Top 6 Document Management Systems for Businesses

How much time and money is your business losing due to inefficient document management practices?

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According to Pericent, Fortune 500 companies collectively lose approximately $12 billion annually due to inefficiencies emanating from inadequate document management systems.

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Moreover, WorkMarket reports that 54% of employees believe they could save up to 240 hours per year by automating document handling processes.

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Traditional paper-based systems are no longer viable due to their inefficiencies and vulnerability to loss or damage. As a result, businesses of all sizes are turning to Document Management Systems (DMS) to streamline their document handling processes.

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This article explores the top 6 Document Management Systems available today and guides you on choosing the right one for your organization.

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What are Document Management Systems?

Document Management Systems are software solutions that organize, store, and manage documents digitally. They replace traditional paper-based and manual document-handling processes, allowing businesses to store all their documents in a centralized, digital repository.

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DMS ensures that documents can be easily retrieved, shared, and managed, enhancing efficiency and productivity in the workplace.

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Benefits of Document Management Systems

DMS offers several benefits that can transform how businesses handle their documents. These include:

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Improved Accessibility and Convenience

DMS stores documents digitally in a centralized repository, allowing authorized users to access them from any location with an internet connection. This is beneficial for remote workers and businesses with multiple locations. It also supports productivity and flexibility.

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For instance, during the COVID-19 pandemic, many companies transitioned to remote work. A reliable DMS made this transition smoother by ensuring employees could continue accessing and collaborating on documents seamlessly.

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Secure Storage and Access Controls

DMS solutions have advanced security features like encryption, multi-factor authentication, and user permissions. These features help protect sensitive information from unauthorized access and potential data breaches.

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A healthcare provider can store patient records in a DMS, ensuring that only authorized personnel have access, thus maintaining confidentiality and complying with HIPAA regulations.

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Compliance with Industry Standards and Regulations

Many industries have strict regulations regarding data handling and document management. A DMS helps businesses comply with these regulations by providing audit trails, document retention schedules, and compliance reporting.

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For instance, financial services firms must adhere to stringent regulatory requirements. A DMS can automatically manage document retention periods and provide audit trails to demonstrate compliance during inspections.

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Reduction in Physical Storage Needs and Associated Costs

Document management solutions help businesses reduce or eliminate the need for costly physical storage space by digitizing documents. This also minimizes the expenses related to document printing, shipping, and manual filing.

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For instance, a law firm can save thousands of dollars annually by converting paper-based case files into digital formats, reducing the need for physical file cabinets and storage rooms.

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Streamlined Workflows and Automation

DMS solutions often include workflow automation features that streamline repetitive tasks like document routing, approval processes, and notifications.

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For example, an HR department can automate the onboarding process for new employees by using a DMS to handle the collection and approval of necessary documents, reducing the time and effort required.

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Improved Teamwork and Project Management

A DMS facilitates better communication and coordination among team members by providing a centralized platform for document sharing and collaboration. This is important for project management and achieving business goals.

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A marketing team can use a DMS to manage campaign materials, share updates, and track progress, ensuring team members are informed and on the same page.

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6 Best Document Management Systems

Choosing the right document management solution can enhance your business operations. Here, we review six of the best DMS solutions available:

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#1 DocuSign: Best for Businesses that Prioritize Secure Electronic Signatures and Need Robust Contract Management

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DocuSign is an electronic signature and digital transaction management platform that helps businesses send, sign, and manage documents securely in the cloud. Its features include:

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Electronic Signatures

DocuSign's main feature allows users to sign documents electronically from any device. These signatures are legally binding and comply with the U.S. ESIGN Act and other international e-signature laws.

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Workflow Automation

The tool automates the entire document lifecycle, from preparing and sending documents to tracking their status and archiving completed agreements. This automation reduces manual tasks and accelerates business processes.

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Integration with Other Tools

It integrates seamlessly with popular business applications like Salesforce, Google Drive, Microsoft Office 365, and more. This integration allows users to manage documents within their existing workflows without switching platforms.

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Templates and Reusable Forms

Users can create templates for frequently used documents, making it easy to generate new agreements with consistent formatting and information.

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Mobile Access

DocuSign offers robust mobile apps for iOS and Android devices, enabling users to sign and manage documents on the go.

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Security and Compliance

DocuSign prioritizes security with features like advanced encryption, multi-factor authentication, and comprehensive audit trails. The platform complies with global standards and regulations, ensuring the highest level of data protection.

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#2 PandaDoc: Best for Sales Teams and Businesses that Create and Manage Proposals and Contracts

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PandaDoc is a versatile document management system known for its features designed to streamline document creation, management, and eSignatures.

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Ideal for sales teams and businesses that frequently deal with proposals, contracts, and other sales documents, PandaDoc offers robust tools that simplify the entire document lifecycle.

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Its features include:

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Document Creation and Templates

PandaDoc provides a user-friendly interface for creating professional-looking documents. It offers a wide range of templates that can be customized to suit specific needs, whether it's a sales proposal, contract agreement, or a marketing brochure.

