error codes and calls have stopped!” i have not had one ... · editor-in-chief charles brewer is...

Janu

ary

2015

Vol

ume

6, N

o. 1

thei

mag

ing

chan

nel.c

om

OFFICE-PRINTINGMARKET YEAR

IN REVIEW:STEADY PROGRESS

IN THE FACE OF CHANGE

DESPITE DECLINES,OEMS HUNT FOROPPORTUNITIES

IN LOWER-MARKETTIERS DURING 2014

OPTIMIZE YOURIT ENVIRONMENT

TO PREPARE FORNEW OPPORTUNITIES

AND THREATS

GETTING COST INFORMATION FOR

YOUR ASSESSMENTWHEN THE CUSTOMER

SAYS ‘NO!’

NEWOPPORTUNITIES

0115_tic_cover_V1_r2.indd 1 12/27/14 8:03 PM

http://theimagingchannel.com


Introducing Samsung’s newest multifunction printers—the world’s fi rst lineup powered by Android,™ running on a 10.1" interface. That means you get a platform that can grow and adapt to fi t your needs, while making everything from confi guration to mobile printing more convenient and intuitive than ever. Everything it does, it does smarter.So everything you do is smarter too.

Take a virtual tour now at samsung.com/smartify

Samsung power. Smarter everything.

SMARTIFYYOUR BUSINESS.

© 2014 Samsung Electronics America, Inc. All rights reserved. Samsung is a registered trademark of Samsung Electronics Co., Ltd. All products, logos and brandnames are trademarks or registered trademarks of their respective companies. Android and other marks are trademarks of Google Inc. Screen images simulated.

Samsung.indd 7 9/25/14 2:36 PM

http://www.samsung.com/us/business/smart-printer-solutions/index.html

These are real quotes from real customers. Contact us today to learn how Innovolt can help you increase revenues and reduce costs.

404.467.6331 [email protected] www.innovolt.com

“After installing Innovolt the error codes stopped, not a single error code since installation.”

“After explaining the benefit of having protection from not just surge but all 5 power disturbances, we purchased Innovolt.”

“After placing the Innovolt device on the machine, the error codes and calls have stopped!”

“After replacing the ESP device with the Innovolt unit, I have not had one call or code since installation.”

“The calls and codes have stopped after installing the Innovolt device. The device has recorded 3 voltage sags and 8 power outages in just 2 weeks, I am glad these events did not reach the machine. This is a great tool for us to have!”

ads.indd 8 12/23/14 7:55 AM

http://innovolt.com

4 www.theimagingchannel.com

January 2015 volume 6, no. 1

24Proposed logo revision, 07/2010, EH

pg.

10

pg.

pg.

30IN EVERY ISSUE

6 Editor’s Letter Contributors 8 The Imaging Channel Online

10 SpeakEasy: Doug Albregts, Sharp by PATRICIA AMES

14 Force Multiplier: Technology United Represents at the ECS by AMY WEISS

18 Office-Printing Market Year in Review: Steady Progress in the Face of Change by ROBERT PALMER

24 Despite Declines, OEMs Hunt for Opportunities in Lower-Market Tiers During 2014 by CHARLES BREWER, ACTIONABLE INTELLIGENCE

30 Optimize Your IT Environment to Prepare for New Opportunities and Threats by MICHAEL HOWARD, HP

32 Getting Cost Information For Your Assessment When the Customer Says ‘No’ by WEST MCDONALD, PRINTAUDIT

34 New Technologies Take Cues From the Past by JORDAN DARRAGH, PRINTRELEAF

38 People: The Driver for the Future of MPS by TONI DUGAL, NOVITEX

40 Using LinkedIn to Grow Your Dealership’s Sales and Learn the Digital Language of Your Buyers by LINDSAY KELLEY, DEALER MARKETING

IN THIS ISSUE

004 TICTOC.indd 4 12/23/14 10:20 AM

ads.indd 8 12/23/14 7:57 AM

http://lmisolutions.com

Volume 6, Issue 1theimagingchannel.com

from THE EDITOR


Proposed logo revision, 07/2010, EH

PUBLISHER & EDITOR-AT-LARGE Patricia Ames

EDITOR-IN-CHIEF Amy Weiss

CHIEF ANALYST Robert Palmer

ART DIRECTOR Susan Kidwell

REACHING THE STAFFStaff may be reached via e-mail, tele-phone or mail. A list of contact informa-tion is also available online at http://www.theimagingchannel.com.

E-MAIL: To e-mail any member of the staff, please use the following form: [email protected]

EDITORIAL OFFICE (weekdays, 8:00am – 5:00pm ET)Telephone: 407-900-1885

CORPORATE OFFICE (weekdays, 8:30am – 5:30pm PT)Telephone: 702-720-4889Fax: 440-625-5556

The Imaging Channel is published quarterly by BPO Media. Inquiries, back issue requests, and address changes: Mail to: 840 S. Rancho Dr., Suite 4-558, Las Vegas, NV 89106

© Copyright 2015 by BPO Media. All rights reserved. Printed in the U.S.A. Reproductions in whole or part prohibited except by written permission.

The information in this magazine has not undergone any formal testing by BPO Media and is distributed without any war-ranty expressed or implied. Implementation or use of any information contained herein is the reader’s sole responsibility. While the information has been reviewed for accura-cy, there is no guarantee that the same or similar results may be achieved in all envi-ronments. Technical inaccuracies may result from printing errors and/or new developments in the industry.

Media Kits: Direct your Media Kit requests to 702-720-4889 or [email protected]: For information on single article reprints contact [email protected]

I GENERALLY LEARN a lot by reading the articles submitted for The Imaging Channel. Usually what I learn is related to the managed print market in some manner, as was the case in this issue: why it’s so hard to get pricing information for assessments,

for example, and how LinkedIn may be the best CMS out there. But every now and then someone throws out a piece of information that is seemingly wholly unrelated, and yet ties it in, making me doubly fascinated. Our Chief Analyst Bob Palmer did that to me in this issue, throwing in an interesting little tidbit about the Namaqua chameleon. I was fascinated by the Namaqua chameleon, and how Bob so aptly related it to the office printing industry.

The chameleon is often used as a signifier of change and adaptability, which is certainly appropriate, and it’s why we put one on the

cover of our first issue of 2015. The Namaqua, however, is not the colorful creature that usually comes to mind when picturing a chameleon. Nonetheless, the comparison was an apt one, and you’ll have to go read his article to learn more about this creature that limits its color shifting from light to dark gray, and why it may well be the best representative of the office printing industry.

Now having said that, the chameleon pictured in the article (and on the cover of this issue) is not a Namaqua, because artistic license takes over at some point and we go for the eye-catching option. So in the interest of full disclosure, I present the Namaqua chameleon.

Sincerely,Amy WeissEditor-in-Chief

CHARLES BREWERis the president of market research firm Actionable Intelligence. Brewer has nearly 20 years covering technology and business and has spoken at numerous industry events around the world.

JORDAN DARRAGH is the founder and CEO of PrintReleaf, provider of The

PrintReleaf Exchange (PRX), a cloud-based program that converts paper consumption into trees.

TONI DUGAL is the Vice President of Solution Services at Novitex, where she leads the development of Novitex’s MPS practice. Prior to Novitex she was the Vice President of Professional Services and Transition at Xerox and Director, US MPS Service Delivery at Hewlett-Packard.

MICHAEL HOWARD is the Worldwide Security Practice

Lead for Managed Services for HP’s Printing and Personal Systems Group. He is currently responsible for evolving the strategy for security solutions and services and educates customers on the importance of security policies and procedures for imaging and printing.

LINDSAY KELLEY is the chief marketing strategist with Dealer Marketing, a full service marketing agency focused on copier and managed IT services dealers.

She has served in a marketing function

for over 17 years including working with the marketing lead for a large copier dealer.

WEST MCDONALD is the VP of Business Development for Print Audit and the owner of FocusMPS. He is also the current Chair for the CompTIA Managed Print Community.

contributors

Happy New Year! May you be both adaptable and aggressive.

BPO Media strives to be an environmentally friendly company.Please help us by sending address corrections or removals

by email to [email protected].

photo: Wikimedia

006_EdLetter_Mast.indd 6 12/23/14 8:18 AM

mailto:info%40bpomedia.com?subject=Address%20correction%20or%20removal


ads.indd 8 12/23/14 11:25 AM

http://technologyunited.com


ONLINEtheimagingchannel.com{ }

Visit The Imaging Channel Website For Exclusive Blogs and Product Profiles

� The Future of Our Business — The Wookie in The Room by Greg Walters

� ECS: Talk Tracks Equal Soundtracks by Patricia Ames

� HP’s Split: Is This My Long-Awaited Book Project? by Jim Lyons

� Remote Workers and the Paperless Office by Greg Walters

� Becoming the Perpetually Valuable MSP by Dave Sobel

� A Funny Thing Happened On the Way to Digitization by Jim Lyons

Connect With UsWe want to stay connected with you, and we love to hang out on Twitter! In addition to the @ImagingChannel Twitter feed, follow us individually: @atweiss (Amy Weiss), @palmerrg (Robert Palmer) and @OTGPublisher (Patricia Ames). We look forward to building a rapport with you both in print and online.

Miss an Issue of The Imaging Channel?Full issues of The Imaging Channel are available in a digital edition at http://www.theimagingchannel.com/index.php/getting-started/ digital-editions

Industry Blogs

� Samsung Reorganizes, Reaffirms Its Commitment to the Channel

� Epson Joins List of Vendors Pushing Inkjet Into the Office Workgroup

� Turn Your Tablet Into a Customizable User Interface With Ricoh’s New A3-Size MFPs

� HP Is Betting Big on 3D Printing With New Multi Jet Fusion Technology

� Xerox Boosts Printer/MFP Lineup With New Monochrome Machines

� The Big Split: HP to Separate Its PC/Printer and Enterprise Businesses

Analyst Corner

Insights and thoughts from members of the imaging industry

� CPP Comparison of Three Mobile Inkjet Printers: Canon PIXMA iP110, Epson WorkForce WF-100, HP Officejet 100.

� CPP/CPC Comparison of Four A3 Workgroup Color MFPs: Ricoh MP C3003, Konica Minolta bizhub C284e, HP LaserJet Enterprise 700 Color MFP M775dn, Lexmark X925de MFP.

� CPP Comparison of Four A4 Workgroup Black and White MFPs: Xerox WorkCentre 4265/X, OKI Data MB770f MFP, HP LaserJet Enterprise MFP M630f and Lexmark MX711de MFP.

The gapTCO Report

The Imaging Channel’s Chief Analyst Robert Palmer breaks down the big stories

Each month gap Intelligence and The Imaging Channel bring you the gapTCO, an intuitive, graphical user experience designed to

allow simple and easy analysis of the total cost of ownership of printer and MFP devices.

008Online.indd 8 12/22/14 5:35 PM

ads.indd 8 12/23/14 7:58 AM

http://mse.com


THE IMAGING CHANNEL sat down with Doug Albregts, president of Sharp Imaging and Information Company of America (SIICA) at the Executive Connection Summit in Scottsdale and learned that “laid back” can be quite irresistible. Join me in the SpeakEasy.

