Lessons For the eBook Industry – Study the E-Forms
Industry Beginning
CASE STUDY
The Start
It all started December 1992. I was wearing my computer
consulting hat and trying to find time to write. One of my associates, a
forms distributor from Costa Mesa, California, called one day. He wanted
to invite me to go with him to a seminar. It sounded interesting so I
accepted the invitation. Little did I know where that meeting would lead
me: my adventure into the digital world?
We attended a seminar held by a company
who was presenting a new concept in creating and using business forms.
Their concept was to use the paper form image and create a digital copy of
it. Then the user would either fill in the form on a computer screen or
overlay the form image over the data as it was printed from their software
on a laser printer.
They were trying to sell the idea of
partnering with the forms distributors. They would create and install this
new product for the distributor’s customers and share in the profit.
After the seminar, I had coffee with my
associate, Rick Bowen. He conveyed to me that if this concept took off he
would be out of the pre-printed forms business. He had started his
business over twenty years before and was relying heavily on supplying
paper forms to his customers. He wanted to know if I could see any way out
of this situation. He had a problem because the process used computers and
laser printers and he had only a little technical knowledge.
I left that meeting with a different
point of view than Rick. He thought the sky was falling and I could see an
opportunity. This was not magic and mirrors. It was a simple computer
process. I studied the new concept and talked to everyone I could about
it.
Finally, I went back to Rick and
presented to him what I had found. He had also been doing his homework,
talking to his colleagues. He said that there was a lot of resistance.
These people relied on repeat business and this process looked like the
customer could convert their own forms to digital versions and their
business relationship would be over. He could see the end of the road for
the business forms part of his business.
Taking Action - EFS
Like in most situations business problems present opportunities. I
presented to him a different point of view. Let’s don’t fight it,
let’s embrace this new technology. Let’s get involved in the process
and at the same time help his colleagues provide this new service to their
customers.
So in February 1993, we went into
partnership. He created a company,
Electronic Forms Solutions. The new entity
would provide electronic forms systems to businesses. Also we decided
to help other independent forms distributors develop their own in-house
solutions so they could provide electronic forms to their customers.
After several months of creating
solutions with some of Rick’s customers and some new customers, we found
ourselves in the middle of a huge conflict between large and small
independents forms distributors. The distributors had formed good old boy
networks trying to protect their businesses from getting their forms
pirated by other forms distributors. Our new business had jumped right
into the middle of this situation.
Rick and I started talking to forms
distributors about the large opportunity that digital forms offered them.
They had developed their business on customer relations and service. This
was just another way to help their customers. They had the design skills.
All they had to do was add the e-form skills and they had a new business
opportunity. It sounded like a simple solution.
Also with our discussions was a warning.
Your bigger customers are changing their thinking. They can do this
process themselves by giving up a little quality (color and special
fonts). You should be the one who presents this new concept. You will be
the first in the door.
Lesson
To eBook authors, agents, bookstores, libraries and publishers: You must
take ACTION or competition will find a way to solve the current problems
and issues and leave you behind.
Customer Relationships
I decided to write an article to help the forms
distributors get a better insight into the digital world.
My first published article was in July
1993.
Who are You in the Eyes of Your Customers?
(The quality of the articles presented here are readable but not high
quality. I was unable to get a reprint from the magazine that published
them because, like many of the forms distributors of the 1990’s, they
are no longer in business.)
The article discussed the forms
distributor’s relationship with their customers. Also it discussed an
industry in transaction, moving from the paper world to a digital one.
With the advent of computers, new software and laser printers, the forms
industry was going to a print on demand process.
The customer’s point of view was
changing. They could see a large cost savings and a faster process without
the headache of storage, distribution, handling and so on.
I could see the forms distributors had a
great opportunity. This new product would give them a competitive edge.
The industry changes were happening at a
rapid pace. The more it changed the more resistance we saw from the forms
distributors. They didn’t understand the process and they could
visualize their larger customers not ordering paper forms from them
anymore.
Lesson
To the book industry players: You must proceed with eBooks to maintain
your reader relationships and your brand. You must embrace the technology.
The digital world will be a major part of your industry in the years to
come.
