While there can be many different flavors of document management systems, the term document management refers to a computerized environment that permits the creation, capture, organization, storage, retrieval, manipulation, and controlled circulation of documents in an electronic format.

In its simplest form, a document management system involves three main elements:
1) Scanning hardware (desktop scanner or multifunctional)
2) Document management software
3) Dedicated server for electronic document storage

The basic steps of document management include:
1) Preparing the document
2) Scanning the document
3) Applying index information
4) Storing the electronic document and data

Once a document is electronic, there are three basic types of document management systems to choose from:

FOLDER / FILENAME BASED ORGANIZATION
Scanned files are stored in a Windows based folder structure by file name.

ARCHIVE MANAGEMENT
Software is used to organize files using “index data” that allows the files to be retrieved using one or more “index values”. Files are typically stored in PDF or TIFF and are not intended to be modified.

WORKFLOW / PROCESS MANAGEMENT
Software is used to organize files in the same way as archive management but it also allows the document to be tracked as it moves through an electronic workflow process. A workflow process is essentially an electronic simulation of a task that a person would normally do manually. In addition, files can be stored in native format allowing collaboration and editing.

While there are many advantages of an electronic document management system, the main benefits include:

• Eliminate file cabinets and paper storage
• Quickly locate files when needed
• Allow multiple users to access the same file
• Version control with preservation of document originals
• Automated backup and disaster recovery
• Eliminate labor intensive duplication procedures
• Preparation for audits and regulatory compliance