What do the business processes of any company have in common, regardless of its size or industry? They all involve the daily creation, processing, and storage of important and necessary documents. These may include contracts, invoices, internal reports, presentations, applications, commercial offers, and more. All of these documents follow a certain path – from creation to archival storage or disposal. That’s why proper organization of document management plays a crucial role in streamlining these processes, ensuring information control and confidentiality; protection against malicious or accidental deletion; prevention of unauthorized data access, and so on. The main purpose of a document management system is to ensure the fast and organized movement of documents between employees, departments, or even separate companies.
The following are the key stages of the document management process:
- Creation or Receipt – creating a document within the company or receiving it from external partners, clients, or government authorities.
- Processing – editing, reviewing, signing, and approving the document by the relevant departments.
- Servicing – ensuring compliance with the terms and conditions established in the document during its validity period.
- Archiving – storing the document for a defined period in accordance with internal regulations and legal requirements.
According to Siemens Business Services, the average manager spends 80% of their time working with data. However, how productive that 80% truly is depends on how well document management processes are organized within the company. In today’s business environment, organizations are increasingly moving away from paper documents in favor of electronic document management (EDM) – according to Gartner, 87% of business leaders consider digitalization a company priority. EDM not only reduces printing and storage costs but also ensures convenient data access and minimizes the risk of information loss.
Traditional vs. Electronic Document Management: Differences and Advantages
Electronic document management is a system for creating, processing, storing, and exchanging documents in digital format without the use of paper. EDM can be internal (for document exchange within the company) or external (for interaction with clients, partners, government agencies, etc.). During the digitalization of document management, all processes that were previously performed manually – approval, signing, sending, and archiving – are automated using specialized software, such as the SmartPoint DMS system. This approach significantly speeds up business operations, minimizes the risk of losing important data, and reduces organizational budget pressure by eliminating paper-based processes.
Here’s a clear comparison of how traditional and electronic document management approaches differ:
| Criterion | Paper-Based Document Management | Electronic Document Management |
|---|---|---|
| Processing speed | Low – time is needed for printing, signing, and delivering documents (statistics show that 45% of companies take at least a week to sign one contract) | High – all processes are performed online with instant results |
| Document access | Complicated – physical access to paper copies is required | Convenient – instant search and access from any device (including mobile) |
| Control and transparency | Difficult to track changes and document versions | Easy version control, change history, and access logs |
| Costs | High – paper, printing, courier services, and storage space | Low – no costs for materials, physical delivery, or storage |
| Environmental impact | High consumption of paper and ink. The average office worker uses 10,000 sheets of paper per year, and 53% of all company paper documents are reprinted due to errors or during approval | Environmentally friendly option, reduced use of natural resources, and contribution to an eco-conscious brand |
| Security | Risk of document loss, damage, or theft; risk of human error – for example, accidentally sharing information with unauthorized individuals | Reliable digital protection: encryption, two-factor authentication, access control, role-based models, and more |
Data Security in Electronic Document Management: How It Works
In today’s digital environment, cyber threats are becoming increasingly relevant for business companies. The frequency of such attacks has surged dramatically over the past two years:
“It is known that in 2022, the number of cyberattacks on corporate data increased by 15–20%, and in 2024, this figure grew another 2.5 times. At the same time — paradoxical as it may seem — the number of successful cyberattacks during this period decreased threefold,” said Oksana Riabchun, Business Analyst, SMART business.
One of the main factors behind this success is the digitalization trend among companies. Electronic document management plays a major role here, as it helps protect confidential information using modern technologies. A high level of data security is achieved through various advanced mechanisms, including those used in the SmartPoint DMS electronic document management system.
Data Protection Methods in SmartPoint DMS:
- Access Control: Defining access rights for each user ensures that only authorized individuals can access specific documents. The use of two-factor authentication (2FA) adds an extra layer of protection by requiring login confirmation through an independent channel.
- Data Encryption: Cryptographic encryption methods powered by Microsoft technologies and implemented in the SmartPoint DMS system guarantee data confidentiality, making it inaccessible to unauthorized users.
- Role-Based Access Compliance: Clearly defined user roles and permissions based on job functions minimize the risk of internal threats and unauthorized access to confidential information.
- Audit Logs and Change History: Keeping detailed logs of all user actions in the system allows for tracking and analyzing any suspicious or unauthorized activity, enabling a prompt response to data security incidents.
- Backup and Recovery: Regular backups to the cloud and disaster recovery plans ensure data preservation and business continuity in the event of technical issues or cyberattacks.
- Electronic Digital Signature (EDS or QES): A digital signature ensures the authenticity and integrity of documents by confirming their origin and that no changes have been made after signing. Electronically signed documents using QES are legally recognized by government bodies and courts, holding the same legal force as their paper equivalents.
A Comprehensive Approach to Data Protection: How Microsoft Tools Safeguard Corporate Information
Microsoft-based tools can provide a multi-layered cybersecurity system that covers all stages of the data lifecycle — from creation to storage, processing, and transmission. Thanks to this structure, organizations can be confident in the integrity, availability, and confidentiality of their corporate information. Let’s take a closer look at what these mechanisms include.
Key Tools for Protecting Confidential Data
- Defense-in-depth: This is a multi-layered data security strategy that combines network segmentation, multi-factor authentication, endpoint protection, and cloud service security. A key component in this area is integration with Azure Sentinel — an AI-powered SIEM solution that enables centralized monitoring, analytics, and real-time incident response.
