A Year Ago Was The Right Time For Managed Print Services

Where is the Managed Print Services niche, today, August 2009? ------ I just read an interesting comment on LinkedIn regarding the lack of "buzz" around the MPS Summit from the recent ReCharger show. Bob Chernisky was asking aloud, "Did anyone attend? Did no one say anything worthwhile? Was the juxtaposition of MPS with toner remanufacturing a mistake? Are most of the prime-movers of the industry turned off by that association (too low-tech for us)?" I know people attended, but I did not. I do not think the juxtaposition is a mistake. And if the "prime-movers or any movers, think the toner guys are too low-tech, so what? 

To speak directly about the Re-Chargers, I think they should worry as business paradigms shift to MPS. I also think that this shift could be a great opportunity for the bold. For the forward-thinking companies who are willing to remake their current business model. The reman's can be a component of a good MPS practice; one of the team. Right now, there aren't as many devices hitting the streets. These older machines, the ones finding a spot on new, MPS engagements, will need toner and parts. And entering this niche may give them a better talk track than the current "we're cheaper and we're Green..." But back to Bob's questions, where is all the buzz? 

Come to think of it, the last few weeks have been a bit quiet. Especially considering all of the announcements - the big HP guarantee, PagePack 3.0, Okidata Managed Print, the MPSA national elections. ;-) The recent Gartner data showing combined copier and MFP sales fell 30% over the past year should be center stage and all the buzz - but if I read one more post, article, or Tweet about the Magic Quadrant, I am going to upchuck. 

 Maybe it's just that people don't want to talk about bad news. Well, boo-frickin-who - where there is turmoil, chaos, and fear, there is opportunity. The Bad News: Lai-Ling Lam, senior research analyst at Gartner said this,

"The market witnessed a weak demand as both businesses and consumers reduced spending and the drop in shipments was also impacted by tighter inventory controls in order to minimize inventory levels in the channels.."

Dire news to be sure, and nothing terribly new for any of us selling in the office B2B. Unfortunately, it's worse than we think; it usually is... Our bread and butter, office printing devices, showed a 24.5 percent decrease in the first half of 2009.

"...businesses are delaying or eliminating purchases of new equipment altogether. The global downturn has also forced them to review their printing needs which could change their print consumption in the long term. At the same time, it also makes print vendors increasingly look at alternative hardware strategies such as managed print service (MPS) and smart MFP adoption as ways to increase revenue..." added Lam.

We in the MPS world, recognize this 30% avalanche as a huge opportunity - a huge MPS opportunity. I understand where Ms. Lam is coming from and I take exception to her above statement, "print vendors increasingly look at alternative hardware strategies such as MPS...as ways to increase revenue...". Successful Managed Print Services strategies should not be hardware driven - an assessment looks for areas of cost reduction, not hardware placement. 

Why So Quiet - Maybe there isn't as much 'buzz' from the MPS niche because we in it are actually doing it, day in and day out. And by we, I mean we selling, infrastructure, marketing, branding, research, and MPS training types. Perhaps we are all on the same spot in the MPS Adoption Cycle - execution(or re-execution) and it is now more important to operate the practice versus talk about the practice. That 30% deficit is a hole waiting to be filled with MPS services, not equipment. 

A boon for us, a boardroom challenge for the big manufacturers. The Silence of Activity - humming along.

Dare To Compare: Dealer Managed Print Programs

Ed and the gang at Photizo are conducting a free Webinar illustrating some of the current dealer programs - in a "compare and contrast" manner, I believe.

Should be good, general information for those looking to get into MPS, those who are just starting and for us who have been slammed in the head a few times, but keep on chuggin.

Register here.

Now IS The Time for Managed Print Services - Hardware Sales Down as Much as 30% by Year End

Focus shifts to print services as hardware shipments slump

by Billy MacInnes
20 August 2009

Pressure on vendors and channel partners to diversify into print managed services is expected to intensify in the wake of a huge slump in shipments of printer, copier and multifunction products (MFPs).


The steep fall in shipments has been thrown into stark relief with figures from Gartner showing the market for printer, copier and MFPs in EMEA dropped by almost a quarter in the first half of 2009.


Gartner’s numbers were supported by HP’s recent third quarter results which showed a 23% fall in overall printer unit shipments, including a massive 42% decline in commercial printer unit shipments.


Worse still, the market research company predicted shipments would continue to experience a double-digit decline in the second half of the year that could reach 30%.


Todd Prabhakar, senior analyst at Gartner said vendors were looking at areas such as managed print services and document-managed software to try and increase revenue in the face of customer reluctance to spend money on new equipment.


“Vendors must sell services to businesses that will help them better control costs, save on running costs, reduce cost-per-page issues and consolidate devices,” he argued.


Prabhakar’s comments are likely to be endorsed by vendors in the print and copier world as they have become increasingly interested in managed print services.

Back in March, HP IPG channel development manager Alan Hatfield revealed it was aiming for 60% growth across EMEA for managed print services and the UK would achieve 30%. Lexmark UK channel sales director Marcus Harvey agreed it was “a key area for us” and Martin Tierney, UK services director at Kyocera Mita, said managed print services was “definitely the way to go”.


According to Gartner, the vendors worst affected by the global recession were Hewlett-Packard and Canon, which suffered market share falls of 31.5% and 25.8% respectively.
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Original here.

A Mockery of the Copier Industry: NOT My Words

This photo is a creation of Steve Reisman.

Steve is a talented photographer and in the copier trade. I encourage you to check out his work here. And hopefully, I will use more of his work in the future.
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Sarcasm out here is cyber-land is a difficult convey, the writer takes a leap of faith that his readers will recognize it.

Here at DOTC, I take many things to task, and believe it or not, I re-write articles DOZENS OF TIMES, stripping out and watering down what some soft, timid souls may consider to be vitriol and venom.

