Thursday, October 30, 2008

Kodak Q3 Report: Slower Than Expected

We blogged the other day about how the recession may or may not affect the document imaging industry. This morning, some hard data on the subject arrived in the form of Kodak reporting third quarter earnings.

Read the full conference call here.

Chairman and CEO Antonio Perez began by stating:

"Well, a lot has changed since we spoke during the second quarter earnings call. The growing economic crisis which started in the United States has now become global."

He continued:

"When we spoke in July...we were expecting our year-over-year digital revenue growth to be 8% in the second half. While we expect for the rest of this year to gain or maintain market share with our key product lines, as we just did in the third quarter, we are now forecasting the second half year-over-year digital revenues to decline 1 to 5%."

Full year earning projections were drastically lowered. Originally, the Rochester-based company was expecting to garner between $400 and $500 million.

Now, that number is $200 to $250 million.

A main culprit for this situation, Perez noted, was the inability of small to mid-sized business to secure short-term credit, such as are commonly used in the purchase of document imaging and scanning machines.

Still, the news for the industry was not all bad by any means. Scanner sales remained strong, giving industry boosters a reason to hope.

Tuesday, October 28, 2008

Document Imaging Research Resource

It's not easy to find good sources of information regarding document imaging. That's part of why we run this blog. But there are some good resources available, if you're doing research and trying to discover what's right for your business.

One of the better pages I've found is on Kodak's site, right here. This is a wealth of information and, while Kodak is definitely trying to sell you something, the information itself is quite valuable.

For example, you can see the major industry breakdown of common document imaging customers:

•Real estate offices
•Doctors’ offices
•Dentists’ offices
•Legal firms
•Charities
•Municipal and town offices
•Financial advisors
•Sales and services offices
•Branch office operations
•Auto dealerships
•Community banks
•Credit unions
•County Clerks

You can also get some handy tips for the actual process of document imaging and scanning. How to maintain image quality, for example.

If you want to delve a bit deeper into document scanning technology, check out this white paper. Detailed technical information like this is not easy to come by, and worth looking into if document imaging is going to be a long-term part of your business.

Meanwhile, think about how you can use document imaging technology to increase Corporate Accountability. If you look at the common customer list above, you'll notice that many of these industries deal with highly private and sensitive documents. Once those docs are inputted into the computer, it doesn't absolve the company from responsibility to handle them with care.

If you run a small or mid-sized business, this white paper is worth reading. It talks about how document imaging technology has made its way from only being used by huge corporations to being an inexpensive solution for any size business.

Kudos to Kodak for making these materials available. Although they are offered with a slant towards Kodak's products, that does not negate their usefulness to the potential customer.

Monday, October 27, 2008

Document Imaging Lowers Your Rent?

Maybe it's because I live in New York, but I think about a real estate a lot. Specifically about how dang expensive the stuff is. Prices per square foot and such.

Which brings us, albeit in a roundabout way, to the issue of filing cabinets.

The average filing cabinet is about five feet tall, two feet deep, and one foot wide. Office space in downtown Manhattan can go for upwards of $100 per square foot. So that means that each filing cabinet costs about $300 per month. And just sits there.

The problem is, filing cabinets travel in packs. If you've got one, you've probably got two, and if you've got two, you well might have ten. And if you've got ten, that's a lot of space in your office being taken up by inanimate objects.

That's room enough for another desk, another employee. Or perhaps you'll want to move to a smaller office, so as to pay less rent.

Document imaging is all about getting rid of filing cabinets. Keeping the files, but miniaturizing them into digitized bits and bytes. Over and above the "value-adds" of searchability and shareability, document imaging is the ultimate space-saver.

And sometimes, when you save space, you save money.

That's definitely true of New York.

Saturday, October 25, 2008

Document Imaging Solutions: In-House or Hosted?

When implementing a document imaging solution, one of the fundamental decisions is where to store the digitized documents. As we discuss so frequently, security and shareability should be in balance if document imaging solution is going to reach its full potential.

But this is not an easy balance to strike. Medical and legal offices are some of the prime users of digital imaging technologies, making privacy concerns especially acute.

For this reason, many businesses choose to host scanned documents on an in-house server/software configuration, such as Microsoft SharePoint. But Microsoft always has its detractors.

