SLaLe of Lhe uocumenL ManagemenL Servlce

rovlders lndusLry -- 2010

Avallable on SlldeShare.neL - search on [manclnl77
. or 13 Lhlngs Lhe survey sald
. plus a bonus speculauon on Lhe fuLure .
www.allm.Lypepad.com
hoLo source = hup://www.lckr.com/phoLos/mcfarlandmo/3274397033/
2010 - 8euer or Worse?
WhaL's ln Lhe Pead of ?our CusLomers?
WhaL's ln ?Cu8 Pead?
Where ls Lhe LCM lndusLry Peaded?
hoLo source = hup://www.lckr.com/phoLos/mcfarlandmo/3274397033/
2010 - 8euer or Worse?
Servlce
Company
64
Sys lnL
12
vA8
20
CLher
4
8S Survey arnc|pants
52S0 m||||on |n revs
0
5,000
10,000
15,000
20,000
2010 est revenues (in 000s)
SLamng
Mean sLa slze = 87.7
Medlan sLa slze = 14.0
Mean rev/employee = $113,378
Medlan rev/employee = $83,833
Mean sales sLa slze = 4.6
Medlan sales sLa slze = 2.0
As a percenLage of LoLal revenues.
n=33
key rauons 2010 2009
varlable Selllng expense 10.2 7.3
ersonnel expense 33.2 31.8
Seml-xed expense 9.8 8.8
llxed expense 13.1 8.9
Var|ab|e Se|||ng Lxpense -- expenses lncurred whlch can be ued back Lo a sales evenL. arucularly, sales
commlsslons and cusLomer goodwlll accommodauons.
ersonne| Lxpense -- expenses LhaL are lncurred ln paymenL of employee compensauon, Laxes or beneLs.
Sem|-hxed Lxpenses -- normal overhead expenses LhaL may shrlnk or grow ln relauon Lo Lhe volume of buslness
buL are noL ued Lo a speclc sales evenL. Lxamples would lnclude adveruslng, Lelephone, and omce supplles.
Sem|-hxed Lxpenses -- normal overhead expenses LhaL may shrlnk or grow ln relauon Lo Lhe volume of buslness
buL are noL ued Lo a speclc sales evenL. Lxamples would lnclude adveruslng, Lelephone, and omce supplles.
2010 2009
Selllng, Ceneral and
AdmlnlsLrauve Lxpense
(SC&A )
27.3
(mean)
28.0
(medlan)
27.2
(mean)
23.0
(medlan)
Cross Margln
31.8
(mean)
33.0
(medlan)
30.6
(mean)
30.0
(medlan)
n=37 n=40
PL8L ls where l wlll summarlze Lhe hlghllghLs.
3272
1344
3199
1400
3510
1422
Mean Median
Revenues
2009 = -2.2%
2010 = +9.7%
1. AggregaLe revenues up 9.7 vs. 2009
based on 83 reporung companles
1oLal aggregaLe revenues of $230 mllllon
2. 79 of companles surveyed proLable
hoLo source = hup://www.lckr.com/phoLos/mcfarlandmo/3274397033/
2010 - 8euer or Worse?
WhaL's ln Lhe Pead of ?our CusLomers?
A Short n|story of LCM - 1he Lar|y Days
17
3 -- We don't scan anyth|ng.
1S - We use scanners, but not |n an organ|zed way.
34 -- We scan as |mage on|y]manua||y app|y metadata.
1S -- We scan]capture metadata for arch|ve]rounng.
17 -- We scan and CCk for fu|| text search.
3. Cver 30 of AllM users surveyed aL early sLage of capLure
compeLency
A Short n|story of LCM - 1he Lar|y Days
18
3 -- We don't scan anyth|ng.
1S - We use scanners, but not |n an organ|zed way.
34 -- We scan as |mage on|y]manua||y app|y metadata.
1S -- We scan]capture metadata for arch|ve]rounng.
