4 Damaging Consequences Of Poor Document Management
For a long time, document management has had a serious role in managing a business. With the growth of technology over the years, not upgrading the storage and regulation of your documents puts your organization at a huge risk. A document management solution is one such technology that can greatly minimize this possibility, and there’s multiple vendors out there to choose from.
However, if you seem comfortable with holding onto your organization’s physical documents, here’s some reasons why we recommend that you make the switch soon. Paper documents come with numerous risks of their own, here’s just a few of them.
1. Version Errors
One of the best features of a solid DMS is its ability to keep track of multiple versions of documents. Accidentally sending out the older version of a document could qualify as the worst repercussion caused by a silly mistake. And contrary to popular belief, mistakes like these happen all the time.
These disasters have been known to cause economic losses on a large scale. In the case of production companies, sending out an outdated document could lead to economic damages up to $1.3 million… per hour!
2. Security Breaches
Not having your documents safeguarded and well-organized is prone to leading your organization into facing legal trouble and monetary damage. This is the case with firms that are still keen on only storing and regulating their documents physically.
However, even the choice of the DMS they implement has a role to play in caring after their entrusted files. A credible DMS—like ShareDocs Enterpriser—checks all the regulatory bases which ensures that you won’t need to worry about any violations, all while keeping your esteemed documents in safe hands.
3. Paper Costs
It’s extremely likely for people to think that using filing cabinets to store paper documents is cheaper than executing a DMS. Instead, this is actually a wrong idea, and it’s backed by numbers.
A good DMS can cover up the cost of using filing cabinets and binders. Just a single filing cabinet can cost upto $25,000, and can eat up almost $2000 of your budget, just for maintenance.
4. Disaster Damage
One of the biggest mistakes an organization can make is not having backups of documents. In the case of a disaster you could lose many, if not all of your important physical documents. A DMS could highly prevent such a loss by storing scanned virtual copies of all the documents which are prone to physical damage.
Of course, it’s great to have their physical versions in your possession, but these shouldn’t be the only versions of the documents you have. Besides, did you know that most—if not all—DMS vendors offer great, secure storage for your physical documents? Yes, that does include us!
In the end, these are just a few of the multiple reasons why your organization should switch to a DMS from using physical document management. We highly recommend trying out our product, ShareDocs Enterpriser, to see for yourself how effortless it is to make the switch, and how secure it is in comparison to paper-based document management.