Posts tagged: ECM

“Hyland buys Kofax?” Not quite…Thoma Bravo buys Lexmark Enterprise Software. “Who’s Thoma Bravo?!”

Steve Pearl
 May 11, 2017

Logos

“So…what do you think about Hyland’s purchase of Kofax”?  That’s how conversations in the past few days usually start out. Which then lead to explanations of who Thoma Bravo is.  Some background and perspective is clearly in order…

The Facts

Hyland Software’s majority owner, Thoma Bravo, one of the largest private equity firms in the SW industry, announced a definitive agreement on May 3rd to buy Lexmark Enterprise Software (LES), consisting of Kofax, ReadSoft and Perceptive Software, for a reported amount of $1.5 billion. Read more »

Sharp National Dealer Meeting – Turning The Corner, Abounding Enthusiasm

David Ramos
 Dec 11, 2015

I have just returned from the Sharp National Dealer Show held at the JW Marriott San Antonio Hill Country Resort & Spa in San Antonio, Texas.  Quite frankly I could do a positive write up on the event based on that fact alone just because I love Texas!  But I’ll keep it professional and focus on the host (Sharp) and their event content but first let’s get some housekeeping items out of the way before I do a deep dive on the most exciting facets of the event.

Unless you have been living on the moon, you know that Sharp has struggled financially.  In May, they unveiled an annual loss of $1.9bn.  However, my prediction is that Sharp will never die and they will continue to evolve and adapt.  This is not to understate the issues they face, only to emphasize the fact that Sharp, like many companies that have confronted this class of challenges before them will most certainly evolve and adapt.  Executive Managing Officer of Sharp Corporation and President of Business Solutions, Mr Kazushi Mukai stated in the General Session to open the event, “As you have read in the news, Sharp is struggling through the restructuring process of transforming from its legacy categories which have been accumulated throughout history.  However, while it has taken a lot of time, we are basically through that change.”  So, let me make the statement again, they (Sharp) will continue to exit certain businesses; they will most certainly evolve and adapt to the changing industry landscape, but SharpWillNeverDie.

The message throughout the event was on Sharp’s commitment to B2B business, not consumer expansion.  Doug Albregts, President – Sharp Imaging and Information Company of America, stated “The B2B world is about relationships and we will work hard to expand your opportunities in this market” and have positioned Sharp for growth through B2B with a number of tactics:

  1. People
  2. Training
  3. Simplifying Programs
  4. Improving Delivery Times
  5. Working Capital
  6. Tech Data
Doug Albregts

Doug Albregts, President – Sharp Imaging and Information Company of America discusses relationships and partnerships.

How has this strategy and execution started to pay off?  Sharp had their 6th straight fiscal of revenue growth for SIICA despite exiting non-core businesses.  In spite of all the challenges, MFP revenues also grew 6.5% over the prior period and the profit story is equally impressive.  Last fiscal, the Sharp US Document Business was one of the most profitable in their history.  SIICA grew its operating profit by 145% vs. the prior fiscal period.  That is a foundation of results they can continue to build on.

The Sharp team was very excited and enthusiastic about this meeting, and rightly so, as it kicked off the strategy that Doug Albregts and his team had carefully been building over the last 2 years and of course, they also had some new print devices to launch.  New products from workgroup color to high speed mono…I want to be brutally honest here, I am NOT a widget guy.  The widget is the least fascinating piece of our industry to me, even back to the time when I was selling said widgets down the street in my first job at Xerox.  I am more from the business vein of building solid relationships with my clients and solving business problems, the widget is just a mechanism to help accomplish that (I can hear the collective whining from the industry “Gear Heads” as I write this piece, get over it Gear Heads).  Are we clear on my feelings about this?  Because it’s really important as to what I am about to write next, which is something I have never ever once said or written, ever.  One of the most exciting moments during the event, if not the most exciting moment was the launch of 10 new clean sheet design A3 product line in the 30 – 60 PPM range (click the link and read all about it). All models will use the same engine, accessories and most importantly common parts and supplies, making this one of the easiest product lines for service operations to support.

Did you read that last part?  This is how exciting it was for the participants, just so I paint you a clear picture.  When Shane Coffey, Senior Director, Product Management at Sharp Electronics, presented the new product line up, Dealer Principals, Sales and Services leaders, all in the audience literally shouted with enthusiasm and everyone in the audience was vigorously applauding…over a widget launch people, a widget launch!

image1

Shane Coffey, Senior Director, Product Management & Mike Marusic, Senior Vice President, Marketing, Supply Chain and Service discuss launch of 10 new models built on clean sheet design.

