The Word From Hurd: IPG Growth Includes Wal and K*Mart

One word kid, one word..."Kiosk...Kiosk...Kiosk..."

Ok, that's three words.

I have seen the future of Edgeline and it is at K*Mart.

HP's notorious inventory challenges are reportedly behind them, and 2010 looks to be a year of "recovery...and attack..."

IPG is leaner, meaner and looks "...to drive further share in installed base gains with double digit printer unit growth in Q1..."

Hurd's remark about IPG expansion around "100's of photo kiosks..." piqued my interest.

Somebody, somewhere, somehow, is manufacturing EDGELINE engines. The Final Destination just isn't a department in your corporate accounts, it's underneath a blinking, blue light, in isle 13.

Hurd-

"...IPG is poised for recovery and is getting on the attack. As we enter fiscal year 2010, the headwinds in channel inventory are behind us. We expect supplies growth to improve with economic trends, and employment levels and project a flattish result in Q1.

Demand is also improving for our printers.

We gained share sequentially and we expect to drive further share in installed base gains with double digit printer unit growth in Q1. Due to improvements in our cost structure we can do this while remaining within the 15 to 17% operating margin that we laid out at our analyst meeting in September.

IPG is also gaining significant traction with its growth initiatives. We deployed hundreds of photo kiosks this quarter at Wal-Mart and look forward to further expansion in 2010.

Recent studies released by market analysts highlight HPs leadership in managed print services with more signings than any of our competitors. We're encouraged by our Managed Print Services funnel, which is at record levels, these deals are generally for multiple years and have a high attach rate of supplies.

In commercial print the analog to digital page shift is occurring and we are leveraging our technology to accelerate the transition. Partnerships with industry leaders like Pitney Bowes, RR Donnelly, and web press purchases from communication leaders, Omnicom demonstrate the power of our portfolio and capabilities. We expect you will hear more partnerships from us shortly.With our significant market leadership and broad patent portfolio, we are well positioned to capture this significant page opportunity..."

For a good re-cap, check out Jim's blog, here.

Your Managed Print Services Association International Board Member Election: It's Your Association - Globalized

As part of the MPSA, it is my duty to promote the MPSA and it's events.

I have never considered this a "duty" - and it is was great pride, I cut and paste this announcement from the site.

In less than eight months, the MPSA has now expanded international, with seven candidates vying for two international board member openings.

A listing of complete bio's here.

Hakam Abu-Risheh: Gulf Commercial Group

Mr. Hakam Abu Risheh has been at the helm of GCG since 2003 and has played a pivotal role in establishing the position of market leader that GCG enjoys today. He was previously with El Ajou group in Saudi Arabia as General Manager for its Canon operations, and also had additional responsibilities for the Unisys and Pitney Bowes product lines. He holds a Bachelor Degree in Electronics from the University of Manchester in the UK.

Ravi Balaguragi: Mustafa Sultan Office Technology Co LLC

Johan Kosters: DOCplus

Mr. J. Kosters has been an industry expert and ‘docaholic’ for more than 20 years. Since 2002 he is an independent consultant in the imaging, print and mail industry. Before this he has held several positions within Océ's research, sales, training and business services. In 2004 he founded DOCplus Consultancy, supporting clients with improving their document infrastructure and processes. DOCplus Consultancy has built an independent leadership position for document output management strategy development, purchasing support and ongoing end-user service level management of MDS/MPS engagements.

Graham Mann: The Danwood Group

In standing for election to the MPSA board I have put together the following profile with highlights of my industry background, significant accomplishments and what I can offer the MPSA and its members.

My name is Graham V Mann. I was born in London in 1959 and currently hold the position of corporate accounts director working for Europe’s largest independent print management services company – The Danwood Group. http://www.danwood.co.uk/. My background is mostly sales, however I am trained in marketing with Institute of Marketing Qualifications. More recently I have learned an appreciation for project management skills and understand the value this brings to a successful MPS offering. Outside of work I enjoy spending time with my family and am actively involved with local community cricket and football clubs.

Robert Newry: NewField IT

This is an exciting time to be in the industry as we transform from a box led proposition to a service led one. There are many choices and challenges to address and the Managed Print Services Association (MPSA) provides a much needed independent source of advice, discussion and standardization. My experience at NewField IT where we have been involved in 100+ MPS type projects in 31 countries is why I feel I can bring a knowledgeable and independent view to this diverse and fast evolving area.

Uwe-Jens Nonnsen: Self employed Consultant

My experience in this industry goes back to the 70’s. As Managing Director of the German subsidiary of Nashua Corporation, Nashua, N.H. I established mid of the 80`s the foundation for an ever growing and prospering organization. I stayed Managing Director throughout the acquisitions and mergers performed by Gestetner in 1990 and followed by Ricoh in 1995. In 1991-1993 I also was as MD in charge for Gestetner Denmark and Sweden. 1995 was the start of NRG Group Plc. (Nashuatec/Rex Rotary/Gestetner) – a 100 % owned subsidiary of Ricoh Tokyo. All subsidiaries of NRG operated parallel and competed with Ricoh’s own subsidiaries.

Peter Strohkorb: PS Consulting

Peter is a hands-on Consulting, Sales & Marketing professional with over 20 years senior management experience in B2B Solutions. He enjoys coming into organizations to either start new lines of business, or to take existing businesses to the next level.

Peter is a specialist in Managed Print Services. He recently joined CSC Australia to build the Enterprise Print Solutions business. Previously, he spent seven years at Canon where he started and built the Solutions and Managed Document Services business from zero.

---------------------
Become a member, vote here.

Obama Taps Ursula: Go Science!

President Barack Obama today named Ursula Burns , chief executive officer of Xerox Corporation (NYSE: XRX), to help lead a national program aimed at honing students’ skills in science, technology, engineering and math (STEM).

The education initiative is expected to help the country sharpen its competitive edge in innovation and regain dominance in the technological revolution sweeping the globe.

The project will be led by Burns; Craig Barrett, former chief executive officer and chairman of Intel Corporation; Glenn Britt, chief executive officer of Time Warner Cable and Sally Ride, former astronaut and president and chief operating officer of Sally Ride Science, in conjunction with the Carnegie Corporation of New York, and the Bill and Melinda Gates Foundation.

