Thanks to technological advancements, association staff can work more quickly and efficiently than ever before. Information can be made available 24 hours a day through the use of faxing, the Internet, and voice mail. Staff can meet without meeting physically and join discussion groups without leaving their desks.
But technology has also created new demands that associations must address to make technology function effectively in their environments, including significant budgetary expenditures, members' expectations for instantaneous customer service, and an enhanced need for staff expertise and training.
Survey findings
Big money, big decisions. According to ASAE's recently published 1997 Association Technology Trends study, the technology budgets of more than half of the 1,185 survey respondents have increased; spending accounts for about 2.5 percent of their total budgets for hardware, software, training, and technology consulting. In another ASAE study, the 10th edition of the Operating [TABULAR DATA FOR TABLE 1 OMITTED] Ratio Report (ORR) conducted in 1996, associations spent an average of 1.4 percent (median of 0.4%) of their total association income on computers and technology in 1996 (0.8% average on hardware and 0.3% on software).
While technology will continue to represent a significant expense for associations, it generally is getting cheaper, says Mark Streger, executive vice president, ABLAZE Business Systems, Inc., Falls Church, Virginia. Training is also getting somewhat easier and should become less expensive since a lot of software is becoming more self-explanatory than in the past, he points out. Associations do spend a lot of money on technology, says Streger, but, on the other hand, it results in greater productivity and often requires less support staff.
This supposition is partly corroborated by the ORR mentioned above, which cites that personnel costs as a percentage of association income have declined from a median of 38 percent in 1977 to 29 percent in 1996. At the same time, costs per employee have risen more than twofold, indicating that there are fewer but more highly paid and, presumably, more efficient employees than before. The median association income generated per staff member rose 14 percent during the three-year period 1993-1996.
Although the cost to acquire computer systems and software has generally decreased, the extent of the equipment needed has expanded. Such expansion has staffing implications; for example, it is not a coincidence that salaries in association technology positions have increased as demand for staff with the expertise to direct the associations' technological operations has risen. According to the 10th edition of ASAE's Association Executive Compensation & Benefits Study (AECBS) released in December 1996, median salaries of management information systems directors increased 23 percent from the ninth edition two years earlier, one of the largest increases of any position. Related to these increased salary expenses for MIS positions in the AECBS, the 1997 Association Technology Trends finds that nearly half (47 percent) of survey respondents report an increase in staff computer training budgets.
Anxiety abounds
A cause of heartburn. With this significant investment in equipment, talent, and staff training, it's little wonder that many association executives are apprehensive about technology. At ASAE's 1995 Financial Management Symposium, executives ranked technology as the No. 1 issue that gave them heartburn.
This anxiety continues two years later, observes Kathy Krajewski, president, Krajewski & Associates, Inc., a consulting firm in association management and technology located in Rockville, Maryland, and Chicago. A rising proportion of requests for proposals received by the firm have to do not only with technology itself, but also with how to structure the organization to make the best use of technology.
Maynard Benjamin, president, Envelope Manufacturers Association, Alexandria, Virginia, believes association executives can relieve some of their anxiety about technology if they view it not so much as a revolution but as an evolutionary process. Technologies that have been around for some time are beginning to mature, he points out.
Table 2: Computer Systems 1997 Association 1996 Association Computer Systems Technology Trends Technology Trends Stand-alone PCs 36% 43% Networked PCs 81% 72% Mainframe computers 14% 16% Table 3: Computer Operating Systems(*) Computer Operating 1997 Association 1996 Association Systems Technology Trends(*) Technology Trends(*) Windows 95 64% N/A Microsoft Windows 37% 14% DOS 37% 79% Windows for Workgroups 25% N/A MacIntosh 22% 26% Windows NT 14% 8% UNIX 8% 10% * Percentages add to more than 100% due to multiple responses.
For example, the next wave in the evolution, Benjamin believes, will be the refinement of current technologies such as the Internet, which will feature such changes as static images being replaced by sharper ones that move and are more interactive than the current generation.
But evolution takes time, he cautions, adding that associations must continue to offer a broad array of technologies to serve the various constituencies represented by their memberships.
Member communication technologies
Not a replacement. The most dramatic changes in technologies that associations use to communicate with their members occur in online services. Since ASAE's 1996 editions of Association Technology Trends and Policies and Procedures in Association Management (P&P), there has been a twofold increase in use of e-mail and a fivefold increase in use of Web pages (see Table 1).