17 -- We scan and CCk for fu|| text search.
16
4. Cnly 16 acuvely exLracung daLa from lmages Lo drlve processes
kM or
comp||ance
I1 L|ne of
8us|ness
CapLure 13 23 29
LCM & 8M &
uM
24 34 14
Workow &
8M
10 31 27
ShareolnL 8 68 6
Who Makes the Dec|s|on?
(where pr|mary dec|s|on-maker known)
3. ueclslon makers vary slgnlcanLly based on focus of lmplemenLauon
A Short n|story of LCM - 1he Lar|y Days
20
kk -- Connnu|ty]d|saster recovery
kk -- kecords and comp||ance
kk -- Improve process throughput
kk -- Improve customer serv|ce]access
kk -- keduce paper]go green
kk -- keduce transportanon]|og|sncs costs
kk -- Improve |nformanon access]kM
kk -- keduce phys|ca| omce costs
kk -- Increase ex|b|||ty
kk -- keduce data entry costs
A Short n|story of LCM - 1he Lar|y Days
21
1S -- Connnu|ty]d|saster recovery
39 -- kecords and comp||ance
43 -- Improve process throughput
41 -- Improve customer serv|ce]access
26 -- keduce paper]go green
17 -- keduce transportanon]|og|sncs costs
S3 -- Improve |nformanon access]kM
43 -- keduce phys|ca| omce costs
06 -- Increase ex|b|||ty
13 -- keduce data entry costs
6. 1op buslness drlvers for capLure clear, buL noL necessarlly conslsLenL
locus personnel
Conserve mgmL ume
Pandle "splkes"
8educe expense
lmprove quallLy
lncrease exlblllLy
lmprove securlLy
Lasler mlgrauon
key Capture Cutsource 8enehts (name 2)
7. users value cosL beneLs of capLure ouLsourclng mosL, buL noL as
much as suppllers Lhlnk Lhey do
8. Servlce companles under-esumaLe Lhe value users place on
smooLhlng workow splkes
9. Lnd users look Lo AllM and local evenLs as mosL favored sources of
lnformauon on capLure and scannlng soluuons, soluuon provlders
Lend Lo over-value Lhelr own emall markeung and large verucal
evenLs and under-lnvesL ln press (and frankly ln AllM)
hoLo source = hup://www.lckr.com/phoLos/mcfarlandmo/3274397033/
2010 - 8euer or Worse?
WhaL's ln Lhe Pead of ?our CusLomers?
WhaL's ln ?Cu8 Pead?
based on 83 reporung companles
1oLal aggregaLe revenues of $230M
based on 83 reporung companles
1oLal aggregaLe revenues of $230M
?our Lop 3 growLh
markeLs?
76 = healLhcare
33 = sLaLe and local
28 = banklng
26 = oll and gas/uul
21 = fed govL
10. PealLhcare clearly percelved as 1PL key growLh markeL, S&L
currenLly Lhe largesL exlsung markeL, buL llkely sub[ecL Lo pressures
ln nexL few years
8uslness Mlx
8evenues up
LasL 12 monLhs
8evenues same
LasL 12 monLhs
8evenues down
LasL 12 monLhs
Mlcrographlc PW 1 73 23
Scannlng PW 30 43 26
Mlcrographlc serv 3 63 29
Scannlng serv 43 28 29
rofesslonal serv 61 26 12
uM and LCM SW 49 32 19
Soware uev 26 70 4
11. experlenclng revenue growLh for professlonal servlces, scannlng
servlces, and soware sales up slgnlcanLly ln 2010 over 2009
24
24
81
13
33
CompeuLor?
Lxperlence
Servlce quallLy
SecurlLy
8esponslveness
Core qua||nes |n an outsourc|ng partner --
name 2
12. When servlce companles Lhemselves ouLsource Lo a parLner, 1PL
mosL lmporLanL characLerlsuc ln a parLner ls servlce quallLy.