"Companies like Xerox succeed through innovation, collaboration and the fresh ideas of our people. If we inspire young people today, we secure our ability to innovate tomorrow. Innovation is central to our nation’s overall growth, to our quality of life and to our success in the global marketplace" said Burns, whose own personal journey from the classroom to the C-suite reflects the benefits and opportunities of a STEM education. Burns is a mechanical engineer who joined Xerox as student intern nearly 30 years ago and progressed through the company in a variety of engineering, product development and management roles. She was named president of Xerox in 2007 and became chief executive officer of the company on July 1.

An important first national step to improve math and science achievement, the initiative plans to broaden job opportunities and quality of life for more Americans. The team is expected to work at a rapid pace similar to the space race 50 years ago and focus on mobilizing the resources needed to raise the level of math and science learning for all students. The program will explore how new technologies, social networks and other resources can be used to connect teachers with professionals and companies and improve student performance in science, technology, engineering and math education.

Burns serves on the board and works with a number of institutions and organizations that are advancing STEM initiatives. Among them are the National Academy Foundation, MIT, and the University of Rochester. Burns is also a member of the advisory board for FIRST - (For Inspiration and Recognition of Science and Technology), an organization that, through robotic competitions, fosters student interest in innovation and engineering. Xerox was a founding member of FIRST and continues to support the organization today.

In addition to FIRST, Xerox traces a 50-year commitment to the power of education, investing in a number of programs. The Xerox Science Consultant Program is one of the longest running industry-education partnerships in the country. For the past 40 years, Xerox scientists and engineers have worked in the class room to make science fun for hundreds of thousands of elementary students.

Xerox has also invested several hundred million dollars in educational grants to fund programs and scholarships at universities and science centers throughout North America. Thousands of students have received educational assistance through Xerox’s Technical Minority Scholarship Program.

Happy Thanksgiving: Here's The Waiver Your Guests Should Sign.

Happy Turkey Day.

Be thankful.

And have your guests sign off on this document, before they enter your abode.




Click to email me.

The Game Continues - Big Copier Players Battle for 3 Point Business: Sign on To Be Premier Purchasing Partners' Whipping Boy

You're perched in a crowded lobby waiting for the appointment you landed two weeks ago.

Next to you is your Sales Manager, on your lap, your Pitch Book.

Across the lobby, a large, disheveled man is torturing the circa 1950's plastic chair; a desperate example of the ultimate carpet sales person.

Next to him, a hot little number with what appears to be floor covering samples by her side.(resilient)

A thought flashes through your mind as the receptionist calls your name, "thank goodness I sell output solutions and not floor wax..."

The dirty secret?

You are all waiting to pitch the same person.

Good Luck with that.

Announcements, from the "wire":

CHARLOTTE, N.C. - (Business Wire) Premier Purchasing Partners, LP, today announced new agreements for flooring carpet and resilient.

New agreements for carpet have been awarded to J+J/Invision of Dalton, Ga.; Mannington Commercial of Calhoun, Ga.; Masland Commercial Inc. of Mobile, Ala.; Mohawk Industries of Marietta, Ga.; Shaw Industries Inc. of Dalton, Ga.; and Tandus US Inc. of Dalton, Ga.

New agreements for resilient have been awarded to Amtico International of Atlanta; Armstrong World Industries Inc. of Lancaster, Pa.; Mannington Commercial of Calhoun, Ga.; Mohawk Industries of Marietta, Ga.; and Shaw Industries Inc. of Dalton, Ga.

Premier Purchasing Partners has signed supply contracts with Konica Minolta Business Solutions U.S.A. Inc. and Ricoh Americas Corp., both of New Jersey, and Connecticut-based Xerox Corp.

Under the agreements, the companies will supply printers, copiers and facsimile machines to members of the Premier health-care alliance.

Premier Purchasing Partners is a unit of Premier Inc., the largest health-care purchasing alliance in the United States. The parent company recently announced it would make Charlotte its corporate home, moving its headquarters from San Diego and adding 300 jobs here over the next five years.

Premier currently employs 750 in Charlotte.

The company represents 2,200 nonprofit hospitals, including Carolinas HealthCare System, Gaston Memorial Hospital and Stanly Regional Medical Cente.

Go Copiers!
----------------------

You and I both know that somewhere in the bowels of Konica Minolta, Ricoh or Xerox, some poor schmoe is "high five'n" another schmoe, congratulating each other on "landing the Premier deal" - you just know it.

Pity the newbie-rep who gets to respond to the RFP.

HP Profits UP 14%, IPG Revenues Decline 15% but Profit Remains Steady

Fresh after last weeks stunning numbers, Canon Down 54%, Ricoh Down 69%, Xerox Down 50% - Profits? We Don't Need No Stinkin Profits..., HP and IPG, make the scene in a relatively rosey manner.

If by "rosey", you mean a 15% decline in revenue...


From the transcript, Catherine A. Lesjak - HP Executive Vice President and Chief Financial Officer:

"...Turning to imaging and printing, IPG continues to deliver over $4 billion in operating profit annually with Q4 operating profit totalling $1.2 billion or 18.1% of revenue. In Q4, revenue improved 14% sequentially to $6.5 billion as printer demand begins to pick up. We are reinvigorating the core business by driving adoption in high page output areas such as wireless printing, office jet pro, and multi-function printers.

In addition, we are driving growth in long-term, high value annuity businesses such as managed print services and retail publishing. We have been expanding our retail publishing pilot with Walmart. We have begun to deploy our self-service photo kiosks at Walmart and this win, coupled with other major retail publishing wins such as Kesko, Duane Reid and K-Mart Australia represents a significant proof point in IPG's scaling of its contractual businesses.

Operationally, IPG is in much shape as it enters 2010.

It has made significant progress in its cost structure, inventory management, and overall operational rigor. These improvements give us capacity to invest in unit placements while maintaining industry leading profitability. Going forward into Q1, we expect to have double-digit unit growth while at the same time delivering operating profit in the range of 15% to 17% as we outlined at our analyst meeting in September..."
-------

Imaging and Printing Group (IPG) revenue declined 15% to $6.5 billion.

