CAP Ventures Market Research: Compound Document Management Expands Through the Enterprise; CAPV Study also Breaks Out Vertical Markets; Computer Manufacturing Represents Largest New Opportunity.

MARSHFIELD, Mass.--(BUSINESS WIRE)--Oct. 3, 1996--CAP Ventures today announced results from its 1996 survey of companies planning purchase of document management systems. The focus on using document management primarily to keep track of technical documentation is shifting rapidly, according to this survey's comparison of the 1996 survey results with those collected last year. The installed base, which is the largest source of new purchases, concentrated 40% of its purchasing power on "tech doc" applications in 1995; in 1996 that figure drops to 27%. This result and others are described in a report titled "Document Management Applications and Vertical Markets."

"Our research shows that customers are taking care of `first things first'," explains Bill Zoellick, Director in charge of research for the Document Software Strategies (DSS) service at CAP Ventures. "The cost savings and time-to-market improvements that document management brings to the production of technical documentation make this an early area of deployment for most customers. But our comparison shows that these customers are becoming more aware of the other things they can do with document management. Interestingly, these other things typically have top line impact as well as bottom line impact. This is why we are suddenly seeing such growth in this market."

The 1996 survey is CAPV's second annual survey of 300 corporations with regard to compound document management use and purchase plans. Survey respondents are CIOs, MIS directors, and others who are knowledgeable both about document management and their company's needs and plans. The detailed survey, conducted on a one-to-one basis by professional market researchers, explores a wide array of plans, issues, and concerns regarding document management.

VERTICAL MARKETS

In addition to providing a picture of the applications for which companies are buying document management systems, the new CAPV report also sizes and analyzes different vertical markets for document management.

"The largest vertical markets for this year will be Electronic and Computer Manufacturing, Aerospace, and Automotive," says Frank Gilbane, Director of the DSS service. "These have always been important markets for document management, and will continue to be so. What is really interesting, however, is that we see new markets emerging in Wholesale and Retail Trade, and in Banking, Insurance, and Real Estate. These newer markets will buy almost $300 million in document management software, hardware, and services over this year."

The report combines the analysis of application usage with its study of vertical markets. There are significant differences between markets in how they use document management. In the aerospace and automotive markets for instance, more than half the applications are for management of technical and engineering documents. But in the software and computer services market, companies are using document management as the back end for World Wide Web systems almost as often as the are using it for technical documents; the majority of their applications are classed as "other," indicating rapid innovation in their use of document systems. Mary Laplante, also a Director of the DSS, notes that "the traditional strongholds of document management, the early adopter base for the market, are using document management in traditional ways. Newer entrants to the market are coming in because they have discovered they can use document management in new ways to address an expanding set of needs."

PART OF A RESEARCH SERIES

"Document Management Applications and Vertical Markets" is one of a series of reports drawn from CAPV's comprehensive study of compound document management use. Other reports look at the overall market size and dynamics, the buying process, Internet and intranet use of document management, use of standards, and the connection between document management and electronic distribution.

ABOUT CAP VENTURES

CAP Ventures is the leading strategic consulting partner for document management and print on demand solutions. The Document Software Strategies service provides market research, market analysis, and consultation to help vendors and customers for document software systems make better strategic decisions. The research reports are distributed to all DSS clients.

CAP Ventures is located at One Snow Road, Marshfield, MA 02050. Telephone [phone].

For information about the DSS service and CAP Ventures, contact: Frank Gilbane, Director ([e-mail]) Charts and key findings from the DSS research series are available to the press. Contact: Bill Zoellick, Director ([e-mail])

CONTACT: CAP Ventures, Inc.

Donna O'Malley, 617-837-7200 ext. 116

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