0
State	
  of	
  the	
  Document	
  Management	
  Service	
  
Providers	
  Industry	
  -­‐-­‐	
  2010	
  
Available	
  on	
 ...
…	
  or	
  15	
  things	
  the	
  survey	
  said	
  
…	
  plus	
  a	
  bonus	
  speculaFon	
  on	
  the	
  future	
  …	
  
www.aiim.typepad.com	
  
2010	
  –	
  BeIer	
  or	
  Worse?	
  

What’s	
  in	
  the	
  Head	
  of	
  Your	
  Customers?	
  

What’s	
  in	
  YOUR	...
2010	
  –	
  BeIer	
  or	
  Worse?	
  




 Photo	
  source	
  =	
  hIp://www.flickr.com/photos/mcfarlandmo/3274597033/	
  
85	
  Survey	
  Par,cipants	
  
                 Other	
             $250	
  million	
  in	
  revs	
  
                  4...
2010 est revenues (in 000s) 
20,000




15,000




10,000




 5,000




     0
Staffing	
  
•  Mean	
  staff	
  size	
  =	
  87.7	
  
•  Median	
  staff	
  size	
  =	
  14.0	
  

•  Mean	
  rev/employee	
 ...
•  As	
  a	
  percentage	
  of	
  total	
  revenues…	
  
    •  N=33	
  
              –  Key	
  raFons 	
   	
   	
   	
 ...
2010	
          2009	
  
Selling,	
  General	
  and	
       27.3%	
  	
     27.2%	
  	
  
AdministraFve	
  Expense	
  	
  ...
HERE	
  is	
  where	
  I	
  will	
  summarize	
  the	
  highlights.	
  
1.    Aggregate	
  revenues	
  up	
  9.7%	
  vs.	
  2009	
  

                                           Revenues
        ...
2.    79%	
  of	
  companies	
  surveyed	
  profitable	
  




                                                based	
  on	...
2010	
  –	
  BeIer	
  or	
  Worse?	
  

What’s	
  in	
  the	
  Head	
  of	
  Your	
  Customers?	
  




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

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




	
  	
  3%	
  -­‐...
5.    Decision	
  makers	
  vary	
  significantly	
  based	
  on	
  focus	
  of	
  implementaFon	
  



                 Wh...
 	
  XX%	
  -­‐-­‐	
  Con,nuity/disaster	
  recovery	
  
	
  	
  XX%	
  -­‐-­‐	
  Records	
  and	
  compliance	
  
	
  	
 ...
6.     Top	
  business	
  drivers	
  for	
  capture	
  clear,	
  but	
  not	
  necessarily	
  consistent	
  

	
  	
  15%	...
7.    Users	
  value	
  cost	
  benefits	
  of	
  capture	
  outsourcing	
  most;	
  but	
  not	
  as	
  
      much	
  as	...
9.    End	
  users	
  look	
  to	
  AIIM	
  and	
  local	
  events	
  as	
  most	
  favored	
  sources	
  of	
  
      inf...
2010	
  –	
  BeIer	
  or	
  Worse?	
  

What’s	
  in	
  the	
  Head	
  of	
  Your	
  Customers?	
  

What’s	
  in	
  YOUR	...
based	
  on	
  85	
  reporFng	
  companies	
  
Total	
  aggregate	
  revenues	
  of	
  $250M	
  
10. Healthcare	
  clearly	
  perceived	
  as	
  THE	
  key	
  growth	
  market;	
  S&L	
  
     currently	
  the	
  larges...
11. %	
  experiencing	
  revenue	
  growth	
  for	
  professional	
  services,	
  scanning	
  
     services,	
  and	
  so...
12. When	
  service	
  companies	
  themselves	
  outsource	
  to	
  a	
  partner,	
  THE	
  
     most	
  important	
  ch...
13. When	
  service	
  companies	
  themselves	
  outsource	
  to	
  a	
  partner,	
  the	
  
     most	
  likely	
  proce...
14. Top	
  on	
  the	
  wish	
  list	
  of	
  desired	
  support	
  for	
  vendor	
  partners	
  are:	
  a)	
  
      join...
15. Top	
  on	
  the	
  wish	
  list	
  of	
  aIributes	
  for	
  scanning/capture	
  partners	
  are:	
  
      a)	
  pri...
2010	
  –	
  BeIer	
  or	
  Worse?	
  

What’s	
  in	
  the	
  Head	
  of	
  Your	
  Customers?	
  

What’s	
  in	
  YOUR	...
Understanding	
  markets	
  in	
  transi,on	
  




33	
          Photo	
  source	
  =	
  hIp://www.flickr.com/photos/ellen...
34	
  
AIIM	
  Task	
  Force	
  


           Understanding	
  Markets	
  in	
  Transi,on	
  


         For	
  more	
  informaFo...
Image	
  source	
  =	
  hIp://www.direcFmpactnow.com/	
  


36	
  
Consumer	
  Technologies	
  and	
  the	
  Enterprise	
  


                    You	
  Say	
  You	
  Want	
  a	
  Revolu,on...
How	
  can	
  it	
  be	
  that	
  I	
  am	
  so	
  
             powerful	
  as	
  a	
  consumer	
  and	
  so	
  
        ...
Systems of Record                                         Systems of Engagement

          Command	
  and	
  control	
    ...
1.    Aggregate	
  revenues	
  up	
  9.7%	
  vs.	
  2009	
               10.    Healthcare	
  clearly	
  perceived	
  as	
...
State of the Document Management Solution Provider Industry
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State of the Document Management Solution Provider Industry

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Overview of annual survey that AIIM does of trends within the Document Management Service Provider community.

