Workplace documentation is always mandatory. Companies create and manage many different business documents, such as proposals, sales decks, onboarding materials, or HR guidelines daily. That forces them to cope with significant challenges regarding storing and sharing files and affects employee productivity. According to Tech Crunchies, ‘document issues account for more than 21% of daily productivity loss’.
The more organizations create and depend on business documents, the more critical for them to implement practices for capturing, distributing, archiving, storing, and managing such information efficiently. While paper documentation leads to greater chances of misplacement or human error and requires additional costs to store and maintain file cabinets, on-premise document software also needs expenditures to support local infrastructure. That makes a cloud document management system (DMS) come in handy.
So what is a cloud-based document management system? How can your business benefit from it? What are the top ways to reduce operational costs with a cloud DMS? Read in the blog post.
A cloud-based DMS is an online tool or service used for facilitating the management and storage of all company’s documents and data from a single point of contact. It means that the particular document management system operates in the cloud, which allows storing, analyzing, cataloging, tracking necessary files and folders, and retrieving them at any time from anywhere.
In a cloud DMS, organizations catalog documents for storage and retrieve them using Metadata or information collected by Optical Character Recognition (OCR). Metadata includes main index fields from the files that the company has defined (for example, Supplier Name or Purchase Order Number). Meanwhile, OCR is the process of reading the document and converting most or all text into searchable information by the software.
Businesses usually customize their cloud-based document management systems. Thus, they provide restricted access through specific user mechanisms and passwords or even add other security measures. Once inside, employees can access and read the documentation and carry out complex automated workflows depending on the content and context of files.
Implementing a cloud DMS for your business can solve numerous work-related complications or drawbacks. Besides, it will require little or even no direct human intervention. With the multiple advantages switching to cloud computing can offer to companies of all sizes, now is the most appropriate time for converting traditional document management systems.
Here we detail some key benefits your organization can get by applying a cloud-based environment to manage its business information:
Cost reduction. Each on-premise infrastructure needs to make significant initial capital investments. Using cloud-based document management systems allows avoiding the upfront expenses associated with equipment purchases or maintenance costs.
Enhanced security. Storing business data on the cloud provides relevant physical, operational, and network elements with some layers of information security methods. The reliability of backup and recovery models enables companies to keep their data always safe.
Convenient file sharing. A cloud-based DMS is famous for its collaborative nature, which allows users around the world to access stored documents. Sharing files with proper permissions to specific users provides better control compared to the traditional file-sharing approaches.
Easy scalability. An increasing number of files will cause proportional growth regarding infrastructure capacity in traditional and electronic on-premise structures. Applying a scalable cloud-based DMS allows expanding or reducing the storage space depending on demand.
Integrated third-party apps. Integrating corporate files with email support, workflow management, and other utility software tools will help conduct much more operations with documents. Also, integrations save time as they can automate routine tasks in the workload.
If the organization still depends on on-premise document management processes, you may spend a fortune on basic operational costs. Even for small businesses, such expenses can reach thousands of dollars. Today, companies in various industries apply cloud-based document management systems to cut down the expenses and improve productivity. Read more about the key advantages of cloud migration.
Here we explain several critical ways how a cloud DMS can help reduce operational costs.
1. Matter-centric data organization. Organizations always create and process different forms of data, including audio and video files, notes, emails, and other documents. Such different data types represent various kinds of content. At the same time, irrespective of the area your company operates in, there is a need to manage and organize all corporate content considering the matter centricity.
A cloud-based document management system enables businesses to create a matter-centric structure and organize the data by matter. That allows saving files and documents regarding specific cases or business deals in a relevant matter record. With a cloud DMS, you can even save, time-stamp, and store emails, phone call notes, research information, and meeting notes in the matter, along with all other data. This approach helps cut down operational costs by saving time to obtain data required for doing business and boost productivity.
2. Reduced security costs. Corporate information often serves as a vulnerable object for damages, frauds, losses, or thefts. Such vulnerabilities provoke companies to strengthen security measures for protecting documents and files from intruders. That may include purchasing and maintaining additional on-premise servers, which also require costs.
Implementing a cloud-based document management system eliminates the need to spend large amounts of money on these security measures. Thanks to digitized documentation, companies can keep all corporate content safe by providing low-cost strategies, such as permission settings, appropriate file sharing, or backup and recovery mechanisms.
3. Quick search and access to required data. A quick search, along with optical character recognition (OCR), are among the key benefits of cloud-based document management systems. That allows companies to be more efficient when searching for the necessary information, even if the data is enormous (for instance, in terabytes), and finding the exact file.
A cloud DMS indexes all corporate data, makes it very easy to find using single words or phrases, and transforms inter-departmental document exchange into an effortless process. Also, the OCR technology enables employees to turn physical documentation into scanned, readable, and indexable files. That provides staff with enough time to focus on their core business duties and eliminates the company’s need to worry about maintaining IT servers and IT teams, purchasing software, and struggling with the related challenges.
4. Efficient use of space. Both paper business documentation and on-premise infrastructure for document management require physical storage space. Thus, companies that deal with multiple documents daily are obliged to acquire larger spaces over time. But implementing a cloud-based document management system needs no physical storage. That eliminates the necessity of having a larger space and, in turn, cuts down operational costs.
5. Reduced equipment costs. Nowadays, different equipment, including filing cabinets or on-premise local infrastructure, are not considered solid investments for companies. The reasons are repairs and maintenance fees and a cloud-based document management system that cuts down the need for most document-related equipment and provides greater efficiency. By reducing costs on purchasing and maintaining such equipment, businesses can even eliminate redundant supply costs.
A cloud-based document management system serves as a tool that can replace manual processes. The ability to digitize and control electronic documents allows eliminating paper storage, streamlining operations, and improving communication. Businesses will benefit from the particular boost in effectiveness by providing resources to revenue-producing tasks instead of clerical ones. That will also help increase client and employee satisfaction.
At the same time, a cloud DMS is crucial for organizations aiming to reduce operational costs. According to Laserfiche, ‘document management software can result in a 40% document-related cost reduction’ and ‘lets companies save as much as $1 to $5 per document’. That can also promote sustainable company growth and incentivize cost-saving human resources decisions, including outsourcing specific processes.
Are you already using a cloud-based document management system? What benefits do you find the most valuable for your business? Or what factors prevent your organization from using a cloud DMS? Share with us in the comments below.
Over the past several years, AgileVision has helped many businesses reduce operational costs with cloud-based document management systems. Are you considering cloud migration or need advice on your existing DMS ?