Linda Chreno, administrator with the association management company Smith, Bucklin & Associates, Inc., Washington, D.C., explains that associations have many motivations for wanting to go online, such as the following:
* showing their members that they are technologically savvy;
* cutting costs with such activities as capturing meeting registration online;
* generating new memberships; and
* providing access to association events, services, and products.
Technology, however, will never replace the human side of associations, believes Chreno. Rather, it will continue to be just one of the various tools used to facilitate associations' core services.
Web site issues
Dearth of business plans. Most associations do not appear to be using their missions to determine the general direction and context within which technology will be used in their organizations. In the 1997 Association Technology Trends study, only a third of the respondents report having a business plan for their Web sites. This is an improvement, however, since in ASAE's 1996 Policies & Procedures in Association Management, only 11 percent of associations had an associationwide marketing plan that included all services and products.
Organizational size apparently plays a role in determining whether an association will have a business plan. Among respondents in the study's largest budget category ($10 million or more), 58 percent have business plans for their Web sites, compared to just 13.5 percent among organizations in the smallest budget category (less than $500,000).
Planning issues aside, revenue generation is apparently not the first consideration of associations when it comes time to decide whether to offer online services or Web sites, since two thirds of the survey respondents report operating at an "expected and acceptable loss." One of the areas that could be a potential Web site revenue source - advertising - is not yet a revenue factor. Only 14 percent of those respondents with Web sites currently have advertising (54 percent have no plans to add it), and only 8.5 percent consider it very important to adding value to their Web sites.
The lack of interest in advertising as a means to generate revenue comes as no surprise to Streger of ABLAZE. He believes that Web sites that offer a service will be the ones to generate significant revenue, such as those offering a referral service for a fee or charging download fees to obtain a journal article.
One issue that many associations are struggling with, says Smith, Bucklin & Associates' Chreno, is whether to put their journals on the Web site. For many associations, periodical subscriptions are a major source of revenue and a primary benefit of membership. If they are available online, many associations fear it would be a deterrent to joining or subscribing. Associations with online journals, however, often provide access only to back issues.
Computer systems
PC networks show growth. What are associations using to drive all of this technology? As Table 2 shows, between the 1996 and 1997 Association Technology, Trends surveys, the use of networked PCs has increased 13 percent, paralleling a 16 percent drop in the use of stand-alone PCs, and a 13 percent decrease in the use of mainframe computer systems.
Novell remains the most used network software (49 percent in the 1997 survey compared to 58 percent in 1996), followed by Windows NT (18 percent vs. 2 percent in 1996), and Windows for Workgroups (12 percent vs. 10 percent in 1996).
As Table 3 illustrates, the computer operating system landscape has changed significantly since the last edition of Association Technology Trends. Apparently more than half of the DOS users in the 1996 edition were waiting for the new systems to be developed, since use of DOS has dropped by more than half, and Windows 95 now commands nearly two thirds (64 percent) of respondents' share of the market. Even though operating systems are currently dominated by Microsoft products, the day may well come when the Internet becomes the operating system used by all who have access to it, making it a standard system, according to Benjamin. The Association Technology Trends study will be watching for that development.
Evaluating software use
Microsoft leads the pack. What software are associations using in their computer systems? In a word, Microsoft Table 4 illustrates that rise of Microsoft software leads by a wide margin in every major category except desktop publishing. The operating systems that run the software are dominated by Microsoft as well. Most believe this standard is beneficial for associations because files can be easily shared and training can be more easily transferred if there is an established industry norm. But for those who use less standard applications, the industry's dominant player makes their world a lonely one.
Integrated association management software. The real promise in software will be in those products that have productivity tools attached to the functions they serve, according to Krajewski. This type of software can track the status of mechanical, multistepped procedures in many association functions at any given time. It can save enormous amounts of tithe and increase efficiency for such functions as order processing, membership dues payments, refunds, and member application processing, which usually must pass through several steps and departments before being finalized.
For this type of system to work optimally, Krajewski says, the various functions must be linked so that there is no need for re-keying and duplication. The easiest way to maximize the value of such tools is with the use of integrated association management software, she believes.
