, retrieve, organize, track, and distribute all of your corporate information (as well as your administrative information), regardless of its format. Historically, the focus of document management was to manage paper. Using scanning technologies and computer storage, the objective was to make organizations’ paper documents available electronically. Document management has expanded its scope in response to improvements in IT that have made electronic communications commonplace.

Now, document management strategies encompass electronic media as well as paper. They have evolved to the point where they can truly optimize business performance, offering advances in productivity that eclipse the benefits that are associated with mere electronic storage and retrieval. Some of the basic components of a document management system are highlighted below:

• Imaging usually involves a scanner, and is used to make incoming paper documents available electronically.
• Importing allows you to add electronic information such as PDF files, MS Office documents, email attachments, and other documents to your electronic repository for storage and further processing.
• Indexing involves the assignment of keywords to documents so that they can be retrieved easily, similar to indices in an encyclopedia. Sample keywords might include customer name, document type, account number, etc.
• Storage takes place in a secure, centralized electronic repository, or your storage system can be used to point to the location of files in other software applications, if you prefer. All of your organization’s information can be made available to authorized personnel at the click of a mouse.
• Web access allows authorized personnel to access business information from any Web browser—regardless of a user’s location. Documents can even be viewed simultaneously by multiple people.

Advanced components are often added to a basic document management system to further increase efficiency—especially in cases where process automation is desired. These might include the following options:

• Archiving gives you the option to use less expensive media for the purpose of long-term storage of information that is no longer in the active stage of the document lifecycle. As part of archival, document retention and destruction schedules can be automated to ensure compliance with specific industry regulations. Archival also assists with disaster recovery strategies, making sure that you can retrieve mission-critical data in the event of an unforeseen disaster.
• Barcode server expedites processing by automating the sorting and indexing of scanned documents.
• COLD (Computer Output to Laser Disk) Enterprise Report Management allows organizations to capture print streams for easy storage and retrieval of computer-generated reports.
• Digital Signature capabilities provide organizations with secure, reliable storage of digital signatures. This component is particularly relevant for organizations that need to comply with document security regulations, as well as those who need to obtain signatures from people in various locations on a tight timeframe.
• Email Management allows organizations to automate storage of emails and log important information related to their email messages. It enables digital search of critical information that is stored in emails.
• Monitoring tools enable you to continually evaluate your system’s efficiency, identifying potential overloads, system failures, back-ups, etc. before they have the chance to become problematic.
• Reporting tools allow organizations to generate highly customizable reports and charts from all of the data stored within their electronic storage repository. This ability allows organizations to monitor workflows and to view audit trail statistics. It also simplifies HIPAA and Sarbanes-Oxley reporting.
• Workflow provides a means to electronically route your documents and specific tasks so that they can be processed in the most efficient method possible. An example of a simple workflow might include the simultaneous routing of a document in cases where multiple signatures are required.

What document management means for your business

When organizations treat incoming paper differently from incoming electronic communications, it can be a recipe for disaster. Documents can easily be lost, misplaced, or duplicated. Document management allows your business to store, organize, and manage information regardless of its format. It enhances your ability to process your work, helping you compete with larger organizations—even those with far more resources. An advanced system can even improve accessibility to information by tying together stand-alone line-of-business systems.

Document management can also help you to provide the option of self-service to your customers via a Web portal. The ability for customers to submit information online generates greater customer satisfaction and results in quicker turnaround times. Internal office processes can be simplified as well, and expedited through the use of document management. Payroll, invoicing, contracts, job applications, HR materials, certifications, personnel files, etc. can all be managed electronically. Access to corporate records is secure, and information is available immediately to authorized users.

What document management means for your customers

The ability to retrieve customer information immediately equates to faster turnaround time and better customer service. Service representatives have immediate access to relevant, accurate, up-to-date information about customers and transactions. Callers no longer have to endure long waits on the telephone while service representatives search for files.

When paper records are eliminated, privacy measures that are mandated by HIPAA and other regulations can be ensured (this protects your employees as well as your customers). Document management also allows you to automate appropriate follow-ups to customer inquiries. Faster, personalized service can lead to significant savings through decreased waiting time and increased customer retention.

What document management means for your bottom line

Obviously, your organization can realize significant savings by eliminating paper and associated consumables. Physical storage and maintenance costs are eliminated, and filing cabinet space can be reclaimed. Paper, printing, toner, and fax costs are minimized, as well as postage and shipping costs for documents that no longer need to be mailed.

The real ROI that is associated with document management lies in your ability to process more work without having to add staff. Automation improves turnaround time and reduces the potential for processing errors. Productivity—as well as communication—can also be improved with the ability to integrate line-of-business applications into your business processes. The ability to pull data from other software systems allows you to connect your enterprise with improved access to information.

By providing organizations with privacy and security measures that are impossible to enact under a paper-based system, document management also helps organizations to comply with industry regulations. This is a less tangible—but equally significant—ROI. Furthermore, the ability to automate document retention/destruction schedules helps with records management strategies and, at the same time, helps organizations avoid costs that are associated with eDiscovery.

Where is the best place to start?

The best way to implement a successful document management system is to begin with research—both internally and externally. Assemble a team with representatives from different areas of the business, and gain an overview of existing inefficiencies. Visualize an ideal scenario in which your processes are able to flow smoothly throughout your entire organization.

After gaining an overview of your enterprise, locate a vendor whose offerings match your requirements. Most vendors have a team of experienced consultants who can meet with you onsite and assess your specific business needs. Successful implementations are often the result of such evaluations by professional services teams. Make sure that communication channels are open throughout your organization, and be sure to communicate your needs to your prospective vendor. This is pivotal. Experienced vendors will listen to your needs, and will work with you as a partner to ensure your success.

 

For more information about Optical Image Technology and our DocFinity® suite of integrated document management and workflow solutions, please visit our website at www.docfinity.com, contact our staff at info@docfinity.com, or call our offices at 814-238-0038.

 

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