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Office Technology magazine is the magazine of the Business Technology Association, an association of copier/MFP dealers.

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Cover June 10:Cover June 10 5/25/10 12:57 PM Page 1

BTA East Spread:Layout 1 5/28/10 11:26 AM Page 1

BTA East Spread:Layout 1 5/28/10 11:27 AM Page 1

Service Success in MPS

How to avoid & correct

common pitfallsby Mike WoodardStrategy DevelopmentHaving been responsible for MPS

service delivery at previous employers, as well as

being involved in helping our clients succeed in MPS

as a service consultant with Strategy Development, I

have experienced some common service pitfalls.

‘The Power of Performance’

Konica Minolta dealers

assured of channel unityby Brent HoskinsOffice Technology MagazineBringing together representatives

of both its direct operations and authorized dealership

partners, Konica Minolta Business Solutions U.S.A. Inc.

hosted the Konica Minolta Business Conference &

Product Expo, May 1-5, in Los Angeles. The conference

drew more than 1,000 attendees.

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CONTENTS

Development Platforms

Facilitating integrated

software applicationsby Brent HoskinsOffice Technology MagazineToday, office technology dealer-

ships face the challenge of in-

tense competition and the near

commoditization of the equipment they sell and serv-

ice. How can the dealership best set itself apart from its

competitors? Increasingly, the answer lies in the em-

brace of software applications.

Volume 16 � No. 12

F E A T U R E A R T I C L E S

D E P A R T M E N T S

6

8

30

Executive Director’s Page

BTA President’s Message

Advertiser Index

Business Technology Association� Education Calendar

� BTA Highlights27

M P S S T R A T E G I E S‘Convergence 2010’

Dealers introduced to new

Ricoh leadership teamby Brent HoskinsOffice Technology MagazineDrawing more than 1,000 attendees,

including authorized Ricoh, Savin and Lanier dealers,

Ricoh’s national dealer meeting was held April 19-22 in

Las Vegas. There was an emphasis on the company’s

managed document services strategy and announce-

ments of coming product launches.

C O U R T S & C A P I T O L SThank You, CBS

Reporting provides service

opportunity for dealersby Robert C. GoldbergBTA General CounselAfter an initial news report in

Sacramento, Calif., the CBS Evening News reported —

in an investigative fashion — that the many copi-

er/MFPs returned by customers contain thousands of

documents on their hard drives.

20

10

22

26

29

Engaging IT Professionals

What do they expect

from your dealership?by Matthew KlureCopy LinkIn today’s copier/MFP and printer

sales and service market, it has been apparent for many

years that office technology dealership personnel and

service providers need to be able to make friends with

and understand their customers’ IT professionals. How

do we get in to see the head IT professional?

16

2010 MPS Conference

Photizo Group hosts

second annual eventby Elizabeth MarvelOffice Technology MagazineThe 2010 North American MPS Con-

ference was held May 3-5 in San Antonio. It brought

together 290 attendees, including representatives

from 59 dealerships, to discuss the evolution of man-

aged print services.

24

04OT0610:04OT0610 5/28/10 4:35 PM Page 4

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Executive Director/BTAEditor/Office Technology

Brent [email protected]

(816) 303-4040

Associate EditorElizabeth Marvel

[email protected](816) 303-4060

Contributing WritersMatthew Klure, Copy Link

www.copylink.net

Robert C. Goldberg, General Counsel Business Technology Association

Mike Woodard, Strategy Developmentwww.strategydevelopment.org

Business Technology Association12411 Wornall Road

Kansas City, MO 64145(816) 941-3100

www.bta.org

Member Services: (800) 505-2821BTA Legal Hotline: (800) 869-6688

Valerie BrisenoMembership & Marketing Manager

[email protected]

Mary HopkinsDatabase Administrator

[email protected]

Teresa LeerarBookkeeper

[email protected]

Brian SmithMembership Sales Representative

[email protected]

©2010 by the Business Technology Association. All RightsReserved. No part of this publication may be reproduced by anymeans without the written permission of the publisher. Everyeffort is made to ensure the accuracy of published material.However, the publisher assumes no liability for errors in articlesnor are opinions expressed necessarily those of the publisher.

EXECUTIVE DIRECTOR’S PAGE

If you are reading

this column then I

can state without

hesitation that you are

well aware of the Busi-

ness Technology Associ-

ation’s Office Technology

magazine. You are likely

equally aware of our various education

workshops, Legal Hotline, BTA Hotline e-

newsletter, and district education and net-

working events. However, you may not have

found the time to become fully aware of all

of the discount programs BTA provides its

dealer members. We know that your daily

routine keeps you busy.

We’ve been busy as well. In recent months,

BTA has added several new member bene-

fits that provide discounts (or in some cases

a value-add) to BTA member dealers. Every

time we add a new benefit, our goal is to

further boost the value of your BTA mem-

bership and help you in your business,

through information, guidance or cost-

saving opportunities.

Following are details on four new mem-

ber benefits, all providing a discount or

value-add to BTA dealer members. For more

information on each, visit BTA online at

www.bta.org or call us at (800) 505-2821.

� BTA Marketplace — The BTA Market-

place provides BTA member dealerships

with the opportunity to take advantage of

BTA Member Specials from participating

BTA Vendor Associate members. The spe-

cials range from first-order discounts to gift

card offers to waived fees.

As I write this, our participants are: Color

Imaging, Densigraphix, Digitek, DocuLex,

DocuWare, ESP, Falcon Technology Solu-

tions, FMAudit, ILG, Image Star, InkCycle,

Miracle Service, Sharp, Square 9 Softworks

and Supplies Network. Certainly, BTA

greatly appreciates the participation of each

of these Vendor Associate members.

� Document Solutions Daily — BTA

members receive 18-percent-plus off of a

one-year subscription to this unique e-

newsletter. As a subscriber, each business

day you will receive easy access to industry

press releases, new product announce-

ments, product reviews and market studies.

I receive this e-newsletter myself and find it

convenient, given its easy-to-read format.

� MPS eLearning Program — Developed

by InfoTrends and Strategy Development,

BTA members receive 15 percent off of the

new Managed Print Services eLearning

Sales Training Program. The program pro-

vides comprehensive, self-paced online

training, which includes tests at the end of

each module. It eliminates travel expense

and out-of-office time.

The online training is intended for deal-

ership principals, sales managers, vice pres-

idents and print specialists. There are eight

modules: Developing an MPS Territory; The

First Appointment; Performing an Assess-

ment; Contractual Selling; Pricing a Trans-

action ; A Successful Strategy Session ;

Designing Winning Proposals; and Ex-

panding Your MPS Relationship.

� Metrofuser ServicePLUS Training —

Beyond its remanufactured printers and

printer parts, Metrofuser offers Service-

PLUS Training, which is offered to BTA

member dealers at a 10 percent discount.

