Canon Q4 profit jumps, sees further recovery

If it wasn't for cameras...yeah, I know its a Polaroid.
---------------------
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.
--------------------

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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3-D "Printers" - You and I would look at this and say, "that ain't no printer...it's a replicator from Star Trek"

2010

"that ain't no printer...it's a replicator from Star Trek"

Except for the one I just saw, at one of the most prestigious school's of design(and a current client) in the world, uses an Epson printhead.

Huh.

I was interrupting her lunch - my tour of Otis included all floors and the wood shop. Off the wood shop, my ad-hoc tour guide, pointed out the school's 3-D printers.

Having only heard of such things, I had to see and query whoever was around. How does this thing work and how is it being used by the students, I wondered.

What's In Store For You in 2010? Your MPSA Doesn't Have a Crystal Ball, We Got Ed - ;-)

Good Times? Bad Times? Which One of These?

Last year, at the 2008 MPS Conference in San Antonio Texas, Ed (CEO, Photizo Group) claimed that 2009 would be the "Year of MPS". I was there, I heard it and saw the slide-deck with my own eyes.


True to prediction, MPS is the hottest thing going, well at least in terms of discussion groups and industry buzz - hell, even iTEX is talking about the "hybrid-dealer". Ed should have trademarked the term. Anyway.

Your MPSA is hosting a quick Webinar, January 28th 11:00 AM EST - which of course means I will be attending in a bath-robe and leopard thong, feet up on the desk, sipping my java.

Aren't you happy we ain't doing the webcam thing?

Go here. Register for the Photizo Webinar.

While your at it, RSVP for the webinar February 28th, "The Anatomy of an MPS Deal" presented by Great America - good peeps all around.

Yeah, I doubt the young, bikini clad ball-gazers will be there, but you never know.

The DeathOfPrint or Just a Nap?

Stats from IDC.

I would take caution in our tone, when referring to the mythical "recovery".

The future ain't what it use to be.
-----------------

According to researcher, Jake Wang, of IDC:

- “Starting with the fourth quarter of 2008, we saw a definite drop in printer page outputs”

IDC uses computer software to monitor the use of 700,000 printers and MFPs in the U.S.

“It was like going over a waterfall.”

Total of 1.5 trillion pages for the year, or 5,000 sheets of printouts per man, woman & child.

Predicts drop of 10% in 2010.

“When an economy sheds million of workers, there are that many employees who aren’t doing the printing”

“I’m thinking fewer contracts are signed. Fewer documents sent from one person to another”

Expects increase in 2011 after the recovery.

Forrester Research predicts that electronic bank statements will start declining in 2010.

In 2007, the Securities & Exchange Commission stopped requiring corporations to mail out printed annual reports to shareholders.

As initially reported by: Neal Petermann CDIA+

Purchasing.com Chimes In On MPS and A4's in 2010

As the economy recovers, buyers look to office products for cost savings
Canon, Xerox, Sharp, HP and other office equipment manufacturers forecast 2010

By Nancy Hitchcock -- Purchasing, 1/14/2010 2:00:00 AM

As businesses look ahead in 2010, industry experts are "cautiously optimistic" that the economy will improve and predict that companies will continue to evaluate their office environments, implementing measures to improve efficiencies, increase productivity and cut costs.

"I don't believe anybody in 2010, as in 2009, is going to be spending money unless they're spending money to save money," says David Bates, vice president of product marketing at Xerox in Norwalk, Conn. "The good news is we're helping people save a lot of money."

Companies gain the most value out of their office equipment—often with assistance from suppliers—by adopting several solutions: They're implementing managed print services (MPS), consolidating office equipment, installing multifunction products (MFP), shifting from A3 to A4 devices and improving the flow of electronic information.



MANAGED PRINT SERVICES. Aiming to drive down costs, businesses review their printing infrastructure to assess where to improve efficiencies. Companies are leveraging expertise of office equipment providers to rightsize equipment and improve information flow.

"Companies have been offering MPS for a few years, but it is gaining traction now because with the economic times we're facing, it's a way for companies to lower their costs substantially," says Keith Kmetz, vice president of hardcopy peripherals solutions and services programs at IDC in Framingham, Mass. "I've heard from companies that they've seen as much as 50% savings, but probably on average, savings are in the 20% to 30% range."

Canon provides customers with tools and advice to better manage costs. "Typically when customers come to Canon looking for services, we help them analyze and understand the costs associated with their existing output environment," says Dennis Amorosano, senior director with solutions marketing and business support at Canon in Lake Success, N.Y. "They would be looking for recommendations like software tools and other technologies to rightsize their fleets and put in place the necessary infrastructure to help them manage those costs. We've been doing that for customers, and expect that to continue in 2010."

