Types of Document Management Systems from A to Z. Part 1

Any company sooner or later faces the need for digitalization and workflow automation. A well-built document management system (DMS) not only allows storing an unlimited number of documents on demand but also significantly speeds up work processes in the company and increases overall efficiency.

Choosing the best document management solution is crucial as it ensures ease of use, collaboration, integration, and security.

At this point, the main question is how do you organize a DMS to get the most out of what it has to offer? Now, if you are thinking about integrating it into your day-to-day life, you need to know the basics.

In this blog post, we cover all the necessary information about document system management software, from definition to types and features.

What Is a Document Management System?

An electronic document management system is essentially a software solution designed to store, organize, track, and manage internal documents in an organization. The file types typically supported by EDMS include text, images, spreadsheets, audio, video, and web documents.

The sooner this software is implemented into the workflow, the better, since with time companies become cluttered with tons of paper documents, and it will take a significant amount of time to process it into the DMS.

What is a document management server? To sum it up, EDMS is a tool that acts as a centralized repository of all corporate data.

It can be a standalone system or a part of a bigger corporate content management system, working together with n8n workflow automation, but the purpose for both of them is the same – simplifying the workflow and speeding up business processes.

Types of DMS Software

The most common classification criteria would be the location of the files, and in that regard, the experts describe four types of document management solutions: server-based, cloud-based, web-based, or database systems.

We go further and offer a broader classification, as it is more prominent and includes the above-mentioned types in two large groups: cloud-based and server-based systems.

1. Document Management Server-based

A server-based (also client-based, or on-premise DMS) system is installed on local workstations, connected to a Local Area Network (LAN), meaning you use internal servers and storage to manage documentation.

These systems often integrate seamlessly with many leading document management systems, ensuring a smooth transition from scanning to filing and enhancing overall efficiency and usability.

Pros

• For one, they are highly customizable, and companies can tweak the functions to reflect their particular needs and pains.
• Companies that have a lot of sensitive information usually pick this DMS, as it is the most secure type. An on-premise solution can be used even without the Internet.

Cons

• Server-based DMS is more expensive, mostly due to its customizable nature and individual approach.
• They require constant technical support to control the updates and upgrades, therefore companies with no IT specialists have to constantly outsource this service.

2. Cloud-based Document Management Systems

Cloud-based DMS, as the name implies, are hosted remotely in the cloud, which allows users to get access to the DMS from any device at any time.

The best document management software offers features such as ease of use, collaboration, integration, security, compliance, and automation, enhancing productivity and streamlining workflows.

Companies like Templafy, M-files, DocuWare, and MasterControl provide this service. Today, cloud-based solutions are the most popular choice among enterprises, especially in industries that require a prompt response, like construction. However, it has its own downsides.

Pros

• Easy to install and use. Since cloud-based DMS has to fit the needs of any company, it is extremely intuitive and user-friendly.
• A monthly subscription charge makes it more affordable.
• The company can choose a particular subscription plan to fit their needs based on the number of users, the size of the storage, etc., which makes cloud-based DMS highly scalable.
• The software provider manages the updates and upgrades, as well as customer support.
• Allows flexibility and remote work.

Cons

• Very generic and might not address the needs of a particular company, if added features or customization are needed.
• Users can fall victim to the downtime or side problems that service providers have, resulting in an inability to access documents.
• Cloud-based DMS are less secure compared to on-premise systems.

As for web-based DMS, which was mentioned earlier, they are fairly similar to cloud-based DMS, but are even worse in security-related functions and have a weak customer support system, which makes them less reliable and robust.

But they also are open-source, so if the company has little to no workflow and has no sensitive information, it can use web-based DMS to save money and effort.

Database DMS, like Oracle, MySQL, FileMaker, or InfinityQS, can integrate with a lot of productivity software and provide a well-structured centralized database with all documents, where the data is easily accessible.

