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One of the writers where I work is developing documentation using "walkme" (www.walkme.com). She has mixed feelings about it.
We also have a UX designer of our web application who creates in-application help in a drop-down available upon clicking a help button. She designs the UI and drafts the text, I edit the text, and the software developers build it. It's a very nice solution for customers who need immediate assistance with a specific aspect of the software.
We also use Atlassian Confluence but internally for requirements and design specs.
Rebecca
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