ServicePlus Training is a compilation of col-

laborative disciplines of parts theor y,

service management and general printer

repair. Five different courses are offered. �

— Brent Hoskins

Do You Know AboutThese New Benefits?

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BTA PRESIDENT’S MESSAGE

From my perspec-

tive, my year as na-

tional president of

the Business Technology

Association flew by like a

bottle of toner at a print-

for-pay. It seems like it

didn’t last very long. An

old and overused cliché provides the reason:

“Time flies when you are having fun.”

It has been a very enjoyable year. There

have been countless conference calls and

discussions among volunteers and staff via

e-mail. There have also been various meet-

ings and events to attend. However, it was

an honor for me to be a part of all of it. I have

found my year in the presidency — which

comes to an end June 30 — to be rewarding

in so many ways. Thank you for the opportu-

nity to serve as BTA’s 75th president.

As I consider that number — 75 — I can’t

help but think of the many men and women

who served as BTA national president

through the years. Since I joined BTA in

1981 and shortly thereafter became a volun-

teer at the local level, I’ve had the privilege

of knowing many of my predecessors. Of

course, there are many more whom I never

met, starting with those who served the

association before I was even born! But

whether I knew them or not, one common

trait among these individuals is apparent to

me: All were champions of the entrepre-

neurial spirit and dedicated to the ongoing

success of the independent office tech-

nology dealer. Otherwise, BTA would not

have flourished for so many years.

Certainly, the industry has changed sig-

nificantly since it was established in 1926 as

the National Association of Typewriter

Dealers. (In case you are doing the math,

some presidents served longer than one

year.) Even the typewriter itself has all but

disappeared. But through these many years,

the association has been at the forefront in

terms of providing dealers with insight and

guidance to help them succeed every time

the course of the industry has changed.

When managed print services began its

ascent, for example, BTA was the first in the

industry to introduce a training workshop

on the topic, the BTA MPS Sales Workshop,

through our partnership with Strategy

Development.

Even with its long and distinguished

history, I think that these last few years are

likely among some of BTA’s best. Have you

noticed the resurgence of your association?

Have you noticed the growing list of mem-

ber benefits, including new educational

workshops? Have you noticed the new dis-

trict events, and BTA’s growing visibility

within the industry?

I suspect that your answer to each question

is “yes.” The reason for these recent strides is

actually quite simple. A few years back, the

volunteer leadership and staff took a close,

new look at BTA with the goal of ensuring that

it, in fact, remains positioned in every way to

serving its dealer members at an optimum

level. The result: An even greater level of com-

mitment to move BTA to new heights.

I’ve seen it firsthand. Your national and

district leadership is a cohesive team of indi-

viduals who are passionate about continu-

ally strengthening BTA and, in turn, the

dealer channel. If you have not already done

so, I encourage you to take a look at the

growing number of BTA member benefits

listed on our Web site, www.bta.org. Your

association is here for you. �

— Bill James

BTA’s CommitmentHas Long Endured

®

2009-2010 Board of Directors

PresidentBill James

WJS Enterprises Inc.3315 Ridgelake DriveMetairie, LA 70002

[email protected]

President-ElectRock Janecek

Burtronics Business Systems Inc.216 S. Arrowhead Ave.

San Bernardino, CA [email protected]

Vice PresidentTom Ouellette

Budget Document Technology251 Goddard Road

Lewiston, ME [email protected]

BTA EastTodd J. Fitzsimons

Network Imaging LLC122 Spring St.

Southington, CT [email protected]

BTA Mid-AmericaRon Hulett

U.S. Business Systems Inc.3221 Southview Drive

Elkhart, IN [email protected]

BTA SoutheastTerry Chapman

Business Electronics Corp.219 Oxmoor Circle

Birmingham, AL [email protected]

BTA WestLokke PatrickDocutxt Corp.

11110 E. Artesia Blvd., Ste. BCerritos, CA [email protected]

Ex-Officio/ImmediatePast President

Ronelle IngramSteven Enterprises Inc.

17952 Sky Park Circle, Ste. EIrvine, CA 92614

[email protected]

Ex-Officio/General CounselRobert C. Goldberg

Schoenberg Finkel Newman & Rosenberg LLC222 S. Riverside Plaza, Ste. 2100

Chicago, IL [email protected]

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Strategy Development ad Mar 10:Layout 1 2/8/10 9:19 AM Page 1

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by: Brent Hoskins, Office Technology Magazine

Development PlatformsFacilitating integrated software applications

Today, office technology dealer-

ships face the challenge of in-

tense competition and the near

commoditization of the equipment they

sell and service. These realities have given

rise to the quest for differentiation. How

can the dealership best set itself apart

from its competitors?

Increasingly, the answer lies in the

embrace of software applications. Docu-

ment management systems serve as a

good example. Today, a growing num-

ber of dealers are selling and installing systems from a growing

list of dealer-friendly document management software com-

panies. That may serve as a differentiator from the hardware-

only-focused competitor, but what next? How else can the

dealership provide the customer a value-add differentiator

that can further enhance productivity and improve workflow?

One answer lies in the various development platforms

unveiled by the industry’s hardware manufacturers in recent

years. Actually, such platforms are by no means new to the

industry. In 2003, Canon launched MEAP (Multifunctional

Embedded Application Platform). Other development plat-

forms followed. Among them: Kyocera Mita’s HyPAS (Hybrid

Platform for Advanced Solutions); Lexmark’s eSF (Em-

bedded Solutions Framework); Ricoh’s RiDP (Ricoh Devel-

oper Program); Sharp’s OSA (Open System Architecture)

platform; and Xerox’s EIP (Extensible Interface Platform).

Development platforms are used to facilitate a custom,

integrated interface with a software application via an

MFP’s control panel. Through the manufacturers’ develop-

ment programs, independent software vendors (ISVs) — and

often dealers and end users as well — are provided with

tools, including access to software development kits (SDKs),

in order to develop integrated interfaces to software.

The promotional text for the Sharp OSA platform

appearing on the company’s public Web

site serves to further explain the value that

manufacturers — and dealers — are now

bringing customers through their develop-

ment platforms: “Sharp OSA technology

opens the door to transforming your MFP

into a customized portal conveniently

located throughout your business. Com-

bined with the virtually untapped poten-

tial of Sharp OSA applications, it helps

enable you to extract and access key docu-

ment information, manage usage costs

and improve workflow within your enterprise.”

A key benefit of development platforms, says Vince Jannelli,

associate director of applications and partners at Sharp

Imaging and Information Company of America, is the ability

for the dealership to add capability to the product it is placing.

“For instance, if you have a customer that wants the MFP to

integrate with Microsoft Exchange, if you are Sharp dealer,

then you can find a Sharp OSA connector that integrates with

Exchange,” he explains. “Or, say you have a customer using

Google’s Gmail; you can then find a company that provides a

software application that fully integrates with Gmail.”

