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August 30, 2022 Document Imaging Report Page 1 Table Of Contents Capture Conference 2022 – (Virtually) Come On Down! 2 Capture Industry By the Numbers: An Overview of Infosource’s Latest Research 3 Ralph Gammon’s Thoughts on Kofax/Ephesoft Deal 8 The TWAIN Working Group hits the road for Capture Conference and Developers Day 10 3 (More) Sneak Peeks: Interviews With Conference Speakers About RPA, Capture in the Cloud, and the Value of Focusing on the User Experience 11 RPA and Capture: Match Made in Heaven…or Love on the Rocks? 14 The Cloud Capture Conundrum 18 An Interview With Platinum Sponsor Open Text’s Jim Hayes – Is Focusing on Human-Centered Design Key to Capture Success? 22 Industry News Corner 25 The Dual Nature of the OPEX® Gemini™ Right-Speed™ Scanner 27 August 30, 2022 Document Imaging Report Page 2 Capture Conference 2022 – (Virtually) Come On Down! We know not everyone can travel. We’ve also realized that with the capabilities and features of our event software, we can provide an "almost" in-person experience virtually. Because of this, we’ve decided to allow virtual-only attendance. You'll receive the same great session and have access to the event platform. Of course you'll be missing out on the in-person networking and rubbing (and bending of) elbows, but we understand not everyone is interested in or able to travel at the moment. In our event platform, you will be able to view other attendee pro□les, schedule meetings/chat/message with one another, review the sessions/speakers, see “sneak peek” speaker video interviews, and browse the virtual booths featuring OpenText, TWAIN Working Group, Epson America, Inc. and Lark North America. For details, contact Erin Dempsey, our maven of all things Capture Conference 2022, via email: . ed@info-source.com And if you need to miss a session to help out a co-worker, answer the door for a delivery, or unexpected work pops up; the sessions will be recorded and available for view on-demand shortly after the conclusion of the live, in-person event. Is it more fun to attend in-person? Absolutely. But there’s no reason for anyone to miss out on the fantastic educational sessions Erin and the team at Infosource have pulled together for you. and then contact Erin for details on how to attend virtually. Take a look at the program here See you (or “see” you) next week. Bryant Duhon, Editor-in-Chief bdu@info-source.com Comments, criticisms, and witticsms welcomed. August 30, 2022 Document Imaging Report Page 3 Capture Industry By the Numbers: An Overview of Infosource’s Latest Research In our last issue, we previewed this research in a conversation with our Senior Analyst, Software, Petra Beck. Here’s an overview of the □nal results. It’s a more-interesting-than-usual time to be in the industry. It’s changing and growing. Continued research and analysis from Petra and Ralph Gammon will continue to help you track the zigs and zags of this space. To acquire access to this research, contact Petra Beck ( ) or Ralph Gammon ( ). pb@info-source.com rg@info-source.com Last time when we spoke you were still □nalizing your numbers. How big is the Capture & RPA market now? DIR: Globally sales of Capture and Capture-related RPA – we refer to them as IDP - solutions combined increased to over 5.5 Billion US$ in 2021. I think I mentioned last time already that the market saw a solid recovery in 2021 after a slight slow-down caused by the pandemic in 2020. The increase of Capture & IDP solutions and services last year was driven by an increased interest in automation of business transactions, which were covered by an increasing portion of solutions offered by RPA vendors. Beck: We talked about the market not showing any sign of slow-down. What are your projections for the next couple of years? DIR: Yes, for sure, no sign of any slow-down any time soon. In our 5-year forecast period we expect the Capture & IDP market to grow to just under 8.5 Billion US$ in 2026. But of course, we do not have a crystal ball either to predict exact numbers a couple of years out. We analyze and document assumptions and in□uencing factors, which then result in a forecast range, with the combination of optimistic dynamics being the foundation for the high end, and a combination of negative impacts driving the conservative scenario. Beck: August 30, 2022 Document Imaging Report Page 4 One aspect that surprised me was the strength of North American market in 2021, while I had expected a stronger growth in the emerging markets. But in the context of demand development over time; North America increased over- proportionally last year as organizations picked up projects that were put on hold in 2020 and accelerated their digital transformation efforts. Beck: Anything unexpected in the data? DIR: Contact Petra Beck for the full research report: pb@info-source.com Sales in EMEA saw solid growth as well, despite a slowdown in the Eastern European subregion, which was compensated for by growth in Western Europe and the Middle East. Capture investments in Asia, and in particular in Japan, which is by far the largest Asian Capture market, stalled for the global traditional Capture vendors in 2021 and shifted to local players. August 30, 2022 Document Imaging Report Page 5 As companies shift to the cloud for capture deployment, how dif□cult does that make sizing the industry -- or does it? DIR: I confess that I was very concerned about the shift from CAPEX to OPEX business models impacting our ability to track the market adequately when I joined Infosource. One of the □rst things I did is to simulate the change in revenue □ow for a software vendor who is shifting from perpetual licenses to hosted services. A vendor who shifts a sizable portion of their business to hosted or subscriptions, will experience a material short-term impact. The reality though is that most vendors are offering their new, cloud-native platforms in parallel to their established platforms, growing their functionality over time. Customer demand shifts step by step to the hosted platforms, hence the impact extends over time and is compensated by the acceleration of subscription-based sales that come into effect in the outer years. Beck: So, in brief, this is something we are tracking very closely, not only as a current metric, but it is also one of our forecast elements. Are there any industries surging in their use of Capture? We expect Banking and Finance to continue to invest in these technologies, but have any others unexpectedly jumped to the fore? DIR: Yes, demand for Capture & IDP solutions in the Finance Segment, in which we include BFSI and Insurance, has been particularly strong in the past and we do not see any sign of this slowing either. In the Finance Sector and in particular in the Banking vertical, RPA solutions have had good success in replacing mundane process steps and have been a driver of the growth. In 2021, demand in the Banking sector as well as the Insurance sector grew by solid double-digit rates. Beck: August 30, 2022 Document Imaging Report Page 6 It is interesting to analyze how the pandemic has driven demand for Capture to change, and I would also include the aspect of budget availability in this as well. An example of particularly robust growth last year is