7 Stats That Will Make You Rethink Your Document Management Strategy

Stats that will make you rethink your document management strategy 

The following document management statistics reveal the importance of effective and modern document management. They may make you decide it’s time to choose a document management system that’s a better match for your current needs.

1. Ninety-one percent of organizations report data quality issues that hurt operations

Data quality is a significant issue for many businesses. In the Great Expectations State of Data Quality report, 91 percent of respondents reported that data quality issues hurt their operations and performance. However, only 23 percent said data quality was an organizational focus.

The report cited common data quality problems, including a lack of shared metrics, unreliable data and apps that do not work correctly when connecting to data.

Today’s cloud-based file sharing and document management systems can overcome many significant data quality issues by:

• Centralizing data storage to create a single source of truth
• Implementing automated validation to catch errors before they arise
• Providing real-time access to the most current document versions
• Establishing consistent metadata standards across all document types to ensure documents are easily found when searched for.
• Enabling teams to collaborate from a shared database to reduce discrepancies and inconsistencies

2. Nearly half of workers struggle to find documents efficiently

Manual document management wastes a lot of time. In a 2023 Adobe Acrobat survey, 48 percent of respondents said they struggle to find documents quickly and efficiently, while 47 percent feel their company’s online filing system is confusing and ineffective.

These are some other telling statistics from the survey:

• Nearly two-thirds of employees say poor digital organization interferes with their productivity and effectiveness at work
• Ten percent of workers spend four hours a week searching for information
• Ninety-five percent of employees have felt frustrated when searching for documents; 13 percent report being regularly frustrated. 
• Forty-seven percent said the online filing systems they work with are filled with outdated or irrelevant files, making it much more challenging to find the most accurate and up-to-date documents.

A top cloud-based document management system eliminates many of these frustrations. You’ll always have the most up-to-date information, which will reduce data and task duplication and provide easier access to documents across multiple platforms.

3. Forty-five percent of small businesses still rely on paper records

According to a survey by Act!, 45 percent of small and midsize businesses (SMBs) still rely on paper records for customer, contact and vendor data — and an astounding 11 percent have no system whatsoever for managing documents. According to Joyfill, 60 percent of service businesses are still paper-based.

Without comprehensive, streamlined digital document processes, companies waste time applying changes to outdated document versions. Fast-moving organizations will struggle to achieve high productivity if they continue relying on paper documents.

It is important to consider the costs of using a paper-based system, such as:

• Storage space requirements, such as filing cabinets.
• Time lost searching for misplaced documents 
• Duplication of efforts due to version control issues
• Compliance risks and potential penalties

4. Eighty percent of organizations say app integration issues hinder digital transformation

While you might think we have moved beyond this, there remains confusion about how cloud-based apps operate, including what they can and can’t do and how to integrate them into daily operations. According to MuleSoft’s recent Benchmark report, 80 percent of organizations say app integration issues hinder digital transformation efforts such as cloud migrations, and that figure rises to 90 percent for companies that are behind on their digital transformation processes.

When there’s a lack of clarity about how cloud-based apps function, business leaders might be less likely to move to cloud-based document management systems because of compatibility fears.

To overcome document management system integration challenges, successful organizations follow this approach:

Phase 1: Assessment and Planning (Weeks 1-2)

• Audit existing systems and identify integration points
• Map document workflows and user requirements
• Select a DMS with robust API capabilities

Phase 2: Pilot Implementation (Weeks 3-6)

• Deploy system in one department or team
• Test integrations with critical business applications
• Gather user feedback and identify optimization opportunities

Phase 3: Full Deployment (Weeks 7-12)

• Roll out system organization-wide
• Implement automated workflows and approval processes
• Establish ongoing monitoring and support procedures

5. Market growth reflects increasing recognition of DMS value

Many chief information officers (CIOs) see the value of document management systems. In fact, in a Tata survey, 59 percent of CIOs cited cloud technologies as essential for innovation.

This figure aligns with the anticipated growth of the document management market. According to Fortune Business Insights, the global document management system market was valued at $7.16 billion in 2024 and is projected to grow to $24.34 billion by 2032, which is a compound annual growth rate of 16.6 percent.

The rapid market growth is largely driven by advances in artificial intelligence and automation capabilities. Modern document management systems now offer:

• Intelligent document classification using machine learning algorithms
• Automated data extraction from unstructured documents
• Natural language processing for enhanced search capabilities
• Predictive analytics for workflow optimization

According to a McKinsey survey, 78% of organizations use AI in at least one business function in 2024, with document management being a primary use case due to its immediate ROI potential.

6. Cybersecurity investment priorities include document security

Organizations are spending more to keep their information away from hackers and other cybercriminals. A survey by Infosecurity Europe found that 69 percent of IT decision-makers expect to increase their cybersecurity budget year over year, with cloud security being one of the top priorities. As more companies realize the risk to their document database, they’ll do what’s necessary to secure their confidential information.

Business owners should seek advice from security experts to understand the risks of cloud-based document management systems and keep their companies’ and clients’ information safe.