Konica Minolta assists clients with managing their overall print environment with its optimized print services (OPS) program that it launched in January 2009. "Over the past several years, we have witnessed a growing awareness in our customer base of the need to develop and deploy strategies to better manage their print assets," says Kevin Kern, senior vice president of marketing at Konica Minolta. "The solutions approach to the business is a critical part of helping customers be more efficient."

SIMPLIFYING PRINT PROCESSES. Another solution that companies implement to save money is to consolidate the number of inkjet and laser printers sitting on desktops and use more shared workgroup devices in the office. Centralizing equipment leads to fewer devices to manage. Companies can better control supplies and maintenance of the devices as well.

"Often, companies will have a range of different suppliers, contracts and leasing arrangements," says Kmetz at IDC. "It can become very difficult to manage, and it's challenging for a purchasing manager. Under a managed print services contract, you consolidate everything, and perhaps it's under one contract.

"The MFP fits into that device consolidation message," he continues. "It's not only consolidating the functions into one box—the MFP is not just a printer, it prints, scans, faxes, and copies—but you're also dealing with supplies management. If you have a fax machine, a printer, and a copier, they might be from three different suppliers, plus the purchasing manager needs to procure three types of supplies. If you have an MFP you're just dealing with one supplier."

The transition from single-function printers to MFPs is very strong in the color laser market, reports Kmetz. About 46% of the shipments in this market are MFPs and "that is projected to grow, reaching 53% in 2010 and upwards of a little over 60% in 2013," he says. "The strongest shift is in the inkjet market where that has pretty much turned over to a virtual MFP category."

In the MFP market, a shift to color still exists. "In 2009, we saw 27% color penetration in the MFP market and that's expected to grow to 31% in 2010 and continue to increase," says Kmetz.

Printing with black-and-white printers is still the lowest cost option for printing, he says, adding that the market will continue to operate with 80% black-and-white devices and 20% color.

A3 TO A4 STRATEGY. Another cost-cutting measure taking place in the market is a shift from A3 to A4 devices. As companies evaluate their printing and copying requirements, they're realizing that the majority of their output is on letter-sized paper, yet the majority of their printers and MFPs offer ledger-sized media.

"Purchasing managers should consider whether they could replace some of their higher cost, higher-to-maintain A3 equipment with lower cost A4 equipment and still have the same productivity and efficiency, but lower their costs substantially," advises Kmetz. "They'll still need A3 equipment but maybe not so many devices."

Sharp finds that many of its customers don't need full-sized MFPs and introduced a product line last year called the Frontier series. "The letter-sized MFP is a derivative product of our full-sized MFP and we've seen phenomenal growth," says Mike Marusic, vice president of marketing and service at Sharp in Mahwah, N.J. "That's where the market is exploding."

Sharp will also introduce the Frontier Scan Pro A4 MFPs featuring a more robust scanner to meet the higher scanning demands on an MFP.

ENVIRONMENTAL BENEFITS. Green initiatives will stay on the priority list because they also provide cost-cutting measures. "Overall, to us the environmental story and the cost story are exactly the same. If you reduce your environmental impact, you lower your cost," says Larry Trevarthen, market development director, laserjet enterprise solutions, imaging and printing group at HP in Boise, Idaho. "If you want to reduce costs, you can have fewer devices that run on more energy-efficient platforms. For example, instant-on technology, which we have on products, uses 50% less energy than competitive products, which lowers your energy bill. Another example is duplexing, which reduces paper and the paper bill."

Xerox launched the ColorQube 9200 Series MFPs in 2009, a high-speed solid ink device that eliminates 90% of waste because it has no cartridge; it uses a block of ink. MFPs lower costs by enabling customers to pay only for how much color is used on a page. "That's been popular because it's a completely different paradigm in the metered page world," says Bates. "Customers are buying the device because they're spending money to save money."

Canon's Bid for Oce in Jeopardy; Offer "Meager"

Jan. 13 (Bloomberg) -- Canon Inc.’s $1.1 billion bid for Oce NV may be in jeopardy after holders of 13 percent of the Dutch company said they won’t tender their shares and a group representing about 200 investors said the offer was too low.

Hermes Focus Asset Management Ltd., with 3.3 percent, said on Jan. 11 it won’t tender its shares, calling the Canon offer “meager.” Orbis Funds, with about 10 percent of Oce, in November rejected Canon’s bid. Investor group VEB, which represented 211 shareholders with about 0.003 percent of Oce at its last shareholders meeting, judged the bid too low.