How long have you been in your current role at Sharp? I started November 2011, so I’ve completed my third year.

So how’s it going? The technology wasn’t new for me, but this industry was new for me. When you look at the industry in terms of running it from a manufacturer perspective, there are a lot of things we can clean up and do differently and be extremely profitable. One of the things we’ve done in the last two years is grow our operating income by triple percentage digits by just changing the mindsets

around working capital and focusing on specific efforts to drive the business.

For me it’s been a heck of a ride. I’ve learned a lot. I enjoy it; I embrace it. I’ve made friendships that I’ve never had before. I’ll have lifelong friends among our dealers whether I am in the job or not. I have a great deal of respect for what they’ve been able to do. It’s a very complicated business.

Those are big changes you’ve made in a short amount of time. Sharp committed to a direction — they did not want an industry person in this position, they wanted a business person with a technology background. They wanted someone to look at this as a technology business, not as “I’ve been a copier guy for 30 years, and I’m going to do it the same way.”

The decision to hire me was controversial. I came in with an open mind to a lot of negative press and a lot of negative feedback, honestly.

I am sure it gave you some gray hair!Yes, it gave me some serious gray hair. And then shortly after I came into this job, Sharp had its financial crisis.

And people are still talking about that.Yes, and rightfully so. I understand why they are talking about it. But the Business Solutions Division, which is the B2B division within Sharp we are part of, has always done exceptionally well. Looking

back on it, Sharp made capital investments during that time that they probably wish they could have back. They invested heavily in LCD manufacturing right when the global economy collapsed in 2007/2008. The entire company suffered as a result and clients and prospects kept asking us in the last few years if we were going to continue to be in business.

It was a vulnerable time in general, though, not just in this industry. Business history is littered with the regrets of bad decisions made by every major company at some point. It just happened to be one of those “perfect storm” type of moments for Sharp and it re-ally did look from the outside like it was going to collapse in 2012.It looked like it was teetering! But I never lost the faith, because most companies, when they have a problem, it is because they CAN’T sell something. There’s usually a dropoff in demand.

Blackberry.Yes – a good example of what happens when consumers do not want a product anymore. That is an acute situation. Ours was because of the aforementioned poor investment decisions; it was never a problem around demand for our products or how the company was operated. It wasn’t an overseas issue, it wasn’t a tax issue, it wasn’t a technology issue. I see that as a positive for us because in the last two years, not only have we grown our operating income, we did it at the same time we were growing revenue and we also did it during a financial crisis.

SpeakEasyby PATRICIA AMES

Doug Albregts President, Sharp Imaging and Information Company of America

0115_Speakeasy.indd 10 12/23/14 8:05 AM

January 2015 11

That’s a crazy and interesting first couple of years for you. I am sure it was a rough ride, because you had to navigate all those big waves.Absolutely. But along the way I’ve come to respect a lot of things that have been done exceptionally well in this industry. The goal is to leverage that, be careful not to change it, and then infuse some innovative thinking. At Sharp, we’ve changed our culture and a lot of other things internally — we’ve taken on the mantra of becoming the “irresistible partner” for the dealer channel. We have to be easy to do business with. There’s a lot of competition.

It’s cliché to say “we have to be the best partner to do business with,” but the reality is it is the path of least resistance. For the dealer, you have to have great product, good performing equipment, good people, simplified programs and the ability to track the programs, and training on the normal topics as well as concepts like working capital. We did all those things along the way. We’re the only manufacturer that has such a large number of dedicated single-line dealers. We have over 130 committed, Sharp-only dealers at this point. In a community of over 430 dealers, in order to get that, you have to be an irresistible partner.

I continue to tell my team that it is extremely important for us to strive to get to “irresistible” because there’s always something that you can do better.

What do you see as some of the biggest challenges right now?The industry is somewhat under siege. Our dealers have been able to succeed by flipping a copier and a service contract and margins have been very strong. Now we are at this point where that doesn’t always work anymore — it’s not enough. If you do not change your business model you are likely to end up going out of business.

The business model has to change because the number of dealers are dwindling and it’s not just that they are dwindling, it’s HOW they are dwindling. The

strong are getting stronger and the meek are getting meeker. And the meek are getting bought or they are going out of business. There is a lot of consolidation in the industry.

I worry about the health of the business. The IT VARs lost their margins a long time ago, so I see a lot of those companies going into service and I see a lot of startups heading into service because the buzz is around managed network services. You have to diversify.

I do think, however, that the imaging channel will win the day because of the service component — this industry is predicated on service. Service is the Holy Grail for the channel and along with service comes the margins if it is managed correctly and they diversify.

So, maintaining control of that relationship by migrating to a technology services type of company is probably going to secure their place in the new business world?Well, at least focusing on the network, and managing all of the devices and software that are attached to it, not just the copier. Sure, the copier has the highest service level requirement, but why stop there? That was good enough five to 10 years ago, but it is not good enough today. You have to provide more value and create that “stickiness.”

There are some innovative companies in this industry. Marco is one of those that has a very home-grown and spirited managed network service environment that they support. They go in and they manage the entire network for their customers and it renders a copier almost a secondary thought. In a high-margin business like ours that is exactly the way you want to keep it. You don’t want it to come up for bid; you don’t want it to get looked at. You want it to just keep renewing for five, six, 10 years and own that space. You make it very difficult for a customer to get into an account when you own more than just a copier.

Obviously for Marco it is kind of in their DNA at this point, but it wasn’t always that way for them. How can Sharp help your dealers “embed” some of

The industry is somewhat under siege. … If you do not change your business model you are likely to end up going out of business.



this DNA, change their corpo-rate culture to a point where they are able to effect change? There are some barriers — mentalities, technology gaps, there are generational gaps. How can you help with this transition? That’s a great question. I think the problem that has plagued the industry is that there is no standardization. This makes everybody’s job that much more challenging. There is not one dealer that is doing

something the same way. The end game might be the same, but the paths to get there are all different.

What that means for Sharp is that we need to not only have our large dealer meetings, but we also need to follow up with aggressive road shows, and go to where our dealers are. We can help by providing training, reinforcing the message and staying on course, with the whole goal of enabling them to do something different. I can’t force a change in their business. I can’t tell them what to do or how to do it. But I can help them think in a different way and I can keep reinforcing that message, clearing a path for change and enabling a paradigm shift. Case in point, when I came into this industry, one of the first things I said is that we were going to stop doing buy-ins, we were going to simplify our programs and we were going to give dealers

the same price every day — we were not going to load them up with equipment. We decided to focus on working capital instead and many dealers came to me and said “you’re crazy, you can’t do that — you’re going to get fired.” I’m still here.

Good job!Thank you! We decided we could use our money in a substantially different way. We decided to invest in the local market and in helping dealers provide solutions to their

clients. We outsourced all of our logistics to Tech Data recently. We want our dealers to get the product they need in two to three days from the time they order so they do not have to fill their warehouses up to the rafters with product.

We’ve had several dealers that have been in the $20-$30 million dollar range telling us they’ve improved their working capital by $2.5 million dollars due to our initiatives. So, I guess to answer your question, we look at it as “enablement.” How do we enable the dealer instead of dictating to the dealer? Some of our competitors try to dictate. We try to enable.

Sharp is a large company. It has a host of resources that can be utilized for your division in North America and this channel. How does that help you?In Tenri, Japan, the Sharp historical museum is one of the

most amazing places you can go because you can see all the products Sharp has developed, starting with the mechanical pen. Their strength in R&D and technology is incredible. The simple fact is, however, that it has become a prerequisite to have technologically advanced equipment. If you don’t have that, you’re not going to sell product. You’re not even in the game. We always get people asking “what’s the next thing – what’s the new piece of hardware going to be able

to do?” I feel like we’ve kind of come full circle.

This situation reminds me a lit-tle of miniaturization. There is a point with the keyboard for a phone, for instance, where you just can’t make it any smaller and still have it be functional. That’s when you started see-ing the pendulum swinging in the other direction again and a shift towards larger screens on mobile phones. You’ve reached some physical level hard stop. You do reach a point where the R&D focus goes somewhere more pro-ductive, like applications. Correct – there’s just not that much more from a hardware perspective left to be done, so a lot of the R&D starts to get switched to solutions like our MICAS platform, a cloud-based service engine, and remote asset management and how to manage materials usage. One of the big

We’ve had several dealers that have been in the $20-$30 million dollar range telling us they’ve improved their working capital by $2.5

million dollars due to our initiatives.


January 2015 13

buzzwords right now is “big data.” We have a large initiative around big data at Sharp and how to collect all that data around the machine and utilize it in a way that provides value to the customer. I just don’t think that elements like “speeds and feeds” are as relevant as they were five or six years ago.

Where is your biggest invest-ment right now? We are redoing our website. We’ve launched our cloud portal office. We’ve launched MICAS.

We’ve redone our dealer portal so dealers can now get up-to-date information and monitor what they’ve bought and where they are tracking to their programs. MICAS is very exciting – it’s a sophisticated front-end engine. It has the business intelligence built into it that can help a dealer manage everything from metering to predictive/preventative maintenance while automating the data and the activity. This affords our dealers increased response times and effectiveness. We’ve now merged our system with Salesforce.com. MICAS also integrates with various back-end engines, including FORZA, which has an SAP foundation. These innovations allow us to offer our dealers more integrated functionality. A lot of our efforts have been around this whole notion of how we become an irresistible partner. How do we invest in things

that matter, how do we create stickiness? We are trying to create value-add that enables the dealers to drive a positive value proposition to their end-customers, which in most of our cases are in the SMB space. The SMB space is the sweet spot for us.

The growth and innovation in the SMB space is attractive.We are focusing our resources today and tomorrow into how we can preserve that “annuity” this channel has. We obsess

over this. MICAS collects data from many different areas and it is very predictive. Currently, a lot of proposals are made by using relatively old data and averaging it to project the number of black-and-white and color copies a typical business might print on a monthly basis and coming up with a price accordingly. Bids are won or lost using data that may not even apply to the case at hand.

Now our dealers can use MICAS as a predictive tool that will assess the actual usage before the bid ever comes up for renewal. Those are the things that make us the partner that can help our dealers protect their annuity stream. It’s of vital importance to us to be that partner and we know if we can do those types of things we are giving them a reason to be with us and stay with us.

It’s going to be far more valu-able to know what you are

going to do next, not just know what you are doing right now. Finding a way to manage the data to deliver that type of information is absolutely what needs to happen. Transfer of knowledge is more important than margins. We’re trying to do everything we can to collect as much data, to house as much data and make as much as possible of our business more predictive. It’s a huge transformation in our business.

If your team were to describe your leadership style, what do you think they would say? I can tell you, because we talk about it every day. They’d say I’m focused on the big picture. I’m not a micro-manager. My team does a great job of mixing the visionary piece with solid execution. I’m a pretty laid-back guy. I’m from Wisconsin, so it was a tough adjustment to the East Coast. People talk really fast and I get lost sometimes. I think my team would say that we try to treat all of our employees with respect, we try to treat our customers with respect. We try to do everything we can to communicate effectively. I think they would say that I am honest and my door is open and I don’t carry pretensions. I’m just a simple Midwestern guy.

