U.S. Document Imaging Scanner Survey Report: 2007

February 19, 2008 Abstract U.S. Document Imaging Scanner Survey Report: 2007 Report Fast Facts Published: February 2008 Pages: 120 Figures: 79 Tables: 5 Price: $6,500 Order Information To place your order today, contact Michelle Boczanowski at 781.616.2100 or via e-mail michelle_boczanowski@ infotrends.com Abstract This document reports on survey data collected regarding business use of document imaging scanners, including scanning on MFP devices. It includes analysis of end-user research conducted by InfoTrends via a Web-based survey of the U.S. market in September and October of 2007. About InfoTrends InfoTrends, a Questex Company, is the leading worldwide market research and strategic consulting firm for the digital imaging and document solutions industries. We provide research, analysis, and advice to help clients understand market trends, identify opportunities, and develop strategies to grow their businesses. To learn more about our company, visit www.infotrends.com. 2008 InfoTrends, Inc. www.infotrends.com Headquarters: Europe: Asia: 97 Libbey Industrial Parkway 3 rd Floor, Sceptre House Hiroo Office Building Suite 300 7-9 Castle Street 1-3-18 Hiroo, Shibuya-ku Weymouth, MA 02189 Luton, Bedfordshire Tokyo 150-0012 United States United Kingdom, LU1 3AJ Japan +1 781 616 2100 +44 1582 400120 +81 3 5475 2663 info@infotrends.com euro.info@infotrends.com info@infotrends.co.jp

Table of Contents Executive Summary... 7 Trends... 7 Single-Function Scanners... 7 MFP Usage... 8 Introduction... 10 Methodology... 10 Survey Sample... 10 Demographics and Banner Headings... 11 Company Size... 11 Average Weekly Volume... 11 Categories of scanner users... 12 Comparisons to Previous Business-Scanner Survey... 12 Calculating Means... 12 Percentage of Respondents... 13 Scanner Segmentation... 13 Definitions... 14 Respondent Information and Demographics... 16 Respondent Base and Outsourcing Providers... 16 Company Demographics... 17 Primary Business (Vertical Markets)... 18 Number of Locations... 19 Number of Employees... 19 Annual Revenues... 20 Respondents Frame of Reference... 20 Respondents Job Titles... 21 Scope of Scanner Knowledge... 22 Current Scanning Environments... 23 Types of Scanners Used... 23 Types of Scanners Used, by Speed and Segment... 24 Mean Number of Scanners... 25 Centralized and Decentralized Scanning Models... 26 Anticipated Changes in Scanner Usage Models... 28 Standalone Scanners Versus MFP Scanners... 30 Document / Content Management... 31 Indexing Scanned Documents... 32 Production versus Ad-hoc Scanning... 33 Scan Volumes... 34 Weekly Volumes per Scanner... 34 Expected Changes in Scan Volumes... 35 Production Scanning... 37 Purposes of Production Scanning... 37 Production Scanning Applications... 38 Routing Documents to Production Scanners... 40 Disposition of Scanned Documents... 41 Black & White versus Color Image Files... 42 Use of Multiple Data Streams... 43 File Formats... 44 Separator Sheets... 45 www.infotrends.com - 2-2008 InfoTrends, Inc.

Character-Recognition Processing... 46 Additional Scanners in Production-Scanning Area... 47 Production-Scanner Features... 48 Influencers on Purchase Decisions... 49 Purchase Destinations... 50 Decentralized (Distributed) Scanning Usage... 51 Purposes of Distributed Scanning... 51 Distributed Scanner Applications... 52 Disposition of Scanned Documents... 53 Black & White versus Color Image Files... 54 File Formats... 55 Separator Sheets... 56 Character-Recognition Processing... 57 Printing of Saved Images... 58 Distributed-Scanner Features... 59 Decentralized (Distributed) Scanning Hardware... 60 Price versus Speed... 60 Distributed-Scanner Features... 61 Software... 62 Minimum Paper Size... 64 Types of Small Documents... 65 Minimum Paper Size Through ADF... 65 Maximum Paper Size... 66 Maximum Paper Size Through ADF... 66 Resolution... 68 Other Hardware Data... 69 Paper Weights... 69 Interface Connector... 69 Maintenance... 70 Use of Multiple Data Streams... 70 Network Connectors... 72 Scanner Controls... 73 Preview of Scanned Image... 73 Plans to Purchase... 74 Types of Scanners Expected to be Purchased... 74 Purchasing Criteria... 75 Top Influencers... 76 MFP Scanning... 77 Purposes of MFP Scanning... 77 MFP Use Increasing or Decreasing... 79 MFP-Scanning Applications... 80 Disposition of Scanned Documents... 81 Black & White versus Color Image Files... 82 Character-Recognition Processing... 83 Printing of Saved Images... 84 Satisfaction with MFP Scanning... 85 Comparison of Usage by Categories of Scanner Users... 86 Purposes of Document Scanning... 86 Scanning Applications... 87 Disposition of Scanned Documents... 89 Outsourced Scanning... 90 Outsourced-Scanning Providers... 91 Outsourced-Scanning Volume... 91 www.infotrends.com - 3-2008 InfoTrends, Inc.

