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The Recession Casts a Long Shadow Over AIIM 2009


I spent Tuesday and Wednesday this week at the AIIM content management conference in Philadelphia and it was all recession talk, all the time. Not surprisingly, just about everyone was acutely concerned about ROI. It was on the lips of every vendor I talked to. It dominated the Keynote talks and CIO panel discussions. It slipped into the break out presentations I attended.

Suddenly vendors need to solve concrete business problems and show real value. ROI can't take years. Projects have to show some value in months, and even the biggest vendors recognize that they can't sell a huge monolithic system right now. You have to get a small piece and work your way forward. The question is: Why did we have to wait for a recession for these ideas to dominate the content management discussion?

Who cares about ROI?

As it turned out everybody cares about ROI. Yes, there's a recession out there, but there are projects happening. People are just being more prudent--starting off a little smaller and using that project, if successful, as a springboard to expand into other areas. There has to be a real business problem, and you have to sell the problem and the solution to the executive committee. This is no easy task when every company is clearly squeezing every penny.

It comes down to what author David Meerman Scott calls telling a story. He says everyone likes stories. Nobody likes a list of features (something I saw many vendors doing in presentations as I wandered the conference floor). I kept hearing Scott's marketing mantra in my head: "Nobody cares about your products but you." This is so true, and never was that truer than right now. You want to hear a story that speaks to your problem and you want to see a happy ending where the business problem was solved.

Starting small and proving concepts

That means companies are starting small, finding a winnable fight and then taking that win and trying to parlay that into a larger project. One executive said that it helps to find a champion and let that champion fight that fight with you.

One great example of this was Molly Wenzler who is Director of Electronic Media at Meadwestvaco, a manufacturing company with roots back to 1846. Today, the company has a worldwide presence in over 100 countries and it had a serious problem with the company website. To illustrate the problem, she gathered company executives in a meeting and put up posters of all the different looks the site had across the world. This illustrated clearly for executives the inconsistency across global properties, and that the website needed, dare I say it, to be managed centrally. Then she did something really smart.

She sat the executives down at a computer, had them open a browser and asked them to search for information on the company's best selling product. When they couldn't find it, they knew they had a problem. She had won approval for phase one of the project. She let the state of the website tell a clear and compelling story, presented a solution (web content management) and she was on her way.

Show me the money

At a panel on Wednesday on the same subject, one executive wondered out loud how much you could trust ROI projections since the object of the game is to always present ROI in the most positive light. To him, it came down to trusting his staff and recognizing they had a need to fill. Of course money matters, now more than ever, but Wednesday's panel pointed out that there are other ways to measure success including how well it solves the business problem and how well it's adopted. Do people actually use it and like it? It's not always a tangible financial measurement.

Tough times call for tough measures and customers are taking a sensible, measured approach to their purchases. But I'm still wondering, why does value, ROI and common sense only come into play in tough economic times. They may be values we would like to continue long after the recession is over. The vendors might not like the idea, but why buy something until you're sure it will bring a happy ending to your business story? - Ron

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Comments

Right on, Ron. I was not at the event, but I can imagine myself saying just that. Sometimes at events like this one, I walk the tradeshow floor and ask the people manning the booth this simple question:

"What problems does your product solve?"

It is amazing how many people stumble on this!!

Ron,

I think your argument above would apply to the larger so-called "enterprise" vendors, however, many VARS, dealers, and document conversion companies adopted the start small strategy years ago and continue to do very well in these challenging times. Proof of concept is nothing new to this group of solution providers and they continue to be successful because they do in fact show an easy ROI on their departmental and workgroup solutions - whether they are an on premise installation or a web-hosted solution.

Interestingly, in my AIIM A to Z presentation each day on the show floor, I reviewed all 170 exhibitors and not a single one provided any material in advance that said "This is the problem we solve." Guess there are still some people out there that haven't read David's books yet!