Tokyo-based Canon, the world’s largest camera maker, may have to raise its offer or lower its minimum threshold to below 85 percent of Oce’s outstanding shares to see the deal through should more investors oppose it. With the takeover, Canon is seeking to expand its printer operations and widen its lead in the global market for office equipment.

“If Canon’s determination for completion of the transaction is strong, it’s possible the company will add some premium after discussing with Oce’s investors,” said Hisashi Moriyama, a Tokyo-based analyst at JPMorgan Chase & Co. “On the other hand, Canon could drop the plan, if the company judges adding premiums isn’t merited.”



Canon in November agreed to buy Oce, the world’s largest maker of wide-format printers, for about 730 million euros ($1.1 billion) in cash. The company said Nov. 16 it would pay 8.60 euros a share, or 70 percent higher than Venlo, Netherlands- based Oce’s last closing price.



‘Not in a Hurry’



“We believe we are offering an adequate price,” Ichisei Hanada, a spokesman for Canon, said yesterday. “There’s no change to our plan to start the offer by March 31,” he said. Canon hasn’t received letters from investors similar to those from Hermes and Orbis, he said.

Oce, which yesterday reported a fourth-quarter net loss of 23 million euros, closed at 8.59 euros in Amsterdam trading today, close to the Canon offer price.

“Looking at the share price, investors are not anticipating the bid will be raised,” said Niels de Zwart, an Amsterdam-based analyst at Fortis Bank Nederland. “The market seems to think: This bid will go ahead at 8.60 euros, no matter what these shareholders are saying.”

Since Canon has indicated that it will largely let Oce operate on a stand-alone basis in the first three years, it “may not be in a hurry to get 100 percent of the shares,” said De Zwart, who has a “sell” rating on Oce.

He said it is unlikely Canon will withdraw its bid entirely. “Canon aims to become the number 1 in printing and to get there, they need Oce.”



Canon Supporters



The deal would be Canon’s biggest purchase, giving it control of the world’s largest maker of machines that make blueprints and advertising posters. Ricoh Co., Japan’s second- biggest maker of office equipment, in 2008 agreed to buy Malvern, Pennsylvania-based Ikon Office Solutions Inc.

Canon’s offer was 1.2 times Oce’s projected book value per share for the year ending November, according to the average of six analyst estimates. That was in line with projected multiples at office equipment makers such as Xerox Corp. and Brother Industries Ltd.

Ducatus NV, ASR Nederland NV and ING Groep NV, which hold about 19 percent of Oce’s share capital, have agreed to sell their stakes to Canon, Oce said Nov. 16. Bestinver Gestion SA, holder of about 9.5 percent of the outstanding stock, provided an irrevocable undertaking to tender. Canon said on Dec. 1 that it held 25.3 percent of Oce’s ordinary shares.



‘Weakness’



Pictet & Cie, Sparinvest funds and Stichting Pensioenfonds ABP, which own about 5 percent each of Oce, according to Bloomberg data, declined to comment on whether they plan to tender their shares.

The Dutch shareholder association VEB said the price doesn’t fully reflect the savings that can be expected when Oce operates within a stronger group.

“Oce was negotiating from a position of weakness,” David Tomic, a spokesman for VEB, said in a telephone interview yesterday. “That makes it unlikely that a good price was offered.”

Orbis Funds, the Bermuda-based manager of $20 billion in assets that challenged Warren Buffett’s bid for Clayton Homes Inc. in 2003 and led investors in pressuring Citigroup Inc. to raise its offer for Nikko Cordial Corp., in November rejected Canon’s bid. The fund said Canon’s offer “significantly undervalues” Oce’s assets.



No Counterbid



“Shareholders need to consider if they want to bet on a higher bid and take the risk the whole deal is cancelled,” said Peter Olofsen, an Amsterdam-based analyst at Kepler Capital Markets, who recommends investors accept the offer. “The question is how far Canon wants to go to become the number 1 in printing.”

Hermes this week said Canon’s indicative bid was “a meager representation of the true value of Oce, when profitability potential and the depressed share price are put into a proper perspective.”

“Following integration with Canon, and with profitability in line with industry standards, the company’s equity would indicatively be worth some 75 percent more than the offer price,” Hermes said.

Oce’s management said it still supports the deal.

Fortis’s De Zwart said it’s unlikely there will be a counter offer for Oce.

