The Magic Quadrant: Reflection of MPS or Marketing Budgets?

"The New Matrix is here!  The New Matrix is here!"

So, yeah...

the Magical Matrix came out last month showing just about everybody - Xerox, Ricoh, Canon, Lexmark, HP, Konica - in the "Leaders" sector for Managed Print Services.

Kyocera and Toshiba end up as "Visionaries" - I guess an erasable copier can be considered visionary - and ARC looks to be the only "Niche Player".  I've always wondered if there is a correlation between the amount of money folks spend with Gartner and their placement in the upper right. Probably not.  Either way, the square looks skewed.

Reflect with me now and consider for a second the definition of managed print services:

"...The active management and optimization of document output devices and related business processes..."

If I had "Greg's MPS Almanac", this is how I would stack the pile:

1.  Xerox - Next Generation MPS
2.  Ricoh - The New Way of WorkIntelligent.ly

3.  ARC

4.  Canon - Fragmented but becoming clear

5.  Lexmark - Verticals, F500, transactional
6.  HP - Who? Except in LA
7.  Konica - Why sell anything but copiers with landed margins like that!

See, There's This Thing Called MIF and Apparently, It Needs Scrubbing...

One of the strongest arguments in MPS is lowering cost through the reduction of the number of devices.(Optimization).  This single leverage point is difficult for an OEM to reconcile as long as there are plants building machines.

I'm not saying players won't shrink MIF - Global loves shrinking Ricoh's MIF; Ricoh and Canon exchange MIF as often as Clinton flip-flopped and HP is out there reducing her own MIF.(Something to do with Ink vs. Toner and what-not)

In this year's Mystical Matrix, everybody except one, operates manufacturing plants and the one player is presented in the lower left.

Not to me.

ARC is different. Specialized and tasked with REMOVING DEVICES FROM EVERYBODY'S MIF, they're about as close to MPS Purity as possible.

Check out the progression:

And the Point?

Millions of dollars are spent by purchasers every year based on who is placed where and I don't think the Mystical Matrix has an once of relevancy in MPS.  The fact that ARC is placed in a lower quadrant tells me that Gartner's definition orbits machines in the field or images captured/under contract.  Which is a losing argument not for the future.

The companies mentioned aren't at fault - HP has a good MPS program, Xerox's is better; Ricoh has a solid MPS program, Xerox's is better.  But the comparison is on a GLOBAL scale. How many of you are selling to Fortune 500?

If anything, the ranking shows how similar ALL the programs have become. They're painting with the same set of colors - or worse - only one.  It would be as if Van Gough painted Starry Night with a single color.

Blah.

We've gotten to the point where all MPS programs look, act, feel, and taste the same.  Where touting the number of collected awards is part of a value proposition . In a world that increasingly regards 'expert research' as rear-view-mirror forecasting, why do we listen?

"No, Really, What's Your Point, Greg."

In a past life, one of my value-props started with, "You know mister prospect, all devices are the same."  I did this for two reasons:

1.  Neutralize competitors selling speeds and feeds
2.  I could sell five different lines

The latest slew of awards and accolades proves my point - all machines are the same.  Here's the kicker, this isn't simply my, personal view - more than likely, your prospects think the same way.  They don't care about BLI or Gartner - they barely think about print - the care about how you empathize and help them solve problems.

Simple.

The best to be done with any of these studies is to ignore and move on.



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I Have Seen The Future of Our Business and it is #Samsung. No. No it isn't. What?

This is what is known as an "Adobe Upgrade"

Dateline, 2014

Do I make fun of the tablet 'duct taped' to the side of a copier?  Yes.

Do I think end users will do whatever they can to avoid standing in front of a copier? Yes.  Even if we attache Netflix or Clash of Clans?  Yes.

Did Tod Pike sell AGAINST A4 devices just four, short years ago?  Well, did Samsung profits just drop like a 1951 era MIG-15?(good lord, google it) Yes.

"Oh, Greg.  Who are you pissing off now?"

Samsung -

Here's the challenges I see with the new user interface:

Reason One - Nobody wants to spend more time in front of a copier.

In all my years of working with clients helping them determine requirements for print and content management, I have never had a client say to me, "I wish I could find another reason to stand in front of the copier."  Well, except for government and education, but let's not get political.

Reason Two - 'Droid isn't a great platform

But what else is Samsung going to use, Yosemite?

Reason Three - The visual stinks.

Honestly, the unit looks like an engineer velcro'd the tablet to the side of a copier.  IKON'a DocSend - now that looked cool.

Hold Your Venom!

I know there are folks ready to fire off a terse comment or email my way, please don't hit 'submit' just yet.  Here are my reasons we should recognize this move as powerful genius.

Tod Pike has been able to get two divisions within one of the largest technology manufacturer's in the world, to come together and bring a combined package to market - in what? Two years?

I see the future of our business with fewer silo's and faster innovation to market - SPEED.

Think about your world: How easy is it for you to get Sales and Service talking?  Right.

How long did HP 'think' about Edgeline before hitting the streets? HP 3D? 2016ish. What train wrecks occurred whenever IPG was inside a PSG account - with a dealer and VAR?