How To Seminars
Rick and I decided to get out and talk with the forms
distributors and explain to them the opportunity that the new process
presented to them. In September 1993, we had our first How To seminar in
Irvine, California. Over the next two years, we conducted over twenty
seminars across the country. We had over 200 different companies attend
(over 400 attendees) as we presented the conversion process, how to market
e-forms and how to gain that repeat business they were all looking for.
One of the ideas we presented to the
attendees was: once the e-forms are installed, customer couldn’t change
easily to another supplier. This still didn’t seem to create much
activity.
Lesson
Training is one of the keys. Learn the process. Learn the new industry.
Learn the technology. The lack of knowledge is not a good thing in this
changing environment. There is a definite parallel between the beginning
of the E-forms Industry and the current transition of the Book Industry to
a digital format.
Once
a reader has purchased an e-reader, they are a dedicated customer and they
are tied to that device for a long period of time.
A New Product – Electronic Forms
In November 1993, we had an article published about our
seminars and our company. I have included that article.
Electronic Forms: A New Product
Distributers are Excited About by
Holly Stevens-Black (sorry about the quality)
Holly discussed our seminars and the new
opportunities electronic forms presented to her reader base, independent
forms distributors. She wrote about cost savings that customers recognized
and what that meant to distributors. This new concept required a different
mindset than the distributors were use too.
And she brought up the troublesome idea
of no repeat business. (NOTE: we still have two major electronic forms
clients and many small ones doing business with us, dating back to 1994)
We continued to conduct our seminars and
explain the electronic forms business. There was still reluctance and
skepticism amongst our seminar attendees. They thought this was a passing
fade and that customers wouldn’t give up the quality and service they
provided.
After one of our seminars an attendee
came up to Rick and me and voiced his concern. “The process that we were
teaching was going to ruin his forms business. It was just like sleeping
with the enemy."
Lesson
Publishers must change their mindset. Authors should look at the process
and see the opportunity. Bookstores
and libraries must determine what their customers want. Your readers are.
Competition
The conversation prompted another article February 1994.
Electronic Forms: Sleeping with the Enemy
Forms distributors were slowly starting
to look at the new technology with little activity. They had been in a
comfort zone selling paper forms and this was rocking the boat.
Then we started to see a new competitor.
Software companies saw the business opportunity and started including
electronic forms with their software. They became the new game in town
with a new set of rules. The forms distributor hadn’t provided the
service so software companies where starting to design the forms
themselves.
Even the big national distributors were
seeing the movement from paper to digital. Most of them were relying on
large corporations and the government for the majority of their forms
business. Unfortunately those organizations were looking at their own
solutions because of the large economies of scale it provided.
One of my major moments in every seminar
was to challenge the attendees. I would ask them to visualize their
biggest customer. I would pause for a moment. Then I would try to hit them
between the eyes. In the next six months someone will walk into your
largest customer and offer them electronic forms. The reaction was always
one of disbelief.
The forms distributors had a serious
dilemma. They needed to take action or they would be out of the game. They
needed to be a provider.
At this point we were conducting regular
monthly seminars in California and forms distributors kept coming. The
forms industry was going digital and the distributors wanted to find out
as much as they could about their competition. We had two seminars in
September 1994 in Alexandria, Virginia with over 100 attendees, mostly
from the east coast. One seminar was for forms distributors and one was
for banks. They all had an interest in what was coming.
Lesson
The book industry is a mature industry with entrenched players that
control the process. But there is a new game in town. If the players try
to avoid the eBook movement, others will make an end run and take control
of the process.
Publishers
are in the same situation as the forms distributors were in the 1990’s.
With the ease of self-publishing, their competition will come from new
sources, the authors themselves or pro-active publishers.
An Industry in Transition
In December 1994, I wrote another article, There Goes the
Neighborhood.
I was still trying to get the forms
distributors to take action. The creation process was simple. Most of
them, instead of trying to take advantage of the opportunity, were trying
to plan a strategy to compete with the digital process.
Again they echoed: no repeat business.
“If I provide this solution, my revenue stream will stop.”
We tried to explain that obsolete forms and new software needs would provide more
business to their distributorship but the reluctant to start was still
there.
They had the skilled staff and knowledge
of how forms worked with their customer’s software. They had a large
potential for success, but the resistance continued. What they needed to
do was sell solutions and work with the software companies. They needed a
new plan of attack.
We didn’t give up on the forms
distributors because their window of opportunity was still there.
