Electronic Document Management And Forms Processing (1999) –
A View Of The "Real World" From 10,000 FT
by Herbert F. Schantz, HLS Associates
Source:
(1) Document Management: "New Technologies for the Information Services Manager", by K. Megill and H.F. Schantz, 1998 Publication by Bowker Saur Pending
(2) Forecasts are from HLS Associate Client Studies, 1998. (Sept 98/EIDC Markets)
Electronic Document Management Systems as we know them today include the digitization, indexing, storage, processing, and retrieval of document images required to meet the user’s work process needs. Document Management includes managing workflow. This includes both the flow of documents and the flow of the user’s work. Workflow Analysis requires a thorough understanding of user’s business process (system) and the costs related to the work process. It also includes an understanding of the costs of reengineering required to optimize productivity and minimize operational costs, relative to the user’s work processes.
The goal of document management is to minimize operating costs and optimize the value of information. The ultimate goal is to increase a user's competitiveness in an enterprise or global economy (marketplace).
An Electronic Document Management System (EDMS) when properly designed and implemented, will minimize the cost of document processing and increase the value of the information on the documents (images) being processed. Information Services manages this information on the documents. They are driven by the same motivation as other users that use information in their business or enterprise. The success of information enterprises depends on the ability to manage the information contained on the documents and within the system. This information has additional value since it can be stored, indexed, and retrieved as required by the user. This information can be addressed randomly by all qualified users on the network who possess the required level of security.
Thus, the understanding of the convergence of a number of enabling information and image technologies and Strategic Business Factors are essential for the successful application of an Electronic Document Management System. This is prerequisite for Information Managers of the next millenium and next year.
Strategic Business Factors:
An understanding of, at least, the following factors are essential for an Information Manager to understand and embrace.
- Storage Capacity And Processor Speeds
The cost of storage capacity for digital images is decreasing rapidly each year. Much of the current thought and practice of Electronic Document Management (EDM) presupposes a limited storage capacity and processing speed. Storage of information will always have some cost, but that cost continues to drop exponentially each year. The same is true for processor speeds. Chips are becoming faster and cheaper at a rapid rate. Today – with some of the new copper and neon chips we can expect 500 MHz processors for less than $2,000.00.
Digital images can be generated from any media – paper, microfilm, audio, or electronic documents. Likewise digital documents (images) may be also delivered via almost any media. Thus, the creation and delivering of image documents need not be determined by their media but by their information content and use. Managing documents in electronic form means that Information Services do not need to be media centered. They must be information centered.
The development of the Internet and the ability to transmit electronic documents cheaply and quickly means that the location of documents are relatively unimportant when compared to their information content. Client/severs, intranets and the Internet enable users and documents to converge independently the location of the documents.
The fundamental changes in strategic methodology enabled by electronic imaging permits the document manager to focus mostly on the information content of documents rather than the myriad of tasks involved in collecting, organizing, transmitting, storing, and retrieving paper documents.
The most important enabling technologies relevant to Electronic Document Management Systems seem to be recognology and digital imaging. The most familiar recognology is Optical Character Recognition (OCR) which is the recognition of machine printed and handprinted characters. Recognology is often an integral part of digital imaging scanner. OCR is increasingly becoming a standard feature of client server based Data Capture and Forms Processing Architectures. The use of OCR on the desktop for "Text Recognition Applications" is just the tip of the iceberg when considering the impact of the Internet and of Windows NT to Electronic Document Management Systems which address business applications involving accurate and real time "Data Capture OCR". These two main classes of OCR are commonly confused and the source of most operational issues.
This confusion for many years that OCR was associated primarily with high-speed data capture and was used in batch applications where the capture of large quantities of data was required. These applications include the Census forms, insurance claims, remittance payments, or governmental tax systems. Other than these applications, the use of forms processing and data capture technology are not understood by most information professionals. This will change in the near future.
The ability to digitize documents and electronically recognize data using the computer fundamentally alters the way in which documents are managed. These recognologies are mature and "user tested". The price of optical recognology is competitive to the point that OCR (both Data Capture and Text Recognition) will be a component in future integrated information management systems. At that time, they will be applied to applications beyond processing large batches of similar forms. Today, OCR Data Capture and Forms Processing are system components in integrated Electronic Document Management Systems digitizing and recognizing "real world" characters (data) from "real world" paper in business applications.
In financial and business applications recognition technologies (recognologies) are used to decrease the reliance on manual key data entry. The term "recognology" is used today to refer to the technologies that recognize characters and marks from images in Forms Processing and Data Capture Systems. Optical Character Recognition (OCR) includes all of these recognologies. OCR is often used on the same EDMS that also employs Magnetic Ink Character Recognition (MICR) and Symbolic Recognition (bar codes). All of these recognology tools are available for Information Managers today. Newer, faster, cheaper, and more reliable tools will be available in the next millenium.
In 1999, we expect the overall United States Market for electronic document imaging and information systems to be about $10.4 billion. This is an increase of 24% over the same market in 1998. In 1999, we expect that 48% of the overall U.S. Imaging and Information Market will be services (i.e. 52% products). The Electronic Image Management (EIM) Market for the forms processing products and services segment is forecast to be $8.7 billion in 1999. The overall market for item processing products and services is projected to be $1.7 billion. In strategic terms this means that the overall markets for forms processing are more than 5 times larger than the overall markets for item processing products and services. But that’s the view of the markets from 50,000 feet. What does the forms processing and data capture segments of the market look like from 10,000 feet? At 10,000 feet, we can discern the Forms Processing Software segment from the Workflow, Storage, Indexing, Services, and Retrieval segments. What we see is a market segment consisting primarily of four market sectors with a total projected Served Available Market of $146 million in 1999. In 1999, this market segment is being served by at least 12 suppliers. By 2000, the number of suppliers serving the Forms Processing Market is expected to be four or five due to mergers, acquisitions, and liquidations. We can expect the 12 major players today to be affiliated by merger, acquisition, or strategic relationships into the surviving companies by 2000. In 1999, there will be intense competition for market share in the $146 million Forms Processing product market. This expanding market will be shared by the successful suppliers who focus and survive over the next few years.
From 10,000 feet, the U.S. Forms Processing and Data Capture markets are large and robust. The enabling technologies are available today but improved and more cost effective technologies and "tools" are becoming available each year. However, the "Law of the Market Jungle" will prevail in the near future. That is, there will be one or two successful suppliers serving the differentiated market sector and one or two serving the community sector. Thus, there will be 4 or maybe 5 "Stars". Unfortunately there will be 7 or 8 "Dogs", who didn’t make the "cut".
That is my view from 10,000 feet. What is yours at sea level (the real world)?