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Transcript of "State of the Document Management Solution Provider Industry"

  1. 1. State  of  the  Document  Management  Service   Providers  Industry  -­‐-­‐  2010   Available  on  SlideShare.net  –  search  on  jmancini77  
  2. 2. …  or  15  things  the  survey  said  
  3. 3. …  plus  a  bonus  speculaFon  on  the  future  …  
  4. 4. www.aiim.typepad.com  
  5. 5. 2010  –  BeIer  or  Worse?   What’s  in  the  Head  of  Your  Customers?   What’s  in  YOUR  Head?   Where  is  the  ECM  Industry  Headed?   Photo  source  =  hIp://www.flickr.com/photos/mcfarlandmo/3274597033/  
  6. 6. 2010  –  BeIer  or  Worse?   Photo  source  =  hIp://www.flickr.com/photos/mcfarlandmo/3274597033/  
  7. 7. 85  Survey  Par,cipants   Other   $250  million  in  revs   4%   VAR   20%   Sys  Int   Service   12%   Company   64%  
  8. 8. 2010 est revenues (in 000s) 20,000 15,000 10,000 5,000 0
  9. 9. 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  
  10. 10. •  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.  
  11. 11. 2010   2009   Selling,  General  and   27.3%     27.2%     AdministraFve  Expense     (mean)   (mean)   28.0%   25.0%   (SG&A  %)   (median)   (median)   Gross  Margin  %   31.8%   30.6%   (mean)   (mean)   35.0%   30.0%   (median)   (median)   N=37   N=40  
  12. 12. HERE  is  where  I  will  summarize  the  highlights.  
  13. 13. 1.  Aggregate  revenues  up  9.7%  vs.  2009   Revenues 2009 = -2.2% 2010 = +9.7% 3272 3199 3510 1344 1400 1422 Mean Median
  14. 14. 2.  79%  of  companies  surveyed  profitable   based  on  85  reporFng  companies   Total  aggregate  revenues  of  $250  million  
  15. 15. 2010  –  BeIer  or  Worse?   What’s  in  the  Head  of  Your  Customers?   Photo  source  =  hIp://www.flickr.com/photos/mcfarlandmo/3274597033/  
  16. 16. 3.  Over  50%  of  AIIM  users  surveyed  at  early  stage  of  capture   competency      3%  -­‐-­‐  We  don’t  scan  anything.      15%  -­‐  We  use  scanners,  but  ECM  –n  organized  way.   A  Short  History  of   not  in  a  The  Early  Days      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.   17  
  17. 17. 4.  Only  16%  acFvely  extracFng  data  from  images  to  drive  processes      3%  -­‐-­‐  We  don’t  scan  anything.   16%      15%  -­‐  We  use  scanners,  but  ECM  –n  organized  way.   A  Short  History  of   not  in  a  The  Early  Days      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.   18  
  18. 18. 5.  Decision  makers  vary  significantly  based  on  focus  of  implementaFon   Who  Makes  the  Decision?   (where  primary  decision-­‐maker  known)   RM  or   IT   Line  of   compliance   Business   Capture   15%   23%   29%   ECM  &  RM  &   24%   34%   14%   DM   Workflow  &   10%   31%   27%   BPM   SharePoint   8%   68%   6%  
  19. 19.    XX%  -­‐-­‐  Con,nuity/disaster  recovery      XX%  -­‐-­‐  Records  and  compliance      XX%  -­‐-­‐  Improve  process  throughput      XX%  -­‐-­‐  Short  Hcustomer  f  ECM  –  The  Early  Days   A   Improve   istory  oservice/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   20  
  20. 20. 6.  Top  business  drivers  for  capture  clear,  but  not  necessarily  consistent      15%  -­‐-­‐  Con,nuity/disaster  recovery      39%  -­‐-­‐  Records  and  compliance      43%  -­‐-­‐  Improve  process  throughput      41%  -­‐-­‐  Short  History  oservice/access   Early  Days   A  Improve  customer   f  ECM  –  The      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   21  
  21. 21. 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   Key  Capture  Outsource  Benefits  (name  2)   Easier  migraFon   Improve  security   Increase  flexibility   Improve  quality   Reduce  expense   Handle  "spikes"   Conserve  mgmt  Fme   Focus  personnel  
  22. 22. 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)  
  23. 23. 2010  –  BeIer  or  Worse?   What’s  in  the  Head  of  Your  Customers?   What’s  in  YOUR  Head?   Photo  source  =  hIp://www.flickr.com/photos/mcfarlandmo/3274597033/  
  24. 24. based  on  85  reporFng  companies   Total  aggregate  revenues  of  $250M  
  25. 25. 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   Your  top  3  growth   markets?   76%  =  healthcare   33%  =  state  and  local   28%  =  banking   26%  =  oil  and  gas/uFl   21%  =  fed  govt   based  on  85  reporFng  companies   Total  aggregate  revenues  of  $250M  
