The Imaging Channel

Nobody Can Tell Me What MPS Is, but Apparently Everyone Has an Amazing Program

This guest blog was contributed by Brian Stevenson.

As we approach the upcoming Photizo Conference and World Expo, we’re reminded that the term “managed print services” is still very young. Providers, from OEMs to compatible toner companies to parts companies to distributors to leasing companies, have all taken a shot at offering independent resellers a program that works for both their customers and their independent business.

The OEM list is huge. Take Xerox and HP; both have interesting programs, and they might be a good fit if you’re comfortable turning over significant account knowledge to these “partners.”

The distributor list is long. Azerty has done a nice job positioning itself as the “SMB provider,” but how is its program different from NER’s HQueue offering, given that both appear to utilize the same MPS infrastructure tools?

If you’re seeking a relationship with a compatible toner manufacturer, both LMI and West Point seem to have solid programs. But do they offer the same depth of program, or is it simply an avenue to procure your toner?

You get my point. A lot like a wedding, the above programs are often similar but are always different. To make things more complicated, the similarities and differences are hard to discern. So what should an independent do? Up to this point, it’s been tough to navigate, and there isn’t an easy two-by-two comparison matrix out there to help us. So the questions remain.

Are all of the MPS programs the same? No.

Are some better than others, or does it depend on the type of offering you’re seeking? Yes and yes.

Is it time to begin ranking the list of providers? Definitely.

Do we need some objective insight to get this figured out? Oh, yeah.

The reality is, there are far too many players and far too many variables to make this an easy process. Maybe the MPSA should take this on and add the “Top MPS Program” category to its awards list in 2013. That’s not going to happen overnight, but it’s something to strive for. It’s also time we see the “Consumers’ Choice” award for the best off-the-shelf MPS program for 2012.

Clearly I’m not the only one that feels we need an objective assessment of the landscape. Apparently, a PhD has been working on this survey for the past several months and has just launched his survey tool.

Enter the good doctor, Dr. David Cameron. One of the only PhDs in our industry (not even sure if there is another outside of the research labs). David has the knowledge to construct, distribute and analyze a complex set of data such as this test will capture. He has a professional track record and has always been viewed as unbiased – a critical component to getting this one right.

For everyone out there utilizing a program offered by one of our industry partners, please click David’s survey link and fill it out. It will take you about 15 minutes to complete. That’s about as long as it takes you to pick up your copies after deploying your latest equipment right-sizing with a user-to-device ratio now topping 70:1! OK, sorry, but it’s only 15 minutes. Your survey input will help everyone in the industry, from the independent providers to the MPS program owners.

I don’t believe MPS is a commodity, and I have yet to see two programs that offer identical benefits. Your feedback, combined with David’s analysis, will help our industry move forward with better solutions for customers and improved programs for dealers.

David, thanks for taking on this huge challenge. I believe this is one of those “Build it, and they will come” moments. I know I will.

See you in Orlando …

Brian

Contact Brian Stevenson at bstevenson@footprintmps.com.

Posted on 05/14/20120 comments

Something Happened on the Way to Vegas

This guest blog was contributed by Sharron Lawson.

A couple of weeks ago I had the good fortune to be sitting beside a delightful woman who was headed to Las Vegas for some R&R. I was on my way to ITEX, and she was on her way to see her new grandchild. About an hour into the flight, she asked me what I did for a living. I told her that I worked for a software company that had developed a program for the managed print services industry. By the look of utter confusion on her face, I could tell that she had no idea what I was talking about. Not wanting to get too complicated, I explained that our software was designed to reduce the workload in managing printing devices through automatic meter reporting, supplies ordering and service notifications.

She looked at me for a few seconds and said, “That sounds simple! How does your software work?”

The very first thing I explained was that our software was actually very complicated, with a lot of sophisticated algorithms our team of developers had perfected over the years. On a roll, I went on to explain about public and private MIBs, firmware versions, thousands upon thousands of printer and copier models, multiple manufacturers and different networking environments. Wanting to ensure she understood that our software was far from simple, I talked about the need for multiple languages, the complications of dealing with different manufacturers globally and the difference between OEM and remanufactured toner.

Thinking she had probably lost interest at “algorithm”, I was surprised when she said, “That sounds complicated, why would anyone want that software?”

Looking down at all of the drawings and scribbles I had just made, I was not surprised she was confused. So I went on to say that that is the reason why people want the software – to take the confusion out of gathering device information for their MPS programs. Drawing from a database of more than 18,000 models, our software collects and analyzes information such as the number of pages printed, toner levels, and error messages and then presents that data in graphs and charts that are clear and easy to understand.

The results of this explanation?

Now the question wasn’t “That sounds complicated, why would anyone want that software?” It was “Wow – why wouldn’t everyone want that software?”

Posted on 05/03/20120 comments

MPS-in-a-Box: Here’s a Ready-to-Use Business Model to Get You in the Game

This guest blog was contributed by Tim Brien.

You’ve heard more and more about managed print services (MPS) throughout the past year. You understand the opportunities inherent in offering MPS as a service to your customers – both current and potential. You recognize the revenue potential and benefits of engaging in MPS. You know that the window of opportunity is closing as more of your competitors get in the game.

