Be Brave, Be Bold

TIPS FROM THE FAST GROWTH 100

I ran across this article, by By Jennifer Bosavage, ChannelWeb and it seemed pretty relevant -

She mentions three points, the second struck me -

2. Don't Overstrategize

"... some organizations' cultures lead managers to discuss goals and strategies ad nauseum. At some point, action needs to be taken. "We devote 10 percent of our time to strategizing and 90 percent to execution..."

Well. Ok.

Seems to me, that a bunch of Sales Managers and Managers in general should take a look at the way they manage.

And the Selling Professionals too - do we plan our week, all week?

Is it all planning and little execution?

Click to email me.

The Impact of IKON Being Acquired by Ricoh

2008-11-12 17:11:39 - On 27th August 2008 it was announced that IKON Office Solutions had agreed to be acquired by Ricoh,

which was then given clearance from the European Commission on 24­th October 2008. This deal was then made final on 31st October 2008 when shareholders agreed to the acquisition. As a result of this merger, IKON is now a wholly owned subsidiary of Ricoh.­ ­ ­ ­
­
It has been said that Ricoh have had a long standing relationship with IKON. With the amount of area coverage that IKON already have, Ricoh will be able to expand their US distribution ne­tw­ork by a substantial amount. The European Commission, upon deciding that there were enough competitors for all the products concerned, were able to give clearance for the acquisition of IKON by Ricoh. They found that no competitors of Ricoh are dependent on IKON's distribution.

However, IKON is a substantial company, with around 24,000 employees in more than 400 locations throughout North America and Western Europe, so ­the acquisition of IKON by Ricoh is bound to have some effect o­n the industry.

Before the merger, IKON sold and leased a range of products from manufacturers such as Canon, Ricoh, Konica Minolta and HP. It seems that Canon could be the manufacturer that is hit the hardest, as, according to Reuters­ (uk.reuters.com/article/innovationNewsTechMediaTelco/idUKT3216620 ..)­ 60 percent of the products handled by IKON were Canon machines, where as only around 30 percent were Ricoh before the acquisition.

Ricoh have said that they will replace all Canon machines with their own printers, photocopiers and multifunctional devices within 3 to 4 years.

This acquisition may leave some IKON customers in a difficult situation, because, although Ricoh have said they will continue to service other manufacturers of machine, they will eventually be replacing all their machines with Ricoh devices. This means that any customers using Canon machines will either have to change suppliers or manufacturers if they require a new device. For some customers this could be a difficult decision to m­ake as they could be loyal to Canon and very ha­ppy with the machines they already use, but see changing their supplier as a daunting task, especially if they have a large number of devices.

Fortunately there are some Canon suppliers that are prepared to make the transition as easy and as hassle free as possible. Some Canon suppliers are already seeing the effects of the merger, with an increase in the amount of enquiries coming from current IKON customers, perhaps indicating that some customers who already have Canon equipment are willing to stay loyal to Canon, even if this means changing their supplier.

The acquisition of IKON by Ricoh (­http://www.marketwatch.com/news/story/Ricoh-Completes-Acquisition-IKON-Office/story.aspx?guid={E4612AE5-D69D-4EC5-B735-AFA902F9197B})­ is bound to have some effect on the photocopier industry as I­KON is such a large company, covering a substantial area of North America and Western Europe. What will be seen ­is the effect this merger will ultimately have on Canon.

Already it has had some ­positive effect on some Canon dealers, especially those, such as Falcon Copiers, that already have a large customer base and are an established company with many years experience specialising in Canon equipment, making the transition from IKON to a new supplier seem an easy choice to make. Jon Tribe from Falcon Document Management says "Many IKON customers with a mix of Canon and Ricoh equipment will see a transition period where Ricoh service base takes president over canon. This is where a Canon specialist dealer can save the day." It is suppliers like these that will not only give existing IKON customers the chance to keep using Canon equipment, but also help lessen the impact on Canon. ­

Managed Print Services and the Economy

MPS and the economic landscape - what can it all mean?

Even with the financial woes of the 70s, 80s and 90s as a comparison, all indications are that this little "blip" on the financial radar is closer to an E.L.E. than any other time.

"Unemployment surged by 603,000 in October to 10.1 million, the highest level in 25 years, according to a survey of households. In the past six months, unemployment has leaped by 2.45 million, the largest increase since 1975.

"A stumbling economy seems to have been kicked down the stairs," said Lawrence Mishel, president of the Economic Policy Institute. "This is what a deep recession looks like."

Two issues:

What can this mean for output devices and office equipment sales?