There is no shortage of third-party companies offering

Sharp OSA integration. “In the U.S., there are about 130

companies in the Sharp Partner Program and about 64 vali-

dated products,” says Jannelli. Sharp OSA developers can

have their software integration validated to provide assur-

ance of successful operation on Sharp OSA-enabled MFPs.

“So, if you are scanning or printing or whatever you are

doing, we validate that the user interface works when you

hit a particular button and that it does so consistently

across all of our devices.”

Beyond simply adding to the MFP’s capability, development

platforms can be used to facilitate customized workflows. “It

allows you to customize a system to meet the particular

Cover Story June 10:Cover Story June 10 5/28/10 2:08 PM Page 10

DEALER MANAGEMENT SOFTWARE

Digital Gateway ad June 10:Layout 1 5/18/10 11:12 AM Page 1

needs of your customer,” says

Jannelli. “For example, when

the user scans a purchase

order at the MFP, it can be

automatically archived, sent

to accounting [so that an in-

voice can be produced] and

generate a pick list that is

sent to the warehouse.”

Jannel l i adds that the

interest in development

platforms has increased in

the past couple of years,

given the downturn in the U.S. economy. “One of the things

that is allowing dealerships to move forward is the ability to

add value and differentiation in a crowded marketplace,” he

says. “You are not going in there to sell a ‘copier’ anymore.

You can say, ‘Look, I understand that you have fewer people

and you are trying to do more; I can increase your efficiency.’

That, really, is what the integration of hard copy with the

business operations is intended to achieve.”

Phil Boatman, manager of Business Solutions Dealer

(BSD) program development at Lexmark International Inc.,

shares a similar perspective. “Frankly, we view this as a new

revenue stream — a money-making opportunity for dealers,”

he says. “Differentiation with standard copy/print/scan/fax

technology is difficult. However, making it easier for dealers

to understand how to be a consultant and understand their

customers’ businesses is a key focus here at Lexmark. We

work to teach our dealers to sell in a successful, solutions-

oriented way so that they gain on their competitors, helping

their customers in a meaningful way that applies directly to

the customer’s mission-critical work.”

By selling as a consultant, the sales reps can ensure that

the customer no longer sees an MFP as “just speeds and

feeds or a CPC charge,” says Mark Hart, a business develop-

ment manager at Lexmark. “When the customer sees an

[eSF-enabled] application and the power of what they can

do on the touch screen, they quickly see how the machine is

no longer a peripheral, but now it becomes embedded into

the everyday workflow,” he says. “It has turned into an

everyday workflow machine.”

Lexmark dealers are increasingly moving to a solution

sales approach. In January 2009, the company launched its

Virtual Solution Center, a Web-based tool that enables

dealers to access, deploy and install embedded software

applications for their customers’ Lexmark MFPs. This

includes applications devel-

oped by Lexmark and con-

nectors to third-party soft-

ware utilizing Lexmark’s eSF.

“We consistently see an

increase in downloads from

the Virtual Solution Center

each month ,” says David

Carr, who, like Hart, serves

as a business development

manager at Lexmark. “Most

all of the partners in our BSD

program utilize the Center.”

Boatman cites another indicator of the number of

Lexmark dealers selling software-based solutions. “The

attach rate of devices being sold by our dealers with solu-

tions on them is rapidly growing,” he says. “That’s what is

exciting us. We are seeing this become an integral part of the

dealer business strategy.”

As noted, sometimes it is the dealership, rather than an

ISV or end user, that is creating the integrated software

interface, through participation in a manufacturer develop-

ment program. It appears that Kyocera Mita America Inc. is

the latest manufacturer to provide dealers — along with

ISVs and end users — the opportunity. In September of 2008,

the company announced the initial phase of the launch of

HyPAS, which enabled Kyocera to integrate software from

companies such as Equitrac into select MFPs. However, in

April of this year, the company launched the Developer

Support Program and partner Web site for HyPAS.

While she acknowledges that Kyocera is a late arrival with

its development program, Akisa Matsuda, director of software

solutions at Kyocera, emphasizes that it offers an additional

capability that she says sets the company apart from other

manufacturers. “The Kyocera Developer Support Program

helps dealers to differentiate from competitors by utilizing

HyPAS Tool Kits to customize their solutions’ capabilities and

solve customers’ unique problems,” she says. “It is the HyPAS

Tool Kit that is very unique. Instead of providing our SDK to

our dealers, we developed the Tool Kits so that the dealer can

create applications for their customers easily and quickly.”

Matsuda notes that the Tool Kits do not require dealer-

ships to have programmers. “It’s not like that,” she says. “You

just join the Developer Support Program and take advan-

tage of it. We offer the training and support. And we are

not charging dealers to join the program. If desired, the

dealership can offer this as a professional service. Our

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“Frankly, we view this as anew revenue stream —a money-making opportunity for dealers. ... Making it easier for dealers to understandhow to be a consultant ...is a key focus here at Lexmark.”

— Phil BoatmanLexmark International Inc.

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interest is, we want to help

dealers sell Kyocera product.”

Of course, says Matsuda, it

is up to the dealership owner

to take the first step — com-

mitting to the Developer

Support Program. “The level

of commitment from the

dealership owner is very, very

important,” she says. “With-

out that, the dealership will

probably not succeed selling

embedded and integrated

software applications.”

She is not alone in her observation, in terms of the neces-

sary commitment and the dealership’s success. Says Hart: “I

think it does come from the top down — owner buy-in that

applications is where they want to go.” Says Jannelli: “It’s

driven from the top. Executive management needs to make

the decision that ‘this is what

we are going to do.’”

Once that decision is

made, says Jannelli, the deal-

ership will see the rewards.

“Sharp OSA-enabled applica-

tions can add value from

little increments all the way

to complete software deploy-

ments, from adding an e-

mail Exchange connector to

a document management

application,” he says. “As you

scale upward, the value-add becomes bigger

and the revenue opportunities increase.” �Brent Hoskins, executive director of the

Business Technology Association, is editor of

Office Technology magazine. He can be

reached at [email protected].

“Sharp OSA-enabledapplications can add valuefrom little increments allthe way to complete software deployments ...As you scale upward, thevalue-add becomes biggerand the revenue opportunities increase.”

— Vince Jannelli, Sharp Imagingand Information Company of America

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Cover Story June 10:Cover Story June 10 5/28/10 4:40 PM Page 12

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by: Matthew Klure, Copy Link

Engaging IT ProfessionalsWhat do they expect from your dealership?

In today’s copier/MFP and printer sales and service

market, it has been apparent for many years that office

technology dealership personnel and service providers

need to be able to make friends with and understand their

customers’ IT professionals. How do we get in to see the

head IT professional and show him (or her) that we are

prepared to work with him and not cause more issues for

him to fix?

