This document provides an overview of document management software (DMS). It discusses the benefits of DMS, including savings in time and money through features like tracking document access and edits. A DMS can also help organizations comply with regulations through features such as maintaining audit trails. The document covers important considerations for choosing a DMS, like whether it will be cloud-based or on-premises, its capabilities for different industries, and the number of users that need access. It also provides a checklist for comparing DMS vendors and purchasing tips.

1. BUSINESS.COMGUIDETODOCUMENTMANAGEMENTSOFTWARE

2. CONTENTS
OVERVIEW OF DOCUMENT MANAGEMENT SOFTWARE 3
TRENDS 7
CHOOSING A SYSTEM 9
FEATURES 11
CALCULATING COSTS 13
PURCHASING TIPS 14
COMPARISON CHECKLIST 14
GLOSSARY OF TERMS 17

3. 3
WHY
Thanks to advances in technology, we’re entering a
Golden Age in the area of document management.
Document Management Systems, or DMS, have
become affordable for even the smallest entities, and
their capabilities are amazing compared to those of
just a few years ago.
Any organization that requires the structured storage
and retrieval of documents can benefit from investing in
a DMS solution. Those organizations that are required
by law to maintain detailed records of who has access
to what information and when-in fields such as law,
medicine, finance, education, and government-will find
that a quality DMS saves time and money, and reduces
anxiety by ensuring reliability and accountability. A DMS
can result in peace of mind as well as the cost-effective
management of critical documents.
OVERVIEWOFDOCUMENTMANAGEMENTSOFTWARE
“ANY ORGANIZATION THAT REQUIRES THE
STRUCTURED STORAGE AND RETRIEVAL OF
DOCUMENTS CAN BENEFIT FROM INVESTING
IN A DMS SOLUTION.”

4. 4
The main benefits of using a DMS are savings in time
and money. A DMS will allow you to capture information
using scanning and translation software. The system
enables you to store that information in a way that is
compact, accessible, and secure. It will facilitate the
distribution of information in a manner that is convenient
and reliable. Perhaps most important, a DMS provides
tracking for sensitive documents, showing who has
accessed them, when, and any actions that were
performed on the document (for example: changed it,
printed it, downloaded it, etc.).
“PERHAPS MOST IMPORTANT, A DMS PROVIDES
TRACKING FOR SENSITIVE DOCUMENTS,
SHOWING WHO HAS ACCESSED THEM, WHEN,
AND ANY ACTIONS THAT WERE PERFORMED ON
THE DOCUMENT.”

5. 5
HOW
It is the tracking capabilities of document management
systems that give them their greatest value and appeal.
There are many laws that require organizations to provide
an audit trail for sensitive information. These include
HIPAA (health records), Sarbanes-Oxley (financial
records), ISO (government records), and other regulations
concerning privacy and disclosure. A modern DMS
keeps detailed records on document movement and
alterations-protecting organizations from lawsuits, fines,
and penalties while safeguarding confidentiality.
“A MODERN DMS KEEPS DETAILED RECORDS
ON DOCUMENT MOVEMENT AND ALTERATIONS-
PROTECTING ORGANIZATIONS FROM LAWSUITS,
FINES, AND PENALTIES.”

6. 6
WHAT
This guide reviews the latest trends in DMS along with
the basic and advanced features you should expect
from such a system.
After exploring state-of-the-art DMS, you’ll find a
checklist for comparing vendors, and the top tips for
purchasing a DMS.

7. 7
Document management is undergoing a revolution the
likes of which have not been seen since Gutenberg
invented the printing press more than 600 years ago!
The advent of cloud-based computing and cheap,
unlimited storage has transformed the way that
organizations handle complex documentation needs.
Consider these trends in document management
systems:
Cloud-Based Systems. Also known as “software-as-a-
service,” these are document management systems with
a Web interface. With cloud-based DMS, the documents
no longer live in physical premises, but reside in, and are
backed up in, the cloud.
Access from Multiple Devices. Is your DMS tablet-
friendly? Can you store and retrieve documents with a
smartphone? Are you able to log into your DMS from any
airport or hotel with WiFi? These are the kinds of access
features to look for when comparing DMS providers.
Unlimited Storage of Revisions. When you combine the
plummeting costs of data storage with the version-tracking
capabilities of a modern DMS, you can record every
change to a document since the day it was created. Most
systems will allow you to reverse any of those changes and
revert to any previous version of a document.
TRENDS