  26. 26. 11. %  experiencing  revenue  growth  for  professional  services,  scanning   services,  and  sosware  sales  up  significantly  in  2010  over  2009   Business  Mix   Revenues  up   Revenues  same   Revenues  down   Last  12  months   Last  12  months   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%  
  27. 27. 12. When  service  companies  themselves  outsource  to  a  partner,  THE   most  important  characterisFc  in  a  partner  is  service  quality.   Core  quali,es  in  an  outsourcing  partner  -­‐-­‐   name  2   Responsiveness   35%   Security   15%   Service  quality   81%   Experience   24%   CompeFtor?   24%  
  28. 28. 13. When  service  companies  themselves  outsource  to  a  partner,  the   most  likely  processes  are  film-­‐related  and  indexing  
  29. 29. 14. Top  on  the  wish  list  of  desired  support  for  vendor  partners  are:  a)   joint  sales  calls;  and  b)  pricing  flexibility  
  30. 30. 15. Top  on  the  wish  list  of  aIributes  for  scanning/capture  partners  are:   a)  price;  and  b)  reputaFon  
  31. 31. 2010  –  BeIer  or  Worse?   What’s  in  the  Head  of  Your  Customers?   What’s  in  YOUR  Head?   Where  is  the  ECM  Industry  Headed?   Photo  source  =  hIp://www.flickr.com/photos/mcfarlandmo/3274597033/  
  32. 32. Understanding  markets  in  transi,on   33   Photo  source  =  hIp://www.flickr.com/photos/ellenm1/3861396678/  
  33. 33. 34  
  34. 34. AIIM  Task  Force   Understanding  Markets  in  Transi,on   For  more  informaFon  -­‐-­‐  hIp://www.aiim.org/futurehistory   35  
  35. 35. Image  source  =  hIp://www.direcFmpactnow.com/   36  
  36. 36. Consumer  Technologies  and  the  Enterprise   You  Say  You  Want  a  Revolu,on   Enterprise  IT   Consumer    IT   On  Hold   On  Fire   Source  =  AIIM  and  TCG  Advisors   37  
  37. 37. How  can  it  be  that  I  am  so   powerful  as  a  consumer  and  so   The  Big  Disconnect   lame  as  an  employee?   How  disrup,ve  will  Consumer  IT  be   to  Enterprise  IT?   Source  =  AIIM  and  TCG  Advisors  
  38. 38. Systems of Record Systems of Engagement Command  and  control   CollaboraFve   Systems  of  Engagement  Emerge   TransacFon-­‐oriented   InteracFon-­‐oriented   Document-­‐centric   User-­‐centric   User  learns  system   System  learns  user   Security  is  key  issue   Privacy  is  key  issue   Source  =  AIIM  and  TCG  Advisors   39  
  39. 39. 1.  Aggregate  revenues  up  9.7%  vs.  2009   10.  Healthcare  clearly  perceived  as  THE  key   2.  79%  of  companies  surveyed  profitable   growth  market;  S&L  currently  the   3.  Over  50%  of  AIIM  users  surveyed  at   largest  exisFng  market,  but  likely  subject   early  stage  of  capture  competency   to  pressures  in  next  few  years   4.  Only  16%  acFvely  extracFng  data  from   11.  %  experiencing  revenue  growth  for   professional  services,  scanning  services,   images  to  drive  processes   and  sosware  sales  up  significantly  in   5.  Decision  makers  vary  significantly  based   2010  over  2009   on  focus  of  implementaFon   12.  When  service  companies  themselves   6.  Top  business  drivers  for  capture  clear,   outsource  to  a  partner,  THE  most   but  not  necessarily  consistent   important  characterisFc  in  a  partner  is   7.  Users  value  cost  benefits  of  capture   service  quality;  top  processes  film-­‐ outsourcing  most;  but  not  as  much  as   related  and  indexing   suppliers  think  they  do   13.  When  service  companies  themselves   8.  Service  companies  under-­‐esFmate  the   outsource  to  a  partner,  the  most  likely   value  users  place  on  smoothing   processes  are  film-­‐related  and  indexing   workflow  spikes   14.  Top  on  the  wish  list  of  desired  support   9.  End  users  look  to  AIIM  and  local  events   for  vendor  partners  are:  a)  joint  sales   as  most  favored  sources  of  informaFon   calls;  and  b)  pricing  flexibility   on  capture  and  scanning  soluFons;   15.  Top  on  the  wish  list  of  aIributes  for   soluFon  providers  tend  to  over-­‐value   scanning/capture  partners  are:  a)  price;   their  own  email  markeFng  and  large   and  b)  reputaFon   verFcal  events  and  under-­‐invest  in  press   (and  frankly  in  AIIM)  
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