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Dematerialization of paper documents: pros and cons

Dematerialization of paper documents: pros and cons

By Roberta Salzano

Published: May 2, 2025

Dematerialization of documents has advantages and disadvantages. Implementing an electronic document management solution (DMS) improves work processes in companies and supports a "paperless" policy.

However, how can we reduce data security risks? How do we ensure the legal value of a digital signature of a contract?

To better understand desktop publishing, its challenges and the impact of this digital transformation on business, here is what you need to know:

The 5 benefits

The process of dematerializing original paper documents also entails a dematerialization of work processes. The concept of economic intelligence then takes on its full meaning: employees gain in responsiveness and productivity.

A zoom on the benefits of document dematerialization.

No. 1: Space savings through digital storage

Digitizing documents offers a significant logistical advantage. The dozens, if not hundreds, of square feet needed to store paper documents and vendor invoices are disappearing.

Electronic storage and management of the digital format of computer documents on CDs, then on USB flash drives and now on servers saves space.

Companies that used to have to rent storage space to keep their documents in paper format now save a lot of money.

No. 2: Data accessibility

One of the biggest benefits of dematerialization in the workplace is the ability to share files instantly around the world using the Internet.

A work group can then carry out coordinated activities, even if they are far apart. Work documents, accounting records and invoices are available online.

This allows customers, suppliers, bookkeepers and accountants to avoid frequent travel and save on related costs.

Another option is to work from home, or telecommute, to provide staff comfort. The responsiveness of the company is increased and everyone saves a lot of time.

No. 3: Computerized document tracking.

The intelligence of an electronic document management system is that it increases employee productivity. Every piece of information is accessible in real time-this is one of the many benefits of digital document management.

Transmitting information is no longer a problem: staff no longer waste time searching for the data they need. They know where to find the information: a DMS software offers the ability to store and classify documents according to different categories and their own classification parameters. Searching becomes smooth and intuitive.

The system also reduces the time it takes to process a file between marketing and sales departments or for accounting through electronic invoicing, for example.

Dematerialization thus accelerates a set of coordinated activities, while ensuring document traceability: the history lets you know who performed an action A at a given time T.

No. 4: A digital archive with legal value

Dematerialization of accounting documents facilitates remote accounting processing . A comprehensive solution allows captured documents to be stored as digital files for accounting archiving.

However, some professional tools are needed:

  • a gital repository to protect the data by giving them legal value,
  • a solution for electronically signing documents and authenticating the signer's identity.

The benefits of accounting dematerialization are many: saving time, productivity, space through dematerialized storage and archiving, and speeding up processing.

No. 5: An ecological approach

From an ecological point of view, the benefits of dematerialization in business can be seen in several ways.

Managing documents through computerized means makes it possible to reduce the ecological footprint efficiently, consuming fewer resources and saving tons of paper.

Reducing the number of document printouts and ink cartridge consumption means taking action to protect the environment.

All business operators should also consider recycling paper documents destined for disposal, such as using unprinted back pages, e.g., as a notebook

The 5 disadvantages

Dematerialization of invoices and documents has some disadvantages and risks if one forgets to consider all the issues related to dematerialization. Some are simple psychological barriers that can be removed, and as for the more concrete risks there is a way to protect yourself. Let's see how.

No. 1: financial investment

The first of the disadvantages of dematerialization and digitization: investment. Moving from paper to electronic document management involves technical, maintenance, hosting, etc. costs.

A technical analysis of the means is necessary. A dematerialization project must take into account the control of the computer network to connect internally used business applications.

It is also necessary to set an efficiency goal and quantify it to improve quality, turnaround time (etc.) and anticipate the electronic filing needs of each employee.

All these elements must be part of a digital transformation strategy whose benefits will benefit the growth of the entire company in the long run.

Data is the company's most valuable asset: invest or die is the question to ask if financial investment is any kind of barrier for you.

Preparing human resources is another imperative: the concept of digital transformation does not come naturally to all people working in the company...

No. 2: resistance to change

Imagine a group of employees used to processing information on paper, using the same methods for 10 years for them digital documents are a nightmare.

These people may express resistance to change, out of fear of the unknown or ignorance of new technologies.

To prevent them from taking dematerialization as an arbitrarily imposed constraint, it is necessary to provide the right support.

The computerization of the company and the creation of new work procedures must be accompanied by on-site training. The HR manager can use a training plan to put these new practices into practice and extend them to all company activities.

The user must be given time to adapt to understand this new work environment, its conditions and rules of use.

The best approach is pedagogical: it is necessary to explain in stages how the DMS is useful, will help him do his job and be more efficient. Through counseling he will learn how to process information more quickly and flexibly.

No. 3: Data security and integrity

The dematerialization of administrative documents and the processing of sensitive data, such as personal data collected, raise the issue of security of stored information.

The GDPR mandates a system of storing data anonymously and with an extremely high level of confidentiality and protection of processed data. Therefore, it is important to resort to market solutions that guarantee the protection of information, materialized by many files circulating inside and sometimes outside the company.

In addition, it is necessary to protect all access and ensure proper user rights management to protect against hackers, fraud and attacks that can corrupt data integrity with a single click.

No. 4: Loss of documents

This is a major problem: The issue always comes up in a document dematerialization context.

A solution that enables automatic backup of information solves this problem to facilitate digital preservation. Quality training will also enable the entire organization to adopt best practices within the organization.

No. 5: The legal value of a digital signature

Among the limitations of document dematerialization expressed by some managers: the legal value of an electronic signature. This concern is legitimate when an important contract is signed electronically.

To be sure of the legal value of an electronic signature, it is necessary to use a trusted third party. This is a state-certified certification authority that meets all the most stringent European security conditions and standards.

A solution such as Yousign is therefore recommended for signing a contract or document electronically:

  • the tool issues a unique electronic signature certificate that certifies the identity of the signer
  • the user has a digital safe built into the solution to store their documents with evidentiary value
  • time-stamping of signatures and documents enables certification of the date and time of issue

The legal value of electronically signed documents is therefore indisputable

The security requirements are very high:

  • the Yousign solution is eIDAS and ETSI certified, two certificates of compliance that attest to a high level of security at the European and international level,
  • Yousign is also on the AINSSI list of trusted service providers recommended by the French government,
  • the solution is French and hosts data in France, in full compliance with DGMP obligations.

It is certainly because of these many qualities that companies and organizations such as Konbini, AON, Allianz, Viessmann and many others use Yousign to electronically sign HR contracts or financial documents accelerating their digital transformation.

Article translated from Italian