8. 8
Lifecycle Management. Documents used in law,
medicine, education, real estate, the sciences, and other
high-value fields often require security, verification, and
auditing at the highest levels. Lifecycle management
allows you to track not only all the changes in a
document since it was created, but also every time the
document has been accessed, by whom, and in what
version. Advanced DMS solutions lay a paperless trail
that can be audited as needed or required.
Language Recognition and Translation. Advanced
DMS can read documents in multiple languages and
convert them into such. The number of languages a
system can accommodate is often used to compare
various DMS when purchasing.
Digital Rights Management (DRM). DRM is the budding
science of protecting the digital content of rights
holders. It is often applied to DVDs and other forms of
entertainment media to reduce unlawful duplication.
But DRM is much more than copy protection. It is used
to control and track access to documents, and can be
used to license content to others and even collect fees.
Electronic Publishing. DMS isn’t just about storing
and protecting documents. With Web-based front ends,
it’s also the software used to search for and retrieve
documents. Today, DMS can automate the publication of
data to a website, into ebooks or other formats, and into
the marketplace-pushing documents into retail outlets.
There has never been a better time to purchase DMS
software or services. You’ll seldom be asked any longer
what operating system you use. With modern DMS, you
can access your documents anytime, from anywhere,
using your favorite device. Your data is more secure
now and better backed up than it has ever been. And
because DMS are priced in part by storage capacity,
they’re getting less expensive all the time as the cost of
storage continues to drop.
“ADVANCED DMS CAN READ DOCUMENTS
IN MULTIPLE LANGUAGES AND CONVERT THEM
INTO SUCH.”

9. 9
On-premises, in the cloud, or both?
If you have to maintain your DMS on-premises, you
will need both software and one or more file servers.
Maintaining these servers and keeping the software
up-to-date is usually your responsibility. If you’re not
required by law to keep your DMS on-premises, you may
find it more convenient and even more secure to use a
Web-based (or “cloud-based”) DMS. A DMS in the cloud
can be even more secure than a standalone system
because access is easily monitored, you can force
actions such as changing passwords, and you can tap
into a nearly unlimited amount of storage for revisions
and historical backups. Many DMS providers now offer
packages that include both a local file server and a
cloud-based interface, providing the local backups you
require with the convenience of online access.
What industry are you in? Any special rules?
Many sophisticated document management systems
are designed to comply with laws and regulations
concerning privacy and disclosure. Think about real
estate mortgages, for example. During and after the
recession of 2008, many financial institutions paid
out large fines for improperly handling mortgage
documents. Similarly, doctors, hospitals, and other
medical providers are required to follow HIPAA
privacy regulations. If your industry or field requires an
intensive amount of regulation or oversight regarding
document handling, you stand to benefit substantially
by using modern document management services.
When shopping for a DMS, look for providers with
experience in your field and ask for references. Here’s
a good example: a review of accounting DMS that can
handle tax forms.
How many people will be accessing the system?
Unlike most on-premises document management
solutions, online DMS usually charge per user, per
month. If you have a system that requires a large
CHOOSING A SYSTEM
“A DMS IN THE CLOUD CAN BE EVEN MORE SECURE
THAN A STANDALONE SYSTEM.”

10. 10
number of users, you may qualify for multi-user
discount packages. Many companies require different
levels of access for different users. Fortunately, most
online and on-premises DMS now allow for different
user access levels.
How much data do you need to store?
While cloud-based data storage is getting cheaper
all the time, it’s not free. Some businesses will require
enormous amounts of data storage. For example, if you
must retain retail-establishment surveillance video for a
certain period of time, the amount of storage you’ll need
could be enormous. Most DMS providers charge based
on the amount of data you need to store, as well as the
number of users.
“MOST DMS PROVIDERS CHARGE BASED ON THE
AMOUNT OF DATA YOU NEED TO STORE, AS WELL
AS THE NUMBER OF USERS.”

