State of the Document Management Solution Provider Industry

State of the Document Management Service Providers Industry -‐-‐ 2010

Available on SlideShare.net – search on jmancini77

… or 15 things the survey said

… plus a bonus speculaFon on the future …

www.aiim.typepad.com

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2010 – BeIer or Worse?

What’s in the Head of Your Customers?

What’s in YOUR Head?

Where is the ECM Industry Headed?



Service Company

64%

Sys Int 12%

VAR 20%

Other 4%

85 Survey Par,cipants $250 million in revs

0

5,000

10,000

15,000

20,000

2010 est revenues (in 000s)

Staffing

•  Mean staff size = 87.7 •  Median staff size = 14.0

•  Mean rev/employee = $113,578 •  Median rev/employee = $85,833

•  Mean sales staff size = 4.6 •  Median sales staff size = 2.0

•  As a percentage of total revenues… •  N=33 – Key raFons 2010 2009

– Variable Selling expense 10.2% 7.5% – Personnel expense 35.2% 31.8% – Semi-‐fixed expense 9.8% 8.8%

– Fixed expense 13.1% 8.9%

Variable Selling Expense -‐-‐ expenses incurred which can be Fed back to a sales event. ParFcularly, sales commissions and customer goodwill accommodaFons. Personnel Expense -‐-‐ expenses that are incurred in payment of employee compensaFon, taxes or benefits. Semi-‐fixed Expenses -‐-‐ normal overhead expenses that may shrink or grow in relaFon to the volume of business but are not Fed to a specific sales event. Examples would include adverFsing, telephone, and office supplies. Semi-‐fixed Expenses -‐-‐ normal overhead expenses that may shrink or grow in relaFon to the volume of business but are not Fed to a specific sales event. Examples would include adverFsing, telephone, and office supplies.

2010 2009

Selling, General and AdministraFve Expense (SG&A %)

27.3% (mean) 28.0% (median)

27.2% (mean) 25.0% (median)

Gross Margin % 31.8% (mean) 35.0% (median)

30.6% (mean) 30.0% (median)

N=37 N=40

HERE is where I will summarize the highlights.

3272

1344

3199

1400

3510

1422

Mean Median

Revenues

2009 = -2.2% 2010 = +9.7%

1.  Aggregate revenues up 9.7% vs. 2009

based on 85 reporFng companies Total aggregate revenues of $250 million

2.  79% of companies surveyed profitable




A Short History of ECM – The Early Days

17

3% -‐-‐ We don’t scan anything.

15% -‐ We use scanners, but not in an organized way.

34% -‐-‐ We scan as image only/manually apply metadata.

15% -‐-‐ We scan/capture metadata for archive/rou,ng.

17% -‐-‐ We scan and OCR for full text search.

3.  Over 50% of AIIM users surveyed at early stage of capture competency


18

3% -‐-‐ We don’t scan anything.

15% -‐ We use scanners, but not in an organized way.

34% -‐-‐ We scan as image only/manually apply metadata.

15% -‐-‐ We scan/capture metadata for archive/rou,ng.

17% -‐-‐ We scan and OCR for full text search.

16% 4.  Only 16% acFvely extracFng data from images to drive processes

RM or compliance

IT Line of Business

Capture 15% 23% 29%

ECM & RM & DM

24% 34% 14%

Workflow & BPM

10% 31% 27%

SharePoint 8% 68% 6%

Who Makes the Decision? (where primary decision-‐maker known)

5.  Decision makers vary significantly based on focus of implementaFon


20

XX% -‐-‐ Con,nuity/disaster recovery

XX% -‐-‐ Records and compliance

XX% -‐-‐ Improve process throughput

XX% -‐-‐ Improve customer service/access

XX% -‐-‐ Reduce paper/go green

XX% -‐-‐ Reduce transporta,on/logis,cs costs

XX% -‐-‐ Improve informa,on access/KM

XX% -‐-‐ Reduce physical office costs

XX% -‐-‐ Increase flexibility

XX% -‐-‐ Reduce data entry costs


21

15% -‐-‐ Con,nuity/disaster recovery

39% -‐-‐ Records and compliance

43% -‐-‐ Improve process throughput

41% -‐-‐ Improve customer service/access

26% -‐-‐ Reduce paper/go green

17% -‐-‐ Reduce transporta,on/logis,cs costs

53% -‐-‐ Improve informa,on access/KM

43% -‐-‐ Reduce physical office costs

06% -‐-‐ Increase flexibility

13% -‐-‐ Reduce data entry costs

6.  Top business drivers for capture clear, but not necessarily consistent

Focus personnel Conserve mgmt Fme

Handle "spikes" Reduce expense Improve quality

Increase flexibility Improve security Easier migraFon

Key Capture Outsource Benefits (name 2)