So now what? How do you get started in MPS? Do you have the time or the resources necessary to do so? Is there such a thing as “MPS-in-a-box,” and if so, where and how do you get it?

MPS-in-a-box

The idea of an MPS-in-a-box solution is an intriguing one. As the movement toward outsourcing the management of an organization’s print fleet and IT services continues to gain momentum, and as these services continue to converge toward one another through the implementation of managed print services, the need to find a ready-to-use MPS solution that fits your emerging business model becomes increasingly valuable.

Print fleets are one of the most overlooked and undermanaged assets, costing enterprises 1 to 3 percent of revenue per year and representing a wealth of hidden savings potential. So as the demand for managed print services increases, the need for a ready-to-use MPS solution increases as well.

Dealers who offer managed print solutions are at a competitive advantage. By offering MPS, dealers gain the ability to provide programs, services and solutions to deliver document management and workflow optimization tools, business process automation and efficiency improvement programs, outsourcing options for IT activities and print fleets, and integration of vertical-specific solutions.But simply offering MPS as part of a business portfolio isn’t enough nowadays. Dealers must understand the features and benefits of the entire MPS solution, have complete knowledge of the implementation of such services and have a trained and properly equipped staff that can sell and support these added services.

MPS-in-a-box is a solution that relies on the vendor to supply all aspects of your MPS program. As you grow your business, your vendor should be able to integrate with your growth and the internalizing of processes. A true vendor partner will assist you in growing your MPS business.

When considering the right vendor for MPS, it is crucial to consider that company’s reputation, experience, support, suite of services and tool set. The right program will get any dealer up and running quickly and provide a range of easy-to-use tools that add value to any business considering MPS. With 90 percent of all companies unaware of what they are currently spending on internal desktop and network printing, it is important to look for an MPS partner and solution that has a wide variety of useful tools.

MPS toolkit components

MPS-in-a-box should be a flexible, modular platform that meets the needs of seasoned dealers as well as those initiating MPS for the first time. In terms of tools, it should provide the following components:

• Automation of processes that were previously done manually
• Unbiased recommendations for print optimization across all brands and technologies
• Simple, step-by-step processes with online support to maximize your engagement
• Ability to leverage vendor capabilities in all areas (assessment, implementation, service and support)
• Ability to select services that augment existing offerings
• Support for a wide variety of data-capture formats from major vendors
• A solution that is built on industry best practices
• Education and support tools for all users, from owner/managers to administrators.

Getting started

From a timing standpoint, there is a limited window of opportunity if you want to implement an MPS program. As managed service providers and BTA dealers converge into the MPS market, those who are able to quickly procure the necessary business architecture will get into the market faster with these solutions and gain a competitive advantage; they will be the ones to stake their claim to this territory and solidify long-term customer retention.

Dealers offering MPS have the distinct advantage of expanding existing customer relationships, seizing new business opportunities and establishing recurring revenue streams on supplies, services and solutions. These opportunities may have otherwise been overlooked under traditional, transaction-based selling models. Given today’s market challenges, those dealers who proactively position themselves for success and quickly recognize the importance of changing their industry business model will emerge as market leaders and realize long-term financial gain.

What are you waiting for? Pick up your MPS-in-a-box today and get started right away!

Contact Tim Brien at tim.brien@okidata.com.

Posted on 04/17/20121 comments

MNS and MPS Hiring – Is It Some Sort of Weird Science?

This guest blog was contributed by Sally Brause.

Hiring the right people for your managed network services or managed print services business can seem at times like some mysterious scientific formula – one to which very few have access. It’s not easy to hire effectively, and it’s expensive to do it incorrectly! In fact, a Harvard Business School study indicates that making a poor hiring decision can cost a company as much as three times an employee’s annual compensation package.

While hiring for MPS or MNS success does require more discipline than mere “gut feel,” it does not have to be some sort of “Weird Science.”

You might remember the 1985 American teen sci-fi/comedy movie, “Weird Science.” Yes, it might be nice to be able to have the ability, as those two teenage nerds did, to fill your computer with data and images that make up the perfect MNS or MPS employee, plug in a doll figure, have lightning strike and end up with the “perfect” virtual employee. While we clearly cannot do that, we can add a little science to our strategy by implementing some processes and relying on proven tools that increase our odds of hiring success.

One tool that our PathShare(SM) HR Services team has developed is a program to document success traits for several key MNS and MPS positions in your dealership. For each of the various positions, we’ve profiled dozens of successful employees, benchmarking each role with an objective assessment. We assessed a variety of personnel in each role and identified the differences for top performing employees. Finally, interviews and job shadows were completed to fully document the results.

We recognize that dealerships are changing and staffing needs to evolve in tandem. Entering into or expanding the MNS/MPS space are significant endeavors, and you can reduce risk by assembling a team of individuals that match the success profiles we’ve identified both for sales and technical positions. You can perform assessments on prospective employees and try to match to these profiles as part of a comprehensive hiring process to increase your chances of success. Efficient and reliable, the assessment tools we use provide an in-depth understanding of performance drivers, management styles, capabilities, potential, interests and motivation. We are also able to gain insight into the effects of job demands and business culture on individual performance.

