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<p>February 1, 2002 THIS JUST IN! 34 PPM DUPLEX COLOR FOR $5,500 Fujitsu has raised the bar in the departmental and low-volume production scanner spaces with the recent release of its fi- 4340C model. Designed as a replacement for the M3093DG, which has been on the market since 1996 and will be phased out this spring, the fi-4340C is rated at 40 ppm in bitonal mode at 200 dpi and 34 ppm in color mode at 150 dpi. At slower speeds it offers color resolution of up to 600 dpi. According to Scott Francis, senior product manager for the Imaging Products Group of Fujitsu Computer Products of America, the fi- 4340C is backwards compatible with the M3093DG. “We are offering users an upgrade that features slightly higher speeds and duplex color scanning capabilities for only a slight price increase,” he told DIR. The fi-4340C lists for $5,495, $500 more than the M3093DG. This is slightly less than the Kodak 1500 low-volume production model, which scans a bit faster at 50 ppm bitonal, but does not have color capabilities. Kodak and Canon both have lower-priced departmental color models that are rated slower than the fi- 4340C. For more information: Fujitsu Computer Products of America, San Jose, CA, PH (408) 432-6333. **** ReadSoft U.S. president Bob Fresneda recently told DIR that the forms processing software vendor will be consolidating its U.S. operations in New Orleans. He estimated this will involve some 25 sales, marketing, and development professionals. For more information: ReadSoft, U.S. operations, Metairie, LA, PH (504) 888-2050. DIR Is Sale Of Show Just A Quick Fix For AIIM? Incoming chair discusses the future of our industry’s foremost trade organization. AIIM is not going to go broke for at least a few more years. This is the net result of the recent sale of its trade show to Advanstar [see DIR 1/18/02]. AIIM, which was in real danger of becoming insolvent in the near future due to dwindling reserves, consistently unprofitable operations, and the recent sour turn of the stock market, has bought some time. However, the question is, how much? If AIIM continues to operate at a loss, how long can the bounty from the sale of the show support the organization? “Nobody is expecting this windfall of cash to allow the association to continue to incur losses,” explained Reynolds Bish, the president and CEO of Captiva Software. Bish will be appointed chair of AIIM at this year’s show, which runs from March 5-8 at the Moscone Center in San Francisco. “We expect to incur losses in 2002 because we will be in transition. However, consistent with the plans of the Renaissance Committee, AIIM’s plan is to minimize losses this year and reach a break-even operating level in 2003.” The question remains, however, without the show— which was by far AIIM’s most profitable venture—how is the organization going to accomplish that? The first and most obvious way is by cutting costs, and AIIM cut those significantly last summer when it reduced its staff by one- third [see DIR 7/20/01]. The sale of the show also involved the transfer to Advanstar of six AIIM employees. “Yes, the show was a cash cow,” said Bish. “But it also consumed a tremendous amount of time, attention, and staff. We are now much better positioned to serve our members and develop a revenue stream that is likely to get us to breakeven.” 2840 West 21st Street Erie, PA 16506 PH (814) 838-0025 FX (814) 836-9605 www.documentimagingreport.com Document Imaging Report Business Trends on Converting Paper Documents to Electronic Format Reynolds Bish, president and CEO, Captiva Software, incoming AIIM chair. 2 Document Imaging Report February 1, 2002 Notice: No part of this publication may be reproduced or transmitted by any means, electronic or mechanical, without written permission of Corry Publishing, Inc., Erie, PA, USA. According to Bish’s spin, in addition to draining resources, the show was actually taking AIIM further and further away from its mission. “The show actually fostered a schizophrenia within the organization,” he said. “AIIM’s membership numbers are much more tilted toward users than vendors. However, as the show grew and such a large portion of the organization’s revenue was generated by the vendors that participated in the show, it created a conflict of interests. AIIM, as a nonprofit organization, is supposed to serve its members.” So, is it possible to properly serve AIIM’s 6,000 individual members and be profitable at the same time? “We are going to focus primarily on what our members are willing to pay for, and that is education and information,” said Bish. In our conversation with John Mancini, president of AIIM, immediately following the announcement of the sale of the show, he provided the following insight: “One of the weaknesses in the ECM [enterprise content management] market is that there is a real grass-roots need for education and evangelism. We need to educate potential users about the applicability of our technology to their business problems and get them interested in exploring solutions. My focus will be on making AIIM a more effective advocate for the industry.” Mancini indicated that