Wednesday, January 24, 2018

Who Helps You Reduce Costs? Copier sales people, managed IT folks, or Advisors?

Who will give you a leg up?


"You will never print another document ever again.”

I know you still have printers and copiers. But I know you’re not printing or copying like you had three years ago. If you’ve made business process optimization an initiative, then you know what I mean. I’ve also found that companies with no ‘green’ or digitization plan, have naturally reduced print. Some telling me, ‘we just don’t print anymore’. I also know players like Xerox, Ricoh, and Lexmark are experiencing great consolidation, and paper plants have shuttered across country. Indeed, from the WSJ, 1/2018-

"One of Xerox’s problems is that it has been broken into two pieces. A year ago, Conduent Inc. (NYSE: CNDT) was spun out. It describes itself as a “business process services” company, which makes it more of a consultancy than a seller of hardware. Xerox retained the hardware business, which sells products that may have been useful to businesses a decade ago but are no longer.”

Customers around the world, are organically reducing devices, copies and prints needed to conduct business- this has been going on for years. For companies like Xerox and Ricoh, whose primary revenue stream is generated with each sheet of marked paper, this is a formidable challenge. And like every shrinking industry before it, the copier niche is not going quietly into the night. For those of you left looking for a copier, it might the best time to work your provider for better pricing - just wait until the 25th of the month - everyone is scrambling and competing for a slice of a shrinking pie.

In the face of this turbulence, photocopier manufacturers and independent dealers are responding in one of three ways -

1. Selling themselves as a "document consultant” and trusted advisor, promising to help you manage your decreased reliance on print.
2. Selling to a larger dealer or manufacturer in an effort to cash out and retire.
3. Shifting away from copiers and printers to markets like IT services, water or energy management.

As you explore new ways to eliminate cost, you may fall within one of these stages:

1. You’ve implemented cost reduction program successfully and want to expand
2. You’ve implemented a failed program
3. You have no visibility into total costs

In each case, starting a study, correcting a misaligned program or continuing to reduce costs, you have three sources of partners:

1. IT providers(including your internal IT)- primarily supporting IT infrastructure
2. Copier/Print supplier & MpS Providers - hardware and software vendor within the copier/printer industry either through direct or indirect channels
3. Professional IT advisors - organizations who derive revenue through sharing subject matter expertise and managing change

No matter who you choose to partner, you should consider three important aspects of each:

* Agenda vs. intent
* Knowledge vs. Wisdom
* Neutrality vs. Bias

Let’s take a look at each:

IT Provider -

Agenda: To support organizational technology infrastructure
Intent: To transform with as little negative impact to end user environment

Knowledge: Deep ‘specification’ knowledge.
Wisdom: Experience and a varied history of supporting IT infrastructure in different types of organizations may give rise to wisdom or business acumen, but this is rare.

Neutrality: Not very. Comfortable with manufacturers they have a history with; CISCO, IBM, DELL and HP, etc.
Bias: To what’s been proven in the past or passes a proof-of-concept.

Copier/Printer supplier -

Agenda: to move opportunities to a close and their intent is to sell more devices/clicks.
Intent: Transform with as little negative impact to end user environment.

Knowledge: Deep ‘specification/machine’ knowledge. May posses basic scanning and onboard application knowledge.
Wisdom: Very little business acumen. Fresh sales professionals lack experience in varied customer, business models. Seasoned profess

Neutrality: Claimed yet impossible, therefore a lie.
Bias: Toward a solution that include's hardware sold.

Professional Advisor -

Agenda: Help client achieve business goals.
Intent: Establish an ongoing relationship.

Knowledge: Business acumen and technical prowess beyond the scope of the project.
Wisdom: Experience over time with many environments and business models.

Neutrality: Completely neutral and open to continuous evaluation of new solutions.
Bias: Toward a solution that supports the client business goals.

Conclusion -

Economic pressures on providers of equipment is severe. Machines are becoming more self-sufficient and easier to manage remotely, business requirements are changing from paper flow to digital flow. Even if your printing less than 500 images a week, you are a prime prospect for the remaining copier vendors - your company is guaranteed to be on some copier rep’s cold call list. There is no shortage of cost reducing value propositions, white papers and marketing material.

Continuously reducing costs associated with output is an internal function - asking teams of folks motivated to sell more devices to help you reduce the number of devices is counter intuitive - a provider with show rooms full of equipment pitching themselves as an “agnostic, trusted advisor” is disingenuous.

So who do you turn to? There are a thousand copier dealerships, hundreds of MSP’s and maybe a dozen proven, reliable and seasoned advisors. Of course, if you can find a good advisor, with an open calendar, I recommend engaging - but the odds are forever in the copier companies favor - it is simply math.

Here’s a quick recommendation:

If you currently support 1-20 devices, copier dealer and MSP
If you currently support 50-100 devices, MSP with Advisor
If you currently support over 100 devices, exclusively work with an Advisor who manages an optimized portfolio of suppliers and software providers.
Reactions:

0 comments:

Post a Comment