“A bidding war is unlikely as other potential buyers already indicated they are not interested,” he said. Konica Minolta Holdings Inc., the Japanese lens and office-equipment maker, on Nov. 17 said it had no plan to counter Canon’s offer.


Oce Scraps dividend.

Your Managed Print Services Association Needs You - You Need The MPSA

As a reader of DeathOfTheCopier, you are part of an elite crew.

Thank you for visiting.

You should be part of another crew, the MPSA, let me tell you why.

Odds are, you're an owner/principal of a copier dealership. Or you're a new copier rep, a MPS Practice Manager, toner supplier, IT VAR or Seasoned Old Dog, you could be with one of the "big guys" X, I/R, or HP.

Your office may be a cube in New York City, the front seat of your car on the streets of Jersey or anyplace on the globe. Indeed, from to Japan to London, Amsterdam to Australia, the DOTC Universe is both huge and connected, a small world indeed.

Either way, you are a Professional, a unique individual, making your way.

The collective mind of the MPSA board is comprised of the sharpest, MPS oriented individuals on the planet. What's more stunning is that ego's and personal agendas are left at the door.

From defining MPS to establishing M.I.B. standards, the board is not backing down from huge issues for our industry. And yet, we remember our humble beginnings – the “down the street” sale.

Your MPSA is here for you – and by “you” I do not mean the fortune 500 gorilla X or the blue behemoth that is HP. I mean you – the manager reprinting one of my articles for the sales team, or you, the squeaky clean, new rep researching MFPs on a Sunday night and you, the grizzled Copier Dude, enticed into reading by the Girls of DOTC.

By “you”, I mean us.

Companies don’t bleed, or know the meaning of “sweat equity”, individuals do. A corporation doesn’t close deals, get commissions or pay taxes, individuals do.

To the core, the MPSA board is working for you, the individual - this is why I am pitching the MPSA. It isn’t that I do not appreciate the girth, substance or influence of the global leaders – I do.

All I know is that if all us individuals shrugged at the same moment, the MPS Universe would shudder.

So, with this in mind, I urge you to go to the site and become a member.

Try it. This improves you as an individual. As every assesment and presentation enhances your resume, the MPSA can be a touchstone for you as you sail the stormy seas of Managed Print Services.

If you have any hesitations, drop me an email and query me directly.

Go here now -

http://www.yourmpsa.org

Managed Print Services, Defined - DeathOfTheCopier Style

Two Decades in the making.

Managed Print Services, defined, has been an elusive seductress.

Trivial? No.

The crossing of swords, the arguments between Old Guard and Young Turk represent nothing less then a War for the Soul of an industry, our niche.

Consider this, manufacturing titans Xerox, HP, Canon, Ricoh, etc., need to, no, require, that THEY define MPS.

This definition, of course, to be in their likeness. It's called shaping the battlefield. It's survival.

There are literally billions of revenue and profit riding on this little rift. And the Big Boys are dumping millions of dollars, pounds, rupees and euro's into marketing, "research", and enterprise channel development.

Blogs disguised as industry forums.

Corporate sponsorship cloaked in dubious research studies and quadrant placements.

Press releases created in the marketing department, cut and pasted and presented as journalism, news.

"How To" classes and con-calls hosted by puppets, regurgitating the corporate playbook to a willing horde of minions.

There are two camps - one looking to the future, the other living in the past.

And here we are, you and I, stuck in the middle again.


Looking back at all the "defining moments" in MPS; the "Three Stages", the "Hybrid" approach, presented first by Photizo, then hijacked by old skool - all the manufacturer MPS programs, all the toner re-mans, service companies, computer VARs and BTA guys, they/we all have our own idea of what MPS is, our spin, our reality.

Failure appears to follow those who search outward for advice, before looking deeply into themselves - Know Thy Self.

So, here we go, the definition of Managed Print Services -

Let's start with GARTNER -

“the ability for the service provider to take primary responsibility for meeting the customer’s office printing needs, including the printing equipment, the supplies, the service and the overall management of the printer fleet."

Three mentions and variations of the word "print". Yuk, but at least the writer takes a stand.

And how about a word from Xerox:

"...MPS is an I.T.-based services offering that is enabled by technology; both Xerox and non-Xerox technology. Clients make decisions on services offerings based on credibility of the team they are working with, and the trust they can put in one firm over the other to deliver the desired results. Our people continue to shine in this competition because of their dedication, commitment and constant desire to learn and grow..."

Interesting, notice how Xerox, the traditional, mother of all document companies, refers to MPS as "an I.T. -based services..." everything else that follows is fluff and marketing.