With the right processes and tools in place, you can gain a much clearer understanding of the motivating drivers of the candidates you interview. Armed with this type of information, you can better understand how an individual will respond to and perform his or her job responsibilities in the months and years to come.

If it’s your goal to assemble and develop a team of motivated, industrious and talented people, it’s critical to rely less on “gut feeling” and put a little science around your hiring process.

Contact Sally Brause at SBrause@greatamerica.com.

Posted on 04/10/20120 comments

Adding a New Revenue Stream With Scan to Cloud

This guest blog was contributed by Gerad Hoyt.

Looking at MPS nowadays is kind of like Darwin at the Galapagos Islands: There’s change going on everywhere, and providers are being squeezed to expand their businesses and evolve. Those who are flexible and can change with the times succeed; those who can’t are dying out. It’s scary but true. Those who are succeeding are using new selling methods and combining these with new, complementary products and services to expand their reach downstream and midmarket. One solution many are turning to is the cloud.

Cloud-based technology is everywhere now. Our email, data storage, CRM – all cloud. Similar to the need for flexibility for MPS providers is the need for flexibility and agility for businesses. The ability to react immediately, update seamlessly and provide what’s needed when it’s needed is huge. As a fighting MPS provider, having a cloud technology offering is truly an advantage over all your competition.

So how exactly can you expand your arsenal to include this without the need to develop extensive new selling methodologies that are radically different from what you’re currently doing? Scan-to-cloud (S2C) services like those that work with Kyocera’s HyPAS Platform or Ricoh’s App2Me may be an option worth considering.

With scan-to-cloud technology, dealers can add a competitive advantage to their offerings. The sales message is an easy add-on for the traditional copier reseller: “Every copier scans to a folder; my copier scans to the cloud. My copier provides your users with universal browser-based access to all your documents. You can access your documents from iPads, tablets, iPhones, smartphones and PCs with a browser.” Scan to cloud offers the opportunity to add a fairly formidable document management solution without the extended sales cycle and with shortened implementation time.

Scan to cloud is a piece in the cloud revolution that is beginning in the MPS market as the proliferation of mobile devices grows and changes the business environment. Don’t believe me? Edge Strategies did a study on the adoption of cloud services by SMBs (here’s the survey) over the next three years and found that a whopping 74 percent intended to use at least one cloud service during that time period. Of those, just over half, or 39 percent of all surveyed, believed they would be using paid cloud service(s).

Source: SMB Cloud Adoption Study, Dec 2010 – Global Report

With the market heading into the cloud, you’d be foolish not to consider adding a cloud solution to your MPS business. Scan to cloud can be your secret weapon for beating the competition and adding a nice recurring revenue stream. Have other value-adds or cloud-based services that you’re using accomplished this? Share what you’re doing to evolve below in the comments.

Contact Gerad at GHoyt@docstar.com

Posted on 04/02/20120 comments

My Toast at VJ’s Retirement Party

This guest blog was contributed by Gary Peterson, president of Gap intelligence. 

*Clink**Clink**Clink**Clink**Clink*

I guess it’s my turn now to say few words about the man we are honoring today, Vyomesh Joshi – but we can call him “VJ”. Fill up your drinks with whatever you like because I lift my toasting glass often and I have a big glass of Sprite right here. First, let’s all raise our glasses to Carli, Robert, Mark, Cathie, Leo, and Meg for paying for all of this. They say that ink costs more than champagne and I am sure that we are going to prove them wrong tonight!

Posted on 03/31/20120 comments

Big Data? It Will Have a Big Impact on Your Business!

This guest blog was contributed by Mike Stramaglio.

While reading an article that talked about all the “things” connected to the Internet, I was astonished to read that there are already more “connected things” on planet Earth than there are people. The article went on to say that there will be more than 50 billion “connected things” on Earth by the year 2020! How will all of these connected things impact our lives and our business?

When you consider the enormity of all of the data captured by 50 billion connected things sharing information through machine-to-machine (M2M) or machine-to-people (M2P) communication, you quickly understand what industry analysts refer to as “information overload.” In my recent blog titled “There’s an App for That,” I talked about this information overload and how IDC predicted that we will see a 50 times increase in data over the next 10 years alone. With all of this valuable data floating around, it can be challenging and onerous to gather intelligent, analytical data that can be used to improve business, especially when you consider that the biggest problem we face with all of this data is that it is typically created by diverse systems that do not talk to each other.

At a recent M2M Consortium meeting in Japan that I was fortunate to give a talk at, speakers from all of the major M2M technology companies were discussing intelligent interconnections between these diverse systems as a way to begin to connect various solutions with bidirectional communications. In fact, every presenter defined the information gathered by these intelligent interconnections as “Big Data.” Big Data is a term applied to data sets whose sizes are beyond the ability of commonly used software tools to capture, manage and process the data within a tolerable elapsed time. Big Data sizes are a constantly moving target currently ranging from a few dozen terabytes to many petabytes or exabytes of data in a single data set. This voluminous amount of unstructured and semistructured data cannot be digested and analyzed by conventional technologies. Creating systems that can analyze and present this Big Data quickly will be a major focus for technology providers over the next decade. In a report by McKinsey Global Institute, it was projected that the Big Data industry in the USA will be worth more than $64 billion and could potentially add more than 1.5 million jobs for workers with the right skill set.