contrary to the messages AIIM’s chapters may have received when the organization eliminated its chapter rebate program last year, the organization plans to work closely with them to spread the ECM message at the local level. “We are looking at our Road Show model, in addition to some of the successful events put on by our chapters,” said Mancini. “Drawing from them, we are determining the best way to build successful, locally based, education programs. We also recently launched a chapter marketing partnership program, which is being headed by Jessica Barrett, our director, chapter relations.” The Road Shows Mancini was referring to are the former Wood Seminar Series that AIIM acquired in 2000. AIIM currently sponsors 16 of these events per year in various cities across the country. In addition to educational seminars, Bish indicated that AIIM was looking at sponsoring training and certification programs, with CompTIA’s CDIA DIR is the leading executive report on managing documents for e-business. Areas we cover include: 1. Scanning 2. Forms Processing/OCR/ICR 3. Integrated Document Management 4. Content Management/XML 5. Document Output 6. Storage 7. E-Commerce DIR brings you the inside story behind the deals and decisions that affect your business. Vol. 12, No. 3 Editor: Ralph Gammon PH (814) 838-0025, Ext. 209 FX (814) 836-9605 ralphg@corrypub.com Newsletter Circulation and Sales: Martin Zapolski PH (814) 838-0025, Ext. 266 FX (814) 835-0441 DIR@corrypub.com DIR is published 24x per year, on the 1st & 3rd Fridays of the month, by: Corry Publishing, Inc. 2840 West 21st Street Erie, PA 16506 PH (814) 838-0025 Web: www.documentimagingreport.com Copyright © 2002 by Corry Publishing, Inc. Federal copyright law prohibits unauthorized reproduction by any means including photocopying or facsimile distribution of this copyrighted newsletter. Such copyright infringement is subject to fines of up to $25,000. Because subscriptions are our main source of income, newsletter publishers take copyright violations seriously. Some publishers have prosecuted and won enormous settlements for infringement. To encourage you to adhere to this law, we make multiple-copy subscriptions available at a substantially reduced price. Subscriptions: $597 per year (outside North America add $33 postage) Document Imaging Report Business Trends On Converting Paper Documents To Electronic Format “We are looking at our Road Show model, in addition to some of the successful events put on by our chapters. Drawing from them, we are determining the best way to build successful, locally based, education programs.” John Mancini, AIIM president February 1, 2002 Document Imaging Report 3 Notice: No part of this publication may be reproduced or transmitted by any means, electronic or mechanical, without written permission of Corry Publishing, Inc., Erie, PA, USA. program being an example of the type of program AIIM would consider. AIIM also continues to publish e-doc magazine and was recently looking into acquiring other publications as well. As for the annual show, both Bish and Mancini agree that it is in better hands with Advanstar. “You now have an organization running the show whose mission in life is to run trade shows,” said Bish. “They have to do a better job than AIIM was doing. And they will be able to make a larger investment in marketing.” The price Advanstar paid has yet to be revealed. However, we heard a rumor that three years ago AIIM was offered $25 million. “I don’t think it’s fair to say that there have been offers made before,” defended Bish. “From what I understand there’ve been discussions for years about whether or not AIIM should sell the show.” Bish indicated that the value of the show may have dropped somewhat in the past couple of years. “There is a group of members that views the selling of the show as a very sad day,” he said. “Their thought is, ‘why in the world would you ever sell your cash cow, and if you were going to sell it, why didn’t you sell it years ago when it was maybe worth more money?’ The answer to the second part of that is that hindsight is 20/20 and none of us is clairvoyant.” As for the first part, Bish said that AIIM was uncomfortable being in a situation where one bad show could have bankrupted the organization. “If the show is our primary source of profits and financial resources, what happens if one year the show is not good?” asked Bish. “Before we sold it, our reserves were depleted so badly that we questioned whether a bad show would be a fatal blow to the organization. The possibility of that has been driven home by what has happened to trade shows in general since Sept. 11.” Bish confirmed the assessment that former AIIM VP of Sales and Marketing Brian Randall (now with Advanstar) gave DIR last month in regards to this year’s show. “Certainly it’s not done until it’s done in March, but if you look at the amount of contracted space and the conference registration to date, things are tracking about the same as last year, as opposed to the disaster scenario that some other trade shows have encountered. This would be pretty consistent with what we saw in 2001; we experienced only a slight drop-off