Futurist Edge

DSS or DMS: which one do I really need?

In a nutshell

Going paperless in a financial advisor's office sounds like a great concept - especially given the mountain of papers you currently deal with. As if physical transaction forms are not enough, you also now store risk profiles, financial goals, advisory correspondence, research material, consolidated portfolio statements of all clients, back office related client queries - the list is endless. In deciding the appropriate technology to help you go paperless, there is one fundamental question you need to address: do you need a document storage system or a document management system.

Storage or management?

To pick an appropriate software, an advisor needs to carefully look through their work and understand their needs. There are two broad categories of software and it is important to understand the difference:

1.Document Storage Systems: DSS applications are a storage solution built to archive your documents for regulatory and record keeping purposes. They are less sophisticated than document management systems and usually offers fewer options for how documents are stored, indexed, and retrieved.

So what would you like out of the software? - Are you only looking to reduce your paper handling and paper storage? Are you only looking to reduce lost documents? Will you use these documents for decision making or you just need to archive these documents? - if archiving documents is your sole objective, then DSS application will work well in your office.

2. Document Management Systems: DMS applications are for day-to-day management and allows advisors to organize all paper and digital files into a central location where everyone in the office has access. Since the application can be used to integrate with other products like CRM software and Outlook, a single document can be filed in more than one way and retrieved.

So ask yourself the question - In addition to managing paper storage and handling, will you be needing constant access to the documents for decision making? Will your staff also need to access the files? Do you want a faster online access to information but worried about document security? Do you need to view how the documents are handled in order to help measure productivity, and identify efficiency? If constant access of documents is a need in your work flow process, then a DMS solution may be the better option rather than DSS.

Keeping it simple

If all the advisor wants to do is save up physical office space, then a storage system software is the way to go. Even simple cloud options like DropBox, Google Drive, OneDrive, iCloud, etc can be used to backup and store your documents. Any cloud storage platform will allow you to create and organize an intricate system of folders to store the documents. However, there are more sophisticated solutions available tailored to the financial advisor's needs.

Key features to look for in DSS applications:

1. Security: The most important advantage of a dedicated DSS application is the security and advisors should look carefully if all of the documents can be securely encrypted. This ensures that no confidential client information is lost or stolen.

2. Index and Search: Advisors have the option to be able to customize how documents are organized with folders and customize index fields. This gives you the ability to search not only file names but also search content across multiple folders. This makes for easier retrieval of documents where advisors are looking to retrieve specific information across multiple client accounts.

3. Integration with other applications: When integrated with other products like Word, Excel, Outlook and CRM software, advisors can directly import files from various software platforms and even manage email documents. Advisors can easily email or fax documents from the application. Some software solutions even offer a secure login that allows clients to easily access documents, or upload their own documents.

4. Ease of use: With additional features, advisors have the option to store files in original formats like Word or Excel or easily convert into a PDF format. Software tools make it easy to keep track of all history surrounding each document such as any changes or additions. Some tools even allow users to annotate documents, add comments and any relevant notes to any document, highlight text or even add video. This gives advisors the ability to not only store the document but also add any pertaining details of a client that makes it easy to recall at a later date.

File cabinets

If an advisor is looking to boost productivity through automation, then creating a digital file cabinet through a document management systems application is a solution.

The first question an advisor should ask is what kind of product are they looking for:

1. Are they looking for an imaging system to convert paper documents to electronic files?

2. Are they looking for a software product to manage documents in electronic format?

3. Are they looking for a product that has both image conversion feature and management of electronic files?

To answer these questions, look at how your documents are created. Physical documents are often not in a standardized, uniform pattern or structure and this affects your digital storage. So you may need an imaging system to convert the paper document to electronic files but if it is in a standardized electronic format, then you may just require a product that just manages electronic documents. Once the need is determined, an advisor can choose the product. In addition to the storage features mentioned above, advisors should also look at these tools in the DMS application.

1. Multi-level security: With this feature, security levels can be assigned to stored documents ensuring that documents are accessed only by the authorized individuals. Depending on their role, employees can be assigned a security level and advisors can easily restrict access of certain key clients information where the employees can access documents from file drawers only that they have access to. It is also easy to monitor who viewed the documents and when.

2. Workflow management: Advisors can easily access, edit, and remove documents. Files can easily be selected and downloaded for offline editing and then re-uploaded. Any changes in the file are easily tracked as the application saves multiple versions of a file. This makes it easy to see the evolution of the document through multiple cycles. Documents can be routed to certain employees for approval with a approve/reject option button and can even create a predefined order for automatic routing of documents allowing for quick approval.

3. Sending files: The application allows advisors to easily send secure email attachments without size limitations.

4. Cloud: Whether it is a storage or a document management application, advisors can choose between PC installation version or the cloud solution depending on their need. While some applications are not cloud based, others do offer a cloud solution as well. This allows advisors to easily access, editing and sharing documents via mobile devices or the tablet.

Is it worth it?

While there are many advantages including speedy access, recovery of documents and saving of space, it does involve a higher level of IT management and a product cost which may be difficult to sustain for some. So a careful evaluation is needed before settling into a product.

Content is created by Wealth Forum and must not be construed as an opinion by DSP Blackrock MF.

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