the Logistics and Transportation sector. This was driven by the recovery of the Manufacturing sector and consumption in general, coupled with distributed supply chain requirements and a strong increase in e-commerce. On the □ip side, the demand from the Retail sector declined for the second year in a row as this sector was struggling to transform itself. An example of limited budgets and other immediate priorities was the Public Sector, which represents the second largest vertical group. In 2021 Federal / National Government investments continued to stall based on their focus on compensation for the pandemic. State and Local government investments grew at a moderate pace in 2021, after a peak investment year 2020. You have been noting Infosource’s future vision for the Capture market to shift from siloed input management solutions to end-to-end automation of a business processes. Can you point to leading indicators? DIR: Actually the 2021 breakdown of use cases shows two leading indicators. Firstly, you will notice a strong increase in Accounting last year. We attribute this to a growing interest in broader automation for AP work□ows in particular, an area that has seen the strongest adoption of broader automation. Beck: Secondly, the visual shows the continued solid growth in case management solutions. This use case group includes onboarding, claims management, HR management etc., and presents a key opportunity to automate processes associated with business transactions. Demand for Capture & IDP soutions in the Finance Segment has been particularly strong in the past and shows no sign of slowing down. August 30, 2022 Document Imaging Report Page 7 Last time we talked about new vendors popping up. Are they visible yet in your share assessment? And did you see any major moves of the established players? DIR: When we look at our global market share analysis, the start-ups are not visible yet. Nevertheless, we are tracking them to closely monitor their development. Beck: What is notable is that it is becoming harder and harder to separate the traditional Capture players and the IDP players that come with an RPA background. I should mention that share numbers are based on end customer investments i.e., gross revenue derived from margin estimates based on vendor GTM channels; RPA vendor shares re□ect only the element of their sales that are Capture-related. In addition to IDP, we consider their use of Capture-related techniques like data augmentation and validation in various applications. In the 5+ market positions, the leading RPA vendors start to show up on our combined Capture and Capture related RPA vendor share chart. August 30, 2022 Document Imaging Report Page 8 Automation Anywhere was the earlier RPA vendor to market with IDP and is closely behind ABBYY when we look at the intersection of the markets. UiPath, the RPA market share leader, introduced a Capture/IDP application in 2020.and recently acquired an NLP start-up to augment its capabilities. Blue Prism, the third of the major RPA vendors takes the #10 position. 2021. Ralph Gammon’s Thoughts on Kofax/Ephesoft Deal News recap: On August 18, Kofax, backed by TA Associates and Clearlake Capital Group, announced the acquisition of Ephesoft Inc. Financial terms were not disclosed. Kofax will continue to support Ephesoft’s products and customers, while Ike Kavas, Founder and CEO of Ephesoft, will continue to lead Ephesoft’s organizational efforts. August 30, 2022 Document Imaging Report Page 9 In the □rst half of 2010s, Ephesoft had some success with innovative practices like subscription-based pricing. It also came up with a containerized services-based Capture platform. I always viewed the company as offering a next -generation Kofax platform, without all the baggage and heavy coding Kofax carried with its legacy products. However, the Ephesoft platform had a reputation of being hard to con□gure, which alienated some resellers (many of whom were actively looking for a Kofax alternative). There were certainly some big wins for Ephesoft, many in the mortgage processing space. There were also OEM agreements with ibml and Infor, and a partnership with Grant Thornton, all of which seemed to drive some success. Early on, Ephesoft pursued a second-product strategy—software designed to mine high-volume document stores for previously undiscovered data. This technology sparked interest among some large government entities and led to Ephesoft securing a $15M round of funding in 2017. Curiously, shortly after the funding was secured, Field, who was very active in securing that funding, retired from his position as CEO. The second product never really went anywhere and Ephesoft went back to focusing on its Transact Capture software, primarily for invoice and mortgage processing. Unfortunately, during the time Ephesoft spent focusing on launching its new product, a number of even more innovative Capture/IDP vendors popped up leveraging AI and Machine Learning technology. Suddenly, Ephesoft, which had been on the cutting edge of Capture, was now seen as part of the old guard. Ephesoft scrambled and did come up with a new machine-learning driven, cloud-based platform, called Semantik, which put it back in the running, but by then the company had burned through a good bit of its capital, and earlier this year, Kavas said he was seeking another, much larger, round of funding. With interest rates rising and capital getting tighter, that round never came through and now the company has been sold to Kofax. I probably should have suspected something was in the works a couple weeks ago when I saw that , Ephesoft’s successful VP for APAC (and another former Kofax exec), had accepted a position elsewhere. Stephen Lee With the acquisition, Kofax gets a decent customer base and technology platform, with Semantik being especially intriguing. Kofax’s acquisition of Ephesoft, , is one of those proverbial full- circle moves. Ephesoft was founded primarily by ex-Kofax employees, led by Ike Kavas, who had served as director of professional services. It wasn’t long before Ike brought in his old boss, Don Field, to serve as CEO. Ephesoft originally promoted itself as an open- source Capture provider and, while maintaining a free Community edition, also launched a browser-based intelligent Capture platform. announced recently August 30, 2022 Document Imaging Report Page 10 With the acquisition, Kofax gets a decent customer base and technology platform, with Semantik being especially intriguing. Mainly, Kofax adds to its cash cow Capture business. As much as Kofax promotes itself as evolving into an Intelligent Automation vendor, the vast share of its revenue is being generated from Capture, an area where it is obviously comfortable, has great brand recognition and is the market share leader. This acquisition is similar to the Psigen acquisition Kofax made last year under its previous ownership group, so it would seem that Kofax’s strategy remains consistent. David Gerber, another ex-Kofax exec, who is now serving as VP, Tech M&A, at the , recently told me that he thinks it would be a smart move for Capture/IDP vendors to start looking more seriously at consolidation opportunities. “For 2023 through 2025, strategic buyers and potential investors believe that IDP as we know it now may become