- Data protection in Azure: The Azure cloud platform offers a wide range of features for securing electronic document workflows. These include encryption of data at rest and in transit, Azure Key Vault for secure storage of keys, certificates, and secrets, and role-based access control (RBAC), which allows precise definition of who has access to what.
- Microsoft 365 Security: Microsoft 365 provides powerful built-in tools for data protection. For example, DLP (Data Loss Prevention) helps detect and block the transfer of confidential information, EDR (Microsoft Defender for Endpoint) offers active device protection against threats, and ATP (Advanced Threat Protection) performs deep analysis of attachments, links, and other attack vectors.
- Automated threat detection: With Microsoft Defender combined with Microsoft Sentinel, the system automatically detects potential threats by analyzing millions of signals per second. This enables early identification of risks and proactive response before any damage is done.
In addition to the listed security mechanisms, electronic document management offers another major advantage — compliance with international or local information security requirements and standards.
International Data Protection Requirements and Standards
- GDPR (General Data Protection Regulation) – A regulation of the European Union that sets rules for the protection of personal data of EU citizens.
- ISO 27001 (International Information Security Standard) – An international standard that defines the requirements for an Information Security Management System (ISMS).
- The European Union Electronic Identification and Trust Services Regulation (eIDAS) – An EU regulation that governs the use of electronic signatures, digital identification, and electronic trust services, ensuring their legal validity across the EU.
- NIST (National Institute of Standards and Technology, USA) – S. government-issued regulations that establish standards in the field of cybersecurity, including recommendations on risk management, cryptography, and information protection for both public and private entities.
Ukrainian Legal Requirements for Data Protection:
- Law of Ukraine “On Electronic Documents and Electronic Document Management” No. 851-IV dated May 22, 2003.
- Law of Ukraine “On Information Protection in Information and Telecommunication Systems” No. 80/94-VR dated July 5, 1994.
- Law of Ukraine “On Electronic Trust Services” No. 2155-VIII dated October 5, 2017 — the Ukrainian counterpart to eIDAS, which regulates electronic signatures and certification.
SmartPoint DMS: Key Benefits and Features of the Electronic Document Management System
Managing document workflows without a process automation solution is nearly impossible. A large legal team could, in theory, monitor whether documents comply with relevant standards, and a large team of managers could manually configure access permissions and personally send documents for signing. However, this would be time-consuming, labor-intensive, and prone to human error. All these processes can be easily optimized with an electronic document management system. SmartPoint DMS is a solution built on Microsoft technologies (Power Automate, SharePoint, and Power Apps), offering a broad set of tools for organizing electronic document workflows of any complexity. The system’s modules help optimize the handling of both internal and external documents and offer the following advantages:
- Legal compliance: SmartPoint DMS is a legally valid system. This means that its document management standards meet current legal requirements.
- Integration with other systems: SmartPoint DMS seamlessly integrates with CRM, ERP, and BI systems, chatbots, qualified electronic signature (QES) libraries, and other solutions – enabling easy implementation into a company’s existing IT infrastructure.
- Custom approval workflows: The system allows the configuration of custom branching approval chains, automating their routing between responsible individuals and departments while safeguarding confidential information.
- Modules for different operations: SmartPoint DMS includes specialized modules for handling contracts, correspondence, tenders, procurement, and more – ensuring comprehensive management of all document types within a company.
- Collaborative work on documents: The system supports co-editing and commenting on documents, ensuring a transparent and well-controlled collaboration process.
- Support for QES (EDS): SmartPoint DMS supports the use of qualified electronic signatures, ensuring the legal validity of electronic documents in line with current legislation. The solution also allows signing and verification of documents directly in the system.
- User-friendly interface: Built on SharePoint and Microsoft’s low-code Power Platform, the system allows companies to quickly configure necessary business processes without needing specialized technical knowledge.
“Thanks to additional configuration of our role-based model, access distribution mechanism, and document permission management, we can establish extra levels of data security in line with your corporate information security policies and ensure multi-level, controlled protection of both individual data and the entire infrastructure,” – Volodymyr Moskalenko, Product Owner and System Architect, SMART business.
In addition to Microsoft-based standard security protocols, the SmartPoint DMS electronic document management system ensures the protection of corporate data through the following mechanisms:
- Built-in process designer: Allows for precise access control settings for each role at every process stage, minimizing the risks of unauthorized access, as well as accidental or intentional deletion or alteration of documents.
- Contractor management: A centralized database with data validation, document linking, and controlled access at each interaction stage.
- Access-based search: Users only see the documents they are authorized to access under the role-based model, eliminating accidental or intentional breaches of information confidentiality.
- Integrated role-based model: Access rights are managed via a flexible role system, which accommodates the company’s hierarchy and specific business processes.
- Integrated communication: Built-in chat and commenting features enable secure discussions of documents without relying on external tools, enhancing information security.
- Automated receipt of legally binding outcomes: Integration with services such as Vchasno allows for the receipt of QES-signed documents and storage confirmations in full compliance with legal requirements.
- Change tracking and audit logs: Every action on a document is recorded — including timestamp, user, and content changes — ensuring transparency and full traceability.
According to McKinsey, productivity growth potential could reach at least 2% annually on average over the next decade, with 60% of that driven by digital technologies. As the business world rapidly evolves, companies that adapt to new realities in time gain a competitive edge. An electronic document management system like SmartPoint DMS can become a valuable asset in such transformation. Its implementation ensures robust data protection, centralized document storage, convenient employee access, and full control over all stages of document processing.
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