And

What does this mean for the burgeoning Managed Print Services segment?

Not good for the first issue and better for the second.

It's simple really, with the "commoditization" of hardware and the reduction in margins, aren't we looking for the ultimate angle?

The "angle" is lowering costs? Lowering the costs for your customers right now is the most important issue.

Think about it, if you are reducing your clients' costs associated with printing, on a fleet of machines for a good number of employees - the savings your plan, your idea, your "solution"(gag) brings to the table may be enough to save one persons job - and there by helping to feed that person's kid or mom, or grandmother. Letting that one person go to Wal*Mart, or In-n-Out to spend money. And those Wal*Mart and In-n-Out employees get paid because your end user, and thousands of others, went their job.

You think sales people don't do anything?

You think your "job" isn't important?

You think we need more "change"?

When we sell, we change something, we always have - hopefully for the better.

Go Change Something.

The Economic "Crisis" Hits Home - American Express Part Duex

Third-Party Lenders IBM, De Lage Landen Cut Channel Credit

First it strikes customers and prospects, now the channel. 

From a Channel Web article, dated 11.10.08, by Scott Campbell - 

"Within the last week, Jay Tipton, vice president of Technology Specialists, saw credit lines cut by both American Express and IBM, moves that forced him to scramble to find replacement lines. "It takes time away from selling for me to work on this," Tipton said. "I don't know what I'm going to do. That's what I have to figure out."

Tipton said he got a call from American Express last week informing him that his line, which approached $30,000, had been reduced to about $10,000.

Technology Specialists used the line mostly to pay recurring bills, he said. "It got cut down to where things started bouncing," he said..." American Express told Tipton it was concerned that his monthly charges were too high. He said a slow summer caused him to delay a payment, but he had caught up by October." 

 And this regarding an entity I have written about before, De Lage Landen Financial: 

"...Meanwhile, Michael Bidwell, vice president of Know Problem Business Technologies, said a $25,000 credit line he had with De Lage Landen Financial Services through D&H Distributing was cut overnight last week,

"I ordered on Monday. I ordered on Tuesday. When I tried to order on Wednesday, they called to tell me it came back refused," Bidwell said. Bidwell said he called both parties, who blamed each other over the ending of the program. "They point fingers at each other but they never sent an e-mail or placed a call to their dealers," 

Bidwell said. It's likely that De Lage Landen pulled the program because it didn't make economic sense for the lender with so few customers utilizing it. Calls to De Lage Landen were not returned..." 

 For the independents and smaller channel VARs this is an issue. For your customers, this is an issue. For the larger hardware providers, K/M, RiKON, CBS, Xerox , this could become an issue - if not already.

Did Ricoh or Canon Win Regarding IKON?

Armchair quarterbacks - from some who have actually been on the field -

Over at the Document Imaging Networking Executives group on LikedIn, a discussion is brewing regarding the buyout.

The question posed by group founder, Jamie Schorr:

"Did Ricoh really “win” IKON over Canon or did Canon make a decision not to play?"

One of the responses to this question from Joe Salkin , Vice President of Sales and General Manager at Duplicating Products, seems pretty poignant:

"Canon made a decision not to play. Canon was given the option to compete for the business but decided not to bid. Canon has never wanted to own IKON or anyone else for that matter however I am sure they didn't want Ricoh to have IKON either. If Canon wanted to buy IKON they could have years ago at a much lower price.

Over the last 3 years IKON's business with Canon had shrunk about 30% based on increase sales of color by Konica Minolta Color products sold by IKON vs. Canon products, and by Canon not replacing the Production Color products that Xerox picked off. 2nd I don't think Canon had much faith in IKON's Management Team, or their ability to manage their sales force. Therefore I don't think Canon wanted the headaches that came with the buy of IKON. Remember just 5 years ago IKON was a $7B company and today they won't do $4B.

I do believe Canon is going to miss the 2500 sales reps on the street, and all the business that IKON got for Canon in National Accounts that Canon will now never be able to get on their own. However over the next 5 years you will see Canon introduce new and better products, get their costs more in line with the competitors, buy up dealers across the country, and open CBS stores across the country to replace IKON/Canon sales. They will take a shot over the next 5 years but each year that will be less and less until Canon makes all or most of it up.

Last but not least Canon made up a huge part of IKON's install base and many of those customers are loyal Canon users, like Canon products, feel Canon products are the best, and will want to stay with Canon products. Therefore while IKON/Ricoh will do everything in their power over the next 4 years to flip that base to Ricoh I can assure you many and maybe most of that base will want to stay a Canon user, therefore those customers will leave IKON/Ricoh and buy from either CBS but most likely a Canon Independent Dealer to stay with Canon.

