One more way to save during the downturn Quocirca's Straight Talking: Think print

Another insightful article from Louella Fernandes .

Looking to cut IT costs? Quocirca's Louella Fernandes says managed print services can bring savings to many organisations.

The tough economic climate has led businesses to tighten their belts, and as a significant cost centre, IT is often the focus for cost reduction measures. Many organisations have frozen new capital expenditure and are looking to make much better use of their existing assets.

However, since IT is a critical part of today's business, driving innovation and productivity, any reduction in IT spending needs to be carefully considered. Strategic investments combined with flexible financing and delivery options can help businesses achieve rapid cost reductions in the downturn. As previous downturns have illustrated, such actions can help organisations emerge much stronger and competitive when the recovery comes.

One area where significant cost reductions can be made is in printing. For many organisations printing costs are uncontrolled due to the fragmented purchasing of devices and consumables across departments and locations.

There are some simple measures businesses can take to lower print costs. Switching to duplex printing on supported devices, for instance, can make an immediate impact on paper usage.

Even more saving can be realised by fully leveraging the functionality of a multifunction printer - in particular, document capture and workflow capabilities. When combined with 'follow me' printing - whereby documents are printed only once a user authenticates the job at the device using an authentication code, proximity card or smart card - wasteful printing can be eliminated, increasing efficiencies and reducing the costs associated with excessive paper consumption.

Meanwhile, these days many businesses are sweating their assets and delaying hardware upgrades. This is a viable approach for printers whose lifetime can go beyond the three- or five-year depreciation cycle, which is often more an accounting issue than a matter of reliability.

However, replacing outdated inefficient devices with higher performance and energy efficient MFPs should not be ruled out completely, particularly for business critical applications. Indeed by not upgrading outdated devices, the downtime and inefficiency will eventually cost businesses far more than the replacement of older equipment.

Though many businesses rely on printing, they do not have the tools, expertise or resources to fully understand the total cost of ownership of their printer fleet. This lack of visibility can be a huge drain on costs. One way to mitigate this is to use managed print services (MPS). MPS can offer cost reduction along with improved efficiencies in the short and long term.
Optimising the print environment can also have a significant impact on costs...

MPS entails the assessment of current print costs, optimisation of the printer fleet through consolidation of devices and continuous management of the print environment. It can also provide organisations with access to skills current IT employees do not have, especially where staff cuts may be forcing workers to do more work with fewer resources. MPS can benefit large enterprises as well as small and medium businesses.

Most printer and copier vendors offer some form of MPS, either as a fully outsourced service or as a more modular set of services, which enables a business to retain some control of its print environment if it so wishes.

MPS can certainly be a wise investment in a recession, where the focus is often on short-term cost reductions.

These services can provide organisations with visibility into their print costs very quickly through the use of discovery and remote monitoring tools which can provide insight into what is being printed, where and by whom. In the long term, optimising the print environment can also have a significant impact on costs, particularly through device consolidation.

Businesses may be operating a ratio of one device to five employees or even less - best practices suggest that device consolidation is considered whenever an organisation's user-to-device ratio falls below 10:1 to avoid excessive expenditures associated with equipment redundancy.

This has implications for IT support, the purchasing and storage of consumables and the use of office space. Transforming the print environment by reducing the number of devices can also reduce energy consumption significantly, providing another cost saving.

With the increased focus on reducing capital expenditure, MPS also provides an alternative approach to the traditional model of purchasing printing. The current budget pressures mean many businesses have to rethink how IT purchases are financed and delivered - and some are moving from classic upfront capital expenditure to operating expense-based equipment leases. These pay-as-you-go models can make a lot of sense for the print environment.

MPS can offer predictable monthly payments based on cost-per-page contracts which cover hardware, supplies and pre-emptive service. This is certainly more attractive than the traditional ad-hoc and unplanned purchasing of supplies, and the downtime associated with device failure.

The print environment may not be the obvious choice to invest in during a downturn but those organisation who don't take steps to measure the cost of the printing are leaving themselves open to further escalating costs.

A leading user-facing analyst house known for its focus on the big picture, Quocirca is made up of a team of experts in technology and its business implications. The team includes Clive Longbottom, Bob Tarzey, Rob Bamforth, Louella Fernandes, Fran Howarth and Simon Perry. Their series of columns for silicon.com seeks to demystify the latest jargon and business thinking. For a full summary of the consultancy's activities, see www.quocirca.com.

HP, Xerox, Ricoh and Dell: Something Wicked This Way Comes

Remote Monitoring Ricoh announced it a few weeks ago... Managed Service Providers are wondering when HP will make it so... Xerox has been writing to open APIs... Dell has been running a pilot program for months... What gives and why should we care?

HP Going after a Piece of The Handout - Obama Stimulus Package for Health Care

HP is focusing in on the Health Care vertical with new programs for VAR's.

Obama's recently passed stimulus package includes $20 million for health-care infrastructure.

"We will make sure that every doctor's office and hospital in this country is using cutting-edge technology and electronic medical records so that we can cut red tape, prevent medical mistakes and help save billions of dollars each year," Obama said.