In some organizations, speed to market is measured in 20 quarter cycles.  Our traditional OEMs have one gear to innovation. S L O W.   In this case, it looks like Pike was able to jump the curve.

Maybe there is a back-story and I am giving too much credit, it doesn't matter because Tod isn't stopping here.  He's working with Technology United, integrating Forza AT THE MACHINE LEVEL which would be a gargantuan undertaking for many, but apparently not Tod.

From the outside, it looks logical for a manufacturer of copiers, tablets and phones, to integrate products into a single package.  An example would be Toshiba integrating nuclear reactors inside their erasable copier.  But that's not going to happen.

Remember when HP printers and computers went together like,"...rama lama lama ka dinga da dinga dong..." (props to Olivia Nutron Bomb).

In a time when MPS messaging gets garbled from the board room to the trenches, seeing a company slap one department on the side of another and bring a product to market, is both refreshing and significant.

Cheers to the process.

####  UPDATE 12/23/2014  ####

Tod Pike as decided to move on, leaving Samsung in early 2015.  What can be gleaned by this turn?

I am not sure.

I can tell you this, the 'droid-tablet-copier will not land more units and if the consolidation of divisions says anything, its that they're shrinking and focusing on equipment based, transactional selling.  Box moving.

Now...let me tell you about a Intellinetics and their 'little box of wonders..."

Click to email me. 

Was the 2014 Executive Connection Summit "The Best Show Ever"? Really?

Well, well, well...40 years of evolution, and look where we are today.  

Scottsdale, AZ under the watchful gaze of one of the true gentlemen on the planet - Mike Stramaglio.  

Mike and I first met at a Lyra show and have had many conversations about the sluggish acceptance of the 'connected world' by our industry.  Mike's world has always been about new technology, M2M, P2P, and business engagements blooming into personal relationships.

He not only talked 'Star Trek' stuff but integrated our corner of the world into his talk track, discussing how "...imaging devices and other business equipment are inherently included in  'things'  'people', 'process,' and 'data' - the four components of the Internet of Everything"

Managed Print Services Was Here: Big Data Business Intelligence

From imaging to content to the cloud to Big Data to Business Intelligence to Mobile Business Intelligence.

May 2012-

We're moving from marks on paper to the clouds, all the data is moving off the paper files.

But the data is just data, unusable.

In the old days, we would 'crunch' the numbers either manually or on a spreadsheet.

Today, there is an app for that; instead of the numbers getting crunched on paper, it's being presented on a screen.

Typewriters and impact printers - are gone. Carbon paper, white-out - gone.

Add cubicles, office furniture, water coolers, uniform rental programs, IT departments, factory floors, inventory shelving, hi-los, truck docks, and pallets to that list.

Then take away the roads, parking lots, air conditioning units, and tons of paper.

And all those useless meetings. Gone like a freight train. Gone.

How so?

The answer is in the palm of your eleven-year-olds hand...

It's this new thing called Business Intelligence (BI) and BI's up-and-coming younger brother, Mobile Business Intelligence (MBI).

What is mobile business intelligence?

Here's the short version:

Mobile business intelligence is a set of tools that allows data from multiple databases to be connected, sliced and diced, and presented on your PADD, iPad, Android, or iPhone.

The data is live, sync'd, and in the cloud.

Your information is represented in pretty, colorful dots, bars, and graphs on a single pane.

For a decade the "remote" or "mobile" workforce has referred to the corporate sales team.

Executive management was still chained to the machine: Mainframe, Mini, Micro, PC, Laptop, or Notebook.

The C-levels were tied to devices because that's how they kept in touch with corporate data (JD Edwards, SAP, etc); converting that data to information and the information into intelligence.  Business intelligence is why they got paid the big bucks and the corner office with all the trappings.

Enter MBI.

Today, not only can the executives open and send emails, read magazines, and check spreadsheets they can look at live inventory levels, orders entered, web traffic, and conversions - from any spot on the planet, even at 37,000 feet.

Without teams of number-crunchers, accountants, middle managers, or MBAs.

But wait, there is so much more.

Big data. "Big" like we in the soon-to-be-defunct imagining industry have never seen.

Big as in every single page that has been generated from every single device ever sold. Big as in every single book, magazine, newspaper, blog, website, status, invoice, check, financial report, inventory sheet, delivery receipt, and email ever generated - BI taps into that and mobile BI lets me do it from the beach.

In Bali.

Don't think this only affects the imagining/copying/printing function - no, this reflects the changes in everything.

Because the growth of Big Data is not going to rely on humans entering the data - machines will talk to machines on the intake side of the process and machines will talk to machines during the data-crunch stages - ultimately presenting an intelligent and relevant representation to a person.

The human.  Yes, we're still part of the process, we've just shifted the 'grunt' work to the machines in the cloud, while we toil away on the beach.

Untethered In North Carolina - 2014

Lake Norman, NC. October 2014 -

I’ve been a digital nomad since 2007 as both an employee and a business owner.  In the early days, I remember feeling a bit self-conscious when I first used my laptop in a restaurant.  Those days are long gone.  Today, more people are ‘working remote’ than ever before.

