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With
new laws forcing businesses to better control their documents, JC Data Solutions is
positioned to support any type customer with electronic and hard copy storage needs
Services
(JCDS-OTC: BB)
JC Data Solutions, Inc.
4847 Calvert Ave.
Dallas, TX 75247
Phone: 214-231-1003
Cary Allen
Chief Executive Officer
Interview conducted by:
Lynn Fosse, Senior Editor
CEOCFOinterviews.com
January 12, 2006
BIO:
Cary Allen, CDIA
CEO
Cary Allen grew up in the Midwest, graduated college in 1979 with a Bachelors of Science
in Business Psychology and Military Science; he spent the next seven years working for a
financial institution. During that time, he saw what software solutions were providing for
customers so he moved into software development. He had started a business in Brookfield WI,
providing contract services for accounting and software development. He was called up from
the Army Reserves to server in Desert Shield and Desert Storm in late 1990. In 1991, he
had the opportunity to go to Dallas, Texas to work for a software company that did work
for GTE. After five years of serving as VP of Sales, he took a job with a large Midwest
forms company as their Director of electronic forms systems. Seeing the great potential
for software use in document management arena he went to work full-time for JC Data
Solutions. With JCDS Cary has sold direct turnkey imaging systems for Financial, Medical,
Government, Manufacturing and Transportation markets. As CEO, Cary has developed an
infrastructure that provides a wide range of document management services to JCDS’s
resellers, distributors and customers.
Company Profile:
JC Data Solutions, Inc. (Other OTC: JCDS) is a manufacturer
and distributor of Document Management Systems. The company was first started in 1996
providing data collection and software integration for companies throughout the U.S. Since
then they have developed a full service line of document management programs including;
franchise development, software, (ScanDocs, ViewDocs and WebDocs), consulting services for
compliance and retention through Certified Document Imaging Architects, document scanning,
document copying, document storage, document destruction, media storage, document output
to print, fax, email or archive, data storage, web storage and retrieval of documents, web
surveys, email storage system, real-time data backup system, media storage, proof caddys,
preparation equipment, hardware including, scanners, attorney marketing software and
multi-function devices.
JC Data Solutions provides
comprehensive, innovative and cost-effective solutions for digital document processing and
management. JC Data Solutions puts client documents in digital formats that are
inexpensive to store, simple to backup and archive, and easy to retrieve in a fraction of
the time required for paper documents. JC Data Solutions proprietary software solutions
are targeted to the legal, health care, manufacturing, distribution and document storage
sectors, target markets in the $500 million electronic document management market growing
at 30% per year. JCDS trains and supports a unique nationwide network of resellers by
geographic market to target small to medium clients. JCDS has a home office in Dallas, TX,
technical support personnel in Erie, PA and satellite sales offices in, Houston, TX,
Mobile, AL, and Hot Springs, AR. JCDS was founded in 1996, with a management team that has
over 50 years of document solution experience.
CEOCFO: Mr. Allen, will you describe JC Data Solutions and
your core offering?
Mr. Allen: “JC Data Solutions is a full service document
management solutions company. We provide an opportunity for companies that are in software
sales, fulfillment services or who are looking to start their own DM business and give
them the opportunity to sell document management solutions.”
CEOCFO: What is involved
in document management?
Mr. Allen: “We have a couple of products, one of them is
called ScanDocs, which is a product that will take a paper document, put it through a
scanner and the software will actually take it and put it into most software programs that
are out there today. That is where we got our start; we built a program for one of our
customers that took documents and put them into a digital format for their customers so
they could put their customers into two different formats. We took the image and converted
it over to a Summation and a Filenet output file through our software. After we did that,
we put together our archiving retrieval software that would take documents and archive
them off to a place on your PC or off to a file server and then be able to retrieve those
documents with a key word search or a quote search. After we built that, we built a
product called WebDocs, which takes documents and uploads them to the web and then the
customer can see those documents anywhere in the country. We have several customers
utilizing that right now. We will store them for the customer or the customer can store
them on their own web-server and put it on their own intranet.
Since we developed those products, we also came up with a way of storing data for
customers so they could do their backups on our system. We also take data information and
store that for them at our location in Dallas Texas. We have the complete system set up on
the electronics side and we wanted to be a full-service company for document management so
we got into the hardcopy, and media storage. We opened a location in Dallas for storing
documents and retrieve those documents for the customers. We can then scan requested
documents for the customer and then deliver them via email instead of a hardcopy delivery
to the customer.”
CEOCFO: Do you have a
typical customer?