HP has also launched a new channel program to help its resellers grab a slice of the pie as well by creating a new business document management program for the health-care vertical.

The package is composed of HP hardware and software and is some cases carries its own SKU.

HP's new hardware is integrated with Singapore-based Aquarius Soft's ChartTab Medical Document software. ChartTab capabilities include adding patients and documents through a touch interface and securing charts to meet HIPAA requirements for private health information. In addition to scanning, records can also be e-mailed, faxed and printed.

"We're also approaching more traditional VARs who haven't made the jump into document management solutions yet," Brown said.

Learn more here.
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DOTC impressions - I have been through the basic training and introduction of this program/product. This solution is turn key and easy to use. The target market is small to medium, independent medical offices.

IBM Buys HP. Canon takes Panasonic

In an unbelievable step today, two of the largest technology companies swallowed up one of their peers - not since the Ricoh/IKON deal has the industry been shaken so deeply.

Tokyo, Japan -

In a press release today, Canon announced the purchase of Panasonic, "...today, Canon moves forward boldly. Today, we shall incorporate color-coded machines. As the speed of each machine increase, the color will change from dark blue to vibrant red..."

Armonk, New York -

In related news, IBM today announced it's intentions to purchase HP. "...today, IBM begins it's quest to retake the printer market...also, we are proud to announce OS/2v2009, our newest and greatest operating system for the desktop..."

Outside of both press conferences, sightings of dozens of pigs flying were reported.

Happy April 1st.

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Selling: It Really is Simple

For over a year now, maybe longer, I have been following this small sales training firm, Caskey, in Indianapolis. Bill Caskey and Brian Neal present great stuff and I encourage everyone in sales to subscribe to their "Advanced Selling Podcast".

Check out "High Intent" and "Detachment" two of my favorites.

I have copied and re-posted a pretty good post - enjoy.


Complicated Strategy Not As Good As Simple Sales Advice

by Bill Caskey on March 30, 2009

As sales trainers, we get invited in to companies to help them solve some pretty complex issues. Yet, often, the answer to their sales frustration is quite simple.

I was watching the Michigan State ‘upset’ of Louisville last weekend. The camera / mic caught a frustrated Rick Pitino (Louisville head coach) as he was watching his team implode.

Despite all the complicated game plans and strategies I’m sure he implemented, his admonition to his players at that point in the game was, “Stop dribbling. Pass the ball!!!”

As an avid basketball observer that is one of the things that drives me crazy–a player dribbling but going nowhere.
Sales Is Simple Too, If We Let It Be

But in sales and sales training, the admonition we have for our clients gets very simple, too. Here are three instructions I would shout if they had their head phones in during a sales call.

1. Shut up and listen. Stop talking. Stop pontificating. Stop sharing all of your wonderful opinions of how great your service is. (OF COURSE YOU THINK IT’S GREAT–YOU’RE SELLING IT!)

2. Ask a follow-up question. Amazing too me how few questions sales people ask and how even more rarely they ask a follow up question after the prospect has answered the first. Think about how absurd it is for someone to answer a complex question and give you ALL of the relevant information on the first try.

3. Give some space. After someone answers a question, give it some space. Don’t jump right in and think you have to talk. This is an in-law to Shut up and Listen, but a little different in that it’s about “giving space.” In fact, that’s what our entire philosophy is built on ’space for the prospect to sell you on why he needs you.’ As long as you’re talking, you’re taking up space–not making it available for your prospect.

So, keep things simple–never as complex as they need be. And watch your sales effectiveness jump a notch or two.

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Why Now Is The Right Time for a Managed Print Services Association

Reprint of a good article by Ed Crowley.

Ed Crowley, CEO of the Photizo Group, Thought Leaders in Managed Print Services (MPS)

During the 2009 MPS Conference in San Antonio Texas, a formation meeting will be held for the Managed Print Services Association (MPSA). Forming an association is always a challenging, and somewhat daunting task. So why, in the midst of the current economic climate when we have so many other daunting business challenges, should we, as an industry, care about starting the MPSA?

I believe there are several good reasons for starting the MPSA. First, and foremost, our industry is in the midst of a growth explosion and the current economic environment is actually accelerating that growth. In the midst of layoffs, cost cutting, and increased environmental awareness, MPS offers customers the opportunity to reduce costs, reduce burdens on overtaxed IT personnel, and have a positive environmental impact with little to no upfront investment. At the same time, it provides MPS capable vendors with a compelling customer offering, which in return can help them retain their revenue base in the face of increasing competition and increasingly commoditized technology. This is a classic ‘win win’ scenario.
As any market grows the need for standards, development of best practices and credentialing also grows dramatically. The same is true for the MPS market. This is a market with multiple stakeholders including resellers / dealers, manufacturers, the end user community, software developers, consultants, and trainers. Each of these stakeholders will want, and has a right to have a say in the development of these standards, best practices, and credentialing.