table stakes—like AI and ML, built into many enterprise applications. Fact is, the technology is becoming ubiquitous, which means differentiation becomes very dif□cult. ISVs that hold out too long may be left behind. Anybody remember web content management?” Corum Group The TWAIN Working Group hits the road for Capture Conference and Developers Day Indeed, this may be a case of Kavas and Ephesoft’s investors getting out while the getting is still good. We expect to see more market consolation in the coming months. Not coincidentally, Gerber will be speaking at our upcoming , Sept. 7-8, in the Chicago area. Hope to see you there. Capture Conference As I previously shared on our in my analogy of and our , the TWAIN Working Group (TWG) has loaded the train and is ready to make a some important stops over the next few months sharing updates around their TWAIN Direct project. They have also just their , so needless to say, they are full steam ahead! blog site The Little Engine That Could Capture Conference: Sneak Peak recently announced TWAIN Direct Developers Day 2022 First stop for TWG is the , hosted by Infosource at the beautiful in Chicago on September 7 and 8 . The TWAIN Working Group has been a long-time sponsor and will be once again. In their Sneak Peak interview with DIR, TWG promised big updates on the progress of the TWAIN Direct project including new ISV projects, additional joint marketing activities, as well as more events such as Focus Groups and Developers Day. They will have a demonstration booth showing zero-footprint, Web document scanning with enterprise authentication integration to show that TWAIN Direct is enterprise-ready technology. TWG members will also be available for meetings to discuss how TWAIN Direct can bene□t organizations whether a technology vendors, consultant, or end-user. Capture Conference Eaglewood Resort & Spa th th August 30, 2022 Document Imaging Report Page 11 Stop number two for TWG in the next few months is TWAIN Direct Developers Day 2022 on November 9 in Tampa, Florida. Joseph Odore, TWAIN Working Group Chair, said the following about TWAIN Direct Developers Day: th “The TWAIN Working Group is very excited about this inaugural event, by providing developers an opportunity to develop a TWAIN Direct scanning solution. The upcoming Developers Day will be a steppingstone for hardware manufacturers and software developers to experience for themselves how easy and quick the development of a TWAIN Direct application really is.” DIR is a proud media sponsor of TWAIN Direct Developers Day, along with technology sponsors Visioneer and Verve Corporation, and we are glad to support TWG’s efforts. Additional technology and partner sponsorships are available from the TWAIN Working Group. Overall TWG seems to be steaming right along on several tracks. We look forward to continuing our coverage of This Little Engine That Could. They are doing remarkable things, as a member-supported not-for-pro□t group, to drive more awareness and adoption of capture technologies for the bene□t of the whole industry. 3 (More) Sneak Peeks: Interviews With Conference Speakers About RPA, Capture in the Cloud, and the Value of Focusing on the User Experience As I mentioned in our previous issue, here are three more previews of what you’ll discover at the Capture Conference. And, even if you can’t attend, we’re providing transcripts of these conversations to you (I know I don’t always want to watch/listen to a video). Click on any of the links below to watch the videos now or scroll down to read them for yourself. Either way, we hope you □nd them interesting and informative. August 30, 2022 Document Imaging Report Page 12 RPA and Capture: Match Made in Heaven…or Love on the Rocks? The Cloud Capture Conundrum For those new to RPA, can you give us a quick explanation of RPA as a technology? Where is it commonly used? What are common RPA mistakes you see companies make in implementation? I know we’re a Capture Conference, but process is equally important, how does RPA work with both process and capture tools? Not to mess with your analogy, but is RPA from Mars and Capture from Venus? Jeff Willinger, Digital Experience Director, Withum. Jeff is a cloud-□rst migration strategist and an expert on all things digital transformation. Mark Miller – RPA and Capture Jeff Willinger – Cloud and Capture Jim Hayes – A Conversation With Open Text’s Jim Hayes Here’s a quick overview of these Capture Conference 2022 sessions, and the interview questions. Mark Miller, Senior Vice President – Enterprise Solutions, Naviant The lines between RPA and Capture have been blurred in the past few years, but it seems like it could be a match made in heaven. As the products continue to evolve, things could go one of two ways. Are the two destined for a breakup; or will they □nd harmony working with each other long term? This session will focus on the connection between these two similar yet different technologies and what the future holds as customer demand continues to evolve. August 30, 2022 Document Imaging Report Page 13 Reports that two-thirds of all enterprise infrastructure is now cloud-based may be overstating reality. Infosource’s numbers show revenue generated from cloud Capture services still makes up less than a third of the worldwide web market. Why has Capture been so slow to move to the cloud? And why is it paramount that vendors, resellers and end users make the transition? Enter Jeff Willinger. Jeff is a cloud-□rst migration strategist and an expert on all things digital transformation. He will discuss the challenges and bene□ts of moving Capture to the cloud and help you de□ne the best strategy for your business. You won’t want to miss this key presentation aimed at keeping you competitive and secure in the increasingly cloud-based landscape. Before getting into the capture aspect of “the cloud” what common misperception about the cloud do you see, regardless of type of implementation? How prevalent are cloud implementations at companies? While an entirely cloud- based infrastructure is possible, it seems like it’s still a hodgepodge of apps and use cases? Let’s back up a second after that question, can you (or anyone!) quickly de□ne what “cloud infrastructure” means? Like digital transformation, the answer seems to always be “it depends.” What’s the □rst thing a company should do before considering a move to the cloud? Give us a hint about the conundrum in the title of your presentation? Looking to the future, do you think on-prem implementations will shrivel away to nearly nothing or remain a fairly large part of corporate infrastructure? A Conversation With Open Text’s Jim Hayes As always, a huge thanks to our sponsors for their support. Jim Hayes, Senior Marketing Manager, Capture, at Open Text discusses digital transformation and the importance of focusing on people for capture success. We’re starting to see a lot of “digitizing the supply chains” as in□ation continues to be a drag on the economy. How big of a role does capture have to play there – as in, how “digitized” (or not) are supply chains? Digital transformation took a huge shot in the arm, no pun intended, from covid. As Covid recedes, temporarily, into the background – does OpenText still see a push to digital transformation amongst your customers