Document Process Outsourcing - InfoTrends · life cycle to help customers improve internal business process components Outsourced print and Value-Added Services Phase 4 Transfer of

97 Libbey Industrial Parkway - Suite 300Weymouth, MA 02189Phone: 781.616.2100

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Document Process Outsourcing

Business Strategies for Successful Market Engagement

Holly MuscolinoDirector, InfoTrendsJanuary 2006

00000000 297 Libbey Industrial Parkway Suite 300 Weymouth, Massachusetts 02189 www.capv.comCopyright © InfoTrends00000000 2© 2006 InfoTrends www.infotrendscom

Agenda

• Introduction to Document Process Outsourcing

• Study Objectives, Methodology and results


Business Document Lifecycle

Obsolescence

CustomerInterface

Warehousing/Archiving

Fulfillment/Distribution

(multi-channel)

Printing/Finishing

Proofing, Approvals

DataManagement,Personalizing

Creation,Imaging,

Input

Concept, Design

Request


Evolution of Document Services C

usto

mer

Val

ue

Complexity

Phase 3Evaluates the entire document life cycle to help customers improve internal business process components

Outsourced print and Value-Added Services

Phase 4Transfer of an entire business process to the outsourced service provider

Document ProcessOutsourcing

Phase 2Print production and fulfillment with elements of complexity and customization that require an understanding of customers’core business requirements

Outsourced Print(on, off site)

Phase 1Printing and Finishing on a project basis

TraditionalSpec and Bid Print


Document Outsourcing Defined

The delegation to a supplier of the capture, imaging, conversion or the creation,

production, processing, printing, mailing, electronic transmission, and/or fulfilment of any type of printed or electronic document


Examples of Document Outsourcing Services

Data Center

Office Copy Center/CRD/In-plant Print Shop

Mail Room

Centralized Copy/print/bind servicesData center print servicesCentralized equipment service/maintenanceCreative ServicesDocument Scanning

Records managementData hosting/database

management servicesLegacy data conversion

Mail servicesInventory ServicesFulfillment Services

Fleet management of copiersFleet management of networked printersFacsimile services

Content management servicesPersonalization or customization servicesArchivingSoftware integration servicesDocument consulting services

Printing of statements, bills, and invoices

Electronic presentment andpayment services


$749

$21,228

$2,565

$6,997

$1,525

$25,591

$2,667

$8,496

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

On-Site ContractedServices

Statement Printing Off-Site ContractedServices

DPO

2004 2009

U.S. Document Outsourcing Forecast by Environment ($Millions)

4.0% CAGR

0.8% CAGR

3.8% CAGR

15.3% CAGR

$31.5 Billion Market in 2004

Source: InfoTrends/CAPV, U.S. Document Outsourcing Market Forecast 2004-2009


€ 559

€ 13,196

€ 2,673€ 3,192

€ 2,174

€ 16,558

€ 3,337€ 4,585

€ 0

€ 2,000

€ 4,000

€ 6,000

€ 8,000

€ 10,000

€ 12,000

€ 14,000

€ 16,000

€ 18,000

On-Site ContractedServices

Statement Printing Off-Site ContractedServices

DPO

2004 2009

W.E. Document Outsourcing Forecast by Environment (€Millions)

7.5% CAGR4.5% CAGR

4.7% CAGR

31.2% CAGR

Source: InfoTrends/CAPV, Western European Document Outsourcing Market Forecast 2004-2009


What is DPO?

• Document Process Outsourcing (DPO) is the assignment of an entire document-intensive business process to an external provider


Defining the DPO Supplier/Customer Relationship

Lifecycle controlled by

business rules

DPO Service Provider

Input

Output

Report based on predefined metrics

Unstructured or structured content

DPO Customer

Delivery to end-userStructured or unstructured content


DPO Engagement vs. Traditional Document Outsourcing Engagement

• Contract begins with, and focuses on, business process and metrics associated with that process, rather than specific document services

• Requires vendor understanding of business processes in specific vertical industries


DPO versus BPO

• The outsourced process includes management of one or more document lifecycles– The service provider assumes ownership of a

set of business rules that control the document lifecycle(s)

• Document domain expertise is required to effectively manage the business process


Examples of Document-Intensive Business Processes (1 of 2)