However, among survey respondents, only 40 percent use such software. Krajewski believes the ratio needs to be closer to 95 percent if associations want to maximize their efficiency. In larger organizations (budgets of $10 million or more), 53 percent use integrated software while only 18 percent of associations in the study's smallest budget size ($500,000 or less) use this type of software. Overall, the most popular integrated programs used by survey respondents are iMIS (30 percent) and Smith-Abbott (12 percent). Of the additional programs that respondents submitted in the "other" category of the survey, AMPAC/Morant and Rapattoni received the most frequent mention.
Table 4: Major Software Application Use Computer Application/ Percentage of Software Used associations that use it Word processing Microsoft Word 58% WordPerfect 31% Spreadsheet Microsoft Excel 61% Lotus 14% Desktop publishing PageMaker 33% Microsoft Publisher 7% Graphics Microsoft PowerPoint 24% PageMaker 20% Database management Microsoft Access 29% FileMaker Pro 7% FoxPro 6%
Whatever the package used, Krajewski advises associations not to use the industry standard if it's not right for them. Each association must assess its internal and external information needs before choosing a system. A good sign, she adds, is that more associations are adapting and changing ways that they conduct some of their business to fit the software rather than customizing programs to suit them. By so doing, the software programs are up and running faster, are much less expensive, and are easier to get upgrades and servicing.
[TABULAR DATA FOR TABLE 5 OMITTED]
Realignment likely
How does changing technology impact the number and variety of associations serving different technology industries? Certainly any organization serving the telecommunications industry can experience explosive growth cycles over the medium term, according to Benjamin. New organizations will form to serve emerging technologies, and current groups will grow to parallel the market.
At the same time, associations that serve the expanding sector of professionals who develop online services are likely to proliferate. It is logical to assume that there would be a certification for Webmasters or computer ad generators, for example, says Chreno. Who will certify them if not associations?
Experts believe more traditional technologies will never fade out; there will always be a need for printed, mailed communication. But their growth will inevitably level off as technology advances. Ron Davis, chief economist for the Printing Industries of America, Alexandria, Virginia, points out that while print/ paper now occupies a smaller slice of the media pie (because so many new technologies are emerging), in absolute dollars, the sales volume for the printing industry grew by 6 percent last year.
Davis believes a blend of traditional and electronic printing will continue for some time to come, but that "the further out you go, that balance will likely shift in favor of electronic media," says Davis.
Staffing issues
Noting a significant change from just two years ago, Krajewski says that at least 30 percent of her firm's clients now want guidance on how to realign their staffs to address their technology situation. Their questions are: What levels of expertise should staff have? How should the management information staff work with other departments? What should be the line of command?
MIS location. According to the 1997 Association Technology Trends study, more than half (51 percent) of the MIS departments are located within the administration function in associations, while 15 percent are in a separate MIS department, and 13 percent are part of the finance department. Again, the size of the association has some bearing on where this function is located.
In general, the smaller an organization's budget, the more likely it is that the MIS function will be part of the administration area. For example, in those associations with budgets less than $500,000, 72 percent locate the MIS function in administration and only 1 percent have a separate MIS department. By contrast, 59 percent of the associations with budgets of $10 million or higher have separate MIS departments, and 19 percent locate the MIS function in administration. Other departmental locations for the MIS function that respondents wrote in include communication and membership.
Size of staff. Overall, respondents have an average of 2.1 and a median of 0.5 full-time MIS staff (full-time equivalents) to handle their association's computer and technological needs. As illustrated in Table 5, the size of the association clearly has an influence on the size of the MIS staff.
Should Internet services be outsourced? Approximately 37 percent of participating associations in the 1997 Association Technology Trends do not have MIS staff. These organizations must outsource many of their computer functions, including Web design and maintenance if they have an Internet site. Evaluating the financial ramifications of whether to outsource or hire staff is certainly one of the primary decisions that association executives must make.
Looking at a cross-tabulation of the data from the study of organizations that outsource the design of their Web sites (Table 6), 77 percent of them are losing more money than they would like on their Web sites, compared to 23 percent of the associations that develop Web design in-house. For associations that outsource Web maintenance, 61 percent are losing more money than they would like on their Web sites, compared to 39 percent that use in-house resources.
