At Konica Minolta’s High Velocity Summit in Chicago last month, there was a focus on how dealerships can continue to grow their businesses. Along with production and industrial print and driving DX with Intelligent Information Management, there was also a dedicated session around embracing security solutions, led by two of KM’s experts in the space – Cody Walton, Director of Digital Transformation and Tiffany Reilly, Director of Product Operations.
A revenue-driving opportunity
Security is another area where dealerships can drive significant revenue growth. Many don’t think of the printer as a security concern, however, printer-related breaches represent an enormous risk in your customers’ environment. According to Walton and Reilly, 61% of companies had experienced at least one such breach. This massive vulnerability makes security a key selling point and a major differentiator that can set dealerships apart from the competition.
During the presentation, Walton and Reilly highlighted KM’s portfolio of cybersecurity solutions and how they underpin KM’s five-layer security strategy (basic security, access control, document security, auditing, centralized security management).
They also discussed the massive opportunity that it represents. Let’s take a look at a few examples:
- bizhub Secure helps dealers harden devices with encryption, data overwrite, and administrative password changes. According to KM, the solution is highly profitable (100% gross profit!), with an 80% attach rate on devices.
- bizhub Secure Notifier providers real-time notifications of the security status of devices. The strategy here involves charging customers a monthly fee for security monitoring services. Dealerships can add this fee to the maintenance and support contract, creating a new stream of recurring revenue without having to sell additional hardware. For example, dealerships could charge $10 per device per month for security monitoring, which can add up to substantial revenue over time.
KM encourages its dealers to position security solutions like bizhub Secure as standard offerings and to bundle security services with their existing maintenance and support contracts. Instead of listing the security monitoring service on the sales order or lease contract, dealerships can integrate it into the maintenance contract. This approach ensures that the service is seen as part of the overall maintenance package rather than an additional cost, making it easier to justify the expense to customers. This strategy involves making the security package an integral part of the sale, where the customer has to opt out if they don’t want it. This creates a situation where customers are more likely to accept the security features, thereby driving revenue through increased sales of these solutions.
Growth is going to come from pulling multiple levers, in varying rotations and speeds. New ways to bundle security solutions can be a critical component in the effort. There is a lot of research available showing the aggressive increase in spend companies are budgeting for security solutions. Discovering new ways for dealers to package these solutions into existing contracts, thereby easing the burden on the sales teams, can serve as a very powerful lever indeed.
Patricia Ames
Patricia Ames is president and senior analyst for BPO Media, which publishes The Imaging Channel and Workflow magazines. As a market analyst and industry consultant, Ames has worked for prominent consulting firms including KPMG and has more than 15 years experience in the imaging industry covering technology and business sectors. Ames has lived and worked in the United States, Southeast Asia and Europe and enjoys being a part of a global industry and community.
