Document Management: How to Do It and What Is It?
How is your current document management practice, including creating invoices and manipulating sales documents, proposals, signing contracts, and other legal documents?
If you don't have your own system for these activities or if yours is out of date, it's very likely that you're losing money, leaving critical data vulnerable and wasting your team's valuable time.
According to Fortune Business Insights, The global document management market was from US$ 5.00 billion in 2021 to US$ 5.55 billion In 2022, Expected to reach US$ 16.42 billion unto 2029 at a CAGR (compound annual growth rate or compound annual growth rate) of 16.8% during the projection period.
In fact, the numbers show how important good document management is to conduct business and the potential to maintain a centralized document repository in your organization. But, after all, what is document management and how to do it efficiently?
What is document management?
Document management is a set of practices that defines how an organization manages, stores, protects, tracks, and controls access to its information.
This includes not only the organization of documents in physical or digital formats, but also the implementation of systems to ensure the security, integrity, and accessibility of the files.
Document management is a critical part of a company's administration, as it allows the preservation of important data, increases efficiency and improves productivity. Good management of this information can help protect the privacy and security of sensitive data.
However, with the increasing amount of information and documents generated in a company, attention is needed so that this management does not become complicated and confusing.
Types of document management
There are several types of document management, each with different objectives and approaches. Each species is important for different aspects of running a business, and the appropriate choice will depend on the size of the company, the type of information to be managed, and other factors. Here are some of the most common types:
Management of physical documents
This type of document management is applicable to documents in physical format, such as paper or microfilm. This includes the classification, storage, indexing, and arrangement of these documents.
In the past, it was very common, for example, for law firms to keep physical files of all their processes, including the classification of the cases by category, the indexing of the cases to facilitate retrieval, and the disposition of the cases after a specific period of time.
Digital document management
This type of document management focuses on creating, storing, protecting, and accessing electronic documents through specific management systems.
Companies Enterprise are good examples of how this happens in practice. Managing your documents includes creating backup copies of your data, protecting information with passwords and encryption, as well as the use of platforms, such as Clicksign, to sign, index, and store contracts efficiently.
Records management
Records management is a sub-area of document management that focuses on the preservation and protection of important regulatory, legal, and corporate information. This includes sorting, indexing, and arranging important records.
According to Microsoft, a record is a document or other electronic or physical entity in an organization that serves as evidence of an activity or transaction performed by the organization and that requires retention for some period of time.
“A well-designed records management system helps protect an organization legally, demonstrates compliance with regulatory obligations, and increases organizational efficiency by promoting the disposal of outdated items that are not records.”
Content Management
Content management is a type of document management that focuses on creating, storing, publishing, and distributing information and content.
It is especially important when managing enterprise content via Enterprise Content Management System (ECM), that is, enterprise content management systems, such as SoftExpert ECM, which allow the monitoring and updating of information to ensure that it is current and relevant.
What is the importance of document management?
In an increasingly digital and information-driven business landscape, effective document management plays a vital role in several key areas of organizational functioning.
By automating manual tasks such as searching, archiving, and sharing documents, the company saves valuable time and resources. This allows employees to focus on more productive and strategic activities, driving growth and innovation.
Additionally, document management provides a solid foundation for making informed decisions. Accurate and up-to-date information is available, allowing managers and teams to assess situations based on reliable data. This can lead to better decisions, greater agility in market changes, and a significant competitive advantage.
What are the benefits of document management?
The effective implementation of document management brings a series of benefits that directly impact the operation and success of a company, regardless of its size or sector of activity.
Check out some of these benefits:
Cost reduction
Well-structured document management reduces operating costs in a number of ways. Eliminating or reducing the use of paper and printing results in savings in supplies and resources, in addition to reducing physical storage costs.
More agility in processes
With a document management system, processes become more agile and efficient. The quick retrieval of information and the ability to access documents from anywhere streamline decision-making. Automated workflows allow for faster approval and review, eliminating the need to wait for manual approvals.
In addition, workflow automation minimizes human errors, such as incorrect copies or loss of documents, improving the accuracy and quality of operations.