Fluid accessibility combined with low up-front cost is the primary promise of the "software as a service" (SaaS) crowd, led by Salesforce.com. They used to be called "Application Service Providers," or ASPs. Think of SaaS as sort of "renting" the software.

This is a good article to read if you want to get an overview of this topic.

Regardless of the vagaries of tech terminology, the idea of the SaaS crowd remains the same: the software (in this case, document imaging) is hosted on remote servers, and then beamed out over the Internet to the client. And you don't have to spend a lot up front to get the system up and running.

This model is now coming into the document imaging industry. Digitech Systems is one example of a company moving into this area, trying to sell small to mid-sized businesses on going paperless. Hyland Software is another one.

A hosted or "on demand" solution may be right for your business. But before committing, please make sure that you feel comfortable with the security procedures of the provider.

Friday, October 24, 2008

Document Imaging: Recession-Proof?

In honor of the recent financial calamities and in progress recession, let's talk for a second about how this turbulence may or may not affect the nascent document imaging industry. Corporations are tightening belts all across America and the world.

What can the document imaging industry do to keep growing?

1. Emphasize Cost Savings
-- Just because we're in a recession doesn't mean that companies don't want to grow. But they want to grow smart. They want to grow cheap. For document scanning and imaging, this can mean that they may want lower cost machines or service providers.

But it can also mean that they want to consolidate or centralize document management functions. For example, if a company has multiple offices, it may be willing to spend some money on a document scanning solution that enables sharing -- if other costs can thereby be eliminated, such as unnecessary faxing, copying, and filing.

The point is to address the need.

2. Emphasize Productivity Increases
-- The productivity of the American worker is the pride of this nation and the only reason our economy is not in worse shape than it is. Document scanning and imaging has become a fairly major contributor to this productivity.

This contribution must not only continue but increase. A document scanning sales pitch that convinces the business decision-maker that her staff is going to be able to concentrate on their jobs instead of tedious file-finding is convincing in this environment.

Talk about recession concerns and be ready to calculate ROI!

Challenge = Opportunity?

This recession challenge can most definitely be viewed as an opportunity for this industry. Document scanning and imaging can be a big part of cost-cutting and improving efficiency at companies struggling to maintain earnings power amid slowing sales.

If the document imaging industry does not prove, however, that it can help trim expenses while increasing productivity, the industry itself may fall victim to the cost-cutting trend.

Monday, October 20, 2008

Document Imaging How To Videos

Many people think of YouTube as a site to look at when you're bored at work and want to see something home-made and off-beat, such as people getting hit in the crotch with various objects. But YouTube also has an increasingly large business use: how to videos.

Document imaging and document scanning have benefited from this trend. One video maker, called ExpertVillage.com, has a variety of document scanning how to videos posted.

Here's one on how to scan a document on an all-in-one machine.

Here's another one on how to edit blurry digital images in Adobe Photoshop.

Here's one on how to crop and edit digital images.

Other companies post their document imaging sales pitch on YouTube, showing what their products look like and how they work. Watch this guy try to sell you on why every business should use a document scanning service.

Especially if you are a visual learner, these videos can be very helpful in learning what document imaging is good for and specifically how to do certain things. They always told you that YouTube would be more than a collection of videos of people getting hit in the crotch with various objects.

Now, there's proof.

Friday, October 17, 2008

When Document Imaging, Sharing Is Caring

We, like other people who talk about document imaging, talk a lot about how to not only reduce the amount of paper lying around the office, but make sure that going paperless increases the productivity of the organization that strives for it.

A major point of discussion in this area is how scanned documents are shared within the organization--or not shared, or partially shared, or whatnot. How to make appropriate decisions on that issue and then how to set up systems that work with those decisions. After all, the "new guy" doesn't need to be given instant access to all the company's sensitive documents.

Microsoft SharePoint is an interesting product in this respect. In typically "Microsoftean" fashion, SharePoint can do a huge number of things, but it's not easy to know what it should do for your company. Indeed, a visit to the SharePoint website can be headache-producing.

It's a product worth getting to know, though, because Microsoft has created a compelling technology which can revolutionize your company's ability to collaborate, search, and manage scanned documents. For example, SharePoint works with the other Microsoft programs such as PowerPoint, Excel, and Access.

