What Document Management System Is Right For You?

Evaluating document management systems, looking at the different features available, and determining what is best for your firm can be a daunting task. This article provides helpful information on the most common document management systems used within law firms to make these decisions easier.

When contemplating an appropriate document management software solution, the most important thing to consider is ease-of-use. The software's interface should be familiar enough so computer users of any skill level can use it. You also want to make sure that the software has the features you need to effectively manage your documents and integrate with other key systems in your environment.

Firms often spend an inordinate amount of time compiling information on the various document management systems to make their decision process easier. So let's look at which systems on the market are being widely used today.

Based upon the ILTA (International Legal Technology Association) Technology Survey, there are four primary document management systems being used in the legal industry today. Here is how the survey listed them, in order of usage, by ILTA members:

1. Autonomy/iManage (a.k.a., Interwoven).
2. OpenText (a.k.a., Hummingbird/DocsOpen).
3. Worldox.
4. NetDocuments.

As you evaluate different document management software packages, keep in mind that your choice should be based on your business needs, not technology. If you focus solely on the technology, you may wind up with a solution that your staff will not use because it's too much of a change and doesn't fit your business processes.

To make comparisons, it's always best to get live demonstrations. Whether face-to-face or online, a live demo will allow the vendor to showcase strong points while also allowing you to ask questions.

Determine Your Needs

All document management systems share a lot in common. They direct and organize the flow of your electronic information. You want to make all those pieces of paper that traditionally overflow your file cabinets available electronically and searchable in one place. This includes not only the documents you have generated, but also all the e-mails relating to the matter, scans, faxes, etc. Some of this information may be collected in other systems, but the underlying documents are best saved and accessed in a document management system.

But aside from basic functionality, what else do you need? In addition to word processing documents, document management systems need to accommodate e-mail, scanned documents and Web research. Many other functions are available and although you may only choose to implement some of them, you should know they exist. See the chart below for a side-by-side comparison of some of the features in the products we are discussing.

[IMGCAP(1)]

Autonomy/iManage (Interwoven) focuses on the medium to large firms and offers search functionality, together with broader content management functionality. It pioneered “matter-centric” focus, which is something that is now shared by all the systems discussed in this article. In 2009, Interwoven was acquired by Autonomy, a British company in the content management space. [Editor's Note: As this issue was going to press, HP announced that it purchased Autonomy for $10 billion. See, http://bit.ly/rkgMRO.]

OpenText (formerly Hummingbird/DocsOpen) has been downplaying document management in favor of its broader “Enterprise Content Management” products. However, you can still acquire the base product if your needs do not require the broader functions.

Worldox tends to be focused toward the small and medium-sized firms. Its system is distinguished from other programs in that it does not use an SQL database, nor does it generally require a separate server over and above your file server. It is also priced lower than Autonomy/iManage or OpenText, so the overall installation and maintenance fees are likely to be less than other programs.

NetDocuments is the only purely Web-based document management system for the legal industry today. Over the last several years, it has evolved into a full-fledged document management system. You can set it up so that the “backup” resides on a local server in your office.

The primary functions firms consider when comparing document management solutions are as follows:

• Efficiency in Finding Documents;
• Version Control;
• e-Mail Integration;
• Scanning and OCR Integration;
• Web Interface; and
• Audit Logs/Security.

Each of the products outlined provide all of the above capabilities in some form. What differentiates them from a customer's perspective is based on the business processes of the firm. The cost of ownership is also an important factor. However regardless of the solution, there will always be a return on the investment in document management. If you were to use a range of $1,000 to $1,500 per-user for software and implementation services for each of the base systems, and an increase in productivity for one attorney billing $250 an hour by two hours per week, you would recapture the investment in three weeks or less.

As reported in the ILTA survey, Autonomy/iManage maintains the highest ranking on usage. OpenText has market share, but we are seeing more and more migrations to other solutions. Worldox has the largest number of installations, but not necessarily the most seats, and NetDocuments is making news with more migrations.

Impact of the Cloud

In addition, the concept of cloud technology in the document management arena is gaining more attention. Although each of the solutions outlined now have cloud offerings, NetDocuments is the only provider where this is the only solution. The concept of cloud-based document management has all of the features we've been discussing, but the entry costs are mitigated without the need of additional hardware.