Lesson
eBooks are the ultimate repeat business vehicle. All purchases are first
time purchases. If an industry player doesn’t take action on this
opportunity, they will have trouble surviving. New players will appear and
they will provide the new solutions.
Opportunity
In May 1995, I wrote another article, The Sky’s the
Limit.
The forms distributors were still
reluctant to offer the new product. We discussed with them the many
products that were by-products of the electronic forms like check stock,
perforated paper, printed logos on laser paper, self-mailers, bar codes,
etc. The margin on the new products was nothing like the pre-printed
forms, so the resistance continued. This was a large challenge for them to
turn their backs on pre-printed forms.
Meanwhile personal computers, laser
printers, software advances and the Internet were starting their dramatic
growth. Users were now filling in their forms on-line rather than manually
filling out pre-printed forms.
Digital forms in many cases meant less
employees. Rick and I once had an interview about electronic forms with an
association who provided pre-printed forms to their members. They provided
over 100 forms which they sold for a fee. We discussed with management the
idea of supplying the member’s software and fillable e-forms. This would
provide a large cost saving for the members plus with the laws changing
yearly, the process would give the association a whole new shot at
revenue.
This seemed like a great opportunity for
the association and its members. Several days later, we were informed by
the association that they would pass on the concept. The way they
explained it, “they had a meeting with the current employees and they
had vetoed the project because it meant possible layoffs or required
different skills then they had.” Resistance was everywhere.
We were still conducting our seminars,
trying to help forms distributors get a direction on how to start the
development of this new solution but they still saw a sales conflict.
Lesson
New e-readers and new software will appear with added features and
acceptability and eBook authors and publishers must start rendering their
eBooks to enhance the eBook experience. The opportunity is here and the
entry level is low.
A
copy of the original paper book will not be enough. Any ONE eBook will be
available to readers any time, any place for years to come. The sales life
of an eBook has the potential to never go away. It will be available far
longer than the paper version.
Going Digital
In October 1995, I had another article published,
Timber, The
Consumption of Pre-Printed Forms is Falling.
Again I discussed the digital world and
how business forms would never be the same. The customer could reduce
costs and at the same time pass their information digitally anywhere in
the world via the Internet. I even discussed the reduction of paper use
and helping the environment.
There was a great time savings for the
customer, no duplicate information being printed and they could
electronically distribute their invoices and documents to customers
through digital communications. Businesses were re-engineering their
processes and forms distributors needed to get on board.
Well the electronic forms process has
become the way companies provide information to their customers and their
employees. Today many companies have no pre-printed forms in their
organization.
In December 1995, we stopped our
Electronic Forms seminars. With Rick Bowen’s forms knowledge and my
grasp of electronic forms, we had given it our best effort.
Lesson
A movement from the traditional paper world to the digital POD and the
eBook is now available with a delivery system that readers are embracing.
Now is the time for the players to take action.
The Internet is Here
In October 1996, I wrote another article, Nothing But Net,
Or Close to It.
This article discussed businesses moving
toward the Internet with electronic forms and workflow/ e-commerce
systems. I gave it one more shot. I challenged forms distributors to get
involved. There was an opportunity but they still saw the huge sales
conflict. They were at crossroads. Many of their large customers were
providing their own solutions by switching from paper to digital. The
industry had changed and many independent forms distributors were still
thinking about getting involved.
Lesson
The digital world is here and it has merged with the book industry. The
opportunity is here for all the players. You must think outside the box.
What is that old saying: they couldn’t see the forest for the trees.
Look at the big picture and not the detail. Remember the word Resistance
is not in the new eBook dictionary.
IRS
Several years later (October 1999) I conducted a training
seminar for the IRS in Washington D.C. The purpose of the seminar was to
train agents on how to create fillable tax forms. Of course that process
is now a feature offered by the IRS.
To get a DOC or MOBI copy of this case study, e-mail me
at: eBooklessons@hbspub.com
HBSystems
Publications
4408 N. Rockwood Dr. #183
Peoria, IL 61615
James Moushon
www.hbspub.com
eBook Author blog:
( http://hbspublications.blogspot.com/
)
mailto:jrm@hbspub.com
Electronic
Forms Solutions
170 E. 17th Street, Suite 200D
Costa Mesa, CA 92627
Rick Bowen
Telephone:
(949) 642-7670
www.allproforms.com
|
