Document Management System

The need for DMS

Businesses have started investing in Document Management Solutions to automate their operations says Vishal Tripathi, Principal Research Analyst, Gartner

Voluminous growth in data, compliance and regulatory issues, the need for a faster decision-making process and requirement for a contingency plan for any disaster and security issues, are the factors driving the adoption of document management systems (DMS). Additionally, there is an increase in demand from businesses that aim to cut costs and gain competitive edge through better management and sharing of information and documents.

Other aspects driving DMS marker are automation, virtualization and integration. Also the need to share information and documents with globally dispersed teams and improve collaboration and effectiveness of various organizational functions is fueling the growth globally.

Many PSUs still function as paper-based organizations, which presents DMS providers ample growth opportunities in India. Organizations are fast realizing that efficient management of documents and content is a critical to their business and failure can lead to significant loss of time and money.

The power of document management lies not only in the infrastructure DMS interface data repository (SQL databases) search engine (for instance, Verity, same as on the Web) and its functionality: storage, retrieval, etc. but also in the ability to handle documents created by external applications and to manage information that is captured from paper or other systems scanning records output.

With business expansion and mandatory regulations such as the IT ACT, SEBI’s Clause 49, Basel II and the SOX act etc (where organizations need to ensure that they store and manage data for a specific time period) in place, the requirement of paper-based documents is also increasing. Storing and managing data for specific periods of time has been a challenge for organizations. Enterprises are looking at solutions which would help them to deal with documentation more efficiently, which has made DMS imperative.

Payoffs are immediate

DMS helps to create, name, file, store, retrieve and control the entire process of document management within an organization. It is designed to operate with ease processing large volumes of documents. Common features include an Efficient Document Management System, Automated document

revision control, Centralized document management, Centralized Knowledge Management Repository for storing document related knowledge for future reference and use, etc. Advanced search functionality makes searching for documents very fast. There is increased visibility due to document usage reports for maintaining a record of the document related activities. Having a secure centralized repository of critical documents that can be viewed only by authorized users helps protect privacy and ensure security. Efficient, intuitive and easy to manage Workflow Process with alerts makes DMS an effective solution for organizations where the volume of documents is rapidly increasing and there is the challenge of managing documents.

e-Governance is yet to impact DMS

Due to volume and the multiple areas of applications, DMS has an edge in BFSI vis-à-vis other industries and with more security norms in pipeline, it will see further growth in coming years.

e-Governance projects in India will also fuel the growth of DMS in India as it would help them to function in an efficient manner with advanced file approval, management, tracking and intelligent search system.

All the multinationals are re-looking at their licensing policy for the Indian market. DMS providers are reworking on their pricing and go-to-market strategy as well. Most of the necessary features are included in DMS except for incorporation of Information Rights Management (IRM). IRM means usage rights or restrictions in the form of viewing, editing, printing, redistribution, etc. For example, once a document is downloaded from a DMS, the owner of the document/IT administrator can neither control access to the document, nor can the owner control what the user does with the document. Hence once the document is downloaded, the user is free to edit print, copy and distribute the document at will, which will make it vulnerable. The year 2009 will see seamless integration with other enterprise applications.

Automation to drive demand

With DMS, enterprises are looking at streamlining and simplifying everyday processes such as customer communication, billing, training and records management. Vertical such as telecom, healthcare, manufacturing, government, PSUs, IT/ITES are opting for DMS. Administration and maintenance are however perceived to be the main challenges that lie ahead of companies to manage and maintain DMS.

Technology is maturing and functionality is being demanded by organizations, than decided by vendors, view of what is needed is distorted by each department voicing its opinion, which pushes an organization to adopt piecemeal solutions rather than an enterprise-wide strategy,

Social networking technologies integration is driving it. Competition is intensifying in this space with the introduction of new local and multinational vendors (Oracle with the acquisition of Stellent) increasing focus. Players such as Microsoft (with SharePoint) and Google are also foraying into this space.

Once the statutory requirements are implemented in India, there will be a sudden spur in demand of DMS as compliance requirements will come into the picture as it helps to maintain records and security within an organization In India, the document management and distribution is still ‘out of the radar’ of most CIOs and IT managers. Technology providers should target the C level executive in India not only to talk about functional benefits of DMS but financial as well.

As told to Renuka Vembu