by Matthew Gonnering, Widen Enterprises

Concentrating on core competencies has been the most optimal approach taken by organizations to maximize profitability. Part of this concentration includes deciding when not to get involved with extensive system development that will shape and build an organization's brand integrity. Shaping and building brand integrity can take many forms, one of which is ensuring global consistency when promoting products and services. Digital asset management has evolved as one imperative tool that possesses the ability to assist marketing executives with consistent global communications.

Digital asset management systems can take on two forms; internal development using software or external development using application service providers. Abiding by the aforementioned core competency rule however creates an opportunity to maximize profitability by seeking experts in the digital asset management field with external development and maintenance.

To ensure we understand the differences between software providers and application service providers we must define each role. Application service providers possess all hardware and software on their secured site with client access through web browsers. Software providers place all hardware and software on the site of the customer with access through network folders and occasionally web browsers.

Based on the above descriptions, the differences do not seem too drastic but an ancient Chinese proverb states that beauty is only skin deep. With this in mind, a detailed assessment of the two most important categories, experience and cost, will help determine the depths of each model.

Software providers understand programming and how to manage critical data. They are in the constant state of development and have the ability to manage and organize extensive amounts of data from a variety of data sources. The cost to implement involves installation of hardware and software on-site. The software is versioned so additional costs are applicable when new versions are released. Disaster recovery and backups are the responsibility of the client administrator.

Application service provider experience stems from previous core competencies, typically graphic arts because of the large amount of images handled daily. A key aspect of managing images is the understanding of color spaces, file formats, and the cross platform environment used in the graphic arts industry. Managing and organizing the images is one thing, distributing them as usable working files is another.

The cost to implement digital asset management services with ASPs involves three areas of cost; setup, maintenance, and usage. The initial cost of setting up the system will include customization and a corporate branded digital asset access site granting global access to administrators and users. ASPs are accountable for updating to current technology, disaster recovery systems, security, and backups. An unlimited amount of global users have access to the system and usage costs are similar to cellular phones; pay as you use it.

HON Industries Transitions
HON Industries, a Fortune 1000 furniture manufacturer, implemented an ASP solution after experiencing the software package. HON made the switch to an ASP because of performance and service. "It's faster and responds better. The overall level of service we can provide our customers has increased dramatically," stated Audrey Hecht, Marketing Manager for HON Industries.

HON needed a digital asset management system that could integrate with their online presence and the software solution was limiting. "The technology was outdated - ASP has taken things to a level that is more easily integrated with our other online tools in the future." Audrey also mentions that the ASP allows her and other professionals at HON to concentrate on their job duties. "Things are 'hands-free' for HON employees so that they can spend more time contributing their talents to the company versus busy work."

The decision made by HON to switch from the software provider to the application service provider coincides with the introduction statement of maximizing profitability by focusing on core competencies. HON successfully supplies product images and information to a distribution network containing thousands of dealers and sales representatives. The key element of digital asset management for HON is not only supplying a mass amount of dealers and sales representatives with information but supplying the information consistent with HON messaging and current marketing efforts. The application service provider model allows HON to complete these tasks more effectively and effectively than the software provider.

Allsteel Makes the Switch
Allsteel, another giant furniture manufacturer, switched from a software application to an application service provider because they needed more custom features. Brandon Garrett, Allsteel's digital asset management administrator, communicates the importance of custom features. "We wanted this site to have the same type of personality that our other sites had and we got this using an ASP rather than software." Allsteel also made the switch to an ASP because of downtime issues with the software provider. "Downtime is almost non-existent with an ASP, which has proven to be the most beneficial item with Allsteel."

Downtime when using software providers does not receive immediate attention from the provider. Internal software installation means the problem needs to be addressed and corrected internally. The marketing department needs to report to the information technology department and the I.T. department needs to identify the problem, discover methods to fix it, and then correct it. A long, tedious approach to correcting a problem that takes away time and resources from the marketing and information technology day-to-day activities.