Hi David:

Thanks for the comment. I'm going to stick that question in my hip pocket and ask that the next time I'm at a conference. Should make an interesting column.

Ron

Bob,
It's amazing how few people can answer that question as David pointed out. You would think it would be on the top of mind wouldn't you? Thanks for the comment.

Ron

I agree with you all in regards to "What problem does your product solve?" In fact, as Director of Marketing for Word-Tech I am asked this question daily regarding our DocMinder product. It is one of the most valid questions you can ask any software vendor or reseller. As opposed to "What's it do" question. I enjoy answering what my product does, because it's quite simple. DocMinder allows you to set a tickler to a document and forget it. No more chasing others down for input, no more forgetting important dates and certainly no more reminding individuals of deadlines - DocMinder will do this for you.

With that said, I would have enjoyed attending AIIM 2009. But more so I would have enjoyed answering your epic question of "What problems does your product solve?"

"What problems does your product solve?" is OK for some vendors, but runs into problems with others.

In some cases, it is overly simplistic. What answer does the vendor give when the vendor has multiple products targeted at solving many significantly different customer problems?

Replying "Our current 500+ customers are solving several hundred discrete business problems using our 70+ different products we offer; shall I list them all for you?" usually doesn't result in a "Yes, please." :-)

So we try and determine what the person who walked up to our booth does and what issues they are currently facing; that narrows down what we solutions and products we tell them about.

I agree with Ron. Our customers are still funding and implementing IT projects, but they must show a quick (usually 12-18 month) ROI to move forward.

Thanks,
Stephen D. Poe
VP, Product Management
Crawford Technologies

The emailed material (reproduced below) we provided, in advance, for Bob Zagami's AIIM A to Z presentation detailed a number of examples of "the problems we solve" with our highly custmizable enterprise search development platform.

Featured Product: Thunderstone's Texis RDBMS optimized for full-text search

* TEXIS, the innovative development platform behind Thunderstone's entire line of enterprise search products (including Thunderstone Search Appliances,) lets users and developers incorporate their own unique knowledge and expertise into customized search solutions that easily integrate with other applications. It intelligently queries and manages databases containing natural language text, numeric values, standard data types, geographic information, images, video, audio and other payload data.

* TEXIS supports zero-latency data insertion, providing immediate search availability of new or rapidly-changing data without waiting for scheduled index updates. It powers many diverse, real-time and integrated applications such as message profiling & handling, image library management, help-desk support, online news retrieval, business intelligence, research libraries, litigation support and eCommerce search engines for online catalogs.

* Thunderstone's TEXIS is the only search engine developed from the ground up as a fully integrated SQL RDBMS optimized for full-text search, and it's the only known relational database that can store and search text documents of unlimited size within standard database tables. It efficiently sorts/groups search results by any field(s) in the data and can quickly sort tens of thousands of hits or more.

Note: We've also always provided significant ROI advantages that typically include a 40 to 60 percent upfront savings (all Thunderstone products come with one-time, perpetual licenses) and even more dramatic year-to-year TCO savings compared to our enterprise search industry competitors.

Peter,
Thanks for the comment, but that sure sounds a laundry lists of features to me. :-)

Ron,

While Bob Zagami requested 3 - 5 bulleted points on one featured product from each AIIM exhibitor, which we provided -- visitors to Thunderstone's booth at the show got to hear actual success stories (followed up with case studies emailed to them, if desired) about customers who deployed Thunderstone search solutions in environments similar to their own. We shared details about the specific challenges overcome (from initial proof-of-concept demo to custom prototype development, free on-site evaluation, implementation methodology, ongoing tech support, etc.) plus the actual timelines, investments, management/user responses and other factors that each prospect deemed most relevant to their own particular needs and decision-making process.

Peter Thusat
Communication Director and CMO
Thunderstone Software LLC

Peter,
I was being flip. If you presented customer cases with business problems and solutions, you were doing it the right way.

Ron

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