Today, we’ll talk about two establishments worthy of your patronage.

I’ve quantified as much as possible, my criteria based on personal feelings and experiences culminating in a non-scientific rating system called “Mad Max Hours”(MMH) - a homage to the original Road Warrior, Max. The best is five, zero being the worst.  When I feel the establishment is a good place to work remotely, I give it higher hours - as in I’ll feel comfortable staying there for four hours and so on.

Today we look at watering holes with WiFi: Davidson Beverage Company and Carrburritos.

Selling Managed Services: Whose going to get Slapped Around?

10/2014

The oldest profession in the world isn’t prostitution, it’s selling.  One to one; one to many; many to many; retail; B2B; to that hottie in the corner; to your girlfriend, wife, sons, daughters, mothers, fathers, sales manager, cop, judge, jury; to ourselves – we all sell, and we always have.

Today, our industry is turning another corner – contracting and expanding at the same time. We’re looking for the next frontier and eyeing the IT cluster.

You're pondering selling servers, storage, networks and network management, aren’t you? Putting those monitors, PCs, switches and hard drives under one contract tied into a 36-month “rip and replace” strategy, right?

Sure.  How hard can it be?

Copiers have been connected now for more than a decade. All your devices scan; you’ve sold or heard of a “fax-server.” Your dealership has at least one “Content Specialist,” and RiKon/Xerox employs thousands of cycle-extending PS peeps – not that there’s anything wrong with that.

Again, how hard can it be?

Well, there’s good news, and there’s bad news. The good news is better than we hope; the bad news is worse than we think. It usually is.

The Bad News:

We have approximately 1,500 effective, well-run, imaging dealers/resellers in the U.S. The number of VARs is 15,000. The figure may not be accurate, but the scale certainly is; there are 10 times as many of them as there are us.

They are already in your accounts; they own the network, hold contempt for most salespeople and think they know more than you – which they probably do.

Hubris permeates.

They hate copiers – still – and love brand names. Even if Dell servers suck, once a Dell house, it is difficult to displace. They distrust those who wear a tie and can spot a Polo-shirt-wearing poser with their 'peripherals' – they are militaristic in the use of acronyms.

The Princes of the VAR are the customer-facing subject-matter experts (SME), the guys with all the letters behind their names. They are smart, certified and can speak in front of crowds or directly to CIOs – as peers. But don’t tell them that; most believe they have no peers.

Their deals are complex, multidimensional and project-managed. And I mean real project management – with resources, GANT charts and such.

Most likely, the VAR front-line salespeople, often called BDMs, never physically receive a PO or process an order; they have an inside team to do all that stuff. This gives them more time in the field, in front of their clients – your prospects.

The Good News:

VARs/IT folks don’t really sell; they take orders and write SOWs. They tend to throw technology at everything, yet employ little in-house. They’ve been trained to believe “real cold-calling” happens on the phone. “Sales training” is nothing more than a vendor like Cisco, Lenovo or HP coming in, spewing product, pricing and distribution data, then leaving “leave-behinds.” Yeah, I know – that part sounds familiar, doesn’t it?

Most VARs define “service” as pricing, logistics, deal registration, imaging (not the kind we know), prompt delivery, discounts and accurate billing (again, not the kind we know). Client relationships are built on “lunch and learn” giveaways and trading POs for iPads.

Transactional margins are in the single digits; charging for shipping equals margin. Back-end rebates equal margin for the house. Trip-fees are the norm, they have no idea how to manage to “call avoidance,” and trunk-stock is a foreign concept.

So, what to do?

Competing with a VAR head-to-head can be difficult. Especially when your prospect has bought into the belief that copier companies aren't sophisticated enough for real IT issues.  If you can get in under the VARDAR, you have a good chance, since most are not looking at MpS as a serious value-add.  Those who do are experiencing the same mistakes we did – YEARS AGO. They’re stuck in the “powered by” stage of MpS.

Three ideas, 2011:

1. Work with your existing purchasing/facilities contacts without raising much dust. Sell S1/S2 without talking about software, business process management or EDM. Don’t set off any IT red flags.

2. Shore up your internal IT services pedigree. Now is the time to re-evaluate your current talent pool. Tough decisions — there are fewer devices out in the field; therefore, fewer service calls. Figure that one out.

3. Reach out and establish a solid relationship with a VAR as their MpS engine. This is a temporary, parasitic relationship filled with teachable moments. Again, figure that one out.

The times, they are changing. At our core, this niche, the imaging industry, is crowded with resilient, business-minded problem-solvers. We can do this, and for a profit.

Three more ideas, 2014:

Prospect/Sales side:

1. Seek out companies who do not employ any internal IT support staff - resistance is guaranteed
2. Talk to the owner and confirm he values IT is a strategic component of his business model
3. Look at your internal IT. If you don't value IT services, you'll attract folks don't as well

Internal/Infrastructure side:

1. Partner with a master managed services provider like Collabrance.
2. Train your copier reps how to recognize and qualify IT services prospects
3. Do not call in 'managed network services' - why be chained to a network?



Originally posted by Greg Walters on 08/08/2011, 1105 Media.