Choosing the right document management system (DMS) can dramatically improve your business’s efficiency, collaboration, and information security. However, with the hundreds of DMS currently available, confusion comes easily in what will work best. In this article, we will discuss different types of document management systems and some guidelines for selecting the perfect fit for your business.
What Is a Document Management System?
A Document Management System (DMS) is software or service that stores organizes, and manages digital documents and records. Its main purpose is to ensure accessibility and retrieval and the safe sharing of documents across an organization. These document management solutions will clear up paper clutter, smooth workflows, and enhance data security while integrated into your operations.
Key Types of Document Management Systems
DMSs are available in several types, each of which has a specialized version for different business needs. So, let’s take a look at the main kinds to see which one may suit your company best.
Cloud-Based Document Management Systems
All documents are maintained in cloud based document management systems, which allow users to access, view, and modify documents from any other internet enabled device. This option is useful for businesses with remote teams and for businesses that require an expandable and flexible solution.
Key Features
Remote Access
The cloud-based system will enable employees to work virtually anywhere, definitely creating an environment of flexibility and encouraging productivity across different locations. Cloud-based systems are very useful for companies with remote or distributed teams.
Scalability
With growing needs for document storage, scalability for cloud solutions can easily go up or down. Most of the providers for cloud-based DMS have flexible subscription plans that adapt to your business’ evolving needs, so you only end up paying for what you use.
Automatic Updates and Backups
The DMS provider in the cloud will automatically update software, security patches, and backup operations regularly. So, you don’t have to bother with making software updates and backups, and your documents are always safe and accessible for retrieval whenever you might need them without depending on other IT people in your organization.
On-Premises Document Management Systems
On-premises document management systems store documents on your business’s servers, hence a great control over data but demanding immense IT resources for its deployment, maintenance, and security. Companies that require stricter security policies or sensitive data tend to like this option.
Key Features
Greater Control
The systems allow businesses to store data on their servers, which can prove to offer more control and flexibility in managing sensitive information. The approach is largely favored by businesses in heavy regulation industries.
Customization
The On-Premises are highly customizable according to the organization’s unique needs, and businesses can adjust features and functionalities to align with unique workflows and compliance requirements.
Enhanced Security
Since the data is not being stored on external servers, one can enjoy better security on-premises DMS. Industry that requires confidentiality and adheres to strict data protection regulations would require this kind of choice.
Hybrid Document Management Systems
Hybrid document management systems incorporate components of both cloud-based and on-premises storage. Therefore, they work for organizations that require hybrid storage where some data needs local storage, and other information requires access remotely. This system helps expand and assures sufficient safety of sensitive information.
Key Features
Dual Storage Options
Hybrid systems allow organizations to keep the most confidential data in-house and copy other types of documents in the cloud. This provides a balanced approach to data storage.
Seamless Integration
Hybrid systems, in most cases, integrate with various business applications in which their on-premises and cloud-based functions transition seamlessly.
Data Redundancy
Hybrid systems use data redundancy because it provides backup and guards against loss in case one storage method fails, thus reducing the risks of data loss.
Open-Source Document Management Systems
Open-source document management systems are open-source, meaning that the source code is offered freely for modification. Therefore, this option is suitable for business organizations that are technically adept and would want a highly customized DMS but would not like to have the commitment of maintaining ongoing subscription fees.
Key Features
Customizable
Open-source DMS can be customized to fit specific business needs; thus, they are highly adaptable for organizations that need unique workflows or specific compliance measures.
Cost-Efficient
Open-source systems tend to cut costs on licensing fees, while businesses would incur a cost on setting up, maintaining, and supporting a business system.
Community Support
Open-source DMS will normally have an active user community that contributes to its improvements, offers troubleshooting help, and shares best practices towards creating a friendly atmosphere for ongoing improvement.
Enterprise Document Management Systems
These systems are designed for large organizations that require high value-added features like workflow automation, regulatory compliance, and integration with other enterprise software. This system is more beneficial for companies dealing in voluminous documents and require efficient solutions for their management.
Key Features
Workflow Automation
EDMS may include automated tools for routine workflows, like document approval, classification, or archiving, with a view to cutting down on manual work and increasing productivity.
Compliance Tools
EDMS are designed to meet regulatory requirements, so it includes the feature to meet regulatory standards in their domain, such as HIPAA, GDPR, or SOX. Hence, it is important for domains that mandate regulatory compliance.
Integration Capabilities
EDMS can easily be integrated with any other systems within the enterprise, such as ERP, CRM, or HR platforms, in creating a workflow, which will ensure that all functions are flowing properly within the business.
Collaboration-Based Document Management Systems
Collaborative DMS is mainly focused on teamwork interaction and facilitates file-sharing with real-time editing and version control of documents. Organizations whose business operations emphasize teamwork, where many users share files often, are perfect for this type of system.
Key Features
Version Control
Collaborative systems keep track of various versions of the documents so that users can view and revert to previous versions if needed, maintaining document integrity.
Real-Time Editing
Multiple users can work on a document, ensuring real-time collaboration and efficient teamwork without the delay of file-sharing processes.
Access Control
In a DMS based on the collaboration approach, permission can be customized for every document. This enables control over who can view, edit, or share your files, improving security and lowering the possibility of unauthorized access.
How to Choose the Right Document Management System
This depends on the size and scope of the business, the scope of work, and needs associated with it. Critical factors for the right DMS are highlighted below:
Business Size and Scope
For small businesses, cloud-based or open-source systems can prove useful. They’re cost-efficient and pretty flexible. Large corporations may need enterprise-level solutions with workflow automation tools and compliance products.
Data Security Needs
Business operations in industries where information security is of top priority may opt for on-premises or hybrid solutions. Companies that have severe regulatory compliance have to concentrate on systems that offer extremely robust compliance and audit features.
Scalability
If you have a massive growth plan, you should consider an elastic solution that can scale up with your document repository needs. Compared to on-premises solutions, this can be easily achieved in cloud and hybrid DMS.
Budget
While cloud-based and open-source ones are mainly more price-friendly, on-premises and enterprise solutions tend to be more expensive at first. Still, they might eventually save those organizations that need special customization or control over the data.
Collaboration needs
If you often need collaboration in your organization, you should go for a DMS that is collaboration-focused, such as real-time editing and versioning.
Requirements for Customization
If you are in a business that uses particular workflows or regulations-specific requirements, then open-source and enterprise DMS options allow customization at the highest level, where you can customize the system to your specific needs.
The right DMS helps enhance productivity, simplify workflows, and ensure better security of data. A different characteristic defines every type of document management system: flexibility for cloud-based solutions or control for on-premises options. Be it a small business or a large corporation, the bottom line here is to get a match between specific needs and the features offered by each type of DMS.
This is where asset management company, among others, would need to select a document management system that focuses more on data security and compliance. Putting in place the right document management services will bring efficiency, collaboration, and peace of mind in managing documents.