or is it tapering off? We’re biased, but how core is capture in the ongoing race to digitally transform organizations? What are companies still getting wrong about their digitization efforts? August 30, 2022 Document Imaging Report Page 14 RPA and Capture: Match Made in Heaven… or Love on the Rocks? Robotic process automation (RPA) is a software solution that allows you to automate and optimize your business processes by completing some of the manual tasks that might exist within those processes. It’s focused on increasing accuracy and ef□ciency, and it's typically used in a process that's a high-volume kind of a repetitive task that's replicated the same way and the software conducts that process the same way a human would. It oftentimes works with existing systems and infrastructure. It’s typically a lighter lift to implement so that you know when you start to combine other functions like arti□cial intelligence and machine learning it allows it to adjust based on some of the data that's gathered. At a high level it’s a software solution that automates and optimizes your business process. Miller: You sort of held back there a little bit because you know what the next question is. Where is it commonly used? DIR: Mark Miller, Senior Vice President – Enterprise Solutions, Naviant For anyone out there who’s new to RPA, can you just give us a quick overview and explanation of RPA? DIR: August 30, 2022 Document Imaging Report Page 15 I'll give you a couple of examples where we've used it, but pretty much just about any business process you can think of that has repetitive tasks. Maybe you're moving data from one application to another – one location to another. Or you're taking a piece of information out of an application and going to a website or another source to further □ll out the content that you need to make a decision. Miller: A couple of examples that we have would be property title insurance, real estate title insurance. So maybe an application comes in for that insurance and that application includes what's called a parcel ID number. The parcel ID number is used to track the deeds the restrictions any liens that might be placed on that property and the reason you get insurance is when a transaction is taking place when the property is changing hands you don't want there to be any liens on that property. You need to clear those, so in this case RPA was used to grab the parcel ID . . . well, I take that back capture was used on the front side to extract the parcel ID information and the county of origin and then RPA took those two pieces of information and went and navigated to the county recorder's website to then conduct a search based on that parcel ID number and pull back all of the associated documents related to that parcel. From there that collection of documents was sent to someone to evaluate further and kind of put human thought around determinations that need to be made. That was one high-level use case. Another use case that’s similar was in a retail business. This was a tile business – stone, wall, □oor tile for building and construction. This organization had a large retail presence and online presence. This is how they used RPA. As soon as a product that a customer wanted was placed into their cart, RPA would pick up the part number. That part number is associated with the manufacturer, so the tool would then automatically navigate to the manufacturer's portal to con□rm the availability of stock for the quantity ordered. This was typically a manual process. Often, a sale would be made, and the quantity ordered wouldn’t be available. This led to confusion, a lot of delays, and a potential lost transaction. They wanted to speed up that con□rmation and didn’t want to lose a captive customer. This way, they could let a customer know right away that they needed to make a different selection if the quantity wasn’t available. It sped up that process and kept the customer captive in the long term. So that's kind of a cool customer service customer focus use case; I like that. I think of when RPA □rst came out – what you’re describing is a very small but as you just said very powerful piece of technology – people thought it was bigger than it is. What are some common mistakes that you see companies make when they consider it or even going to implementation? DIR: RPA was so sexy a couple of years ago. And people were using it for maybe more than it was built for. August 30, 2022 Document Imaging Report Page 16 I think you hit it on the head. RPA was so sexy a couple of years ago. It was the hottest buzzword and we found people were trying to use RPA for everything. It was like, “Oh, this is revolutionary.” Which it is revolutionary but trying to make it do more than maybe it was built for and pushing the boundaries of the use case where it might not give them a return on investment. Miller: Multiple times we saw “Hey, we want to implement RPA for this process, and we talk about the process and it's like “Well, you know it's only an hour or a half hour FTE that we’re going to automate.” The value proposition wasn't there because now you're going to spend more for RPA than you might just to have someone manually complete that work. On the □ip side of that, though I'm going to kind of □ip the question around. That value proposition has become – as we've seen this dramatic shift in the workforce; throwing people at a problem is becoming harder and harder than it used to be just a couple of years ago. So on the value proposition side, RPA is almost a requirement in in some cases because you just can't □nd people to conduct some of that work. So while it might be a little bit more expensive, you're combining it with other BPM tools, capture tools, but it might be your only option. I don't know if I answered your question speci□cally there but kind of □ipped it on its head just a little bit. No, that’s a really good point as the economy is basically running almost at full employment, there's just no bodies to throw at these at these simple problems. DIR: Obviously, it’s a capture conference and capture is in the title, but process has always been equally important. How does RPA work with both process as well as capture tools? One of the questions that was asked of me previously was is RPA and capture converging technology or diverging technology. Do they compete with one another? I think they complement each other very well and when you when you bring capture and RPA and other tools like work□ow; BPM. Miller: I think of them like a musical instruments. Each one of them de□nitely has its play and on its own creates very beautiful music but when you when you pull them all together it makes a beautiful symphony of sounds – an orchestra, right? That’s really the digital transformation process – the sum of the parts is greater than each of the individual pieces. August 30, 2022 Document Imaging Report Page 17 That’s really the digital transformation process – the sum of the parts is greater than each of the individual pieces. That’s the way I think of these technologies. But even higher than that when we pull back and think of digital transformation even more; technology is just one piece of that overall picture. People and processes are just as an important – and maybe even more important in most cases when it