Now here is why the announcement was met with such enthusiasm by Sharp constituents.  Almost 70% of operating income contribution in the dealer business model (most commonly and affectionately referred to as the Tom Johnson model) is derived from service operations.  So when you create a product platform that locks in the same cost structure for the 30ppm device that you will receive on the 60ppm device and all speeds in between, and reduce parts and supply expense and oh by the way, reduce “Car Stock” for technicians, you immediately drive; improved cash flow for your dealers, improved operational efficiency for your dealers, and improved profitability for your dealers.  One of the number one complaints I hear from dealer principals and service leaders is that of their manufacturers developing too many models with no commonality from one product to the next and increasing the difficulty for the dealer to manage the service component of their business.

Dealer principals and service leaders repeatedly state their challenges when it comes to service efficiencies coming in variations of the following:

  • Predictability of service events
  • Risk of bad products
  • Parts and supply stocking and ordering
  • Financial risks due to improper inventory management
  • Parts car stocking and deployment
  • Territory structure at the technician level
  • Hitting service productivity benchmarks

The new product line up was designed based off Dealer feedback and will certainly have a positive impact for all of the Sharp partners.  Sharp’s product fair showcase was also excellent and one of the best I’ve seen in a long time, with over 60 partners showcased such as YSoft, DocuWare, MWAi Forza, Print Audit, the Business Technology Association and many more.

Sharp has made significant improvements in its restructuring, they continue to invest in the office technology space, they have further expanded their partner network, and, most importantly, they are highly committed to the office equipment dealer channel with the right programs and product design to improve dealer profitability and operations.  With a strategy like this Sharp, will never die!”

Xerox Evolving in 2015 with New Product Announcements

Allison Correia
 Apr 28, 2015

Xerox, a leader in document technology and services, today announced several new solutions and services that will add to their history of innovation. Xerox’s Large Enterprise Operations (LEO) is aligning its services offering by key vertical market to connect MPS & BPO. Read more »

Kofax Lands $2.4 Million Deal

Allison Correia
 Apr 24, 2015

Despite the proposed acquisition of Kofax by Lexmark, Kofax is going about business as usual with the recent announcement of a $2.4 million deal with a leading U.S. financial services firm. Just days ago, Kofax, a leading provider of smart process applications that simplify the business critical First Mile of information-intensive customer interactions, announced that an undisclosed leading U.S. bank has invested in Kofax TotalAgility to automate their banking operations including new customer onboarding, and loan application processing. Read more »

Doxnet 2013: Strong Attendance with an ECM Focus

Ralf Schlozer
 Jul 1, 2013

This year’s Doxnet conference and exhibition, held from June 17th to 19th in Baden Baden, Germany, was remarkable for two reasons: strong attendance and a focus on Enterprise Content Management (ECM). Doxnet (www.doxnet.eu) is a not-for-profit association for document experts and companies active in document management – usually for mission critical documents and traditionally with a focus on print output. The geographic focus is on German speaking countries and for obvious reasons the majority of members come from Germany with smaller shares from Austria and Switzerland. The event had 613 attendees pre-registered from a total of 218 companies, setting a new record attendance. The exhibition hall had strong representation from manufacturers of inserting equipment, but less so for printing system manufacturers, with only Canon/Océ, Pitney Bowes, and Ricoh exhibiting. There was also a strong showing in the area of electronic document solutions from software to service providers for electronic alternatives to printed statements.

Read more »

Owning the Content Lifecycle: Adobe Acquiring Day Software

Other Posts
 Jul 29, 2010

Yesterday, Adobe announced its public tender offer to acquire Switzerland-based Day Software for $240 Million ($USD), which is expected to close by the end of 2010. Day Software develops and sells content technologies, including CRX, a Java-based enterprise-level content repository, as well as CQ5, which can be utilized for Web Content Management, Digital Asset Management, and social collaboration. The move is an interesting, although not necessarily surprising one by Adobe, a company that has been fairly aggressive with strategic acquisitions over the past few years. Its recent acquisitions of Web analytics firm Omniture and online business platform Business Catalyst have underscored Adobe’s pursuit of moving beyond developing tools to create content, as well as its increased focus on digital content. The Day Software acquisition pushes Adobe further in these directions and brings up a number of considerations.

Read more »

Open Text Analyst Event

Anne Valaitis
 Jan 18, 2010

I had the opportunity to attend the Open Text Analyst Event in Boston on January 13th. This annual event provides Open Text the opportunity to share their current marketing and product strategy plans.  The event format seemed to follow others I have attended as well as past Open Text events (there were no show stoppers or game changing announcements this time around). Open Text provided information to the hungry analysts by way of plenty of powerpoint to chew on in the morning session.  The sound of laptops and tablets tapping away (I chose old school pen and composition notebook) was the background hum to each presenter.  The executive team, some of which are relatively new to Open Text, each presented their area of expertise and built upon the last digging slightly deeper as we went along . In an effort to change the tone (and maybe to push back the post luncheon yawns),  the afternoon provided a “speed-dating” (we all joked about it) atmosphere, sitting with select members of the executive team for short bursts of time.