Conclusion... 92 Appendix... 94 Scanner Survey... 94 List of Figures Figure 1: What type of organization do you work for?... 16 Figure 2: Which of the following best describes your company's primary business?... 18 Figure 3: How many separate locations or branches does your organization have?... 19 Figure 4: How many people are employed in your entire organization, including all branches, divisions and subsidiaries?... 19 Figure 5: What are your company's annual revenues?... 20 Figure 6: Which description best describes your knowledge or frame of reference of document scanning in your organization?... 20 Figure 7: Which of the following titles or functional roles best describes you?... 21 Figure 8: Please tell us which scanners you are most knowledgeable about and will answer the questions about.... 22 Figure 9: Types of scanners used... 23 Figure 10: Types of scanners used, by speed and segment... 24 Figure 11: Mean number of scanners used, by speed and segment... 26 Figure 12: Which description best applies to your use of centralized and decentralized scanners?... 27 Figure 13: Which description best applies to how you plan to change the types of scanners you use?29 Figure 14: Which description best applies to how you plan to change the types of scanners you use?29 Figure 15: Which of the following statements best reflects your department/company s position on the use of single-function scanners vs. scanning with MFPs?... 30 Figure 16: What percentage of your scanned documents are maintained in a system or with software that has been designed for document or content management?... 31 Figure 17: What method of indexing scanned documents do you use within your documentmanagement/content management system?... 32 Figure 18: Approximately what percentage of total scanner volume falls into the following categories?33 Figure 19: Mean scan volume by scanner type and speed... 34 Figure 20: To what degree do you expect your overall scanning volume will change for each type of scanner? - Means... 36 Figure 21: Approximately what percentage of documents scanned on production equipment are scanned for these purposes? Means... 37 Figure 22: For which kinds of documents are the production scanner(s) used?... 39 Figure 23: From how many other locations or departments are documents routed to the production scanner(s)?... 40 Figure 24: For approximately what percentage of your scanned documents are the following performed?... 41 Figure 25: Approximately what percentage of the scanning OUTPUT (files) are black-and-white ( binary), grayscale, and color? Means... 42 Figure 26: For approximately what percentage of your scan volumes do your scanners output multiple data streams?... 43 Figure 27: For approximately what percentage of your scanned documents are the files saved in the following formats?... 44 Figure 28: Do you use separator sheets to classify or process scanned documents?... 45 Figure 29: Approximately what percentage of scanning volume is run through the following processes? Means... 46 Figure 30: Types of scanners used in centralized scanning area... 47 Figure 31: Describe your interest in product features for the next high speed scanner that you purchase. (1)... 48 Figure 32: Describe your interest in product features for the next high speed scanner that you purchase. (2)... 49 www.infotrends.com - 4-2008 InfoTrends, Inc.