A lot of our efforts have been around this whole notion of how we become an irresistible partner. How do we invest in things that matter, how do we create stickiness?

on the webSharp Imaging and Information Company of Americahttp://siica.sharpusa.com/



AMONG THE MANY articles written about the Executive Connection Summit last October (and there were many, many articles, recaps, blogs and more), there was a great deal of focus on the bigger concepts, connec-tions and companies highlighted at the event. And all of that was well worth the focus — compa-nies like Cisco, SAP, Samsung, Sharp, and OKI are huge, and their presenters were excellent. But also key to the Executive Connection Summit is a group of companies known collectively as Technology United (TU), and it was this group that perhaps best exemplifies what can be achieved when thought leaders, movers, and shakers come together.

A TU RefresherLaunched in July 2011, TU was designed as a way to bring together industry leaders with a best-of-breed mentality to deliver fully integrated enterprise solutions and services to end users and ensure an effective long-term market strategy for its customers and partners alike. Unifying companies with comple-mentary strengths such as docu-ment management, supplies fulfillment, IT and security, TU’s vision includes profound effects on the swiftly evolving industry that inspired its formation.

TU has an impressive partner list, with members that include consumables, MPS, and re-furbished printer provider LMI; power protection firm ESP;

Green Hills Software, an inde-pendent vendor of embedded software solutions; imaging supplies manufacturer Clover Technologies; GreatAmerica

Financial Services, a nationwide provider of commercial equip-ment and technology financing; computing innovation leader Intel; enterprise content manage-ment (ECM) provider Intellinetics; and MWA Intelligence, a leading provider of machine-to-machine (M2M) and machine-to-people (M2P) solutions. Members of the conglomerate presented at the ECS, and while each presenta-tion was interesting and informa-tive on its own, taken as a whole it brought a different dimension to the concept of “executive connections.”

The Power of ConnectionsSteve Galloway of ESP pre-sented “Survive and Advance,” expanding on a familiar theme: the need for expanded revenue

streams. Power seems a natural area of expansion, particularly since power protection goes far beyond what is plugged into a wall. From battery backup to IP-enabled power management, the synergistic opportunities seem boundless when considering what partnerships are possible between a firm that provides electronically powered devices and one that provides the pro-tection for them. Galloway em-phasized the trifecta of “Expand, be significant, partner” through-out his presentation, noting that “Partnering equals survival”

Force Multiplier: Technology United Represents at the ECSby AMY WEISS

THE POWER OF PARTNERSHIPS: MWAi’s Mike Stramaglio hosts a panel of

TU members: (left to right) Dave Kleidermacher, Green Hills Software; Gary Willert,

LMI; Matt Chretien, Intellinetics; and Jennie Fisher, GreatAmerica.

ChProfile_TUECS0115TIC.indd 14 12/23/14 8:26 AM

January 2015 15

channel profile

with examples that included TU members MWAi/FORZA and Intellinetics.

In “The Times They Are A-Changin,’” GreatAmerica Financial Services’ Jennie Fisher pointed to the need for connec-tions as she highlighted some of the firm’s newest offerings. Collaboration was key as she discussed GreatAmerica’s man-aged IT services peer groups, S-L Gamit Groups. Central to the groups is the idea that dealers seeking entry into the managed IT field need help – from experts, from other dealers that have paved the way, and from those who experience the same struggles. The groups, which consist of C-level execu-tives and dealers from non-competing geographic areas, share successes, challenges and best practices, as well as benchmarks.

Green Hills Software’s Dave Kleidermacher was possibly one of the most popular speakers at the event due to the fact that security is top of mind for pretty much everyone these days. In “Are You Ready for the Internet of Things?” Kleidermacher

looked at a different type of connections – the potentially much more dangerous kind. The “Internet of Things” market – connected devices connected to more connected devices – looks to hit $7.1 trillion by the year 2020 according to research firm IDC. How can you prepare? Partnering with a good secu-rity firm can help. Do terms like “evaluation assurance levels” mean anything to you? They do to Kleidermacher, who wrote

the book “Embedded Systems Security.” Bringing Green Hills and its security software ex-pertise to the table to secure printing and protect against IT threats is a valuable sales asset to a partner.

LMI Solutions is another excellent example of the type of partner integral to the TU landscape. A leading supplies remanufacturer with award-win-ning MPS programs available, marketing programs customized to a number of vertical markets, and most recently a reseller of refurbished printers, LMI offers a multitude of solutions. In “LMI Game Show,” Gary Willert and Matt McGuire quizzed audience members about their knowledge of the company’s products and services – many of which may have been a surprise to those not familiar with today’s LMI, a company that has definitely been of benefit to and benefitted from the alliance with TU.

Event host and TU found-ing member MWAi, of course, was represented in a number of presentations. Central to most of

JENNIE FISHER explains GreatAmerica’s latest offerings, including INTEGREAT

web services.

MATT MCGUIRE hosts “LMI Game Show.”



its current talk tracks is FORZA, its SAP Business One-based ERP designed for the imaging channel. MWAi is literally embed-ded in the business of many of its TU partners as well as other well-known companies such as Sharp and Samsung. As it should, MWAi perfectly exempli-fies the power of partnership promoted by TU.

Perhaps the best example of the opportunities and synergies offered by TU, however, was evi-denced in a presentation by Matt Chretien of Intellinetics. Entitled “A Case Study of TU Innovation,” the presentation overviewed exactly that – a collaboration be-tween TU members Intelllinetics and Intel called IntelliCloud. A document workflow manage-ment suite targeted toward SMBs, Intel’s NUC mini-comput-er technology was leveraged by Intellinetics as a gateway, allow-ing the companies to provide a workflow solution for the SMB. IntelliCloud also integrates with FORZA, creating a premium ex-ample of TU integration at work.

The Company You KeepTU was built around the idea

that in order to be successful, companies in the 21st century business landscape would need to be as intelligent and con-nected as the products they sell. With so many individual compa-nies providing services, prod-ucts, and support, it made sense to reform those many elements into what TU founder and MWAi President Mike Stramaglio has referred to as a “hub and spoke” format.

Given the many aspects of the imaging industry covered by TU members – hardware, software, supplies, power, security, and workflow, to name just a handful – the power of TU is undeniable. Not only does the alliance work for the vendors, it allows end us-ers to gain a better picture of the needs they may not yet know they have and the solutions that can fulfill them.

Its tagline, “You’re Known by the Company You Keep,” sums up perfectly the goals of TU – merging solid business relationships with top-of-the-line technology. Stramaglio frequent-ly uses the term “force multiplier” when speaking of TU, and that was certainly in evidence at the ECS. TU was out in force at the event, and the takeaways were multiplied to an infinite degree.

on the webTechnology Unitedtechnologyunited.com

INTELLINETICS AND INTEL have made the case for the power of collaboration

with IntelliCloud.

STEVE GALLOWAY explains how “partnering equals survival” using the power

of ESP’s partnerships with other TU members.


Muratec America, Inc. 3301 East Plano Parkway • Suite 100 • Plano, Texas 75074 • www.muratec.com • 469.429.3377

©2014 Muratec America, Inc. All rights reserved.

Your reps are focused. Their sights are set on replacing the high volume A3 MFP at the end of the hall. While it’s important to focus on high profit A3 opportunities, it’s also critical to capture the additional profit opportunities your reps are missing when they make a mad dash down the hall.

With Muratec’s A4 solutions, you can create innovative document imaging solutions for individual workgroups, enabling you to capture all document traffic within an account and create an additional revenue stream for your dealership.

Muratec has been a leader in providing innovative A4 MFP solutions and best in class dealership support for more than 20 years. Our MFPs provide reliable and cost effective print, copy, scan and fax solutions.

B u s i n e s s - C l a s s D o C u m e n t s o l u t i o n s

MFX-3590

MFX-3530

Start adding profit with A4 solutions today. Please call 469.429.3377 or visit www.muratec.com for details.

Traditional focus

Missed profitopportunity




KEEP A3 focus Profit with A4

Muratec A3_A4 Ad_14_IC.indd 1 9/8/14 9:43 AMFP_AdLayout.indd 1 9/23/14 8:19 PM

http://muratec.com


IN SOME RESPECTS, the office imaging and printing business in 2014 was not so different from any other year recently. Hardware prices declined steadily. Print volumes in most segments waned as paper gives ground to digital display. Inkjet continued its persistent march into the office workgroup. The transition to solutions and services fueled by a steady diet of mobile and cloud-enabled applications leads the industry’s efforts to expand

beyond hardware. Everyone is dealing with the impact of mergers, acquisitions, and various market entrants and exits.

Yet, despite what looks and feels like turmoil in many areas, the office printing market steadily trudges forward. Unit shipments for the most part are flat to declining, and many OEMs reported decreased shipments in various hardware segments on a quarterly basis. Even so, vendors seem to

be benefiting from segment creep: the strategic decision to transition the product mix into higher priced segments to drive page volumes and better margins. As a result, revenues were sustained somewhat in 2014, despite the downward trend for hardware.

Product trendsThere are numerous shifts occurring in the industry that just never seem to abate: the transition from single-function

Office-Printing Market Year in Review: Steady Progress in the Face of Change by ROBERT PALMER

Palmer_0115TIC.indd 18 12/23/14 9:21 AM

January 2015 19

year in review

to MFP, from monochrome to color, from A3 to A4, and from transactional to contractual environments. The migration of pages from A3-size devices to A4 machines began with the convergence of the copier and printer markets and has been strengthened by the transition to MPS.

Organizations are paying much closer attention these days to the costs of printing, which of course is the primary factor leading to increased adoption of managed print services. But that same issue has helped business uncover significant over capacity and under-utilization of A3-sized machines. The A4-size MFP offers a compelling value proposition for MPS installations, with a low acquisition price, fewer service interventions, reduced service costs, and the ability to push devices closer to the user.

As a result, several vendors introduced new A4-size MFPs to the market in 2014. The ongoing migration to A4-size hardware has put increased pressure on traditional copier/MFP vendors and the BTA channel. Most copier vendors are actively engaged in pushing their own A4 strategies. Along with Canon, firms such as Toshiba and Sharp introduced A4-size product families, and most of these new machines are designed with fully integrated support for embedded solutions and cloud connectivity. At its analyst briefing in July, Konica Minolta claimed that it planned to double its A4 business over the course of the coming year.

Meanwhile, the battleground for pages between color and monochrome seems to have reached a bit of an impasse.

Growth in office color hardware sales slowed significantly in 2014 and in fact may have peaked in several segments, which is placing increased emphasis on the importance of monochrome-only hardware. Several vendors introduced new monochrome printers and MFPs in 2014, spanning the full range from entry-level machines to departmental devices.

The monochrome printing market has developed a longer tail than many might have suspected, and for good reason. Businesses understand that color is expensive, often as much as eight times the cost of monochrome, even in contractual environments. Color for the sake of color is no longer a viable notion and organizations are placing increased scrutiny on access to color devices. Today, color is basically viewed as a luxury, and businesses are reigning in color expenses by closely monitoring both the acquisition of color devices and the usage of color in the office. These trends helped fuel increased activity in office inkjet technology, which gained significant ground in 2014 and looms large for the future of office workgroup color.

