What Is a Digital Document Management System?

A digital document management system (DDMS) is a software solution that is used to collect, organize, store, manage, and track electronic versions of documents and images. Generally, the content  is comprised of a blend of digital assets, along with  images of paper-based materials. Digital document management systems have become a vital tool for organizations, providing a centralized repository that makes large volumes of information readily and securely available to users without requiring users to manually “hunt” through cumbersome physical files.

Organizations often choose digital document management systems to streamline document-handling processes that were previously paper-based methods. Digital document management systems not only facilitate storage, management, and retrieval but also enable the capture and indexing of paper documents. which are then stored in an electronic format. The transition to all digital document management takes  documents that were previously stored on paper, scanned, and enables them to be saved as digital files, such as PDFs.

What Are the Benefits of Using a Digital Document Management System?

• Allows documents to be accessed from anywhere at any time. 
• Automates routine tasks, such as document routing, approval processes, and archiving. 
• Complies with legal and regulatory standards by maintaining detailed records and audit trails. 
• Enhances efficiency by streamlining document retrieval and management processes, saving time, minimizing manual processes, and providing quick and easy storage, retrieval, and sharing of documents. 
• Expedites business continuity and disaster recovery efforts, by enabling digital copies of documents to be stored in a digital document management system rather than through cumbersome and destruction-prone paper documents.
• Improves the organization of documents with indexing and categorization with tagging.
• Leverages access controls to set specific user permissions to control who can access documents and what they can do with them.
• Reduces costs associated with the handling, printing, and physical storage required for paper documents.
• Reduces physical storage space by digitizing documents. 
• Secures document storage with robust security features, including encryption, authentication, access control, and activity logs. 
• Supports collaborative work environments by allowing multiple users to access and edit documents simultaneously. 
• Tracks changes and maintain past versions of documents to provide up-to-date information and access to past activities.

What Is the Difference Between EDMS and DDMS?

Often used interchangeably, electronic document management systems (EDMS) and digital document management systems (DDMS) are not the same. While they both improve organizational efficiency, enhance collaboration, maximize data security, and facilitate regulatory compliance, each provides slightly different document management capabilities and applications. Organizations need to understand the differences between digital document management systems and electronic document management systems to ensure that they choose the solution that best meets their specific requirements. 

EDMS: A Holistic Content Lifecycle Solution 

Electronic document management systems are usually more comprehensive than digital document management systems. These systems are primarily focused on managing the entire lifecycle of documents—from document creation to end of life, which could even result in the document’s archivalor destruction. Electronic document management systems are designed and optimized for digitizing paper documents and all related functions to manage and provide accessibility to them. 

Electronic document management systems have comprehensive management functionality that typically includes integration with other systems and processes, such as enterprise content management (ECM) systems, enterprise resource planning (ERP) systems, customer relationship management (CRM) software, human resources information systems (HRIS), accounting and finance software, content collaboration platforms, and project management tools. 

These integrations streamline workflows by enabling seamless data exchanges across different functions and make electronic document management systems a good choice for organizations that want a holistic approach to document and content management. Electronic document management systems are often used to manage engineering files and technical information, making them the solution of choice for manufacturing, construction, and engineering organizations that handle complex drawings, blueprints, and other technical documents. 

DDMS: Focused on Content Digitization 

Conversely, digital document management systems are more focused on the creation, management, and storage of documents in various digital formats like PDFs, word processing files, and spreadsheets. Digital document management systems offer advanced features for handling digital documents. These capabilities include real-time collaboration tools, cloud-based storage, remote access, and more sophisticated search and retrieval capabilities. Often, digital document management systems are powered by AI and machine learning algorithms. 

Digital document management systems are often used by organizations that require advanced functionality for document handling and collaboration. These systems can be used to automate manual processes, such as routing documents for approval or archiving documents based on data management schedules.

The decision of whether a digital document management system or an electronic document management system is suitable for an organization is important. It should be carefully considered to ensure the solution aligns with the company’s  goals. Generally, an electronic document management system is best for organizations that need to digitize paper records and integrate that process into a broader content management strategy. Conversely, a digital document management system would be optimal for organizations that are focused on optimizing the efficiency and functionality of collaboration and remote access.