Supplies revenue was down 8% while Commercial hardware revenue and Consumer hardware revenue declined 32% and 17%, respectively.

Printer unit shipments decreased 20%, with Commercial printer hardware units down 38%and Consumer printer hardware units down 14%.

Operating profit was $1.2 billion, or 18.1% of revenue, versus $1.2 billion, or 15.3%of revenue, in the prior-year period.

So, it looks like even with a 32% decrease in revenu(Commercial hardware), Operating profit remained steady at $1.2b compared to $1.2b last year.

Further investigation reveals that HP experienced a 8% increase in services revenue and HP Financial increased 5%.


Good review here.

DeathOfTheCopier Name the Fishies, First winner: Gazpacho

Ok, now honestly, we really do have too much time on our hands, don't we?

"Gazpacho" - a red, Spanish soup. Perfect!

The fishies are red, the name fits.

Nathan Dube thank you for your participation and continued patronage.

Expert Laser Services provides the full range of office imaging solutions from single laser printer repair through comprehensive printer fleet management for clients all across southeastern New England. From Nashua, NH south to Springfield, MA and Providence, RI over to Hartford and the Northeast corner of Connecticut, from metropolitan Boston west and across Worcester County we offer...


Expert printer service with a fleet of fully equipped technician vans on the road daily to provide on-site convenience as well as F-A-S-T response! Laser printer repair and copier service requests can be submitted 24-7 via our printer service page.

Digital black & white and full color copiers from Konica Minolta.

Top-of-the-line laser printers from Hewlett-Packard, Konica Minolta Printing Solutions ( Formerly QMS ) and Xante.

Cutting-edge Muratec fax and multifuntional.

Entry-level and enterprise-wide document management and document capture software.

Copier Crime Update: John Buonomo jailed for stealing coins from copiers

This guy ran for Mayor of a small town. Twice.

I first talked about this back in August of 2008. The cops got him stealing coins from copiers on video - 18 times.

He has been sentenced to 30 months behind bars.

Buonomo will be eligible for parole in 15 months and could 10 years of prohibition.


Article here.

MPS Conference 2010: Oki In The House. Print Audit in The House. RICOH in the House.

And by Ricoh, do I mean IKON?

The list of sponsors continues to grow for the 2010 MPS Conference in San Antonio, May 3-5, 2010.

Mirroring the European version, this session will hold a pre-conference workshop providing the basics of Managed Print Services for folks who have less background in the Managed Print Services Ecosystem.

These tracks are golden.

One track is dedicated to decision makers responsible for implementing MPS engagements in their companies. The other track is specifically for dealers who are developing MPS offerings for their companies.

This conference is specifically geared toward Managed Print Services - the MPS that goes beyond CPC, assessments, Scope documents, etc.

Last year's conference was full of exuberance and mirth, most the advice and back room chatter rolled along the "this is what you SHOULD do" talk track.

This year, I image there will be more of the "this is what you SHOULD NOT DO, because I tried and it didn't work..." conversations; over adult beverages, served up by scantily clad, college coeds, at Coyote Ugly.

Not that there's anything wrong with that.



Lexington, KY – November 18, 2009 – Signaling strong interest in the second annual North American MPS Conference, industry leaders OKI Printing Solutions and Ricoh have signed on as Platinum Sponsors for the 2010 event. Print Audit has joined as a Silver Sponsor for the conference scheduled for May 3-5 in San Antonio, TX.

“The MPS market has only begun to take off, and as the opportunity grows, so does the need for real information and ideas to make the most of it. The success of the inaugural 2009 conference in San Antonio and the European MPS Conference in Amsterdam validated the need for ongoing educational forums dedicated to the MPS marketplace. The early commitment of these high-profile sponsors shows the industry is ready to support professional learning venues like the MPS Conference,” said Ed Crowley, founder and president of the Photizo Group.

Photizo Group, leading research firm specializing in the analysis of the printing and imaging industry, hosts the series of MPS Conferences dedicated to decision makers and providers.

About 150 MPS decision makers and providers from as far away as Dubai and India attended the 2009 North American conference to gain insight to the developing trends in managed print services and document output management as strategies for sustainable business practices and organizational cost reduction.

“We are proud to be a Platinum Sponsor and view this conference as a substantial opportunity to listen, learn and enhance our services to meet the needs of MPS Customers world-wide,” said Mark Boelhouwer, Vice President of Strategic Marketing, Ricoh Americas Corporation.

Return of Popular Pre-Conference Workshop for MPS Novices

The 2010 MPS Conference will feature the popular pre-conference workshop providing the basics of Managed Print Services for decision makers and dealers who have less background in the world of managed print.

These sessions will concentrate on providing a solid foundation of the subject and offering practical strategies when selecting an appropriate MPS partner or provider for first-time MPS engagements. A two-track format offers targeted educational opportunities for MPS professionals. One track is dedicated to decision makers responsible for implementing MPS engagements in their companies. The other track is specifically for dealers who are developing MPS offerings for their companies.

The conference also features two tracks, with the first for end users (CIOs, CFOs, IT Managers, Facilities Managers and Purchasing Departments) who have implemented MPS or are looking to implement MPS in the future. This track offers best practices, case studies, how-to guides and more. The second track is targeted at vendors, resellers and infrastructure providers, with information on the emerging hybrid channel, guides on infrastructure, best practices, research data supporting MPS beyond typical anecdotal evidence, projections about the market and more.

“We are delighted to take part in the conference again this year,” said Dena Bernard, Director, Customer Satisfaction and Services for OKI Data Americas. “As a Platinum sponsor, we are able to contribute to a valuable, informative event that will continue to have a positive impact on the MPS industry now and in the future.”

Conference Focused on MPS Success

The Photizo Group estimates that the MPS market is worth over $25 billion globally this year and projects it will be a $60 billion market by 2013. The MPS Conferences address the urgent need for information about this fast-growing managed print services market. Conference content features case studies, panels, exhibitions and interactive sessions that highlight successful approaches and practical ideas from actual MPS engagements. MPS decision makers, vendors and channel partners benefit from a rich agenda of relevant topics.

