Scanning & Data Capture Become One

Innovative scanning software has made possible the combination of scanners and document capture, image processing, and retrieval. It has also revolutionized what scanners can do. VARs and systems integrators can take advantage of these changes. To learn more about the changes, Business Solutions interviewed representatives of two scanning software developers. Curtis Abel is president of PowerScan, Inc., a subsidiary of Star Technologies, Inc. PowerScan is a Potomac, MD-based capture and image processing software developer with 30 employees. Joe Gentry is president of GenSoft, a five-employee document capture firm in Santa Ana, CA.

Outside Factors Affecting Scanning Software
Abel points out that scanning hardware is now faster and cheaper than in the past while offering 300+ dpi, color and gray scale resolution. Gentry adds that some hardware vendors now offer duplex (two-sided) scanners for the same price as simplex (one-sided). Both agree that, until recently, scanning software prices had remained fairly steady, but are now coming down as well. They attribute the lower prices to pressure from the marketplace. Gentry adds that in addition, like scanning hardware, the software is offering "more bang for the buck".

Gentry states that document capture software used to be very complicated to use, but is now much simpler for users. He adds that hard-drive storage costs are much lower. As a result, RAID (Redundant Array of Independent Disks) can be used to store images instead of some higher-end jukeboxes. Abel comments that now, software allows not only paper input, but microfilm and microfiche and digital, as well. He adds that, in his opinion, film scanning will become more popular. He says this is the case especially since robust systems can now perform the post-processing that is essential for good quality images. Both men stressed the importance of forms recognition software and the fact that it is now blending into document capture technology. Forms recognition includes OCR (optical character recognition), ICR (intelligent character recognition [cursive]) and OMR (optical mark recognition).

The Impact Of The Changes On VARs And Systems Integrators
The changes described mean there is an expanding marketplace for VARs. The lower costs for and increased capabilities of both hardware and software translate into a larger customer base. On the other hand, margins are not as high as they used to be.

So what should VARs be doing to capitalize on these changes? Both spokesmen expressed concern about the failure of some VARs to really understand the scanning/document capture/forms processing procedure itself and the probable impact on the end user. Some fail to explain to the end user the preparations that must be made prior to installation. Others don't understand the technology sufficiently, with unfortunate results.

Making Profits By Understanding Your Market
On the positive side, however, VARs who thoroughly understand the process can earn good profits, especially if they understand how the technology can best be applied. The old adage, "Find a need - fill the need", is very appropriate here. Abel says that his company, PowerScan, Inc., seeks a fairly small number of dedicated, well-trained VARs to handle its products. He adds, when VARs truly add value, and not merely resell boxes, they can effectively control the prices they ask.