Some years ago I was
working for a large computer manufacturer, when someone in management
decided that there was going to be an explosive growth in the imaging
market over the next few years. At the time the idea that one could
take electronic images of documents and store them on a computer for
retrieval was just becoming feasible. The company I was working for
decided they would be able to sale a very large amount of computer
hardware. This was at a time prior to digital cameras and the PC.
Computer terminals were black and white. (Or, was it black and green?)
They were capable displaying only words, and these in 20 lines of 80
characters each. The ability to show an image would be a great leap
forward in technology. For many years government and many companies had
been micro-filming documents to reduce the space requirements of
storage. By putting such documents on a computer we would make them
available anywhere that one could install a new type of computer
terminal. Up until then if you needed the data at more than one
location you needed to make copies of the microfilm.
The corporate marketing director for the
Imaging Market made a presentation at one of the local western branch
offices. He showed us a forecast of double digit growth for the next 6
years. The thing that caught my attention was that this forecast showed
growth for each year something like 33.2%, 31.4%. 35.6%, 32.2%, 34.4%,
and 36.1%. That was a fantastic growth rate, but accurate to 3 digits?
I had my doubts. I asked from where the numbers had came. He was very
pleased with himself when he told me that it was from the American
Association of Imaging Technology, Inc. (AAITI), the industry's largest
user group of imaging. I asked from where AAITI got the forecast. This
question he did not like. Answering in a dismissive tone he said they
hired a well know consulting firm specializing in the Imaging Market
Place.
Later that day I learned I had been
appointed the Western Region Technical Specialist for Imaging. I was
scheduled for a 2 day training class in the corporate offices on the
east coast for the following week. I, of course, went with my best
corporate attitude. Several people, including some capable technical
people presented what our product offering would be. The corporate VP
for imaging gave us the marketing talk. He showed the same forecast the
marketing director had shown us. I asked my same two questions and got
the same reaction. In the corporate world it is really not risky to ask
such impertinent questions as long as the people you ask are so high up
in the structure that they hardly notice you. Just make sure you don't
embarrass your boss in from of her boss or her boss's boss. Three
levels down is as far as they pay any attention.
Some weeks later I got the opportunity to
ask my questions again. I had been sent to the annual convention of the
AAITI. It was a rather large affair. There were well over 10,000
people attending. So maybe there really was a Marketing Skyrocket about
to take off. Such conferences are usually divided into the vendor
presentation area and the conference sessions. As one of the major
vendors with a very large display our group was given 2 passes to attend
the conference sessions. We had about 30 people at the conference. The
2 passes would be shared among us all, or so I thought. I was rather
naive. I asked if I could use one of the passes to attend session when
I was not scheduled to work in our display booth. I ended up holding
one of the passes for the entire week and the second pass for half of
the conference. No one else appeared to be interested to hear what our
prospects were saying and hearing about imaging.
Since there were more of us than were
needed for the booth, I asked if I could attend quite a few of the
sessions. I told management I would write up a synopsis of each session
and distribute it. They thought that was an excellent idea and I got
points for taking my position seriously enough to make sure I was well
educated in imaging. I was not just playing the subordinate to manager
game. I really do feel that if one is going to be an expert one really
should know something. Many of the sessions were about the experience
of pilot projects at very large companies, such as Bank of America,
American Express, Visa, Blue Cross, AT&T, etc. I figured I would learn
a lot about the actual experience of using electronic imaging and what
these companies were planning as a follow up to their pilot projects.
Universally their follow up plans were - nothing. Everyone reported
that the time to manually gather the paper and get it through the
document readers was far greater than expected and they could not cost
justify further implementations. Most of them had problems with certain
types of documents. Sometimes the paper was too thin. Sometimes the
paper color and ink color would not pick up properly and resulted in
unreadable images. This was the universal reaction at every one of the
pilot projects. In a couple of cases they were going to recommend that
imaging be considered in the design of brand new systems, but not in any
existing systems. It did not look like the marketing skyrocket was
going to get off the ground. But, what about the market forecast. Was
I missing something? I wrote up my synopses, but made no verbal
comments. I doubt they were ever read.
Associations like this one make money
from vendor fees, member fees, and book sales. I visited the
Association book sales area and found a 24 page report issued by the
Association forecasting the future of the Electronic Imaging Market
Place. I also learned that the Association was mostly concerned with
micro-film; electronic imaging was a possible side line. I looked
through the report and found the same forecast I had seen before. But
there was no explanation about the source of the growth rate figures.
The report was $85. Seemed a bit much for 24 pages but I was on an
expense account. As I read through the entire document, I noticed that
the author of the report was giving a presentation at the conference.
The author read his paper from view
graphs. There were about 600 people attending his presentation. At the
end he asked for questions. I asked from where the numbers for the
forecast came. He very politely, with an attitude of how clever he had
been, explained that he had sent a questionnaire to a couple of hundred
VPs and marketing directors in the various imaging equipment
manufacturing companies and asked them how much they expected to sell in
the next few years. He took the average for each year. After that I
wandered around the vendor area and without revealing I was from a
competitor asked various executives if they knew about the forecast.
They did. I asked where it came from. They knew exactly and only what
their counterparts in my company knew. It came from the Association.
Some people bet their jobs on the imaging
skyrocket. Fortunately, I did not. I had plenty of other work at other
accounts in technologies that were not expected to grow at 30+% a year.
We never did sell any imaging systems in the western region.
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