What Is an Electronic Document Management System (EDMS)?
Managing documents is a crucial aspect of running a business efficiently. As companies transition from paper to digital formats, having a reliable Electronic Document Management System (EDMS) becomes essential.
An EDMS helps manage document storage, retrieval, and sharing and ensures regulatory compliance.
The global Document Management Systems market was valued at $1050.89 million in 2023 and is expected to reach $1290.82 by 2030, demonstrating a compound annual growth rate of 2.98% during the forecast period.
This article will explore features of EDMS that can help your company increase efficiency and data security, as well as keep your documents private to avoid unauthorized access or accidental leaks.
Table of contents
- Document organization and accessibility
- Security
- Document processing
- Disaster recovery and backup
- Regulatory compliance
- Collaboration and access
- Environmental
- Scalability
- Audit readiness
What is an EDMS?
An Electronic Document Management System, or EDMS, is a digital platform to manage, store, share, and organize electronic documents. With it, businesses can also comply with regulations such as the General Data Protection Regulation (GDPR), or industry-specific regulatory bodies such as:
- Healthcare: HIPAA (Health Insurance Portability and Accountability Act) in the U.S. requires protecting patient information.
- Finance: regulations such as SEC Rule 17a-4 and FINRA rules ensure that financial records are stored securely and are accessible for audits.
Additional features of EDMS often include features to help businesses manage their documents easier, such as:
- Version control: Tracks changes to documents, allowing users to access previous versions, see who made updates, and avoid mistakes during editing.
- Access permissions: Restricts who can view, edit, or delete documents based on user roles, ensuring data security.
- Search functionality: Enables quick retrieval of documents using keywords, tags, or metadata.
- Automated workflows: Streamlines document-related tasks (e.g., approvals, reviews) by automatically routing them to the right people or departments.
EDMS vs. cloud storage
EDMS systems and cloud storage share similarities, such as document storage and access, but differ in their scope and features.
While cloud storage primarily focuses on basic file storage and sharing, EDMS systems offer advanced document management functionalities, including version control, automated workflows, and compliance tracking.
Cloud storage can integrate features from EDMS systems, such as object storage, to efficiently manage large volumes of data.
For example, Internxt for business and object storage plans provides a fully encrypted platform that combines object storage for rapid data retrieval with secure file sharing and document management, blending the benefits of both technologies.
So, if you haven’t implemented an EDMS into your company yet, the following benefits will help you understand how an EDMS system can benefit your business, team, and finances.
The benefits of an EDMS system
An EDMS system will offer businesses many advantages in their document management. Here are some features of an EDMS that you can take advantage of to effectively keep your documents secure.
Document organization and accessibility
An EDMS allows for centralized storage of all documents that can be easily organized with tags, metadata, and categories, making storing, retrieving, and managaging documents simple.
Advanced search features enable employees to quickly locate files based on keywords, file types, or content, saving time and reducing frustration.
Although a basic feature, document organization is crucial for businesses and departments to run smoothly. Because 2.5 quintillion bytes of data are created daily, document management is essential for businesses.
Security
EDMS systems should include the most up-to-date and advanced security features File security helps businesses comply with laws and regulations regarding sensitive data and prevents data breaches and other cyberattacks.
An EDMS system should include end-to-end encryption so all files are encrypted on the device before being transmitted over the Internet. Other features include access permissions to ensure only authorized individuals can access sensitive documents, and password-protecting files for further control and security.
Finally, audit trails will help the account manager track and log all interactions with the system, providing a detailed record of who accessed what and when for complete control over the EDMS security.
Document processing
You can reduce your reliance on paper documents and convert files to your preferred format, making them easily accessible, searchable, and editable. Keeping your files in an EDMS gives your business quick access to any document and eliminates the cost, storage space, and potential for data loss of paper documents.
Disaster recovery and backup
Unlike physical files that can be damaged or lost due to natural disasters, an EDMS ensures your documents are backed up regularly. In case of system failure, documents can be recovered quickly, minimizing downtime and ensuring business continuity.
