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State of the Document Management Service Providers Industry -‐-‐ 2010
Available on SlideShare.net – search on jmancini77
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… or 15 things the survey said
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… plus a bonus speculaFon on the future …
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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?
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2010 – BeIer or Worse?
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Service Company
64%
Sys Int 12%
VAR 20%
Other 4%
85 Survey Par,cipants $250 million in revs
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0
5,000
10,000
15,000
20,000
2010 est revenues (in 000s)
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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
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• 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.
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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
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HERE is where I will summarize the highlights.
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3272
1344
3199
1400
3510
1422
Mean Median
Revenues
2009 = -2.2% 2010 = +9.7%
1. Aggregate revenues up 9.7% vs. 2009
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based on 85 reporFng companies Total aggregate revenues of $250 million
2. 79% of companies surveyed profitable
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2010 – BeIer or Worse?
What’s in the Head of Your Customers?
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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
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A Short History of ECM – The Early Days
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
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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
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A Short History of ECM – The Early Days
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
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A Short History of ECM – The Early Days
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
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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
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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)
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2010 – BeIer or Worse?
What’s in the Head of Your Customers?
What’s in YOUR Head?
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based on 85 reporFng companies Total aggregate revenues of $250M
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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
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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
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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.
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13. When service companies themselves outsource to a partner, the most likely processes are film-‐related and indexing
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14. Top on the wish list of desired support for vendor partners are: a) joint sales calls; and b) pricing flexibility
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15. Top on the wish list of aIributes for scanning/capture partners are: a) price; and b) reputaFon
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Photo source = hIp://www.flickr.com/photos/mcfarlandmo/3274597033/
2010 – BeIer or Worse?
What’s in the Head of Your Customers?
What’s in YOUR Head?
Where is the ECM Industry Headed?
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33
Understanding markets in transi,on
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34
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Understanding Markets in Transi,on
35
AIIM Task Force
For more informaFon -‐-‐ hIp://www.aiim.org/futurehistory
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36
Image source = hIp://www.direcFmpactnow.com/
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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
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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?
Source = AIIM and TCG Advisors
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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
Source = AIIM and TCG Advisors
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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