Electronic Document Management - Why?

Irrespective of a company's size, most businesses have already adopted some sort of an electronic document management system, but they usually do not think of it in those terms. As a result, the system is often incomplete; it may include word processing, spreadsheets and a backup system for storage, but they rely on a number of manual paper document processes, as well. The documents may be distributed in a variety of ways, either by mail, fax, email or courier. The fact is that most companies already have a "hybrid" document management system consisting of paper and electronic documents which can be overcomplicated and include more costly manual processes than necessary. Any excessive expenses relating to documents are typically considered part of "the cost of doing business".

It is significant to note that these electronic systems were chosen because they increase productivity, and subsequently profits. But in this new age of technology, new tools are introduced on an almost monthly basis and many companies find they have acquired a variety of systems which have not integrated very well with one another. Of course, just to remain competitive and keep up with new trends, companies find they must continually research the newly emerging technologies and products, yet this can be overwhelming. So many variables must be considered, and often times executives may not be exactly sure how a new technology would be an advantage. It is at this point that some logical thinking might help, and the key question should be asked, "What is our goal?" The answer is usually, "Increase profits and streamline for the long-term".

It is essential that the goal is not forgotten when entertaining the thought of implementing new technologies, and it is likewise important to begin thinking in terms of enterprise document management because this title fully describes the concept of what was intended originally when the first computer was purchased. The concept of email, however, did not exist when that computer was initially bought, and as a result, it seems that the business world still forgets to include it today as an actual component of their document management systems. Yet each email message is, in itself, a document. A document is an instrument of communication. This instrument of communication requires a conduit or distribution mechanism, i.e., email system, just like other documents require fax, mail or an email system. Does it not make sense that the entire document creation, distribution and storage process be consolidated and managed simultaneously for maximum streamlining effect?

Because business document management needs have grown due to increased productivity following the advent of the computer, businesses have subsequently become reliant upon the computer. Most mid- and large-scale companies now employ their own IT staff, while the smaller companies outsource for their computer needs. The industry is enormous, and it is incredibly complicated and confusing to most business professionals born before 1970. Consequently, the prospect of analyzing the computer and document-related options for operational streamlining can cause most to suffer paralysis when it comes time to make a choice.

Meanwhile, even when a company is equipped with its own IT department, the staff is already working frantically just to keep up with the accelerating pace of business and the currently existing technology to deliver it. In essence, all businesses must attempt to balance their first line of business with the second and third lines: documents and technology. Upon coming to grips with this reality, three serious questions should be considered:

  1. How much do Lines #2 and 3 cost just to maintain the first line of business?

  2. How much more will be spent as all IT and document management costs rise?

  3. How much more will it cost to increase profits and business with our present system, or with a better system?

"It's not as bad as it seems"
Finding the answers to these questions can be challenging, but the payoff can be tremendous if approached realistically and with the anticipation of instituting a series of simple solutions to streamline business operations. When considering the current "cost of doing business" with a hybrid document management system, it makes sense to investigate what solutions are available and take advantage of any expertise available from consultants who specialize in examining processes and costs relating to documents. Many times, we need only to have our circumstances described in plain English and the various costs broken down into comprehensible categories before we feel comfortable in pursuing solutions. electronic document management consultant can also be helpful in presenting a series of recommendations with cost estimates which are likewise presented in plain English for business professionals rather than computer technology specialists.

"Full Integration can be affordable"
Once again, what would a company's primary objective be in improving their total enterprise document management system? The answer, streamline for the long-term and increase profits. Sight of this goal should never be lost. When huge amounts of money and time have been invested in a hybrid system, it would make sense to consider retaining that initial investment and simply reinvest the dividends. Options may be available to retool an already existing system so that it performs at the highest potential. When possible, it could be suggested: adapt, don't scrap.

This message is especially significant for companies either facing the regulatory compliance issues mandated by the Sarbanes-Oxley Act, or those attempting to manage the mountain of paper documents fundamental to certain industries, such as lending or insurance. These issues frequently appear to be problems relating solely to document storage, but the actual difficulties may arise from an earlier stage in the document lifecycle. An expert in enterprise document management may be able to analyze the current systems and conclude that additional physical or electronic storage is not as necessary as a solution implemented in the creation or distribution stages of a document's life. Thus, while investigating remedies for document management or operational streamlining, it might be that you already have everything you need, but you just haven't discovered the right approach or tool to make it all work at maximum efficiency.

Click here for answers to specific questions you may have regarding an electronic document management system for your company.

Kevin Calhoun is president of Cornerstone Communications http://www.cstoneindy.com a company committed to providing and promoting education resources for corporations seeking longevity. Cornerstone offers technologies and strategies for radically reducing the cost of doing business without suffering the pain of cutbacks and enterprise restructuring.