New productsTechnology achievements in printing hardware are difficult to come by today, which makes it virtually impossible for vendors to differentiate products. Each year, there are fewer and fewer product introductions that seem to raise the bar or break new ground. HP’s Officejet Enterprise Products were perhaps the most notable machines introduced in 2014.

The Officejet Enterprise

series are the latest machines to utilize HP’s page-wide array inkjet printing technology. With print speeds up to 72 ppm for monochrome and color, the Officejet Enterprise products are the most formidable business inkjets introduced by HP to date. These devices are clearly designed for the office workgroup environment, with a robust engine design that features advanced scanning functionality, and the same controller as that used in HP’s workgroup laser products, including embedded support for HP’s solutions platform.

But it is the inkjet imaging platform that separates the Officejet Enterprise platform from its laser-based counterparts. To begin with, it features very low operating costs for both monochrome and color, putting it among the most competitive machines in the workgroup segment. At the same time, the Officejet Enterprise products support tiered color billing and the ability to print “highlight color” or “spot color” pages at a price equivalent to monochrome, or 1.1 cents per page. Designed as a serviceable product that utilizes high-yield, user-replaceable supplies, the Officejet Enterprise color products certainly provide dealers with a low-priced alternative in the workgroup color market.

It is too early to tell how successful HP has been with its Officejet Enterprise platform, but early indicators have been positive. Meanwhile, HP also took steps to expand its ink subscription services in 2014 with the launch of Instant Ink Professional. This service provides small businesses with



the opportunity to purchase ink supplies on a contract basis, with prices based on a certain number of pages per month. It is basically a packaged MPS solution for printers with print volumes ranging from 400 to 2,000 pages per month.

Ink in the office moves forwardNo matter how you view it, ink in the office is a topic that continues to foster heated debate within the imaging and printing market. New ink-based technologies and recent product introductions from vendors such as HP, Brother, Epson, Memjet, and others have only ramped up the discussion. Including the SOHO and SMB segments, inkjet technology already accounts for approximately 40 percent of unit placements in the office-printing segment, and penetration is expected to move to 55 to 60 percent by the end of 2016. Much of that growth will come from the mid-level workgroup segment, which will have important implications for hardware, supplies, and contractual print services.

One trend gaining momentum in 2014 is the consumerization of the workgroup MFP. Vendors are placing greater emphasis on the design and functionality of the user interface of the MFP, with features such as color touch screens, built-in support for custom applications, and cloud integration. To put it bluntly, printers and MFPs are being designed to look and behave more like smart mobile device platforms.

Ricoh recently pushed this concept further with the introduction of its MP 2554/MP 3054/MP 3554 series of

products. With these machines, users can utilize their own tablet or other smart device as a personal interface for the MFP itself. Samsung also made some interesting moves in this area with the launch of its MX4 series products, which utilize the Samsung Smart UI, a built-in tablet that runs on the Android operating system.

While technology innovation is harder to come by, there was no shortage of new products introduced in 2014. Vendors rolled out a plethora of machines in all market segments, including new mono and color A3- and A4-sized MFPs, workgroup printers, and a rash of entry-level monochrome single-function printers. But as explained earlier, most of these products seemed more evolutionary than revolutionary in nature.

Changing landscapeOne can always count on a host of mergers, acquisitions, and organizational changes to occur each year in the printing industry, and 2014 was no exception. Perhaps the most notable of these was HP’s big breakup. In late September, HP announced plans to split its enterprise services business from its PC and printer operations. The move fostered immediate reaction from all corners of the technology sector.

Inside the printing industry, the question asked most often was: what does this mean for the future of HP’s printing business? Of course, it is still too early to answer that question, although on the surface the positives seem to outweigh the negatives. Historically, HP’s imaging and printing business has not always

received the treatment it likely deserved, especially given the fact that it has basically funded HP’s endeavors in PCs and services. But the printing market is mature and printers are not sexy, at least according to several past HP CEOs who always seemed anxious to funnel more R&D dollars to other areas of the business.

It will take time before we can really evaluate the true impact of the HP split, and it will be interesting to see if HP is able to transform its printing business now that it has greater access to R&D spend and other resources.

Another important reorganization occurred more recently, when Samsung announced plans to combine Samsung Electronics America (SEA) and Samsung Telecommunications America (STA) into a single entity. The move basically combines Samsung’s cell phone business together with its consumer and enterprise electronics businesses. There is little on the surface that would seem to impact Samsung’s strategy for its printing organization, except that the move signaled the departure of Tod Pike, who had served as senior VP of Samsung’s Enterprise Business Division for the past few years.

Coming over from Canon Business Solutions, Pike was a veteran of the copier/printer industry who brought immediate legitimacy to Samsung’s enterprise printing strategy. Pike had become the face of Samsung’s enterprise business, making appearances at virtually all the major industry conference and channel events, and he was obviously instrumental in

on the webPalmer_0115TIC.indd 20 12/23/14 9:21 AM

January 2015 21

year in review

building out Samsung’s strategy and presence within the BTA channel.

Samsung insists its commitment to the imaging channel is unwavering, and it expects to continue to build out programs based on a converged IT strategy designed to help dealers expand and grow their businesses. In reality, Samsung’s success will be measured by its ability to execute on that strategy.

Solutions and servicesThe imaging and printing market is under attack from a variety of outside threats, and vendors are reacting to changing market conditions in very similar ways. As print volumes continue to decline, OEMs and their channel partners are investing in strategies to expand beyond print.

In some cases, it is a movement toward additional services — whether that is managed IT services, MPS, document services, or some combination. Strategically this makes perfect sense, because vendors and the imaging channel have a strong service infrastructure and a service-oriented sales model already in place. For the last few years, MPS has been viewed as the growth engine for the market, but the reality is that print is only a component of the entire infrastructure, and the overlap between IT and MPS is a strong area of opportunity both for

businesses and technology providers.

There has also been a strong movement toward value-add solutions and services, such as document management, content management, capture and conversion, and workflow solutions. These areas represent prime opportunities for vendors and channel partners alike, who are actively looking for ways to take advantage of existing

document expertise to drive new revenue streams.

The push to enable embedded solutions has never been more focused, and vendors are now developing complete solutions ecosystems around the MFP. The intent is to help facilitate the delivery of value-add solutions optimized for vertical markets to address real business needs. Architectures such as HP JetAdvantage and Xerox ConnectKey are prime examples of this umbrella approach. Three key elements are always present in every solutions strategy today: mobility, cloud enablement and delivery, and data analytics. Regardless of the approach, vendors remain adamant that solutions continue to be a key enabler for driving the core business of printing.

Namaqua chameleon?There is an old saying that perhaps sums up 2014 best: the more things change, the more they stay the same. Indeed,

the office printing business is very much like the Namaqua chameleon – one of 100-plus different species of chameleons throughout the world, most of which have the ability to change skin color to some degree. When you think of a chameleon, the natural reaction is to envision those captivating creatures that quickly change back and forth between brilliant shades and fascinating patterns.

But not all chameleons possess those capabilities. The Namaqua chameleon, which is found in arid regions such as the deserts of Southern Africa, switches colors between dark black and light gray, a survival technique it has developed to absorb or reflect heat. Always at this time of year, one hears a host of predictions for the future of the office printing market, with expectations for radical changes to market share, products, and go-to-market strategies. But each year it is the same old Namaqua chameleon – slight changes that essentially shield the market from outside threats and protect the core. The industry is evolving, for sure, but shoring up the core business of print is what always seems to underline those changes. This is not necessarily a bad thing, because it speaks to the overall viability and longevity of the market. But how long before more brilliant and far-reaching transformation is required for survival?

The industry is evolving, for sure, but shoring up the core business of print is what always seems to underline those changes.


A History of Outstanding Achievement

see it in action siica.sharpusa.com

2000 2004 2008 2012 2014

Dual Head Automatic Document Feeder

Groundbreaking QWERTY Keyboard Tablet-Style menu navigation

Industry-leading Web Services Development Platform

Integrated Fiery® Command Workstation®

Cloud Portal Office content management

First Common Criteria validated data security kits

Triple Air Feed paper handling

In-line Full-Bleed Booklets

Compact Frontier Scan-Centric series

“Sharp has won more than 70 awards for MFPs and Printers since 2000.” ~ George Mikolay, BLI Senior Product Editor

©2014 Sharp Electronics Corporation. All rights reserved.

Sharp.indd 10 12/17/14 4:14 PM

http://siica.sharpusa.com

A History of Outstanding Achievement

see it in action siica.sharpusa.com

2000 2004 2008 2012 2014

Dual Head Automatic Document Feeder

Groundbreaking QWERTY Keyboard Tablet-Style menu navigation

Industry-leading Web Services Development Platform

Integrated Fiery® Command Workstation®

Cloud Portal Office content management

First Common Criteria validated data security kits

Triple Air Feed paper handling

In-line Full-Bleed Booklets

Compact Frontier Scan-Centric series

“Sharp has won more than 70 awards for MFPs and Printers since 2000.” ~ George Mikolay, BLI Senior Product Editor

©2014 Sharp Electronics Corporation. All rights reserved.

Sharp.indd 11 12/17/14 4:14 PM

http://siica.sharpusa.com


WHILE SOME higher-tier market segments have snapped back to life since the recession, the low end of the market has never fully recovered, and it’s doubtful it ever will. The reasons why are well documented and they’re hardly new: Wireless technology has driven down hardware shipments by putting an end to the requirement that each home computer be tethered to its own printing device. Other new technologies like smartphones and tablets

have helped eliminate — or at least greatly reduce — the need to print many documents, which has lowered cartridge consumption.

Despite the ongoing and significant declines in the SOHO market, hardware manufacturers remain dedicated to the space. They demonstrated their dedication throughout 2014 with new product introductions. Regardless if the device was based on inkjet or electrophotographic technology,

a flock of new lower-end machines hit the market last year from a variety of vendors. SOHO is dead! Long live SOHO!

Inkjet’s back! Well, sortaMost vendors reported in 2014 that inkjet unit shipments continued to decline. Some are beginning to wonder if the U.S. market for SOHO inkjet units will ever plateau. Nevertheless, a lot of new lower-tier inkjet machines were unveiled in

Despite Declines, OEMs Hunt for Opportunities In Lower-Market Tiers During 2014 by CHARLES BREWER, ACTIONABLE INTELLIGENCE

Brewer_0115TIC.indd 24 12/23/14 9:39 AM

January 2015 25

low-end opportunities

2014, although you might have missed them because business-class inkjets got all the attention. Actionable Intelligence is about to release its first report on U.S. inkjet markets, and while we analyze all the latest business class inkjets, the report is chock-full of inkjet devices that sell for under $200. Make no mistake, friends: Brother, Canon, Epson, and Hewlett-Packard are dedicated to the consumer inkjet market. They continued to roll out inkjet hardware for under $150 and some devices are well below that price.