comes to that digital transformation process. Back to more speci□cally answer your question, they all work in conjunction with one another and are □nding ways to work with each other right now. RPA can also be used to kind of guide a user through a process that reminds them of the next step that they need to take to follow along the way. That’s more of a guiding process than it is a fully automated process with RPA. That’s really valuable when it comes to highly regulated processes such as banking. Last question for you and not to mess with the analogy in your title (which is great), but is RPA from Mars and capture from Venus? I have an idea how you’re going to answer this, but . . . DIR: You’re dating yourself with the Mars and Venus reference there as well, but that's okay, I remember that book too. I don't think they're from other planets per se. I like to think of them more as they’re courting lovers. They’re trying to □gure out how they work together. They know they need each other, but it's complicated. Miller: So it's a romantic comedy instead of a tragedy like Romeo and Juliet. DIR: That's correct; it absolutely is. And you know the market is adapting and shifting and changing all the time. We see that most players and customers do understand that not any one technology is a silver bullet. It's the combination of all of them working together. That's the power of the solution; it gives a lot of power to the customer and gives them some opportunities and capabilities that they may have never had before. Miller: Fantastic, Mark. Thank you very much for your time and humoring me on that last question. Looking forward to seeing you in September, which is just a few short weeks away now. DIR: August 30, 2022 Document Imaging Report Page 18 Just like if you're going to move your house; you're not just going to all of a sudden go get a U-Haul and start packing up. You’re going to be planning for probably months, if not some people plan for even longer. But in this particular case you've got a plan and there are de□nitely some steps that you need to take up front before you even consider moving your data to the cloud. Jeffrey Willinger, Digital Experience Manager, Willum Jeff, your session is on the intersection of capture in the cloud, but before getting into that capture aspect of the cloud what common misperceptions about the cloud do you see regardless of the type of implementation. DIR: The biggest misconception that people have about the cloud is that it's not secure. I would argue the complete opposite, especially if you're thinking about the Microsoft cloud the Azure Cloud. It is more secure than having your data on-prem and people think oh it's going to get lost; things aren't going to be the same; it's going to be slow. Willinger: It's actually all the myths about moving your data to the cloud is the complete opposite of what it is. The problem that a lot of organizations have is they just don't take the time to do is to build yourself a mini road map before you move. The Cloud Capture Conundrum August 30, 2022 Document Imaging Report Page 19 Funny you mentioned the security aspect. I hadn't thought about that in a while, but I □ashed back to seeing a couple of server rooms and sort of the door propped open because it got hot in there so anybody could have walked in. DIR: One of the things you have in your session description is about sort of around implementations and roll out of the cloud. How prevalent are cloud implementations in companies. An entirely cloud-based infrastructure is possible, but it still seems like it's a hodgepodge of apps and use cases and sort of a mixed bag of grab of things? Just going back to what I was just talking about, if you fail to plan you plan to fail. I’ve identi□ed six important things that every organization – and this is what I'm going to do a deeper dive into in my session, Bryant – six critical things to consider when moving your data. Willinger: Identity and access management – and I’ll do a deeper dive into each of them, but I wanted to give you an overview if each of them – mail and security. It’s like “Wow, we didn't even think about our mailboxes.” File servers is obviously one that comes to mind. Collaboration; what's going to be our main collaboration tool. Are we going to use Microsoft Teams? Are we going to continue to use Zoom? Where does Slack □t in? Do we need all of these? Probably not. And then your enterprise content management and then optimizing, really, everything. But everything starts with this identity and access management. It's really the foundation. It's where it all starts and if you don't have that plan up front, your migrations are going to hit roadblocks literally right out of the gate. So make sure having this plan, mapping out the design of where you are and where you're going to be. I equate everything to new construction on a house. When you want your new bathroom, I'm sure you're going to pick out a new toilet and a vanity and tiles and all the different things that go into it and it's the exact same thing here. Again, what's your enforcement policy for users outside of the organization so placing identity and access management at the core of your strategy is going to make it a lot easier and improving both operational control and more importantly the user experience. Kind of got a little bit scary to hear you say that answer and realize that a lot of people probably aren't doing that. Let me back it up and I probably should have asked this question beforehand. Can you quickly de□ne what cloud infrastructure means. It sort of seems like with digital transformation, the answer seems to depend on who you’re talking to. DIR: Placing identity and access management at the core of your strategy is going to make it a lot easier. August 30, 2022 Document Imaging Report Page 20 It de□nitely depends upon who you're talking to because cloud infrastructure to me means everything. Basically, the blood of the organization, if you will. It’s how it breathes, right? So it's really the collection of that hardware and software needed to enable this idea of cloud computing. It includes computing power, networking storage, as well as an interface for users to access their virtualized resources, which is basically everything. Even before the pandemic – I mean, the pandemic really hit it home – but it’s really the components (all the different mishigas) that goes into each one of these projects. Willinger: This might be a little bit redundant based on based on the previous answer but what's the □rst thing a company should do before considering moving to the cloud? Obviously, you need a plan, but is there anything that should be thought through pre- plan, such as a strategic direction? DIR: Planning for what the future is really at the core of every organization. They talk about this idea of digital transformation and it's one of those things that is very scary to a lot of organizations – understandably. Having that focus on the cloud app modernization . . . I was just looking at some statistics and I saw a large percent of organizations expect to add more cloud environments by the end of this year and over half of all apps are expected to be modern apps. Willinger: If you’ve been following Microsoft Technologies at all probably one of the hottest