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Definition: What is digital document management (DMS)?
Document Management Examples
Basically, there are four different types of DMS. To some extent, the short history of document management becomes apparent through this differentiation. At the same time, the advantages and disadvantages of the four DMS procedures become clear.
The file server as DMS vs. database aided document management systems
The storage of documents in tree structured storage locations, e.g. on file servers, network drives, inboxes and similar, replaces one problem with another: A paper one for a digital one. This means that documents disappear into unclear index structures. And document storage alone requires discipline – from an agreed naming structure for files to the right storage location to tagging, if the latter is possible. As a rule, this type of DMS software proves to be inadequate for daily document management.
Using such systems as a replacement for a document management system is counterproductive. The contents of the documents are often not searchable, Metadata is missing, to say nothing of workflows, versions etc. Only file names and directory paths serve as information carriers.
Monolithic document management systems vs. DMS as a service
Current document management systems work according to the following pattern: A document is compiled, certain document information is selected, a document ID is assigned. The document and the Metadata are stored in a database. The big advantage: Via the document ID, the document remains clearly identifiable, and is not lost in the DMS. The disadvantage: To access the DMS, you need DMS software installed on the local computer.
However, the exception confirms the rule. This means that document management systems exist, that provide the user with a browser based DMS webclient for day to day work. Therefore, installation of software on the local computer is superfluous.
This also applies to a DMS in the Cloud. Therefore, the DMS can be accessed via the browser of your choice: Anytime, anywhere, even via Smartphone/tablet. However, a Cloud-DMS also brings many other advantages: As with so many other software as a service offers (SaaS), the service provider also takes on the maintenance of the Cloud-DMS, and ideally ensures the flawless operation of the document management system; so, e.g. the provider carries out regular, automated backups. Thus, a Cloud document management system also has lower associated IT costs. However, at this point, everything lives and dies by the content-related design of the service agreements. Service lives, number of users, data volume used etc. are amongst the most important factors, that determine the costs for the Cloud-DMS.
According to the DMS system used, electronic document management has various other functions. Important, frequently used DMS functions are: Revision security, versioning, archiving, requirements for privacy protection compliance, workflows, group based authorisations and many more. Especially for distributed organisations, i.e. companies with several locations, a document management system simplifies and accelerates the day to day work tremendously.
What is a document in the context of the DMS?
Ultimately, a document stored in a DMS system, contains more information than purely the document content.
Additional information accompanying the document is described as Metadata. These are also assigned to the document, e.g.
- Project number and nameezeichnung
- Creation date
- Version
- Status
- Cost center
- Checker etc.
These Metadata can either be automatically obtained from the document, or added to the DMS via manual tagging. When carried out consistently and uniformly, this helps make searching for documents quicker. Furthermore, documents of a process can be summarised in so called folders, also called electronic files, without further ado. At this point, it becomes very clear, that a document management system very quickly takes on the status of the Holy Grail of information.
Document management systems and workflows – sit back and let it work
Document transport and the processing of documents in the individual departments, can be carried out completely electronically with a modern DMS. In the course of a workflow, a document management system automatically sends documents to the relevant processors or groups within or outside of the company, using defined parameters (category, project, customer number etc.). What is important at this point: Thereby, it is not the document itself that is sent, but rather the link to the relevant document in the document management system. Notification occurs either in the DMS system itself or by e-mail. This has the advantage that the document remains accessible to all other authorised employees during the whole workflow. This means that copies of documents are as much a thing of the past, as the complexity that arises from it.
A good document management system stands out, by allowing the option of two types of workflows: Ad-hoc workflows for tasks that occur rarely, and more comprehensive, fixed workflows for recurring tasks. The difference between the two: Ad-hoc-workflows can be created and set up quickly if needed, but have no previous fixed process model. Therefore, they are the right tool to solve simple tasks, that only arise in the course of a working day: E.g. You notice for the second time, that invoices from the customer XY are raised during processing. As you use discount revenues and want to avoid reminder fees, you and your work colleagues can easily be informed when the case occurs, via the document management. Read more about more comprehensive workflows under complex workflows in the DMS.
