Magazine Article | September 1, 2000

Up-Front Consulting Profits Document Management VAR

Document Conversion Associates has grown steadily over the past seven years from a small consulting company into a full solutions integrator. Solid engineering backgrounds helped cofounders Cindy and Wes Knowles grasp and implement technology. The husband and wife team's free consulting up front helped them snare clients like Prudential Insurance, Aetna U.S. Healthcare, and the City of Philadelphia.

Business Solutions, September 2000

A little document management and forms processing dancing up front might win your next sale. First, get your foot in the client's door, then educate the client, and finally, convince the client that you're the expert. Of course, you'll want to make sure the client is serious about a new document management and imaging system. Just because you might be a small integrator, don't think you can't get your foot in the door of a large corporation.

"We're seeing large corporations appreciating the value-added service of a small integrator," said Wes Knowles, vice president of Document Conversion Associates (DCA) (Annandale, NJ). "These companies want to concentrate on conducting their own businesses."

"During a demonstration," said Cindy Knowles, president of DCA, "we use the customer's documents and forms and bring the system up live, so the end users can have a hands-on experience. This shows the customers just what the new system can do in their own environment."

Prototyping doesn't need to involve a lot of capital outlay for a VAR. In DCA's case, it has enough scanning equipment stored in-house that it doesn't have to buy additional hardware or software for a prototype. But most times, DCA builds the demo system on a smaller scale than what the final installation will involve. A prototype might use a smaller scanner with a PC instead of with a server and will mimic the application on a lesser scale.

Sometimes the prototype is not much smaller than the actual final installation; but other times, the actual installation will be much larger. "In some deals," said Cindy Knowles, "we take the prototype out and replace it with a $35,000 system. In other deals, we replace it with a $200,000 system."

Show Your Customer How Much More Work Can Get Done
When the prototype is set up, DCA gets a lot of the customers' template work done for them, which a customer certainly can't complain about. DCA's main selling point is that its solution will reduce labor costs. A typical prospect will have 20 staff members keying information from documents. "We install a prototype and let it run alongside the staff to show how much more work can be accomplished with just one scanner," said Wes Knowles.

The greater efficiency of a new system is proven whether DCA demonstrates a scanning, imaging, or document capture system. To further enhance efficiency, DCA uses bar code technology for document separation in some applications. This shows the customer the economy of scale involved with purchasing the system. (Economy of scale means reduction in cost per unit, which results from increased production. Increased operational efficiencies will result in a lower cost per unit). In other words, the system often pays for itself very quickly.

For almost a decade, DCA has been helping its clients reduce costs by improving efficiency. DCA delivers document management technology that streamlines the process of converting paper into searchable, electronic images. Though the size of DCA's customers has always been healthy, the size of each deal has been steadily growing over the years. The company is finding its niche in the area of forms processing and Web-based imaging. "Our role has changed," said Wes Knowles. "Now we do the job from start to finish instead of recommending a product and having someone else install it."

DCA started as merely a sole proprietorship doing consulting work in document management and forms processing, but now has 5,000 hours of forms design experience and template design. It has dealt with insurance, market research, and fax forms.

"We also have technical knowledge in data capture," said Cindy Knowles. "Some customers need the best imaging capture. They already have the back end of the document management system, but need a better front end capture system. We give them those efficiencies. That's what we did with Nabisco."

Have you ever heard of Nabisco? Nabisco is an $8.27 billion international manufacturer of biscuits, snacks, and other premium food products. The company markets products in the United States, Canada, and more than 85 other countries. Nabisco already had a document management system in place, but needed a better front end capture system. Recently, DCA installed five Bell & Howell scanners and Kofax Ascent software at its Wilkes-Barre, PA, facility.

Integrator Finds Opportunity In Proof Of Delivery Marketing
DCA will be exploring the proof of delivery (POD) market in its next installation at Nabisco. Other companies, like those in the trucking business, also need POD systems. Proof of delivery specifies delivery information in terms of the date and time delivered. It also provides the name of the person who signed for the package.

A POD system needs a robust front end capture system. Trucking companies need to scan and archive delivery paperwork. If Wal-Mart says it didn't receive a shipment, Nabisco won't be paid. A POD system pays for itself very quickly because the supplier is paid much quicker.

Trying to keep up-to-date with new technology is DCA's biggest challenge. Cindy and Wes Knowles know that the competition is always waiting right around the corner. While DCA offers a favorite line of products, another VAR might be selling the same technology using a different product suite. "We are sometimes bidding against each other," said Wes Knowles.

"Since Wes and I are principals in the company," said Cindy Knowles, "we must know the technology. Our employees stay with us for years and have gained vast amounts of experience. Sometimes when we're going head-to-head with a competitor, the competition's salesperson only has six months experience. We have the knowledge and the longevity." Cindy Knowles continued, "Then, it gets down to who has the relationship with the client. Who is doing the better job in the presales department? That's where we most often win."

Often, a small integrator will have to prove itself before a customer will trust it. This means that the small integrator might have to take the risk of doing consulting work without the guarantee of payment. That shouldn't scare off too many small integrators, though. They're used to taking risks.

Questions about this article? E-mail the author at AnnD@corrypub.com.