Major corporations such as Monsanto are using this interopability to build complex systems that facilitate effective sharing of scanned documents across multiple platforms.

Some people have noted that SharePoint has not caught on yet as true business process changer, and this blog does not endorse or advertise SharePoint. However, looking at this high end product and thinking about its sharing capability can open your mind as to what you can do with scanned documents after they've been scanned.

For scanning is only the beginning of a document imaging journey.

Tuesday, October 14, 2008

Document Imaging Jargon -- Defined

It's tough to know what end is up when a salesperson gets to spouting jargon. The document imaging business sees a fair bit of this problem, with MFPs needing to comply with OpenText protocols which aren't necessarily copascetic to VIPs, etc., etc.

In other words, what?

MFP:
This is a big one. Multi-Function Printer is the formal definition, but these machines have outgrown the "printer" label. These machines do a lot more than print, and are the focal point of the entire modern document imaging business. They print, scan, fax, and photocopy -- but they also digitally store and transport imaged documents.

MFPs vary from the relatively simple and inexpensive to the big and pricey.

ADF:
Automatic Document Feeder. A feature included in most MFPs that allows users to place numerous papers into the document scanner rather than feeding each one in manually. Definitely a feature worth having if your scanner gets regular use.

FTP:
File Transfer Protocol. The common language used to move imaged documents around a network. A technical term that's worth getting to know.

WebDAV:
Another technical term that's worth getting to know. The common language within the network that aids file-sharing between multiple users and groups. Hugely important if imaged documents need to be worked on by different people working from different locations.

Also see:

SMB.

TWAIN.

ICC Profile.

At least a working familiarity with these terms makes you a formidable negotiating partner when it comes to buying an MFP with ADF and SMB, based on FTP.

If you know what I mean.

Monday, October 13, 2008

Document Imaging: Asking the Right Questions?

Before attempting to implement a new or improved document imaging system, it is a good idea to ask yourself--and your organization--some key questions. Here are a few of our favorite:

Do these documents need to be shared with the whole company, or only certain individuals?

Do the documents need to be secured, so that no one who is not authorized to access them will be able to?

How long do the documents need to be stored?

If documents are frequently transferred from one employee to another, how can the system be set up to take this into account?

If a disaster takes place, are the documents backed up in a secure location?

According to what criteria will the documents be "tagged"?

What do the employees think of the document imaging system? Do they find it easy to use?

Asking these questions, even if they can't all be answered at once, is a great start towards building or improving an effective document imaging system. When working with an outside contractor, ask the outside contractor to answer these questions--and then ask more.

A document imaging system is something that, if set up properly initially, really helps an organization. But if not, the system itself can become useless.

Thursday, October 9, 2008

Partner Praise For Document Imaging Clients

Document imaging, as with any business arrangement, requires the attention and effort of both the client and the provider to truly reach its full potential. In this spirit, document imaging company eCopy recently announced its 2008 Best Practices Awards.

The full list is worth a look, but for our purposes, let's just point out a few of the award winners and note why they won. Warning: this may give you some ideas.

The "Best Application Integration" award went to Chesapeake Energy Corporation, for innovating a document imaging solution for the company's more than 1,000 expense reports per month.

The "Best Productivity Improvement" prize went to Extendicare, a medical company that specializes in long-term care. Drowning in paperwork, Extendicare made the move to fully integrate document imaging software into its Oracle business applications for storage, filing, and indexing. The company estimates that these changes save $143,000 annually.

On a smaller scale, law firm Klarquist Sparkman, LLP was singled out because of a simple but important change: the firm began "tagging" scanned files at the time of scanning, rather than going back and having to manually open up each file and tag it then.

Once more, the vital nature of tagging and tagging properly cannot be overestimated when it comes to document scanning and imaging. Documents that are not properly tagged are not easily findable--defeating the whole purpose of document imaging itself.

Tuesday, October 7, 2008

Document Imaging Goes Green With Gusto

The idea of going paperless is about the most ecologically responsible act we can think of. Aside from its business benefits, it's a good thing to do for the planet (especially the trees).

However, not all document imaging companies are created equal when it comes to going green. A large, average, multi-function copier is among the most energy intensive of all office machines. And a lot of document imaging companies use large, average, multi-function copiers.