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This feature helps businesses save time and maintain consistency across their documents.

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eSignatures

It allows users to securely sign documents online, eliminating the need for printing, signing, scanning, and sending back physical copies. This feature speeds up the signing process, reduces turnaround times, and improves overall efficiency.

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Document Analytics

PandaDoc includes powerful analytics tools that provide insights into how recipients interact with documents. Users can track document views, time spent on each section, and the number of times a document is accessed.

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This data helps sales teams gauge client interest and tailor their follow-up strategies accordingly.

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Integration with CRM and Other Tools

PandaDoc integrates with popular CRM systems like Salesforce, HubSpot, and Zoho CRM, ensuring sales teams can create, send, and track documents directly from their CRM platforms. This integration enhances productivity by eliminating the need to switch between different applications.

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Workflow Automation

Automating document workflows reduces manual tasks and improves accuracy. PandaDoc allows users to create automated approval workflows, set up reminders, and trigger actions based on recipient interactions. This ensures that documents move through the approval process swiftly and smoothly.

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Collaboration Tools

Collaboration is made easy with PandaDoc's collaborative commenting and editing features. Team members can leave comments, suggest changes, and collaborate in real time, facilitating faster document revisions and approvals.

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#3 isoTracker: Best for Companies that Require Strong Compliance and Quality Management Features

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isoTracker is a document management system designed to streamline organizational compliance and quality management processes. It offers tools suitable for businesses that want to adhere to industry standards and regulations.

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Its features include:

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Document Control

A centralized repository for all documents with version control and audit trail functionalities ensures that the latest versions are always accessible and traceable.

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Compliance Management

It helps organizations comply with industry standards (ISO, FDA, GDPR, etc.) through automated workflows and built-in compliance checks.

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Quality Management

The tool facilitates quality assurance processes such as corrective actions, non-conformance management, and internal audits to ensure continuous improvement and adherence to quality standards.

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Secure Access

Its role-based access control ensures that sensitive documents are accessible only to authorized personnel, enhancing data security and confidentiality.

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#4 M-Files: Best for Businesses that Need AI-Powered Document Management for Enhanced Search and Organization

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Unlike traditional folder-based systems, M-Files uses a metadata-driven architecture that allows users to tag documents with metadata properties such as keywords, document type, project name, and customer information.

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This innovative approach supports intuitive and powerful searching, making it easier for users to find the documents they need quickly and efficiently.

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Its main features include:

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Intelligent Information Management

M-Files uses artificial intelligence to automatically categorize and tag documents based on their content and context. This feature not only saves time but also ensures consistency in how documents are organized across the organization.

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Version Control and Document History

Users can access previous versions of documents, track changes, and collaborate effectively without the risk of overwriting important information.

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Workflow Automation

Automating business processes is made possible with M-Files' workflow capabilities. Users can define workflows for document approval, review, and distribution, streamlining operations and reducing manual errors.

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Integration with Existing Systems

M-Files integrates smoothly with various enterprise systems such as ERP, CRM, and email platforms. This integration boosts productivity by allowing users to access and manage documents directly from familiar interfaces.

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Security and Compliance

M-Files offers robust access controls, encryption, and audit trails to ensure data integrity and compliance with regulatory requirements such as GDPR and HIPAA.

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#5 DocuWare: Best for Companies that Need Scalable Solutions for Document Storage and Workflow Management

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DocuWare is a versatile document management system known for its robust capabilities in document archiving, workflow automation, and secure cloud-based access. It caters to businesses looking for scalable solutions to streamline document-intensive processes.

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Here are its features:

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Document Archiving

DocuWare excels in organizing and storing documents in a centralized repository, making it easy to access and retrieve documents. It supports various file formats and allows for seamless integration with existing systems.

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Workflow Automation

It enables businesses to define and automate document routing, approvals, and notifications, thereby enhancing operational efficiency and reducing manual errors.

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Cloud-Based Access

Users can access documents anytime, anywhere with DocuWare's cloud-based platform, using any device with an internet connection. This flexibility is beneficial for remote teams and businesses with multiple locations.

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Integration Capabilities

DocuWare integrates smoothly with other business applications and systems such as ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management) software.

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This integration capability enhances data consistency and enables a seamless flow of information across the organization.

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#6 FileHold: Best for Medium to Large Businesses Looking for a Comprehensive and Customizable DMS

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FileHold is a robust document management system designed to streamline document-centric processes and improve organizational efficiency. Tailored for medium to large businesses, FileHold offers comprehensive features that suit diverse document management needs.

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Its features include:

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Document Scanning and Capture

FileHold’s robust scanning capabilities ensure seamless integration of physical documents into the digital workflow, reducing reliance on paper and enhancing accessibility.

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Secure Document Storage

The system uses advanced encryption methods and access controls, ensuring data integrity and confidentiality. This feature is important for businesses handling sensitive information and complying with regulatory requirements.

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Customizable Workflows

FileHold enables organizations to create customizable workflows tailored to specific business processes. From document routing to approval processes, these workflows streamline operations, reduce manual tasks, and improve efficiency.

