Lyra 2010 - The Rise Of Managed Print Services - Stage 3 and TheDeathOfTheCopier

Things are never going to be what they use to be.

I stopped in at the Lyra Symposium last week, in Palm Springs: The Road to Recovery.

The year is what it is so far, my schedule has been filled with activities associated with what I call, my "day job".

So, I was able to catch just one day, the day with all the MPS data and presentations.

I was present for 8 hours and can safely say, there were no copier reps in attendance; if by copier reps I mean folks who would be on the phone closing a single copier deal between sessions, which I do, there were none.

I also believe the majority of attendees may have sold face-to-face in the past, just not in the past 24 hours.

Be that as it may, the data presented by Lyra is priceless.

Especially to we who sell, we in the thick, in the smoke, in the fire.

I am not advocating every Selling Professional attend this and other symposiums, but, I do recommend getting synopsis or any other information you can, from your manufacturer rep or your sales manager (yeah, right, sure...).

Why?

Information is King in your personal, and professional development. Your "personal, professional development" might get lip service from management - but it is just that, lip service. When the chips are down, you tell me who gets the ax.

The more you know, the more you can see where your dealership/management is falling down and the easier it is to chart your own course.

My top five Value-Adds from Lyra- 2010:

1. Historical data mined from their extensive database of devices, monitored by PrintFleet, is presented in spaghetti graphs.
2. Detailed analysis of each copier and printer manufacturer's financial standing and projections.
3.  Unrivaled views of our industry, where it was, where it is, and where it might end up.
4. Current reflections and projections around the economic free-fall and the Day After.
5. And of course, especially this year, Managed Print Services and the "experts" who extol the virtues of MPS.

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The Number One piece of information, significant to me, personally -

The recession has bottomed out, but we will not get to pre-recession placement levels.

As a matter of fact, according to Steve and Lyra, we will be losing 2 million units in placement - they will never come back.

It's like 2 million copiers just died.

Huh. If only somebody had seen this coming and publicized his views somewhere easily accessible to others...that person could come up with a snappy title like, "Your industry is Dying"...or something...

IT IS THE END OF THE WORLD AS WE KNOW IT. - again.

Second, to MPS, the next big subject was the economy and the Road to Recovery.

The Industry -

In a nutshell, the industry leaders all sucked wind, some more than others, but still, they all ate it, in 2009. An occasional silver lining here and there, accounting trickery, but no surprises.

Steve Reynolds' presentation started by defining the Cyclical vs Secular effect of a recession:

Cyclical, meaning a temporary sharp drop followed by a sharp recovery

Secular, meaning the recession causes a permanent and fundamental change in behavior

I have seen for a year now, the economy changing the fundamental way businesses do business. Especially when relating to printing and documents - this is SECULAR.

To quote Steve, "...once enterprises have discovered and implemented more cost-effective processes with less or no printing, they will not go back..."

Indeed, monochrome laser printers, MFP, and color printer shipments will be flat through 2013. The only bright spot is color MFP with a moderate increase(approx. 250,000 units) between 2010 and 2013.

And if that isn't bad enough, Steve expects a price war to erupt.

You see, as the recession is declared "over", customers will creep back into the market with caution. Hungry vendors will be pressured into getting their share of the new demand.

The feeble and hungry will drop prices to move the product, the last gasp.

The strong and carnivorous will lower prices to kill the remaining, weaker players. It's a Japanese model practiced and perfected by Wal*Mart.

Imagine HP reducing their MFP pricing AND toner by 50%. An M9050 for 5k and $40.00 toner? Real, HP toner? Where's your MPS savior now, third-party toner guy?

Vector this with Photizo's and others' belief of a 50% failure rate, in the BTA channel, by those who have not embraced MPS we have ourselves an honest-to-goodness Perfect Storm.

Your customers are or already have realized they DON'T NEED AS MANY devices and that they don't need to stock thousands' worth of toner in closets.

Why? Because the recession made them look for areas of cost reduction, and the constraints of the last 4 quarters, forced all of us to do with less.

For example, did you lose customers because they couldn't get HP CM6040s even though they gave you a PO last August?

No, you, the VAR/Dealer didn't lose customers. You helped your client get through "these trying times" by encouraging patience and utilizing their existing systems.