• Customer-facing document processes

– Client account lifecycle management, including:

• account activation services• new enrollment

communication• multi-channel delivery of

statements, and other account documents

– Medical claims processing

• Technical document processes– Maintenance and distribution of:

• technical service bulletins• manufacturing supplier

technical documents• product design specifications • repair manuals• blueprints and/or technical

drawings


Examples of Document-Intensive Business Processes (2 of 2)• Financial accounting and invoicing

document processes– Accounts receivable dispute resolution

management– Accounts payable invoice matching

management– Invoice processing (or invoice

exception processing)– Loan origination management– Credit card application management

• Marketing and communications document processes

– On-demand customer collateral fulfillment

– Literature management for distribution channels

• Regulatory compliance document processes

– Sarbanes-Oxley or HIPPA compliance

– HR records management


Study Objectives

• Gain an in-depth understanding of the North American Document Process Outsourcing (DPO) market, including competitive landscape

• Obtain detailed knowledge required for effective business planning

• Learn how to address the rapidly-growing DPO opportunity and develop go-to-market strategies

Look beyond market size and growth potential to understand the “who, what, how, and why” of the document process outsourcing business


Questions Posed• What is the level of willingness to outsource document-intensive

business processes?• Who is currently outsourcing document intensive business

processes? What industries? What lines-of-business?• Does the concept of document process outsourcing resonate

with high-level executives?• Who are the ultimate DPO decision makers?• Which processes will be outsourced? By what metrics will these

processes be measured?• How should DPO engagements be structured?• What are primary selection criteria for DPO service providers?

What domain expertise is valued?• How important are global capabilities?• Who are the leading DPO service providers today? Who will be

the leading DPO service providers in the future?


Methodology• Quantitative

– Web-based survey conducted in September of 2005– 589 respondents across a range of company sizes, vertical

industries, and departments

• Qualitative– Online focus groups and telephone interviews with managers

in each of the following groups of functional areas:• Finance and Accounting, Procurement, Information Technology

and Operations/Manufacturing• Sales and Marketing• Human Resources, Training and Customer Service • Legal


Bulletin Board Focus Groups

• Uniquely designed for market research on the Web

• Focus group occurs over 3 days allowing for highly involved discussions

• Participants free to login at their own convenience and spend time providing thoughtful input

• Can have private or group discussions• Automatically generates detailed transcripts


Secondary Research

• Annual reports and SEC documents• Periodicals and trade articles• Web sites• White papers• Published industry reports• Industry databases• Research reports


Deliverables• Detailed written report (40 pages) with text and charts

addressing the objectives of the study and providing complete results– Includes executive summary that addresses key issues,

findings, and overall recommendations

• Presentation-style slides for internal communication of the research results (115 charts)

• Detailed data tabs of quantitative research (36 pages)• Appendices including quantitative and qualitative

surveys (19 pages)• Optional transcripts of online focus groups and

telephone interviews (176 pages)• Optional, on-site briefing


Key Takeaways from Study (1 of 2)

• Educate customers and prospects about opportunities presented by DPO– Understand the difference between DPO and BPO and between

DPO and traditional document outsourcing– Be open to the possibility of “pilot” programs to demonstrate the

value of DPO

• Start with your existing customers– Identify areas where you can add value and incrementally take on

the responsibility to deliver it– Look for adjacencies to their your existing offering


Key Takeaways from Study (2 of 2)

• Develop proven methodologies for measuring your starting point and your progress– Establish the baseline and show how you can handle the process

at the lower cost and with improved service– Expect to be proactive with new ideas to increase efficiencies and

increase customer share

• Be prepared for a consultative sale and long sales cycle– Ensure that you have sales personnel with the correct skill set and

appropriate compensation– Understand that in an early market, you must frequently identify a

project champion, and partner with that individual to sell the engagement to the organization

97 Libbey Industrial Parkway - Suite 300Weymouth, MA 02189Phone: 781.616.2100

Fax: 781.616.2121www.infotrends.com

00000000 23© 2006 InfoTrends www.infotrends.com

Holly MuscolinoDirector, Production Workflow Solutions Service

[email protected]

Thank You!

Documents

Document Process Outsourcing - InfoTrends · life cycle to help customers improve internal business process components Outsourced print and Value-Added Services Phase 4 Transfer of