Advantages and Disadvantages of a Document Management System

In the digital era, more and more organizations are clinging to Document Management Solutions to help mitigate their problems in handling their documents as these solutions are designed to manage, store and distribute business records. Despite its numerous benefits, there are a number of disadvantages to take into consideration before you decide on the best way you’ll manage your records.

For this post, we’ll tackle the advantages and disadvantages of a Document Management System:

What Are The Advantages?

• Creates A Single Source for Everything – With a Document Management in place, all digitized information is stored in a single repository making retrieval a quick process.

• Enhanced Security – Security is one of the main reasons why organization prefers having a document management solution. Through its feature, you are capable of controlling the access of certain users, set security level for documents and attached encrypted codes to track the activity of a certain file. Managed documents are highly traceable and can be tagged to allow automated alerts.

• Cost-Effective Solution – The cost to rent warehouses is rapidly increasing and by having a document management solution, it can help the organization reduce the need for filing cabinets or storage bins thus freeing up more office space and saving cost on property rents.

• Seamless File Sharing – File sharing is one of the key components of a document management system. With such type of access granted, it allows better and efficient collaboration in sharing data from one person to next.

• Improves Employee Productivity – Back then, retrieval of documents from office cabinets or warehouses could take hours or even days thus hampering the overall performance of your employee. But with a document management system in place, retrieval becomes an effortless process as the solution gives outright results within a matter of seconds.

What Are The Disadvantages?

• Dependency On Technology – Digital era means relying heavily on technology. But what if one day, technology becomes a liability? With this in mind, organizations should also consider not having to depend too much on technology in case it becomes a problem in the future.

• Security – With information sharing as one of its features, there’s always a possibility that the information handed might end up in the wrong hands. Other than that, the biggest threat in security is in the internet as business records are the types of information that hackers would love to get a hand on. 

• Equipment Cost – Whenever an organization decided to go paperless, a huge volume of data must be scanned. The hardware needed for this type of scanning service would need a substantial amount of money.

These are the different advantages and disadvantages of having a document management system. Given the different points discussed, it definitely shows that the Pros outweigh the Cons of the solution.

If you would like to know more about our Document Management System, feel free to get in touch with us by clicking here!