Graduating To High-End Installations

When Roger Tausig founded Imaging Solutions in 1994, he wanted to be able to provide a document and image management system to customers of any size. Of course, he had to walk before he could run. During the first few years of operation, Tausig decided to opt out of several potential large document imaging projects. He would either remove himself from consideration or not respond to a request for proposal (RFP) that crossed his desk.

"It was tough thinking that a customer had a million dollars earmarked for a document management project and we couldn't handle it with our current product selection," recalls Tausig, president of Imaging Solutions. "But, we didn't want to take on any job unless we had the expertise to handle it. We now have that expertise. We can walk into any prospective account, listen to their business requirements, and come back with a suitable solution."

Gaining this experience did not come easy. The 12-employee company first built a large install base of smaller document imaging systems that averaged about 25 users apiece. Based in Wallingford, CT, Imaging Solutions then partnered with several new vendors that allowed the integrator to provide enterprise-wide document imaging solutions. Since graduating to the next level of document imaging installations, Imaging Solutions has seen its gross sales increase 30% in 1998 to $3.1 million.

A New Customer, A New Product
Moving from smaller document imaging installations to larger ones often means handling a new product from a new vendor. Such was the case with Imaging Solutions. In order to secure its first large project, the company contacted Plexus (Sunnyvale, CA) to resell its document imaging products. "Be it right or wrong, most relationships with vendors are deal driven. A customer is asking for a capability you don't have in your repertoire. And, you sign with a vendor that has this particular capability," states Tausig. "When you take on a vendor's product, it should be a natural fit for your company and you should expect to sell it for a long time. You shouldn't jump on a new product just to close a deal."

Taking on Plexus' products was not a hasty decision to close a deal for Tausig. He was very familiar with the company and the capabilities of its products because one of his employees had worked for Plexus for several years. He also knew that his company would continue to offer Plexus' products well into the future.

Armed with a high-end document imaging product, Imaging Solutions was able to secure an account with United Healthcare (UHC). UHC has a service bureau that scans between 400,000 and 500,000 documents per day. The scanned images are pushed into Plexus' storage management system. "We wrote an application that allows users to retrieve images via the UHC intranet," says Tausig. "With a click of a button, users can retrieve images based on the transaction they are working on at any minute. It was a very big project."

Position Yourself For Large Customers
The installation at UHC was the second large deal closed by Imaging Solutions. While the integrator is currently involved with a second phase of the UHC project, the installation has already accounted for about $1 million in gross sales for the company. With annual gross sales of $3.1 million, there is no question that Imaging Solutions can support a 25-user, $50,000 document imaging system. However, when integrators are trying to sell a million-dollar solution, they must tailor their sales pitch. For Tausig, it is all a matter of positioning his company correctly in the eyes of the customer.

He uses the example of a contractor who is building a house. There may be three people responsible for actually building a house. But, there are a lot of people involved with producing the materials that go into building that house. "We position ourselves as the builders, not the producers of the product," says Tausig. "We have to make the customer understand that our role is consulting, project managing, and development. And, it is a small group of people that is required to actually assemble and install these systems."

Additionally, Imaging Solutions is quick to point out to customers that it has the support of the vendor of the product it is using. "Vendors are usually substantial companies, and that can provide some comfort to a customer. We also explain that we have a vendor's professional services group on our bench. We can press them into action at any time."

Making The Investment
Moving up the ladder of document imaging installations often requires taking on new products with advanced capabilities. Tausig warns that integrators should never learn about their new product at a customer site. Instead, they should become expert in a new product before offering it to clients.

To accomplish this, Imaging Solutions makes sure each new product is operational at its headquarters before reselling it. When the company signed with Plexus, it invested in a new server and network upgrade. The same is true when it became a FileNET reseller. Having the software installed at company headquarters allows Imaging Solutions' employees to become proficient in working with and configuring the software. Tausig says it also allows them to discover all the "undocumented features" of the software. "You have to install the product and work with it. And in most cases, you need to make this investment without having a deal in place. You have to be willing to make an investment in your infrastructure if you are taking on a new product," advises Tausig.

Don't Forget Where You Came From
While Imaging Solutions can now offer high-end document imaging solutions, the company has not turned its back on its established mid-range customer base. In fact, the integrator continues to do brisk business in the under-50-user document imaging market.

The high-end systems allow Imaging Solutions to charge for professional services that include consulting, development, and system design. All the income generated from offering customers Imaging Solutions' intellectual property "drops straight to the bottom line." Conversely, smaller document imaging systems require fewer professional services from Imaging Solutions. Still, Tausig says these systems remain profitable. "The smaller systems keep cash flowing and allow our company to be profitable while we hunt for bigger game," comments Tausig. He also says an integrator can never tell if a small installation might one day grow into a much bigger system. "We service our customers regardless of the installation size. You can't underestimate the potential of those acorns that may grow into oaks," adds Tausig.

Be Ready To Back Your Sale
Any document imaging integrator who is trying to move from mid-range installations to high-end solutions must be prepared. Tausig says they must ask themselves if they are truly able to offer what customers require at the high-end of the document imaging market. "Some integrators remind me of a dog chasing a car. Did you ever wonder what would happen if the dog actually caught the car? He would get creamed," says Tausig. "But, that's what happens. You have a lot of dogs chasing cars. Integrators want the high-end jobs because they see the dollar signs, but they aren't equipped to handle the jobs once they land them. You can sell very well, but you have to back it up."