And the Wall Street Journal

"..."managed print services," a variety of outsourcing in which the vendor takes control of the customer's production of office documents, typically owning the machines, advising on how to use them, and taking a per-page charge..."

Nice attempt; "outsourcing", "vendor", "documents", "owning the machines" - good lord, how many pigeon holes can one fit into?

Evolution Towards Defining: The DOTC MPS Ecosystem

Taped on a wall, right here next to my desk, is an 11x17 sheet of paper covered from end to end to end, with hand written ellipses, squares and arrows - my diagram of the Managed Print Services Ecosystem. (ok, how much of a MPS geek am I? ...sad really, isn't it...)

This sketch illustrates everything MPS involves and touches - and is still incomplete.

I know a more accurate and inclusive illustration requires that we don our "help me Obi Wan, you're my only hope...", 3D glasses, elevating this 2 dimensional model into the spatial, X-Y-Z Axis world.

We could then visualize The Ecosystem, The MPS Ecosystem from all angles.

Two more things - this 3D model is not static, all the parts in there are moving. And the MPS Ecosystem is always expanding, creating new worlds, destroying others.

Are you still with me or have you been amazed and stupefied? Hang on, take another sip of Jack - let's continue...

As I look at this sketch and imagine it's 3-dimensional cousin, two things dawn on me:

1 - this "MPS thing" is difficult
2 - there is no way to define it

uh-oh, what?

Indefinable. Shapeless. Amorphous.

Everything that ever was in office automation and everything that ever will be - That's MPS and it's only a DESCRIPTION.

It is my contention that all attempts at defining MPS amounts to nothing more than narrative and descriptive around how MPS works and what it does.

MPS can only be described, MPS CAN NOT BE defined.

Like the face of God, an attempt to define, to comprehend, leads to grey hair and madness. God cannot be defined. Only the results of His will can be described, remotely understood.

Managed Print Services, simply, Is.
-----------------------------------------

Anti climatic? Yes.

Liberating? Should be.

Happy New Year.

More on description vs. definition, here.

Happy New Year, Good Riddance 2009, Let's Rock in 2010

So here we are - a year gone, one more trip around the sun. A nostalgic look back, the bright embrace of a future unknown. 

And how will we measure 2010, a mere 525,600 minutes away? In midnights, laughter, strife or cups of coffee? 

For your enjoyment; one reflective the other celebratory, enjoy and Happy New Year. 

 

Toast to many Good Nights!

My 2009 Favorite Posts: 11

While reviewing the past year's worth of posts, I stumbled on some of my favorites and a few that churned up some interest.

The Death of Managed Print Services : Photizo Identifies The Fourth Horseman

Copier & I.T. Sales People - Skip the Product or MPS Launch/Training - Get Business Training

MaNAgeD PRinT SerVIces - Does it Really Matter How WE Define It?

Killer Toner is Back: New Study Confirms Laser Printers release "tiny toxic particles" - But so does making Toast.

12 Things I Hate About Managed Print Services

Danger! Danger! Anyone Who Sells in Our Industry, The Copier Industry: Change or Die. I ain't kiddin either

The Demo From Hades: This Is What Happens When You Take Your Eye Off Your Opponent

Is Your Managed Print Services Practice Customer Centric or Process Centric? - Maybe We Should Ask Your Clients.

The Death of Managed Print Services : Photizo Identifies The Fourth Horseman

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

Today, I Had Drinks with a Hero...

Clouds of Misfortune Rolling in On The Winds of Change: Copier Industry Next to Fall?

12/2009 -

"It's the End of the World as We Know It."

"The Future Ain't What It Use to Be."

"Fail to study history, doomed to repeat it."

"See, I told you so."

"I shaved my legs for this?"

The other day, I read a post over at Callinan's blog, here. It's good, it's about changes in our industry.

And Ken Stewart has a pretty good grasp on the subject as well, go here, and see his newly re-minted theme - it's to die for!

I've run into a flurry of statements, lately, like these,

"...copier dealers need to change or die..."

"...MPS is not getting the return we expected..."

"...the best way to sell MPS is to start with changing people..."

"...how can we adopt MPS when one of the MPS goals is to reduce MIF..."

"...this will kill the industry..."

State of California Shuns HP in Favor of ACS - EDS Fallout?

At first the announcement by California Department of Health Care Services, stating it intends to award a $1.4 billion, 10-year contract to Dallas-based Affiliated Computer Services, may not seem to fall within the MPS wheelhouse.

