Make Workflow Work For You

Selling commodity products is a straightforward process. Customers know what they need, and they simply place an order with a VAR or distributor. It's typically a quick low-margin transaction.

If selling commodities is at one end of the sales spectrum, then selling workflow, document management, and imaging technologies is at the opposite end. Often, customers don't know specifically what hardware and software products are required. They don't have a defined path for future implementations. And, they aren't quite sure if their entire enterprises will be affected.

For VARs and integrators, this customer uncertainty leads to high-margin sales. It also allows departmental solutions to be expanded throughout an entire company. As an integrator, SYSCOM, INC. has embraced workflow and document management technology and capitalized on its sales and consulting skills.

Headquartered in Baltimore, SYSCOM reported $33 million in gross sales in 1998. The Workflow and Document Management Division of the company accounted by $18 million of that total. The balance of company sales come from the remaining three divisions that handle training management, human resource management for state governments, and small networking projects. SYSCOM has a total of 230 employees with 110 people working in the Workflow and Document Management Division.

Success for the Workflow and Document Management Division has come through comprehensive installations. Often, customers don't realize the extent that workflow and document management will influence all business processes. Starting with a single department within a company, SYSCOM shows its customers the big picture. The company helps its customers create a vision.

Getting Past The Front Door
While SYSCOM does not think of workflow and document management technologies as a Trojan horse, it is an apt analogy. Customers are receptive to integrating this type of technology, but they often don't understand the implications. Workflow and document management technologies open the door for SYSCOM, and the integrator expands its presence once it crosses the threshold.

"Workflow and document management technology reveal other areas in a business where there are opportunities for improvement and automation," says Gary Broche, vice president of operations at SYSCOM. "Workflow touches so many aspects of customers' businesses that they have not even considered. We start selling to a specific department within a company and, before you know it, we are reengineering a company's mailroom functions. It is all about how a company operates and improving those processes."

To a large degree, SYSCOM find that many of its customers have blinders on when it comes to implementing a workflow and document management solution. Even if a company starts with the accounting department, the mailroom may indeed be part SYSCOM's evaluation. For example, most companies have never thought about improving the efficiency of their mailroom. However, SYSCOM will look at outsourcing those functions. Or, the post office may be able to handle some of the sorting functions that are currently performed in-house. "We come in and offer creative ideas that companies have not considered. We open their eyes, and we have the references to demonstrate that our ideas have worked for other customers," states Broche.

"A Salesperson's Dream"
Some sales are easy and some are not. However, all sales are smoother when you are selling directly to decision makers within a company. Because workflow and document management technologies can be implemented on a broad scale, SYSCOM will undoubtedly meet with executive management throughout a company. As SYSCOM begins to map out a workflow strategy for a company, top-level management from every division is interviewed as part of the process.

"A company invites us in and sets up appointments for us to meet with almost every department manager. It's like a salesperson's dream," comments Vickie Wysokinski, vice president of sales and marketing at SYSCOM. "A lot of integrators have trouble getting in the front door of a company. And, once they are in, no one at the company wants to take the time to talk to them. A workflow and document management solution gives as a legitimate reason to meet with high-level officials. At that point, we sell ourselves more than we sell the technology."

Start Small, But Think Big
Regardless of the technology, VARs and integrators have to build credibility with customers in order to close deals. For its part, SYSCOM relies heavily on customer references. SYSCOM has a range of successful installs in insurance, pension, government, and Fortune 500 markets. If SYSCOM can reference a site in a prospective customer's market, the sale is bound to be easier. However, can a small integrator proceed without a list of references?

"Selling large accounts is a lot more difficult without references," relays Wysokinski. However, Broche says that smaller integrators should not abandon all hope of landing a Fortune 500 account. SYSCOM often performs a small demonstration called a proof of concept for a large client. While this tactic is not as effective as references, it can at least secure an attentive audience. SYSCOM recently implemented a loan processing application for a large bank. The application used workflow, imaging and document management technologies. "The automation of this small department in the bank saved the organization $1 million per month in interest fees," says Broche. "Neither we nor the customer expected that type of return. But, it should gave us the legitimacy to move throughout the rest of the bank."

Adds Wysokinski, "In this case, we started with a small installation, and it grew into a much bigger account. We can now reference this site in the future for similar customers. Once you get some momentum, the sales become easier."

Prove Yourself To Customers
SYSCOM is a $33 million company with solid financial statements for customers to evaluate. This wasn't always the case. SYSCOM was primarily self-funded. In large part, the integration company grew in stature by taking risks.

It is usually difficult for small companies to take risks. However, with high risks come high rewards. When SYSCOM was in its infancy, the company secured several large accounts that were "very aggressive" for the company's size. "We chose a few large installations that we determined would be very strategic to the future growth of our company. We knew that it would be a great deal of work to gain the confidence of customers. We just committed ourselves to making it successful," says Broche.

Another way to close a deal with a large customer is for a small integrator to demonstrate some expertise without charging for the service. Occasionally, SYSCOM will run into a potentially lucrative account where the customer needs only slightly more incentive to work with the integrator. In these cases, SYSCOM will perform some of the work without charging the customer. Once the customer is satisfied, SYSCOM will bill the customer for past services and then complete the installation. "Smaller integrators usually don't try this approach for one of two reasons. The first is that they have to put food on the table. Second, many integrators have large egos, and they think they should be paid for every hour they work," explains Wysokinski.

Sell Yourself First
Selling into a department is often a controlled environment. There are fewer people to influence and the decision-making process is more streamlined. However, expanding beyond the department and into the enterprise can make waves at a customer site. A customer might have a $200,000 budget for a document imaging and management solution for a department. Adding workflow technology will involve many more departments at the company.

"Integrators have to understand that workflow and document management technology will change customers' business processes throughout their companies. Customer start to get nervous when they hear integrators talking about this type of change," says Wysokinski. "In order to sell these solutions, integrators have to prove they can be trusted. They should sell themselves first and the technology second."