An electronic document management system (EDMS), is software used to manage the creation, control, storage, and distribution of documents. Typically, an EDMS is a centralized system that streamlines document management. Electronic Document Management Systems usually includes an electronic signature function, which gives users the ability to digitally sign/authorize documents replacing manual “wet ink” signatures.
The popularity of this kind of software is representative of the cultural shift away from paper. And it’s developed to help businesses facilitate the ease of and speed in which documents are handled.
Here are 4 reasons businesses switch to an EDMS.
Electronic document management software virtually eliminates the need for companies to spend time and resources on creating, controlling, and storing documents.
On average, using a fax machine takes 8 minutes for every use, and scanning documents requires about 2-3 seconds per page, not including the time it would take to organize the file, store, or shred physical copies of a document. According to Pam Doyle, CIP, companies that use electronic document systems cut down turnaround time by up to 80%. Overall, businesses that use an electronic document software see a 21% increase in daily productivity.
A more efficient workflow increases productivity and therefore increases cost savings. Gartner research shows that on average companies spend around 3% of their annual income on paper, printing, sorting and filing. When businesses reduce their paper use, Capgemini consulting found that those businesses would be up to 50% more profitable and valued up to 19% higher than their peers. Implementing an electronic document management system means that less money needs to be spent on paper, hardware, postage and space.
Electronic document management software eliminates the need to print, copy, or mail documents.
One office employee uses approximately 10,000 sheets of paper per year. On average, every page that’s printed is photocopied 19 times more before it’s eventually thrown out. This means that each document accessed online or handled electronically can eliminate 19 subsequent sheets of paper. When contracts, briefs, and other forms are created electronically, companies significantly reduce their environmental strain and in turn they improve their reputation in the eyes of their customers.
One of the biggest concerns regarding electronic documents and signatures is the security. However, software that enables electronic signatures are legally binding and more secure than hardcopies physically and digitally. Electronic files don’t have the vulnerabilities of paper, meaning they can’t be physically damaged or lost.
Electronic document systems digitally seal files and uses electronic privacy settings to control access. Users can specify who can view and/or edit files. Electronic documents enables visibility through trackable histories unlike physical documents. This means that you can see who, where, and when a file was accessed easily.
By leveraging software, electronic document management can help businesses can realize a multitude of benefits and save money by streamlining businesses process.