The potential downside to cloud document management solutions is the perceived security and risk concerns. Right now, this is a concern for many firms, but we may see a shift coming.

A current client recently migrated from DocsOpen to NetDocuments and provided the following notes on its decision:

• Eliminated the need for servers on premises, streamlining operation and utilizing IT staff more effectively.
• Has built-in business continuity, securing data in two, fully redundant data centers plus a backup copy of all data on-site.
• No capital investment needed to implement.
• Upgrades and enhancement releases are automatic.
• Built-in ability to provide clients with online access to our documents, as appropriate, via an extranet.

Other Issues

Worldox's ease of implementation offers a low-cost entry with limited hardware requirements, however scalability and the fact that it does not use a SQL database is a concern for firms that want the flexibility that SQL offers without adding potential programming costs. The flexibility of multiple profile formats is attractive, but is limited in the amount of customization for each profile.

iManage has retained a major portion of the market, and although it's been through a few mergers, it has plenty of life. It is a proven product in the legal marketplace and scalable to meet the demands of small and large firms. There is a myth that the cost of entry for the smaller to mid-sized firms is too high, but preparing an expectation, negotiating and preparing a proper design strategy can contain this. For firms that want the flexibility of a larger scale solution with a greater ability to integrate without additional programming, this can be a solution.

OpenText continues to have a large presence in the legal marketplace with its DocsOpen customers who have yet to migrate to the latest versions. It is unfortunate, but we are seeing more law firms migrating to other solutions based on support needs and focus on the legal market. OpenText continues to market it's solutions for the matter lifecycle with proven technologies, and it will be interesting to watch what happens here.

Conclusion

When all is said and done, most document management systems offer similar “functionality” and many add-ons for utilities such as e-mail management, Web access, workflow and records management. It is important that you consider and prioritize both your current and future needs. Consider your long-term plan, and remember ' you don't have to acquire all of the components at once. Just knowing certain functionality is available should you need it down the road can sometimes be key. Phasing in additional functionality at a later date can also make the impact and time to implement now less stressful.

Evaluating document management systems, looking at the different features available, and determining what is best for your firm can be a daunting task. This article provides helpful information on the most common document management systems used within law firms to make these decisions easier.

When contemplating an appropriate document management software solution, the most important thing to consider is ease-of-use. The software's interface should be familiar enough so computer users of any skill level can use it. You also want to make sure that the software has the features you need to effectively manage your documents and integrate with other key systems in your environment.

Firms often spend an inordinate amount of time compiling information on the various document management systems to make their decision process easier. So let's look at which systems on the market are being widely used today.

Based upon the ILTA (International Legal Technology Association) Technology Survey, there are four primary document management systems being used in the legal industry today. Here is how the survey listed them, in order of usage, by ILTA members:

1. Autonomy/iManage (a.k.a., Interwoven).
2. OpenText (a.k.a., Hummingbird/DocsOpen).
3. Worldox.
4. NetDocuments.

As you evaluate different document management software packages, keep in mind that your choice should be based on your business needs, not technology. If you focus solely on the technology, you may wind up with a solution that your staff will not use because it's too much of a change and doesn't fit your business processes.

To make comparisons, it's always best to get live demonstrations. Whether face-to-face or online, a live demo will allow the vendor to showcase strong points while also allowing you to ask questions.

Determine Your Needs

All document management systems share a lot in common. They direct and organize the flow of your electronic information. You want to make all those pieces of paper that traditionally overflow your file cabinets available electronically and searchable in one place. This includes not only the documents you have generated, but also all the e-mails relating to the matter, scans, faxes, etc. Some of this information may be collected in other systems, but the underlying documents are best saved and accessed in a document management system.

But aside from basic functionality, what else do you need? In addition to word processing documents, document management systems need to accommodate e-mail, scanned documents and Web research. Many other functions are available and although you may only choose to implement some of them, you should know they exist. See the chart below for a side-by-side comparison of some of the features in the products we are discussing.