from 2000, but some technology trade shows were down 30% to 40%. However, there was no guarantee in the future that the AIIM show wouldn’t experience a sharp revenue decline.” This year is clearly shaping up as a watershed year for AIIM. Not only will the organization no longer have the guaranteed revenue generated by its show, it also no longer has the option of selling the show for a quick cash fix. Bish, who spent most of 2001 leading the Renaissance committee’s efforts to reshape AIIM, has his work cut out for him. “Sometimes I feel like I’ve already done my job as chairman,” he laughed. “Seriously, there are two goals that we have to remain focused on. The first involves our financials. We need to minimize our losses this year and develop a plan to get us to breakeven or better in 2003 and beyond. The second thing we need to do is finalize our post-show vision of AIIM, communicate it to our membership, and start executing on it.” For more information: AIIM, Silver Spring, MD, PH (301) 587-8202, FX (301) 587 2711; Captiva Software, San Diego, PH (858) 320-1001, FX (858) 320-1010, e-mail: bish@captivacorp.com. DIR Unleashing The X-Factor Capture software vendors descend upon the digital copier market. Digital copiers have become the x-factor in our industry. In other words, if we can figure out a way to successfully leverage them as on-ramps for document imaging, it could increase the size of our industry x-amount of times. After all, there are at least 10 times more digital copiers sold each year than production document scanners. Traditionally, however, despite their reported scan capabilities, digital copiers have been used mainly for copying, with print functionality gaining the second most attention. According to Les Anderson, director of the Network Document Solutions Group at analyst firm CAP Ventures, there are only three digital copier vendors with a significant number of scanning installs. Those are Canon, Ricoh, and Xerox. And among those three, Anderson estimates the adoption rate of scanning by new customers is between 10% and 15%. “If you buy the argument from the MFP (multi- functional peripheral) manufacturers, digital copiers have had scanning capabilities for a long time,” observed Anderson, “However, trying to make it work has been another story. For scanning to be adopted by digital copier users, it has to be as easy to use as copying.” And that’s where the opportunity lies for document image capture software vendors. For years, their 4 Document Imaging Report February 1, 2002 Notice: No part of this publication may be reproduced or transmitted by any means, electronic or mechanical, without written permission of Corry Publishing, Inc., Erie, PA, USA. specialty has been making it easier for production imaging users to connect scanners with document management applications. In recent months, however, there has been a series of capture announcements related to digital copiers: Kofax, a traditional leader in the production image capture space, has thrown its hat into the digital copier space with its new Ricochet product line. eCopy, a Canon partner that has traditionally specialized in scan-to-fax and scan-to-e-mail applications, has introduced a product line for scanning to document repositories. ImageTag, a vendor with some unique, patented document input methodology aimed at office workers, has announced it is looking for partners to leverage its platform. Following is a deeper look at the details of each of these company’s strategies and expectations. We’ve also included some analyst comments: Taking The Headache Out Of Imaging ImageTag was founded by Steve Irons, a former reseller of both IBM and FileNET imaging systems. “In the mid-1990s, when I was selling imaging systems, I watched word processing and e-mail became popular mainstream applications,” Irons told DIR. “People in the imaging industry wondered why our technology wasn’t catching on the same way. The fact is that installing document imaging systems has always been both change-intensive and costly. “Sure, there are integrators who do a good job at it, but it’s still integration. You would never think of installing word processing or e-mail as integration. We used to laugh and say that with imaging we were merely replacing migraines with headaches.” With ImageTag, Irons set out to make imaging simpler. He studied the way that office workers interacted with paper and came up with an imaging process that leverages bar-coded Post-it notes to automatically index documents in an imaging repository. “If you show our system to someone that has no preconceived notions about how imaging should be done, they can’t imagine you would do it another way,” said Irons. A complete ImageTag system starts at $16,000 for a five-user license, installation, and a year of support. “When I was with FileNET, if an accounts payable system didn’t process more than 1,000 invoices per day, it wasn’t a prospect,” he said. “However for every business that size, there are 10,000 with 20 or 200 invoices per day that have the same problems.” In two years of selling its software, ImageTag has approximately 40 installations. Irons said the company has been