Canon started 2014 by releasing a slew of new inkjet hardware at the Consumer Electronics Show (CES) in January in Las Vegas. The new machines included a couple of upgraded Super-B (13 x 19 inch) printers, the PIXMA iX6820 and iP8720, along with the SELPHY CP910 dye-sublimation compact photo printer. In addition to the higher-end devices, the firm replaced the PIXMA MX452 and MX522 all-in-ones with the new PIXMA MX472 and MX532 wireless office all-in-ones, which were priced at $99.99 and $149.99, respectively. The new SOHO machines feature PIXMA Printing Solutions (PPS), an application that allows users to print photos and documents via cloud technology using an iOS or Android device.

Canon also upgraded its PIXMA MG lineup of photo-oriented inkjet all-in-ones in August with three new units. The PIXMA MG5620, the PIXMA MG6620, and the PIXMA MG7520 replaced the PIXMA MG5520, MG6420, and MG7120. The improvements to the latest PIXMA MG units

were basically mobile/cloud printing enhancements and the printing technology did not really change. Perhaps the biggest improvement in the new machines was their lower price tags. While the new PIXMA MG7520 features the same $199 price point as the previous MG7120, the new MG5620 and MG6620 have price tags of just $99 and $149, compared to their predecessors, the MG5520 and MG6420, priced at $149 and $179, respectively. Who says that price compression is dead? It’s just like the old days.

In June, Epson introduced a total of 11 new machines in the WorkForce WF-3600 series, the WorkForce WF-7000 series, the WorkForce Pro WF-4600 series, and the WorkForce Pro WF-5000 series. The machines were the first desktop inkjets to employ Epson’s PrecisionCore print heads, which debuted in 2013 in a couple of the OEM’s digital label presses. The heads are fabricated using MEMS (microelectromechanical systems) chip-production technology and have a nozzle density of 600 nozzles per inch. PrecisionCore heads can fire 50,000 times per second and those deployed in the new desktop inkjet devices jet three droplet sizes down to a size of 2.8 picoliters. Most of Epson’s new machines came with introductory price tags of between $200 and $400, proving the firm is looking to better penetrate the upper echelons of the space. It has not abandoned the sub-$200 segment, however. The new WorkForce WF-3600 series includes the WF-3620 and WorkForce WF-3640, which were introduced at $169.99 and $199.99, respectively.

Brother was quiet about its inkjet machines for the first half of 2014. In July, however, it announced additions to the Business Smart line of inkjet all-in-ones: the Business Smart MFC-J4320DW, MFC-J4420DW, and MFC-J4620DW. Then, in August, Brother released its new Business Smart Plus line of inkjet all-in-ones, including the Business Smart Plus MFC-J5520DW, MFC-J5620DW, and MFC-J5720DW. The new machines are based on Brother’s Landscape Print Technology, which uses a permanent print head that images across the page from top to bottom, rather than from side to side. With prices ranging from $199.99 to $249.99, the three units in the Business Smart Plus line are a little more expensive than the machines in the Business Smart family, which cost between $149.99 and $179.99. Machines in the Business Smart Plus line have enhanced features such as a beefier duty cycle and more media handling options, and the line can accommodate higher-yield ink tanks.

Going upmarketIn an attempt to market higher-end inkjets with better margins, OEMs continue to release more business-class devices. Right now, HP is the king of the business inkjet hill thanks to its Officejet Pro X family of high-speed inkjet printers and MFPs. In 2014, the firm took the technology into the enterprise space with the release of the Officejet Enterprise Color X555 series and Officejet Enterprise Color MFP X585 series. These families of A4 inkjet printers and MFPs are designed for larger businesses and employ



HP’s PageWide technology. Although not identical, the print engines in the enterprise units are similar to those found under the hood of the desktop Officejet Pro X machines. Sporting price tags that range from $749 for the base print-only device to $2,799 for the fully-loaded MFP, the Officejet Enterprise Color is anything but “entry level.”

Canon and Epson also released some higher-end inkjets last year. Canon positions its new MAXIFY printers and MFPs as SOHO inkjet machines with a focus on office users. The machines came out in September and include the MAXIFY iB4020 single-function printer and four multifunction machines: the MAXIFY MB2020, MB2320, MB5020, and MB5320. According to a Canon spokesperson, “The MAXIFY brand name is meant to signify what these printers can help small and home business users accomplish in their day-to-day work environment — maximized productivity, efficiency, and reliability in the workspace.” While Canon’s previous inkjets typically used a pigmented black ink and dye-based inks for the other three to five colors, the new MAXIFY machines use a new four-color (CMYK) pigmented ink set. The MAXIFY MB2020 and MB2320 occupy the low end of the line and are priced at $179.99 and $199.99, respectively. The $299.99 MB5020 and $399.99 MB5320 sit at the top of the line, while the IB4020 printer carries a $149.99 price tag. Interestingly, Canon has released new ink tanks for the lower end of the line that gives them a higher per-page cost than the

higher end units.I noted before that Epson

released a bevy of new SOHO inkjet machines during the summer. In December 2014, the firm announced it would release in January 2015 two new A3 inkjets exclusively for its dealer channel. The WF-8090 is a single-function printer, while the WF-8590 is an MFP with print, copy, scan, and fax capability. WF-8000 units will be marketed through the dealers in Epson’s ImageWay Partner Program and through Epson’s authorized commercial channel resellers. The machines ship managed-print ready and offer a feature set office users will appreciate including a 75,000-page per month maximum duty cycle, and certain security features like a PIN-number certification job release and user-access controls. Epson will deploy a new series of ink tanks that contain Epson’s latest ink line, which is marketed under the new DURABrite Pro brand. The new Epson 748 cartridge series includes three sets of CMYK tanks: standard, XL, and XXL. Epson doesn’t

quote pricing for the hardware and consumables because the channel will set it.

Lot Of low-end lasers (and LEDs)One of the more interesting market trends since the recession has been the churn of companies rushing out of and into the low end of the electrophotographic market. Lexmark and Konica Minolta, for example, have gotten out of the lower end of the market, while Canon and Ricoh have demonstrated a keen interest in the space. Brother has opted to maintain and expand its position at the low end of the market and has taken a significant amount of share. HP and Samsung also remain in the low end of the laser market but the number of entry-level offerings from each firm has dropped.

I’ve been following Ricoh over the past couple years and have watched as it continued to expand its range of low-end products. There was a time when the firm had a very limited number of A4 machines

on the web

EPSON’S WORKFORCE WF-3620 is a sub-$200 all-in-one inkjet using

PrecisionCore technology.


January 2015 27

low-end opportunities

and nothing for the SOHO market. That has all changed. The firm currently offers three monochrome single-function printers that are all priced within a few dollars of each other. Ricoh has been investing in more effectively sub-segmenting the low end of the market to attract the growing number of remote workers that operate out of small offices and their home offices. The 16-ppm SP 112 was released in May of 2014 with a list price of $119, followed by the SP213w, launched in October with a $145 MSRP and a print speed of 23 ppm. These two lower-end machines join Ricoh’s higher-end 30-ppm 311Nw, which hit the market in September 2013 for $167.

As the supplier of the technology in HP’s LaserJet line, Canon has been in the A4 space for decades. Like Ricoh, Canon finely sub-segmented the low end of the monochrome market in 2014. It started the

year with the release of a pair of low-end units with price points separated by only $10. The imageCLASS LBP6030w was released for only $159 and the imageCLASS LBP6200w hit the market at $169. The lower-priced unit had a 19-ppm print speed while its more expensive cousin’s top speed was 26 ppm. In September, Canon was back with another $169, 26-ppm, A4 monochrome printer, the imageCLASS LBP6230, which is the first imageCLASS printer with both wireless connectivity and automatic duplexing. I suspect that the price of the 6200w will come down. Regardless, Canon is looking for business at the lowest tiers of the mono market with three new printers that sell for under $170.

Along with the imageCLASS LBP6230, Canon also released various entry-level monochrome MFPs. Although the MFPs are not as close in price as the printers, the pricing bands are fairly compressed. The

imageCLASS MF212w and the MF216n are 24-ppm units, which are priced at $169 and $199, respectively. The $248 MF227dw and $299 MF229dw are 28-ppm machines. So, during 2014, Canon fleshed out the lower end of its monochrome portfolio with four models priced under $300.

Despite claims from HP president and CEO Meg Whitman that the firm is focused on releasing more “high value” LaserJet MFPs, the firm unveiled a range of new low-end machines in September. All the machines are based on the same 26-ppm monochrome print engine. The new LaserJet Pro M201 line includes the M201n base unit, which comes with a USB 2.0 interface and Ethernet connectivity. The M201dw is identical to the n model, but adds standard automatic duplexing and a wireless interface. The new M225 and M226 MFP lines appear to be identical but use different supplies, and presumably, they will be marketed in separate regions worldwide. The M225dn and M226dn ship with standard Ethernet connectivity, while the M225dw and M226dw add a WiFi interface. All four MFP units are Mopria-certified.

In August, Brother refreshed the low end of its monochrome printer and MFP offerings. The new lineup features the HL-L2300 series of printers, including the HL-L2320D, HL-L2340DW, HL-L2360DW, and HL-L2380DW. Brother’s new MFC-L2700 family of MFPs includes the MFC-L2700DW, MFC-L2720DW, and MFC-L2740DW. The HL-L2320D was released at $119, while the HL-L2360DW and the HL-L2380DW

CANON’S IMAGECLASS LBP6030W is a 19-ppm monochrome printer priced at

$159 upon its release in early 2014.



cost $149 and $199, respectively. In addition, Brother quietly added the $139 HL-L2340DW printer at some point in the later part of 2014, which makes Brother currently the OEM with the largest selection of low-end monochrome machines in the United States in my estimation.

Conspicuous absencesI was struck by a couple of companies that opted out of releasing new low-end mono machines last year. Perhaps the most conspicuous absence

was Samsung. Ten years ago, the firm aggressively attacked the low end of the market and took share from a number of vendors. Prior to the recession, Samsung boasted that it was the No. 1 MFP provider in the low tiers, a position it looks like Brother is now actively pursuing. Another firm that was well known for grabbing share at the low end of the market was Lexmark, which also didn’t release any low-end hardware in 2014. Both Lexmark and Samsung are now focused upmarket and each firm released new higher-end hardware last year including A3 and A4 devices. I should note, however, that while neither Lexmark nor Samsung released a low-end unit in the past year or so, they continue to market low-end machines that are growing long in the tooth.

I was also surprised to witness a dearth of low-end

color devices in 2014. Gone, it seems, are the days of the sub-$250 color laser printer. In the U.S., Canon released the lowest-priced color laser printer that I am aware of last year — the $279 Color imageCLASS LPB7110Cw. While this machine may have the lowest price in its class, it was also the most expensive to operate. A black-and-white page costs 3.6 cents to print using the LPB7110Cw and it costs a whopping 20.6 cents to print a color page. The Brother HL-8250CDN hit the market

last May for $349.99 and it prints black-and-white and color jobs for 2.7 cents and 13.4 cents, respectively. Ricoh released the SP C250DN last April. With an MSRP of $360 and estimated black and color per-page costs of 2.8 cents and 16.5 cents, Ricoh’s lowest priced color device in 2014 cost a little more than the comparable Brother machine in terms of both acquisition and operation.