Other document imaging companies are making green an explicit focus, like FileVision, out in San Francisco. They are on a green kick for sure. Interestingly, FileVision sees the Internet as a main tool for going green in the document imaging biz. After all, connectivity allows the transfer of documents, not just their storage. This is a big deal, no doubt.

At the same time, involving the Internet in your document scanning and imaging strategy entails a rethinking of security issues. Password protect documents that need to stay private even as they're in transit. It's a must.

Monday, October 6, 2008

Document Imaging Entrepreneur: David Hunt

Check out this story out of Memphis, about an entrepreneur named David Hunt who recently entered the document imaging business. Mr. Hunt is a great example of the American dream in action, still alive and kicking.

While working two jobs early in his career, Hunt saved up $100,000 to start his own business, H&H Services. The venture started with only Hunt and his wife, but grew consistently and grossed $6.5 million in revenues last year. With 35 employees, H&H owns three Seattle's Best Coffee shops, a Perkins restaurant, and two Hampton Hotels.

Now Hunt is entering the document imaging business. His first two big accounts are St. Jude Children's Research Hospital and the Regional Medical Center at Memphis.

The reason we mention this story is not only to make a point about American entrepreneurship, but also to make a point about document imaging. Or, actually, two points about document imaging.

The first is that document imaging is a service more than it is a product. This is why we predict that H&H will do well in this field. Serving customers in a coffee shop is not all that different than serving customers in the office; it's all about customer service, in both places.

The second point is that document imaging is an easy sell. Lower costs, greater efficiency. That's it. That's the whole sell. Mr. Hunt said it well: "There's a lot of opportunity here." Because everybody wants lower costs, greater efficiency.

Good luck to David Hunt. And, if you are in the market for document imaging or document scanning services, consider using a service that sees its business as a service rather than a product, and look for lower costs and greater efficiency.

Friday, October 3, 2008

Document Scanning: Easy But Not Simple

People who haven't done it may not understand exactly how easy it is to scan a paper document to a PDF file. Check out this video from the TigerDirect blog here to see a demonstration of exactly how very easy it can be. The guy even has an Australian accent.

However, easy does not mean simple when it comes to document imaging, and just because you can scan a document to PDF does not mean that you are exploiting the full potential of "going paperless." Indeed, an Adobe PDF file is a powerful thing these days.

Check out Adobe's description of how powerful here. But don't take their word for it. Check out what other companies are building on top of the PDF paradigm. And remember, Adobe has been working on PDF technology for upwards of 15 years now.

For example, let's think for a second about search. The PDF file format has been "Google-ized" to a quite significant degree. But many people do not use this function. In essence, then, documents are scanned and the paper thrown away, but you still can't find what you're looking for when you're looking for it. Needless to say, this can be frustrating.

Watch this tutorial to see how you can avoid this problem by making your PDF files searchable.

However, within that larger idea of making scanned document searchable, there are a variety of technical concerns which can either help or hinder the effectiveness of the search function with regard to your documents in particular. Effective "tagging" of documents, for example, can mean the difference between good search and bad search. Read about tagging here.

Businesspeople looking to fully exploit the power of PDF may want to consider working with an expert to build an effective system.



Wednesday, October 1, 2008

Do You Need a New Scanner?

Your scanner broke down. But the fact is, you weren't using it that much to begin with. So now you need to decide whether buying a new scanner is worth it.

On the one hand, money is tight. On the other, there are those times you really need a scanner, and you'd rather buy a good one that will last.

If you do find yourself in the market for a new scanner, check out this review. There are some inexpensive scanners out that are pretty solid performers.

However, you also should consider the good old "user error" issue. Whether you operate the scanner or someone else in your office gets the job, they need patience to avoid incidents like this. And they also need some level of training on the machine.

A third option is to contract the document imaging work out to a third-party. Pricing depends on the job, of course, but some services charge as little as 8 cents per page for scans to PDF. Let's say you scan 700 pages. That'd cost you $56 -- with no hassle.

Outsourcing to a document imaging/scanning service may be the right choice for you.

A little tip: if you do decide to outsource some or all of your document imaging needs, consider (tedious as it may be) going through the papers and taking out all the staples and folds ahead of time. Any time someone has to work on a page by page basis, they're going to charge more.

You'd do the same, I bet.
 
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