E-forms are a value-added product about to reach the mainstream
By Eric Fiedler
FOR YEARS, e-forms were considered a product of the future. For many distributors, the future is now.
More than three-fourths of Business Forms, Labels & Systems' Top 100 Distributors sell electronic forms, including nine of the top 10. While most of the larger companies introduced electronic form programs three to five years ago, they say the benefits are just beginning for both their clients and themselves.
"People are increasingly ready to take advantage of electronic forms because they now have the necessary infrastructure in place," said Daniel Siadak, CDC, president of RBF in Lansing, Mich. "We are starting to see a lot more activity."
Recent improvements in electronic security, signatures, software and increased network usage have all contributed to a spike in e-form popularity. Despite this, distributors say the product is not a major profit center—yet.
"For us, e-forms are a value-added product that allows us to hang on to existing accounts," said Paul Cabra, president of business operations at Precept Business Products, Dallas.
Doug Deason, president and CEO of business systems at Precept Business Systems, said that although e-forms are not a huge profit center for the company, there is no fear of losing money by offering them. "E-forms enhance our overall product selection and give our customers another option," he said.
Tom Tabor, vice president of corporate operations for Data Systems, Duluth, Ga., also said that e-forms are not used as a door opener at his company. "We use them when we have to preserve a situation, but it's not something that we go out and proactively sell," he said.
Tabor said all of his e-forms business has come from existing forms clients. "It typically comes from our larger accounts," he said. "They are looking to solve specific problems with information overload, and we look at e-forms as a key differentiator in that kind of problem solving."
The markets for electronic forms are varied, but interest is highest among companies with multiple locations. Cabra said he has seen great interest in the product from industrial businesses and companies with anywhere from five to 1,000 locations.
"This is a product that helps internal operations for many manufacturing companies to keep track of production, avoid duplicate products and reduce obsolescence," he said.
Tabor added that some common health-care forms have gained acceptance as e-forms. Siadak said his financial clients are utilizing e-forms to do loan and membership applications for credit unions.
Deason said e-forms have allowed his company to branch out into another high-tech arena. "We sell an online e-commerce service that started out as a product ordering tool," he said. "It's natural for a technology-based product to evolve quickly."
While Precept sells its own e-form product, other distributors act as VARs and designers for software companies. "With some companies, we simply sell the software," said Siadak. "With others, we load and implement it, tell them how to use it, and design the forms."
Siadak said there are several issues to consider when choosing an e-forms solution
• Open architecture. "You want to be able to pull information out of and upload it into databases," he said.
• PDF. "Make sure the PDF language is strong in the program so it can easily access other software systems," he noted.
• Flexibility. "The technology is still evolving, so you want to use a product that is upgradable," he said.
Deason said that in some companies, e-forms are still viewed as a disposable commodity. "There is a reluctance on the part of some companies to accept them as a viable alternative," he said. "Likewise, sometimes it's hard to get an experienced salesperson to incorporate e-forms into their tried-and-true selling arsenal."
Siadak said that selling e-forms was a learning curve for RBF, as his company started out selling them only to established clients. "As we began to learn the process and hire some additional technology-minded people, we were able to go out and get more business," he said. RBF now has clients that it only sells e-forms to. "It's allowed us to branch out into new markets, particularly insurance," he said. "They always latch on to new technologies faster because their product is information-based."
Siadak also said that he plans on doing a lot more e-forms consulting as the trend expands. "There are a lot more opportunities to sell as a consultant in this field," he said.