13. When servlce companles Lhemselves ouLsource Lo a parLner, Lhe
mosL llkely processes are lm-relaLed and lndexlng
14. 1op on Lhe wlsh llsL of deslred supporL for vendor parLners are: a)
[olnL sales calls, and b) prlclng exlblllLy
13. 1op on Lhe wlsh llsL of aurlbuLes for scannlng/capLure parLners are:
a) prlce, and b) repuLauon
hoLo source = hup://www.lckr.com/phoLos/mcfarlandmo/3274397033/
2010 - 8euer or Worse?
WhaL's ln Lhe Pead of ?our CusLomers?
WhaL's ln ?Cu8 Pead?
Where ls Lhe LCM lndusLry Peaded?
33
Understand|ng markets |n trans|non
hoLo source = hup://www.lckr.com/phoLos/ellenm1/3861396678/
34
Understand|ng Markets |n 1rans|non
33
AIIM 1ask Iorce
lor more lnformauon -- hup://www.allm.org/fuLurehlsLory
36
lmage source = hup://www.dlrecumpacLnow.com/
ou Say ou Want a kevo|unon
37
Consumer 1echno|og|es and the Lnterpr|se
Lnterpr|se I1
Cn no|d
Consumer I1
Cn I|re
Source = AllM and 1CC Advlsors
1he 8|g D|sconnect
now d|srupnve w||| Consumer I1 be
to Lnterpr|se I1?
now can |t be that I am so
!"#$%&'( as a consumer and so
()*$ as an emp|oyee?
Source = AllM and 1CC Advlsors
Command and conLrol
Systems of Lngagement Lmerge
39
Systems of Record Systems of Engagement
1ransacuon-orlenLed
uocumenL-cenLrlc
user learns sysLem
SecurlLy ls key lssue
lnLeracuon-orlenLed
user-cenLrlc
SysLem learns user
rlvacy ls key lssue
Collaborauve
Source = AllM and 1CC Advlsors
1. AggregaLe revenues up 9.7 vs. 2009
2. 79 of companles surveyed proLable
3. Cver 30 of AllM users surveyed aL
early sLage of capLure compeLency
4. Cnly 16 acuvely exLracung daLa from
lmages Lo drlve processes
3. ueclslon makers vary slgnlcanLly based
on focus of lmplemenLauon
6. 1op buslness drlvers for capLure clear,
buL noL necessarlly conslsLenL
7. users value cosL beneLs of capLure
ouLsourclng mosL, buL noL as much as
suppllers Lhlnk Lhey do
8. Servlce companles under-esumaLe Lhe
value users place on smooLhlng
workow splkes
9. Lnd users look Lo AllM and local evenLs
as mosL favored sources of lnformauon
on capLure and scannlng soluuons,
soluuon provlders Lend Lo over-value
Lhelr own emall markeung and large
verucal evenLs and under-lnvesL ln press
(and frankly ln AllM)
10. PealLhcare clearly percelved as 1PL key
growLh markeL, S&L currenLly Lhe
largesL exlsung markeL, buL llkely sub[ecL
Lo pressures ln nexL few years
11. experlenclng revenue growLh for
professlonal servlces, scannlng servlces,
and soware sales up slgnlcanLly ln
2010 over 2009
12. When servlce companles Lhemselves
ouLsource Lo a parLner, 1PL mosL
lmporLanL characLerlsuc ln a parLner ls
servlce quallLy, Lop processes lm-
relaLed and lndexlng
13. When servlce companles Lhemselves
ouLsource Lo a parLner, Lhe mosL llkely
processes are lm-relaLed and lndexlng
14. 1op on Lhe wlsh llsL of deslred supporL
for vendor parLners are: a) [olnL sales
calls, and b) prlclng exlblllLy
13. 1op on Lhe wlsh llsL of aurlbuLes for
scannlng/capLure parLners are: a) prlce,
and b) repuLauon