So how is all of this Big Data going to affect our industry? Well, as more “things” get connected, it will dramatically increase our opportunity to manage these new devices and roll them into existing managed services agreements. Going forward, it is imperative that we all understand that the opportunity is not limited to printers or just adding PCs and servers to your managed services practice. Consider that the first Internet experience for the next billion users will not be primarily through a PC. Instead, these users will more than likely first connect to the Web via a mobile device or some other technology with “embedded” systems to provide access to the Internet. A recent IDC report stated that embedded systems will continue to outpace mainstream computer systems and will reach 8.9 billion units shipped by 2015. Pretty staggering numbers, especially when you consider that nearly 98 percent of all computing devices today are embedded already. Everything from cars and service trucks to TVs, buildings, coffee machines, cats, dogs and even cattle are currently connected to the Internet through embedded technology. So get ready to grow your business by adapting, developing capabilities to manage as many of these connected embedded devices as possible, with a focus on offering complete managed services for your customers.

The first key step to gathering and analyzing this mission-critical Big Data is to move to interconnected intelligent systems in every part of your business so that your service business is dynamically tied to your back office, your customer relationship systems, your service fleet and all of the assets that you manage for customers. Secondly, it is just as important that you help your customers move to interconnected intelligent systems as quickly as possible. Once you are intelligently connected internally and with your customers, you’ll be able to use all the mission-critical Big Data created by these intelligent systems to be smarter about how you run your business, to make faster decisions, to increase your productivity and to dramatically increase your competitive advantage.

Contact Mike Stramaglio at mike.stramaglio@mwaintel.com.

Posted on 03/29/20120 comments

Managed Network Services – You’ve Been Dreaming, But Where’s Jeannie?

This guest blog was contributed by Jeff Grong.

For some time, you’ve imagined taking your dealership to the next level. You’ve dreamed of bigger profits and recurring revenue with a successful services model, and you’ve decided to go down the path of partnering to get into managed network services (MNS) to make it all happen. But just because you partner to get into MNS doesn’t mean that your very own Jeannie will show up out of thin air as she did on TV, cross her arms, nod her head and make it all so!

I can 100 percent guarantee that no managed network services provider (MNSP) is employing Barbara Eden. And unfortunately, there is no simple nod or nose wiggle that will get a dealership into a successful managed network services business, but there are some investments a dealership can make to help start and sustain a successful MNS offering.

For the sake of this blog, let’s simplify what’s required of the dealer in order to get into MNS and do it right. I’d say there are three critical areas in which a dealer needs to invest: forming a solid business plan, having a fully dedicated principal and finding the proper sales/technical talent.

Forming a solid business plan:
Make no mistake; this is not just an additional offering to your current products and services. MNS is a new business initiative with very real, strategic decisions that need to be made. In our experience, the most successful dealerships have been the ones that have developed a business plan that helps think through the operational, financial, and sales and marketing requirements. A business plan will help reduce the risks of the unknown, so take the time to develop one.

Having a fully dedicated dealer principal:
It’s quite simple: Without the ownership or dealer principal endorsement and engagement from the start, getting into MNS is more likely to fail. Increase your odds of success by fully involving yourself as the dealer principal in all strategic planning of the MNS initiative. A leader that makes certain everyone understands their roles and executes them properly will help avoid missteps.

Finding the proper sales/technical talent:
Many of our dealers have questions about staffing for their MNS business model. What is their responsibility? Regardless of whom you partner with, your technical staff will need to be trained and equipped to handle any issues that arise on-site. We recommend having a sociable technical resource, often thought of as the VCIO (virtual chief information officer). A technical sales engineer who is comfortable with fixing problems on-site but who is also good in front of customers and can carry out the technology-planning piece will increase the success of your MNS offering.

The second key employee is a dedicated sales resource. Selling managed network services is a different sales process than selling equipment. MNS has a longer sales cycle, and it could easily frustrate your existing sales representatives. This role requires a more consultative, needs-based, relationship salesperson.

While Jeannie may not be nodding her head to make your entrance into managed services instantaneous, there are clearly a few areas that you can develop to make the experience better for you, your MNS partner and your clients.

Posted on 03/14/20120 comments

MPS: The Whole Is Greater Than the Sum of Its Parts

This guest blog was contributed by Dr. David Cameron

Did you see the announcement earlier this week about the industry alliance that leverages the power of end-user and device data through a single integrated database and tool set?

Lead by industry visionary, Doug Johnson, a new industry alliance of Supplies Network, Newfield IT, Preo Software and FM Audit has created a very cool set of capabilities that support an integrated set of MPS tools and process applications, i.e., covering assessment through post-contract business reviews.