Or maybe you helped your client extend his lease on a month-to-month basis. Copier still works?

We in the field didn't lose customers - HP and the industry, lost placements, lost "clicks" and lost face.

Managed Print Services -

Managed Print Services was all the rage.

Both Ricoh and HP talked about MPS, albeit from the Enterprise level. Well, to be fair, Tom Codd's (HP) presentation included one slide dedicated to HP's commitment to driving MPS expertise into the Channel - through Synnex, et el.

Another slide depicting HP's product lineup, in order to show the Canon relationship as a good fit, DID NOT SHOW EDGELINE.

Edgeline? What? Never heard of it...next?

Twice, the name "MPS" was assaulted as not adequate - especially the "P". The phrase "Business Process Outsourcing" was bantered about a couple of times.

It was felt that the current MPS ROI is immediate, but where does one go from there?

"One-word kid..." Software, the future is in software.

Yup, the Third Stage of MPS is, Enhance the Business Process. We barely get people into the 1st and 2nd stages and already stage 3 is upon us. Really? No, really? Business Process Optimization/Outsource?

Are we to expect a channel that still thinks color and duplexing are value prop's possess the wear with all to talk software and "business process"?

And SELL this? For Greenbacks? (which is just as good as money)

Right.

When a member of the audience asked, "...how do we motivate a copier salesperson to sell software?" the collective response was, are you ready for this, "...increase the commissions on software until you modify the salesperson's behavior..."

I nearly upchucked in my lap, right then and there. And I was a bit insulted. If I was holding a watered-down drink in my hand, I would have thrown it in their faces.

Is this all they, these experts, think to motivate the Selling Professional? A few more duckets?

We are truly doomed.

My summary:

MPS is now being swung around by the big players, the definition is being molded in their likeness and most of the data and "play" presented is a product of and pertains to, "Enterprise" level engagements. One exception that I can see, is Xerox. X seems to be working 'on'(instead of with) their channel, time will tell.

The economy is in a rebound, but our industry will never be the same. More ships will merge or sink, and more dealers will jump into MPS, listen to old skool consultants, run it as a Marketing Campaign and fail. Managed Print Services is a Secular change for dealers; it is not "just like when color came out..."

More MPS Professionals will end up working at OfficeMax, Staples, or RiKON.
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Transformers 3 Dark of the Moon - July

Another fix.

Love that Optimus Prime.


Transformers Dark of the Moon trailer
Uploaded by teasertrailer. - DOTC approved cool stuff

Canon Q4 profit jumps, sees further recovery

If it wasn't for cameras...yeah, I know its a Polaroid.
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TOKYO, Jan 27 (Reuters) - Japan's Canon Inc (7751.T) said its quarterly profit more than doubled as brisk digital camera sales more than offset sluggish demand for copiers, and forecast its first annual profit growth in three years.


October-December operating profit at Canon, the world's largest digital camera maker ahead of Sony Corp (6758.T), was 92.13 billion yen ($1.03 billion) versus 35.83 billion yen a year earlier. It was the company's first year-on-year profit gain in nine quarters.

Canon enjoyed strong sales of its single-lens reflex (SLR) cameras, a high-end model with interchangeable lenses, but demand for copiers and printers has yet to strongly revive as businesses worldwide curb spending on office machines.

For 2010, Canon said it expects its operating profit to rise 52 percent to 330 billion yen, beating the consensus for a profit of 319.8 billion yen in a poll of 21 analysts by Thomson Reuters I/B/E/S.

Shares in Canon, which competes with Xerox Corp (XRX.N) and Ricoh Co Ltd (7752.T) in copiers and printers, closed down 2.8 percent before the announcement. The Tokyo market's electrical machinery index .IELEC.T fell 1.6 percent. ($1=89.24 Yen) (Reporting by Kiyoshi Takenaka)

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MPSA 1st Webinar - Photizo: Managed Print Services in 2010 - "...the year of the Channel..."

Your MPSA conducted it's first Higher Education webinar.

Ed Crowley from Photizo presented his view of the year to come.

Attendance was strong, the questions pertinent.

Some of the news, ominous.

Not a crystal ball in sight.

Here are some tidbits...

