Guide to Document Management Systems and Software

Save money, protect data, and facilitate collaboration by going paperless

By Beth Stackpole, writer and editor, Beth Stackpole

1. Reduce filing and distribution costs. Digital documents are easier to file and access than paper, and emailing documents is less expensive than printing and faxing them. You can also save money on office and warehouse space because you won't have to physically archive old paper records.
2. Better protect company data. Document management systems enable companies to control access to digital files and to maintain a history of who reads which documents. Encryption options for email and stored files provide an even greater level of control.
3. Improve access to information by allowing groups of employees to share digital files more readily than they can with paper.
4. Facilitate compliance with government regulations such as Sarbanes Oxley (SoX) and the Health Insurance Portability and Accountability Act (HIPAA).
5. Bring consistency to business processes. You can use document management systems to enforce naming conventions, for example, or to ensure that employees follow strict approval processes.

Action Steps for Document Management Success
The best contacts and resources to help you get it done

Choosing the right document management system

There are dozens of document management systems and they come in many different flavors. Some systems are extremely complex and expensive, but others are simpler, cheaper and aimed at small business.

I recommend: This iMedia Technology Inc. FAQ will answer key questions about document management software. When you're ready to evaluate suppliers of document management applications, check the buyer's guide at Ziff Davis.

Focus on data recovery and security

Document management systems can help you safeguard your information by providing multiple layers of security, including audit trails, password protection and encryption. Be sure to drill down on the security and data recovery features of any package you consider.

I recommend: To get a handle on the security aspects of document management applications, check out the DocuAdvantage Blog, a forum for discussing technical issues related to this software category. To find out how you can create a secure content management system based on Microsoft's Office SharePoint Server 2007, visit Microsoft to download a white paper.

Consider a hosted or ASP document management offering

Consider an 'on-demand' or 'hosted' document management product. These applications are accessible over the Web through a browser. Buyers typically pay a per-user, monthly license fee to rent the software.

I recommend: VisualVault from Auersoft and GoFileRoom, part of Thomson Tax & Accounting, are two such offerings.

Don't forget the hardware

If you opt for an on-premise document management system, you will have to invest in hardware, including storage servers, scanners and, in sophisticated setups, microfiche scanners.

I recommend: For a compendium of resources on document management hardware, go to Knowledgestorm. eWeek has a meaty buyer's guide on the topic. Business.com lists vendors of document shredding and document storage services.

Get a jump on compliance

More and more industries are becoming subject to legislation that requires specific record-keeping procedures. For instance, Sarbanes-Oxley governs how companies must keep their financial records, while businesses in the health-care field have to comply with privacy regulations under HIPAA guidelines. Document management software can help companies across a variety of sectors stay on top of these laws.

I recommend: To see how document management systems can facilitate SoX compliance, go to the Sarbanes Oxley Compliance Journal or to Bitpipe for information on the subject.

Zero in on a legal document management system

The unique demands of legal document management have resulted in the creation of document management applications and system tailored the meet those needs.

I recommend: Business.com provides a page of listings of general legal document management systems as well as one dedicated to legal document management software.

Helpful advice for making the most of this Guide

• •  Don't get hung up on price. Document management systems are expensive so you need to do your due diligence to compare the investment against the costs associated with how you traditionally handle paper and documents.
• •  Storage requirements and security features are of utmost importance to the smooth operation of content management systems. Pay close attention to those aspects when evaluating them.
• •  Create a detailed data backup and recovery plan. You don't want to put the efficiencies and productivity boosts associated with the document management application at risk by not covering your bases in the event of system failure.
• •  Given the complexity of some of many business document management systems, opt for a service and support contract that includes unlimited support and upgrades, at least for the first year. That way you'll know more about what you need going forward.