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1. Atle Skjekkeland, Chief Evangelist, AIIM
THE STATE OF THE CAPTURE INDUSTRY
BUSINESS DRIVERS, PREFERRED
APPROACHES, OPPORTUNITIES AND
CHALLENGES
© Copyright 2013 ABBYY

2. Agenda
● The Era of Information Chaos
● Capture Opportunities
● Capture Challenges
● Mobile Capture
● Selling Capture Solutions
2

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

4. From Information Chaos to Information Opportunities
THE ERA OF INFORMATION CHAOS

5. INFORMATION IS NOW EVERYWHERE
90% of information
was created in the
last two years.
80% of information
is un-structured

6. Disrupter #1 - Cloud and Mobile
Creating an expectation of anywhere, anytime access.
• 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

7. Disrupter #2 - Consumerization
Transforming what users expect from applications
and how we deliver them.
• 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

8. Disrupter #3 - Changing Nature of Work
Forcing organizations to think flat and agile, not
hierarchical and slow.
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/

9. Implication
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.”

10. From Information Chaos to Information Opportunities
CAPTURE OPPORTUNITIES
Download the full report from
http://info.aiim.org/paper-wars

11. A Need for Digital Transformation
Corporations need a digital transformation to
improve productivity
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.
Source: http://www.frbsf.org/economic-research/publications/working-papers/2014/wp2014-15.pdf

12. Paper Hinders Progress
68% 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
Download the full report from
http://info.aiim.org/paper-wars

13. 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

14. Drivers for Scanning and Capture
What would you say are the three biggest drivers for scanning and data capture
in your organization? (Max THREE)
0% 10% 20% 30% 40% 50% 60% 70%
N=327,
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

15. 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

16. 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

17. 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

18. Improve Compliance
• Reduce legal costs, fines and damages by 25% (in average) by applying
best practice procedures to records management, security and e-
Discovery (source: AIIM)
Subject to
Legal Hold,
2%
Has
Business
Utility, 25%
Regulatory
Record
Keeping,
5%
Everything
Else, 68%
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:

19. ROI in the Real World
Download the full report from
http://info.aiim.org/paper-wars

20. Point of Capture
9% 9% 18% 19% 45%
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
Distributed
multi-channel
capture
Source: AIIM

21. Digital Mailroom/Multi-Channel
Which aspects of digital mailrooms are proving the most beneficial? (Max TWO)
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
N=65, digital mailroom users
Faster turnaround times to customers
More efficient/higher quality data capture for
downstream processes
Fewer operational staff physically handling mail
Reduced storage and processing space for mail
Immediate access to latest customer
correspondence
Remote accessibility for mobile/telework/outsource
staff
Fewer lost/delayed mail items
Environmental benefits – fuel, photocopies, etc.
Outsource of mail-handling operations
Source: AIIM

22. Outsourced Services
What use do you make of outsourced document services and what are your
plans?
% of organizations
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
40% 30% 20% 10% 0% 20% 30% 40% 50%
N=263. Line length indicates Don’t Use
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
Source: AIIM

23. 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

24. From Information Chaos to Information Opportunities
CAPTURE CHALLENGES
Download the full report from
http://info.aiim.org/paper-wars

25. Why So Much Paper?
Why do you think there is still paper in so many of your business
processes? (Max THREE)
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
N=325,
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 suitable
scanning/capture/workflow
Source: AIIM

26. 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?
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.
N=408, Normalized for not
applicable and not paper-free
Excellent Good Average Poor
Source: AIIM

27. 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

28. Personal Resort to Paper
For which of the following purposes do you personally resort to printing paper
copies?
0% 10% 20% 30% 40% 50% 60% 70%
N=364,
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

29. From Information Chaos to Information Opportunities
MOBILE CAPTURE
Download the full report from
http://info.aiim.org/paper-wars

30. Mobile Evolution
1960 1970 1980 1990 2000 2010
Console Terminals PC Laptop Notebook
Source: George Parapadakis, IBM
Smart
Phablet
Direct
Connection
RS-232 Ethernet
Dial-Up
Modem
Broadband
3G / 4G
WiFi / Fibre
IT Only Specialist
Office
Worker
Mobile
Workforce
Any
Employee
Customers
Data Room
Location
Based
Company
Wide
Customer
Site
Home
Working
Anywhere
Device
Connectivity
User
Location
Mobility (Distance from Source)
Timeshare Multi-User
Client-
Server
Interface Web Apps

31. Mobile Capture - places
Are forms and documents currently captured in any of the following places
for use in your key business processes?
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
N=162, excl. N/A
Source: AIIM

32. Mobile Capture - status
9% 25% 34% 33%
Required
option for all
processes
Keen to
exploit
Recognize
importance,
but still not
planning
Not looking
to mobile
Source: AIIM

33. Mobile Capture - content
Do employees in your business unit use portable devices (portable
scanners, smartphones, tablets) for any of the following?
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, license
plates)
Capture paper forms with OCR
Forms app (direct data input – digital clipboard)
Tablet and stylus for signatures
None of these
N=162, excl. N/A
Source: AIIM

34. Mobile Capture - benefits
What have been the two biggest benefits of your mobile/portable capture
projects? (Max TWO)
0% 10% 20% 30% 40% 50% 60%
N=67 with mobile
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

35. The Internet of Things

36. From Information Chaos to Information Opportunities
SELLING CAPTURE SOLUTIONS
Download the full report from
http://info.aiim.org/paper-wars

37. 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.

38. 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?
% of respondents
0% 20% 40% 60% 80% 100% 120% 140%
-30% --10% 0 10% 20% 30% 40%
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
N=239, line length indicates “We don’t
spend anything on this”.
Source: AIIM

39. 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?
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”.

40. The Two Sweet Spots for
Solution Providers
Source: Geoffrey Moore

41. Organic Growth vs. Acquisitions
Lexmark:
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
Twistage
Access VIA
$32M
$32M
Rich media
Retail DM
Saperion AG $72M ECM
PACSGEAR $54M Medical image mgmt, EHR
2014 Readsoft $251M Capture

42. 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

43. Selling Capture Solutions
Source: Sirius Decisions

44. 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.

45. Atle Skjekkeland, Chief Evangelist, AIIM
THANK YOU
Email: askjekkeland@aiim.org
Web: www.aiim.org
Download the full report from
http://info.aiim.org/paper-wars
Confidential 45