U.S. Document Management User Requirements ~~~

Transcription

1 U.S. Document Management User Requirements ~~~ Market Assessment August 2007

2 About provides buy-side and sell-side organizations with deeper research and analyses in front office, mid-office and back office BPO than any other research firm in the world. The company s subscription-based model provides subscribers with robust market analyses, case studies, vendor assessments, contract analyses, market reports and access to a content-rich BPO contracts database. The firm covers a wide range of industries including financial services, government and utilities sectors, and tracks worldwide and regional BPO activity. s home page is The company tracks business services activity. In particular, focuses on the following business services and process areas: Front-office customer management services Middle office industry-specific processing services such as policy administration and claims processing services Back office support services such as HR services, finance & accounting and procurement services. provides information about business process outsourcing to its clients in a variety of forms, including within: s BPO & Outsourcing subscription service, to assist organizations in identifying the most promising areas of BPO activity Workshops, to assist organizations in identifying the most appropriate areas of BPO for their organization Custom assessments, to assist buy-side organizations in benchmarking individual processes and to assist vendors in successfully taking BPO concepts to market. For more details, contact: In the U.S: Riverside Center 275 Grove Street Suite Newton, MA Phone: (617) Fax: (617) In Europe: Atrium Court, The Ring Bracknell RG12 1BW Phone: +44 (0) Fax: +44 (0) john.willmott@nelson-hall.com 2007 by. August 2007

3 Abstract The purpose of this study is to analyze user expectations and purchasing intentions for document management services in the U.S. The study uses user interviewing to establish: The document management issues and challenges faced by user organizations Planned initiatives in document and print management User organization usage and purchasing intentions for document management services Preferred document management service bundling and delivery approaches Triggers for use of third-party document management services Benefits sought from external document management services and vendor selection criteria Perceived suitability of individual vendors as suppliers of document management services. s document management services report is designed for: Marketing, sales and business managers developing strategies to target segments of the document management services market Executives in purchasing organizations seeking an understanding of document management services offered Consultants advising purchasing organizations in service and vendor selection. The geographic scope of this study is the U.S. Copyright 2007 by. All rights reserved. Printed in the United Kingdom. No part of the publication may be reproduced or distributed in any form, or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. The information provided in this report shall be used only by the employees of and within the current corporate structure of s clients, and will not be disclosed to any other organization or person including parent, subsidiary, or affiliated organization without prior written consent of. exercises its best efforts in preparation of the information provided in this report and believe the information contained herein to be accurate. However, shall have no liability for any loss or expense that may result from incompleteness or inaccuracy of the information provided by. August 2007

4 Table of Contents Chapter 1: Introduction 1 A. Objectives & Scope 1 B. Methodology 2 C. Structure of the Report 3 Chapter 2: Executive Summary 4 A. Process Fragmentation Remains an Issue for In-house Document Management 4 B. Organizations Begin to Purchase Bundled Document Management Services 8 C. Access to Improved Technology is a Major Trigger for Purchase of Document Management Services 10 Chapter 3: Document Management Issues & Initiatives 14 A. Document Management Issues 14 B. Document Management Initiatives 20 Chapter 4: Planned Usage of Third-Party Services 21 A. Purchasing Intentions 21 B. Triggers for Adoption of Third-Party Document Management Services by. - i - August 2007

5 Chapter 5: Services Purchasing & Vendor Selection 34 A. Document Management Benefits & Vendor Selection Criteria 34 B. Print Management Benefits & Vendor Selection Criteria 36 C. Perceived Vendor Suitability by. - ii - August 2007

6 List of Exhibits Exhibit I-1: Interview Profile... 3 Exhibit II-1: Document Management Issues & Planned Improvements... 5 Exhibit II-2: Urgency of Addressing Document Management Issues... 5 Exhibit II-3: Urgency of Addressing Document Management Issues by Sector... 6 Exhibit II-4: Document Management Services Purchasing Intentions... 8 Exhibit II-5: External Document Management Services Purchasing Intentions by Service Type... 8 Exhibit II-6: Perceived Suitability to Deliver Bundled Document Management... 9 Exhibit II-7: External Document Management Services Purchasing Intentions by Sector... 9 Exhibit II-8: Importance of Triggers to Extend Document Management Services Exhibit II-9: Preferred Mode of Service Delivery Exhibit II-10: Potential Benefits of Print Management Services Exhibit II-11: Print Management Services: Vendor Selection Criteria Exhibit III-1: Location of Processing of Inbound Documents Exhibit III-2: Location of Processing of Inbound Documents: Banking Exhibit III-3: Location of Processing of Inbound Documents: Insurance Exhibit III-4: Location of Processing of Inbound Documents: Federal Government Exhibit III-5: Location of Processing of Inbound Documents: Manufacturing Exhibit III-6: Location of Processing of Inbound Documents: Retail Exhibit III-7: Location of Processing of Inbound Documents: Telecoms Exhibit III-8: Location of Processing of Inbound Documents: Utilities Exhibit III-9: Distribution of Shared Service Centers Exhibit IV-1: External Document Management or Print Management Services Purchasing Intentions 21 Exhibit IV-2: External Document Management or Print Management Services Purchasing Intentions: Banking Exhibit IV-3: External Document Management or Print Management Services Purchasing Intentions: Insurance Exhibit IV-4: External Document Management or Print Management Services Purchasing Intentions: Federal Government Exhibit IV-5: External Document Management or Print Management Services Purchasing Intentions: Manufacturing Exhibit IV-6: External Document Management or Print Management Services Purchasing Intentions: Retail Exhibit IV-7: External Document Management or Print Management Services Purchasing Intentions: Telecoms by. - iii - August 2007