If you don’t know who Open Text is, they are a multi-national company that manages content for hundreds of brands (BMW, Sony, Citibank, Pfizer and Coca Cola just to name a few) and states more than 100 million users in over 50,000 deployments worldwide. So if you don’t know Open Text, you certainly know the companys whose content they support.  And there is no shortage of content, content that is growing exponentially every day, in fact there is an explosion of content from email, text, social media, traditional business applications, newspapers, video, music and books.

Open Text is essentially an ECM vendor and over the years has amassed many different brands including: Vignette, Hummingbird, LiveLink and Captaris to bolster its position and portfolio. Acquiring many discrete businesses has been no small endeavor and in fact has taken time to rationalize under one “Suite” or umbrella offering. Open Text demonstrated how the suite will serve all layers of the enterprise experience from the user level to process level integration and to the base library level. It remains to be seen just how successful this unified message will carry, Open Text themselves admits a lower than preferred penetration into existing customers

And how is Open Text innovating for the future…by learning to play the game Halo…no seriously, Tom Jenkins, Open Text Chairman and Chief Strategy Officer, shared with us his newly acquired skill as a gamer, this Jenkins admits, provides him the ability to truly understand how this next generation consumes content digitally, and their expectation of the digital experience…it was probably fun too!

Expect Open Text to go deep this year…to the heart of the customer, the heart of their own business all with a focus on innovation and mobility.

If you think you know Kofax – think again

Anne Valaitis
 Oct 27, 2009

Kofax recently wrapped up their annual conference – Transform 2009 in San Diego, California. With over 425 in attendance, this audience was a mixture of partners, vendors and end-users. Kofax, founded in 1985, has undergone nothing short of a complete overhaul in the last 18 months. Most changes are thanks to CEO, Reynolds Bish. Bish, former founder of Captiva, spent his first few months with the company identifying many areas in need of serious modification and then went about implementing this revolution of strategic business change.

One of the first major initiatives was to change the name — formerly DICOM group plc, to Kofax. Meant to eliminate confusion with the brands, and quite frankly bring about global synergy among the disparate business units (which according to Bish was sorely lacking), hence the Kofax name was adopted in February 2008.

Next, Bish set out to renovate the management team, making several changes to business unit heads and senior sales staff. The majority of these changes, according to Bish, were to bring experience and leadership to a company that was operating quite separate.

One of the most interesting announcements from Kofax came in September with the acquisition of 170 Systems. A leading provider of financial process automation software, the Markview suite of products provides invoice processing and workflow functionality.  This acquisition could provide a turnkey A/P solution from a single provider, Kofax.

It became clear that Kofax has been busy…Transform was an appropriate event theme this year. Companies that can demonstrate agility and flexibility will ultimately survive and prosper. Arguably an enormous task, not without consequence and fallout, Kofax has seemingly positioned themselves to address the market, and customer needs with product and services.

Kofax Corporate Mission – To be the leading provider of
document driven business process automation solutions

The Elusive Software Pull-Through?

Other Posts
 Jul 1, 2009

It started when I saw the open-source model gain momentum in the content management space a la Alfresco, Drupal, Joomla, Nuxeo, and several others. The no-license model clearly had potential, especially given the associated services and support revenue streams we were seeing. In fact, my own (commercial) ECM market numbers indicated that license revenues were typically less than 1/3 of large deals anyway. Fast-forward.

Early this month, on an earnings call with HP, our hosts implicated that they’re playing in a “free license” market. Their competition was giving away software, they claimed, to capture coveted services and support revenue streams across a contract. Once again, I was intrigued but not altogether shocked — this was, after all, a buyer’s economy for technology solutions, and shrinking license margins were no surprise. Fast-forward once again.

EMC recently announced that they were giving away developer’s editions of Documentum. Although it will likely improve their overall revenue ‘ecosystem,’ it’s certainly a new move for a platform that otherwise costs developers plenty to work with in the past. Just another drop in the bucket, though.

Enter FatWire and their PR a few week ago– Read more »

Get on the DAM Boat!

Other Posts
 Jun 3, 2009

Bryan Yeager and I spent Monday of this week at the Henry Stewart DAM Symposium in NYC. For those unfamiliar with the space, digital asset management (DAM) technologies are used to manage multimedia assets such as images, digital photos, audio, video, 3D renderings, and Flash-like animation. We’ll be posting video InfoCasts with vendors from the event this and next week as well as a more detailed analysis for clients.

Why should you care about DAM?

InfoTrends research in 2006 indicated that over 25% of ALL business content is in multimedia form, excluding presentation formats that often embed this media. Read more »

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