Happy Fourth!

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Konica Minolta - The Next IKON

Know thy self-

Today, Konica sells boxes, and they do it very well... yet their portfolio of EDM is growing and the phrase, "Konica Managed Print Services" is starting to hit the streets.

Konica/Synnex/PrintSolve -

One company, a copier company, can offer clients total print management. Konica reps can first place copiers, gaining credibility and determining their client's internal decision processes. Once this is done, in addition to gaining more "share of wallet" by adding new machines, the Managed Print Services angle can increase profits, account control and establish Konica as a partner intent on helping the client reduce costs.

From the Konica Minolta website, " Konica Minolta, together with SYNNEX Corporation, offers your business a way to enjoy precise control of printing costs, the latest in printing technology, better workplace efficiences, and improved total cost of ownership."

The Managed Print Services selling process may go like this:

1. Establish relationship with Purchasing/Facilities by selling Konica copiers.
2. Build upon the initial relationship by offering up a "free" print analysis.
3. Run PrintSolve's USB audit tool to obtain monthly average volumes.
4. Send inventory report to Synnex
5. Synnex determines which devices to support, the number of toner cartridges, maintenance kits, etc. required for the total volume of the MPS agreement, generating a total cost.
6. Synnex gives Konica the cost per copy, who in turn adds a margin and proposes to client.

The client signs agreement with Konica Minolta. The program is a cost per copy which includes all supplies and service for the life of the agreement. The customer calls Konica- or may even call Synnex directly for service and supplies - dependent on how Konica works with Synnex.

Now the above scenario may not result in a Managed Print Services Agreement as I define it, but in a Managed Print Supplies Services Agreement - I am not sure who would provide the actual service or maintenance work.

But wait - there's more.

If we look at Konica's EDM portfolio you will see companies like Captaris, E-Copy, Planet Press, and Digital Storefront. Now look at IKON's portfolio and you will find, Captaris, E-Copy, EFI, Westbrook, EMC, etc. IKON's portfolio is more robust. But Konica Minolta is growing and adding staff - IKON is not.

The bottom line here is K/M is growing into the services space at a controlled and managed rate - with what appears to be a plan. True, "full blown" Managed Print Services should include Electronic Document Management Solutions as well and the company that can articulate the value and support a multi-faceted, longterm, combined MPS/EDM strategy will elevate beyond the box and truly help clients save money.

If we apply the Photizo Group's "Three Stages of MPS Adaption" EDM is within the 3rd stage of the three stage process and if correctly marketed and implemented, Konica Minolta could position itself as the "Go To" MPS/Copier provider.

Watch Konica Minolta.

SideBar:

Synnex and Kyocera, Konica Minolta, Edgeline: Konica is not the first to position Managed Print Services through distribution -

Kyocera - October, 2007

"The Fairfield, N.J.-based vendor said it was teaming up with Synnex, Fremont, Calif., to combine its EcoPro lineup of printers with Synnex' Printsolv managed services offering -- an offering that provides assessment, tracking and management functions that solution providers can deploy in print MSP deployments.

In jumping into the space, Kyocera Mita executives are hoping the company can broadly expand its channel footprint beyond its direct sales, office products channel and retail, as well as change its business model to cost-per-page from hardware and supply sales."

70 Years of Xerography -

I caught this article from The Sunday Times by Benjamin G. Defensor

- "A few weeks back, the Xerox process celebrated its 70th anniversary at the Drupa 2008..."

The author summarizes Xerox copier history fairly well.

E-Automate and PrintAudit

Most copier dealers know e-automate but what about PrintAudit?

Nice post here about the integration of these two tools.

A Week In The Life of Managed Print Services

June 2008.

One thousand miles and so far, yet to go.

Day One Victorville, California

Pre-Proposal Meeting - To review an RFQ for a small (30) fleet of copiers. Imagine if you can, a room full of copier people, all of them competitors asking questions relating to an RFQ. I sat in the back of the room and bit my tongue so many times I still talk with a lisp.

I swear, the copier guys still don't get it - but unfortunately, I don't think the prospective client gets it either - so it could be a match made in heaven for someone other than me. No worries.

Day Two - Santa Barbara, California - Initial Client meeting and printer fleet survey -

Ok, this is the "eat your heart out" part.

The drive to this client takes me past the Rose Bowl - yeah, the one you see around New Year's Day when Michigan comes out here and loses. Seeing the stadium always kindles something inside me - I remember watching the Rose Bowl on TV in Michigan looking at the sun and the short sleeves and shots of the bright, warm beach. Then looking out my window at the cold, post-x-mas, snow. LOL!

And then I remember the drives into Detroit or Flint in February - these cold, delayed stress-inducing visions are scattered as the turn in the road reveals the shimmering sunlight dancing off the Pacific Ocean! (yeah, that the Pacific Ocean).

Up the PCH to talk about Managed Print Services. 

The meeting is with all the right people - C-Level, facilities, operations.

During the meeting, I was instructed to "just inventory the fleet, so I can get a handle on what we've got here". Simple.

Same Day - Onward to Diamond Bar

Stopped in to review an Edgeline install. The client is 'stuck in a lease for a Konica - the Konica has never performed to spec, and for the last few months, prints with a "pinkish hue". Unfortunately, most of the reports printed are customer-facing documents reflecting important and revenue-generating information.

The lease has around 20 months on it still and of course, there is no easy way out. So the client is taking the Edgeline and moving the Konica off to the side as a backup that will act as a reminder to never do business with a copier dealer again...delicious.

Day Three - Imperial/El Centro, California. Four miles from the Mexican border.