When evaluating document management systems, prioritize these security capabilities:

• End-to-end encryption for data in transit and at rest
• Multi-factor authentication to prevent unauthorized access
• Role-based access controls with granular permission settings
• Audit trails that track all document interactions
• Automated backup and disaster recovery procedures
• Compliance support for industry regulations (GDPR, HIPAA, etc.)

7. Electronic signatures improve document turnaround by 28 percent

Taking the pen and paper out of the signing process can significantly reduce document turnaround time, thus improving close rates by more than 28 percent, according to PandaDoc. A faster turnaround means your team can close more deals.

Automate the signing process by allowing clients or prospects to sign digitally. Make it interactive; let them choose a color and font style to add a personal touch. Without extra steps, like printing and scanning, document recipients can sign contracts more efficiently.

What is document management?

Document management is a system or process designed to capture, track and store electronic documents. A company may need to manage many documents, including PDFs, word processing files and digital images. Many organizations use document scanners to digitize documents, such as contracts, for central access and easy viewing.

Your document management software should be intuitive, budget-friendly, secure and collaborative. To help businesses find the right solution, we reviewed the best document management software solutions and evaluated them for ease of use, scalability and security.

Common document management implementation pitfalls to avoid

Based on analysis of failed document management implementations, these are the most critical mistakes to avoid:

1. Insufficient user training

• Problem: Even the most sophisticated system fails if users don’t adopt it properly. 
• Solution: Allocate 20-30 percent of your implementation budget to comprehensive training and change management activities.

2. Replicating paper-based processes digitally

• Problem: Organizations often digitize existing inefficient workflows instead of optimizing them. 
• Solution: Use implementation as an opportunity to streamline and eliminate unnecessary steps.

3. Inadequate integration planning

• Problem: Poor integration with existing systems creates data silos and user frustration. 
• Solution: Prioritize systems with robust APIs and plan integration architecture before getting started.

4. Underestimating data migration complexity

• Problem: Legacy data migration often takes two to three times longer than anticipated. 
• Solution: Begin data cleanup and standardization three to six months before system deployment.

Top Document Management Software Solutions

Here’s an overview of some of our top picks for document management systems:

Revver

Although Revver is built for scale, with up to 20TB of storage, its user-friendly desktop and mobile interfaces make it an excellent choice for businesses of all sizes. The platform’s setup makes it easy to get the information you need quickly. You can create custom to-do lists and set up your dashboard to access recent items and your most important documents. Our review of Revver explains how workflow automation is a vital part of this platform and highlights its impressive integrations with OneDrive and Google Drive.

M-Files

M-Files has invested heavily in its backend, allowing users to quickly access the information they need and create time-saving no-code automation shortcuts to improve productivity. The company claims a 250 percent return on investment for its customers, and after reviewing the platform, we can see how. M-Files stands out for its ability to simplify data- and document-related teamwork and collaboration with clients and colleagues. Check out our review of M-Files to learn about its familiar File Explorer-type interface, which makes the platform quick and simple to learn.

FileHold Express

FileHold Express is flexible and customizable on all levels. You can build company-specific data and document management workflows and choose from cloud-based and on-premises versions. The company has thoughtfully considered various use cases across different sizes and types of businesses, and this attention is reflected in the range of service plans, add-ons and price tiers. We appreciate the platform’s expansive and clearly written knowledge base, which will help users get more from FileHold Express. Our FileHold Express review explains more about this platform’s features, including optical character recognition, indexing, electronic forms and advanced search.

DocuWare

DocuWare is a highly capable document management platform with impressive functionality, thanks to the 500-plus integrations in its marketplace, including Sage, QuickBooks, Microsoft Dynamics, SAP and Oracle. Its core integration with Outlook for archiving emails is helpful, as is the quick access it can provide through its customer relationship management and enterprise resource planning apps. Our review of DocuWare explains how this platform takes security very seriously with AES encryption and triple-data mirroring. These features are crucial for organizations that handle sensitive data.

DocuPhase

DocuPhase features an impressive set of productivity tools, including preset tags for inbound files and optical character recognition. This function eliminates the need to manually enter data into the platform. Setting up custom automations like file routing is easy, as is creating electronic web forms. These features allow team members to stay updated on various projects and workflows. Our DocuPhase review explains how the platform’s flexible pricing allows companies to tailor the service to their individual needs.

Calculating document management ROI

To justify the investment in a document management system, use this framework to calculate potential returns:

Direct cost savings

• Storage costs: Calculate current physical storage expenses vs. digital storage fees
• Printing and paper: Estimate annual consumption reduction (typically a 40-60 percent decrease)
• Personnel time: Quantify hours saved on document retrieval and processing

Indirect benefits

• Improved decision-making through faster access to information
• Enhanced customer service via reduced response times
• Better compliance reducing the risk of penalties and legal issues
• Increased business agility, enabling faster response to market opportunities

Sample ROI calculation

For a 100-employee organization:

• Current document handling costs: $8,500/month
• DMS implementation and ongoing costs: $3,200/month
• Net monthly savings: $5,300
• Annual ROI: 198 percent
• Payback period: 6 months

These figures are based on industry averages and should be adjusted for your specific situation.

Kimberlee Leonard contributed to this article.