successful in the same industries that most imaging vendors sell to—government, insurance, healthcare, education, etc. ImageTag has also had some success serving as a capture front end for document management systems from vendors like Open Text. Along these lines, ImageTag recently introduced its Paper Gateway platform, which it is advertising as “middleware that connects paper to virtually any business application.” ImageTag is currently looking for ISV partners interested in leveraging Paper Gateway. Because ImageTag’s methodology is targeted at making imaging accessible to the average office worker, the company originally thought digital copiers would be the ideal on-ramp. According to Irons, however, adoption of scanning in digital copiers has been slower than he expected. “Three years ago, it really looked like the digital copier market was getting into the solutions business,” he told DIR. “However, today it is still wrestling with the first part of that equation—print management. Scanning will be addressed after the printing issues are solved.” Irons remains optimistic that as digital copiers are adopted for scanning and as more people are introduced to ImageTag’s technology, his company’s sales will show a hockey stick growth curve. “We are still a very young company,” he said. “This year we are focusing on getting our OEM sales channels in place.” When Will Digital Copier Users Adopt Scanning? CAP Ventures’ Anderson agreed with Irons that printing applications have traditionally been a higher priority for digital copier vendors than scanning. “Digital copier vendors took a look at HP’s printing revenue and said, ‘Wow!’ They can’t look at scanning, and see a $22 billion market leader. “The incentive for the digital copier dealers to sell imaging has also been questionable,” continued Anderson. “The commission for a couple thousand dollar add-on is not worth it, if it involves getting into a new area and potentially screwing up a formula the salespeople know works. One end user even told me he had to send a salesperson back to the dealer to find out about scanning options. The end user knew more about the vendor’s scanning capabilities than the salesperson did.” Anderson indicated, however, that attitudes about scanning in the digital copier market are changing. February 1, 2002 Document Imaging Report 5 Notice: No part of this publication may be reproduced or transmitted by any means, electronic or mechanical, without written permission of Corry Publishing, Inc., Erie, PA, USA. “Vendors have been promising to deliver solutions with their digital copiers for several years, and scanning is one way to do that,” he said. “A good scanning solution is a great way to differentiate their products.” Anderson added that as more vendors introduce better scanning offerings, the adoption rate could rise to as high as 25% to 30% in 2002. “Another trend we’ve seen is that after end users start using their digital copiers to scan for one purpose, they begin to find more and more ways they can leverage it,” he said. From Fax Replacement To DM Repository On-Ramp This increase in the number of uses for scanning would be consistent with eCopy’s plan. With eCopy’s help, Canon has arguably become the most successful digital copier vendor at selling scanning. “Canon has spent the last three years training its salespeople on eCopy’s software,” observed Anderson. “So, scanning is not brand new to them. Canon has told me it is seeing approximately a 20% adoption rate of scanning in its ImageRunner line.” As we mentioned, most of eCopy’s success so far has been in the scan-to-email or scan-to- fax market. The cost justification proposition has been serving as a fax replacement. eCopy’s latest release is its Connector line, which will serve as a gateway to document management repositories. eCopy introduced its first Connector product, Domino.Doc Connector, at last week’s Lotusphere event in Orlando, FL. “Because we’ve historically supported the Notes e- mail platform, we’ve been part of the Lotus development team since 1993,” explained Ed Schmid, president and CEO of eCopy. “We’ve been hearing from customers who are looking for ways to leverage their digital copiers to get documents into their Domino.doc repositories and collaborative applications.” In addition to scanning capabilities, Domino.doc Connector also offers image viewing and markup features that are not included in Domino.doc. “Lotus claims to have between 5 million and 10 million installed seats of Domino.doc, which outstrips their nearest competitor two to three times,” said Schmid. At Lotusphere, eCopy was set to show Connector to several of Lotus’ leading resellers. Schmid estimated that overall Lotus has between 300 and 400 resellers, (including IKON, which is also a large Canon dealer). “Traditionally our products have been sold through the Canon channel,” he explained. “However, the Connector series has enough complexity and requires enough professional services, that it makes sense to offer it through more traditional document imaging channels.” Canon dealers that do not handle integration will be compensated for passing leads on to qualified Lotus integrators. A