Must-have Features in the Document Management System

Many companies perform better by managing and securing business-critical documents and files. Being able to access information quickly with structured document management is important in any organization.

Document management software is a comprehensive tool for organizing, storing, and collaborating on digital documents, streamlining workflows and improving efficiency.

Document Management System (DMS) offers various benefits such as

• Serves as a central repository for all the documents and files
• Secure confidential business information and documents
• Provides secure storage for documents and files, ensuring protection and compliance
• User can access files and documents anytime and anywhere
• Maintains data integrity and accuracy
• It becomes easy to organize, locate and share the documents
• Costefficient and also saves time
• Increase productivity and efficiency
• Collaboration tools enable seamless teamwork and real-time editing

By defining who can access which kinds of documents, DMS offers better control over document security and access. In simple words, the Document Management System solves three important problems: organization, control, and access.

A document management system creates and manages digital documents and images, consolidating them from multiple sources into a centralized repository for easy access and improved workflow.

There are two types of Document Management systems, Self-hosted DMS, and Cloudhosted DMS. Choosing the best DMS system is a difficult task, as there are many services with various features, but finally, everything comes down to what you need and what service is being provided.

Many document management software solutions offer integrations with other business tools and support mobile apps for on-the-go access. DMS enables to store of data and files which can be accessed anytime using different devices.

Here are some of the common features that Document Management System must have:

Cloud Access

Document Management System is quickly becoming popular, with the help of cloud access employees can access, upload, and download documents anytime and anywhere.

Many document management software solutions also provide mobile apps and web interfaces, allowing convenient access and management of documents across devices.

Proper organization of documents

The organization of documents is one of the important features to look for while choosing a Document Management System. For example, categorization, tagging, and rating can help you find files or documents as soon as possible.

Document management software also allows users to organize and manage files by projects, making it easier to store and retrieve documents related to specific project workflows. Storing documents from multiple sources in a structured way helps streamline project management and ensures efficient access to all project-related files.

Easy to use and attractive User Interface

The document management system should be easy to understand, with an attractive user interface. This is important as people or your employees are going to use it on a daily basis and if DMS is hard on the eyes, no one will use it.

Document Input

DMS must allow input files from various sources such as Email, Scanner, Mobile applications, Manual uploads, etc., and can digitize paper documents and images for electronic management.

After processing, output systems are used to distribute or export electronic documents and images efficiently.

Document Processing

Document Processing involves converting the typed and handwritten document into electronic information using Intelligent Character Recognition (ICR) or Optical Character Recognition (OCR) or using both together, resulting in digital documents that can be easily managed and retrieved.

The system also tracks when each document is created and modified, supporting version control and compliance.

Format support

Document Management System must be able to support more and new file formats.

Document Security

Document Security is a very important part of the DMS system. An ideal DMS system must provide a document encryption and also role-based access. For example, Advanced access rights, Users & roles, Modify ownership, Advanced access rights, etc.

Additionally, advanced document management software ensures data availability by offering features such as backup, replication, and disaster recovery to maintain continuous access and protect against data loss.

Simple and easy to navigate

DMS should be simple and easy to navigate. The user dashboard should include things like Alerts and Notifications, Inbuilt Calendar, Email and SMS, Workflow and Document inbox, etc.

Workflow Automation

This means that the Document Management System must automatically route documents to their destination, with automating workflows reducing manual tasks and increasing efficiency. It should provide automatic and manual workflow, document routing, and the creation of records based on documents.

Storage Capacity

Document Management System should offer good storage capacity, and some document management software even provides unlimited storage for scalability and large-scale collaboration.

Hierarchical storage management can also be offered as it helps to categorize documents, this is similar to assigning priority parameters to each document. This process uses artificial intelligence to transfer data from harddisk to optical drives, and vice versa, it stores only important and relevant data.

Mobile Compatibility

Smartphones and tablets are on the rise. DMS should be compatible with mobile devices so that employees can access documents while working remotely.

Capturing Metadata

It is capturing key data about the document. It is like the heading or a title that provides a short description of the document. A good DMS system should capture the Metadata automatically and store it in its database.

Metadata is typically stored separately from the document content to optimize performance and retrieval. It helps employees to retrieve a document by searching for keywords specified in the metadata.

Document Linking

This allows the user to link documents and arranges them in logical groups. Linking provides the ability to create shortcuts to the documents frequently used.

Information mechanism

It helps to notify other users about any update in the file or folder with the help of direct notification through DMS.

File locking

The file locking system allows the user or owner of the document or file to lock the and no­one else can move, delete or make any changes in the file or document until the owner or user unlocks it.

Online editing

DMS should enable users to edit the documents online, as online editing is a valuable feature of modern document management software, allowing users to work without the need to download the file or document.

Integration

DMS integrates document management directly into other applications or services, and integrations with popular business applications like Salesforce, Microsoft Office, Oracle, Dropbox, and Zapier enhance workflow and productivity.

This allows users to retrieve existing documents directly from the document management system repository, make changes, and save the changed document back to the repository as a new version.

Document Versioning

It allows the user to retrieve the previous version of the document and continue the work from a selected point. It is useful for documents that are to be updated.

Document versioning is supported by advanced information retrieval systems, making it easy to locate and restore previous versions.

Records Management and Retention

Records management and retention are fundamental pillars of any robust document management system. As organizations increasingly rely on electronic documents, the ability to systematically manage, store, and retain records becomes essential for operational efficiency and regulatory compliance.

A scalable document management system should offer comprehensive records management features that go beyond simple document storage. This includes the ability to set and enforce retention policies, automate the lifecycle of documents, and ensure that records are disposed of securely when they are no longer needed.

Many document management systems now provide automated workflows for retention and disposal, helping businesses stay compliant with industry regulations and internal policies.

Key features to look for in records management include detailed document history, version control, and audit trails. These tools allow organizations to track electronic documents throughout their lifecycle, ensuring that every change is recorded and previous versions are easily accessible.

This not only supports compliance but also enhances transparency and accountability within business processes.

Effective records management also means that documents are properly indexed and easily retrievable. Advanced search capabilities and metadata capture make it simple for users to locate the files they need, even as the volume of stored documents grows.

For large companies or organizations with complex information retrieval needs, a scalable document management system can handle high volumes of data without sacrificing performance or security.

Collaboration and workflow management are also integral to modern records management. Many document management systems enable multiple users to assign tasks, track progress, and automate document-centric workflows.

Integration with other business applications – such as content management systems or customer relationship management tools—further streamlines business processes and ensures that information flows seamlessly across the organization.

Security and compliance are non-negotiable when it comes to records management. A good DMS will offer advanced security features like encryption, access controls, and detailed auditing to protect sensitive information and support data governance.

These sophisticated features are especially important for organizations in regulated industries or those handling confidential business data.

Advanced search features

DMS should include some of the advanced search features that make it unique. Such features are

• Autofill search: search queries based on inputted text against a database
• Fulltext search: help users search the document using certain words contained in the document
• Phrase search: it allows user to search for a text in the document

Intelligent content management systems use AI to enhance search capabilities and document organization, making it easier to find and manage information efficiently.

According to some reports, 7.5% of all documents get lost; 3% of the remainder get misfiled. With the use of a document management system, you can avoid these problems and also increase productivity. DMS system also assures that your important documents are kept safe and your organization is prepared for the worst scenario.