AIIM To Evolve

AIIM, The Enterprise Content Management (ECM) Association, recently released its fourth annual State of the Document Management Service Provider Industry Survey. A total of 235 ECM VARs, integrators, consultants, and service bureaus participated in the survey and answered a variety of questions related to business strategy and performance. While industry consolidation and direct sales competition from the vendor community have placed added pressures on VARs, the ECM channel seems to be faring well according to the survey.

For example, 74.2% of the companies surveyed reported that their revenues "increased" or "increased significantly" in 2006. Furthermore, 52.6% of those companies reported net profits in excess of 10% last year, a 6.6% increase from 2005 and an 18.6% increase from just three years ago.

The mainstream adoption of ECM technologies has certainly contributed to this positive trend. However, I believe this growth also is evidence of a channel that is learning to evolve. For example, as margins on document imaging hardware sales continue to diminish, VARs are placing more emphasis on consultation, implementation, and integration services. These services not only lead to long-term revenue, but give VARs more control over their profitability. In addition, VARs are becoming more adept at familiarizing themselves with and quickly equipping themselves to address the needs of vertical industries where ECM interests and spending are most prevalent. Evidence of this can be seen in the large number of ECM VARs entering the healthcare market, where HIPAA (Health Insurance Portability and Accountability Act) and EMR (electronic medical record) mandates are driving ECM purchases. According to the AIIM survey, 78.3% of respondents now sell into the healthcare arena, up from 66.5% in 2005.

Undoubtedly, many of you will head to Boston this month for the 2007 AIIM Conference and Exposition. As you roam the show floor, look for technologies that will help you evolve as a business. Products to consider are those that emphasize ease of use, facilitate integration through use of Web services, and allow you to optimize your service opportunities. If you can't make it to the expo, you can still learn a lot by visiting AIIM's Web site (www.aiim.org). You may want to start by visiting the site to download a full copy of the channel survey to see how you measure up against your peers.