single copy of Domino.doc Connector lists at $5,000 with additional seats available for $2,000 each. Domino.doc Connector is scheduled to ship this month, and eCopy plans to introduce two more Connector products this year. In addition to traditional imaging repositories, eCopy is also looking at developing Connectors for applications like CRM. An Old Dog Learning New Tricks For its plan to work, eCopy will have to successfully integrate its Connector software with back-end repositories and also recruit resellers. eCopy could learn learn a lot about these matters from Kofax. Kofax currently has one of the document imaging industry’s largest reseller channels and boasts that its Ascent Capture software is integrated with over 80 back ends. What Kofax doesn’t have, that eCopy does, is penetration in the digital copier space. That is something Kofax is attempting to change. Kofax introduced its Ricochet software line late last year. Ricochet is designed to leverage digital copiers as input devices for Ascent Capture [see DIR 12/7/01]. “Ricochet enables knowledge workers to input documents into the Ascent Capture workflow,” Mike Morper, Kofax’ senior product manager for Ricochet, told DIR. “Historically, all scanning has been done in the back office. Ricochet enables businesses to enter their documents into their capture workflow sooner.” Ricochet requires an installation of Ascent Capture 5 or higher, so it is still a part of a production imaging application. However, this is not necessarily a bad thing, as this is where document imaging has proven successful in the past. Ricochet provides a lightweight way for users to integrate digital copiers into their capture workflow. “In some situations, our customers told us that installing our Internet module was like killing flies with a sledgehammer,” said Morper. “Sure, it was great for their remote offices that had 5,000 Ed Schmid, president and CEO, eCopy. Kodak Offers Painkillers To Law Service Customers Kodak is doing its part to make the Law Cypress situation a little less ugly. When our industry’s largest distributor closed its doors unexpectedly this past December, a lot of people got hurt. In addition to Law’s employees and vendors whose products were in Law’s inventory, Law had a number of outstanding service contracts that have gone unfulfilled. As Law was an exclusive reseller of Kodak service, many called Kodak Document Imaging (DI) looking for answers. “We have been burned greatly by the Law situation ourselves,” Joe Harrigan, channel service sales manager for DI, told DIR at the recent Kodak Breakaway Conference. “But we also realized we needed to step up and help the situation any way that we could.” Harrigan estimated that Law has some 200 outstanding service contracts—60% of which were signed with resellers and 40% of which were signed with end users. “At least one of our channel partners was nearly forced out of business because of this,” he said. Because Law was negligent in its payments to Kodak, Harrigan indicated that it was not financially feasible for DI to just step in and cover the Law service agreements. Kodak has, however, come up with three options for end users and VARs who have been left in the lurch by Law. These offers will be available until Feb. 28 and require that Kodak be faxed a copy of the customer’s agreement with Law. The options include: three free months of service with a purchase of a year-long service agreement from Kodak a parts/labor split where the user pays for any parts required while Kodak assumes the labor costs a remaining term discount whereby Kodak offers the customer a service agreement at a 20% to 25% discount for the amount of time remaining on the customer’s agreement with Law. Harrigan said these options are available either 6 Document Imaging Report February 1, 2002 Notice: No part of this publication may be reproduced or transmitted by any means, electronic or mechanical, without written permission of Corry Publishing, Inc., Erie, PA, USA. Joe Harrigan, channel service sales manager, Kodak Document Imaging. documents per day to scan. But it was overkill for their offices that had only five scans per day.” Kofax has actually announced two different Ricochet products. The first is a free version called Ricochet Coversheet. It can be downloaded from Kofax’ Web site. A Coversheet user enters indexing information into a template that creates a bar coded cover page, which is scanned ahead of the documents being captured. According to Morper, this process is based on the process used to create a fax coversheet. In March, Kofax is scheduled to ship Ricochet Capture, which Morper said offers three advantages over Coversheet: The ability to see documents after they’ve been scanned. (A Capture user can scan an image to their desktop and enter the indexing information from the image. This gives the user a chance to preview their images before submitting them to Ascent Capture.) The ability to add other electronic files to the image file before releasing them to Ascent Capture. Automatic notification that a document has been successfully delivered to Ascent Capture. Capture is also administered through the user’s