Mr. Allen: “We primarily target the healthcare,
attorneys, manufacturing and distribution. Those are our core customers, although our
products can be used by anybody who stores documents.”
CEOCFO: You target your
customers by geographic markets; will you tell us more about that?
Mr. Allen: “We have a network of resellers that are
located throughout the U.S. We do have one distributor in Erie Pennsylvania. We have been
working with them since the beginning and they are handling the northeast and doing a good
job of that. We are working with just resellers in all the rest of the country. Back to
who we are selling to, there are four different groups and one is the records management
companies and companies that are already storing boxes of documents and storing media for
their customers and we are taking them to that next step where they can do DM
electronically as well as hardcopy. We realize the hardcopy business is not going away so
we are working with those businesses and helping them go to the next step with their
customers.
The next people we work with are fulfillment companies like Toshiba that are selling
multi-function devices, which are copiers, and scanners; etc. When they are targeting
their customers, they are coming across customers that need solutions for document
management. We are also targeting courier companies, which are going through the same
thing many companies are in that their documents are becoming electronic. One of the
companies we are working with is Court File America, and they are taking documents that go
from the attorneys straight into the courthouse and we are helping them with that
transition and their customers for that transition. We also target companies that do
accounting or tax recovery for customers; those customers are trying to help individual
businesses to save money or find money that they should not have paid on taxes. They do
this through accounting procedures. We have a couple of customers that use our document
management system for themselves and when their customer saw it and wanted it, and we are
working with those customers today.”
CEOCFO: Please tell us
about the document management industry in general and why resellers and the end consumer
should be choosing JC Data?
Mr. Allen: “One of the things that we do in the document
management area is customizing our solutions for our customers. We have our core products
and our core procedures for putting together a document management solution for our
customers. We have a unique way of surveying the customer and coming back to the customer
with a product that is geared just for that particular customer. Everybody that deals with
and is involved with document management has their unique way of doing things. Even if you
have a manufacturer that is manufacturing widgets at one place and other manufacturing
widgets at a different part of the country, they have two different ways of managing their
documents and they have a different workflow. We fit into their workflow no matter how the
business is organized. We find out how a customer is working today; we then spend some
time with the customer prior to installation, to make sure the customer is getting what
they are wanting. We are not just selling a box; we are actually putting in something that
they can actually use right from the beginning.”
CEOCFO: What is the
revenue model for you?
Mr. Allen: “We have resellers and we will sell our
product outright to their customers’ customer. We have ongoing residual plans where
if the customer wants to lease the programs they can. They want to pay with a quick charge
and we have some plans for that, which will ease the customer into the product instead of
an outlying expenditure of X amount of dollars that they are not comfortable with at this
point because it does not fit their budget. We control the pricing of the software and it
is based on what the customers’ needs are. When we have developed a project for a
customer, the customer always see other uses for our product and how it benefits
them in making them more efficient and that is our slogan for our company; solutions for a
more efficient business. Company’s definitely become more efficient and they keep
coming back to us to.”
CEOCFO: You recently
started trading as a public company; why is this the right time?
Mr. Allen: “We are trying to grow our business. About a
year-and-a-half ago, we started to look at going public and the reason we did it was to
help us grow at a much faster rate than were able to do with our present revenues. We are
pulling in extra cash by going public. We are taking that money and growing our support
and sales side so we can sell more and develop more resellers. We worked with other
archival retrieval product, and we saw their biggest problem was their support. We are
concentrating on making our support services strong for our customer. One of our goals to
keep our customers happy.”
CEOCFO: Why should
potential investors be interested?
Mr. Allen: “The main reason investors should be
interested is that we are going to expand our business model and it is going to move fast.
The document management business is growing rapidly because of laws that have passed over
the last few years. We are set up perfectly to grow with our investors and to have
everybody make money. We are supporting customers and giving them what they need right now
and there could not be a better time in history to be involved with this and be involved
the right way.”
CEOCFO: In closing,
could you tell us if there is anything that you aren’t currently offering that you
would like to add?
Mr. Allen: “One thing that we are doing for customers,
which we are seeing a need for this around the country, is we are offering a franchise
opportunity for our software. We will provide everything from the scanner to a
workstation, all the customer needs is a place to work. We will provide a scanner, a
computer and all the software necessary to be able to control the documents and do things
for his or her customers. We built in control management software that provides billing
and job control reports. We developed a model that will set up an individual that wants to
get into business. We will help them come up with customers. We will take our sales group
and help them go to our reseller’s network and find customers that need back filing.
We also provide a source for media storage, retention programs, consulting, and we will
help that customer, that franchise, get into all the areas of document management.”
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