state of the capture industry 2014

© Copyright 2013 ABBYY

THE STATE OF THE CAPTURE INDUSTRY

BUSINESS DRIVERS, PREFERRED APPROACHES, OPPORTUNITIES AND CHALLENGES

Atle Skjekkeland, Chief Evangelist, AIIM

Agenda

● The Era of Information Chaos

● Capture Opportunities

● Capture Challenges

● Mobile Capture

● Selling Capture Solutions

2

AIIM Mission: To be the leading community for those seeking to learn about and apply innovative information management solutions.

THE ERA OF INFORMATION CHAOSFrom Information Chaos to Information Opportunities

INFORMATION IS NOW EVERYWHERE

90% of information was created in the last two years.

80% of information is un-structured

Creating an expectation of anywhere, anytime access.

Disrupter #1 - Cloud and Mobile

• It is estimated that 4.2 Billion people have a toothbrush, while 5.1 Billion people have a cell phone

• When the platform change, the leaders change

• The buying power is changing from IT to business

• In just 45 seconds, users can go from never having heard a song to owning it

Transforming what users expect from applications and how we deliver them.

Disrupter #2 - Consumerization

• 82% of knowledge workers don’t think their IT department is doing a good job providing them with effective tools and technologies

• 73% of knowledge workers think they should be encouraged to find and test IT solutions that can improve business operations

• We are getting bottom-up procurement models targeting knowledge workers

Forcing organizations to think flat and agile, not hierarchical and slow.

Disrupter #3 - Changing Nature of Work

45% of young professionals would accept a lower paying job with more flexibility rather than a higher-paying job with less.

Source: Cisco

Photo source: http://www.flickr.com/photos/globalx/4864001692/

Managing Information Chaos – managing the volume, variety and velocity of information and content created by these three disrupters - is THE business challenge of the next decade.• Knowledge workers -- “I’m drowning in information but thirsty for

knowledge.”• Security officers -- “Information is leaking out of the organization at every

turn.”• Records managers and lawyers – “The volume of information that is

beyond our ability to control is increasing business risk and exposure.”• IT people -- “I can’t keep up with the demands of the business and they are

working around us rather than with us.”• The Business -- “Productivity is declining because our inability to automate

our core processes.”• The C-Suite -- “I’m afraid we are spending too much just keeping the lights

on, and that we will miss the next wave of technology and be left behind.”

Implication

CAPTURE OPPORTUNITIESFrom Information Chaos to Information Opportunities

Download the full report from http://info.aiim.org/paper-wars

http://info.aiim.org/paper-wars

A Need for Digital Transformation

We are seeing weak growth in both jobs and productivity (both before and after the recession)

Annual productivity gains have declined from 3.3% to 1.8%

Many corporations have over the last 10 years failed to leverage IT to improve productivity.

Corporations need a digital transformation to improve productivity

Source: http://www.frbsf.org/economic-research/publications/working-papers/2014/wp2014-15.pdf

Paper Hinders Progress68% believe business-at-the-speed-of-paper will be “unacceptable in just a few years’ time”

46% consider that the biggest single productivity improvement for most of their business processes is to remove the paper

Source: AIIM



0% 20% 40% 60% 80% 100%

Internal HR: expenses, timesheets, on-boarding, etc.

Finance, accounts payable (invoices)

Customer correspondence, help desk

Specific line-of-business, forms-based, external

Contracts, procurement, shared-services

Other internal processes, e.g., approvals, quality, etc.

Finance, accounts receivable (credit control)

Case-based, claims, investigations, consultations

New applications, mortgages, members, accounts

Logistics, delivery, manifests, etc.

Plant records, inspections, engineering change

Citizen benefits, permits, tax, census, etc.

Paper Free Not Paper-Free

Paper Free Processes

Have you made any of the following processes capture-enabled or paper-free?