In other words in 5 years from now the big winner out of all this might just be Canon. They kept 75% of their base, and picked up additional share by opening up new CBS stores, buying up dealers, and being more aggressive on the product and marketing end of the business model and they were not the ones who paid the $1.7B for the mess that Ricoh just got. Canon will lose share in the National Account game but they will get back the placements in accounts that pay more for their products.

The next 5 years will be interesting. One thing I can guarantee you Canon will not lay down and just give up share, they are going to be coming out swinging harder than you have ever seen them. From a person who sell both Ricoh and Canon today its the best thing that could have ever happened."

HP Card and Discounts - Total Care Access Card

Interesting...what is this thing they speak of?


I hadn't heard of this, but I saw a quick announcement and decided to pass it along.

In a nutshell, this looks like a "membership" card offering discounts and goodies - if anyone has seen or used it, let me know.

The HP Total Care Access Card provides exclusive access to software, services and discounts from HP and industry-leading vendors, making it easier for small businesses to manage, protect and grow their businesses while saving money.

"Our small business customers have told us they want to work smarter, protect their resources, and grow their names and businesses while simultaneously saving money, and so we've created the HP Total Care Access Card," said John Dayan, vice president, Worldwide Marketing Operations, Personal Systems Group, HP. "By combining HP's strengths with those of select partners, we can offer simple financing, security, energy savings, marketing, online backup and storage solutions in a single package."

Original article, here.

Managed Print Services and the Economic Environment - Good or Bad?

MPS cuts costs - so why are your not phones ringing off the hook?


Jim Lyons and the crew over at Photozio are asking you, me, all of us, how is the world treating you?

From Jim's post:

"...The Photizo Group is taking a ground-level view, too and in addition to more scientific approaches, we're going straight to our web visitors with a simply online survey. The purpose of this study is to gain your thoughts and views regarding how the current economic climate will impact the demand and opportunity for Managed Print Services (MPS). In return for responding to this survey, we will provide you with a copy of our September issue of the MPS Insights Journal, the only publication which focuses exclusively upon MPS best practices, issues, and user profiles..."


Head over and let them know how it's going in the "trenches". It's only five questions.

Ursula M. Burns- Xerox President - Shares Six Lessons Learned

She helped Xerox rebound, now shares six lessons learned, in the face of new challenges.

Burns climbed the ladder after joining the "X" in 1980.

And when Xerox was going through it's "troubles" back in the beginning of the decade - she negotiated with unions to reduce thousands of jobs. Not an easy task.

-"Right when you think you're set ... you get snafued," said Burns, who rose to the No. 2 spot at the iconic company in 2007. "You can hardly ever relax."-

Here are six lessons she learned from earlier troubles at Xerox.

Communicate. "Whenever you're in a crisis you have to talk," she said. And that doesn't mean dumbing down the challenges the company faces. Workers respond when executives are truthful.

Know the culture. Xerox has worked to build diversity of all kinds to gain a wide array of perspectives. That's a key part of its success, Burns said.

But it also has been bureaucratic and slow to change. Burns said navigating tough times requires embracing the best of the corporate culture and stripping away those parts that can hurt growth.

Have a vision. Xerox was beat up by the press amid its financial struggles. So, Xerox wrote a pretend front-page story that showed how it should be portrayed in the best of times.

"That was our aspirational vision," Burns said.

People matter. The best strategy devised by legions of consultants is worthless without a work force willing to adapt.

"When you're really in trouble, the people are what saves you."

Customers matter, too. "The customer is the center of the universe," Burns said. Xerox used to develop technology and expect customers to adjust. That didn't work. Customers aren't always right, she said, "but you can't tell them they're wrong."

Leadership is key. A bad leader will quickly destroy any progress. Good leaders are humble, focused and human. They "put the enterprise before themselves," she said.

Nov 11, 2008 (The News & Observer - McClatchy-Tribune Information Services via COMTEX)

Xerox Laying Off - Ceases Toner Production

At the plant in Oklahoma...

About 100 of the 170 employees at the Oklahoma City plant will be laid off and toner manufacturing will cease.

Officials say consumers are using newer equipment that uses different toners and the need for black toner product has decreased.

The Xerox facility broke ground in Oklahoma City 34 years ago.

Couple this with X's announcement last month of 3,000 layoffs globally, and the new plant in Webster and there really isn't any surprise here.

Xerox Reports Third-Quarter 2008 Earnings

(Norwalk, Conn.) -- Xerox Corporation announced third-quarter earnings of 29 cents per share.