Does this mean that organizations that outsource this activity will lose more money than those who do it in-house? That answer depends on several factors, says Joanna Pineda, president, Business Information Network, Inc., Alexandria, Virginia. On one hand, it could be that it's easier for organizations to identify labor costs when activities are outsourced and survey participants may be basing "losing money" on how much it cost them to put up the Web site rather than on what value the site is bringing in. On the other hand, she says, it could be that internally developed sites have more internal support and attention given to finding ways to integrate the site into more profit-making opportunities.
Still another factor that applies to many organizations is the need to develop more realistic expectations of costs versus the benefits of developing and maintaining a Web site. The problem with this last issue, reflects Pineda, is that there are so few good models of financially successful sites that organizations often don't have a clear idea of what they need or want, or how to assess the value for their money if they outsource.
Table 6: Web Site Design and Maintenance Web site is losing Web site is more money than major profit Function you would like contributor Web design Outsource 77% 50% In-house 23% 50% Web maintenance Outsource 61% 20% In-house 39% 80%
Before deciding to outsource, Pineda urges associations to develop a realistic idea of what they need by weighing both the tangible and intangible benefits of developing a Web site. Then determine if an outsourcing firm can do the job more efficiently than in-house staff, once opportunity costs for internal staff time are considered, such as what projects won't get done while staff is busy working on the Web site.
Changes in work styles. Telecommuting is on the rise. According to the 1996 Policies & Procedures study, 23 percent of the associations had employees who worked at home at least some of the time (a similar proportion - about 20 percent - was reported in the 1996 Association Technology Trends). Krajewski believes that the proportion today is probably closer to 70-80 percent of associations that have at least some telecommuting, aided by technological advances that allow employees to receive mail, faxes, and files electronically at home. (The 1997 study did not ask this question.)
Looking ahead
E-mail refinements. Amazing advancements notwithstanding, technology, users will continue to face challenges. One concerns file-sharing. When e-mailing, for example, many users cannot successfully transfer file attachments because of the plethora of e-mail packages available that use different operating platforms. Benjamin predicts that in the future, a body such as ANSI (American National Standards Institute) will establish one standard protocol that will be transparent to the user and will eliminate this problem, making file-sharing easier.
Education delivery. John Shaheen, executive vice president, Managing Education Resource Group, LLC, Southfield, Michigan, an adult education consulting firm, believes there will be heightened interest in distance learning in the near future. Distance learning includes a number of mechanisms such as video-conferencing and interactive programming by satellite transmission, cable modem, Internet TVs, and so forth.
Shaheen cites two reasons for heightened interest: increased accessibility and greater affordability. Due m part to provisions in the Telecommunications Act of 1996, the bandwidth on the Internet will be broader, so that two-way video using camcorders can be used for interactive transmissions instead of expensive specialized equipment - the only option until recently. Another advantage of cable modem access will be the increased speed of transmissions - up to 100 times faster - making educational delivery via this medium more attractive.
Other factors that bode well for distance learning, according to Sheehan, are its interactive nature and ability to cut travel costs and time. The type of educational programming that will be most suitable for these media, he believes, are those that are long term and repetitive in nature, such as coursework towards certification, licensing, or accreditation. Board and executive meetings will also take place increasingly via this venue.
Some long-range advice
Benjamin recommends developing a long-term vision for your technological needs. Don't get dazzled by the latest advancement, he advises. Remember that you are servicing members and that whatever choice you make, it must be the best one to serve that end. Have a technology business plan with strategic long-range goals. Then technology will be your ally.
RELATED ARTICLE: ASAE Resources
* The 186-page 1997 Association Technology Trends is $95 for ASAE members, $115 for nonmembers; request product AMR213572. The 1996 Association Technology Trends and 1997 Association Technology Trends will be available together while supplies last - $140 for ASAE members, $160 for nonmembers; request product AMRPRTECHTD. To order, call (202) 371-0940, fax to (202) 371-8315, or e-mail mbrsvccen @asaenet.org. Prices are subject to sales tax and shipping costs.
* Coming soon: A forthcoming ASSOCIATION MANAGEMENT article will further explore results from the ASAE Foundation-Fusion Productions "World-Class Web Sites" project. An expansive "World-Class Web Sites" handbook is also in the works.
Editor's note: ASAE collaborated with Fusion Productions, Webster, New York, to produce the 1997 Association Technology Trends study. The sections on the World Wide Web were solely designed by Fusion Production and funded by the ASAE Foundation.
Tracy Casteuble is associate director, ASAE Research and Information Services.
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