N=272 Line length indicates N/A

Source: AIIM

Drivers for Scanning and Capture

What would you say are the three biggest drivers for scanning and data capture in your organization? (Max THREE)

N=327,

0% 10% 20% 30% 40% 50% 60% 70%

Improved searchability/sharability of business documents

Improved process productivity

Reduced physical storage space

Faster response to customers/citizens/staff

Records security and compliance

Remote access for teleworking or business continuity

Reduced postage/transportation and document logistics

Sustainability/environmental initiatives

Improved accuracy and quality of data

Flexibility for process change or outsource

Source: AIIM

Improve Access

• Improve productivity of professional staff by 30.9% (in average) by ensuring they can find internal information and documents as quickly and as easily as they find information on the web. (source: AIIM)

Source: AIIM

Improve Productivity

• Improve productivity of administrative staff by 33.5% (in average) with using work-flowed scanned forms and documents (source: AIIM)

Source: The Forrester WaveTM: Smart Process Applications, Q2 2013

Improve Customer/Staff Engagement

• Connecting people, information, and knowledge helps to improve employee engagement

• Employee engagement affects customer service by 10%, productivity by 21%, and profitability by 22%. (source: Gallup)

Source: http://www.gallup.com/strategicconsulting/161459/engagement-work-effect-performance-continues-tough-economic-times.aspx

Improve Compliance

Subject to Legal Hold,

2%Has

Business Utility, 25%

Regulatory Record

Keeping, 5%

Everything Else, 68%

• Reduce legal costs, fines and damages by 25% (in average) by applying best practice procedures to records management, security and e-Discovery (source: AIIM)

Source: cgoc.com

Improve compliance:

• Finding and retrieving information on demand

• Controlling access and confidentiality

• Monitoring and reporting for enforcement

• Comprehensive auditing

• Secure retention and destruction

Reduce costs:

ROI in the Real World



Point of Capture

Scan “at the door” or Digital

mailroom

Dedicated scan in

advance of the process

Scan to archive after the process

We only do ad hoc

scanning

9% 9% 45%19%18%

Distributed multi-channel

capture

Source: AIIM

Digital Mailroom/Multi-Channel

Which aspects of digital mailrooms are proving the most beneficial? (Max TWO)

N=65, digital mailroom users

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Faster turnaround times to customers

More efficient/higher quality data capture fordownstream processes

Fewer operational staff physically handling mail

Reduced storage and processing space for mail

Immediate access to latest customercorrespondence

Remote accessibility for mobile/telework/outsourcestaff

Fewer lost/delayed mail items

Environmental benefits – fuel, photocopies, etc.

Outsource of mail-handling operations

Source: AIIM

Outsourced Services

What use do you make of outsourced document services and what are your plans?

N=263. Line length indicates Don’t Use

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Box store

Scan-on-retrieval from store

Back-scanning of paper records

Inbound mail services, digital mailroom

Scanning to image, post-process archiving

Scanning to image pre-process

Scanning and data capture pre-process

Outbound merge and printing

SaaS email management/storage

SaaS services for ECM

Use less Use same Use more

% of organizations

40% 30% 20% 10% 0% 20% 30% 40% 50%

Source: AIIM

Semantic and Analytical Technologies

AIIM Nov 2014 - preliminary findings, N=49

• 90% of information and IT professionals think semantic and analytical technologies are key components for turning information chaos into information opportunities

• 84% of organizations will continue to hoard information, but will start to rely on semantic and analytics technologies to provide insight and control

Source: AIIM

CAPTURE CHALLENGESFrom Information Chaos to Information Opportunities



Why So Much Paper?

Why do you think there is still paper in so many of your business processes? (Max THREE)

N=325,

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Lack of management initiatives or mandates to reduce it

We need physical signatures on paper

Staff prefer paper for handling/reading/notes

Lack of understanding of paper-free options

Suppliers and customers continue to send us paper

Legal admissibility will be compromised

It’s a major and potentially disruptive change

Paper provides a more reliable/ auditable/accessible record

Not cost-effective to provide suitablescanning/capture/workflow

Source: AIIM

Success Stories

Have you made any of the following processes capture-enabled or paper-free, and if so, how would you rate the success or ROI of the project?