How Digital Document Management Works

Following is a summary of how digital document management systems work, along with highlights about core functionality.

Document capture

The first step in using a digital document management system is document capture. This includes importing digital files into the system and scanning physical documents to convert them into a digital format (e.g., PDF or JPG). Paper documents can be digitized using purpose-built scanners or multifunction printers.

Document indexing

Once captured, documents are indexed, which involves tagging documents with metadata. Formats and systems for this should be established to ensure consistency and complete entries for each document, including the document type, author, creation date, and relevant keywords. This makes it fast and easy to locate and retrieve documents.

Storage

Digital documents are stored in a centralized repository that can be located on-premise or in the cloud, depending on the digital document management system and the organization’s requirements. The documents are organized in folders and subfolders to facilitate navigation and accessibility. Again, systems and processes should be put into place to make sure that the folder and file names are consistent and intuitive.

Document retrieval

Search functions help users locate and retrieve documents from the centralized repository. It uses a search function that takes advantage of the metadata, enabling users to find specific documents, even among thousands or millions of files.

Security and access control

All digital document management systems have access control. Access control techniques commonly used with digital document management systems include password protection, encryption, user authentication, and permissions settings. These ensure that only authorized users can access documents and can be used to restrict what individual users can do, such as view, edit, share, print, and download. Additionally, access activity can be logged, creating audit trails that provide a record of who accessed a document, when, and what they did with it.

Collaboration and workflows

A digital document management system facilitates collaboration and workflow management by allowing multiple users to work on the same document simultaneously. It tracks and synchronizes changes in real-time and keeps logs of what has been done to a document. A digital document management system can also automate processes, such as routing documents for approval, sending alerts about outstanding tasks, and archiving documents.

Compliance and auditing

Digital document management systems help organizations meet compliance requirements by providing secure storage and document protection. They also streamline audit preparation by making it easy to find and retrieve specific documents and by maintaining audit trails that record documents’ history and activity.

Implementing Digital Document Management

Implementing a digital document management system should be treated as a strategic process. Careful planning and execution should be taken at each stage. This involves a thorough assessment of organizational and stakeholders’ needs, choosing a system that can meet current and future objectives, and integrating the digital document management system into existing workflows. 

Taking time to implement a digital document management system properly can significantly improve the chances for a successful outcome and allow the organization to realize the efficiency and productivity gains that a digital document management system offers. Here are some key steps for successful implementation of a digital document management system.

Implementing a digital document management system should be treated as a strategic process. Careful planning and execution should be taken at each stage. This involves a thorough assessment of organizational and stakeholders’ needs, choosing a system that can meet current and future objectives, and integrating the digital document management system into existing workflows. 

Taking time to implement a digital document management system properly can significantly improve the chances for a successful outcome and allow the organization to realize the efficiency and productivity gains that a digital document management system offers. . Here are some key steps for successful implementation of a digital document management system.

1. Requirements assessment and planning

• Needs—to establish what features are required for the digital document management system
  • Assess existing processes
  • Identify gaps and deficiencies
  • Understand the types of documents that need to be handled, how they will be used, and who requires access to them, as well as the volume and velocity of document creation
  • Determine what regulations are applicable and how you will address  related compliance requirements  
• Stakeholder involvement—to ensure that the digital document management system fits stakeholders’ business workflows
  • Engage stakeholders from different departments 
  • Collect insights on their document management challenges and expectations
  • Understand how the digital document management system will fit into users’ existing processes
  • Define user types along with their roles and permission levels
• Team—to obtain executive buy-in and confirm who will be involved in the project 
  • Secure an executive sponsor
  • Appoint a project manager
  • Define roles and responsibilities
  • Assign team members
  • Conduct regular status updates, and make necessary adjustments to the project based on company executives’ and stakeholders’ feedback 
• Objectives—what are the expectations for the digital document management system?, such as:
  • Faster document retrieval time
  • Enhanced data security
  • Better compliance practices