Perhaps the most prominent benefits are data interdependence, security, and integrability (meaning it works wonders when several applications need to use the same data). However, these solutions are expensive and require more memory configured.

How to choose a DMS document management system software in this wide array of possibilities where the list of document management systems goes on and on?

We suggest identifying the needs of your company, assessing the current workflow and predicting it for the near future, and then using the table to determine the particular type of DMS.

Criteria	Cloud-based	Server-based	Database	Web-based
Customization	Weak	Strong	Strong	Weak
Fast scalability	Strong	Weak	Weak	Strong
Security	Weak	Strong	Strong	Weak
Cost-efficiency	Strong	Weak	Weak	Strong
Customer support	Strong	Strong	Strong	Weak
Remote work	Strong	Weak	Strong	Strong

If you still have questions or are unsure what type fits your company, you can schedule a consult at ProCoders. We have extensive experience working with all things DMS and can evaluate your business to find the best and most efficient solution possible.

3. Document Imaging System

A document imaging system is a specialized type of document management system designed to convert paper documents into e-documents, facilitating efficient storage, retrieval, and management.

This system employs scanners to capture images of physical documents, which are then stored in a digital repository, making them easily accessible and manageable.

4. Enterprise Content Management System

An enterprise content management (ECM) system is a comprehensive document management solution that enables organizations to manage and integrate all types of content, including documents, images, videos, and audio files.

ECM systems provide a centralized repository for content, allowing for efficient storage, retrieval, and management across the enterprise.

Features of an Electronic Document Management System

A well-designed automated document management system should have certain features and capabilities to improve business operations at an enterprise.

One such feature is optical character recognition (OCR), which plays a crucial role in converting paper documents to electronic formats by automating the extraction of text from scanned images or PDFs.

These features may depend on your requirements or the service provider’s capabilities, but all in all, they are imperative for the software’s quality performance.

1. Document Storage and Organization

The most simple and yet most important feature of the electronic document managing system. Each document should have its own place in the system, even more so, the organizational structure should be intuitive. This is a prerequisite for the longevity of the software, which will save a lot of time on training.

2. Effective Workflow Management

Additionally, effective workflow management is crucial for organizing documents efficiently. It helps streamline tasks, eliminate bottlenecks, and facilitate document routing and approvals, thereby enhancing productivity and collaboration.

3. Navigation and Search

This applies not only to companies that register hundreds of documents per day, but also to small businesses. The search process should be as simple and inclusive as possible, with a broad selection of keywords or tags. If you hire web developers with ProCoders, they will choose the best smart technology for your search function.

4. Security and Permission

Not all documents may be intended to be viewed by all employees of the company. To allow some employees to interact with documents, and bar some from editing or even viewing them, you need a function to set specific permissions.

In the 21st century, the importance of digital security and safety cannot be overestimated. Perfect document management systems has a strong backup feature in case of crashes and failures, as well as robust security features to avoid data theft.

5. Mobile Compatibility

Nothing provides the flexibility that mobile applications do. Enabling compatibility with smartphones and tablets is a sure way to speed up operations at the company.

6. Document History

A feature that allows one to see a document’s edit history and retrieve previous versions is a must. A document and workflow management system should track all changes made to the document as well as who made them so that it’s easier to manage and control the workflow.

Additionally, a workflow management system plays a crucial role in tracking document changes and approvals, ensuring that all steps are streamlined and visible to the relevant participants.

Top 7 Benefits of the Best Document Management System

There are many notable advantages of using document management system software, like:

• Improved collaboration between employees due to the ease of retrieving documents.
• Increased productivity now that more time is going to be spent on innovation and brainstorming.
• Flexibility when it comes to working remotely, which in 2020-2021 gained more traction than ever.