11. 11
Creation Issues. A DMS is usually more than just a filing
system for documents. Most systems allow documents
to be created on the system using a Microsoft Word-style
interface. Some systems include image-manipulating
software, such as Photoshop. Look for a comfortable
user interface with enough flexibility to meet your needs
without having to bring in another application.
Integration Issues. Does your DMS play nicely with
other software? Can it integrate and exchange files
with Microsoft Office? How about Outlook, Entourage,
SharePoint, Salesforce, etc.?
Capture Issues. Capture involves all the ways of
pulling documents into the system. Most systems have
Optical Character Recognition, or OCR, for scanning
documents. More sophisticated systems can also scan
and store images from documents. Some can scan
from multiple languages and alphabets. Others will
translate scanned documents into other languages.
Look for a system that is compatible with your needs.
For example, if your documents are rich with tables and
charts, look for a DMS that can handle these hard-to-
scan document elements.
Conversion Issues. Conversion is the other side of
capture: What formats can scanned documents or stored
documents be converted into? Will the system handle
language translation? Can it output documents in Word,
Text, PDF, HTML, or other formats?
Storage Issues. How much data do you anticipate
having to store? Will that data be stored on-premises,
remotely, or co-located between two or more places?
Can additional storage be purchased as needed, or
do you have to purchase a storage plan? What are the
penalties for exceeding storage limits?
Retrieval Issues. How easy is it to access the DMS?
Can it be done remotely, or must it be done on-
premises? How fast are file upload and download times
when the system is accessed remotely? Can the system
be accessed from a tablet? How about a smartphone?
FEATURES

12. 12
Search Issues. The size of some DMS solutions
can make searching a difficult task. Every system, it
seems, has its own method of search. A robust search
functionality will include being able to search document
descriptions as well as the documents themselves. It will
facilitate searching metadata, will recognize common
misspellings, and will auto-complete search inquiries.
Distribution Issues. Are you able to distribute or
syndicate documents from within the DMS? Some systems
include an email component that allows you to use the
DMS to distribute such items as support materials to a
sales staff, or newsletters to subscribers. Distribution
can even include printing labels and other packaging,
printing, and binding documents; applying metered
postage; and other mailing and shipping options.
Publishing Issues. Can the DMS be used for the
assembly of publications such as directories, catalogs,
archives, and ebooks? Will it publish these creations in a
variety of electronic interchange formats, such as those
used for different e-reading devices? Does the system
have a DRM component that can assign and track
electronic rights, and control access to a document?
Compliance Issues. If the industry you’re in has legal
regulations concerning capturing, storing, distributing,
or allowing access to information, you might need a
system that specifically addresses those particular
regulatory needs. Examples include the securities
industry, which is governed by the Securities and
Exchange Commission, and in particular, the Sarbanes-
Oxley disclosures act. Those in the medical profession
are obligated to follow the privacy protocols known as
HIPAA. Many manufacturers are also obligated by the
International Standards Organization (ISO) to handle
documents in a specified manner. Make sure the DMS
you invest in is capable of handling the documentation
demands of your industry.
Security Issues. Security begins with proper document
storage and access procedures. You might want a DMS,
for example, that forces users to change passwords at
regular intervals. Advanced systems will allow multiple
categories of users with different levels of access and
permissions. Security systems usually include detailed
access logs, showing every time a document was
accessed, by whom, and from where. Tracking systems
that record every single change made to a document are
also part of a thorough security system.
Destruction Issues. How does the system handle
archiving old documents or deleting files? Does it
allow for automatic document destruction based on
date stamps or other criteria? Does the system provide
the kind of destruction certification that will satisfy
legal concerns?

13. 13
For an on-premises DMS solution that charges for a
software package rather than the number of users or
the amount of data stored, expect to pay about:
• Basic Software $60 - $200
• Advanced Software $500 - $1,500
• Custom Software $2,000 and up
For an online DMS (or a hybrid online and on-premises
DMS), expect to pay from $15 to $40 per user, per month,
depending on how many fancy features you require.
Discounts on multi-user licenses are usually available. A
typical five-user license is $1,000 to $5,000 per year.
In addition to per-year fees and per-user fees, many
DMS charge storage fees based on the amount of data
you keep stored on the system. Storage fees can run
from as little as 5 cents per gigabyte per month to as
high as 10 cents per gigabyte per month. The cost
of storage space has declined at a rate of 50% every
couple of years for decades now, so you can expect this
price to continue dropping.
DMS users with stringent compliance requirements,
such as securities firms, medical-records handlers, and
government agencies, may require a custom solution
that is beyond the scope of this guide. Such compliance-
heavy systems can cost tens of thousands of dollars to
install and maintain.
CALCULATING COSTS

14. 14
Look for a specialist first. If you’re in an industry that
has intense documentation regulations, it would be best
to find a provider with experience in that same field. If
there is no DMS specialist for your field, then try to find a
provider with clients in your industry whom you can call
upon for a reference.
Negotiate a multi-user package. If your needs require a
large number of users, investigate multi-user discounts.
For example, if you have 8 people who need to access
the system, it might be cheaper to buy a 10-user
package than pay for just 8.
Avoid long-term contracts. If your DMS is priced mostly
based on the amount of storage space you reserve or
use, then stay away from long-term contracts that don’t
allow you to renegotiate the rate. The cost of file storage
has consistently dropped by 50% every 18 months for
the past several decades. The rate per terabyte you’re
paying for storage should be cut in half every couple of
years. Make sure you don’t get locked into a long-term
contract that doesn’t take this factor into account.
PURCHASING TIPS
“IF YOUR NEEDS REQUIRE A LARGE NUMBER OF
USERS, INVESTIGATE MULTI-USER DISCOUNTS.”