plays for them is this idea of a no code solution where people like you and me are able to develop our own apps using the Power Platform. We are at a really exciting time in our technology careers. Can you give us a hint about the conundrum mentioned in your title DIR: I think the conundrum is really □guring out what to do when really rede□ning the foundation of IT with cloud capabilities and then modern architecture that span data and the data center to any cloud for all apps. This idea of distributed cloud services to support their apps and really cutting back on any sort of data breaches that might be out there. Willinger: When you think about the cloud and data in the cloud; it's very scary for a lot of organizations. Putting your data anywhere but in your back – you know, wherever your servers are being stored – is scary for a lot of organizations. Getting their arms around it and having a Sherpa (if you will) guide you on your journey … because let's face it at the end of the day digital transformation starts with getting your data to the cloud and then goes on from there. August 30, 2022 Document Imaging Report Page 21 During my session I'm going to do a deeper dive and show actual case studies of how organizations save money by going to the cloud. I don't even sell cloud services. I don't sell Azure. I mean at the end of the day I'd like to think of myself as a digital transformation sherpa helping organizations. It really starts with migrating your content to the cloud and making sure that it's the right thing to do. That’s a good phrase to use, I think. Who doesn't want a sherpa in life. And I’m sorry, I think I cut you off . . . DIR: What I'd like to tell all your viewers are the steps of a migration; starting with the extraction of the data. I mean we're at a capture conference, so you've got to extract the data. Back to moving your house, are we bringing everything with us or are we not bringing everything with us? Then analyzing that data and then deciding, “All right, this is what we're going to do. This is how we're going to extract it.” Willinger: Once it's extracted – really get a good inventory of your documents’ content structure, content types. Look at the metadata; what's reusable. Then I’ll talk about selection. It’s a great opportunity for you to clean up your data. We're not going to bring all that garbage with us. Garbage and garbage out. We're going to map it out. For example if it's already known what this new Web content management system is let's say they're moving from, I don't know, FileNet to SharePoint or something like that. Really get all your ducks in a row so that when the time comes and we're actually moving the data and mapping those content types they're not going to be any sort of issues. Do some actual “information management.” OK, I thought about not asking this question but I'm going to do it anyway. Looking far into the future, do you see on-prem ever going away and being totally replaced by a cloud or will there always be a place for on-prem as a fairly large part of corporate infrastructure? DIR: Do you remember when email □rst came out? Everyone’s like “whoa, people are never going to mail people anything anymore.” People still write letters. We still get mail every day. I will say that the way organizations are set up, I think it's always going to be a hybrid of some sort. It is going to be part on-prem and part on the cloud, if for no other reason than managing the data is a little bit easier when you're on-prem, especially state and local government. Willinger: I’m doing a project right now for state/local government where they just don't want to move everything there and it's really just so that they can manage it better. They’re going to move part of it to the cloud and part they're going to keep on-prem. It doesn't matter to me as long as they're aware of it. Once we get it set up, it will be easier for them to do it as well as long as they plan for it; they can do it. August 30, 2022 Document Imaging Report Page 22 An Interview With Platinum Sponsor Open Text’s Jim Hayes – Is Focusing on Human- Centered Design Key to Capture Success? What we see □rst of all is a trend towards, □rst, getting rid of invoices. So invoice processing, automating that whole process, has been a big exercise, especially in SAP environments. A lot of our business has been focused on that. What we also see is a lot of these organizations – although you can get rid of paper up front – there’s kind of the sustainability issue of how you eliminate paper-based processes within the culture of the organization itself. Jim Hayes, Senior Marketing Manager for Capture at Open Text. We're starting to see a lot of digitizing and supply chains as in□ation continues to be a drag on the economy. How big of a role does capture have to play here? How digitized (or not) are supply chains and all of the accounts payable and receivable and all that paperwork “stuff” around them? DIR: What we've seen some of the largest retailers, certainly the largest in the US, logistics companies worldwide, also the largest food producers worldwide are using some of our intelligent capture products to automate to capture all paper-based information coming in and to put in a digital format with easy-to-use ergonomic user interfaces to process those documents. Hayes: August 30, 2022 Document Imaging Report Page 23 You might be able to scan everything in and put it in digital format, but if you don't have those ergonomic, easy-to-use interfaces; there's a big chance that users downstream in the process might end up printing out image and turning those back into paper documents That's been another area that we've worked on a lot with shared services organizations. As these supply chain organizations expand line-of-business applications beyond just invoice processing into HR into bills of lading . . . incoming documents of all different type, unstructured document processing. These organizations are looking to not just eliminate invoices as paper but all paper entering the organization. We've been working increasingly within supply chain management with shared services or managed service users and leaders that are basically trying to get rid of paper up front. Automate those processes, put the information in usable UIs like ergonomic user interfaces and basically kick off these downstream work□ows completely paper-free. It’s kind of fascinating to hear you talk about that because it's never really about the technology, is it? It’s always about the users and the lack of training and sort of that that change management stuff which always seems to be the last thing that anyone pays attention. It’s fascinating here to hear Open Text is working to focus on that. I think that’s a pretty good idea. DIR: Absolutely. We’re putting together a campaign right now just working on this morning with some colleagues around sustainability and paper free. Basically for the environment and using that as kind of an angle to talk about getting rid of paper directly as it enters the organization, eliminating those downstream tendencies to touch paper again or print things out. Hayes: That’s a cultural thing. Again via these intuitive ergonomic UIs, we've been able to eliminate a lot of that so It's also fascinating how big of a hidden cost