There are several reasons why OEMs may not have rolled out new low-end color machines last year. It could well be that the technology is just fine as it is and releasing new products would not necessarily fuel much growth in sales. Or it could be that hardware manufacturers just can’t make money with inexpensive color hardware so they are backing off the space. It is so expensive to operate low-end color lasers with OEM cartridges, it could be that the

low price of third-party supplies is enough to woo end users away. Let’s face it, image quality is not a huge factor for consumers who purchase low-end machines. They’re buying on cost and will most likely be swayed to try third-party supplies once they get over the sticker shock associated with an OEM’s low-end color cartridge set.

One other factor to consider: office inkjet machines. Could it be that folks looking to accouter their small offices are favoring business-class units over color

lasers? As I noted earlier, business class machines have certainly come of age and most have the feature sets office users demand. Perhaps the “value prop” of inkjet has reached a level that can overcome the laser basis we’ve heard so much about in the past — at least at the low end of the color market. Only time will tell.

Of course, we’ll be watching all of the various market segments at Actionable Intelligence this year. Will vendors continue to shun the low-end of the color market? Are business inkjets finally gaining share? Will vendors further sub-segment the lower tiers of the mono market? We’ll let you know!

on the webActionable Intelligencehttp://www.action-intell.com

I was surprised to witness a dearth of low-end color devices in 2014. Gone, it seems, are the days of the sub-$250 color laser printer.


HELPING YOU GET THERE.www.greatamerica.com | 800.234.8787

®

WHERE DO YOU WANT TO TAKE YOUR BUSINESS?

Your team at GreatAmerica is committed to helping you get there. From Managed Print Services and HR support to Managed IT Services, we’ve developed a suite of offerings that go well beyond traditional fi nancing solutions.

Our goal is to help you achieve greater success.

“We place high value on the team structure at GreatAmerica. When we call GreatAmerica, any one of their team members can help us—they know us and serve as an extension of Da-Com.”

Scott ShanafeltSVP, GM

Da-Com CorporationSt. Louis, MO

FP_AdLayout.indd 1 4/25/14 11:05 AM

http://greatamerica.com


A COMPANY’S IT environment is an often-overlooked gold mine for increasing productivity and en-hancing workflow. An effective IT environment offers the foundational organization every business needs, from document management to data information sorting and stor-age. And underutilizing it isn’t just ineffective – it’s costly. An enter-prise employing 1,000 knowledge workers wastes $48,000 per week, or nearly $2.5 million per year, due to an inability to locate and retrieve information.

Today, companies seek tech-nology that does more than “just work.” They are looking for hard-ware and software solutions that will help streamline the document management process and reduce

unnecessary spending. Having evolved from solo printers in a room to a complex infrastructure of business information, mobile tech-nology and cloud solutions that connect an entire workforce, the IT environment has become the foun-dation for a well-oiled business.

As companies look for new ways to connect with customers and build revenue, there are several IT trends that will shape the business landscape in 2015:

1. MobilityThe rise of mobility across the con-sumer and corporate landscape provides a tremendous opportunity for organizations of all sizes to change the way they do business. This growing trend, when coupled

with the proliferation of cloud tech-nologies, allow today’s employees to teeter harmoniously between ef-ficiency and work/life balance. The result is a more nimble workforce where employees can access, update and share information in real-time via smartphones and tablets.

According to IDC (Worldwide Mobile Worker Population 2011-2015 Forecast (Doc #232073), December 2011), 37 percent of the worldwide workforce will be mobile by 2015. This is an opportunity to embrace mobility and re-engage with your evolving workforce by ensuring that the devices sending data in and out of your company’s network are secure. Consider implementing a mobility secu-rity strategy that is inclusive of all company-issued and personal devices that access the company’s network.

Additionally, mobile devices can be used as a simpler alternative to usernames and passwords. End users can utilize near-field com-munications (NFC) touch-to-au-thenticate capabilities to bypass a multi-step printer login process. By simply touching an NFC-enabled smartphone or tablet directly to the printer, the user’s credentials are verified and the print job is released. This increases your organization’s security and reduces costs from unclaimed print jobs.

2. SecurityToday’s hackers are getting smarter, and now they’re using unexpected channels to access

Optimize Your IT Environment to Prepare For New Opportunities and Threatsby MICHAEL HOWARD, HP

HP_0115TIC.indd 30 12/23/14 9:49 AM

January 2015 31

optimize IT

confidential data. This new ap-proach to data theft has negative – and expensive – consequences for business. In fact, data breaches cost companies an average of $136 per record compromised and $5.4 million overall in the U.S. when you factor in regulatory fines, reputation damage and the cost of closing the security gap.

In response to the recent rise in corporate information theft, CIOs and IT managers have now been tasked with two primary objectives: identify potential security threats and find smarter ways to secure

data. Printers and MFPs can pro-vide an unexpected access point to confidential data. By leaving your print environment unsecured you are increasing the likelihood that your business may fall prey to a data breach. Did you know that the most common printing security breach is leaving the actual printed document in the output tray? By implementing secured mobile printing strategies and pull print software solutions, you can help prevent electronic and paper data from getting into the wrong hands.

3. Green Tech Corporate social responsibility has become more than just a buzz-word. Studies show that becoming eco-friendly is not only good for the environment, it’s also good for a company’s bottom line. According to PricewaterhouseCoopers, 48 percent of global CEOs plan to in-crease their focus on reducing en-vironmental impacts. From cutting costs by reducing energy waste to investing in local sustainability

programs, it’s become easier for businesses to see the ROI in envi-ronmental sustainability efforts.

Tech companies are now designing products that meet the demands of businesses for more energy efficient technologies that will help employees work faster and smarter without increasing the company’s footprint. For example, the HP Officejet Enterprise X Series cuts business printing costs in half and reduces energy usage overall, at up to twice the speed of laser printers. Now consider how much paper, toner and ink is used on a

given day. Just think how much money your company would save by utilizing duplex printing on recycled paper with original toner packaged in a recycled cartridge. Talk about stretching your dollar. Companies like HP encourage customers to recycle their printing supplies, keeping cartridges out of landfills and helping reduce waste across the globe.

4. Clouds, Clouds EverywhereA recent study by IDG found that 69 percent of enterprises have either applications or infrastructure running in the cloud today, up 12 percent from 2012. Fast forward to 2013 and that number increased to 43 percent. This increase could be due to a number of factors, including the proliferation of data on consumer and commercial technologies, the shift from paper to electronic medical records for healthcare providers and the rise of the Internet of Things.

As businesses continue to seek solutions that are agile, responsive

and mobile, older software solu-tions that are rigid and difficult to upgrade will become obsolete. The use of cloud technology will see continued growth across organizations of all sizes as it gives enterprises the nimbleness of small business, and empowers small businesses with enterprise-level capabilities. And, with the explo-sion of BYOD, cloud technology will be essential for maintaining security across devices.

You may have noticed that some of the printers in your office are multifunction printers (MFPs) that

allow you to print, copy and scan paper documents. One feature that you may have overlooked on your MFP is the scan-to-cloud feature, which allows you to scan hard copy documents and send them directly to your cloud service software. Newer enterprise-class MFPs are making the cloud even more accessible with secure pull print capabilities. Now users can select documents from the cloud and send them to the printer from the device’s control panel.

All of these trends point to one thing – a sweeping acceptance and embracing of technology. Technology is becoming less of an integrated add-on and more a way of life and fundamental busi-ness practice. Make the most of it; benefit from the “IT advantage” for a prosperous year!

Did you know that the most common printing security breach is leaving the actual printed document in the output tray?

on the webHewlett-Packardwww.hp.com

HP_0115TIC.indd 31 12/23/14 9:49 AM


I’VE TRAINED A lot of sales reps over the years in the art and science of conducting assess-ments. One of the biggest com-plaints I’ve heard from my students is how hard it is to get any real cost information when you’re doing an assessment. Everything up to asking for pricing tends to go pretty smoothly, and then bam! The cost wall comes out of nowhere. It can sometimes feel like you are asking for their first born child or doing something illegal. The worst part is that real cost information has such a huge impact on whether or not a

customer will buy into the results of your completed assessment.

Why are customers so bullish about holding on to cost informa-tion? To some extent it’s our own fault. In a traditional copier or hardware sales cycle customers have learned to keep cost informa-tion close to their chests. They do this because they have learned that a common tactic in a traditional copier sales cycle is to get com-petitive cost information in order to understand how much margin the sales rep can get away with charging. This is because many

traditional copier sales profession-als are paid on gross margin, not on revenue, which has traditionally been a great model for the copier dealership — it inspires the sales rep to sell something for as much as they can get away with. There is nothing wrong with that, it’s capital-ism at its best. Unfortunately many customers have become wise to this selling routine and have devel-oped counter-measures to contend with it. Nowadays when we ask them for pricing information on their existing fleet we are often met with “I’m not going to share that with you, just give me your best price up front.” Bummer.

The sad part is that most people providing MPS assessments are trying to get the cost information almost entirely for the benefit of the customer. An MPS assess-ment fundamental is to get rid of as many “assumptions” and “industry averages” as possible. In an assessment-based selling cycle the old paradigm of keeping all costs hidden simply doesn’t work. Because of this, we need to do a better job of explaining to the cus-tomer why we need accurate cost information for the assessment. I recommend that when you hit the wall of cost sharing that you cut to the chase:

“I get it. You don’t want to share pricing with me because you think I’m going to use that information against you. But please understand that I’m not trying to sell you a box or any toner. I need it for doing a proper assessment. The MPS as-sessment is different than what you

Getting Cost Information for Your Assessment When the Customer Says ‘No’by WEST MCDONALD, PRINTAUDIT

McDonald_0115TIC.indd 32 12/23/14 10:21 AM

January 2015 33

assessments

are used to. It’s about transparency and true cost accounting. It’s about finding areas of improvement and providing solutions that will save you far more money than the tra-ditional procurement process ever could. Without true cost informa-tion it will be impossible to assess what your existing costs truly are. It’s the biggest unaccounted cost you have today and my job is to change that so you can understand and control it.”

You can also let them know you are paid differently than they think:

“I don’t get paid on gross margin and our company has a policy of fair pricing. I get paid on success rates with assessments so it’s in my best interest to be fair. We will find you the savings you’re looking for but first we need to help you understand your costs. We need to be partners in this exercise and real numbers are critical to the effective-ness of the assessment.”

This works. I have been doing assessments for more than five years now and I have turned more customers around on cost informa-tion than I can count. I’ve done this

by holding my ground and giving them a clear understanding of why I am asking for costs. If you don’t do a good job of describing why cost information is important they aren’t going to give it to you. Anybody involved in the early MPS days can remember a similar wall when it came to getting the ICE or DCA installed. But we have come a long way in understanding the needs of IT and doing a better job explaining the value of remote monitoring and management. Getting cost infor-mation isn’t hard, we simply need to do a better job of explaining its importance to the customer.