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Version Control and Audit Trails

Version control features in FileHold track document revisions and changes systematically. Users can access previous versions, ensuring transparency and compliance with document management standards.

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Audit trails provide detailed logs of document access and modifications, enhancing accountability and security.

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Collaboration Tools

Facilitating teamwork and communication, FileHold offers robust collaboration tools. Users can securely share documents, collaborate on projects, and annotate files in real time, fostering productivity and enhancing project management capabilities.

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How to Choose a Document Management Software

The tips below will help you choose the right document management solution that aligns with the needs of your business:

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Assess Your Business Needs

Before you explore the different options available, take the time to assess the specific requirements of your organization. You can do this by:

• Determining the main pain points you hope to address with a DMS. Are you struggling with document retrieval times, version control issues, or regulatory compliance?
• Understanding the volume and nature of documents your business deals with daily. Some industries handle sensitive information requiring stringent security measures, while others prioritize workflow automation and collaboration features.

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Evaluate the Features

Not all DMS platforms are created equal, so you must prioritize features that align with your business goals.

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List the key features you’re looking for in your DMS, like robust search capabilities, version history tracking, integration with other software (like CRM or ERP systems), and secure access controls.

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Also, consider how well the DMS integrates with your existing software ecosystem. Seamless integration reduces workflow disruptions and enhances productivity.

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Consider Usability and User Experience

A user-friendly interface and intuitive design are critical factors in successful DMS adoption. The DMS you choose should be easy for employees to navigate and understand without extensive training. Look for platforms with a clean, organized layout and minimal learning curve.

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Evaluate the vendor’s training and support resources. Comprehensive onboarding programs and readily accessible customer support can expedite deployment and resolve issues promptly.

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Review Security and Compliance Capabilities

Assess the DMS’s security protocols, including encryption standards, access controls, and data backup procedures. Look for certifications like ISO 27001 for reassurance.

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Verify that the DMS complies with relevant industry regulations (e.g., GDPR, HIPAA) and offers features such as audit trails and document retention policies to facilitate compliance audits.

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Analyze Cost and Return on Investment (ROI)

While cost is a significant consideration, focus on the long-term benefits and ROI potential. Compare initial setup costs, licensing fees, and ongoing maintenance expenses against projected savings in time, resources, and potential penalties for non-compliance.

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Consider how the DMS can streamline workflows, reduce document processing times, and improve collaborations. These improvements translate into tangible business outcomes and competitive advantages.

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Tips for Optimal Use of Document Management Systems

Consider these tips to maximize the benefits of your DMS:

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Training and Onboarding

Invest in thorough training sessions for all employees who will use the DMS. Ensure they understand the system's features, and functionalities, and how to navigate through it effectively.

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Schedule periodic training updates and refresher courses to keep employees informed about new features or changes in the DMS. This helps maintain proficiency and encourages ongoing engagement with the system.

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Establish Clear Policies and Procedures

Implement clear guidelines for naming documents and folders within the DMS. Consistent naming conventions make it easier to search for and retrieve documents quickly.

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Also, define and enforce access permissions based on roles and responsibilities within your organization. Ensure sensitive information is accessible only to authorized personnel to maintain confidentiality and compliance.

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Regular Maintenance and Updates

Stay current with software updates and patches that the DMS provider offers. Regular updates often include security enhancements and new features that improve system performance and usability.

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Conduct periodic audits to review the content stored in the DMS. Remove outdated or redundant documents to declutter the system and improve search efficiency.

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Leverage Advanced Features

Explore and use automation features the DMS offers to streamline repetitive tasks like document routing, approval workflows, and notifications. This saves time and reduces manual errors.

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Take advantage of integrations between your DMS and other essential business tools (e.g., CRM, ERP systems) to enhance overall efficiency and data consistency across platforms.

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Wrapping Up

Our review of the top 6 document management systems reveals that each offers unique features designed for different business needs, whether it's electronic signatures, network monitoring, compliance management, or AI-driven information management.

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When choosing a DMS, align the system's capabilities with your business requirements, considering factors like usability, security, integration capabilities, and cost-effectiveness.

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Whether you're a startup founder or a business leader, investing in the right DMS is an investment in the future success and resilience of your organization.

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FAQs

Is Office 365 a document management system?

Office 365 itself isn't a full-fledged document management system since it might not provide the advanced features of a dedicated DMS, like robust workflow automation, document lifecycle management, or specialized document tagging.

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Is Google Drive a document management system?

Google Drive can be considered a basic document management system, but it has limitations compared to more feature-rich DMS solutions. Some features it offers for document management include storage and sharing, collaboration, version control, and basic security.

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However, its limitations as a DMS include limited scalability, simpler workflows, and less granular control.

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Can I use SharePoint as a document management system?

SharePoint can be a very effective DMS with the right setup. This is because of its features which include:

• Centralized storage
• Version control
• Collaboration
• Security
• Workflow automation
• Ability to organize documents with specific templates
• Integration with Microsoft Office

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