DMS case studies
Document management, as should be clear by now, simplifies and organizes collaboration within the company with the aim of working more transparently and efficiently. A DMS also often forms the basis for further developments in special business processes – be it for workflows in manufacturing and production, staff files in human resources or documents in logistics and transport, etc. The rule of thumb is: document management is a huge help wherever people are working on lots of documents at different locations. But there’s more to it than that. Especially in turbulent times for the economy and society, many uncertainties can be effectively addressed with a DMS. This is one of the main findings of the thought-leadership study “Digital document processes – from a best practice to a business necessity”, conducted by Forrester Consulting on behalf of Adobe. But studies don’t always tell the whole story, so here are two real-life DMS case studies.
How do document management technologies help in insurance management?
How do document management workflows help in manufacturing and production?
The German company Lemken, an internationally active manufacturer of agricultural equipment, is one of the early adopters of document management. Enthusiastic about the concept and the opportunities presented by a paper-free office, the company has been relying on digital business processes since 2007. These processes received a central boost from a DMS and the associated technologies for document classification, workflow management and ultimately archiving as well.
Before the DMS was introduced, finding documents was like looking for a needle in a haystack. At Lemken, it was a relentless hunt for the right information on transactions in countless invoices, receipts, delivery notes and other documents that rained down in torrents every day. This resulted in long delays and processes that dragged on over many days. Today, LEMKEN takes care of these document-intensive processes in under half an hour. How did that happen? The document flow begins with the smart entry of incoming documents and receipts. Regardless of whether the documents are still on paper or already digital, the first step is always to collect “metadata” along with other key figures and keywords. This forms the basis for classification: What a document is – be it an incoming invoice or delivery note, etc. – and whether it corresponds to an order can be determined by the document management system in seconds. The DMS then launches the relevant workflows. For instance, pending invoices can be routed to accounting automatically. Employees only have to inspect the documents in case of discrepancies. No matter what each individual case is like, working with documents has become faster, more transparent and easier to follow than ever before since the document management system was introduced. And this is highly appreciated by all 1600 employees and 760 DMS users at Lemken.
Tasks and deadlines – workflows in the DMS
An easy and very basic workflow, which can be implemented with a document management system, is task and deadline monitoring. This is very easy to do. On arrival in the DMS, a document is sent to a group of processors – and the document has a fixed time “attached”, a “deadline”, by which the task relating to the document must be completed. If no-one takes care of the task by this time, the escalation management will get involved. That means: There will be a reminder about the unresolved situation. If none of the affected employees react to the reference to the DMS workflow, automated notifications could for example be escalated to the team leader.
Exceptionally complex DMS workflows
More extensive workflows can also be implemented using document management, of course. For instance, DMS even enables the use of sophisticated business logic, such as black box processing for automated purchase-to-pay workflows: A product is ordered, followed by a confirmation of the order, an invoice and finally delivery of the product, including a delivery note. These four documents can be used to automate the process with a DMS workflow up to the point when the invoice has been paid. The DMS just needs answers to the following questions:
- Does an order exist for the invoice at hand? This can be easily discovered by matching the order number on the invoice document to the number on the order.
- Did the product arrive at the right place, in the correct quantity, for the specified price and in the desired quality?
A comparison of the available documents provides the answer – without the need for any human interaction. The DMS handles this using a three-way match. It’s easy to see that this workflow consists of numerous factual and technical checks – followed by transfer to an ERP system to book the invoice document and finally archive it.
Document management: Documents and revision security
The described versioning of documents within the DMS system is surely one of the most helpful functions. A question that continually arises in this context, is about the revision security of documents. What does revision security mean? Short answer: You want to ensure that a document is not changed or manipulated, during the lifetime in the document management system – without it being noticeable.
However, how can a document management system ensure the revision security of a document? An example for illustration: Who would feel able to take a document out of a pool of 1000 documents, and say: That is an unchanged document?
To ensure this, a modern DMS has checksums. Such checksums, also called hash values, are calculated from the document content. These hash values are clear. This means: the same document content, the same checksum. And a changed document then inevitably means a different checksum. The DMS system takes on this task in the background and shows the calculated status.