Let’s say you’ve convinced the customer to get you cost infor-mation. Leasing information and cost-per-page details for their A3 fleet is easy. But getting costs for toner purchases is tricky at times, even if they’ve agreed to share them with you, and especially if the customer doesn’t do a good job of managing toner purchases. Most companies are terrible at this and you will struggle if you ask for all toner purchases for the past year. Sometimes you’ll get it, so you

should ask. In the cases where you can only get some of the toner cost information you can work from a sample set of invoices and apply the plus or minus discount against Staples or Office Depot pricing. As long as the customer agrees to this method you’re off to the races. If they don’t agree, ask them what they think a good compromise would be.

Even with these tactics you aren’t always going to get what you ask for. True story. That’s just the reality of any sales cycle. But hold your ground: If you don’t get pricing, you don’t do the assessment. Let them know you’ve been down that road and it is a waste of everybody’s time. You end up with numbers that nobody believes and there is no way to validate. An assessment without real cost values is like filling the gas tank in your car with water: You can do it but it doesn’t do you or the car one lick of good.

Business process management. Revolutionized.

The secret is out — Advertising with Work�owOTG.com really works! Contact our advertising department to get started: 702-720-4889 or email [email protected]

Get your information faster at Work�owOTG.com

on the webContact West [email protected]

McDonald_0115TIC.indd 33 12/22/14 6:05 PM

http://workflowotg.com

mailto:sales%40bpomedia.com?subject=Advertising%20on%20WorkflowOTC.com


WHEN I SAT down to both re-search and outline my thoughts in preparation for writing this article, I looked back at all the recent blogs, news articles, and industry magazine columns I had saved, bookmarked, or read in the last six months. I figured this exercise

would give me a pulse and repre-sentation of “new technologies” in our industry … and it did. However, while combing over headlines and digging into details I kept coming back to one simple question: What is “our industry”?

My background originates in sales in the remanufactured imaging supplies market. That’s a sophisti-cated way of saying I used to sell used toner. Yet, here I am reading headlines and articles in industry trades whose titles are all related to

image, office, and print, but whose content and headlines are dominat-ed by terms and acronyms such as cloud, workflow, Enterprise Content Management (ECM), 3D, Business Process Outsourcing (BPO), SaaS, Bring Your Own Device (BYOD), and, of course, MPS. This snapshot

of terms reveals emerging tech-nologies across the landscape of current MPS providers – especially those in the dealer channel, and that perhaps looking at where the industry has come from may be the best indicator of where it’s going; i.e., history repeats itself. There is a consistent theme in the history of a number of dealers in MPS: many of them are family run businesses that have been around for decades. Not just 10 or 20 years, but 50, 60, or 70-plus years. You read

about second- and third-generation ownership. You read about the company’s roots selling typewrit-ers and calculators. At one point in time, these “new technologies” represented the next big new thing. In today’s business world, they are now extinct.

So what are we to make of it? How do we look back to look forward and predict the future? How do we make smart decisions now to position our businesses for future growth, profit, and success? A typewriter dealer 40 years ago could have taken its business in many different directions upon the emergence of the word processor and then the PC, and the extinction of the typewriter. He could become a computer and peripherals VAR.He could become a copier dealer, as many reading this have. Or — you name it. He could do almost any-thing; specialize to beat the speed of the market and just sell RAM, for example.

Analysis of the first two ex-amples shows both were obviously legitimate business opportunities, yet they were uniquely different. The speed and evolution of the PC and server market was faster, representing transactional sales on three- to four-year refresh cycles. It was highly competitive without any real, residual accompany-ing revenue stream to support it. While the copier and imaging market evolved quickly as well, it was, and primarily still is, a low priority in today’s IT world. In IT budgets, printers and copiers often take a back seat to spending on

New Technologies Take Cues From the Pastby JORDAN DARRAGH, PRINTRELEAF

PrintReleaf_0115TIC.indd 34 12/23/14 10:41 AM

January 2015 35

new technologies

and advancing an organization’s hardware and software technolo-gies. As someone who has made their living in the imaging space, it’s been a profitable road buoyed by not only a similar three to four year refresh cycle on the hardware but, moreover, an accompanying rev-enue stream that provides healthy profits and cash flow. To me, this relatively slow evolution of “new technologies” in the conventional MPS industry is a good thing.

I attended a sales seminar, “Power Selling,” hosted and presented by Stephen Power in

1999. At that time, the headline was “Convergence.” This was the overall theme and I was there to learn about the convergence of the industry; i.e., how the advent of the multifunction device (MFD) was about to eliminate the copier, the fax, the scanner, and the printer. At the time I was rooted in the printer silo, selling primarily toner cartridges on a transactional basis to end user customers. I was told (and was sold), “You should be very afraid, because your business is about to be extinct in less than two years (by 2001), unless you attend this seminar and become an expert sell-ing MFDs.” I took the bait, listened to my fear, paid a lot to attend, and then, of course, went back to selling toner cartridges. Power was right, as much as he was wrong. By 2001 there was a lot of conver-gence taking place. OEMs were selling consolidation, lower cost per page, and it worked. But not entire-ly. Meanwhile, the advent of MPS

was just beginning as, really, the re-ciprocal to the conventional copier model; i.e., marketing cost per page on printers. I remember, about this same time, learning about Print, Inc., PrintFleet, FMAudit, and the like. There was disruption across industry models. However, under-neath it all, customers continued to print and copier dealers fought for printer market share. Toner remanu-facturers became MPS providers and fought to protect market share while, at the same time, adopt-ing copier lines to fend off their competition. Yet here we are, 14

years later, and not much has really changed except for the business model. Many customers worldwide still purchase toner on a transac-tional business. The laser printer is still alive and well, with some manufacturers citing growth in A4 over A3. The MFD still has its place as the default device but, ironically, it wiped out the copier, fax, and for the most part the scanner, but not the printer. Dealers universally represent at least one full equip-ment line. But underneath it all, only one thing has really changed in the core MPS business: automation through software, allowing users to benefit from proactive versus reactive document management. The customers still copy and they still click “File > Print.” Dealers still enjoy hardware sales (lease renew-als) and, more importantly, residual profit and cash flow.

That’s a long way of saying, if not asking: What is new? What is next? I can look back 40 years and

a lot has changed in the computer industry. If you jumped in, maybe you had an early exit, maybe you got crushed. Whereas I can look back 14 years in the copier and printer industry (if not 40 years) and besides a slow decline in pages, the introduction of color (and a bump in revenues), and evolution toward an automated MPS model, not much has changed. Customers still copy and print – a lot. So unless you are considering making an invest-ment in BPO or ECM and ultimately adding or shifting your business in this direction, I expect the new

technologies in MPS to continue as a series of nuances because, in MPS, history is repeating itself. So with that in mind, new tech-nologies are subtle enhancements and improvements that ultimately represent opportunity to gain exper-tise, advantage, and a leadership position toward capturing more of what we already know: that the MPS marketplace is still a great opportunity to build a residual profit-able business. Therefore, perhaps a more focused question to answer is: What are the new enhance-ments, nuances, and improvements that offer this opportunity?

Predictive Automation: Data Collection Agents (DCAs) aren’t necessarily new, but there are enhancements within these evolving applications that offer opportunity; for example, the bridge between supply alerts and toner fulfillment. For many, this is still a human exer-cise that is more costly and leaves margin for error. Today, wholesale

Only one thing has really changed in the core MPS business: automation through software, allowing users to benefit

from proactive versus reactive document management.



toner distributors are bridging the gap with technology to reduce these issues. Look no further than Supplies Network’s Application Programming Interface (API) devel-opment to not only assess the per-centage of life remaining on toner, but also the rate of consumption to better drive predictive analytics, timing, and fulfillment. This not only removes direct cost of human in-tervention, but also reduces margin for error, and stretches the value of each toner cartridge sale under-neath an MPS contract.

Rules-Based Printing: Many customers have adopted MPS and have visibility into their print environment at the device or fleet level. However, most do not have visibility into the user or applica-tion level. For example, they are blind to who prints what and how

much it costs. Applications such as PaperCut, ROI Print Manager, and PrintAudit are not only mining this data, they are making it actionable. It’s a two-tiered approach: 1) moni-tor and report print behavior by user and by application; e.g., how many print jobs derive from MS Outlook, and how many of those were in color and 2) make it actionable by programming rules into these same applications such that when print jobs are processed by the print server they are subject to rules which enforce company policy; e.g., switching all email print jobs to monochrome from color.

Automatic Sustainability: API connectivity within existing technol-ogy enables the evolution of new applications such as PrintReleaf. PrintReleaf automatically measures and certifiably reforests every sheet

of paper across a network of global reforestation projects. Whereas many customers are focused on recycling, which slows down deforestation, it doesn’t guarantee reforestation. As a result, printing and paper consumption are often perceived negatively. PrintReleaf not only better neutralizes environmen-tal impact, it also better sustains the business practice of printing.

As you can see, many “new technologies” are actually en-hancements to tried and true tech-nologies with new support sys-tems and benefits. And, while our industry continues to evolve and change, it also stays the same.

on the webContact Jordan [email protected]

theimagingchannel.comsign up at

{ }

Total Print SolutionsComing To You! The Imaging Channel’s eBulletin

Get serious about managed print with a subscription to The Imaging Channel’s Total Print Solutions, an e-newsletter providing you with the tools you need to enter into the MPS space or enhance your company’s current offerings. Total Print Solutions is your link to the MPS world. Find out how to market your MPS program, learn tips and tricks from experts in the field and gain a tactical advantage as you position your service. Opt-in today. This e-newsletter is FREE and will be delivered to your inbox twice a month.

Want to advertise? Call: +1-702-720-4889 • [email protected]

Proposed logo revision, 07/2010, EH


FP_AdLayout.indd 1 9/23/14 7:46 PM

http://inkcycle.com


WITH MAJOR COMPUTING trends today’s norm – Mobile, Internet of Things, Big Data – it’s hard to imagine the Managed Print Services (MPS) of the past and how MPS revenues reached $18.9 billion in 2013, according to the Photizo Group. Over the past 15 years, the MPS market

has changed dramatically from the number and types of vendors who offered MPS to how those vendors systematically removed the hu-man element from MPS – severely hampering client relationships. To understand why the market took that drastic shift and the steps it needs to take to become human again, we first need to take a trip down memory lane.

The good old daysIn the late 90s, MPS focused on en-abling the placement of high volume copying devices with simple finishing features closer to employees within the office. To help ease the acquisi-tion costs for customers, vendors bundled the costs of equipment, consumables and support services

within financial models. Due to the increased complexity of the devices, vendors managed and serviced that equipment by providing onsite customer support to perform simple break/fix tasks, toner replacement, and to gather usage information for billing. These resources directly man-aged the availability of the devices with little to no reliance on customer employees.

Lack of human interactionHowever, as facilities and IT busi-ness leaders were asked to reduce budgets beyond levels already achieved, they turned to previ-ously unmanaged devices within the print environment – workgroup and personal printers – to uncover additional savings opportunities. The digital printing age was born. Vendors provided solutions that included devices that converged copy, print, fax, and scan features, driving significant reductions in the numbers of devices. Vendors also touted innovative tools that monitored equipment usage and provided notifications when toner or service was needed without requiring human intervention.