Standardization of processes
Document management promotes the standardization of internal processes. With documents and information organized in a consistent and accessible way, it's easier to establish standards for creating, storing, and distributing content. This ensures that all departments and teams follow the same procedures, which leads to greater consistency, quality, and compliance in operations.
Quick access to information
With the efficient indexing and organization of documents, it is possible to retrieve information quickly through searches based on keywords, dates, or other criteria. This increases productivity, streamlines decision-making, and minimizes the likelihood of lost documents.
Improved communication and collaboration
Document management facilitates communication and collaboration between teams and departments. The ability to securely share documents, collaborate in real time, and track changes increases the effectiveness of project teams and improves internal cohesion. This is also particularly valuable in companies with geographically distributed teams.
Facilitating audits and compliance
Document management simplifies internal and external audits, as it provides a clear record of document activities and changes. This helps the company demonstrate compliance with regulations and standards, ensuring transparency and trust with regulators and stakeholders.
What are the main challenges when managing documents?
Effective document management also brings with it a series of challenges that need to be overcome to ensure the integrity and accessibility of information.
Some of these include:
Security issues
One of the biggest challenges when managing documents is maintaining the security of sensitive information. Documents contain sensitive and strategic data, and any security breach can result in financial loss, reputational damage, and even legal consequences.
It's crucial to trust a tool that has strict access control systems, cryptography, and robust security policies to ensure that only authorized individuals have access to documents and information.
Lack of physical space
Storing physical documents requires space, and many businesses face a shortage of physical space to properly file their documents. Too much paper can also lead to disorganized and confusing work environments.
This highlights the importance of the transition to electronic document management, which eliminates the need for physical space and simplifies document organization and retrieval.
Loss or loss of documents
Paper documents are subject to the risk of loss, damage, or loss. Even with manual filing systems, there is the possibility of documents being placed incorrectly, lost, or damaged. According to the M-files survey:
25% of poorly filed documents will never be located.
Recovering a lost document can be time-consuming and, in some cases, impossible. Electronic document management would mitigate this challenge, as digital documents can be easily copied, protected, and retrieved in the event of incidents.
Difficulty retrieving information
With the increasing amount of information, finding specific documents can be a time-consuming and frustrating task. The lack of an efficient indexing system or an organized filing structure can make it difficult to find relevant documents quickly. This can result in lost productivity, project delays, and decisions based on outdated information.
Best practices for document management
Some tips are worth knowing to optimize and simplify document management even more:
Assess document management needs
Start by understanding your organization's document management needs and objectives. Identify the types of documents you handle, how they are used, and what are the main challenges you currently face.
Define the processes
Map the processes for creating, storing, sharing, reviewing, and archiving documents. Identify existing workflows and determine where optimization is most needed.
If possible, exchange physical documents with digital ones
In most organizations, large and complex archives have already become obsolete: the accumulation of papers occupying important space has been replaced by digital files.
According to McKinsey, a worker spends around 2.5 hours a day, or approximately 30% of the workday, searching for information in physical repositories, eliminate this barrier from your organization.
But be careful when migrating documents to the new management solution: remember to ensure that metadata is applied and that the organization is maintained.
Attention to the digitization of documents
It is essential to pay attention to some important factors when digitize documents to ensure that the information is legible and usable. This includes scanning with adequate resolution, adequate lighting, and automatic distortion correction.
To do this, choose a file pattern that is detailed, easy to search, supports high definition, and also has a compact size. Today, the .PDF extension has proven to be one of the most used.
Create a pattern to simplify data management
It's important to be able to easily keep track of any digital or scanned document. Therefore, develop an organization structure for electronic documents, assigning metadata to the documents to facilitate subsequent search and retrieval.
When naming files, always try to create small tags, labels written to facilitate the search. For example, “PROT” for protocols, “PGS” for paid bills, and so on.
Numbering files in order of priority is also an interesting option, since, within a folder, the operating system usually organizes the files in alphanumeric order.
In the same way, try to classify your documents according to their importance, date, and type to further facilitate the company's daily life, allowing for easy sharing and efficient collaboration of information.
Be that as it may, each company must create its own internal culture so that those involved in these processes understand the levels of hierarchy in the editing and access of documents, ensuring the security and confidentiality of the information.