N=408, Normalized for not applicable and not paper-free

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Finance, accounts payable (invoices)

Finance, accounts receivable (credit control)

Contracts, procurement, shared-services

Customer correspondence, help desk

New applications, mortgages, members, accounts

Specific line-of-business, forms-based, external

Other internal processes, e.g., approvals, quality,…

Case-based, claims, investigations, consultations

Plant records, inspections, engineering change

Citizen benefits, permits, tax, census, etc.

Internal HR: expenses, timesheets, on-boarding, etc.

Logistics, delivery, manifests, etc.

Excellent Good Average Poor

Source: AIIM

Signatures Required

For which of the following needs are authorization signatures considered essential in your organization? (Tick all that are significant)

0% 20% 40% 60% 80%

Internal compliance

Required by regulations

Authorization for action or payment

Contracts with 3rd parties

Required by law

Consent/agreement by customers,…

Professional authority (doctors,…

Health and safety

Source: AIIM

Personal Resort to Paper

For which of the following purposes do you personally resort to printing paper copies?

N=364,

0% 10% 20% 30% 40% 50% 60% 70%

To take to a meeting

To add a signature

To read offline or out of the office

To review and mark up with changes

To keep a legal or audit copy

As a receipt or confirmation of order

As a reference or prompt during an on-screen process

To keep a local or personal file copy

As a hard copy of important emails

Source: AIIM

MOBILE CAPTUREFrom Information Chaos to Information Opportunities



Mobile Evolution

Source: George Parapadakis, IBM

Console Terminals PC Laptop NotebookSmart

Phablet

DirectConnection

RS-232 EthernetDial-UpModem

Broadband3G / 4G

WiFi / Fibre

IT Only SpecialistOffice

WorkerMobile

WorkforceAny

EmployeeCustomers

Data RoomLocation

BasedCompany

WideCustomer

SiteHome

WorkingAnywhere

1960 1970 1980 1990 2000 2010

Location

User

Connectivity

Device

Mobility (Distance from Source)

Timeshare Multi-UserClient-Server

Web AppsInterface

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

General employees at home or travelling

Branch offices/ shops/ stores/ warehouse

Field staff at home

Field staff on road/mobile

Premises of agents, representatives or suppliers

Customers/citizens on your premises (self-service)

Customers/citizens scanned at home

Customers/citizens on web forms or active PDFs

Customers/citizens on mobile, no app

Customers/citizens on mobile, with app

Yes, now Planned 12-18 months No

Mobile Capture - places

Are forms and documents currently captured in any of the following places for use in your key business processes?

N=162, excl. N/ASource: AIIM

Mobile Capture - status

Required option for all

processes

Keen to exploit

Recognize importance, but still not

planning

Not looking to mobile

9% 25% 34% 33%

Source: AIIM

0% 10% 20% 30% 40% 50%

Expense claim receipts

Paper forms (image only)

Supporting documents (image only)

Photo images (as records)

Capture photo images with OCR (barcodes, metering, licenseplates)

Capture paper forms with OCR

Forms app (direct data input – digital clipboard)

Tablet and stylus for signatures

None of these

Mobile Capture - content

Do employees in your business unit use portable devices (portable scanners, smartphones, tablets) for any of the following?

N=162, excl. N/ASource: AIIM

Mobile Capture - benefits

What have been the two biggest benefits of your mobile/portable capture projects? (Max TWO)

N=67 with mobile

0% 10% 20% 30% 40% 50% 60%

Speed of data availability

Reduced logistics of forms and paper handling

Keeping paper out of the process

Improved back-office efficiency

Better data accuracy

Reduction in form-filling time

Freeing up process flows/approval cycles

More competitive customer service

Fewer lost/incomplete forms

Source: AIIM

The Internet of Things

SELLING CAPTURE SOLUTIONSFrom Information Chaos to Information Opportunities



Rethink Your Approach

• Few organizations are ready for the volume, variety, and velocity of information in 2020 – IDC expects us to have 44 times more information by 2020.