2. Selection  

• Research digital document management system options based on the requirements assessment. In particular, evaluate the solutions carefully and their ability to support requirements, such as:
  • Ease of use
  • Scalability
  • Security controls
  • Integration capabilities
  • Vendor reputation 
  • Customer support options
  • Key features:
    • Document capture
    • Indexing
    • Storage
    • Retrieval
    • Collaboration tools
    • Workflow automation
    • Security measures
    • Compliance tools
• Demo and evaluation—try before buying to confirm the digital document management system addresses all of your  requirements, in an effective manner:
  • Request demos 
  • Conduct an evaluation and testing phase with selected solutions 
  • Involve end-users in the evaluation process, if possible

3. Configuration

• Design the system’s architecture
  • Access control requirements
  • Document categorization
  • Workflow automation
• Customization to align the digital document management system with the organization’s processes
  • Modify the user interface
  • Set up specific document workflows
  • Integrate with other applications 
  • Create customized fields and templates  
• Configure business rules to automate workflows and enforce best practices, such as:
  • Automatically route documents for approval
  • Archive or destroy obsolete documents
  • Retain documents that are subject to legal holds, in the event of company litigation 
  • Adjust document retention requirements to align with your company’s retention policies and applicable government and industry regulations 
  • Send alerts and reminders for tasks  

4. Data migration

• Prepare data for migration
  • Clean up redundant or outdated files 
  • Organize documents
• Develop a detailed migration strategy
  • Decide whether to migrate all documents at once or in phases
  • Create a backup plan to protect data during the migration process  
• Import existing documents into the digital document management system 
  • Digitize physical documents 
  • Ensure that all documents are appropriately tagged and indexed  

5. Implementation and integration 

• Install the digital document management system
• Integrate the digital document management system with companion technology, such as CRM, ERP, or HR systems 

6. Training  

• Provide comprehensive training programs to educate users  on how to use the digital document management system, including: 

• Basic operations, such as how to upload and retrieve documents, how to use the search function, and how to leverage workflows
• Department-specific functions
• Security protocols
• Issue resolution
• Accelerate user adoption

• Highlighting the benefits of the digital document management system
• Make support accessible
• Address users’ concerns or difficulties, on an ongoing basis 
• View implementation as an ongoing “program” rather than as a one-time “project” 

7. Security and compliance:

• Implement security measures
  • Access control requirements 
  • User authentication
  • Encryption
  • Secure data backups
• Confirm that security and privacy controls meet the requirements of applicable regulations and standards 

8. Testing and quality assurance 

• Conduct system testing before going live, including testing for:
  • Document retrieval accuracy
  • User access permissions
  • Integration workflows 
• Collect user input on the digital document management system’s 
  • Performance
  • Usability
  • Issues

9. Launch, monitoring, and maintenance

• Go live after testing has been completed and the system is tested in a non-production environment, so that it provides a stable environment for users’ activity 
• Monitor the system closely during the initial stages and address all issues that are raised as quickly as possible
• Provide users with access to ongoing technical support 
• Update the digital document management system regularly 
• Perform maintenance checks to ensure the system continues to meet performance, security, and compliance requirements  

10. Continuous improvement 

• Review the digital document management system’s performance against initial objectives 
• Analyze key areas, such as:
  • User satisfaction
  • Efficiency gains
  • Number of technical issues experienced and vendors’ issue resolution timeframe 
  • Compliance adherence 
• Establish a feedback mechanism to solicit input from users and stakeholders 
• Schedule enhancements to address any features or functions that need to be improved, updated, or added
• Adapt the digital document management system to changing needs

Digital Document Management: A Must-Have for Modern Organizations

Organizations use digital document management systems in nearly every industry. The scale and sophistication of the digital document management systems that are used by today’s organizations vary widely. Even so, the volume of digital files and the need for digital files for modern communications workflows necessitate the use of these systems.

Organizations that embrace and optimize their use of digital document management systems see streamlined processes, can validate compliance with regulatory requirements, and improve overall organizational productivity and efficiency. Collaboration and overall workflows are also significantly enhanced when digital document management systems are embraced and the full extent of their capabilities are leveraged.

Egnyte has experts ready to answer your questions. For more than a decade, Egnyte has helped more than 17,000+ customers with millions of users worldwide.

Last Updated: 19th April, 2024