What is a Document Management System (DMS) and Why Your Business Needs It

Most people have heard of a content management system (CMS) but what about a Document Management System (DMS)?

A DMS service might be less well known today, but watch this space. In the coming years more and more businesses will invest in DMS services. Here’s why. 

What is a Document Management System? 

These days businesses over the world need to store large amounts of data electronically. This is necessary for the company’s operations but also for data protection and adhering to the strict regulations of GDPR and other forms of it. 

To help facilitate this companies use a Document management system (DMS). A DMS will create, store, and track data within a company making it an efficient and secure way to store it. You might think of a DMS as a large electronic filing cabinet. 

What is the Difference between a CMS and a DMS? 

CMS stands for Content Management System. A CMS deals with content that’s already in a digital format. A CMS can efficiently store and edit content, changing large images to small images in bulk, for instance. This is different to the job of a DMS. 

A DMS is designed to transfer data from paper format to digital format. This is then readable by OCR technology and can be stored for easy retrieval. These Revolution Data Systems are important if you still manage paper business documents. 

Key functions of a DMS 

A DMS is primarily built to turn physical documents into digital ones. These documents are then fully searchable and trackable – they are also very secure.

A DMS system cuts down the need to manually scan and upload huge amounts of data. It can work automatically to upload, extract and index data. 

These are the primary key functions of a DMS. Once the data has been scanned and uploaded it needs to be organized for storage. The indexing functions allow you to store data in files according to particular identifiers. Locating and extracting data is then a simple process.  

Types of content stored

So what type of content is stored on a DMS? Is it the standard content you would expect, such as paper documents, or are there other types of data that can be incorporated?

Broadly there are three types of data: scanned data, electronic documents, and active and inactive records. 

Scanned data is the kind of paper data you might expect a DMS to handle. Electronic data is data that’s already in an electronic format but still needs to be effectively stored. Finally, active and inactive records refers to those files you have presently in motion. 

Read also: Record Keeping for Small Business 101: Benefits and How to Do It Right

The advantages 

As the world becomes more digital, there is an increasing need for DMS services for businesses. It’s estimated that by 2025 the DMS industry will have grown by around $5 billion dollars since 2019. That tells you a lot about the value it brings. 

The industries that will benefit most from a DMS service will be healthcare, education, and some financial services. These industries have many important paper documents that need to be digitized and securely stored. They also need fast retrieval.