One question that may be asked is why doesn’t another group (such as the Business Technology Association or COMPTIA) form an MPS Association. While this could be possible, I believe most of these groups have an existing constituency with their own set of pre-existing motivations, member preferences, and requirements. The MPS industry is unique in that it draws from a very broad base across the technology, reseller, and end user community. As such, I believe it would benefit from the formation of a new organization which does not have an existing charter or direction.

Already, we have been approached by the Printer Work Group (an IEEE group) regarding their interest in collaborating with the MPSA to define standards around MPS. At the same time, COMPTIA, an IT technology association has approached the group about collaboration in developing certification standards. This clearly validates the need for an association. However, from my perspective, the fact that no existing organization has taken the initiative to start this association is one more solid justification for forming a new association.

So what will happen in San Antonio? During this meeting I expect that we will have a discussion regarding the groups objectives, membership requirements, and form some committees to begin working on specific topics. This is certainly a unique opportunity to engage with many leaders in the industry and to have a voice in the formation of this group. Of course, the level of participation at the meeting will also be an indicator of the industry’s interest level and willingness to support this group. So I hope you are able to participate directly in forming the MPSA in April. If you are not able to attend in person, I do encourage you to submit your comments through this blog or through the MPS group on LinkedIn (aptly called “Managed Print Services”).

So please join us, in person, or through your electronic contributions, in the birth of a new and exciting association.
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Managed Print Services and IT Services Providers

I have been trying to get my head around this for the last 90 days - Why has it been challenging for some firms to engage and succeed at providing MPS?

Why are dealers trashing their young, MPS Practice?

"Struggling" as a description is too harsh, I think the current MPS situation falls more into the "growing pains" stage.

The opportunity is real.

And there is an awful lot of activity focused on those (dealers) who are at least interested in going for MPS.

From a 10,000 foot view, you can see this in the way the "MPS Experts" are scurrying out of the woodwork - about 3 times as many as there were when the Photizo Group started.

From the trenches, I see the hurdles, see the problems and I understand the challenges - there are basically two(today).

Selling and Buying.

Selling -

For me, it is becoming clear, again, that it is all about the Sale and selling - Selling cures everything.

If you want your manager off your back, sell something. Want a new car, sell something; a trip to Florida and Disney World, sell something.

If you want to penetrate the new MPS niche, sell something - and this is the rub. As we all know, MPS needs to sell to facilities, IT, end users, and C-levels.

These three buying influences have their unique decision-making criteria and process - they speak their own language.

Salespeople who address these levels address the unique issues contained at each level and find it a challenge to switch from one to the other. Facilities works with contracts and CPC; IT with network compatibility and ease of support.

Providers/sellers of good MPS programs consist of either copier/print salespeople, supplies/service vendors, or IT providers. These three sales models are all very different.

For instance, the IT provider is very good at pricing and delivery.

The selling process within most IT companies are supported by inside "account managers" and outside Business Development Managers(BDMs). The BDM's "maintain the customer relationship" as the account managers handle the quoting, and order processing on a day-to-day basis.

The BDMs are not hunters. The BDMs have had it gravy for a while. They zero in on the purchasing agents, try to placate or impress the IT managers and sell on price alone. Deal registration and back-end rebates are just a means to sell products at 3 points.

Three POINTS.

If a BDM sells a deal at 10 points or above - he gets a ticker-tape parade around the office.

I sincerely doubt any BDM with an IT service provider today even knows who the heck Glengarry Glenn Ross is, yet owns all of the Lord of the Rings movies. (not there is anything wrong with that)

A typical talk track of a BDM selling into their space may go something like this:

"Do you have an IT purchaser? Who is that?...you know, if I register you with CISCO, I can get you the lowest pricing available...Cost Per Copy? huh?...oh you mean printers, yes we can sell printers..."

I have seen this with my own eyes.

Almost as tragic is the Copier guy trying to sell to the IT influence. A typical talk track for the copier Sales Executive selling into the IT space -

"...all my machines connect to your network just like your HPs...Security? Sure, we can have your users log on to our machines using their already familiar network credentials...no, well actually, yes, we can service your HPs, until we consolidate your fleet into Ricoh...let me have you talk to my EDM specialist..."

I have seen this with my own eyes.

The second challenge I see is "Buying"-

Not a customer buying your product or services, but your executive management/ownership buy-in.

Again, there is no secret here either. Change is scary and equates to risk. The risk is bad today. We hear it from the highest office in the nation, the talking heads on cable, and the man in the street.

Unlike ownership, I have complete and total trust that good selling professionals can morph into Hybrid Selling Professionals.

These doubts I harbor revolve around the antiquated, equipment-centric, 30-day cycle, transactional views of some dealership owners - On both the IT and Copier side.

But - today, that is to say within the last 30 days or so, I have seen the excitement swirling around MPS drive more and more dealers from the "interested" stage into the "implementation" stage.

Also, I.T. departments seem to be willing to appoint people who talk Managed Print Services more than they are with the technology sales executive discussing data storage, blades, etc.

It looks like "Supply" may actually need to catch up with "Demand" - not a bad place to be.

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