Under terms of the proposed contract, Affiliated Computer Services would process claims for 7 million Medi-Cal beneficiaries, starting early next year.

What makes this interesting to me is the fact that Affiliated Computer Services, ACS, has recently been purchased by Xerox.

And the current provider, for the last 18 years, was not HP but EDS - HP inherited the account when it purchased EDS.

Get use to this battle - HP and Xerox fighting over a "service", not hardware.

Still think I'm crazy about the "Death of the Copier"??

This could possibly effect some 2,000 jobs here in California.

Besides all the Xerox vs. HP intrigue, why is it that my state officials can possibly justify risking thousand's of jobs by not utilizing a Californian company?

I guess MPS is not the only place where logic sometimes does not prevail.

More here.

And here.

Merry Christmas - 2009

NER to Sell Imaging Supplies and Printer Parts Business Units to Clover Technologies Group

So, let me get this straight.

HP reaches out to NER as a "toner provider" less than six months ago, and that ISN'T enough to save a Division?

NER is selling off it's toner and imagining supplies division to concentrate and focus on Managed Print Services and Data Center Infrastructure.

The toner and supplies division is being gobbled up by Clover Technologies.

From the Clover site:

"...Founded in 1996 and with annual revenue of over $300 million, Clover is the global leader in providing businesses with total environmental solutions, including the recycling and remanufacturing of imaging supplies. Clover is the world's largest collector and recycler of cell phones, inkjets and laser cartridges. The complete line of Clover's quality toner and ink is available through leading office products distributors and resellers and marketed under a variety of private label brands..."
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Dropping the overhead intensive to concentrate on services - interesting.

GLASSBORO, N.J., Dec. 22 /PRNewswire/ -- NER Data Products, Inc. (NER) announces the sale of the NER Imaging Supplies division and its wholly owned printer parts subsidiary Image1 to Clover Technologies Group Inc. (Clover). The agreement will transfer all imaging activates including compatible laser toner, inkjet, narrow and wide impact ribbon production, and printer parts to Clover.

Clover will assume responsibility for the NER Denver, Image1 Plano, and NER Glassboro supplies operations that support these business units. Customer and vendor relationships will be assumed by Clover and business will continue at all of these locations. In addition, NER is pleased to announce that over 80% of the NER employees at these locations will become employees of Clover as of the first of the year.

"The decision to sell off business units is not taken without great consideration," said Stephen Oatway, President of NER Data Products, Inc. "Approximately seven years ago, we began the process of strategically transitioning the company from offering commodity products to offering value-added solutions. As a result of our efforts, we have become a leader in both Managed Print Services and Data Center Infrastructure Solutions.

In reviewing the direction of the company it was determined that a concentrated focus on these divisions was in the best interest of the company, shareholders, and customers moving forward. This strategic move allows us to focus resources on those business units that are poised for the greatest growth in the future."

The sale will be finalized December 31, 2009 and terms of the transaction are not disclosed. The newly reorganized NER will be strongly positioned to continue providing industry-leading Managed Print Services and Data Center Infrastructure Solutions to their channel partners and their customers.

Current customers for Imaging Supplies and Image1 products can find information about the business transition on the NER website -- www.nerdata.com

Managed Print Services Survey Over at P4PHotel: Xerox Didn't Sponser It, So Gartner Won't Cover It.

Art at P4PHotel has had a poll running for around a month - interesting and not so surprising results.

I have cut and pasted his entire article. You can find it here.

To me, this is a timely reveal, for I have, at this very moment, two separate "doom and gloom" MPS articles almost ready for post as part of my "Decade's End" run of pontifications.

Enjoy this.

Managed Print Service Poll "Review"

We've had this poll running for about a month now, or is it more like three weeks.

Ah, can't remember it's the end of the month, the quarter and the year and I'm being hammered every day about sales!!!!

Ok, back to the poll. We asked: You're now selling Managed Print Services "Your thoughts now". Basically tell us, it is working for you or not!

Here's the choices that vendors had to choose from and the percentages:

It's been a great success for us 27%
It's been ok for us 26%
It's not reaping the profits we thought it would 37%
If we had to do it over, we would not have gotten into MPS 10%

Very interesting to say the least, it seems to me that 47% or almost 1 out of every two vendors are not happy with the move. I thought it would have been more like 80% would have agreed with "It's been a great success for us".

I'm a follower of MPS, I believe it has it's place, however if 47% are unhappy, why is that? It's obvious that I can't answer that question, so I reached out to a friend of mine Greg Walters with Death of the Copier in Southern Cal, here's what he had to say......check back here in a few hours for the response!!