The first thing any service provider or dealership needs is

an in-house solutions specialist/IT professional. Without

this crucial employee, you will never be able to gain the trust

of a customer’s IT department. Knowledge is power in the IT

world, and if you are not prepared to have that knowledge

in-house, you are not prepared to go anywhere near a cus-

tomer’s network.

Secondly, once you have an in-house IT professional of

your own, never have a sales rep go on an appointment where

the customer’s IT person is going to be and leave your own IT

support at the office. IT professionals view all non-IT people

as “users,” and users who try to sell them network technology

are not given the time of day. Your internal solutions spe-

cialist/IT professional needs to be presented to the customer

as a trusted resource for both you and the customer.

I have been in this industry as a solutions specialist/IT

professional for the last 10 years and have seen the sales and

implementation cycle from the dealership perspective. So, I

took the time to reach out to some fellow IT professionals

who are not in the copier/MFP sales industry and asked

them what they expect from an MFP dealer and service

organization. Here are some of the replies I received:

“Robert” gave me this list of requirements:

� Up-to-date software and drivers. It should work on

Windows Server 2008 R2, Mac, Windows 7, etc.

� Centralized management of MFPs. When you have 100-

plus MFPs on- or off-site, it makes life easier to check for

problems and deploy updates if everything is in one place.

� Configuration by policy. No one wants to configure

LDAP and address books on 100 MFPs.

� Notification (or better yet, auto update) of firmware.

� Parts availability. The more parts stocked, the better. A

week is too long to wait for any part.

� Scheduled maintenance. “Everyone touts this, but few

live up to the expectation. If it is not in my Outlook calendar

and I do not have the name or number of the tech, then how

is it scheduled? This goes back to communication and punc-

tuality. When a tech comes in to fix chronic paper jams and

tells me that a roller needs to be replaced and it is going to

take a few days to get the part, that is simply unacceptable.”

� Ease of use. “Most users do not scan because the

control panel is too complicated. The more straightforward

and the fewer the number of menus, the better it is. Sales

reps say they will train, but when you have locations all over

the United States, or have new employees, the training is

just not enough. I prefer self-explanatory to training.”

“Michael” said just one thing: “I want them to know what

they are talking about.”

“Richard” also had a detailed response to my question:

� “I would expect prompt, timely repair and turn-around.”

Klure June 10:Klure June 10 5/28/10 10:53 AM Page 10

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BEI Pros ad June 10:Layout 1 5/17/10 12:52 PM Page 1

� Recognition of lemon devices and

timely replacement after all options

have been explored.

� A deep understanding of the net-

working capabilities of the devices.

� The ability to be able to direct the

customer to technical resources avail-

able online for further research.

� The ability to provide suggestions

or documents stating best practices for

the usage and implementation of the devices.

� Direct, honest answers as to what the device can do,

and set realistic expectations for the device.

� Best case scenario: A partnership with a dealer in

which the dealer role is one of providing the printing solu-

tion, information about industry trends and solutions avail-

able that could either reduce cost or increase revenue for

the client.

“On IT, I live by the following: lower management costs,

reduced manpower requirements, increased efficiency and

forging a long-term partnership that is mutually beneficial,”

says Richard. “Dealerships that are out for the quick buck

and burn their customers are not seeing the big picture.

Long-term relationships can make or break a dealership.

Look at Dell as an example. They lowered the quality of their

customer service by off-shoring it and lost many long-term

customers for years. Short-term gains cost too much over

the long term. Michael Dell had to come out of retirement to

fix his company.

“Dealerships that are up against the 800-pound gorillas

— direct manufacturers, such as Xerox, Ricoh and Canon —

need to think they are performing guerrilla warfare,”

Richard continues. “Dealerships have to provide something

that an 800-pound gorilla cannot. Find your niche, cater to

the customers’ needs and be nimble and flexible. Eight-

hundred-pound gorillas lumber down the road and take a

long time to change direction.”

One of the key similarities among the comments from

these professionals is knowledge — that is, knowing what

your products can and cannot do on the network and being

able to back that up in practice.

If your organization does not yet have an IT person or

solutions specialist, there are some basic guidelines to

follow when looking to hire one. To start, be sure to find out

about his knowledge of network protocols, especially SMB

file shares and LDAP authentication, before you hire him.

Taking the most network-savvy tech from among the ranks

of your service organization to fill this

role i s al so an option since h e has

become familiar with how the specific

MFPs your company sells and supports

work on the network.

However, I have a few warnings about

doing this. If you do choose a tech, make

sure he is one who not only has an

interest in computers and networks, but

who can communicate this interest in a

meaningful way. There are many computer lovers in the

world who have limited people skills. Your customers are

going to want to see a person who is knowledgeable and a

good people person before choosing to engage in business

with your organization.

Also, once the decision has been made to bring a tech

over into a pure solutions and IT support role, you have to

separate him from the hardware duties he once filled. If your

solutions person has to cancel sales appointments to go fix a

broken machine, it just will not work. I have seen too many

cases where this has happened, only leading to disgruntled

sales reps who need the knowledge your IT person brings to

the table. If you choose to promote a tech to this role, please

replace his position on the service team.

The only way to effectively engage the IT departments that

are increasingly making the decisions about what copier/MFP

or printer to buy for their company is to have an IT person of

your own. Not just one to take care of your in-house IT issues,

but one to take care of customer issues. Make sure it is some-

one who has a good understanding of multiple networking

protocols and, when put to the test by your customers, can

ensure your dealership shines. In the business-to-business

sales model, business is done via relationships. That means

your sales staff needs to have a relationship with the cus-

tomer’s CEO, CFO, office manager, etc., and your IT staff needs

to have a relationship with your customer’s IT staff.

Being successful is not about being the smartest person,

but rather, it is about surrounding yourself with the smartest

people. Invest in the right people and success will follow. �Matthew Klure is director of IT at Copy Link in San Diego.

For the past 10 years, he has been involved with the

connectivity of MFPs to customer networks

and software, working at both the

manufacturer and dealership levels. He is

also experienced in a wide variety of document

management and scanning applications.

Visit www.copylink.net.

Your customers are goingto want to see a personwho is knowledgeableand a good people person before choosingto engage in businesswith your organization.

18 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0

Klure June 10:Klure June 10 5/28/10 4:43 PM Page 11

Do you crunch the numbers, or do the numbers crunch you?

he BTA ProFinance course will teach you how to setthe strategy, track critical performance measures and

manage your assets according to a proven business modeldesigned to improve the profitability of your company.

Instructors John Hanson and John Hey of StrategicBusiness Associates take a holistic approach to theredirection of your business — from sales repcompensation and projecting service revenues toinventory management and an action plan forimplementation — with the short-term goal of achievinga minimum of 14% operating income. You can achievethese results by monitoring 24 key benchmarks andmaking strategic shifts as discussed in the program.

Start planning for improved profitability today! Send allof your strategic decision makers to ProFinance — it’s aninvestment in your company that will help you relieve theend-of-the-month crunch.