server. “This means that if the indexing requirements for your document management system change, the system administrator just needs to adjust his controls and the user’s Capture system will be updated too,” said Morper. Capture’s list price will start at $15,000 for a license to scan up to 20,000 images per month. A million image per month license will list for $350,000. Morper said that Ricochet is being introduced into Kofax’ current reseller channel. Kofax is also in the process of negotiating partnerships with digital copier vendors who will be offered incentives to engage Kofax partners when Ascent Capture and Ricochet opportunities are discovered. **** So, the x-factor may finally be upon us. For several years, DIR has been preaching the potential of digital copiers in the document imaging space. With capture software vendors acting as the agents, it seems the two spaces are now on a collision course. We can only hope the fallout will prove prosperous. For more information: ImageTag, Chandler, AZ, PH (480) 753-9300, FX (480) 753-9400; eCopy, Nashua, NH, PH (603) 881-4450; Kofax, Irvine, CA, PH (949) 727-1733, FX (949) 727-3144; CAP Ventures, Norwell, MA, PH (973) 857-1891. DIR Mike Morper, senior product manager, Kofax Ricochet Capture. No Scanner Launch Planned For AIIM 2002 We also learned that for the first time in several years, Kodak is not planning a major scanning announcement for the AIIM exhibition—set this year to run March 6-8 at the Moscone Center in San Francisco. The company seems to be catching its breath after launching both a new high-volume line and a departmental/workgroup line within the past year. We also understand that Kodak’s senior executive team will not attend AIIM, partially because the event is being held so far from Kodak’s Rochester headquarters. One of the themes of Kodak’s recent launches has been color. One Kodak executive made this observation regarding our industry’s slower-than- expected embrace of color technology. “The future of scanning is color,” he said. “We felt that launching color products now would separate the men from the boys, so to speak. The smaller vendors just would not have the resources to develop a color line and as a result would be left behind.” When asked if Bell & Howell was the intended butt of this plan, the executive refused further comment. Kodak CTO: Hardware JPEG 2000 At Least A Year Off Regarding color, Kodak DI CTO and Director of Product Development Pete Rudak said the company plans to add some sort of color segmentation technology to its scanner line within the next few years. “Right now we see JPEG 2000 as the format the industry will adopt,” he said. Kodak is currently looking at both the wavelet technology behind the JPEG 2000 format, and the document imaging specific segmentation technology included in Part 6 of the standard [see DIR 10/19/01]. “One problem right now is that it takes a minimum of 10 times the amount of time to compress a wavelet image as it does a regular JPEG image,” said Rudak. “I don’t expect there will be wavelet compression chips available for scanners until 2003, and the earliest you’ll see a segmentation chip is 2004.” For more information: e-mail: peter.rudak@kodak.com Kodak’s Vested Interest In Keeping Microfilm Alive In addition to its cutting edge development in scanning technology, Kodak also continues to push its microfilm product line—and with good reason. February 1, 2002 Document Imaging Report 7 Notice: No part of this publication may be reproduced or transmitted by any means, electronic or mechanical, without written permission of Corry Publishing, Inc., Erie, PA, USA. through Kodak or another one of its distributor partners including Tech Data, Promark, and NewWave. A hotline number has been set up to cover Service inquiries: (800) 225-6532, x58. To guard against another distributor default in the future, Harrigan said Kodak is considering instituting a registration process where the buyer of a service contract is notified when its reseller has paid Kodak for its service agreement. For more information: Kodak Document Imaging, Service business unit, PH (215) 257-7745, e-mail: joseph.harrigan@kodak.com. Kodak DI Introduces New Chief This year’s DI Breakaway Conference was held in Orlando, FL, at the Rosen Center complex. It was attended by some 400 North American Kodak partners and featured an ISV trade show with 38 exhibitors. It also served as an introduction for Carl Marchetto as the president of Kodak’s new Commercial Imaging Group, of which Document Imaging is now a part [see DIR 1/18/02]. Marchetto has a background in aerospace engineering. He had been overseeing DI for only a couple of weeks when we met him. He came across as an intense and high-energy individual. We’ll admit though he made us a bit nervous when he spoke of DI’s potential for providing more complete solutions. Carl, we’ll assume you’ll come to the same conclusion yourself when you dig a little deeper, but Kodak has failed more than once in its attempts to provide complete document imaging solutions. The highest profile and most recent mistake was the acquisition of the software division of Wang Laboratories, which eventually became Eastman Software [see DIR 9/15/00]. Kodak Document Imaging has spent the last few years streamlining itself into a successful component provider to resellers who are the lifeblood of the document imaging industry. Document imaging may have other applications inside Kodak corporate. However, when it comes to total solutions in our industry, there are plenty of savvy ISVs and systems integrators who have proven much nimbler than scanner manufacturers at providing total solutions. Carl Marchetto, president, Kodak’s Commercial Imaging Group. 