Registrants can take advantage of the Early Bird rate, with special discounts off the pre-conference workshop and conference, as well as a package price for both events. Details and other conference information are available at http://www.mpsconference.com.

HP Recognized for Leadership in Managed Print Services by Global Industry Analyst Firms

I have reprinted the presser from HP.

In summary, IDC, Gartner, and Photizo all laud HP as a global leader in MPS.

The first line of the release,

"HP today announced its managed print services (MPS) offering has been recognized as the preferred choice for enterprise customers by IDC..."

Key Phrase: Enterprise Customers.

For all of us here in the SMB space, or maybe slightly higher, this means nothing.

As a prospect with 1,110 employees, this means nothing.

As a BTA member, schlepping copiers, this means nothing.

As a IT VAR, venturing into MPS, this means nothing.

And not just from HP, but Xerox too. Remember, they are BOTH in the upper right corner of the Magical Quadrant; and for us, this means nothing.

Why?

Because, Global, Enterprise sized MPS Engagements look nothing like what we see every, single day. The tools, process and "talent" do not trickle down to the channel(s). Case in point, Canon and HP.

Canon through HP is for Enterprise Accounts only. There is no way Canon would jeopardize its small, fledgling channel by allowing the HP behemoth to sell Canon gear through an HP channel.

Canon is smart on this issue, perhaps not becuase Canon is afraid of the HP channel taking business from existing CBS and Canon dealers. But maybe Canon doesn't want to be part of another "Hawk" or "Bear" debacle.

Just my crazy mind working overtime...

Enjoy the PR.


PALO ALTO, Calif., Nov. 16, 2009 – HP today announced its managed print services (MPS) offering has been recognized as the preferred choice for enterprise customers by IDC, a leading provider of IT research and advice.

HP Managed Print Services transforms business processes by optimizing a company’s imaging and printing infrastructure, effectively managing the total imaging and printing environment and improving and streamlining document workflows. It helps customers cut costs, increase productivity and reduce their environmental footprints.

HP was identified as the leader in a recent survey conducted by IDC, “Managed Print Services – Global Market and Provider Analysis.”(1) Within the survey sample, HP had the highest share of new and outstanding MPS contracts among hardcopy manufacturers.(2)

“HP has expanded its capabilities to strengthen the MPS industry with its IT heritage, and we continue to increasingly capture the growing MPS market and surpass expectations,” said Vyomesh Joshi, executive vice president, Imaging and Printing Group, HP. “Our recent momentum is a powerful proof point in HP’s strategy to establish long-term contractual relationships with the world’s top companies as we continue to lead the digital print transformation.”

The IDC report is the latest in a series of third-party studies that show HP’s leadership in MPS. Others include the 2009 Magic Quadrant for MPS from Gartner, which placed HP in the Leaders Quadrant(3) and Photizo Group’s 2009 MPS Market Forecast, which positions HP as the global leader.(4)

“The IDC study, coupled with HP’s recognized leadership in similar reports, firmly demonstrates that HP remains the best choice for customers as they invest in MPS and look for new ways to reduce costs and improve productivity,” said Bruce Dahlgren, senior vice president, Imaging and Printing Group, HP. “Once again, HP’s extensive product portfolio, strength in networking and services, and expert knowledge has positioned the company as a leader, demonstrating that customers continue to choose HP as their trusted partner in managed print services.”

In related news, HP recently announced a Managed Enterprise Solutions (MES) global business unit led by Bruce Dahlgren within the Imaging and Printing Group (IPG), an expanded alliance with Canon, enhanced channel-led programs, hardware and solutions, the HP Payback Printing Campaign and the largest ever rollout of HP printing workflow solutions.

The first of its kind for its comprehensive, demand-side coverage, IDC’s “Managed Print Services – Global Market and Provider Analysis” covers 10 countries in four geographic regions – the United States, Western Europe, Asia Pacific and Latin America.

The analysis shows that cost cutting is the primary motivator of adoption for MPS, with optimizing the printing infrastructure and environmental sustainability as other key motivators. Motivators also examined were regulatory compliance and security, paper document storage, business process transformation, a merger or acquisition, or a services contract extension.

“The results of the survey show HP’s strength in MPS,” said Angèle Boyd, analyst and group vice president, IDC. “With HP’s IT assets and HP Enterprise Services, formally EDS, IPG is a significant force in this growing market.”

Canon to Buy Océ, Biggest Printer Maker in Europe

Interesting...

How in the world does something like this happen? Pennies on the dollar or Euro, I guess.

The press release reads as though Canon is "...driven by the undeniable fact that scale is increasingly important..."

I guess size DOES matter.

Get ready for more - numbers are down for all, times are tough, and perhaps this is the beginning of a consolidation avalanche.

Press Release:

Full press release content here. New York Times article, here.

Managed Print Services: Owners/Manufacturers/Sales Managers DO NOT READ THIS: Selling Professionals Only

The blame game is starting up - and as you know, sh*t rolls downhill.

Are you starting to hear the following:

"How many DCA's are you installing a week?"

"How many assessments are you conducting a week?"

"How many face-to-face, C-Level meetings are you having a week?"

"fill-in-the-blank, say's if you close 50 MPS deals a year, you'll be making over $200k!"

"So and so says to get in front of C-Level's or your deal will never get off the ground..."

"What's her name says forget about C-Level, they don't feel the pain, get to the IT guy..."

"don't worry about the compensation on your MPS deals, we'll figure that out as we go..."

"oh, and how many machines are you installing this month?"

I can count perhaps half a dozen, MPS Specific training programs in the ecosystem - third party trainers and consultants.

Add in manufacture programs and you get to around a dozen different MPS training programs - I calculate that adds up to nearly 1,500 PowerPoint slides - LOL!

Have you been a victim of one of these charades?

The More Things Change, the More Things Stay the Same -

If you are in the field, trying to sell this hot, new thing called MPS - how is it going?

Did the two day training class you sat in on help?

Are your scripts killin?

Is your Value Proposition dead nuts on?

Do you have a SOW? Scope document? Standard meeting Agenda?

Do you still have questions about strategy and tactics when it comes to MPS?