In 2009 MPS moved from a "sales and marketing" program into a Core offering for most MPS Practices - and this will accelerate in 2010.

MPS is moving to the mid-market.

Customers are driving into the third Stage, Enhance the Business Process and software is the way.

The "definition" subject came up - one question, "...what is MPS? Fleet management, CPC ?" Ed's response, "...it's more then the fleet, it includes BPO, document flow and all the items of Stage 3..."

Scale? Systems need to be scaled from the 100's of devices up to 1,000's of devices; this is evolving.

80% of dealers are still "testing" the MPS market - remote meter reads only. A small percentage of dealers are managing their fleets. Not just marketing, not just a sales program, MPS is a change in business model. This is holding most dealers back.

Ed predicts that by 2013, 50% of resellers in North America will be out of business due to inability to be successful with MPS.

The MPS market will exceed $32 billion in revenues in 2010.

Finally, 2010 is the year of the Channel.

MPS as a practice, has evolved from a marketing scheme, or technique into a full blown, functional business model - we are at critical mass - MPS is being taken seriously now. We will see more and more emphasis on those, in the channel, who adapted to MPS, implementing a full practice.

"Hybrid Dealers" will start to take shape and form, with one national Hybrid dealer emerging in the next 3 years.
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This was a very informative session. Coupled with the recent Lyra content, the times are changing, again, the future ain't what it use to be, again.

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Governor French Academy: You Want to Cheat Kids? You Pay 1.2 Million.

This story I brought to you back in August.

Seems one of our colleagues decided to work the "leasing shell game" screwing kids out of dollars.

This is despicable.

The judge thought so too stating to the accused, "...You had knowledge, you had intent, look at the tsunami you've left in your wake."

If this case is not bad enough, according to testimony Welch, the bad guy, is accused of defrauding several other institutions, including the Christian Activities Center in East St. Louis, the Okawville Senior Center in Okawville and the Sparta and Oakland community school districts.


BELLEVILLE -- An Okawville man accused of orchestrating an elaborate photocopier scam was ordered Tuesday to pay $1.2 million to a private school in Belleville.

In a courtroom packed with students and parents from Governor French Academy, St. Clair County Associate Judge Andrew Gleeson told Kevin Welch that his actions over the last decade showed a pattern of, at the very least, intentionally confusing customers about the leasing agreements he set up as part of his copier business.

"You had knowledge, you had intent," Henry said. "Look at the tsunami you've left in your wake."

In the civil suit, Governor French Academy accused Welch of creating a pyramid scheme of copier leases. Welch allegedly got the school to lease two copiers, and the school then signed leases for what they believed to be new machines, with payment going to Welch.

When new copiers were needed, the suit alleged, Welch replaced them and said the new lease agreements nullified the old ones. But Welch neither paid off the old leases nor returned the old machines to the leasing companies.

Welch, representing himself, denied wrongdoing, saying that the school should have understood the lease terms. "I had no intent of damaging these people at all," he said.

School attorney Kevin Stine said the seven lease agreements for 14 copiers that Governor French signed left the school with more than $500,000 in bills to leasing companies.

Moreover, according to testimony in the one-day bench trial Tuesday, Welch is accused of defrauding several other institutions, including the Christian Activities Center in East St. Louis, the Okawville Senior Center in Okawville and the Sparta and Oakland community school districts.

The judge said that the testimony persuaded him to add $700,000 in punitive damages over the school's losses. "It scares me what you've testified to," Gleeson said. "I need to send a message."

Parents and students watched the proceedings, and the judge commented before the lunch recess on the strong attendance.

Parent Deile Smith said that what Welch did to the school was more personal than business. "What he did was put a very good school in jeopardy of closing its doors," Smith said. "As a parent, it angers me."

The school had said last fall that Welch's fraud could send it into bankruptcy.

Welch said during his testimony that he was in dire financial straits. He left the courtroom without comment after Gleeson's verdict.

A spokesman for the Illinois attorney general said the state is investigating Welch's scheme.

Governor French Academy files another suit alleging fraud in copier lease: Marlin Leasing
A "Pyramid Scheme" in Copiers - The Struggles of Governor French Academy Continue
More Copier Leasing Crime: How Would You Like to Be Sued By SEVEN Leasing Companies?



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