Figure 33: Which sources would you use to influence your selection of a scanner?... 49 Figure 34: Where would you likely go to purchase a high-volume scanner?... 50 Figure 35: What percentage of documents scanned on your single-function scanner(s) are scanned for these purposes? Means... 51 Figure 36: For which kinds of documents are single-function scanners used?... 52 Figure 37: For approximately what percentage of your scanned documents are the following performed?... 53 Figure 38: What percentage of the scanning OUTPUT (files) is black-and-white (binary), grayscale, and color? Means... 54 Figure 39: For approximately what percentage of your scanned documents are the files saved in the following formats?... 55 Figure 40: Do you use separator sheets to classify or process documents?... 56 Figure 41: Overall, approximately what percentage of scanning volume is run through the following processes? Means... 57 Figure 42: Do employees retrieve saved scanned images and print them out? Approximately how many pages per day, on average?... 58 Figure 43: In general, how satisfied are users with the following capabilities of the scanner solutions you have?... 59 Figure 44: When first examining your scanner needs and available models for purchase, which is the more important consideration when comparing?... 60 Figure 45: Describe your interest in product features in the scanners you have or plan to purchase. (1)... 61 Figure 46: Describe your interest in product features in the scanners you have or plan to purchase. (2)... 62 Figure 47: What software would you require to be bundled with a scanner, or what would you purchase separately? (1)... 63 Figure 48: What software would you require to be bundled with a scanner, or what would you purchase separately? (2)... 63 Figure 49: What is the minimum paper size that needs to be scanned?... 64 Figure 50: Which of these types of small documents do you scan?... 65 Figure 51: Do you require this minimum paper size to be fed through an ADF, rather than only from the flatbed (platen glass)?... 65 Figure 52: What is the maximum paper size that needs to be scanned?... 66 Figure 53: Do you require this maximum paper size to be fed through an ADF, rather than only from the platen glass?... 67 Figure 54: Approximately what percentage of documents are scanned at the following resolutions? 68 Figure 55: Other than standard paper weights, which of these paper weights are required to be fed through an ADF?... 69 Figure 56: Do you use, or plan to use, these types of interface connectors to connect scanners to computers?... 69 Figure 57: How would you prefer to handle the maintenance of the scanner?... 70 Figure 58: For approximately what percentage of your scan volumes do your scanners output multiple data streams?... 71 Figure 59: What are your preferred methods for connecting scanners to your network?... 72 Figure 60: How do users prefer to control the scanner function?... 73 Figure 61: Is it important to be able to preview the scanned documents before creating a file, and how would you prefer to do that?... 73 Figure 62: Purchasing plans, 2007 to 2008... 74 Figure 63: Respondent preference on scanner types to be purchased... 74 Figure 64: Please rate the importance of factors in deciding which product to buy... 75 Figure 65: Which sources will you use to influence your selection of a scanner?... 76 Figure 66: Approximately what percentage of documents scanned on MFPs are scanned for these purposes? Means... 78 Figure 67: In considering these scanning applications, is the use of MFP scanning devices increasing or decreasing?... 79 Figure 68: For which kinds of documents are MFP scanner(s) used? (1)... 80 www.infotrends.com - 5-2008 InfoTrends, Inc.

Figure 69: For approximately what percentage of your scanned documents are the following performed?... 81 Figure 70: Approximately what percentage of the scanning OUTPUT (files) are black-and-white (binary), grayscale, and color? Means... 82 Figure 71: Overall, approximately what percentage of MFP scanning volume is run through the following processes? Means... 83 Figure 72: Do employees retrieve saved scanned images and print them out? How many pages per day, on average?... 84 Figure 73: Are your multifunctional devices adequately serving your scanning needs at present?... 85 Figure 74: Approximately what percentage of documents are scanned for these purposes? Means86 Figure 75: For which kinds of documents are scanner(s) used? (1)... 87 Figure 76: For which kinds of documents are scanner(s) used? (2)... 88 Figure 77: For approximately what percentage of your scanned documents are the following performed? Means... 89 Figure 78: Do you, have you, or will you outsource scanning to a service bureau or other scanning provider?... 90 Figure 79: Describe the service bureau(s) or provider(s) for outsourced scanning.... 91 List of Tables Table 1: Market Segmentation of Document Imaging Scanners... 13 Table 2: Correlation of Survey Questions to Banner Headings in Data Tabulations... 17 Table 3: Comparing Usage of Centralized and Decentralized Scanners: 2007 Survey vs. 2004 Survey Data... 27 Table 4: Comparing Preference of Single-Function Scanners vs. MFP Scanners: 2007 Survey vs. 2004 Survey Data... 31 Table 5: Correlations between Scan Volumes, Use of Document Management, Company Size, and Scanner Usage Model... 32 Introduction This document provides analysis of end-user research that was conducted by InfoTrends via a Web-based survey of U.S. residents in September and October of 2007 regarding how scanning is used in business. This end-user survey is conducted periodically to explore trends concerning business-scanner usage. Qualifying questions in the survey retained respondents who reported having knowledge of document scanning at their place of employment. In addition to demographic data, data was gathered to identify each respondent's role in document scanning at their company. Respondents were sent along separate tracks of the survey to gather data specifically pertaining to the types of scanners about which they were knowledgeable, including scanning with MFP devices. Approximately half of companies in the survey sample use distributed single-function scanners 33% use production scanners 58% have personal flatbed scanners 34% have network scanners 70% use MFPs for scanning www.infotrends.com - 6-2008 InfoTrends, Inc.

