An electronic document management system is a computer-based system whereby software tools are used to capture, process, index, store, retrieve, distribute and dispose of the documents. The documents may be in the form of spreadsheets, word processing documents, multimedia files and the like. An electronic document management system includes the capturing of documents through scanning, bar coding and optical character recognition, maintaining workflow management by the control of an orderly flow of documents, and the distribution of documents across individuals and departments.

Many of the processes of document management systems are included in electronic document management software, which also allows documents to be captured and stored in the form of graphical images. The software can be run on a personal computer and networked using the companys existing network. It allows instant access to documents, enhances collaboration with respect to sharing information among departments and offices, and ensures security to files and records.

A user can create a document, attach graphical images and index the document along with the attachment, using the software. Any information on the document can later be accessed simultaneously by all users having a security clearance, irrespective of their geographical location. Subsequent changes and modifications made thereafter are also stored, along with the original document which the other users can view as a complete file. An electronic document management system ensures against misplacement or loss of files due to the provision of an online security system. Also, it makes disaster recovery easy because of the possibility of the external storage of information. In addition to this, the software provides control over the users who can access, view and forward any documents.

An electronic document management system is more cost-efficient than paper-based document management. It saves costs on office space, file cabinets, papers and personnel to maintain the files.

Electronic document management systems can be implemented in organizations where there are large volumes of documents that are difficult to manage and track because of their distant physical locations. It is beneficial to organizations which have to provide instant and multiple access to the information and keep track of all the modifications made by the users to the original documents during its lifecycle. An electronic document management system brings about the centralized management of documents and enables better and faster decisions due to improved workflow management.