I admit, I am biased; based on early looks at the system and from hearing a recent analyst call. At this point it sounds great. Doug believes that it offers, “the next level of MPS capability for the dealer/reseller channel.” It’s worth a look to see if the system can deliver on that lofty promise.

This is similar to the integrated tool set’s by Xerox and others, though it adds the insight of end-user data. I find the idea of an integrated MPS infrastructure platform appealing. The idea of using the device and end-user data together is intriguing. When I first heard about this type of integrated tool set last year, I was intrigued. Actually, I thought, “Duh! Why hadn’t someone done this before.” It made so much sense.

From a channel point of view, it promises to reduce the complexity and cost to build-out an MPS infrastructure, particularly for indirect channel partners. For instance, an IT VAR might consider using this set of integrated MPS tools effectively and quickly extend its services portfolio into the MPS space.

Benefits of the integrated tool set aside, a bottom line question is, can it help shorten the sales cycle, result in a higher close ratio, or help the partner provider greater service value? Case studies demonstrating how the tool set value and economic benefits for channel partners would be a big help, as soon as available.

Ultimately, the question is does it enable the target business or institution to operate more efficiently and economically, accomplish it more quickly and/or at less cost? I like the direction and intent of the system announcement. Also I am impressed by Doug’s vision and promise that the value of this new integrated infrastructure platform may be greater than the sum of its parts.

Great start, Doug and gang! By the way what else do you have planned?

Contact David Cameron at david.cameron@ccg1.net.

Posted on 03/06/20120 comments

2011: Not a Good Year for the Dictator

This guest blog was contributed by Brian Stevenson.

Just over a year ago, the people of Egypt said “enough is enough.” Hosni Mubarek was forced from power and thus began the Arab Spring. Political dictator after political dictator came under fire. For decades, these “leaders” tended to be highly restrictive and controlling, using coercive methods and fear to maintain that hold over their citizens. When the citizens did revolt, the response from these dictators was very interesting. In most cases, they denied there was an issue; they tightened controls, they blamed others, and they ratcheted up the fear knowing that it tends to shut down people’s brains. Essentially, the dictator pushed harder and faster, desperate for confirmation that the solutions of the past would still work today.

Boy, were they wrong!

So, what does this have to do with our industry? Well, I’d suggest the correlation is uncomfortably strong. When you sub in “organizational leader” for “political leader” and add some data around employee satisfaction, it is tempting to believe that an employee uprising may be on the horizon.

The vast majority of employees are not satisfied and feel disconnected from the strategy and direction being set by the CEO. And the CEO does not know how to solve the problems they are facing. So, they are pushing harder and faster, ratcheting up the anxiety, using fear as their primary motivator, and going back to the solutions of the past believing it will successfully lead them into the future. This results in the highly talented employees being pushed to the sidelines or leaving the company.

In the book “Deep Survival: Who lives, Who dies, and Why,” the writer describes the difference in thought patterns and stages an individual goes through when they’re lost in the woods. First, they deny they’re lost. Second, they push harder and faster to identify something that proves they’re not lost. Third, their mental and physical states weaken. Lastly, and only when close to death, they realize they’re lost. However, had they acknowledged the problem and sought new information and a new map, the result would, in most cases, have been different. (Note: If you don’t want to read the book, just watch a couple episodes of “Survivor Man.”)

Let’s face it, managed print services is real, and there is more competition, including high-performance sales reps that have left the comfort of their old company. Lyra estimates that 22 percent of companies are using “some form” of MPS today. So, if your current strategy does not include a successful MPS practice, your addressable market for print/copy/supplies revenue has declined dramatically over the past 5 years … and will continue to decline at an equally rapid rate over the coming 5 years.

Are the trees appearing bigger yet?

During the Arab Spring, we witnessed dictators holding on to the very end and others that recognized that a change needed to occur and got out in time. We saw a similar situation in 2001 in the MPS and broader print industry, with some of those companies being sold while others went bankrupt.

It’s not all bad. We have also seen progressive leaders taking their companies on a new path, often with a completely new strategy (for example OneDoc and PrintStream). They are leveraging new resources and partnerships that are helping them navigate the “lost and found” process. Equally important, they are seeking the knowledge and creativity of their employees and customers. These leaders understand that solutions are built from the bottom up, and those solutions start with their customers.

Not every company will make it out of the woods, but the chance for survival is significantly higher once the leader accepts the world has changed. Leverage all of the options at your disposal and set a new path to see you through 2012 and beyond.

Contact Brian Stevenson at bstevenson@footprintmps.com.

Posted on 02/28/20120 comments

What Is Your TPO? Is It Just MPS?

This guest blog was contributed by Mike Stramaglio.

How long has it been since we all started talking to our customers about the total cost of ownership (TCO) of the equipment we sell? What a compelling way to help customers understand that it’s not just the cost of the equipment they need to consider; they also need to look at the cost of consumables and maintenance as well as the reliability of their devices. What if you apply similar thinking in evaluating your business and your TPO (total profit opportunity) by looking beyond the profit you make by selling devices and solutions to your customers?