7 Exhibit IV-8: External Document Management or Print Management Services Purchasing Intentions: Utilities Exhibit IV-9: External Document Management Services Purchasing Intentions by Service Type Exhibit IV-10: Inbound Document Management Purchasing Intentions Exhibit IV-11: Outbound Print & Mail Purchasing Intentions Exhibit IV-12: Print Management Purchasing Intentions Exhibit IV-13: Purchasing Intentions: Bundled vs. Unbundled Services Exhibit IV-14: Profile of Services Included in a Bundled Service Exhibit IV-15: Importance of Triggers to Extend Document Management Services Exhibit IV-16: Importance of Triggers to Extend Document Management Services: Banking Exhibit IV-17: Importance of Triggers to Extend Document Management Services: Insurance Exhibit IV-18: Importance of Triggers to Extend Document Management Services: Federal Government Exhibit IV-19: Importance of Triggers to Extend Document Management Services: Manufacturing Exhibit IV-20: Importance of Triggers to Extend Document Management Services: Retail Exhibit IV-21: Importance of Triggers to Extend Document Management Services: Telecoms Exhibit IV-22: Importance of Triggers to Extend Document Management Services: Utilities Exhibit IV-23: Preferred Mode of Service Delivery Exhibit IV-24: Preferred Mode of Service Delivery: Banking Exhibit IV-25: Preferred Mode of Service Delivery: Insurance Exhibit IV-26: Preferred Mode of Service Delivery: Federal Government Exhibit IV-27: Preferred Mode of Service Delivery: Manufacturing Exhibit IV-28: Preferred Mode of Service Delivery: Retail Exhibit IV-29: Preferred Mode of Service Delivery: Telecoms Operators Exhibit IV-30: Preferred Mode of Service Delivery: Utilities Exhibit V-1: Potential Benefits of Print Management Services Exhibit V-2: Potential Benefits of Print Management Services: Banking Exhibit V-3: Potential Benefits of Print Management Services: Insurance Exhibit V-4: Potential Benefits of Print Management Services: Federal Government Exhibit V-5: Potential Benefits of Print Management Services: Manufacturing Exhibit V-6: Potential Benefits of Print Management Services: Retail Exhibit V-7: Potential Benefits of Print Management Services: Telecoms Operators Exhibit V-8: Potential Benefits of Print Management Services: Utilities Exhibit V-9: Print Management Services: Vendor Selection Criteria Exhibit V-10: Print Management Services Vendor Selection Criteria: Banking Exhibit V-11: Print Management Services Vendor Selection Criteria: Insurance by. - iv - August 2007

8 Exhibit V-12: Print Management Services Vendor Selection Criteria: Federal Government Exhibit V-13: Print Management Services Vendor Selection Criteria: Manufacturing Exhibit V-14: Print Management Services Vendor Selection Criteria: Retail Exhibit V-15: Print Management Services Vendor Selection Criteria: Telecoms Operators Exhibit V-16: Print Management Services Vendor Selection Criteria: Utilities Exhibit V-17: Perceived Suitability to Deliver Bundled Document Management Exhibit V-18: Perceived Suitability to Deliver Bundled Document Management: Banking Exhibit V-19: Perceived Suitability to Deliver Bundled Document Management: Insurance Exhibit V-20: Perceived Suitability to Deliver Bundled Document Management: Federal Government50 Exhibit V-21: Perceived Suitability to Deliver Bundled Document Management: Manufacturing Exhibit V-22: Perceived Suitability to Deliver Bundled Document Management: Retail Exhibit V-23: Perceived Suitability to Deliver Bundled Document Management: Telecoms Operators 51 Exhibit V-24: Perceived Suitability to Deliver Bundled Document Management: Utilities Exhibit V-25: Perceived Suitability to Deliver Transactional Document Management Services Exhibit V-26: Perceived Suitability to Deliver Transactional Document Management Services: Banking Exhibit V-27: Perceived Suitability to Deliver Transactional Document Management Services: Insurance Exhibit V-28: Perceived Suitability to Deliver Transactional Document Management Services: Federal Government Exhibit V-29: Perceived Suitability to Deliver Transactional Document Management Services: Manufacturing Exhibit V-30: Perceived Suitability to Deliver Transactional Document Management Services: Retail 53 Exhibit V-31: Perceived Suitability to Deliver Transactional Document Management Services: Telecoms Operators Exhibit V-32: Perceived Suitability to Deliver Transactional Document Management Services: Utilities Exhibit V-33: Perceived Suitability to Deliver Print Management Services Exhibit V-34: Perceived Suitability to Deliver Print Management Services: Banking Exhibit V-35: Perceived Suitability to Deliver Print Management Services: Insurance Exhibit V-36: Perceived Suitability to Deliver Print Management Services: Federal Government Exhibit V-37: Perceived Suitability to Deliver Print Management Services: Manufacturing Exhibit V-38: Perceived Suitability to Deliver Print Management Services: Retail Exhibit V-39: Perceived Suitability to Deliver Print Management Services: Telecoms Operators Exhibit V-40: Perceived Suitability to Deliver Print Management Services: Utilities by. - v - August 2007