that paper is both just from having to buy the paper and then the copiers and all of that infrastructure that goes with it; plus obviously the drag for manualprocesses and all that stuff. Switching gears a little bit to digital transformation, it took a huge shot in the arm, no pun intended, from Covid. As fears of Covid (sort of) fade into the background, does Open Text still see a push to digital transformation amongst your customers or is it tapering off. It sounds like it’s not from your answer already. DIR: We see it. De□nitely the trend is – and I think with in□ation and a potential downturn in the economy – that capture tends to remain strong in these environments because of the return on investment and the ability not only to eliminate paper and paper-based processes but to automate a lot of the manual processes associated with document and data capture. Hayes: August 30, 2022 Document Imaging Report Page 24 De□nitely data transformation or digital transformation was kind of a buzz word over the last couple years, but the fact is organizations still see a very strong return on investment. In fact, on our website we just created a new return on investment calculator to talk about if you do have a legacy capture application, if you added the most advanced OCR technologies and intelligent document recognition technologies how much would you be able to bene□t from these new technologies versus a capture solution that was maybe years old that was more of a combined paper meets electronic data processing. Now what we're talking about generally is – whether it's PDF, email with attachment, paper, fax – everything coming into the organization being transformed digitally and then processing that automatically. I think whether we call it digital transformation or intelligent document recognition as part of it or transforming paper and paper-based processes; the idea is just automating, cutting costs, and being able to prove that via successful customer examples. Obviously, we're a little bit biased but captures is core in the ongoing race that digitally transforms or transform organizations. You mentioned in there something I should have asked beforehand and that is how important is capture combined with process? DIR: That’s one thing we've noticed a lot with our customers. It’s kind of an approach of getting everything in a digital format but really being focused on the customer’s business process. So not only the good old days of image enhancement, barcode reading, OCR, document recognition, and validation and then moving on to content management. What we're seeing a lot more of now is a discussion, especially again in these large shared-services environments where they've made a big investment in content management and in ERP systems, is how do you automate and get information streamlined with minimal touch points. Hayes: Straight through processing is one term that a lot of folks are using. How do you capture images, capture all the data from those images, and just pass it straight through to the to the system of record, whether that's a document or content server, extended ECM, or any of the leading ECM providers as well as systems like ERP systems – large systems like SAP. De□nitely seeing a lot of interest in in integrating directly with those line-of-business applications. What are companies still getting wrong about their digitization efforts. DIR: What they could do a better job of is focusing across multiple line-of-business applications; trying to □nd a capture solution that's going to solve the general problems of the organization and not just looking at capture as a siloed: just for invoice processing; just for HR, just for eliminating personnel □les out of □le folders and putting them in an electronic archive. Hayes: August 30, 2022 Document Imaging Report Page 25 Industry News Corner If you look at that from a larger perspective, basically taking all of the information coming into the organization, pushing it through scanners, importing it through email, applying uniform business rules, and, again, eliminating those cultural issues around paper handling and downstream printing out paper and handling it again. Those are some of the issues that we've seen organizations struggle with. Another factor is that a lot of times these organizations are dispersed internationally. We’ve put a lot of effort into supporting many different OCR and language character sets. Basically, you can get the same quality recognition across a large number of languages. The idea is that you can apply these technologies not just for a single line of business, not just for a shared service in a certain nation but really across the entire organization. That's really been our goal now: to help automate throughout these international organizations. That’s a really good point, I hadn't really thought about it from in that standpoint, but a lot of people do can still consider capture sort of a point solution that’s going to do this one thing and really you should be looking at it as a horizontal thing across your entire company. DIR: Hyland releases latest content services product enhancements, including new integration with SAP SuccessFactors Here are a few things that happened around the capture industry recently. Whether coincidental or not, note the number of security-focused announcements. Every company needs to pay attention to security. Helping customers keep their content security is critical. User experience a driving factor in new functionality and solutions developed across Hyland’s product portfolio , recognized by Gartner as for 12 consecutive years, has launched its latest product enhancements and innovative solutions that will help its customers in their digital evolution journeys. Hyland a content services industry leader Content Services New enhancements across Hyland’s Alfresco platform are focused across the user experience — including Alfresco Digital Workspace, Mobile Workspace and Desktop Sync — and provide a range of options for delivering engaging user experiences that present relevant content in the appropriate context. . Alfresco: More information August 30, 2022 Document Imaging Report Page 26 ConnectWise Research Shows SMBs Reaching a Cybersecurity Tipping Point as Rising Attacks Boost Reliance on MSPs ConnectWise, the world’s leading software company dedicated to the success of IT solution providers (TSPs), today announced the 2022 □ndings of its annual report, revealing that the growing number of attacks are fueling investment in cybersecurity, particularly with managed service providers (MSPs). Key □ndings show nearly three-quarters (73%) of report respondents are in agreement that their organization has reached a tipping point where cybersecurity concerns demand action. . State of SMB Cybersecurity More information Konica Minolta Launches Managed EDR Services Konica Minolta Business Solutions, U.S.A., Inc. (Konica Minolta) today announced its new Managed Endpoint Detection and Response ( ) service, designed to protect supported endpoints against modern attacks and exploitation. The cloud-based service helps to secure endpoints on organizations’ IT networks by detecting unusual or potentially malicious activity and responding to neutralize any possible threats before they can cause compromise. This