Simply put, an Electronic Document Management System (EDMS) replaces paper files and documents in an office and enables users to send electronic documents through the same steps a paper document or file would follow. An EDMS is primarily used to increase efficiency and eliminate costly inconsistencies common in a paper-based process.

For instance, each new policy application most likely needs to be processed by multiple individuals before it is returned to the filing cabinet. A true EDMS not only provides storage, but must provide the same workflow capabilities. Along the way, it must also protect documents so that only authorized people can view, edit and/or delete them based on the individual's access rights.

An example might be a client's claim records. These records should be kept confidential and an audit trail kept of all access. The EDMS must be easy and straightforward to use and ideally integrate with other applications the office is already using with minimum effort.