Is your sales manager just as new at this as you are?

How about your principals or executive management, can they even spell "MPS"?

No? Nothing? Nadda?

Huh, that's too bad. Or, is it?

Questions, questions...they're just questions.

The same questions selling professionals asked when the first fax machine came out, or back when the first photocopier hit, the personal computer, spreadsheets, light bulb, automobile, steamship, loom, printing press and buggy whip - all paradigm shifting, business model redefining, hybrid generating, advances.

And as much as we all want to believe this MPS thing is "new", it really isn't. It all goes back to the basics, everything good does.

This is nothing to get alarmed over, indeed this could be a generational opportunity for us - for us in the field.

Here's the deal. Your manager and owners alike are at the same level of MPS awareness you are - actually, they are worse off unless they go into the field as you do, every single day.

Each appointment you have, every call you make, every time you talk about MPS, read about MPS, each of these events add to your personal, knowledge base. Tell me you don't learn something new with every "assessment" you perform? Not about assessments, but about the business you are assessing.

Specifically - these instances are "resume enhancing experiences". Wha..wha..whaaaaat?

The world is changing.

Managed Print Services isn't changing the world, bigger things are. The world of brick and mortar is starting to dissolve - are you still conducting 30 demo's a month in your big, expensive showroom?

IBM figured it out two recessions ago and HP is on it now - the world won't need as many distributed pieces of hardware as it once did.

Cloud computing, the Death of Newspapers, iTunes, Androids, Moore's Law and You -

In the 1950's I guess it took maybe 20 admin's to support one or two sales people. From typists, to accounting clerks, order processing, filing, management, out to production.

I have no idea what the ratio is today, but considering all we can do with a laptop and a Blackberry, I can imagine the number of support staff is or should be,much, much lower. (I still remember an email string containing 74 different people on just one of my orders at IKON...74 people touched one order!)

Everyone is doing more with less.

As the number of non-customer facing employees dwindles, the value of those who do, increases.

Consider that statement again.
.........

Other than you, personally, who else will benefit from your increased value?

Your next "employer" that's who.

A better question might be, "will you even need an "employer" in the first place...?"

Managed Print Services, Size Does Matter - Just Not In The Way You Think

2009

I have been getting alot of "size" questions lately.

You know, how big is too big, how small is too small?

Is "small" ok if there are multiples?

What, exactly, is too big?

And by the time I find out its too big, is it too late?

Titillating queries with scintillating responses.

The answer, of course, depends on your sweet spot.

Get your mind out of my gutter -

I'm talking about how you define a Managed Print Services prospect - by number of employees, number of copiers, number of printers, fax lines, scanners or what?

Depends.

Great. What does it depend on?

It depends on what your organization can handle - more importantly - it depends on you.

Let's compare this in the most simplest terms and reduce MPS down to CPC - a prospect for a copier is anyone who has volume, wants to buy, or fogs a mirror, right?

I am not saying we should, but why don't some in MPS feel the same way?

Why is there a difference between how we qualify a copier deal vs. a MPS Engagement?

These aren't rhetorical questions, there are answers.

One answer is some do equate MPS with CPC - not that there is anything wrong with that, equipment optimization and capturing print volume is one component of MPS; indeed, just the beginning.

And, this is big, "equipment and volume" are easy issues for a dealer or Selling Professional to get his head around.

So, if your company's definition of MPS is simply equipment refresh, right-sizing, and supplies management, why not go after the 7,600 images per month deals? (Yeah, I am pulling 7,600 images out of thin air, just like everyone else is doing. But let's proceed on this assumption.)

That's 19 accounts per month if you use the 150,000 image quota per month, per rep figure being bantered about currently.

Now, if we further extrapolate an average of 3,400 images/month/machine(my accumulated studies numbers, HP shares the opinion) to reach the 150k/month, we need to sell or capture 44 machines each month, spread across 19 opportunities - just over 2 machines per deal.

Huh.

The Assassin, "I'm afraid, Captain, it's Worse than you Think."

Mal, "...it usually is..." -

These 19 deals need to take place over 20 working days each month - One, 7,600 image deal each day.

How much time, if any, would you, the Selling Professional in the field, spend on pursuing a MPS Engagement with a client generating 7,600 images a month? Would you even pursue? Is it worth your time?

As a Selling Professional, some studies say, your time is worth around $180.00/hr. $180.00 to you, personally.

How many hours of your time, does it take to close one deal?

Let's guess:

Drive Time - .5 hour
First appointment - 1 hour
Follow up/appointment summary communication - .5 hour

Drive Time - .5 hour
Second appointment - 1 hour

Assessment/Survey/Study/Data collection - 4-6 hours(?)
Analysis - 1 hour
Proposal generation - 1 hour

Drive Time - .5
Presentation of Findings and Recommendations - .75 hour
Agreement Execution/Implementation - 1 hour(?)

Close to eight hours; that's $180.00 X 8 hours for every deal you work on; or $1,440.00. So for every deal you put 8 hours of time into, you should bring home, in your pocket, $1,440.00. The bad side is, you are going to put more than 8 hours into deals you will never close - it's inevitable.

Further, 8 hours per deal, multiplied by 19 deals/month, requires 152 hours total - there are 160 hours/month available.

Roll in all the Monday Morning Meetings, conference calls, "training" sessions, your 4 hours/week of cold calls, and the all mighty, ever important, client service/problem resolution(cleverly disguised as toner delivery) and we are all upside down.

I know the numbers above are debatable, that's not the point, it's the process I am trying to illustrate. Does this make sense?

"Show Me The Money" -

Let's look at how all this fleshes out in terms of greenbacks, shekels, lire, cabbage, money.

The possible commission on that revenue, 150,000 images/month, is $150.00. This doesn't look all that enticing, does it? (150,000 times 0.020, times 5% commission equals $150.00)

But if you keep a run rate of 150,000 images added each month, after 12 months, your MONTHLY RESIDUAL COMMISSION should be $1,800.00/month, riding 1.8 million monthly images.

At this point, if you didn't sell an image for the next 24 months, you would still be collecting $1,800.00/month.