• IT investments are changing from IT to Business – Gartner claims that the business currently control 35% of IT investments, but this will change to 90% in 2020.

• The SMAC stack (Social Media, Mobile, Analytics, and Cloud) allows you to disrupt the market – for example, cloud computing allows you to turn the procurement model up-side-down by targeting knowledge workers.

• Consumer IT is impacting how buyers evaluate enterprise IT – they want solutions that are simple, sexy, smart, scalable, secure, and safe.

• Buyers gather according to Sirius Decision in average 70% of the information they need before engaging possible solution providers – you need to educate, take control, and tailor your approach to win the deal.

• Business buyers want to be educated – AIIM research found that 75% of buyers are willing to talk to new solution providers if they provide new insights about their business.

0% 20% 40% 60% 80% 100% 120% 140%

MFP’s

Desktop scanners

Portable scanners

Table-top production scanners

Floor-standing mailroom scanners

OCR/ICR applications

Capture systems/servers

Workflow/BPM

Invoice automation, AP/AR

Outsourcing

Mobile capture apps

Other mobile apps

End-to-end mobile platforms / MDM

Less Same More

Focus on Software

How do you think your organization's spending on the following products and applications in the next 12 months will compare with what was actually spent in the last 12 months?

N=239, line length indicates “We don’t spend anything on this”.

-30% -20% -10% 0 10% 20% 30% 40%

% of respondents

Source: AIIM

How do you think your organization's spending on the following products and applications in the next 12 months will compare with what was actually spent in the last 12 months?

46%

34%

31%

31%

30%

29%

25%

7%

6%

4%

2%

-6%

-13%

Workflow/BPM

Other mobile apps

OCR/ICR applications

Mobile capture apps

Invoice automation, AP/AR

Capture systems/servers

End-to-end mobile platforms…

Outsourcing

Portable scanners

MFP’s

Floor-standing mailroom…

Table-top production scanners

Desktop scanners N=239, line length indicates “We don’t spend anything on this”.

Focus on Software

The Two Sweet Spots for Solution Providers

Source: Geoffrey Moore

Date Company Price Capability

2010 Perceptive $280M ECM

2011 Pallas Athena $50M BPM/Doc Output Management

2012 BDGB Ent(inc Brainware)

$148M Intelligent data capture

ISYS Search $32M Enterprise search

Nolij Corp $32M Web-based imaging, workflow

2013 Acuo Tech $45M Medical DM

TwistageAccess VIA

$32M$32M

Rich mediaRetail DM

Saperion AG $72M ECM

PACSGEAR $54M Medical image mgmt, EHR

2014 Readsoft $251M Capture

Lexmark:

Organic Growth vs. Acquisitions

Business Value

80% People

15% Process

5% Technology

People-centric investments

• Improve employee engagement

• Identify better opportunities and

requirements

• Improve revenues and

productivity

Technology-centric investments

• Poor customer engagement

• Poor system implementations

• Poor utilization and ROI

Focus on People

Selling Capture Solutions

Source: Sirius Decisions

AIIM – Your Industry Partner

Executive Leadership Council – a think-tank for information management with CxOs from leading solution providers like Fujitsu, Oracle, IBM and Microsoft. The in-person meetings are hosted by futurist and IT Leadership Academy CEO Thornton May, and previous speakers include CIOs from Accenture, T-Mobile, Royal Caribbean Cruise line, Boeing, and MIT.

B2B Marketing services - content marketing and lead generation for leading solution providers like ABBYY, EMC, and HP. This includes weekly webinars with 500+ attendees, monthly research identifying market trends and opportunities, and annual in–person seminars across the US and UK.

Professional development - custom and standard training courses with more then 25,000+ students. We also develop custom courses for large companies like Chevron and HP. Another good example of this is Oracle - we developed all sales and professional services training for their first ECM solution in Europe.

THANK YOUAtle Skjekkeland, Chief Evangelist, AIIM

Email: [email protected]

Web: www.aiim.org

45Confidential