Similar to the TCO pitch you give to your customers, you need to assess all aspects of your business with a keen eye on profitability. In last month’s blog, I recommended that you consider the information exchange that your business does outside of your MPS practice and contemplate how you link your service fleet, customer communications, industry knowledge and sales data into an integrated architecture that will empower your business to be more efficient and profitable and will enhance the value of your core product offerings while enabling expansion into new markets and opportunities. Those considerations are key elements in understanding your TPO and understanding that automation of your people, processes and technology will dramatically increase your revenue per customer and drive profitability to your bottom line.

Obviously, one way to increase your TPO is to expand your product offerings beyond MPS and move to more of a managed services focus on solutions you can provide your customers that are not print-related. Some of the key areas outside of the traditional MPS box are security, document management, “green” solutions and IT services.

With a managed services approach to security, you can increase your TPO with solutions that make customer devices, documents and workflows more secure. By the way, security is always in the top three priorities for any savvy corporate IT department. Where do you think MPS falls on that list of priorities? Corporations are also very focused on green initiatives. While it’s always great to do whatever we can to protect the environment, when I talk with CEOs, the green that they are focused on is money. With that in mind, is it any wonder that corporations are focusing on major print/paper reductions by implementing increased use of tablets and other technologies that greatly reduce the need to print? How will that trend impact your business? A great way to increase your TPO, help your customers be green and save green all at the same time is to help customers manage power consumption with solutions that can monitor and reduce usage.

We all know that one way to grow your business is to increase your company’s market share by beating your competition and adding new customers. But what about growing your TPO by increasing your footprint with your current customers? Have you ever considered helping your customers manage all of their connected technologies instead of just their printers? You already have the relationship, and you also have the core competencies required to manage assets. Why not extend your services practice to help them manage PCs, servers and cloud-based solutions? After all, the deeper you get into their business, the tighter the relationship.

Another way to dramatically increase your overall TPO is by fully automating your people, processes and the technologies you use to run your business. With the right automation in place, you can increase the efficiencies of your service techs. By providing them with tools that will allow them to receive direct communications from MFPs, such as alerts, your techs will be able to diagnose problems and take steps to resolve issues before your customer even knows there is a problem. Think of how that could significantly reduce the number of callbacks for your service techs. As you may know, 30 percent of the MFP service problems reported by customers can be resolved by simply turning the device off and restarting it. How many service calls could you avoid if you could restart the device remotely without ever having to roll a truck?

Similarly, what would it mean to your total profit opportunity if you had the ability to automatically drop-ship consumables to your customers by utilizing machine-to-machine technology that lets the MFP order consumables with no human interaction? Would that reduce your inventory either at your customer locations or your warehouse and increase your inventory turns?

With the skyrocketing cost of gas today – and they say it’s only going to get worse – managing your service fleet should be one of your highest priorities. Reducing the miles that you put on your trucks is another way to seriously impact your TPO. By implementing GPS technology with your service fleet, you’ll always be able to dispatch the closest qualified service technician and know exactly where your trucks are at all times. How much would it increase your overall TPO if you simply reduced fuel usage by 5 to 10 percent?

With all of the dramatic changes and increased costs happening in our industry, it’s no longer enough to look at ways to increase profits and revenues through the products and solutions that you sell. It’s now imperative to clearly understand where the hidden costs are in your operation while moving to increase your footprint with your current customer base by stepping outside of the MPS box and focusing on your total profit opportunity!

Contact Mike Stramaglio at mike.stramaglio@mwaintel.com.

Posted on 02/21/20121 comments

Eliminate the Pain of MPS With a Partner

This guest blog was contributed by Jennie Fisher.

There’s a services model sea change going on, and most are either wanting to get there in the future or trying to master it now. While there’s no “easy button” for changing from a hardware-focused business to a service-centric model, there are good reasons to evolve in that direction and better resources today than ever before to make it less painful.

According to our GreatAmerica Annual Dealer Study, 59 percent of respondents have implemented an MPS strategy within their business, up about 7 percent from last year. MPS was also hands down the most highly mentioned “most significant opportunity” for the coming year among our dealer respondents. Of those that have not yet implemented MPS, more than 50 percent of them plan to enter the MPS market within the next year or so. But where will they start? And who will help them get there?

Many in our industry have embraced Photizo’s Expanded Customer Adoption Model. When looking at Photizo’s four stages – 1) control the print environment, 2) optimize it, 3) enhance it and 4) converge other managed services into the equation – you can see that a different mentality is required of dealers to be successful today. Rather than going in and getting that MFP replaced, dealers have to think more holistically about their customer’s business and engage at a more strategic level.

It is also important to consider that in these changing times, businesses must do what they can to protect their market share. Under ideal circumstances when selling MPS, you’d simply go in and refresh a customer’s fleet from the get-go, but with so many other companies calling on your customers (paper companies/toner companies/VARs, etc.), it’s not that simple. It may now make more sense to go in and apply the “land grab” approach before someone else does. But a “land grab” (going in and protecting your relationship with your customer by getting all service and supplies under contract) requires a consultative sell.

