The Right Scanner for the Right Application

By Henrik Vestermark

Large-format scanners have been around since the mid- to late 1980s. Early adopters, especially in the CAD market, had an obvious need for scanning legacy drawings. As the market matured, large-format scanners moved into the mainstream, fueled by performance improvements, lower prices, and in the mid-1990s, the introduction of large-format color scanning was followed by wide-format color copying a few years later. During the past five years, color image-capturing technology has improved, broadening applications.

The above scenario describes a large-format scanner used for scan-to-file 50 percent of the time and scan-to-print the other 50 percent; all E-size drawings are half in black & white and half in color. The net present value of the investment shows $20,538 after one year of scanning 1,000 drawings.

Naysayers once said large-format scanning would only be a transition technology, and fade away after existing paper documents had been recorded. Demand, however, remains continuous, and recently major players in the market are integrating the scanner with the printing device, futher indicating a viable market.

Do your needs Warrant such a solution?

Large-format scanners, ranging in price from $9,000 to $30,000, are serious investments. If your company is considering making this investment, read on. The following system review and analysis of return on investment (ROI) will help you assess whether such a large-format scanner is right for your company.

While several uses exist today for large-format scanning, scan-to-file is the classic application. It originated in the CAD world as a way to reuse legacy paper drawings by scanning them into an electronic format or directly into a CAD system to recoup intellectual property (IP).

Typically, two approaches exist for scan-to-file. The first is to convert drawings on demand. The second is to convert all legacy drawings into an electronic drawing archive. The latter is justified when you must reduce the amount of storage space, and it prevents further deterioration of drawings. Disaster recovery is another reason. A city engineering department, for example, can make electronic copies of drawings of bridges, utility lines, buildings, and more, and store them in a safe, fireproof location.

Scan-to-file can be outsourced to a third-party scanning service, or you can invest in a system to do the scanning in-house.

Another application, scan-to-print, or S2P, was first applied following the introduction of large-format color scanners, enabling business owners to expand services to include color poster and other large-document reproduction. The scan-to-print workstation was created using a large-format scanner as the front-end to a wide-format printer. Reprographics shops were the first to hop on board, with other markets, such as architects, copy shops, and photo labs following shortly thereafter.

And yet, a new use, scan-to-application, has popped up in recent years, propelling large-format scanners into new niche markets. For example, takeoff estimating for the construction industry is a process typically completed with traditional digitizers. I recently stumbled on a new application from Callidus of Tulsa, OK, that takes information from scaled floor plans, site measurements, AutoCAD, and scanned drawings to calculate all the material needs and prices required for flooring installations, such as carpet, ceramic, wood, raised access, and more.

In-House or Outsource?

Given the costs of these systems, however, how can you justify the investment in the large-format scanner system? If you need a large-format scanner for one or more of the applications described above, then you are either a service provider or a service user. To figure out whether to outsource or bring the system in-house, it’s important to reflect on some key considerations.

Some companies do not allow the intellectual property (IP) held in their drawings to leave the facility. If this is the case with your company, your decision is easy. You have no choice but to invest in your own system.

In addition to protecting IP, in-house investment offers three possible competitive advantages. The first is innovation. Adding an in-house large-format scanner allows a company to offer new, even innovative, services or solutions to use both in-house and to sell to clients. Scanners that move drawings into an electronic format enable architects and engineers to view and edit them simultaneously, leading to improved workflow, tracking, and even collaboration.

Large-format scanning can also help a company differentiate itself from the competition and expand into other business areas. Engineering firms can offer clients the ability to select, view, download, and edit plans online in real time. Expanding services can expand your client base and in turn expand your revenue.

Intellectual property and service issues aside, the most important factor in determining whether your company should purchase its own large-format scanner is cost. Quite simply, if a large-format scanner does not improve your bottom line, you probably should not invest in one. If, however, you can prove a clear ROI by reducing costs and increasing profits, an in-house service can take your business to the next level. But how do you determine that?

Calculating Your ROI

At The Other Solutions, we have developed a tool that can simplify this decision-making process. This tool, found at theothersolutions.com/Wfs/All/ROI.htm, is designed for both new and experienced users.

First, narrow your list of options. If you’re already familiar with large-format scanner options, you can skip this step. But between the top three manufacturers there are 87 different models, and the choices can be overwhelming. Using the tool’s “Narrow it down” button reduces the choices to a more manageable number. By answering questions about your industry and the document sizes you use, your selection is condensed to a choice of three to five scanners.

Second, determine and justify your ROI with the next button. This gets to the root of justifying your business investment. It presents two scenarios, their breakeven values, and ROI. The first breakeven analysis is based on an equipment purchase; the second applies to leasing the equipment. Finally, the ROI analysis indicates whether it is financially better to buy or lease equipment rather than outsourcing the scanning work to a service bureau.

In a nutshell, this tool asks you to enter brand, model, number of drawings, scanning and copying parameters, the number of years you plan to use the scanner before upgrading, production parameters, and optional details. Then it automatically calculates your ROI.

The ROI results include details like your capital investment based on the manufacturer’s suggested retail prices (SRP), the estimated lease cost per month, the number of scans or copies you need to break even on your investment, and the net present value. If this number returns as a positive, forge ahead with your plans to buy a scanner system; if negative, you are better off outsourcing your scanner needs.

Where to Go From Here?

Armed with these new tools and the data they provide, you can now better justify your buying decision for your business. If you invest, the next step is to find the best deal. But that’s a topic for another time. 

Henrik Vestermark is an independent consultant and president of The Other Solutions — an online provider focusing on delivery of affordable solutions and consultancy to the large-format and IT markets. To comment on this article, send e-mail to [email protected] or DE-Editorsmailto:[email protected].

The Other Solutions, Inc. 
Meridian, ID
theothersolutions.com

Callidus
Tulsa, OK
getcallidus.com