Xerox said the profit edged up 2 percent, topping Wall Street's forecast, as sales to smaller businesses helped offset weakness in large U.S. corporations.

-Bigger companies bought less new equipment from the printer and copier maker-

crimping the Norwalk, Conn.-based company's sales growth and causing it to miss the consensus revenue prediction.

Xerox's sales grew just 2 percent, to $4.37 billion, short of the $4.47 billion that analysts polled by Jhomson Reuters were expecting. Sales would have been flat were it not for a weak U.S.
dollar.

Net income was $258 million, or 29 cents per share, a penny per share higher than the average analyst estimate. In the year-ago period, net income was $254 million, or 27 cents per share.


Check these out:

The Death of Xerography

Opinions, Everybody's Got One

Imaging Industry Wall Street Insider - New Blog

"Sub Prime"

In our industry, 95% of our transactions are leased and have been since the beginning.

Most customers and most selling professionals really do not know the intricacies involved with leasing and lease agreements and how the overall economic environment effect these basic pillars of our trade.

Well, I scrounged up a pretty good post over at Imaging Industry Wall Street Insider regarding this subject.

Enjoy.

And check out the Team at Woodford Group

Starbucks and HP?

"Put that Coffee Down...Coffee's for Closers

LOS ANGELES, Nov 6 (Reuters) - Starbucks Corp (SBUX.O: Quote, Profile, Research, Stock Buzz) said on Thursday that Chief Financial Officer Pete Bocian will leave the coffee chain at the end of the month to join computer maker Hewlett-Packard Co (HPQ.N: Quote, Profile, Research, Stock Buzz) as chief administrative officer.

Bocian, 54, had a short tenure at Seattle-based Starbucks, which has been closing U.S. stores as it grapples to revive its flagging domestic business amid the weak economy.

Bocian joined Starbucks in April 2007 from NCR Corp (NCR.N: Quote, Profile, Research, Stock Buzz), a maker of automated teller machines (ATMs), and became CFO in October 2007, a company spokeswoman said.

Troy Alstead, 45, Starbucks' senior vice president of global finance, will succeed Bocian.

RBC Capital Markets analyst Larry Miller said he held Bocian in very high regard.

"I'm a little surprised. He hasn't been there very long," Miller said, noting that it seemed like Bocian was moving on to a good position.

Still, Miller said, "Nobody likes change on the investor side ... Anytime there is a change in management it brings questions."

Toshiba Business Solutions Establishes New Market Presence with Its 55th Dealer Acquisition in Indianapolis HPS Office Systems

IRVINE, Calif., Nov 03, 2008 (BUSINESS WIRE) -- Further growing its nationwide network of wholly owned subsidiary operations, Toshiba Business Solutions (TBS) today announced that it secured its 55th organization through the acquisition of substantially all the assets of Indianapolis-based HPS Office Systems (HPS), a key market player in the upper Midwest.

HPS will transition to join TBS-KY/IL, under the leadership of subsidiary president, John Applegate. The acquisition of HPS is a strategic market entrance into Indiana that will enable TBS-KY/IL to provide continuous service coverage from Lexington to Chicago. Prior to this acquisition, HPS was an authorized independent Toshiba and Savin dealer with a successful 35 year history selling and servicing Toshiba products.

"HPS has had a long-standing reputation for outstanding customer service in Indiana that extends back to the late 1930s, so it is with great pride that we announce this tactical move to make HPS an official member of the Toshiba family," said Wayne Wilkinson, senior vice president/general manager, TBS. "This acquisition is a strategic move for Toshiba that will allow us to apply greater focus on this previously untapped market in Indiana, while further strengthening Toshiba's national market presence through its TBS channel."

With nearly 70 years of experience in servicing the Indiana market, HPS has a large clientele between its offices in the "Hoosier state," which includes locations in Indianapolis, Muncie, Bloomington, Terre Haute and Columbus. Previous owner, Leon Mordoh, began his career with HPS in 1965 and will continue to provide leadership at HPS headquarters as vice president and general manager.

"TBS-KY/IL is thrilled for the opportunity to integrate HPS into our organization, extending Toshiba's ability to reach Midwest businesses and provide them with world-class products and services," said Applegate. "HPS is well-known for its commitment to its customers, which perfectly aligns with Toshiba's culture and standards of excellence in innovation, service and support to its customers."

Recently, TBS also completed the acquisition of the assets of Rocky Mountain Copiers Inc. (RMC). RMC now is a fully integrated component of TBS-CO's existing operation in Colorado Springs, Colo. RMC was the 54th acquisition by TBS since its inception.