15. 15
This checklist will help you quickly assess
the best vendor for your needs.
Basic Package
Freeware
Shareware
PC, Mac, or Other
Extra Charge for Multiple Users
Amount of File Storage Per User
Remote Access Options
What File Types Can the System Read?
# of Languages Recognized
# of Export Formats
# of Publishing Formats
# of Custom Fields
Capture Methods
Conversion from PDF
Conversion from OCR
Conversion from HTML
Image-capture Capabilities
Automatic Meta data Generation
Integration Options
Integration With Microsoft Office
Email Integration
My Needs Vendor 1 Vendor 2 Vendor 2
DOCUMENT MANAGEMENT SOFTWARE CHECKLIST

16. 16
This checklist will help you quickly assess
the best vendor for your needs.
Integration With Social Media
Integration With Mobile
Image-editing Capabilities
Document Tracking
Central Document Storage
Version Control
Version Comparison
Document Comparison
Editing Tracking
Digital Watermarking
Document Expiration Dates
Auditing
Document Life Cycle
Auto-destruction
Security
Automatic Backup
Encryption
Check-in, Check-out
Notification System
Support Services
Live Online Support?
Live Phone Support?
Video Tutorials?
Free Training Available?
Training Available for a Fee?
My Needs Vendor 1 Vendor 2 Vendor 2

17. 17
Capture: The process of entering existing data into a
DMS (as opposed to creating it inside the DMS). Capture
includes such issues as what languages an OCR will
read; what languages a DMS will translate into; and how
images, tables, and other graphic elements are dealt with.
Digital Rights Management (DRM): The science of
managing the intellectual property rights associated with
documents, images, and other media exchanged digitally.
DRM software can include such features as anti-copy
features, anti-print features, timed access, login-logout
access, encryption, digital watermarking, and other
access and duplication restrictions.
Digital Watermarking: A string of code added as a
marker to a digital file to give it a unique identity. It is used
not only to combat unauthorized duplication or distribution
of documents, but also to track their legitimate migration
over time. Digital watermarks are usually hidden in the
code of a file and difficult to identify by anyone other than
the document’s legitimate owners.
Document Management System (DMS): The term for
a filing system for documentation, usually in the form
of computer files. The DMS may contain capture and
creation features for adding documents to the system, as
well as assembly and distribution features. Most systems
include tracking features as well.
Electronic Document Management (EDM): An earlier
name for a DMS that is still in use today. It usually refers to
an on-premises DMS as opposed to an online DMS.
GLOSSARY OF TERMS

18. 18
HIPAA: The Health Insurance Portability and
Accountability Act of 1996. Among other things, it
specifies the actions medical professionals must take to
safeguard patient privacy. DMS for medical professionals
is basically built around these rules for tracking document
access and revisions.
Metadata: Bibliographical information that travels
along with a document in most document management
systems. Metadata includes such information as
creation date, modification date, author name, document
format, document language, document location, title of
document, subjects, categories, keywords, summary of
document, etc.
Optical Character Recognition (OCR) Software:
Enables scanning a printed document by recognizing the
letter shapes and converting it into text or other formats
that can be manipulated using word processing or
publishing software. OCR software works in conjunction
with a mechanical scanner that parses the document as
the original passes across the bed of the scanner.
Revision Control (also called Versioning): Refers to
the ability to store and restore previous versions of a
document. Some systems will record every change made
to a document; others will record all the changes made
in one editing session, but not each individual change.
Some systems will store these revisions forever, while
others may only show revisions made in the previous year,
for example.
Wiki: A specialized DMS that allows website users to
easily create, collaborate on, and manage documents.
Workflow: Allows for the automation of some aspects
of document management. For example, a set of rules
can be established as to who has access to a document
first, where it is sent when that person is finished with it,
how approvals are handled, how the document will be
released, and how it will be stored. Workflow is usually
integrated with calendar software. The look and feel of
the workflow application is a major distinguishing feature
among different vendors.
“THE LOOK AND FEEL OF THE WORKFLOW
APPLICATION IS A MAJOR DISTINGUISHING FEATURE
AMONG DIFFERENT VENDORS.”