• Storage space for paper documents can add up to a fair amount of money, especially in countries with high rent like the US or the EU. Having an electronic document managing system saves money on document storage while also stopping office absorption.
• The backup and recovery function prevents documents from being lost or torn. Paper documents are also subject to other natural disasters like fire or flood.
• The best document management software offers broad access to documents that now are available in an e-version rather than printed and stored in one room or building.
• Better organization of the documents that result in better categorization. With robust indexing and a well-made searching feature, you can find a document (or even all documents related to the one you need) more easily and quickly.

How to Understand Your Business Needs a Document Management System?

Even for a small enterprise, a document management system is a lifeline, but how can you be 100% sure your company needs a DMS?

The most obvious reason for choosing this software would be a never-ending influx of documents that only gets bigger over time. With DMS, you can be sure they are safe and accessible any time of the day.

Another sign is the inability to process the information quickly and efficiently since you need to draw up correspondence and drawings to attach to each incoming document. In other words, your current workflow system is inefficient and time-consuming.

Choosing a Document Management System

Choosing the right document management system (DMS) is crucial for organizations to manage their documents efficiently. Here are some factors to consider when selecting a DMS:

Factors to Consider

• Document Types and Formats: Consider the types of documents you need to manage, such as Word documents, PDFs, images, and videos. Ensure the document management software supports all necessary formats.
• Storage and Scalability: Assess your current and future storage needs. The DMS should be able to scale with your organization’s growth, accommodating increasing volumes of documents.
• Security and Access Controls: Ensure the document management software provides robust security features, such as encryption, access controls, and audit trails, to protect sensitive information.
• Search and Retrieval: Evaluate the search functionality and retrieval capabilities of the DMS. Advanced search features, such as keyword and metadata search, are essential for quick document access.
• Collaboration and Workflow: Assess the collaboration and workflow tools provided by the DMS. Features like version control, document sharing, and workflow automation can enhance productivity.
• Integration with Other Systems: Consider the integration capabilities of the DMS with other systems and applications, such as CRM and ERP systems, to ensure seamless information flow.
• User Interface and Experience: Ensure the DMS provides an intuitive and user-friendly interface. A well-designed UI can improve user adoption and reduce training time.
• Cost and ROI: Assess the total cost of ownership, including initial setup, subscription fees, and maintenance costs. Consider the potential return on investment, such as time savings and improved efficiency.

Document Management Best Practices

Implementing a document management system requires careful planning and execution. Here are some best practices to consider:

Implementing a Document Management System

First, define clear goals and objectives

Establish clear goals and objectives for the document management system. Determine what you aim to achieve, such as improved efficiency, enhanced security, or better compliance.

Also, assess current document management processes

Evaluate your existing document management processes to identify areas for improvement. Understand the current workflow and document lifecycle.

Don’t forget how important choosing the right technology is

Select a document management system that meets your organization’s needs. Consider factors like document volume, required features, and integration capabilities.

Implement a document strategy

Develop a document strategy that outlines document creation, storage, retrieval, and disposal. Ensure consistency and efficiency in document management.

Next, ensure security and access controls

Implement robust security features, such as encryption, access controls, and audit trails, to protect sensitive information and ensure compliance with data protection regulations.

Of course, provide user training and support

Train employees on how to use the new system effectively. Provide ongoing support to address any issues and ensure successful adoption.

Finally, monitor and evaluate

Continuously monitor and evaluate the document management system to ensure it meets your organization’s needs. Make adjustments as necessary to improve performance and efficiency.

By following these best practices, organizations can successfully implement a document management system that enhances efficiency, security, and collaboration.

Conclusion

A document system management software is an indispensable tool that helps systematize documents and, even more so, extract knowledge from people’s heads and solidify it on electronic media.

Transitioning to the best document management software and automatizing the workflow can save valuable time and resources, ensuring quick and prompt responses to any given situation.

At ProCoders, we have offered document management system solutions to companies for more than 10 years, so if you are looking for a reliable, reputable partner to build Document Management Software with, we are here to help. Schedule a consultation or give us a call, and we’ll make your business successful.