So, when I see mockery and sarcasm applied by others I take note - when the example hits home, right in my backyard, I like to share.

I stumbled upon a good example via a Twitter Tweet.

I am going to cut and paste, these are not my words; a customer took the time to document his experience as witness to an interaction between a copier tech and his service manager - on site.

Enjoy.

Friday Guest Mock: Dear Copier Repair Area Manager Doing A Performance Review Of Your Employee In My Copy Room

2009 August 21

by mockers

I know that in this era of fast, responsive, and agile service that you are doing your best to model 21st century “go-get-’em” business habits to your employees.

May I suggest that your showing up at my place of business to do *your* business of delivering a bad job performance review to a guy we’ve been waiting two days to see may not be the best use of putting your management training skills “on the road?”

May I further suggest that taking calls from your office while in the middle of passive aggressively calling your employee “lazy” and “unmotivated”… all while he had the innards of our multi-thousand dollar paper shredder spread around the copy room doesn’t give me much confidence in the work that has been, or was being, done?

May I continue? I can’t print anything right now anyways so I’ll just keep typing.

The part of the conversation that went like this:

Employee: “Well, how long did it take *you* to get promoted to supervisor?”

Supervisor: “Three years. How long have you been with us again?”

Employee: Silence

Employee: Silence

Employee: “Three years. I’m seriously disappointed to be receiving this news today.”

*sound of something snapping, either in the employee’s head or inside our only tool for producing printed material in the whole building.*

Supervisor: “I’m sure you are.”

Listen buddy, I know that your two years of community college puts you into some kind of elite squad of management gurus.

I also know that your getting to wear the long-sleeved oxford shirt with your company’s logo rather than the golf shirt your employee was wearing means you have some kind of one-up on him, and us evidently since we are now your version of the back-shed.

However, my “take-away” to use your cheesy, uncreative, and stupid business-speak was that you just gave me a half-hour crash course in how *not* to manage, or lead, a team.

Once I clear up this paper-jam I intend to print a copy of this letter to bring to your office while you are in the middle of trying to do your job.

Sincerely,
Glad I Work Here and Not There
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Honestly, you can not make this stuff up!

Video In Your Newspaper. Inconcievable!! But wait..

The Death Of Print creeps ever so close - can video save print?

In next month's Entertainment Weekly, readers will see full motion video and be spoken to by stars of the upcoming Fall TV season - via a paper thin screen built into the page.

First singing greeting cards and now George Kastanza screaming, "Serenity Now! Serenity Now!"

It is finally here - the convergence of two media; video and print.

I bet my dad won't like it one bit.

When the unsuspecting reader turns one of the pages in Entertainment Weekly, a commercial will run, on a small video screen, complete with motion and sound, pitching the new CBS fall TV season.

This is a first and a test of technology developed by a firm out here in L.A., AmeriChip

Imagine the possibilities.

Can't get that out of a ColorCube or Edgeline, eh?

Check this little article from July of this year;

Odds are, One Day You Will Not Get Your News/Information in Print or On Your Computer

SEC Asked HP About Middle Eastern Dealings - Back in February

This story is old - real old.


So why would the Sacramento Business Journal prints a re-hash today, the same day HP announces earnings?

The complete article, dated August 18, 2009 is here.

Today's SBJ article reports on events that occurred back in February - it seems all the SEC questions have been answered and today the issue is a non-issue.

The story first broke, from the Boston Globe, on December 29, 2008, is here.

Indeed, DOTC commented with,

HP Printers Sold in Iran - The Unholly Alliance -

The Boston Globe article resulted in HP making corrections, as outline in,

HP To Stop Selling in Iran - Power of The Press

a few days later.

I guess the SBJ isn't a big supporter of HP.

Interesting.

RICOH Stock Could Rise 30% Over The Next Year

The Ricoh/Ikon/Infoprint odyssey continues...

NEW YORK, Aug 2 (Reuters) - Ricoh Co Ltd (7752.T) shares could be undervalued as investors overlook the benefits of two healthy acquisitions that could help the stock rise 30 percent over the next year, Barron's reported.

The Japanese company has transformed itself from an office-machine maker into a global technology solutions provider that gets most of its revenue from software and services like consulting.

Ricoh's acquisitions of a majority stake in IBM's American print systems unit, InfoPrint Solutions in 2007, and its acquisition of Ikon Office Solutions last August will help the company compete with rival Canon, said Barron's.
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"The IBM purchase provides Ricoh with a solid foothold from which to launch further products in the high-volume document market," says Kunihiko Kanno, an analyst who follows Ricoh for Credit Suisse in Tokyo.

"Digital commercial printers are used to print big documents such as product manuals and direct mail quickly and in large volumes," he adds. "This is one of the fastest-growing segments of the office equipment market," he says.

Ricoh picked up "research and development, technology and skilled personnel from IBM that we could have never developed by ourselves," Kondo says. "This will be a profitable division once things pick up again." Because its clientele is mostly financial-services providers, InfoPrint hasn't turned a profit as yet. By 2012 analysts expect it could add ¥100 billion in revenue and kick in ¥2 to ¥3 per share in operating profits.

Ikon, which also hasn't delivered a profit to its new parent, holds even more promise. Ikon provides document- and business-processing services as an add-on to its conventional office-equipment lineup, Kondo says. The goal is to convert Canon customers to Ricoh products and introduce Ricoh clients to Ikon.

"We plan to assimilate their expertise, and turn Ikon's customer base of major global companies into our customer base," says Kondo. By 2012, analysts say Ikon should deliver ¥280 billion in revenues and ¥8 to¥9 yen per share in operating profit. Kondo says

Ikon will be an important driver of Ricoh's push into business and consulting services.

Article Here.