A document management software (DMS) is an information & records management tool that allows you to switch from conventional paper-based document processes to digital ones. A document management software provides all the features & functionalities necessary to move document organising, search, editing, sharing & tracking to a more secure, error-free & automated digital platform. There are many types of document management software available to businesses. There are basic DMS that only support document editing, searching & sharing, as well as more comprehensive DMS that also provide features like workflow automation, OCR, automated indexing, access control, versioning, etc. The ideal document management software for your business is the one that satisfies your requirements at a reasonable cost.
Cost! The one factor that has eluded you from investing in many good ventures in the past. Businesses need to ration their expenditure, to ensure their sustainability & profits. And hence businesses spend on a new scanner-copier or a corporate retreat, rather than investing in a document management software. Don’t get us wrong, a new scanner-copier & a corporate retreat are both equally important to an organisation. But so is a tool that helps you digitise & automate all your document processes at one place, saves valuable time & money, and increases efficiency & productivity. But what businesses don’t realise is that a document management software actually helps reduce company expenses. Let’s look at the math.
Let’s say you run a small business venture with 50 employees at its helm, and still use paper for all your documentation needs. How much money are these paper-based document processes costing you? There are two types of costs associated with paper. Direct costs & indirect costs. Direct costs are costs incurred while purchasing paper supplies, stationery, filing cabinets, etc, whereas indirect costs are hidden costs incurred as a result of using paper, like cost of misplacement or damage, cost of delays in information gathering & transfer, cost of errors, cost of resources, etc. Here is a rough estimate of the annual costs associated with paper-based processes, for an organisation with approximately 50 employees:
Direct Costs:
- Paper inventory: $2500
- Stationery: $500
- Filing cabinets: $800
- Scanner-copiers: $1500
Indirect Costs:
- Cost of delays: $3000
- Cost of damages & misplacement: $2000
- Cost of productivity loss: $2000
- Cost of extra human resources: $4000
- Cost of repeat processes: $2500
Most of these costs will vary from business to business, but as a business owner yourself, you know that the actual costs far exceed the ones mentioned above.
So why is document management software a better option? Because the cost of most document management software doesn’t even come close to the money you are spending or losing due to paper. Moreover, document management software helps eliminate all the indirect costs associated with paper. Your documents & information are well-organised & easier to track and search, features like workflow automation, automated indexing, document retention, etc ensure there are no delays in document processes, extra resources to manage & track folders & filing cabinets are no longer a requirement, and audits & compliance tracking are made a lot easier thanks to features like document versioning, document encryption, enhanced security & much more.
That is why investing in a document management software helps you reduce your business expenses. More like saying ‘When wise men spend a dollar, they save two’. And that is why many companies around the world are giving up their binders & filing cabinets for the secure digital platform of a document management software. And so should you. Still think all of this is too good to be true? Take a 30-day free trial of our globally renowned document management software GLOBODOX, and see the difference for yourself. If you are happy, we’ll be glad we could make a difference, and if you aren’t, well it’s free. Click here to know more about GLOBODOX’s features & pricing, or to start your 30-day free trial.