To register for ProFinance or get more informationon pricing and quantity discounts, visitwww.bta.org/ProFinance or call BTA at (800) 843-5059.

2010 workshop dates & locations:

Aug. 11-12, 2010 Chicago, Ill.Nov. 10-11, 2010 Las Vegas, Nev.

T

ProFinance is designed for owners and executive-level staff who make the critical business decisions that impact your company’s success. Some OEMs reimburse forProFinance tuition through advertising co-op or professional development funds. Check with your OEM.

ProFinance:31OT0406 5/25/10 2:01 PM Page 1

20 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0

by: Brent Hoskins, Office Technology Magazine

‘Convergence 2010’Dealers introduced to new Ricoh leadership team

There was an emphasis on the company’s managed

document services strategy and announcements of

coming product launches. There was also the oppor-

tunity to attend various education sessions and learn about

the products and services of Ricoh and a number of other

exhibiting partner companies in the Technology Expo.

However, one of the primary areas of focus at the recent

Ricoh Americas Corp. national dealer meeting was the con-

vergence of Ricoh and IKON. After all, the meeting took

place shortly after Ricoh announced that IKON executives

had assumed leadership roles at the company. Ricoh

acquired IKON in 2008.

Drawing more than 1,000 attendees, including authorized

Ricoh, Savin and Lanier dealers, the meeting was held April

19-22 in Las Vegas. It was the first for the company to

include dealers representing all three brands, reflected in

the theme and title of the event, “Convergence 2010: Bring-

ing the Best Together.” The title served the dual role of

reflecting the integration of Ricoh and IKON as well.

“I am pleased to announce Matt Espe’s appointment to

chairman and CEO of Ricoh Americas Corp.,” said Kevin

Togashi, who was recently named chairman and CEO of the

newly formed Ricoh Americas Holdings Inc., personally

announcing other recent executive promotions during the

meeting’s opening General Session. “As chairman and CEO

of IKON since 2002, Matt’s strengths in leadership and vision

have led to outstanding results for IKON.”

Ricoh Americas Holdings Inc. manages the asset value

and executive governance of all Ricoh sales companies in

the Americas. Through direct sales and the dealer channel,

Ricoh Americas Corp. includes operations in North, Central

and South America, and is the parent company of Ricoh U.S.

Togashi also told of the newly expanded role of Jeffrey

Hickling, who joined IKON in 2005, ultimately becoming its

president and COO. Hickling’s expanded role now includes

president and CEO of Ricoh U.S. He is responsible for

Ricoh’s dealer network, as well as its U.S. direct sales and

service organizations — Ricoh Business Solutions and

IKON Office Solutions.

During the General Session, both Espe and Hickling

introduced themselves to dealers and commented on the

integration of Ricoh and IKON. They also sought to reassure

dealers that Ricoh remains committed to the dealer

channel, echoing similar comments from Togashi.

“I want you to know this,” said Togashi. “For Ricoh to

position itself as a market leader in the U.S., there is one

Clockwise from top: Attendees learn more about one

of Ricoh’s products in the Technology Expo; Matthew Espe,

chairman and CEO of Ricoh Americas Corp.; Jeffrey Hickling,

president and CEO of Ricoh U.S.; and Kevin Togashi,

chairman and CEO of Ricoh Americas Holdings Inc.

Ricoh June 10:Ricoh June 10 5/28/10 12:06 PM Page 10

thing we must do. We must ensure the

success of the independent dealer with

a level playing field. We are committed

to your growth and we anticipate that

the dealer business in the total Ricoh

Americas’ business will expand to a

much higher level.”

Espe emphasized an increasingly

important role for dealers as well. “We

understand that our job is to help you

win, and I want you to understand that you are an essential

part of our strategy,” he said. “You are as important today as

you ever have been and, arguably, more important.”

Dealers will be brought into the dialog to provide

counsel as the process of integrating Ricoh and IKON pro-

gresses, said Espe. “We want to take a look at our business

from the outside in, and that really starts with you,” he said.

“We want to talk to our dealers ... and we want you to help

us frame our strategy. We want you to help us determine

what our priorities should be and help

point out our challenges.”

In his comments to dealers, Hickling

sought to quell any concerns about IKON

pursuing dealers’ customers. “Ricoh

didn’t acquire IKON to cannibalize the

dealer channel,” he said. “That would

make no sense. There is no way that any

of the direct channel would know your

customer base better than you do. Our

goal is to invest in the dealer channel and help you win with

your customers and expand the total Ricoh base.”

The integration of Ricoh and IKON will benefit dealers, said

Hickling. “As we create a plan to build a stronger organization

through integration,” he explained, “our goal is to strengthen

our company and provide better support for you.” �Brent Hoskins, executive director of the Business Technology

Association, is editor of Office Technology magazine.

He can be reached at [email protected].

“As we create a plan to build a strongerorganization throughintegration, our goal is to strengthen our company and providebetter support for you.”

w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0 | 21

On average, IBPI dealers save from $25,000 a year for

small dealers to $165,000 a year for large dealers because of the IBPI-only

discounts they enjoy on supplies, parts, training, service and more!

Put the power of the industry's largest buying group to work for your dealership. Call today to find out more!

Ricoh June 10:Ricoh June 10 5/28/10 12:06 PM Page 11

22 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0

by: Brent Hoskins, Office Technology Magazine

‘The Power of Performance’Konica Minolta dealers assured of channel unity

Bringing together representatives of both its direct

operations and authorized dealership partners, in

part to further foster distribution channel unity,

Konica Minolta Business Solutions U.S.A. Inc. (KMBS)

hosted the Konica Minolta Business Conference & Product

Expo, May 1-5, in Los Angeles. The conference, themed “The

Power of Performance,” drew more than 1,000 attendees,

including 380 attendees representing 180 dealerships.

During his welcoming comments in the opening General

Session, Rick Taylor, senior executive vice president and

COO of KMBS, emphasized the company’s focus on channel

unity. “Two years ago, when I said we would be one com-

pany with one vision and one voice, I meant it,” he said.

“We’ve made a lot of changes to get to this day.”

Those changes, said Taylor, include changes in KMBS’s

business structure, direct cost model, compensation model

and programs. “And sometimes, when all else failed, we

changed people,” he said. “These changes did not just affect

Konica Minolta employees. Today, we have 97 fewer dealers

in part because some dealers didn’t want to change with us.

Our unending determination has prevailed.”

With “dramatically” lowered fixed expenses, Taylor said the

company’s direct branches are “now profitable on a dealer-

cost operating model,” realizing a $70 million-plus increase in

operating income since 2008. If the direct branches were not

profitable, dealers in the same markets could not be expected

to “make a lot of money,” he said. “We have to have a very

profitable direct organization so that we’ll have credibility

when we stand in front of our dealers and say, ‘You can be in

these markets, they [KMBS direct branches] will stay out of

your way and you can make money.’”