Methodology This end-user survey was conducted via a Web-based questionnaire in the United States in September and October of 2007. The questionnaire informed respondents that it was a survey of business use of document scanners (rather than home use), and only retained respondents who reported having knowledge of one or more document scanners currently used by their organization. E-mail invitations were sent to subscribers of several mailing lists that are targeted to business people. Some lists were specifically targeted to people with interest in imaging and document-management technologies. Survey Sample The survey respondents are employed by businesses with a wide range of demographics. These demographics have some differences from those of all U.S. companies at large. To participate in the survey, respondents were required to have knowledge of document scanning in their organization; U.S. companies who do not use document scanners at all are not reflected in the survey. Therefore, it would not be accurate to expect that the survey data extrapolates to exactly represent all U.S. companies. Demographics Company Size The data regarding the number of people employed by respondents companies has been used to classify each company s size. For purposes of the survey, company size has been defined as follows: Small companies: Fewer than 100 employees Medium-sized companies: 100 to 499 employees Medium-large companies: 500 to 999 employees Large companies: 1,000 or more employees Average Weekly Volume The banner headings regarding Average Weekly Volume have been calculated based on data provided by each respondent. The calculations are based on two data points. The first data point resulted from respondents providing ranges of the average weekly scan volume (number of pages) per scanner for each type and speed range of scanner for which they were providing survey responses. The second data point resulted from respondents entries regarding the quantity of scanners of each type and speed range for which they were providing survey responses. The two data points were multiplied, and then the totals for each type and speed range of scanning device were added together, arriving at a total average weekly scan volume for each respondent. Respondents were then categorized by this average weekly volume in the banner headings. www.infotrends.com - 7-2008 InfoTrends, Inc.

Categories of Scanner Users The survey was divided into three tracks that each focused questions on one category of scanner users: production/centralized scanner users, distributed single-function scanner users, and MFP-scanner users. Respondents who in survey question 5 entered data for only one type of equipment were routed to the appropriate track of the survey. Respondents who in survey question 5 entered data for multiple types of scanners were allowed to select which track of survey questions would be delivered to them. In some cases, respondents in each track of the survey answered the same question, thus allowing us to compare how usage differs between the three categories of scanner users. Charts are provided for each of these questions in the section of the report pertaining to each category of scanner user. In addition, for some questions, charts are provided showing responses by the three categories of scanner users displayed together, in the section of this report titled Comparison of Usage by Categories of Scanner Users. Scanner Segmentation Some of the charts in the survey that relate to scanner feeding speeds are displayed with reference to a market segmentation of document scanners that InfoTrends uses to discuss the scanner market with its clients. When requesting data pertaining to scanning speed, respondents were told that scanning speed is the speed to scan a single-sided, black & white document, in pages per minute (ppm). In the charts, this segmentation has been noted as follows: Market Segmentation of Document Imaging Scanners Segment Name Personal Workgroup Departmental Low-Volume Production Mid-Volume Production High-Volume Production Scanning Speed Less than 10 ppm 10-25 ppm 25-40 ppm 40-60 ppm 60-90 ppm More than 90 ppm This material is prepared specifically for clients of InfoTrends, Inc. The opinions expressed represent our interpretation and analysis of information generally available to the public or released by responsible individuals in the subject companies. We believe that the sources of information on which our material is based are reliable and we have applied our best professional judgment to the data obtained. www.infotrends.com - 8-2008 InfoTrends, Inc.

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