And watch out, there are all sorts of schemes coming to the surface veiled as techniques "not allowing the sales team to get lazy"; sunset clauses, equipment revenue and percentage of quota gates, etc.

So, how big is too big?

I dunno. I do know there is no magic bullet, no singularity. Unlike the copier world, for the MPS Ecosystem, THERE IS NO SINGLE ANSWER FOR EVERYONE.

And by everyone, I mean we on this side, and those soon to be Partners, our Prospects.

The best thing to do is plug in your own numbers and determine your ideal "size".

Everybody else has got an agenda, why shouldn't you?

HP LaserJet II: Whadda Mean, It's not Under Warranty?

Canon Down 54%, Ricoh Down 69%, Xerox Down 50% - Profits? We Don't Need No Stinkin Profits...

The third quarter was not kind, here are some numbers:

Canon operating profit was down 54% year-over-year and sales down 22%

Ricoh profits were down 69%, and

Xerox profit was down a little over 50 % and sales by nearly 20%.

Konica Minolta and Kyocera also reported fall-offs in profit and have readjusted their expectations for the year and have lowered profit predictions considerably.

I don't know about you, but I can not think of too many businesses that can survive these kind of numbers.

Thank goodness "O" can't get a hold of these...wait, is Xerox "too big to fail?" -

Stunning.

Absolutely stunning.

Here.

The New Document Management and The Help Desk

It's funny.

Managed Print Services North American Conference: May 3-5, 2010 San Antonio, TX

The second North American MPS Conference is scheduled for May, 2010.

A good time should be had by all.

Some of the themes so far:

Managing RFPs
MPS - Financial models for MPS providers
Moving customers to stage 3, how to know when you are ready. How to identify the right customers for stage 3 engagements.


Additionally, just like in Europe, there will be a pre-conference seminar aimed at participants with less background and knowledge in the world of managed print.

Pre-conference sessions will be offered for both end users and channel partners. These sessions will concentrate on providing a solid foundation of the subject and offering practical strategies when selecting an appropriate MPS partner or provider for first-time MPS engagements.

Last year was good, the European conference better, this May should be stellar.

See you there!

Seeking Alpha: Will HP Remain the Leader in Printers and Ink?

From the Seeking Alpha site:

"We estimate that HP's (HPQ) Printers and Ink Cartridges business constitutes 24% of the company's stock price.

HP's printer business makes money primarily through the sale of ink and toner supplies for its printers.

HP's market share in printers has gone from 35% in 2005 to 40% in 2008. We expect HP's share gains to continue over the Trefis forecast period due to HP's strong relationships with large business buyers and its traction with consumers through its PC business which has also gained share in recent years."

However, HP's printing business is continuously at risk of commoditization. The company has been able to maintain share and some pricing power in this market through printing technology designed to limit the use of low cost (non-HP) ink and toner supplies, with HP printers. As low cost printers and printing supplies become increasingly capable, HP's printing market share along with its printing profit margins will be at risk.

If HP's printing market share were to decline to 2005 levels of 35%, the company could lose $6 billion of its value or about $2 per share.

Here.

HP IPG folding into PSG? Someday, HP Won't Sell Printers

Former HP CEO Fiorina targets Boxer's Senate seat

Holy Crap!

"If Fiorina decides to fund the campaign with her own personal wealth, this could be the most expensive Boxer campaign yet," said Rose Kapolczynski, a spokeswoman for Boxer's campaign. "We could be looking at a $30 million or $35 million campaign. ... She could do a lot to remake her image with that and do a lot to distort the Boxer record."

Couple this move with Meg Whitman's, former EBay exec, bid for California governor, and we've got two, ex-technology women maneuvering for a piece of political history.

Oh - and it seems each of them have more money the God.

Check out one story here.

And a contrary view here.

Managed Print Services: On the World Stage

MPS is the buzz globally, almost as much as when tray less duplex came out and analogue became digital...JUST KIDDING.

From the recent MPS Conference in Amsterdam:

“My expectations have been surpassed. I come from Dubai, and the market is hungry for this application. I am very impressed with the quality of people attending: senior executives, dealers, end-users…some very good discussion.” - Hakam Abu Rishesh, Gulf Commercial Group


“This conference is very insightful. It is the first time I have met people that actually understand MPS. I didn’t expect so many people. I think it is a great reflection on the interest in the market.” - James Du Plooy, Solution Worx, South Africa

Full Press release.

FOR IMMEDIATE RELEASE



European Managed Print Services Conference Hits Right Notes with MPS Professionals

FMAudit Renews as Platinum Sponsor of 2010 European MPS Conference


November 4, 2009 – Lexington, KY – The 2009 European MPS Conference held recently in Amsterdam was a successful educational event for the managed print services market, with enthusiastic feedback from attendees, exhibitors and sponsors. In a show of support, Platinum Sponsor FMAudit Europe/ DocuAudit, has renewed its commitment for the 2010 European conference, which will be held in Barcelona, Spain.

“The response to the 2009 European MPS conference was overwhelming. It is imperative that we continue to support efforts that bring ideas, best practices and valuable networking opportunities to this rapidly growing market,” said Jan De Kesel, President and Managing Director, FMAudit Europe/ DocuAudit,

Surpassing original attendance targets, over 140 people attended the European MPS conference, the first of its kind. MPS dealers, end users, vendors and infrastructure providers, along with sponsors and exhibitors networked and shared their experiences and knowledge. Participants commented on the quality of information, level of expertise, networking and contacts, and the overall value for their businesses.

· “Really, really interesting, it reflects the reality of the marketplace.”
Nicolas Bouillon, Blumega Technology, United Kingdom

· “This conference is great! It has given me the background of the players, services and competition—absolutely valuable to me!”
Maikel Bongers, Office Depot Europe

· “My expectations have been surpassed. I come from Dubai, and the market is hungry for this application. I am very impressed with the quality of people attending: senior executives, dealers, end-users…some very good discussion.”
Hakam Abu Rishesh, Gulf Commercial Group

· “Can’t wait to take this away and build on it. It’s great for developing market, great for bringing all these parties together and great to have an independent forum.”
Alan Kilminister, Gulf Commercial Group

· “This conference is very insightful. It is the first time I have met people that actually understand MPS. I didn’t expect so many people. I think it is a great reflection on the interest in the market.”
James Du Plooy, Solution Worx, South Africa

· “I am getting great feedback, everyone loves the diversity in topics.”
Stuart Rideout, LRS, United Kingdom

In addition to Platinum Sponsors FMAudit and HP, other European MPS Conference sponsors and exhibitors included Gold Sponsor MWA Intelligence, Inc., media sponsors BERTL Research and DocuFacts, LRS, Netaphor, Newfield IT, PerformIT, PrintFleet, SCC and other prominent MPS players.