Be careful with storage and security
Choosing the storage environment for this data is a vital task, since the security encryption of your files needs to be redoubled so that sensitive information cannot be accessed by unauthorized persons.
To do this, have a controlled access system, with strong authentication and authorization to access specific documents for specific users.
Then, perform Backups regular of your documents, to ensure that you can recover important information in the event of a technical problem or natural disaster and, little by little, migrate and categorize older files to shape the organizational structure of your environment.
Remember that, just as important as regularly monitoring your document management system, is having a information security policy clear and well established to ensure that all your employees know how to protect company documents.
What is document management software and how does it work?
Document management software, also known as Document Management System (DMS), is a technological application developed to simplify the creation, organization, storage, retrieval, sharing, and management of digital documents within an organization. This solution replaces or complements conventional paper-based document management methods, offering a more automated and efficient approach.
The operation of document management software is comprised of several interconnected functions. Let's check out the main ones:
Capture and scan
The process begins with the capture of the documents, which can be scanned from physical sources or created electronically. The software allows mass scanning and format conversion to ensure consistency and uniformity.
Storage
The scanned documents are stored in a centralized repository. The software organizes these documents into logical structures, such as folders, categories, or tags, facilitating subsequent retrieval.
Indexing and metadata
The documents are indexed with metadata, which is descriptive information about the content, such as title, author, creation date, and keywords. This makes searching and retrieving more effective.
Security and access control
Document management software allows the implementation of security levels and access control. Users may be authorized to access and interact with specific documents based on their roles and responsibilities.
Workflows and collaboration
DMS often includes the ability to create automated workflows. This may involve approvals, reviews, notifications, and other actions that can be assigned to different users. In addition, many document management systems offer collaboration features, allowing several people to work on the same document simultaneously. Changes can be tracked and versions can be managed.
Auditing and tracking
The software records activities related to the documents, including who accessed, modified, shared, or deleted a document. This is useful for auditing and history trail purposes.
Backup
DMS often include backup mechanisms, ensuring that documents are protected against loss due to hardware failures, natural disasters, or other events.
Integration
Many DMS can be integrated with other systems and applications used by the organization, such as business management systems (ERP), CRM systems, and productivity tools.
ERP systems and electronic signature in document management
The market offers a wide variety of document management tools, each of which has unique features and functionality. In this scenario, identifying the tool that will meet your company's specific needs requires research and analysis of the tools available in the market.
Here, we will focus on the advantages of two types of tools that can be valuable in the process of managing documents online. Check it out:
ERP systems
In the context of document management, ERP systems (Enterprise Resource Planning) are crucial in facilitating effective organization, accessibility, and collaboration in relation to documents.
ERP systems allow you to store relevant documents directly in related records, such as financial transactions, purchase orders, inventory records, and human resources. This creates a centralized approach to document management, making it easy to locate and reference it in the future.
Additionally, by linking documents to specific transactions, ERP systems ensure that each step of the process is documented and traceable. This is particularly valuable for internal and external audits, as well as for complying with regulatory requirements.
Electronic signature
The electronic signature plays a fundamental role in modernizing document management, allowing processes that were previously dependent on paper to be carried out digitally, efficiently and securely.
So, today, manage your documents on a platform of electronic signature It is an essential resource to meet the needs of the new consumer and of industry 5.0.
A study by aiim.org showed that 8 out of 10 respondents said they need to access corporate documents on their mobile device.
On the platform of Clicksign, is it possible Organize the documents signed or to be signed in folders, finalize, cancel and download if you want to store the file in a place of your choice - bringing mobility and efficiency to your organization.
On the platform, it is possible to:
- Create organized folders with access permissions to whoever needs them.
- Send documents for digital signature, with legal validity.
- Download your documents when you need them.
- Track the progress of document signatures.
In addition, with the growing concern for data privacy and the regulation of its protection, such as the LGPD (General Data Protection Law), it is crucial to choose a document management system that is reliable.
Clicksign is the only Brazilian company in the electronic signature market with ISO 27001 certification, which guarantees that the highest standards and guidelines for information security management are being observed.
Start signing and managing your documents 100% online! Try it for free, no credit card required.