Driving past the Windmills - you've seen them on MI:3 and many other movies and to the 86. The highway winds through the desert next to the Salton Sea. Point of fact, the Salton Sea was formed by accident; I have never seen swimmers in or boats on the Salton Sea.

I am currently engaged in a study of approximately 30 machines. This is a Mini-Assessment - a partial look at a subset of 400 copiers and nearly 100 single-purpose laser units. At the first look, we may be able to save 10's of thousands of dollars the first month after initiating a program.

Day Four - 210-bed Hospital - Mini Assessment

Meeting with IT director to interview and survey two departments. We end up looking at 4-5 departments and discussing strategy - the appointment takes 3 hours. Interviews with nurses uncover volumes of issues some out of scope but influential on the overall possible Managed Print Services project.

Primary findings indicate an "over-exuberance of selling prowess" in the last copier salesperson's delivery. The current fleet is over spec'd and underutilized - and machines are just too big(physically).

Same Day - The Hurd Meeting
After spending time at a local Starbucks sending emails and making phone calls, I head out to Hollywood(yes, that Hollywood) to meet a colleague before he meets with Mark Hurd and one of my clients.

We decide to meet at the Beverly Hills Hotel(yes...the hotel that inspired the Eagles', Hotel California) in the bar, The Polo Lounge.

Point of Fact: The Beverly Hills Hotel was built before the city and the city was named after the hotel. The hotel is nestled in a residential area and is the heart of the city.

The Polo Lounge is world-famous - with celebs sipping Martini's almost daily. It's four o'clock in the afternoon - ordering a Martini I ask the bartender to "surprise me" - she delivers the best adult beverage I have had to date - I have no idea what is in it. Prior to walking in, I had never heard of the Polo Lounge - I am such a cad.

My colleague walks in and promptly orders water - oh 0h - I tell him, "don't feel uncomfortable with me drinking a Martini", he responds, "Please don't feel uncomfortable with me ordering water." we laugh and get down to business. We are reviewing the RFQ from our meeting four days ago.

Same Day – After 5

My client’s meeting with Hurd is concluded and as a special treat, one of my peers has invited a select group to accompany him and our client to the Magic Castle. I had heard of this establishment before – lots of magic, exclusive, club members only, great food, and libation.

But before we meet for dinner, my peer inflicts upon our small convoy “Mr. Toad’s Wild Ride” through the Hollywood hills (Bob Seger). Just when I think all is lost, we pull off into one of those “scenic” view spots. We scramble out, jog up a few steps, and BAM! The view is of the complete L.A. basin.

Starting on the left and rotating clock-wise we first see the Hollywood sign, then Madona’s old house,  Griffith Observatory recently seen in Transformers, the L.A. skyline dominated by The US Bank Tower they blew up in Independence Day, the Capitol Records building that was destroyed by tornadoes in The Day After and over to Century City and Santa Monica the areas destroyed in the movie Volcano.

And now - to the Castle. The dinner was great, the entertainment was world-class and business was discussed – a good time was had by all.

and with that...another week in the life fades to black...Ho Hum…

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IKON and Accenture, Ltd - Huh?

Everyone is waiting for the other shoe to drop. Canon looks to be the most lik ely - according to rumor - but why would a investment adviser like Revere sell a report titled, Merger and Acquisition Scenario Accenture Ltd. (ACN) and IKON Office Solutions, Inc. (IKN)


Well the site says, "... Revere Data's Merger & Acquisition Scenario Report offers independent, objective and insightful analysis into a hypothetical combination of..."

Perhaps this is just an excersise of some sort...

MWB, Sharp, Global, Xerox - can we fit a customer into this phone booth too?

To say the copier industry is in a "Dynamic" stage is being kind.



This press release is intended to be informational as well as promotional - but...is it?

From the release, "....MWB Business Systems, a regional core company of Global Imaging Systems, serves the southern California market from six offices in key metropolitan locations. Global companies sell and service document management systems such as printers, copiers and multifunction devices; network integration services; and electronic presentation systems. MWB and the other Global office technology dealers sell products from various suppliers including Xerox and Sharp. Xerox acquired Global Imaging in 2007 and operates it as a wholly owned subsidiary within Xerox's North American operations.

Sharp Imaging and Information Company of America, a division of Sharp Electronics Corporation, based in Mahwah, N.J., markets the advanced, color MX Series multifunctional peripheral (MFP) systems that help companies manage workflow efficiently and increase productivity..."

"...Nurse, I need a napkin, a blue pen, a black pen, and a red pen - and boil some water STAT! I need to explain this to my prospect -..." You can not make this stuff up!

"Tis the season" - for Sharp renewals-

Seems it's all over the place, and these dealers must be reading from the same "talking points", from The Earth Times -

Berney, Sharp Renew Sales Partnership for 5 Years -

MONTGOMERY, Ala. - (Business Wire) Berney Office Solutions, a wholly owned subsidiary of Xerox Corporation (NYSE: XRX), and Sharp Imaging and Information Company of America announced a new five-year purchasing contract...

Berney Office Solutions, a regional core company of Global Imaging Systems, focuses on small and mid-size businesses throughout Alabama and western Georgia from seven offices in key metropolitan locations. Global companies sell and service document management systems such as printers, copiers and multifunction devices; network integration services; and electronic presentation systems. Berney and the other Global office technology dealers sell products from various suppliers including Xerox and Sharp. Xerox acquired Global Imaging in 2007 and operates it as a wholly owned subsidiary within Xerox’s North American operations..."

----

My point?

First, how in the heck do you spin this as a positive to your client? If I were selling against this, the XEROX model of FUD would be applied generously.

Second, the few remaining copier dealers remind me of the T-Rex's ignoring the approaching ELE.