Allsteel now experiences application service provider support for rare downtime activity. Research & development personnel with application service providers carry devices that communicate directly with the systems. As soon as systems fail or become non-responsive back up systems are automatically launched while the problem is fixed. All of this takes place at the site of the application service provider. The problems are immediately addressed and corrected using the application service provider's personnel and expertise.

Each client has different needs when it comes to digital asset management. Cost and experience have been the most influential factors during the purchasing decision. Other factors have also been considered as highlighted below:

Motorola Decision
Motorola selected an Application Service Provider because meeting the general design requirements could only be accomplished through an ASP. Jim Scarlata, Motorola's Manager of Marketing Operations, needed a system that distributors of Motorola product could access quickly and easily. "Our criteria led us to a 3rd party solution that offered turnkey services, minimal investment, rapid deployment, and ease of use for the customers." The Motorola digital asset management system needed to be highly scalable and cost effective yet meet global demand with 24/7 capability. The Motorola team also needed the provider to be highly competent in the areas of asset manipulation and photographic services. "The ASP model had the technical capacity in the areas of server size, printing, and on-demand fulfillment," comments Mr. Scarlata, "which gave us the ability to meet the global demand."

Motorola had an immediate need to maintain product consistency globally because of the worldwide distribution of products. Motorola experienced an increase in earnings and drastic increases in volume shipments of certain products. A variety of factors contribute to the aforementioned successes one of which has been the implementation of the application service provider digital asset management system.

The Motorola digital asset management experience has been more than increased earnings and product shipments, it has received acceptance from the distribution channels for ease of use and product image consistency. Comments from the initial system launch include rave reviews.

"Thank you very much for your help. You have restored my faith in Motorola," comments one cellular services marketing organization after using Motorola's system. A regional Motorola marketing representative also comments, "this site is what my group has been in need of, maybe now Intelligence Everywhere is becoming a reality."

Reebok Selection Process
Doug Rammel, Vice-President of Information Technology for the Indianapolis based, Group Athletica, a subsidiary of Reebok International, agrees with Motorola. "An application service provider, particularly in the field of digital asset management systems, has to automatically understand both the management and digitization of graphic files across different, various software and hardware platforms." Group Athletica compiled a long list of complex requirements for their digital asset management system search, but what they really needed was a technology partner. Mr. Rammel adds, "We needed a vendor who had the benefit of years of experience both in the graphic arts and the graphic arts technology fields--we needed to supplement the knowledge and expertise that we already had. For us that partner was an ASP."

The strategic approach for Group Athletica to team with a graphic arts savvy ASP partner has proved economically beneficial. The rewards of choosing an ASP have come in several forms including significant time and cost savings. Group Athletica has drastically reduced the time to market as well as the expenses associated with that process. One of the primary benefits for Group Athletica has been consistent communication with their massive distribution network. They are not reaping all the benefits, however, as the distribution channels have also documented significant savings using the digital asset management system crafted and maintained by the ASP.

Group Athletica's distribution channels no longer need photography and prepress services to produce images for print media or internet use. The use of a graphic arts savvy ASP has provided these services to Group Athletica so the distribution channels no longer need to prepare product for print media or internet use. This approach also allows Group Athletica to control how their products are portrayed to the end user to ensure brand consistency from the start.

Overall, the differences between application service providers and software solutions are drastic. The technology and experience behind the scenes need to be carefully evaluated before selecting the right provider. Even in the age of technology and rapid global communication, the ancient Chinese proverb can be applied to the digital asset management industry; beauty truly is only skin deep.

About the Author
Matthew Gonnering concentrates on the graphic arts and graphic communications industry as the marketing manager for Widen Enterprises Inc., headquartered in Madison, WI. With 13 years of graphic arts and graphic communications experience, Matthew continues to focus on leading industry technologies and has been a featured speaker at several trade shows including the International Prepress Association Conferences and Strictly eBusiness. Other published articles can be seen in Content World Magazine, The IPA Bulletin, and Dealer Communicator.