In the past year, the “direct channel has embraced our

policy with respect to our dealer partners,” said Taylor.

“They completely understand and agree that we will not sell

to our dealers’ customers. They also completely understand

that we will not recruit our dealers’ employees.”

Taylor praised both direct and dealer channel representa-

tives for their recent successes. “Thanks to the total efforts

of everyone in this room and your colleagues who are

working hard back home, in a market that went down 15.7

percent last year, we increased our total unit placements in

excess of 10,000 units or 10.7 percent last year,” he said. “Our

placements were 55 percent direct and 45 percent dealer.

That’s a very healthy channel mix that bodes well for our

Clockwise from top: Attendees learn more about one of

Konica Minolta’s current products in the conference’s Product

Expo; Rick Taylor, senior executive vice president and COO,

Konica Minolta Business Solutions U.S.A. Inc. (KMBS); Ned

Umehara, president and CEO, KMBS; and Masatoshi

Matsuzaki, president and CEO, Konica Minolta Holdings.

Konica Minolta June 10:Konica Minolta June 10 5/28/10 12:11 PM Page 10

future growth in both channels.”

In his comments during the General

Session, Masatoshi Matsuzaki, president

and CEO of Konica Minolta Holdings,

shared numbers as well, but from the

perspective of Konica Minolta globally.

For the fiscal year that ended March 31,

“our total revenue was over $9.5 billion,

with operating profit of just over $560

million, delivering a return on sales of

over 5.4 percent,” he said, noting that KMBS parent com-

pany Konica Minolta Business Technologies (KMBT)

accounts for 67 percent of Konica Minolta’s revenues.

The conference also provided an opportunity for atten-

dees to hear from Ned Umehara, the newly appointed presi-

dent and CEO of KMBS. In his comments, he emphasized,

in part, that a key component of his business and personal

philosophy is to always be fair. “When I face a difficult busi-

ness decision, I always ask myself whether the decision I’m

about to make is fair or not,” he ex-

plained. “Our organization will work

hard at every level to ensure that we

treat our customers and their em-

ployees with the fairness they deserve

and we must ensure fairness in our

daily business.”

Umehara also paid tribute to his

predecessor, Jun Haraguchi, now serving

in Japan as director and general man-

ager at the sales headquarters of KMBT, complimenting his

“strong leadership” in building a “solid foundation” for

KMBS. “I would like to build further on this foundation,” he

said. “I want to develop a very strong ‘Team U.S.A.,’ as I like

to call it. I feel very fortunate and proud to be a part of ‘Team

U.S.A.’ with you.” �Brent Hoskins, executive director of the Business Technology

Association, is editor of Office Technology magazine.

He can be reached at [email protected].

“Our organization willwork hard ... to ensurethat we treat our customers ... with thefairness they deserve andwe must ensure fairnessin our daily business.”

w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0 | 23

Live Tech SupportDirect AccessHP & Lexmark

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Konica Minolta June 10:Konica Minolta June 10 5/28/10 12:11 PM Page 11

24 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0

by: Elizabeth Marvel, Office Technology Magazine

2010 MPS ConferencePhotizo Group hosts second annual event

By now, most dealers realize that the marketplace is

changing. In order to keep up with that change,

dealers must constantly educate themselves about

new technology and service offerings they can provide their

customers. One of these offerings, managed print services

(MPS), is a huge opportunity for dealers today, and atten-

dees at the 2010 North American MPS Conference were

assured that creating MPS offerings in their businesses was

the correct next step to dealership success.

The conference, hosted by the Photizo Group, was held

May 3-5 in San Antonio. It brought together 290 attendees,

including representatives from 59 dealerships, to discuss the

evolution of MPS. Fifty-four attendees were from foreign

countries, showing that MPS is not only a North American

phenomenon, but a global one.

On May 3, the conference held a series of workshops for

end users and dealers who were just getting into the MPS

space. These hands-on workshops gave attendees the

opportunity to get better acquainted with MPS technology

and the basics of MPS before learning more about the

specifics of the offering during the main conference.

The conference kicked off on May 4 with a keynote by

Mark Boelhouwer, vice president of marketing for Ricoh

Americas Corp. He touched on the foundational elements of

MPS, giving attendees three things to focus on. “The first

part we like to talk about is continuous optimization,” said

Boelhouwer. “The second one ... is called change manage-

ment. The third part is business process improvement or

document process improvement. How can we leverage what

we have today and the infrastructure from customers?”

Boelhouwer’s keynote was followed by a State of the

Industry address presented by Ed Crowley, founder and CEO

of the Photizo Group. The presentation, “Exploiting Chaos —

Creating Opportunities in the MPS Market,” focused on how

the industry is changing and how dealers can make the most

of that change. He also gave attendees an official definition of

Clockwise from top: Jim Fitzpatrick, president of MPSA,

presents MPSA’s 2010 MPS Leadership Awards during the

May 4 lunch sponsored by Print Audit; Attendees visit the

exhibit booths during a break; Mike Stramaglio, president and

CEO of MWAi, presents his education session on May 4; and

Ed Crowley presents his State of the Industry address.

MPS Conference June 10 copy:MPS Conference June 10 5/28/10 4:36 PM Page 10

MPS, created by the Managed Print

Services Association (MPSA).

“How they’re [the MPSA] describing

MPS is: ‘Managed print services is the

active management and optimization of

document output devices and related

business processes,’” said Crowley.

Crowley also touched on the cost

savings a custom er can get from

deploying an MPS solution in his (or

her) business. “So the new model, the managed print serv-

ices model, is really a pretty simple one,” said Crowley. “From

a customer perspective, I have a vendor and they manage

everything for me. And, in fact, not just manage the hard-

ware and infrastructure and the deployment services, but

they manage [the questions]: ‘How do I come up with a doc-

ument strategy? How do I improve my business processes?

How do I improve how my business operates?’ And by doing

that, on average, they improved their employee device ratio

to 6-to-1 from 2-to-1 — a three times improvement. They

reduced employee costs by $225 per year [per employee].”

On May 5, keynotes were presented by

Jason Evans, president and CEO of PEQ

Services & Solutions, and Dena Bernard,

director of customer satisfaction and

services at OKI Data Americas Inc.

Each day’s keynotes were followed by

three education tracks, and during

breaks, attendees could network with

peers or visit the exhibitor booths. Once

each day ’s education was complete,

attendees mingled at cocktail receptions hosted by MWA

Intelligence (MWAi) and United Stationers.

The final session on May 5 was an “Ask the Experts” panel,

where attendees were given the opportunity to ask ques-

tions of Photizo Group consultants.

The MPSA also presented its 2010 MPS

Leadership Awards and conducted its

annual meeting during the conference. �Elizabeth Marvel is associate editor of

Office Technology magazine. She can be

reached at [email protected].