[IMGCAP(1)]

Autonomy/iManage (Interwoven) focuses on the medium to large firms and offers search functionality, together with broader content management functionality. It pioneered “matter-centric” focus, which is something that is now shared by all the systems discussed in this article. In 2009, Interwoven was acquired by Autonomy, a British company in the content management space. [Editor's Note: As this issue was going to press, HP announced that it purchased Autonomy for $10 billion. See, http://bit.ly/rkgMRO.]

OpenText (formerly Hummingbird/DocsOpen) has been downplaying document management in favor of its broader “Enterprise Content Management” products. However, you can still acquire the base product if your needs do not require the broader functions.

Worldox tends to be focused toward the small and medium-sized firms. Its system is distinguished from other programs in that it does not use an SQL database, nor does it generally require a separate server over and above your file server. It is also priced lower than Autonomy/iManage or OpenText, so the overall installation and maintenance fees are likely to be less than other programs.

NetDocuments is the only purely Web-based document management system for the legal industry today. Over the last several years, it has evolved into a full-fledged document management system. You can set it up so that the “backup” resides on a local server in your office.

The primary functions firms consider when comparing document management solutions are as follows:

• Efficiency in Finding Documents;
• Version Control;
• e-Mail Integration;
• Scanning and OCR Integration;
• Web Interface; and
• Audit Logs/Security.

Each of the products outlined provide all of the above capabilities in some form. What differentiates them from a customer's perspective is based on the business processes of the firm. The cost of ownership is also an important factor. However regardless of the solution, there will always be a return on the investment in document management. If you were to use a range of $1,000 to $1,500 per-user for software and implementation services for each of the base systems, and an increase in productivity for one attorney billing $250 an hour by two hours per week, you would recapture the investment in three weeks or less.

As reported in the ILTA survey, Autonomy/iManage maintains the highest ranking on usage. OpenText has market share, but we are seeing more and more migrations to other solutions. Worldox has the largest number of installations, but not necessarily the most seats, and NetDocuments is making news with more migrations.

Impact of the Cloud

In addition, the concept of cloud technology in the document management arena is gaining more attention. Although each of the solutions outlined now have cloud offerings, NetDocuments is the only provider where this is the only solution. The concept of cloud-based document management has all of the features we've been discussing, but the entry costs are mitigated without the need of additional hardware.

The potential downside to cloud document management solutions is the perceived security and risk concerns. Right now, this is a concern for many firms, but we may see a shift coming.

A current client recently migrated from DocsOpen to NetDocuments and provided the following notes on its decision:

• Eliminated the need for servers on premises, streamlining operation and utilizing IT staff more effectively.
• Has built-in business continuity, securing data in two, fully redundant data centers plus a backup copy of all data on-site.
• No capital investment needed to implement.
• Upgrades and enhancement releases are automatic.
• Built-in ability to provide clients with online access to our documents, as appropriate, via an extranet.

Other Issues

Worldox's ease of implementation offers a low-cost entry with limited hardware requirements, however scalability and the fact that it does not use a SQL database is a concern for firms that want the flexibility that SQL offers without adding potential programming costs. The flexibility of multiple profile formats is attractive, but is limited in the amount of customization for each profile.

iManage has retained a major portion of the market, and although it's been through a few mergers, it has plenty of life. It is a proven product in the legal marketplace and scalable to meet the demands of small and large firms. There is a myth that the cost of entry for the smaller to mid-sized firms is too high, but preparing an expectation, negotiating and preparing a proper design strategy can contain this. For firms that want the flexibility of a larger scale solution with a greater ability to integrate without additional programming, this can be a solution.

OpenText continues to have a large presence in the legal marketplace with its DocsOpen customers who have yet to migrate to the latest versions. It is unfortunate, but we are seeing more law firms migrating to other solutions based on support needs and focus on the legal market. OpenText continues to market it's solutions for the matter lifecycle with proven technologies, and it will be interesting to watch what happens here.

Conclusion

When all is said and done, most document management systems offer similar “functionality” and many add-ons for utilities such as e-mail management, Web access, workflow and records management. It is important that you consider and prioritize both your current and future needs. Consider your long-term plan, and remember ' you don't have to acquire all of the components at once. Just knowing certain functionality is available should you need it down the road can sometimes be key. Phasing in additional functionality at a later date can also make the impact and time to implement now less stressful.