There are several advantages to implementing a document management system in your organization. It may assist in lowering the cost of maintaining content, simplifying document-centric operations more efficiently, and reducing the time required for publishing and managing documents. Still not convinced! Look at these document management statistics to get inspired.
The first DMS was developed in the late 1980s, with the first commercial product released in the early 1990s. Early systems were designed to manage documents, but they also evolved to support document version control, complete security module, and document workflow. The use of metadata became more prevalent to help users find information faster and easier.
The future of document management is not just about the technology that is used to manage it. It is also about how people are using it and what they want out of it. That’s why it is essential for organization to follow the latest trends in DM.
Let’s get started by going over the top document management statistics that make it is essential for businesses.
What are the surprising Document Management Statistics
We have gathered the below list of document management statistics from different well-known sources in order to give you a summary about the importance of DM and its use cases.
1- Market size
The global document management system market size was USD 5.00 billion in 2021 and reached USD 5.55 billion in 2022. The market is anticipated to reach USD 16.42 billion by 2029, exhibiting a CAGR of 16.8% during the forecast period
source: globenewswire.com
Among the top document management statistics is understanding the market size in order to better understand and visualize the future of these solutions.
The need for paperless offices and e-governments have made the adoption of DMS and document collaboration tools a need for all type of organizations. That is why we will continue seeing a big growth in this market.
2- Data volume forecast
The total amount of data created, captured, copied, and consumed globally is forecast to increase rapidly, reaching 64.2 zettabytes in 2020. Over the next five years up to 2025, global data creation is projected to grow to more than 180 zettabytes
source: statista.com
Based on the facts presented above, businesses cannot continue to manage their documents in the traditional manner. They want smart solutions to assist them in conveniently managing and searching for information.
3- Document storage
The most likely company information repositories are email, shared network drives and folders, and information saved locally to desktop or laptop.
source: M-Files
According to an M-Files survey, the majority of respondents still use email as their primary method of document repository. Isn’t that shocking? In addition, just 24% of respondents claimed their organizations use an DM system.
As the saying goes, behind every crisis lies an opportunity. More and more organizations are understanding the necessity of having access to their documents without any restrictions, especially in the aftermath of the COVID19 epidemic.
4- Information silos
52% of organizations have three or more ECM/DM/RM systems and 22% have five
source: aiim.org
or more systems.
Imagine how much time is wasted every day in businesses seeking for information rather than focusing on critical tasks (further information about this in the next point)
The challenge with information silos is that they create barriers between employees, departments, or even teams. This means that people cannot communicate effectively with one another because they don’t know what the other team is working on. It also means that there is a lot of wasted effort because nobody knows what the other person has already done.
The dream of having a single repository has failed terribly. Instead of consolidating repositories, solution providers are investing more in integrations and enterprise intelligent search capabilities.
5- High cost searching for information
The knowledge worker spends about 2.5 hours per day, or roughly 30% of the workday, searching for information
source: mckinsey.com
According to Worlddata, the average annual wage for employees in the United States in 2021 is $70,430. So each employee costs the organization over $21.000 per year merely to search for information and that’s add up to $1740 per month.
Investing in a DMS will not only increase employee productivity but will also minimize information search expenses by up to 90%.
6- Missing documents
25% of poorly filed documents will never be located
source: M-Files
Knowledge workers spend on average 50% of their time creating and preparing documents. Without a document management strategy and a reliable system, 25% of these documents will end up being lost.
7- Mobility
8 in 10 participants say they need to access corporate documents on their mobile device
source: aiim.org
Let’s face it: the days of employees dealing with paper documents in their everyday operations are long gone. In today’s digital age, everyone expects to be able to access business-related information whenever they need them.
Cloud document storage has enabled mobile access to documents; however, its security model is not very flexible. Your employees may use DMS to view documents, sign them using e-signature software, and collaborate whenever necessary.
8- Cost of papers
Businesses in the United States waste $8 billion on managing paper document each year, with an average tag of $20 to file a document.
source: FileBank
Dealing with paper documents not only reduces productivity, but it also costs a substantial amount of money each year that may be reduced by going digital.
Imagine how much money is being wasted on papers, ink, printers, storage, and maintenance. This can be highly reduced when a digital transformation strategy is implemented correctly.
9- Going green
Approximately 1 billion trees worth of paper are thrown away every year in the U.S
source: FileBank
In order to save the environment we should stop cutting down trees for purposes such as paper production. Trees are a key component of an ecosystem which helps us in many ways such as absorbing carbon dioxide from the atmosphere which helps in reducing global warming or providing shelter for animals living in forests which help them protect themselves from predators etc.
10- Physical storage high cost
Every four-drawer filling cabinet holds 10k to 12k documents, occupies around nine square feet of floor space, and cost $1500 yearly.
source: Gartner
Paper not only costs money to make, but it also costs companies a lot of money to keep for archiving purposes. Digital file storage has become inexpensive for any size business to purchase.
11- Information breaches
The average per record (per capita) cost of a data breach increased by 10.3 percent from 2020 to 2021
source: IBM
Shocking statistics right?
In a paper-based system, security might be difficult to implement; for example, a confidential paper left out on a desk or mistakenly misplaced can be easily accessed and stolen, providing a security risk.
Document management systems provide high-security modules that allow a document to be seen only by authorized employees, reducing the likelihood of data breaches.
12- Manual data entry high cost
Data entry errors in procurement, supply chain, and other areas cost businesses over $600 billion each year.
source: Data Warehouse Institute
Manual data entry mistakes may be tremendously costly for businesses since they alter the quality of the information captured, and hence decision making is based on erroneous information.
With solutions such as OCR software and intelligent document processing, much of the data input process may be automated utilizing cognitive technologies, which will undoubtedly improve the quality of information acquired.
Conclusion
These statistics show the importance of effective document management in terms of cost savings, productivity, and risk reduction. By implementing a document management program, organizations can significantly improve their efficiency and protect against costly mistakes and legal issues.