“The interest in MPS has no boundaries. Attendees came from as far away as South Africa, Australia and Dubai to learn about MPS strategies,” said Ed Crowley, CEO and Senior Partner of the Photizo Group, which hosted the MPS 2009 European Conference. “The fact that FMAudit/DocuAudit has again committed its support as a Platinum Sponsor for the 2010 event demonstrates the success of this conference in meeting the needs of the marketplace and in bringing the right people together. It shows the importance that MPS leaders like FMAudit place on the MPS Conference as an educational forum.”

Over 20 different sessions addressed a broad spectrum of topics with speakers from across Europe providing expertise and insights. Along with the keynote presenters from FMAudit and HP, sessions featured MPS experts from Canon, DirectPointe, EKM4, LRS Europe, PrintFleet, PulsarTec, Konica Minolta, Leads City Council, LRS Europe, Nationwide Insurance, Newfield IT, Relevance Biz and SolutionsWorx.

Conference Content Focuses on MPS Success

The series of MPS Conferences address the urgent need for information about the fast-growing managed print services market. The Photizo Group estimates that the MPS market is worth over $25 billion globally this year and is projecting it will be a $60 billion market by 2013. Conference content features case studies, panels, exhibitions and interactive sessions that highlight successful approaches and practical ideas from actual MPS engagements. MPS decision makers, vendors and channel partners benefit from a rich agenda of relevant topics.

For more information about the MPS Conference series, visit http://www.mpsconference.com.

# # #

Media contacts:
The Photizo Group
Misty Hamel
617-921-5725
mhamel@photizogroup.com


ABOUT THE PHOTIZO GROUP

The Photizo Group is a leading research firm specializing in the analysis of the printing and imaging industry and specifically the Managed Print Services market. Photizo has become the market’s main source for ongoing business intelligence about the rapidly growing opportunity of MPS. Since its landmark MPS study released in April 2008 to ongoing research covering North America and Europe, Photizo has emerged as a leader in dynamic business intelligence about the MPS market. Clients include eight of the top ten imaging manufacturers in the digital

What Remains of the "Grey Lady"?: Google Might Buy New York Times

That's the rumor. This could be the shape of things to come.

2010, the year of the Tablet and perhaps the year digital and print media truly begin to merge?

Just a blurb, but still...

The Death of Print Continues -

Bowling Green Initiating Managed Print Services Program: Print Responsibly

Press Release:


"Print Responsibilty' campaign goes into effect

Monday, 02 Nov 2009, 11:11 AM EST

By Sentinel Staff

BOWLING GREEN, Ohio -

Bowling Green State University this week will begin to implement its Print Responsibly campaign that President Carol Cartwright announced during her State of the University address last month.

The program is described as a more cost-effective and environmentally friendly way to handle everyday printing and other tasks like copying, scanning and faxing.

The university will contract with a company with expertise in managed print services.

When fully implemented next year, BGSU will no longer purchase any non-specialized printers, copiers, fax machines or scanners.

The campaign is projected to save about $1.5 million a year and reduce annual consumption of paper by up to 40 percent.

University departments will not be responsible for purchasing toner or other materials, or maintenance costs, but instead will simply pay a per-page price for printed or copied documents. This will also give BGSU access to the latest technology.

Beginning Tuesday, the Print Responsibly team will be visiting offices and departments. The purpose of these initial visits is to confirm the inventory of printers, copiers, and fax machines and scanners.

The inventory is expected to take about four weeks to complete. Other visits will follow to discuss printing needs with the departments.

In November, ITS will begin a pilot program with several departments that have volunteered to be part of the launch. University-wide implementation of the Print Responsibly program will likely begin next semester.

A Web site to provide additional information about the program can be found at here.

Cartwright said there will likely be changes to the university's approaches to printing but expects the payoff for the program will be quite significant. She said savings will stay in the respective departments.

She noted the university prints about 70 million pages per year. With Print Responsibly, Cartwright expects to see a reduction in the amount of paper used of up to 40 percent or 28 million pages.
---------------------------------------------

DOTC - 70 million pages/year billed at let's say 0.0120 results in a revenue of $840,000; at the "standard" MPS GP of 35%, 294k in GP.

The "Hunters vs. Farmers" Sales Metaphor - It's Dead: Let's Break Out of The Box

2009

Within the MPS Ecosystem, the struggle is moving between back-room infrastructure and field-level acumen.

Just like everything else the "experts" attempt to do, we selling professionals, are being classified; boxed in, and commoditized.

The questions now are, "What type of person do I need to employ as an MPS Sales Executive?"

"How many appointments should my team generate to reach a close?"

"What is a good monthly revenue/sales/profit number an MPS rep should hit?"

It is apparent that the "copier mentality" is only a fraction of what is needed to bring home MPS Engagements. That is of course unless you simply start defining your CPC agreements as MPS Engagements. Whiskey Tango Foxtrot!

And by the way, if your manager/owner/principal is plugging MPS Assessments into your "normal" copier funnel, you know, "15 face to face meetings per week, 5 Demos, 3 MPS Assessments, 1.5 closes per week", you are far, far removed from an MPS Practice.

Managed Print Services is not a bolt-on marketing scheme.

So, does MPS need Hunters or does MPS need Farmers?

The answer is Both - The answer is Neither.

We need Professionals who can do both; who can do it all.

"Hunter" - Find it, Kill it, move on.

"Farmer" - Move in after the kill, bury it, water it, reap.

It may be just me but I tend to think of selling "farmers" akin to vegetarians. And as you know, another name for a vegetarian is a "hunter with bad aim..."

