CASE STUDY FACTS:

DIGITECH SYSTEMS RESELLER: Digiscribe

PROBLEM: Needed a powerful ECM product suite and profitable partnership opportunity to support a new business strategy

SOLUTION: The entire suite of Digitech Systems ECM products

RECOGNIZED BENEFIT:
Expanded into new markets with offerings that built recurring revenue and became an integral part of each customer's business

When Digiscribe opened its doors in 2002, CEO, Mitch Taube, was ready to do whatever it took to build a successful document management business from scratch. He had years of industry experience and was eager to develop profitable partnerships and strategies that would help companies adopt painless solutions for a paperless office. Working in an industry he already knew, Digiscribe’s business had a strong emphasis on litigation work for leading law firms. But, Taube knew he needed a product suite that would enable him to expand the company’s service offerings.

Since signing on as a Digitech Systems reseller, Digiscribe has diversified into additional vertical markets and created a sustainable Enterprise Content Management (ECM) software business that generates 25% of total recurring revenue.

Business Goal

Today, Digiscribe is a leader in providing document management software and scanning services for New York City as well as the New Jersey and Connecticut metro areas. Their Kodak-certified document scanning and processing facility in Elmsford, NY, is designed for speed, efficiency and security. Using a team of project managers and exacting quality control processes they stay focused on accuracy, timeliness and customer satisfaction.

When Taube started Digiscribe, he saw the cost of document management technology decreasing and recognized an open window of opportunity to sell ECM to small and medium sized businesses. He wanted to diversify the business, shift toward the SMB market and provide solutions for standard business practices that are commonly saddled with paper-based inefficiencies, such as AP, AR and HR departments. Taube also made a strategic decision to lessen the company’s emphasis on litigation, as it was project based and becoming increasingly commoditized. The only challenge was he didn’t have a product suite that could support this business direction.

The Digitech Systems Solution

It didn’t take long for Taube to find the right technology. Many years prior, while working at a nationwide information management services company, Taube met Scott Matthews, the founder and CTO of Digitech Systems. Taube had the opportunity to work with Matthews software and knew he produced great products. “I talked to other resellers and heard that Digitech Systems had a good reputation for creating successful technology and profitable opportunities with great margins,” said Taube.

After examining the ECM product suite, Taube saw that it was created with unlimited scalability. So, not only would the solution be useful for his company’s own high-volume scanning services, it could also serve his customers needs for either a departmental installation or an enterprise-wide system. Plus, ImageSilo’s Software as a Service (SaaS) technology would make ECM cost effective to buy and deliver. In addition, Digitech Systems and Digiscribe shared a similar belief that ECM doesn’t have to be so hard or cost so much. “It was clear we were working with the same goals in mind,” he said. “The next day we told Digitech Systems we were ready to join the team.”

Business Value to Digiscribe

ImageSilo has become a key factor in Digiscribe’s business strategy. With a strong ECM offering, they diversified away from one-time legal projects and secured more ongoing work in AP, AR and HR departments. “Now, we can address business processes where there is the most paper pain and implement cost-effective solutions so our customers see a quick ROI,” said Taube. When he first started the company, 90% of their business came from the legal sector and 10% came from the commercial sector. Today, 25% of their business is legal and 75% is commercial.

This business direction is helping Digiscribe build more recurring revenue with monthly ImageSilo data storage fees. They have hundreds of ImageSilo customers with 1.3 terabytes of information under management, and 90% of their new ECM deals are ImageSilo sales. “Our business has changed significantly because of ImageSilo. We now sell solutions that provide us with recurring revenue,” said Taube. ImageSilo generates 25% of their total revenue stream and is creating a sense of business security during these rocky economic times. “On the first of every month I can count on a predictable amount of revenue that continuously grows. We don’t’ have to start each year back at zero,” he said.

“The best part about integration is that Digitech Systems makes it easy. Customers want seamless interoperability, and I don’t need unbelievably expensive technical resources to do it—our sales people  can do almost every integration job.”

- Mitch Taube, CEO

The trusted SaaS solution “virtually sells itself,” said Taube. The convenience of 24/7 information access via the internet is a big selling point, but it’s the message that no upfront capital commitment or IT services are required that really gets attention. “Before, IT departments could slow down the selling process,” Taube said. “When IT teams find out that they don’t have to support an additional application they’re encouraged, and they move decision makers toward the SaaS model. They actually become a driver for the sale.”

What really closes the deal again and again is integration with most line-of-business applications, said Taube. For example, customers can easily store and retrieve critical data from Oracle’s PeopleSoft. ImageSilo works effortlessly with Microsoft^® Office, and a point-and-click integration module as well as API capabilities enable integration with virtually any software application.

Digiscribe is building and maintaining a strong business reputation that is backed by Digitech Systems legendary technical support—which Taube describes as “unbelievable.” Digitech Systems’ customer service is known for “real people” and no waiting. Customer and reseller calls are typically answered within seconds and most cases are resolved on the same day. “Once, my call was disconnected and tech support actually called me back at my customer’s site to make sure my problem was solved. You just don’t find that kind of service with any software company,” he said.

Conclusion

Stronger relationships are also a part of the reputation development that has evolved since their Digitech Systems partnership. Ellen Rothschild, marketing director, said, “ImageSilo is helping us build long-lasting relationships with clients, because it makes us an integral part of their business. It really increases customer loyalty. They can’t walk away, because they see the value-added. Customers consistently tell us ‘Digiscribe is just part of our business process now.’” 

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