“ ... ‘Managed print services is the activemanagement and optimization of document output devices and related business processes.’“

w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0 | 25

MPS Conference June 10 copy:MPS Conference June 10 5/28/10 2:33 PM Page 11

The first report was in Sacra-

mento, Calif.; the second was on

the CBS Evening News; and ,

recently, there was a third report here in

Chicago. The BTA Legal Hotline lit up

after each report and did not stop for

several days. In case you missed it, CBS

reported — in an investigative fashion

— that the many copier/MFPs returned

by customers contain thousands of doc-

uments on their hard drives. Of course,

CBS found copier/MFPs with medical

and criminal information, making the story quite attractive.

These news reports did not come as a surprise to BTA — the

association had been contacted by a CBS producer during the

“investigative” stage. Rather than investigate, the nature of the

inquiry reflected a desire to find a party to blame for any end

user unknowingly leaving data on a hard drive.

Let me assure you that a dealer is not responsible for images

or data left on a copier/MFP or printer when it is traded in, dis-

carded or comes off lease. A dealer is no more responsible than

an automotive dealership would be responsible for you leaving

your wallet in the glove compartment when trading in your car.

These investigative reports had a very positive effect. The

information provided alerted end users to the fact that “confi-

dential information” may not be as confidential as thought.

The reports also provide an excellent service opportunity for

every dealer. The opportunity is especially good with banking,

mortgage, health care, insurance and government placements.

Laws and regulations regarding the confidentiality of informa-

tion received govern many of these industries.

My first recommendation is that your sales and service

people convey to end users that there is memory in these

devices and the memory retains a certain amount of informa-

tion. There are also e-mail and IP addresses that are pro-

grammed into the device. This is all information an end user

should want to protect. Through early education, the

cleansing process will be easier to sell at the time the equip-

ment is returned.

The terms and conditions of your sales document, mainte-

nance agreement and lease agreement should all clearly state:

“End user is solely responsible for the

removal of any data and/or images

maintained on the equipment.” Although

there is no liability for this data, it is

always preferable to have a provision to

point to if the issue arises. This provision

may also lead to a discussion of data

cleansing services.

Dealers have long provided data

cleansing services to sensitive indus-

tries. These services are often presented

as having three alternatives. The first

cleansing option is to cleanse the hard drive by reformatting it

one time and eliminating all e-mail information and IP

addresses. The second option is to reformat the hard drive

three times and remove the e-mail information and IP

addresses. The third is to remove, destroy and replace the hard

drive. Once a dealer provides one of these services, the dealer-

ship becomes responsible.

There should be a concern with the effectiveness of the

reformatting process. Because a hard drive is reformatted, it

does not mean the data is not recoverable. In a litigated matter

I handled, an individual returned a laptop computer with all

the programs and files “erased.” The hard drive was sent to

three former FBI agents who were able to recreate 98 percent

of the information. Thus, when offering the three options, be

certain to present them as “effective,” “more effective” and

“most effective.” If the cleansing program is provided by your

manufacturer, be sure to review its disclaimers and be sure to

include similar ones in your transactional document.

Finally, if you offer cleansing services and the end user

declines, you may wish to seek a waiver of liability. An end user

who is asked to waive liability will sense the seriousness of the

issue and perhaps reconsider his (or her) decision. If not, you

have a waiver if an issue ever arises. A sample Data Cleansing

Waiver i s post ed on th e BTA Web sit e ,

www.bta.org, in the members-only section un-

der Legal Documents. �Robert C. Goldberg is general counsel

for the Business Technology Association.

He can be reached at [email protected].

by: Robert C. Goldberg, General Counsel for the Business Technology Association

COURTS & CAPITOLS

Thank You, CBSReporting provides service opportunity for dealers

26 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0

Goldberg June 10:Goldberg June 10 5/28/10 2:52 PM Page 26

EDUCATION CALENDAR

July22 Building My Business Webinar — “Your Exit Strategy”

Have you worked out your long-term plan or exit strategy? Are you considering selling yourdealership, or perhaps buying another? Do you want to know the true value of your dealer-ship? When thinking about exit strategies, the time to plan is now. What you do today willhave a tremendous effect on how much your dealership will actually be worth five to 10 yearsfrom now. This webinar, presented by Jim Kahrs of Prosperity Plus Management ConsultingInc., will outline what drives the value of your dealership. You will learn how to create a viableexit strategy before the time comes for you to step aside and pursue other interests. Free toBTA members, this webinar is scheduled for 4 p.m. Eastern, Thursday, July 22.

August11-12 BTA ProFinance Chicago, IL

ProFinance instructors John Hanson and John Hey of Strategic Business Associates will teachyou the financial model that helped them make the decisions that grew DC Hey from a $5million to a $170 million IKON-acquired enterprise. In addition to helping you implement themodel in your company, they will help you understand the strategies required to become moreclient and employee focused.

17-18 BTA Service Management University (SMU) Denver, COService managers are under pressure to deliver sustainable margins greater than 52 percent.In order to achieve this goal, they need to understand a multitude of profit inputs that rangefrom setting prices to employee performance and development. When service leaders leaveSMU, taught by Mike Woodard of Strategy Development, they will understand how to identifyand address any issue within the service department.

25 Building My Business Webinar — “Leadership Development & Empowermentfor Office Equipment Dealers”Too often business leaders take too little time to focus on their own development because theyare simply too busy running the day-to-day of their businesses. A void in your company's lead-ership can hold back or hurt your dealership. During this webinar, presented by Sally Brause ofGreatAmerica Leasing Corp., you will learn the attributes associated with successful leadershipand how you can develop these attributes within yourself and your dealership managementteam. Practical and actionable tools will be shared based on current business case studies. Freeto BTA members, this webinar is scheduled for 4 p.m. Eastern, Wednesday, August 25.

For additional information or to register for courses or webinars, visit www.bta.org or call (800) 843-5059.

w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0 | 27

Calendar June 10:Calendar June 10 5/28/10 2:53 PM Page 25

BTA HIGHLIGHTS

BTA would like to welcome the following new mem-bers to the association:Dealer MembersAlternative Mailing & Shipping Systems,

Arlington, TXAmerx Office Solutions, Austin, TXBundy Business Systems, Champaign, IL Complete Business Systems, Boise, IDDataflow Business Systems, Salinas, CADocument Imaging Partners, Breslau,

Ontario, CanadaGallup Business Systems, Gallup, NMID Group, Ridgeland, MSMichigan Business Systems, Southfield, MIPrinters Plus, Ottawa, Ontario, Canada

Vendor Associate MembersDiversified Computer Supplies, Ann Arbor, MIUnion Technology International, Macau SAR,

China

Service Associate MembersLease Corporation of America, Troy, MI

For full contact information of thesenew members, visit www.bta.org.