Teri Dunn, a sales consultant with Print Management Solutions Group, is a big believer in the Photizo four-stage model and helps dealers sell MPS following a process that matches it. “In my opinion, having had experience in MPS since 1999, the model that should be followed is the Photizo four-stage model. Dealers can no longer subscribe to the vision of going in and refreshing equipment right away. All of the economic factors make starting with that first phase so important. Dealers need to understand the customer’s environment – deeply – so that they can actually manage the print – and then do the right thing for the customer in the refresh and optimization stage.”

But once dealers get a few customers under service and supplies contracts, they face some challenges. The administration piece can be tough to manage. Once they secure multiple accounts with multiple machines, the mounting number details associated with capturing, collecting and billing the clicks can be overwhelming. When I was talking with Dunn recently, she concurred with this observation.

“Dealers don’t always understand the headaches that can be associated with billing and collecting their service and supplies contracts. As they execute through all four stages of the Photizo model, it’s important for them to have a finance partner that can grow with them from the start. … (Dealers need) a program that can grow with a dealer throughout all of the Photizo stages, ” Dunn said.

Outsourcing the things that are not considered their core strength can help dealers get into MPS with fewer frustrations and lower costs. Getting into MPS may not be simple, but it is easier than ever before with the resources now available. From experts in service, customer support, supplies and, of course, leasing, billing and collecting, your MPS success may not be as far away as once thought.

Posted on 02/06/20121 comments

The Wild West of MPS

This guest blog was contributed by Sarah Henderson.

Last week, I traveled to the West Coast to speak on an MPS panel and participate in roundtable discussions at the Lyra Imaging Symposium. The moderator of my first roundtable started with an interesting question: “Do you believe MPS is becoming a commodity?” The topic was a hot potato tossed around among MPS leaders from all facets of the industry. The consensus, though, came down to three points that we could all agree on:

1. True MPS is not a commodity.

2. Price pressure is a reality and will continue.

3. MPS requires a different sales process.

These three points were backed by examples and insights from MPS leaders who continue to implement successful MPS programs, giving considerable weight to the opinions expressed. Before accepting these points as fact, however, it is important to understand the logic behind them.

True MPS is not a commodity

The definition of MPS has been published by the MPSA as “the active management and optimization of document output devices and related business processes.” Not one of us at the table could recite this definition from memory. But even if we could have, it doesn’t matter what we think; the only thing that matters is how providers interpret this and deliver their solutions to the end user. There was a consensus that channels such as the traditional copier dealer channel, IT VAR channel and office products dealer channel often interpret the delivery of these services based on their traditional core competencies or their own bias.

Contrary to what is commonly believed in some circles, true MPS is not an old-school CPC program with lipstick on it. Instead, MPS needs to be about uncovering customer pain points that go beyond an initial cost savings and then bringing added value beyond the initial sale. Providers must realize that just because someone says they are also providing MPS does not mean that there is an apples-to-apples comparison being made. Review SLAs, understand your competitor’s programs, and learn how to differentiate your offering.

Price pressure is a reality and will continue

As the MPS market matures and becomes more saturated with MPS providers, there is and will continue to be someone out there who is willing to place devices under contract with pricing that looks upside down. Just like in the settlement days of the western United States, some MPS providers may view capturing clicks as one large land grab. The idea of capturing clicks under contract to lock out your competition is appealing in theory, but the roundtable agreed that deals with such eroding or even upside down margins do little to offer the dealer the ability to add value beyond supplies fulfillment.

Several of us discussed past scenarios wherein we have advised dealers to simply walk away from unprofitable deals. As painful as that might sound, some providers are simply locking down clicks at no margin, and you shouldn’t lose money competing to get that business. Instead, make a note in your sales software and follow up later to make sure that customer really receives the services they thought their MPS solution would provide. The consensus at our table was that providers should stop focusing on cost savings on the initial sale as the only value proposition for MPS. Instead, look at opportunities to provide fleet optimization, green and sustainability strategies as well as business process improvement through the term of the contract.

MPS requires a different sales process

Regardless of the hardware, software or supplies, the central success factor in MPS comes down to the MPS salesperson being able to adequately present the value proposition in a way that closes the sale. We all agreed that we see the most success with dedicated MPS sales representatives at the dealership level. After you identify this sales resource, that person will need to be trained on a more consultative sales process than they may have historically followed. For instance, MPS sales training should include how to conduct assessments and quarterly reviews. But no matter how talented or trained the sales rep, the MPS providers in all channels need to develop compensation plans that drive behavior that gets results in these types of sales.

Yes, you can teach an old dog new tricks; the proof was all around our table in the form of hardware leaders now offering professional services, software companies birthed from a supplier manufacturer and suppliers building key MPS pricing infrastructure tools to make their dealers more successful.

From the wild west of MPS discussions at the Lyra show, my observations seek to help provide you some additional ammunition to move your program forward with greater success. The process of aligning the culture and business plan of your company to embrace MPS is not an easy one. This roundtable of MPS industry experts was proof that it takes time and dedication from business leadership to move forward.

Contact Sarah Henderson at shenderson@westpointproducts.com.

Posted on 02/01/20121 comments

There’s an App for That

This guest blog was contributed by Mike Stramaglio.

Who would have thought that after all of the change and innovation that the Internet has brought to our lives and businesses, Web browsing would become “old school” or mundane?