One downside to these solu-tions is that they were delivered and managed via remotely located resources. No one can load paper, change toner cartridges, or clear paper jams in the devices using remote technology or personnel. Those services must be performed locally at the device and within MPS solutions most often that task falls to customer knowledge workers. Customer employees now needed to observe the error on a device and then place a call to a help desk or call center where they were often forced through computerized selec-tions or on hold for long periods of time. Employees were also required to attend training sessions to learn and perform the tasks of replacing toner cartridges and loading paper as well as the expanded features of the devices – all of which lead to decreased productivity.

People: The Driver for the Future of MPSby TONI DUGAL, NOVITEX

NovitexC_0115TIC.indd 38 12/23/14 10:19 AM

January 2015 39

the future of MPS

This productivity impact is once again driving a change within MPS customers. They can no longer tolerate the productivity loss on employees that a low-touch, self-service model causes. Customer employees have businesses to run or other value-added responsibili-ties that drive company results, and their productivity is eroded when tasked with device support activi-ties such as fixing a broken printer.

Additionally, the consolidation of devices that drives the major-ity of the initial cost savings within an MPS solution increases the criticality level of the performance of output devices that remain in the managed environment. The result is an increased need for faster service levels and agreements to repair devices within specific timeframes.

The future of MPS: The human elementIn order to help solve this problem, reduce the impact on customer employees and to increase the service levels within MPS solutions, the industry needs to get back to its roots by providing onsite labor, process and professional services. While providing clients with onsite support will help alleviate some of the aforementioned problems, it’s important to make sure onsite re-sources are properly trained to not only deal with various MPS-related problems, but on how to be an inte-gral part of the customer’s culture.

Vendors must consider on-the-ground employees as an exten-sion of each customer’s culture. Onsite support teams interact with end-users day in and day out, and thus it’s essential for them to be properly integrated with a cus-tomer’s operations. To achieve a seamless integration vendors must provide continuous training to pre-pare them to embody a customer’s culture. For example, by leveraging

a web-based portal, onsite employees have the opportunity to participate in e-learning, enroll in training sessions and receive online tutorials on new policies and procedures for their respective customers. Additionally, by creat-ing training programs tailored to a customer environment, vendors can promote a customer’s culture and create brand ambassadors.

Aside from focusing on a cus-tomer’s culture, vendors should place an emphasis on service delivery including the fundamen-tals of customer service and how to effectively communicate. Plus, these programs teach employees how to be respectful, diplomatic and efficient in addressing client concerns. The cumulative effect of this training prepares onsite em-ployees to operate more efficiently at a customer site.

By properly integrating ven-dor employees into a customer environment, it provides those employees with an opportunity to help streamline MPS and other document management processes. Vendor employees learn the critical elements of the various document workflows within the customer en-vironment and can spot inefficien-cies or opportunities to reduce print and behaviors that increase costs. For example, sending large jobs to more costly distributed devices versus routing those jobs to more cost-effective centralized repro-graphics centers is just one of the inefficiencies an onsite employee may notice. Onsite employees can provide on-the-spot education and coaching to drive the adoption of scanning and routing technologies to further reduce unnecessary steps within workflow processes and cre-ate fewer printed pages.

Over the course of the next five years, businesses will continue to be asked to drive performance

higher while reducing costs, and, while overall printed page volumes will likely continue to decline, em-ployees will still rely upon devices to generate pages. MPS providers will need to expand their exper-tise about the customer’s specific business processes in order to continue to bring innovation and value within service agreements. Integrating people to support the environment with industry expertise and to positively impact the work-flow through intelligence analytics about document usage is the chal-lenge of the future for vendors.

As companies identify their re-quirements for MPS solutions and engage with vendors to evaluate capabilities and costs, be mindful to consider the impact the request-ed or proposed solution has on your employees. Pay attention to the expectations of customer-pro-vided actions and activities that will lead to productivity drains. Require higher service levels from the ven-dors to reduce device downtime where significant consolidation has occurred. Select a vendor who can broaden your document workflow improvements beyond the office and include the integration of other document lifecycle on-ramps and off-ramps such as copy centers, mail rooms, and scanning process-es. Bring the vendor’s employees back into your selected solution to minimize the productivity impact on your business and maximize your opportunities to implement process improvements. By doing so, you will select the right vendor to meet your MPS needs, which will drive faster business results leading to lower total costs and happier employees.

on the webNovitexwww.novitex.com

NovitexC_0115TIC.indd 39 12/23/14 10:19 AM


LET’S EXPLORE PRACTICAL tips you can implement right now to engage prospects and convert them into highly qualified leads. What do you do once you’re on LinkedIn? Evolving from a copier dealer to a managed IT services

dealer is no small feat. The in-dustry as a whole is in transition. That transition makes sense to those of us inside the industry; however, to the outside prospect, there is a perception and stigma that comes with a copier dealer. What does that mean for you as a dealer owner? It means that you need to quickly make that transition from a company that has traditionally sold a box to one that provides valuable IT services

that, oh by the way, offers copi-ers as well. Copiers may be the dealer’s bread and butter, but IT services are the future.

Aside from your website, which is a vital piece to update, how can you make a strong positioning

statement that you are the high-level technology company your clients need to aid in the security of documents and management of their IT needs? It’s one thing to know these things to be true as an individual owner; it is quite another to bring the prospects and clients along with you in this belief.

Enter LinkedInWhat can you do to make the

transition to an industry expert in the managed IT services field? For an outline of the basics of getting set up on LinkedIn, see “The Prospects in Our Industry Have Learned A New Language — Do You Speak It?” in the October issue of The Imaging Channel.

Once you’ve accomplished the basic setup, you’ll need to begin to wrap your mind around the consumers and think like them. Place yourself in their shoes. What do you do to find a solution for your organization to manage all the cumbersome IT issues you face every day? One thing you do is turn to trusted B2B businesses. Where are these other businesses? They’re on LinkedIn. When I first began my career in the copier industry, I began by researching the orga-nizations my company thought of as competition. I first turned to their websites, and then turned to their social channels.

Now, place yourself in the position of a buyer. I visit your LinkedIn page because someone told me of the legends of your impeccable service and out-standing quality. I want to know you. I want to understand who you are and feel the essence of what it means to be a member of that elite family. So, I visit your LinkedIn company page. What am I met with? A sea of posts begging prospects to “give me a call if you need a copier today! I have great deals for you!” Seriously, I wish I had saved

Using LinkedIn to Grow Your Dealership’s Sales and Learn the Digital Language of Your Buyers by LINDSAY KELLEY, DEALER MARKETING

Dmktg_0115TIC.indd 40 12/23/14 10:27 AM

January 2015 41

grow business with LinkedIn

screen shots of this stuff — you just can’t make it up. My faith as a prospect has been deflated. I’m met with a sales pitch instead of the warm fuzzy feeling this refer-rer portrayed to me. Since I’m an evolved buyer, I take online inter-actions as my “first impression” and I am sorely disappointed.

What can be done about this catastrophic situation? Here are the ways you can stand out among a sea of other provid-ers who don’t understand the damage being done by pushing product online.

1. Share relevant content. What’s important to your cus-tomer? Think of their IT services challenges and when you find an article from another trusted resource or your own personal blog, share it with your network. It helps you in multiple ways: 1) as they cruise through LinkedIn, they may see your shared article. The fact that it speaks to a challenge they have gives you credibility just for sharing it. 2) It gives your followers and connec-tions something to comment on

and share, expanding the reach of your network to their network. Pretty powerful stuff.

2. Research prospects (met at events, read about in a business journal). In a recent blog post, I wrote about successful tips to make networking events worth-while and profitable. When you want to get into a company that seems iron clad, LinkedIn can be quite a powerful ally. You can view second-degree connections who can offer an introduction to you or find common groups you share.

3. Create searches. There are 187 million monthly active users on LinkedIn.* That’s not users, that’s active users. There are 300 million users. Use these registered folks to your advantage. Log into LinkedIn, look at the search bar at the top, find “Advanced” to the right of the search box and click. It’s a new world of possibilities for finding potential clients for man-aged IT dealers in your area. This screen allows you to segment by keyword, title, geography, seniority level and company size to name a few. Once you’ve created this list targeted to the ideal buyer in your

geographic location, you can save the search and receive notifica-tions for when new profiles fall into that category. I like to call LinkedIn the most up-to-date CRM in the business. Your contacts are going in and updating their information each time something in their pro-fessional lives happens to change. Why not track and follow these folks? In essence, you don’t even have to track them. LinkedIn does it for you by sending a message to you via email when one or your connections has a new title or company. Does your current CRM do that for you?

This new digital and social language is what your prospects and customers are speaking. Get fluent.

* http://www.business2community.com/infographics/social-media-2014-statistics-interactive-info-graphic-youve-waiting-0904588

on the webContact Lindsay [email protected]

Join the MPSA and help shape the industry.

Communication + Collaboration + Education + Standards = Success!

By becoming an MPSA member you participate in the development of standards and best practices that will bring order to document chaos and build stronger business models.

Visit www.yourMPSA.org today and let us support your MPS business growth.

Dmktg_0115TIC.indd 41 12/23/14 10:27 AM

http://yourmpsa.org

Sharp.indd 10 12/17/14 4:18 PM

http://mwaintel.com

Sharp.indd 11 12/17/14 4:18 PM

http://mwaintel.com

Faster. Bolder. Smarter.EVERYBODY’S RAVING!Faster. Bolder. Smarter.

COPI

ER-B

ASED A3

LEDMFP

IMA

GIN

G C

HA

NN

EL -

OCT

- D

OM

US,

INC.

215

-772

-280

0

Welcome to the LED Connection!An industry fi rst that has everyone raving—the ES9465 and ES9475 copier-based A3 LED MFP devices are now available! OKI has combined wide-format color MFP functionality with the advantages of OKI LED technology to create a 4-in-1 device that delivers faster print/copy speeds, bolder high-defi nition output and smarter use of technology. Key features include:

• Superior HD LED color output at speeds up to 50cpm/ppm

• OKI Smart Extendable Platform—open architecture for web-based solutions

• Fewer end-user interventions and less periodic maintenance

• Reduced burdened labor rate for Dealers

• Full set of long-lasting CMYK toner cartridges shipped with all units

Learn how the ES9465 and ES9475 with OKI LED technology can light up your bottom line! Visit okidata.com/ESLaunch for more product information and to contact an OKI Data representative.

© 2014 OKI Data Americas, Inc. OKI, Reg. T.M. Oki Electric Industry Co., Ltd., Reg. T.M. Oki Data Corporation.

Feel like a partner again with OKI

Mono MFPs

Color MFPs

Mono Printers

Color Printers

Dot Matrix Printers

Label Printers

POS Printers

OKII-0720-14 BTA IC-Oct.indd 1 9/18/14 12:39 PMFP_AdLayout.indd 1 9/23/14 7:51 PM

http://okidata.com/ESLaunch

error codes and calls have stopped!” i have not had one ... · editor-in-chief charles brewer is...

Documents