8 Document Imaging Report February 1, 2002 Notice: No part of this publication may be reproduced or transmitted by any means, electronic or mechanical, without written permission of Corry Publishing, Inc., Erie, PA, USA. 2840 West 21st Street Erie, PA 16506 Phone (814) 838-0025 Fax (814) 836-9605 http://www.corrypub.com Name ______________________________Title_____________ Company ___________________________________________ Street ______________________________________________ City ________________________ State _____ Zip __________ Phone (_____) ______________ Fax (_____) ______________ E-Mail______________________________________________ Please ❏ enter / ❏ renew the following subscription. (Add $33 on all orders outside of Canada and the United States.) ❏ Payment Enclosed (Remit to: Corry Publishing, P.O. Box 270, North East, PA 16428-0270.) ❏ Charge My Credit Card (Charge will appear as Corry Publishing.) ___AmEx ___Visa ___MC ___Discover ___________________________________ card number expire date ❏ Bill My Organization (Purchase order # optional.) __________________________ OUR GUARANTEE TO YOU If you are not completely satisfied, we will refund your subscription cost for all remaining unserved issues. Document Imaging Report Business Trends on Converting Paper Documents to Electronic Format Mass Storage News Opportunities and Trends in Data Storage and Retrieval SCAN: The DATA CAPTURE Report Premier Management & Marketing Newsletter of Automatic Data Capture ❏ 1 year (24 issues) @ $597 ❏ 2 years (48 issues) @ $1097 ❏ 1 year (24 issues) @ $597 ❏ 2 years (48 issues) @ $1097 ❏ 1 year (24 issues) @ $597 ❏ 2 years (48 issues) @ $1097 least 25 years and where those records do not have a high-retrieval rate,” said Barrett. Lawrence added that Kodak studies have shown that projects to transfer digital images to a more current form of media typically come in 300% to 500% over budget. “The study showed that, on average, it costs 2 ½ times more to convert an image to a new format than it costs to capture the image in the first place.” CTO Rudak stressed that Kodak is continuing its technical efforts regarding microfilm in order to improve the digital preservation process. This includes development of color and grayscale microfilm. For more information: Kodak Document Imaging, Imagelink products, Rochester, NY, PH (716) 724-4213, e-mail: herbert.lawrence@kodak.com. DI Services Dipping Toe In U.S. Market Internationally, Kodak has launched digital preservation as part of its service bureau business. “We are still looking at offering digital preservation services in the United States, but we want to do it in such a way that we don’t step on the toes of our U.S.- based service bureau partners,” said Judy Pribe, DI’s VP and general manager of Imaging Services. Kodak’s initial foray into U.S. services involves the storage of large format digital images, like engineering drawings, on microfilm. “This is a service most of our partners don’t offer,” said Pribe. DIR Andy Lawrence, worldwide marketing manager for DI’s Imagelink products, estimated that sales of microfilm products and media make up approximately 40% of DI’s revenue. With DI’s total revenue estimated at around $1 billion last year, this means that Kodak brought in some $400 million in microfilm revenue in 2001, not including service, which is covered through another arm of DI. “Although the microfilm market is in decline,” Lawrence told DIR, “we continue to grow as we capture media market share from Fuji and Agfa .” According to Lawrence’s figures, Kodak owns approximately three quarters of the microfilm media market worldwide. This leaves little room for more growth, so Kodak has turned its future microfilm efforts toward [as you likely have read in DIR before], “digital preservation.” Digital preservation involves the storage of images on microfilm as a long-term archiving strategy. This eliminates the need for transferring images from one electronic media type to another as media, such as 5.25-inch floppy disks, become obsolete. In addition to a large contract with the U.S. Census Bureau [see DIR 12/21/01], Kodak’s early success with digital preservation has come primarily in land records applications at local governments. According to Michael Barrett, VP and general manager of Imagelink products, in the past two years Kodak digital preservation equipment was installed in between 100 and 150 such installations. He said any state or government record keeping operation is a good target, as are regulated industries such as nuclear power. “The sweet spot is anybody that has to maintain their records for at </p>