Hunter? Farmer? Hello, the 1950's called, they want their sales cliches back...keep this up and the ditto-machine will make a come back.

I don't care what anybody says, real MPS is different - it is a Hybrid process, Hybrid product, Hybrid service, Hybrid business model. How can we expect the same old selling models and formulas to prevail?

How can anyone presume to tell Selling Professionals how to go about selling MPS(Hybrid), if those selling professionals are not Hybrid themselves?

What? Huh? Am I saying that there is MORE to selling than PROCESS?

Am I?

Goodness gracious, great balls of fire! Should I feel a slight agitation around my neck? Like John had when Herod came by, ready to fulfill Solome's wish? (don't get it? Go here)

Yeah - sure, sales is more than process, tell that to HP/Xerox - I often wonder how the enterprise clients feel, knowing they are part of a "process". Perhaps they feel like Velveeta?

There are, without fail, little flecks of hope, sparkling in the distance whenever I hear somebody say they are looking to hire folks from outside the industry. People with Insurance or market/advertising sales experience - not a bad start, I understand the premise. But there are challenges here as well.

Any ex-AFLAC agent is going to absolutely Laugh Out Loud when his MPS compensation plan doesn't have monthly residuals for life. The insurance industry invented that model for crying out loud.

And you are going to tell them that after developing a relationship he gets a one-time hit, a pat on the back, and a kick in the buttocks? Really? And this fresh, new, vibrant talent is going to break down your door, demanding a MPS selling position because why?

HA! But encouraging...

This is my thought; don't let "them" define you. Try, endeavor, toil against the meat grinder. And the best way to do this is to improve yourself, for yourself not your boss.

Does this mean attending company paid, useless, painful, Death-by-Powerpoint, speeds and feeds sales training classes?

Yes.

Does this mean picking up a book, if they still print them, about the latest, rehashed from the 80s, business strategies?

Yes.

Does this mean making every, single plant tour or walk-thru a field trip, learning not only how many output devices exist, but also how they run their business?

Yes.

Does this mean that everything you see and experience is yours, not your bosses, and improves you as a Selling Professional?

Yes.

Does this mean that one, tiny atom in my fingernail could be one little...tiny universe?

Yes.

Disruptive Marketing? Let's try Disruptive Defining.

Here's a message for all of us in the trenches, trying to sell MPS against ALL COMPETITION, including internal competition: The MPS Ecosystem is wide open for excited, daring, bold Selling Professionals - we work for the person in the mirror, not the one scrolling through the Monday morning sales meeting slide deck.

Don't think of yourself as either a "Farmer" or a "Hunter". Be both, Be better, be more.


Copier Sales People Destroy Managed Print Services Opportunities: Daily The New SalesPerson - Death of the "Close"

Thoughts from the CDA Meeting: Adapt or Die!

Copier Deal Up For Re-Bid, IDAHO School District Hires "Consultant" to Help with RFP:LOL!

An update to the article written back in August, "Another "GACKED" Sales Forecast: Idaho School District Reneges on Xerox Deal" - RFP responses to be reviewed by the board in January; consultants guaranteeing lowest possible cost.

Pity the 34,000 students.

In July of 2009 the school board decided to go with Xerox after reviewing 6 or 7 responses - Xerox was some 10k per month more "expensive" than the second place bidder, Fisher’s Document Systems Inc.

The deal was to provide more than 120 copiers to the school district in southwest Idaho for 60 months.

Fisher's got ticked, challenged the RFP process and now almost 6 months later, the deal will be reviewed again and awarded, again. The Xerox bid included "bodies", Fisher's did not.

Who is to say that the district really needs Xerox staff roaming around the district installing toner and xerographic units - but the district is missing the humongous point, don't ya know.

The blaring error is the inability of these "molders of young minds" to recognize anything more then the CPC and equipment cost. The case is hopeless now, there is no way to focus on any cost savings other than lease payment per month.

No real savings.

Don't Hate the Player, Hate the Game -

Classic story really, the RFP process is inherently flawed and for decades we in the business machine niche have taken advantage of the short coming. That is of course if you consider selling equipment at 3 points "taking advantage".

Adding injury to insult, now there is a consultant involved. I wonder if his fees are taken out of the "savings" provided by his oversight.

We look forward to the award announcement sometime after January.

More Details on the HP Canon Deal & The IPG/PSG Merger: HP's Year End - Let The Announcements Commence

More details on the new alliance between Canon and Hewlett Packard:

- HP will begin advertising Canon copiers on its website on 11/1/09

- HP will resell imageRUNNER, imageRUNNER ADVANCE, and imageRUNNER ADVANCE PRO series

- Speed range from 23ppm to 105ppm devices

- According to Larry Trevarthen, HP’s Worldwide Director of Market Development, HP also has access to the imagePRESS production print products

- All the devices will initially carry the Canon name

- The products will be identical to what Canon dealers sell, including supplies

- Service will be provided by a Canon factory direct branch primarily. Only if there is no Canon branch in the area, will the service contract be offered to a Canon dealer.

- Canon currently has 60 factory branch locations, but will expand to 90 locations within 2 years

- HP will support Canon copiers with its Web JetAdmin utility

- HP will also modify its Universal Print Driver to support Canon copiers

- Starting in early 2010, HP will begin to develop its own print controllers for the Canon copiers

Canon announced it has purchased Document House, a $6.7 million Xerox/HP dealer in Scandinavia. It will now offer Canon and HP products only.

Canon stated that since Ricoh bought IKON, it has signed up only 23 new dealers in the U.S.

Canon announced it will spend $220 million to launch its own managed print services effort, with goal of gaining $1.1 billion in annual revenue by 2012.

---------

A recent report regarding the merger of IPG and PSG briefly stated that Vyomesh Joshi, HP veteran who leads the printing division, would leave the company in the coming months. - Wall Street Journal

"I think there’s some misconceptions that the nature of the relationship is such that we would deliver product to HP under an OEM basis where they would put their HP brand on it, but that’s not the case. All the technology that HP will source under this relationship will be sold under the Canon brand." - Dennis Amorosano, Canon’s senior director, solutions marketing. - Image Solutions Reseller