Document management system (DMS)

There are several important aspects to consider when selecting a document management system. Our consultants will support you with these issues, and you make the decisions:

• Clarify requirements and goals: Identify your organization's specific requirements and goals for your DMS, such as improving efficiency, complying with regulations or reducing costs. These should be reviewed regularly to ensure that the current solution continues to meet your needs.
• User-friendliness: The system should be easy and intuitive to use to ensure acceptance by employees. Interfaces should also be easy to customize and configure and not just fit one use case.
• Data security and compliance: As digitalization increases, so does the risk of cyberattacks. When selecting your DMS tool, you should therefore ensure that you implement strict access controls and encryption to protect sensitive information. Ensure that the DMS complies with legal and regulatory requirements, such as the GDPR.
• Integration: The DMS should integrate seamlessly into your existing IT infrastructure, including ERP, CRM systems and email clients. In addition, the migration of existing documents and data to the new system should be carefully planned.
• Workflow management: Use workflows and process automation to optimize routine tasks. Ensure that your DMS is flexible enough to be adapted to your company's specific business processes.

The aspects can vary from company to company and have a different weighting. Think carefully about this in advance. The definition of objectives is one of the most important and fundamental things in a project!

Basically, all companies (whether SMEs, enterprises or corporations) can benefit from a DMS system. The background to this is that every company processes a wide variety of documents and manages them through the company using processes. Accordingly, the introduction of a DMS can have extremely positive effects on the productivity and efficiency of a company.

Traditionally, quotations, invoices and contracts are processed in companies and archived for a certain period of time in accordance with legal and internal requirements. DMS systems also provide valuable support in other areas, often in close connection with a company's core processes. Here are a few examples:

• Legal files at law firms and legal departments of corporate groups
• Credit files with banks
• Patient records in the healthcare sector
• Project files in industry and manufacturing
• Personnel files in HR departments

Using the example of credit files at banks:
A credit file plays a value-adding role in the credit management of banks, as it bundles all relevant information about a borrower. For example, submitted proof of income, credit reports, assets and liabilities are used to assess the borrower's creditworthiness. On this basis, the credit risk can be accurately assessed and a well-founded credit decision made. In addition, the credit file serves as a comprehensive archive for all relevant processes and decisions in connection with the loan. Historical data enables the bank to improve future credit decisions and optimize the quality of the credit portfolio. Furthermore, the file serves as a central source of information for all decisions in connection with the loan - including renegotiations and the granting of follow-up financing. Last but not least, the credit file can also be used to prove that proper credit advice and risk assessment has been carried out and is therefore an essential building block for compliance in banks. Overall, the credit file is therefore an indispensable tool for banks, as it significantly supports the core business and makes a decisive contribution to minimizing risk and increasing earnings.

The example of the credit file and the necessary verification function also shows that the use of file servers or Microsoft SharePoint cannot replace a DMS, as these systems have a different focus.

Before implementing an appropriate document management system with various files in your company, you should think about your specific requirements and coordinate with other departments. This way, the best possible DMS can be designed and implemented for you.

There are various options for operating a document management system. The decision is often based on the company's IT strategy, the areas of application and the possible deployment models.

• On-premises DMS: The DMS system is installed and operated directly on your servers and in your IT infrastructure. These systems offer full control over your data and allow you to adapt them to your specific business requirements. In most cases, it doesn't matter whether you operate your own traditional data center or use a private cloud.
• Cloud-based DMS: The DMS system is hosted in the cloud as Software-as-a-Service (SaaS). These systems allow you to access your documents from anywhere without every user needing access to your local infrastructure. Scalability and updates are guaranteed by the DMS operator.
• Hybrid DMS: This refers to a combination of on-premises and cloud-based systems. It enables the use of some components within your infrastructure and some components in the cloud. An example could be the connection to an on-premise ERP system, for which an on-premise ERP-DMS connector is also used. However, the data is stored in a cloud-based DMS.

These are the three most common options that our customers also use for their DMS. Each of these options has its own advantages and disadvantages, and the choice of the right model depends on the specific needs and requirements of the company in question. Talk to us!

A DMS workflow is not a fixed term in the field of document management. However, it is sometimes associated with workflows in DMS systems. Workflows refer to the digital processes within a document management system (DMS) that ensure that documents are systematically routed through various phases of a process. This can include tasks such as approvals, releases, reviews and notifications that are automatically forwarded to those involved in the process.

Each document type (e.g. order, incoming invoice, contract) requires a specific procedure that can be set up and processed accordingly in the system as a DMS workflow. These workflows then define how documents are processed, checked, approved and archived in a company.

Purchase-to-pay process example:
An example of a more complex DMS workflow is dark processing in the purchase-to-pay process. The order confirmation, the invoice and the delivery of goods with delivery bill follow the ordering of goods. These four document types can be processed by the DMS workflow up to automated invoice payment. Here, the DMS decides, based on the available documents and information (such as quantity, price, order number), whether an invoice can be posted automatically or not - without a human check or verification. The workflow includes various verification steps and finally forwards the invoice document to an ERP system for posting before it is archived.

A DMS workflow is therefore a powerful tool that helps companies to optimize their document processes, minimize manual intervention and ensure compliance with business processes.

In the context of a document management system (DMS), a document is any type of (digital) file that contains relevant information and is stored, managed and processed within the system. This can include a variety of file formats, such as text documents, PDFs, spreadsheets, presentations, emails, images or even scanned paper documents.

A document in the DMS typically has metadata such as title, creation date, author and keywords, which help to categorize it and make it easier to find. In addition, each document is integrated into a specific workflow in which it is reviewed, edited, approved and finally archived. Managing these documents in the DMS enables central storage, structured filing, secure access control and complete traceability of all actions performed on the document.