DMS implementation can be smooth sailing with the requisite planning. Although technology implementation is usually a significant burden for organizations, the right road map and understanding of its ROI can drastically streamline the process.
If you have a business that depends on the creation and sharing of numerous documents, then you are already acquainted with the logistical challenges associated with trying to keep those documents stored and organized.
In some cases, the simple act of retrieving those documents can easily become massively confusing, especially if you run a business that is required to keep multiple versions of evolving documents due to regulatory requirements.
One of the most popular solutions to this problem in the modern landscape of networked information centers and Cloud-based computing is the use of a document management system provider like eFileCabinet.
However, many businesses both small and large are wary of adopting these systems, either out of dependence on outdated filing systems or due to an inaccurate assessment of the costs of DMS implementation.
The costs of installing a document management system have been subject to distortion, and in some cases the benefits that these systems can deliver for businesses have been downplayed.
Let’s take a look at what exactly a document management system is, the logistical and financial benefits it can provide for businesses and some of the real costs of implementing a document management system like eFileCabinet.
Document Management Systems and What They Can Do for Your Business
At their core, document management systems do precisely what their name would imply—provide businesses with a networked framework which they can use to keep all of their critical business documents organized and accessible.
A document management system is custom-designed for a business so that all of its documents are in specialized folders which individuals can reach from any part of its computer network.
This may seem like it would put sensitive files at risk; however, document management systems are designed with security features firmly in mind so that only those who need access to certain files can see and edit them.
Additionally, the nature of document management systems means that you can quickly search through the thousands or millions of documents your business might have stored and quickly find whichever document you and your clients need to access.
This can be especially valuable if you operate in a business that must keep a paper trail of document versions for a transparent audit process. Document storage systems such as eFileCabinet will store and lock away older versions of the document to prevent tampering or destruction.
The True Costs of DMS Implementation
What costs can you expect to be associated with implementing a document management system for your business? To answer that question, you should have an understanding of what type of document management system you believe will be best for your business.
There are two approaches to building an infrastructure for your document management system—implementing a cloud-based document management system or building a physical storage solution on the premises of your business.
The price investment tends to be initially lower for a Cloud-based document management system, although there are higher monthly and annual fees. In contrast, an on-site document management system has higher initial investment costs with lower annual maintenance fees, although these fees will not disappear completely.
If you opt for a Cloud-based document management service, you will utilize your document management system’s servers over the internet by essentially renting server space. To cover these costs, you can expect to pay anywhere from $20 to $50 per person per month for your document management service. This price varies based on the level of service you subscribe to.
Installing an on-premise document management service requires a few more steps. You will have to pay a licensing fee for every person who will use the service, which will cost between $350 and $500 per person on average.
You will also need to determine how many servers you will need to install to support the system, and these can cost anywhere from $5,000 to $6,000, depending on how powerful they are. This is yet another reason why a cloud-based solution is best for DMS implementation.
A system this complex will require some maintenance. This is a figure that averages about $40 per year per person, which means that you will be paying significantly less after your initial investment. Once you own your on-premise document management system, it’s yours to use and maintain as you wish.
What Are the Financial Benefits of a Document Management System?
So if these are the real costs of DMS implementation, what are the real benefits?
It can be hard to come up with a concrete percentage regarding the sort of savings you can expect as the numbers vary widely depending on the size and nature of your business, but we can look at a couple of examples.
The Illinois Department of Human Services, one of the largest government agencies in the state, installed a document management system in 2012. They have reported saving millions of pieces of paper per year, and as much as $250,000 per year. M*Modal, the largest clinical transcription service in the US, installed a document management system for their 6,000 employees and netted savings of $65,820 annually.
While these may be large-scale examples, they clearly illustrate the amount of time, money, and resources that businesses can save by implementing an effective document management system. Visit eFileCabinet and click on the link on the right to see a free demo of how document management systems can help your business.