is accomplished through the implementation, management and monitoring of next-generation endpoint protection powered by SentinelOne, enhancing Konica Minolta’s already strong security portfolio even further. . MEDR More information UiPath Acquires Re:infer We are excited to , a natural language processing (NLP) company focused on unstructured documents and communications. Founded in 2015 by Ph.D. scientists from the Centre for Arti□cial Intelligence at University College London, Re:infer uses machine learning (ML) technology to mine context from communication messages and transform them into actionable data. . announce that UiPath has acquired Re:infer More information IBM Report: Consumers Pay the Price as Data Breach Costs Reach All- Time High IBM Security released the annual , revealing costlier and higher-impact data breaches than ever before, with the global average cost of a data breach reaching an all-time high of $4.35 million for studied organizations. With breach costs increasing nearly 13% over the last two years of the report, the □ndings suggest these incidents may also be contributing to rising costs of goods and services. In fact, 60% of studied organizations raised their product or services prices due to the breach, when the cost of goods is already soaring worldwide amid in□ation and supply chain issues. . Cost of a Data Breach Report 1 More information August 30, 2022 Document Imaging Report Page 27 Tangentia Partners with Parascript to Enhance Clients' End-to-End Automation with Intelligent Document Processing This new technology partnership with will allow Tangentia to improve processing ef□ciency and automate tasks such as object recognition and classi□cation, including optical character recognition and handwriting recognition, motion analysis, scene reconstruction, and image restoration. These tasks can support controlling robotized processes, navigation, event detection, organizing information, and automatic inspection. As a result, Tangentia clients can potentially save billions of dollars by reducing spending on document processing by up to 95%. . Parascript More information The Dual Nature of the OPEX® Gemini™ Right-Speed™ Scanner Earlier this year OPEX® introduced the Gemini™ Right-Speed™ document scanner. The new solution was unveiled at the 2022 AIIM Conference in April. We spoke with OPEX at the AIIM Conference to learn more about their solutions for document and mail automation. About the Gemini Scanner Like the astrological sign, the Gemini Scanner has a dual nature. The Gemini scanner combines the versatility of Right-Speed scanning, exceptional image quality, and the con□gurability of the CertainScan® software suite. With dual feeder capabilities, the Gemini scanner handles all document types, messy or clean, at the necessary speed, while requiring only minimal document prep. The Gemini scanner even features a touch of ergonomics, enabling the operator to raise or lower the device to different heights while sitting or standing. Moving Beyond the Mailroom With this new solution, OPEX is looking to reach new markets and opportunities beyond a digital mailroom solution. “We still want to be known as the best-in-class for the digital mailroom and remittance markets,” says Jeff Geshay, Administrator of Partner Relationships, OPEX. “It’s a bit of a departure in the philosophy of the marketplace that we’re going after.” The Gemini scanner’s speed is relative to the needs of the customer, allowing them to easily shift between high and low speeds while adjusting to the volume of work they have. This eliminates the customer’s need for additional scanning devices. August 30, 2022 Document Imaging Report Page 28 This shift towards Right-Speed scanning was in response to customer demand, according to Geshay. While customers were pleased with the OPEX One-Touch capabilities, which involved scanning documents directly from the envelope in one step with virtually no prep work, customers were also interested in higher scanning speeds and image quality. Moving past digitizing mail, the Gemini scanner can be an effective solution for insurance claims processing, government records, medical records, and service bureaus. As the work that’s needed to be scanned gets messier, the Gemini scanner increases pro□tability because it requires minimal prep and labor. Powered by OPEX CertainScan® CertainScan, OPEX’s capture suite, powers all of the job functions on the Gemini scanner, performing basic image clean-up to more complex document handling. Geshay notes a major difference of document recognition at the time of capture, which then saves several steps down the line.” According to Geshay, users can scan documents and send the content to a third-party repository or capture tool, where the content can be immediately ingested into a work□ow in any of the ECM platforms. The on-site demo performed at the AIIM Conference by Rick Roy was impressive with the ability to drop and scan or stack feed documents. With the dual feeder capability and software, users signi□cantly save time in document prep – separator sheets, taping, and photocopying aren’t required to create a high- quality image. Documents can be dropped directly on the feed bed to be scanned, then sorted into one of the □ve sort bins. Documents are classi□ed and transactions are separated during the scanning process, further saving time. Validation and output can be completed however the customer needs their □les – PDF, PDF/A, TIFF, JPEG, etc. The Need for Centralized Scanning It’s interesting to see OPEX move beyond providing digital mailroom solutions with a product designed to □ll an emerging need for other scanning applications in the market. As Geshay said, “You want to go fast? We can go fast. You want to do One- Touch? We can do that. You want to scan dif□cult documents? We handle those too.” With paper still being prevalent in nearly every of□ce, the Gemini scanner meets the multiple scanning needs for customers, regardless of industry. August 30, 2022 Document Imaging Report Page 29 Business Trends on Converting Paper Processes to Electronic Format DIR is the leading executive report on managing documents for e-business. Areas we cover include: Document Capture; OCR/ICR, AI, and Machine Learning; RPA; ECM; Records Management; Document Output; BPM. DIR brings you the inside story behind the deals and decisions that affect your business. Vol. 32, No. 10 Managing Editor: Ralph Gammon; Editor-in-Chief: Bryant Duhon; Phone: +1 (301) 275-7496 rg@info-source.com bdu@info-source.com DIR is published approximately 15 times per year by: Infosource SA Avenues des Grande-Communes 8, 1213 Petit-Lancy, Geneva, Switzerland http://www.info-source.com Copyright @ 2022 by Infosource SA. Federal copyright law prohibits unauthorized reproduction by any means including photocopying or facsimile distribution of this copyrighted newsletter. Such copyright infringement is subject to □nes 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 the law, we make multiple-copy subscriptions available at a substantially reduced price. Subscriptions: Single user: $597 (electronic) Two users: $897 From 3 to 5 every extra user: +$100 10 users: $1,497 Company-wide subscription: $2,500 (country-speci□c) Enterprise-wide subscription: $4,500 (global) DOCUMENT IMAGING REPORT