Here's Greg's opine:

You5 study does not surprise me. I know of a few very successful MPS Practices. But I have been taking many, many questions in the past 5 months all around getting an MPS Practice "going".

It seems that most MPS practices are set up on the wrong premise. Whether MPS is thought of as a marketing ploy to move more equipment, a strategic motion to secure existing accounts or a way to capture ongoing, single function volumes, most attention has been focused on "programs" and internal tactics.

We are ignoring or missing the Client in all this.

And...

All the MPS momentum gained from MPS ideas and programs and goals and potential is being bled off before it gets to the Selling Professional. Either the MPS philosophy is so weak, the sales person ignores and continues as always or the MPS philosophy is so complicated and nebulous, the sales person ignores and continues as always.

Here's the secret - Your study does note reflect MANAGED PRINT SERVICES problems, your study reveals basic, selling problems.

Put that on your whiteboard and gaze upon genius...

LOL!

Greg Walters
-=Good Selling=-

Coming at Turn of the Decade: DOTC DEFINES Managed Print Services, once and for all.

I know, you're breathless with suspense.


January 1, 2010.

2009 - "Copier Industry: Change or Die."

I was sitting in on a super-secret, MPS industry insider Webinar the other day.

I admit because I am all things MPS, little surprises me when discussing the MPS Ecosystem - except the freakin obvious and blatant issues that have been right in front of me all along.

I was half listening to the presenter answer the question, "how do we, as dealers, go from a Stage One MPS(equipment-centric) dealer to a Hybrid Dealer?"

Waiting for the inevitable, "you need Ownership buy-in" or the tried and true, "you need a strong infrastructure to support your MPS Team" and the ever popular, "retrain your Sales Staff", I was half paying attention.

Nope. Nadda, zip.

The answer was,

"CHANGE PEOPLE. It's too difficult to re-train from a transaction-based sell to consultative-based sell."

Shall I translate?

If you are selling copiers today, you had better change your ways and go with a company that still thinks they can train you into a consultative selling cycle before they figure out it's too difficult to teach old dogs new tricks.

But it's worse.

If the salespeople can't be changed then sales management can't be re-tooled, so they must go as well. Up the food chain, it goes until it ends with the King Bottle Washer himself, the Owner - on top, and all alone.

Granted, we should consider all factors. For instance, the fact that right now, there are likely 7,000 dealers, out of 15,000 or so, who have embraced MPS.

The old statistic (Photizo) stated that 50% of the folks who don't embrace MPS will be gone - but things have changed.

"CHANGE PEOPLE. It's too difficult to re-train from a transaction-based sell to consultative-based sell."

Now, if you aren't changing to the Hybrid Dealership model, not the iTex one, you will be gone.

That means that even if you do embrace MPS, if you aren't all in, you will be all out. Understand?

I know what you're thinking, "Sure, you big goof, copier sales are changing, but MPS is just the latest marketing scheme designed to sell more units. Everybody will need a copier, forever."

If you are a reader of mine, you may remember an article or two where I go off the deep end proclaiming that one day, HP won't sell printers. Yeah, right, I'm nuts.

A little History Lesson:

There once was a company, a global company, whose selling model included always sending at least 3 company representatives to every sales call. This company was the behemoth of technology. Large, foreboding, industry-defining - they told their customers what to order and how much to pay.

Nearly every person on the planet at one time or another had heard of this company. They were the barometer of American Technology - what was good for them, was good for the country.

America sent men to the moon and the back of this company's knowledge.

It seemed at times, that they would be around forever - selling bigger, faster, and more expensive devices. Devices are in high demand and built by only this company. Their equipment defined business processes and demanded their customers bend to the needs of the machines.

Who?

International Business Machines, Big Blue, Big Iron, IBM. In 1977, IBM had 300,000 employees.

The PS/2, ThinkPad, System 36, AS400 - OS/2, token ring...all gone. When IBM made the decision to move from the hardware business to business process and finally into Business Services - people thought they were nuts.

Manufacturing plants shut down. Divisions were sold off. Ten's of thousands of employees are gone.

How do you think those "big iron" salespeople responded?

Do you think the same people who sold these colossi one day just decided to offer business consulting?

No. No, they did not one day just decide to offer business consulting.

Sure, Big Blue tried to retrain. At the time, IBM's training regiment was known to be the best in the industry, the best anywhere; weeks were spent in Armonk, NY.

