How to choose the right digital document management system (DMS)

A DMS immediately cuts overhead costs by eliminating paper documents and the need for physical document storage. It reduces spending on printing supplies and file storage space while minimising the labour spent on filing or retrieving important documents.

Notably, SMEs can lower operational expenses by up to 30% with a DMS. For organisations of all sizes, a DMS can reduce overall document-related spending by approximately 40%.

Digital document management improves data security and document security compared to paper-based filing. Paper documents can be easily lost, stolen, or damaged, while an electronic DMS provides encryption and password-based access controls to protect each sensitive document.

With a DMS, only authorised personnel can open confidential documents, and the system logs every access for oversight with an audit trail. Most DMS platforms also maintain regular backups, preventing data loss from accidents or disasters and giving businesses greater control over document integrity.

Digital document management helps businesses meet legal and regulatory requirements across industries. An advanced DMS automatically enforces document control and retention rules and tracks each access or change with detailed audit trails, supporting a seamless document workflow.

This ensures records remain organised and easily retrievable for audits or inspections, helping companies meet privacy and record-keeping standards in content management.

Digital DMSs streamline teamwork by allowing multiple users to work on the same file in real time, supporting automated workflows. Team members can seamlessly edit, comment, and share documents simultaneously, eliminating confusion caused by emailing multiple versions and ensuring everyone sees the latest revisions.

Additionally, a centralised digital repository with cloud access enables staff to securely retrieve and share files from anywhere, facilitating file sharing with robust collaboration tools. This supports effective collaboration across departments and remote offices. Notably, over half of companies report improved employee collaboration after digitising their document processes.

Companies adopting digital document management report substantial productivity gains. Businesses that use DMS tools experience a 21% productivity increase. Employees lacking an effective system often waste up to 30% of their workday searching for information or handling paper documents. By organising files for quick search, retrieval, and document scanning, a DMS frees this lost time for more valuable work.

Digital document management allows an organisation’s information system to grow with the business. The software accommodates rising numbers of documents and users without performance issues, maintaining efficient access as content volume expands.

This scalability contrasts with paper-based filing, which becomes unmanageable as a company grows. Modern cloud-based DMS platforms, acting as a cloud DMS, also offer virtually unlimited storage capacity and flexible user licensing — letting businesses expand or reduce usage as needed while paying only for what they require.

An SME can scale operations or handle surges in documentation without disrupting workflows or investing heavily in infrastructure.

Ensure your vendor has a reputation for prioritising and implementing effective security measures such as IRAP assessment. Key security features to consider include robust encryption for data at rest and in transit, role-based access controls, multi-factor authentication, and detailed audit trails capturing every document interaction.

Also consider the solution’s compliance features and framework. A compliant DMS enforces retention policies and tracks document lifecycles automatically. It should also provide clear audit logs, ensuring you can demonstrate adherence to regulations during audits.

Ensure your DMS can handle increasing document volumes and evolving organisational needs. Notably, cloud-based options often offer pay-as-you-go structures. Cloud-based DMS vendors allow incremental upgrades that align with evolving budgets and operational needs.

Select a DMS that integrates seamlessly with existing tools and systems. Effective interoperability allows documents to flow among email, CRM, accounting, and other key applications without manual data re-entry. To maintain consistent data across platforms and prevent information silos, a DMS should support standard file formats, APIs, or connectors.

User-friendliness is particularly important for small teams with limited IT support. Staff should be able to quickly store, find, and share documents without frustration. Features like robust search and clear navigation notably increase adoption, ensuring the DMS becomes a productivity tool rather than a burden.

Organisations should balance functionality with affordability. Consider the DMS’s total cost of ownership — licensing, subscriptions, support, and training — relative to short- and long-term value. Also check what other similar organisations report on the solution’s return.

Consider a DMS’s automation capacity. Automating workflows in a DMS speeds up routine document processes and eliminates manual bottlenecks. For organisations with lean teams, such automation frees staff to focus on higher-value tasks, ensures standardised procedures, and replaces slow paper handoffs with reliable digital workflows.

Consider the reputation of a vendor’s support systems, as reported by existing users. Your vendor of choice should provide thorough training and prompt technical assistance to ensure staff can confidently use the system and quickly resolve issues.