Metrofuser ServicePLUS Training Metrofuser’s ServicePLUS Training will pro-

vide students with hands-on, real-life scenariosthat will challenge them to repair everythingpossible for each technology element. BTAmembers receive 10 percent off. Students canattend up to five consecutive days of courses,with pricing discounts based on the number ofcourses. To register, visit www.bta.org and clickon “Education & Certification.”

For more information on BTA member benefits,visit www.bta.org.

For the benefit of its dealer members, eachmonth BTA features two of its Vendor or ServiceAssociate members in this space.

BTA VendorAssociate memberFalcon TechnologySolutions has worked

with small, medium and large companies toprovide effective solutions to business prob-lems. The Falcon team provides completesystems and business tools from requirementsto commissioning. With an extensive knowl-edge of quality software systems, Falcon canprovide your company with requirementsanalysis, project management, implemen-tation, quality assurance, ongoing productenhancement and maintenance, and more.

www.efalcontech.com

BTA ServiceAssociate memberBERTL is an inde-pendent testing

laboratory whose purpose is to provide objec-tive, independent product evaluation reportsand comparative analyses on imaging devicesand software workflow solutions. BERTL’sTesting Laboratory is responsible for devel-oping and applying technology, measure-ments and standards that are used in itsproduct evaluation reports and analyses. Inparticular, BERTL has developed softwaretesting tools and methods used to test theclaims made by manufacturers.

www.bertl.com

A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.

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Highlights June 10:Highlights June 10 5/28/10 2:58 PM Page 25

As most dealers and resellers know, print management/

MPS is not a buzzword that is going to fade away. It is a

new go-to-market strategy that allows companies to

penetrate new customers and add a highly profitable recurring

aftermarket revenue stream. Frequently, service is left to

“figure it out on their own” after the contract is written.

Having been responsible for MPS service delivery at previous

employers, as well as being involved in helping our clients

succeed in MPS as a service consultant with Strategy Develop-

ment, I have experienced and observed some common service

pitfalls, or mistakes, that occur when moving into the MPS

arena. The good news is each of these pitfalls can be avoided

or corrected once you know they exist and take the proper

steps to change your approach.

The first pitfall, and one of the most costly, is assuming cus-

tomer expectations. Over the years, the copier/MFP industry

standard for response time has settled at four hours. What is

interesting is that end-user customers did not randomly select

four hours as their response time requirement. We, as service

providers, became very good at delivering a four-hour average

response while achieving desired service margins. Most printer

users are accustomed to receiving “next-day” or even “second-

day” service, especially when their service support is internally

sourced. Incremental technician staffing is required to deliver a

four-hour versus an eight-hour average response time, com-

monly referred to as response time loading. The labor cost dif-

ferential associated with incremental staffing, in this example,

is from 10 to 14 percent. So, rather than lead with a four-hour

response time guarantee for printer service, start with a “next-

day” response, or a guaranteed “eight-hour response, 70

percent of the time.” Yes, there will always be mission-critical

situations that require a four-hour response time; however, you

will find that eight-hour or “next-day” service is quite accept-

able in most printer situations.

The next common service pitfall is placing stringent restric-

tions on printer models that can be included (supported) in a

printer fleet contract takeover. To be successful and grow MPS

aftermarket revenue, service has to be flexible and creative.

There are numerous sources of training, parts and technical

support for most laser-based printers. Once under contract,

the one-off, orphan printers included in a printer fleet can be

replaced with readily available, easily supported, used HP

printers. Remember, the objective is to get the printer fleet

under contract. Yes, there are printer models to stay away from

— ink-jet printers (which are repair by replace) and drum-

based MFPs (unless you are an OEM-authorized dealer).

Another service pitfall, also related to MPS printer fleet

takeovers, is requiring detailed device pre-inspections. Equip-

ment pre-inspections are a common service practice in the

copier/MFP arena; however, in the MPS world, equipment pre-

inspections are not worth the time, effort and risk (you could

loose the deal). Instead, simply require that the device makes a

print. Once again, do not lose sight of the objective of getting

the fleet under contract.

Once the MPS strategy takes hold, there is a common ten-

dency to continue servicing the expanding printer base with

existing copier/MFP technicians, which can be an expensive

proposition. With proper training and support, entry-level

technicians can provide outstanding printer field support.

There are also significant productivity and proficiency benefits

associated with technician specialization on printer products,

i.e. smaller, more effective trunk inventories, increased first call

effectiveness and ultimately, happier, more loyal customers.

While existing copier/MFP dealers may possess the necessary

Service Success in MPSHow to avoid & correct common pitfalls

by: Mike Woodard, Strategy Development

MPS STRATEGIES

w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0 | 29

Woodard June 10:Woodard June 10 5/28/10 3:03 PM Page 26

service infrastructure and resources to

support MPS, there are some aspects of

the traditional service delivery model that

may not apply.

As an example, there may be little value

in assigning dedicated printer technicians

to individual territories. One of the biggest

benefits associated with assigned territo-

ries has been the value of technician/cus-

tomer relationships, which makes sense

when the customer sees the technician on a regular basis.

However, in the printer environment, service may only be

required once a year, or less. The value of assigned territories

is diminished. There can be greater value in applying a “route

service” strategy, which assigns service calls based on location

intelligence — who is available, closest, trained, has the right

part, etc. Also, because printer average repair time is less than

that of copier/MFPs, the calls-per-day expectation is higher.

With more calls per day, there is a greater need to minimize

travel time. Route service using location intelligence can mini-

mize travel time.

Another example is traditional “call avoidance” practices. In

the copier/MFP service world, call avoidance generally involves

the technician calling the customer first to see if the problem

can be fixed over the phone. The printer service environment

lends itself well to the use of a formal, customer-facing help

desk. Today, printer service providers with customer-facing

help-desk capabilities are able to resolve 30 percent or more of

their incoming requests for on-site service. This represents a

huge labor savings opportunity, and labor

makes up 75 percent of the total service

cost in printer service delivery.

The bottom line: Today’s copier/MFP

service providers are quite capable of

taking on service delivery in the MPS arena;

however, there are a few common pitfalls

that, when avoided, can ensure effective

and profitable service results in a rapidly

growing market. �Mike Woodard is a consultant with Strategy Development, an

imaging industry management consulting firm. He has 30-plus

years experience in all aspects of field service operations

and service strategy development. During his 20 years with

IKON Office Solutions, Woodard held key regional and national

service operations positions including national vice president of

field service strategy, national vice president of field services

and national vice president of field service operations.

Prior to joining IKON, he spent 18 years with Xerox Corp. in

multiple field service assignments. Woodard advises companies

on critical success factors including target service metrics and

goals, performance management, technology application,

service growth strategies, and compensation and incentives.

In addition, he provides leadership

and management development training

designed for the service professional.

Woodard can be reached at

[email protected]

or (610) 742-4701.

30 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0

However, in the printer environment,service may only berequired once a year, or less. The value of assigned territories is diminished.

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