9 Chapter 1 Introduction A Objectives & Scope The purpose of this study is to analyze user expectations and purchasing intentions for document management services in the U.S. The study uses user interviewing to establish: The document management issues and challenges faced by user organizations Planned initiatives in document and print management User organization usage and purchasing intentions for document management services Preferred document management service bundling and delivery approaches Triggers for use of third-party document management services Benefits sought from external document management services and vendor selection criteria Perceived suitability of individual vendors as suppliers of document management services. s document management services report is designed for: Marketing, sales and business managers developing strategies to target segments of the document management services market Executives in purchasing organizations seeking an understanding of document management services offered Consultants advising purchasing organizations in service and vendor selection. The geographic scope of this study is the U.S by August 2007

10 B Methodology defines BPO as the outsourcing of business functions or processes to a third party. In order to qualify under this definition, BPO contracts must involve the vendor taking overall responsibility for the business process and not just supplying IT applications or processes to facilitate the process. Typically BPO involves the vendor in employing those personnel involved in delivery of the business process. Document management services is defined as the outsourcing of a document-related process to a third-party. Document management services is segmented into three areas: Inbound document capture, verification and distribution, covering: Data capture, processing and distribution Document storage & retrieval Mailroom operations Document infrastructure management, covering: Reprographics and fleet copier management Distributed printer fleet management Outbound document management services, which is further divided into: Transactional print & mail: the printing & distribution (both physical and electronic) of transactional mail such as invoices and statements Print management: including the print sourcing and procurement, warehousing and distribution of marketing materials and corporate documentation. Multi-service document management services describes the provision of multiple document services by an external services provider. The approach taken to analyze this market encompassed interviews with 100 user organizations. Within the user research, interviews were carried out with representatives of user organizations in the U.S by August 2007

11 The profile of user organizations interviewed is shown in Exhibit I-1. Exhibit I-1 Interview Profile Industry Sector Number of organizations Interviewed Banking 20 Insurance 20 Federal Government 20 Manufacturing 10 Retail 10 Telecoms 10 Utilities 10 Total 100 C The rating system used to assess importance and satisfaction throughout the user survey is a 1 to 5 scale, with 1 being not at all important/satisfied and 5 being very important/satisfied. Structure of the Report The report is structured into the following chapters: Chapter I: Introduction Chapter II: Executive Summary Chapter III: Document Management Issues & Initiatives, covering the major issues and areas for improvement within in-house document management, and identifying the initiatives planned to address these initiatives Chapter IV: Planned Use of Third-Party Services, identifying purchasing intentions, and triggers for adoption of third-party document management services, along with preferred styles of delivery Chapter V: Document Management Purchasing & Vendor Selection, identifying the benefits sought from third-party document management services, vendor selection criteria, and perceived suitability of individual vendors by August 2007

12 Exhibit II-11 shows the proportions of organizations that perceived each of a number of potential criteria to be highly important in selecting a third-party vendor for print management services. Exhibit II-11 Print Management Services: Vendor Selection Criteria Criteria Proportion High Importance (%) Accuracy of document production 98 Use of proven IT applications & up-to-date technology 96 Timeliness of production & mailing of corporate documents 96 Ability to centralize print procurement 92 Ability to reengineer internal processes 83 Ability to provide improved visibility of print purchasing 81 Form design expertise 79 Ability to reduce cost per page printed 76 Access to own printing facilities 74 Ability to take content-centric approach to document production 72 Print management experience in your industry 67 Ability to retain existing organization personnel 60 Ability to re-purpose & restructure content for multi-channel use 59 Creative document design expertise 58 Experience in publishing services in your industry 54 Experience in document security/printing of secure documents 46 There are some significant variations from this overall pattern by industry sector with print management experience in the client s industry highly important to organizations in the banking, insurance, and telecoms sectors but of low importance in federal government. Experience in document security and printing of secure documents is predictably also highly important to organizations in the banking and insurance sectors. Ability to re-purpose & restructure content for multi-channel use is important in those sectors trying to promote online access to materials including organizations in the banking, insurance, and manufacturing sectors by August 2007