7.  Users value cost benefits of capture outsourcing most; but not as much as suppliers think they do

8.  Service companies under-‐esFmate the value users place on smoothing workflow spikes

9.  End users look to AIIM and local events as most favored sources of informaFon on capture and scanning soluFons; soluFon providers tend to over-‐value their own email markeFng and large verFcal events and under-‐invest in press (and frankly in AIIM)





based on 85 reporFng companies Total aggregate revenues of $250M

based on 85 reporFng companies Total aggregate revenues of $250M

Your top 3 growth markets? 76% = healthcare 33% = state and local 28% = banking 26% = oil and gas/uFl 21% = fed govt

10. Healthcare clearly perceived as THE key growth market; S&L currently the largest exisFng market, but likely subject to pressures in next few years

Business Mix

Revenues up Last 12 months

Revenues same Last 12 months

Revenues down Last 12 months

Micrographic HW 1% 75% 23%

Scanning HW 30% 45% 26%

Micrographic serv 5% 65% 29%

Scanning serv 43% 28% 29%

Professional serv 61% 26% 12%

DM and ECM SW 49% 32% 19%

Sosware Dev 26% 70% 4%

11. % experiencing revenue growth for professional services, scanning services, and sosware sales up significantly in 2010 over 2009

24%

24%

81%

15%

35%

CompeFtor?

Experience

Service quality

Security

Responsiveness

Core quali,es in an outsourcing partner -‐-‐ name 2

12. When service companies themselves outsource to a partner, THE most important characterisFc in a partner is service quality.

13. When service companies themselves outsource to a partner, the most likely processes are film-‐related and indexing

14. Top on the wish list of desired support for vendor partners are: a) joint sales calls; and b) pricing flexibility

15. Top on the wish list of aIributes for scanning/capture partners are: a) price; and b) reputaFon





Where is the ECM Industry Headed?

33

Understanding markets in transi,on

Photo source = hIp://www.flickr.com/photos/ellenm1/3861396678/

34

Understanding Markets in Transi,on

35

AIIM Task Force

For more informaFon -‐-‐ hIp://www.aiim.org/futurehistory

36

Image source = hIp://www.direcFmpactnow.com/

You Say You Want a Revolu,on

37

Consumer Technologies and the Enterprise

Enterprise IT On Hold

Consumer IT On Fire

Source = AIIM and TCG Advisors

The Big Disconnect

How disrup,ve will Consumer IT be to Enterprise IT?

How can it be that I am so powerful as a consumer and so

lame as an employee?


Command and control

Systems of Engagement Emerge

39

Systems of Record Systems of Engagement

TransacFon-‐oriented

Document-‐centric

User learns system

Security is key issue

InteracFon-‐oriented

User-‐centric

System learns user

Privacy is key issue

CollaboraFve


1.  Aggregate revenues up 9.7% vs. 2009 2.  79% of companies surveyed profitable

3.  Over 50% of AIIM users surveyed at early stage of capture competency

4.  Only 16% acFvely extracFng data from images to drive processes

5.  Decision makers vary significantly based on focus of implementaFon

6.  Top business drivers for capture clear, but not necessarily consistent

7.  Users value cost benefits of capture outsourcing most; but not as much as suppliers think they do

8.  Service companies under-‐esFmate the value users place on smoothing workflow spikes

9.  End users look to AIIM and local events as most favored sources of informaFon on capture and scanning soluFons; soluFon providers tend to over-‐value their own email markeFng and large verFcal events and under-‐invest in press (and frankly in AIIM)

10.  Healthcare clearly perceived as THE key growth market; S&L currently the largest exisFng market, but likely subject to pressures in next few years

11.  % experiencing revenue growth for professional services, scanning services, and sosware sales up significantly in 2010 over 2009

12.  When service companies themselves outsource to a partner, THE most important characterisFc in a partner is service quality; top processes film-‐related and indexing

13.  When service companies themselves outsource to a partner, the most likely processes are film-‐related and indexing

14.  Top on the wish list of desired support for vendor partners are: a) joint sales calls; and b) pricing flexibility

15.  Top on the wish list of aIributes for scanning/capture partners are: a) price; and b) reputaFon

Date post:	21-Oct-2014
Category:	Business
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