Regulatory compliance
An EDMS helps organizations comply with various regulations by ensuring secure storage, accurate data retention, and easy retrieval of records.
Managers can automatically track who accessed or edited documents and when changes were made, ensuring audit readiness. EDMS also ensures that records are stored for the legally required time frame and can assist in maintaining records for legal or financial audits, reducing the risk of non-compliance penalties.
Collaboration and access
With EDMS, teams can work on documents simultaneously, regardless of location. This is especially beneficial in the age of remote work or businesses with global operations. Multiple users can review, edit, or comment on documents without confusion or the risk of overwriting someone else's work.
Environmental
Businesses can implement EDMS to minimize their environmental footprint and drive the organization’s green initiatives. By reducing the need to cut down trees and print, there’s less waste to manage and more money to be saved.
Scalability
As your organization grows, an EDMS can scale to accommodate more documents, users, and workflows without significant increases in cost or infrastructure. This makes it ideal for growing businesses that need flexibility in their document management processes.
Audit readiness
An EDMS provides a detailed audit trail for every document, including who accessed, modified, or shared it. This level of transparency makes audits easier, as the necessary documentation and proof of compliance are readily available and organized.
EDMS use cases
Anyone can use EDMS; however, it focuses on businesses that deal with vast amounts of paperwork, such as bills, records, taxes, etc., meaning healthcare, finance, law, or account firms can reap the most benefits.
Healthcare
In healthcare, an EDMS helps manage patient records, ensure compliance with HIPAA regulations, and streamline the documentation of medical histories, treatment plans, and billing information.
It improves patient care by providing quick access to medical records and facilitating coordination among healthcare providers.
Finance
Financial institutions use EDMS to manage sensitive documents such as transaction records, compliance reports, and client information. It aids in adhering to regulations like SEC Rule 17a-4 and FINRA rules by ensuring secure storage, easy retrieval, and audit readiness for financial audits and regulatory inspections.
Legal
Law firms and legal departments utilize EDMS to handle case files, legal briefs, contracts, and court documents. The system supports secure document sharing, version control, and collaboration among legal teams, ensuring that records are easily accessible and well-organized.
How to choose an EDMS for your business
Now that we understand the benefits and features of EDMS, you will need to decide which one is best for you. Here are some factors to consider.
Assess business needs
First, determine what your business requires from an EDMS. Consider how many documents you handle regularly and whether industry regulations like HIPAA or GDPR must be met.
Next, evaluate whether employees need remote access and whether the system must support collaborative work among team members. Additionally, check if the EDMS can integrate smoothly with other software, such as CRM or ERP systems.
Security
Ensure your EDMS has the best encryption to protect your data during transmission. The industry standard and most widely used encryption is AES-256. For added security, check for companies that use zero-knowledge encryption; this gives you the encryption keys to your system, so only you and nobody else can access the data.
Always protect your accounts with Two-Factor Authentication for added security to prevent unauthorized access to your accounts.
Scalability
Cloud-based EDMS solutions offer flexibility, allowing for increased document volumes and more users without significant upgrades. A scalable system ensures that your document management remains efficient as your business expands.
Ease of use and user adoption
A user-friendly interface is critical for encouraging employee adoption. The system should have a short learning curve and be easy to use across the organization. Ensure that the provider offers strong customer support and training resources.
Customer support
Customer support can help businesses resolve issues that may happen. Support can also offer training and documentation to ensure your systems run smoothly and help companies increase their reputation and customer satisfaction.
Pricing
Choose a pricing plan that offers all the features you need and check that they are included in the product. Choose a plan that meets your needs but can also adapt to future needs. Take advantage of a free plan to test the EDMS thoroughly if possible.
Conclusion
Adopting an EDMS is a strategic and cost-effective move for any business transitioning from paper to digital document management due to the greater efficiency and high level of data integrity.
As the demand for digital solutions continues to grow, the EDMS market is expanding, reflecting the increasing value of these systems. Selecting the right EDMS involves careful consideration of your business needs, security requirements, scalability, and user experience.
Investing in a suitable EDMS can significantly benefit your organization. It can improve document management processes and support long-term growth for your future.