How to launch a startup that simplifies HR documentation. The CEO of Doodocs HR shares their experience

Dagdar Davletov, CEO of Doodocs HR

About Me

By training, I am an IT specialist with a degree in Computer Science. Upon returning to Kazakhstan in 2012, I began my startup career with a food delivery project. We attempted to create a service long before well-known players entered the market, but the market was not ready, and we failed to organize logistics. After several years of operation, the project had to be closed.

Subsequently, I focused on IT education, founding a programming school that has launched several thousand people into the job market. Over time, I began collaborating with HR specialists and recruiters, helping our graduates find employment.

After seven years in the education sector, I decided to pursue something new and moved into B2B, creating the Doodocs project—an electronic document management system. We make the document signing process convenient and accessible for businesses and employees. Currently, Doodocs has been developing for over two years.

The Origins of the Doodocs HR Project

We analyzed the document management market and noticed that it is large, with companies spending significant resources on logistics and document dispatch. When we launched Doodocs HR, we targeted a broad range of clients: from small travel agencies to large telecom companies. Gradually, we realized that our clients, especially large enterprises, needed convenience in their HR processes.

We discovered that existing solutions only addressed part of the needs, so we decided to focus on improving processes for HR professionals. We chose a niche where we could deliver the most value and continue to develop the Doodocs HR product to better meet the demands in this area.

Clients and Users

Our clients encompass the entire market for electronic HR document management. Almost any company can become our client—whether it is a media holding or a flower shop. If a company has employees, it potentially needs our solution.

Nevertheless, we segment the market. We have found that companies with more than 50 employees feel the need for automating HR processes most acutely, as manual management becomes too labor-intensive.

Currently, we work with companies having at least 200 employees. We help save on HR processes, but this requires a large number of employees. If you have fewer than 200 employees, it is better to postpone automation and return to it later.

We do not just sell the product; we implement the system until it is fully convenient for use. Our users are HR specialists and HR managers who use our system to manage HR documents.

Company employees are also our users. While traditional document management is usually associated with B2B, we focus on B2C, where the company signs documents with individuals. We make this process simple and convenient, allowing documents to be signed from a mobile phone and enabling work without a computer. This provides quick access to applications, certificates, and other documents.

Product Implementation Process

The implementation process varies depending on the size of the company and takes up to a month on average. First, a business analysis is conducted, where analysts study the processes. Then, if necessary, developers are engaged to configure the system on the company’s servers or in the cloud. Afterward, we conduct pilot testing in one department and train employees. If everything meets expectations, we scale the system across the entire company and move to warranty support.

Support includes both technical assistance—help with configuration and problem-solving—and user support—helping employees with system usage. We strive to minimize the burden on HR specialists by ensuring prompt resolution of user issues.

Security and Legitimacy of Electronic Document Management

From the start of the startup, we understood the importance of information security and document legitimacy. We took data protection seriously and ensured that all parties to a transaction were protected by documents. If documents are not legitimate, it puts both the terms of the deal and the security of the parties at risk. Therefore, we thoroughly studied these issues and continue to address them.

There are laws regulating the use of electronic documents. An electronic digital signature (EDS) has the same legal force as a handwritten signature and can be obtained through a Citizen Service Center (CSC), biometric systems, or banking applications. Documents signed with an EDS are equivalent to those with a wet signature. We strictly comply with legislation and do not accept unverified methods of signing documents, even if they are more convenient for clients.

I recommend that companies considering a transition to electronic documents carefully choose vendors or solutions, or develop these aspects independently. This will help ensure compliance with legislation and protect interests.

Development of Electronic Document Management Worldwide

We see significant growth in our sector globally. Technologies such as AI and blockchain have not greatly changed the document management market; the greatest impact was caused by the pandemic. The main restraining factor was regulation. For example, in Kazakhstan, the law on EDS long restricted the use of electronic documents. In contrast, in the US, signing documents often requires only clicking “OK” or typing a surname on a computer. Regulatory restrictions in other countries were relaxed during the pandemic, allowing documents to be signed electronically. As a result, the global electronic document management market has grown significantly.

In 2022, Kazakhstan introduced the eGov Mobile app and others, which implemented QR signatures to simplify interaction with government services. This significantly improved the user experience and accelerated the development of electronic document management, which had previously been hindered by the complex EDS system.

With the launch of eGov Mobile, the issue of electronic document management became much simpler, giving our product a significant boost. When we were the first to integrate this service for signing, sales increased, and customers became more satisfied due to the convenience and security of biometric signatures on smartphones. In Kazakhstan, we see substantial growth in the field of electronic and HR document management, as government bodies such as the Ministry of Labor and the Enbek.kz service require more and more data. This creates additional pressure on businesses and HR departments. We expect demand for our solutions to grow, and although competition exists, the market is large enough for several players.

Plans

We have two products. The first is a simple and convenient document management system that we began developing two years ago. We plan to make it even more open and accessible. We want the product to grow through viral growth and user recommendations.

We also aim to simplify the work process for companies so that their employees spend less time on paperwork and more time on personnel development. In the future, we will release a simplified version for small businesses, while currently focusing on expanding the market for medium and large businesses.

3 Tips for Aspiring Startups

In the startup environment, it is often said that there are three key factors for a successful startup:

1. Market. It is important to assess the market size and its potential. A good idea on a poor market has fewer chances of success.

2. Team. Even on a promising market, it is difficult to achieve success without a strong team. The team must be cohesive and complement each other’s skills.

3. Idea. The idea may evolve and change, but it must be adapted to the market and supported by a strong team.

We successfully chose the market, built a team, and, through several iterations, developed the idea to its current level.