In 2011, we saw continued exponential growth in smartphones and the beginning of the era of the tablet – with Apple leading the charge and Android catching up fast. Over the holidays, I was astonished to read that more than 700,000 Android devices are activated each day, and 3.7 million Androids were activated over Christmas weekend alone!

With all of this device growth and the excitement over the next cool “app,” software development has shifted away from creating a great Web presence to creating apps; and this change point will affect our lives for many years to come. Just think of how things have changed already. No longer do you need a desktop computer to access the Web; instead, you can use your phone, your tablet, your e-reader, your laptop, your netbook, and even your car to get pertinent, on-demand information instantly. Apps allow users to get specific information on a specific device without the need to browse or search. Apple’s tagline “There’s an App for that” really says it all.

Where’s all of this going, and how will affect our industry? Well, most of us already have a persona in the cloud so that no matter which device you happen to be using, you’re already synced up with your files, music, videos, pictures, email, calendar and contacts. How convenient is that? Imagine what it will mean when the machines that we work with every day – printers, scanners, and MFPs – also have a persona in the cloud? Well, it’s already happening. When you think about machine to machine (M2M) or machine to people (M2P) technology, it’s simply leveraging the cloud and the smart devices to automatically communicate pertinent information instantly. No longer does a technician need to go onsite to diagnose a problem; instead, they can communicate with the machine directly to troubleshoot, pull the history or check the status and then, if need be, make a “smart” service call with all of the right tools and parts.

The challenge is that with all of this smart communication going on between machines and people, there is way too much information to consume. In fact there is clearly an information overload today, and it’s not going to stop anytime soon. In a study titled “Extracting Value from Chaos,” IDC predicts we will see a 50-times increase in the world’s data in the next 10 years leading to even greater information overload. In 2011 alone, they reported that 1.8 zettabytes (or 1.8 trillion gigabytes) of data was created. This is the equivalent to every U.S. citizen writing three tweets per minute for 26,976 years! This is where smart applications come in.

An app typically helps users and devices to slice and dice all of the available information and deliver precise data that is pertinent to the user or device in a particular situation. Consider the apps you use every day and how they divide all of the information that you have access to and only deliver what you want, when you want it. Whether it’s your Facebook, banking or navigation app, each one browses the Web for you, and delivers only the information that you want/need.

So, as we look to grow our businesses and make them more efficient and profitable, we need to consider where we are applying apps and how they manage information effectively in an integrated architecture. For example, most of our industry considers MPS to be an integrated printing architecture, when in fact, it’s just an app. An effective integrated architecture for our industry needs to encompass a lot more than just MPS alone. Think of all of the information exchange that your business does outside of your MPS practice. How do you integrate your service fleet, customer communications, industry knowledge and sales data into an integrated architecture that will empower your business to be more efficient, profitable and enhance the value of your core product offerings while enabling expansion into new markets and opportunities?


Simply said… there needs to be an app for that.

Contact Mike Stramaglio at mike.stramaglio@mwaintel.com.

Posted on 01/17/20121 comments

Color Compatibles’ Profit Pool: Time to Jump In?

This guest blog was contributed by Dr. David Cameron.

Toner compatibles have always been a risky proposition. The potential of a substantial profit contribution increase, typically in the range of 40 to 50 percent per cartridge, has driven both the independent resellers’ willingness to use the compatibles and the aftermarket industry’s quality and reliability improvements. In recent years, the quality of monochrome compatibles (from reputable sources) has stabilized, and their acceptance in the market has likewise grown.

However, the adoption of color compatibles has lagged, given the rise in use of color in the office. Aftermarket color represents another large source of potential profit to the independent reseller, and there is a large potential profit pool that, if successfully tapped with low risk, can further increase the profit contribution from supplies. This is of significant interest to independents and aftermarket manufacturers alike.

Currently, color compatibles are slowly moving into the mainstream. I continue to hear mixed feedback from resellers: “We used compatibles in new HP MFPs but received several customer complaints in the first week,” and “We have had return rates as high as 15 to 20 percent (for color compatibles).” Stories of failure, customer frustration and other negative impacts amount to market noise that has slowed the adoption of color compatibles. We used to call this the “FUD” effect, or the negative impact of market fear, uncertainty and doubt that slows market acceptance.

The other side of the market equation is the supply side. The aftermarket supplier that can consistently produce a reliable product and cut through the “FUD” with a clear and unequivocally strong message has huge profit to gain as well.

The rising use of color in the office (estimated at more than 20 percent and growing) fuels the interest in finding a reliable source of color compatibles. At roughly 25 percent color usage, the potential profit impact of compatibles is equivalent to that of monochrome toner. There are signs that the quality of aftermarket supplies is improving; however, convincing evidence is lacking. Color compatibles are at a crossroads with regard to market acceptance.

The question is, “Are color compatibles ready for prime time?” We would like to hear your experience in using them and which sources have proven to be the most reliable. Your input will play into a research project currently under way, supported by The Imaging Channel, to assess the potential risk/reward. Let us hear from you.

Posted on 01/09/20120 comments