How do you think that went? Well, one day, somebody somewhere looked at this new business model, looked at all the training that had gone on, and then, glanced at the net new accounts list - it didn't add up.

So, did they redo their infrastructure or vamp up the marketing? Did IBM hire a bunch of consultants and try one more time to retrain the sales team?

Nope.

They CHANGED PEOPLE.

By the way, the one who let this cat out of the bag, was with IBM back then. Huh.

This has all happened before, in nearly every industry; technology, transportation, entertainment, hospitality, automobile...publishing, music...every niche...airports, filling stations, grocery stores, and retail.

Why should our little, 3 decades old, industry be any different?

I for one think we need to CHANGE PEOPLE. By CHANGE PEOPLE, I mean to change the way you are, not the members of the team.

Copier folks, anyone who sells in this crazy mixed-up world of output, are the most resilient and adaptive bunch out here, in the real world.

We can change. You can change.

Study history, or be doomed to repeat it.

12/14/2009

IKON, a Ricoh Company, Could Rule the Managed Print Services Ecosystem - Who?

At the bottom of the page, you may have noticed two graphs.

One showing the number of Managed Print Services Jobs offered and another reflecting Copier Sales jobs postings.

These graphs have been here for a while now.

The other day, I decided to drill down into these numbers and ran a quick query for "managed print services specialists IKON".

Boom. Twenty eight returns, from all over the country, posted within the LAST 23 DAYS.

Managed Print Services Specialst - IKON.

It's no secret I feel and have always felt that, on paper, IKON is the best positioned entity to jump into MPS.

Before RICOH, their position would have been stronger.

But today, with IKON's Facilities Management history and expertise, coupled with an absolutely stunning collection of supported Electronic Document and Workflow Management software packages, all IKON needs is to be a bit more hardware agnostic and shazam, MPS up to the Fourth Stage.

Check out my article back in July, here.

I know that was history - but, lately, for no apparent reason, IKON is popping up on my radar more and more - My MPS'dar, not copier radar.

What gives?

Well, looking at the locations where MPSS are about to be hired, I would say a national wave of MPS is what "gives".

IKON is on the MPS prowl.

Check it out, here.

The Printer and Copier Sales Decline in UK is "Over": Hurd's Word Tempered

Just over 1 million multifunction printers and standalone printers and copiers shipped during the 3rd quarter, in the UK.

This is down 3% from a year ago, but is not as bad as the 22% and 30% tumbles in the German and French markets, Gartner said.

Tosh Prabhakar, senior analyst at Gartner, was downbeat about short-term growth prospects.

"I cannot see things dramatically improving in the next six to nine months. The hardware is very mature and there are no compelling technologies that will drive the market forward," he said.

Remember Hurd's Words during HP's fourth-quarter financials meeting; he forecast a significant rebound in sales as companies upgraded ageing technology.

Pent up demand may lead to a call to that 800 number,(have you tried flicking it?).

Indeed, if Hurd's word is true, the inventory challenges of the LAST FOUR MONTHS, may be behind us by February, releasing the flood gates and fulfilling months of backed up orders.

Thus, resulting in an apparent, yet manipulated, rebound.

Not that there's anything wrong with that.

Source article here.


By the way, if you get the reference to "flicking" it, drop me a line.

Chattanooga Court: Judge Implements Behavior Modification, Reduces Copier Cost by 50%

If you are pitching MPS to the Chattanooga Court, the Judges have gotten you beat.

Assessment? We don't need no stinkin Assessment!

Judge Bales said,

"Our copier was breaking down once every six weeks before we restricted it to judges and our staff.

Since then our copier has not broken down in more than a year and we have reduced our maintenance and paper cost by more than 50%..."
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MPS can help you maintain HIPPA compliance:

"...We found one attorney xeroxing(ack!) 148 pages of medical reports that was not even related to any case in our court..."
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Don't forget how MPS can enhance your output security:

"We were able to restructure the offices of our staff this year securing our equipment and giving them a little more privacy and security."

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MPS reduces hard coffee costs and improves your ethical appearance, too:

"...Judge Moon said, "There are also major fiscal concerns as well as ethical concerns in closing access to our kitchen.

We have five judges and three staff members in our General Sessions Court. Only three of the eight drink coffee and yet we have previously had the highest coffee expense in Hamilton County for any office our size.

Our annual coffee bill was approximately $2,600 annually for only three people. After restricting our kitchen to judges and our staff and terminating a very expensive coffee service, the expenditure is now less than $500.

We have, therefore, saved taxpayers more than $2,100 annually..."

I am not making this up...here.