How Your I.T. Contacts Look at Print Volume

11/2008

This IT professional illustrates the internal challenges those on the outside never see or appreciate. This is a long post, but get through it, it's worth the read.

Also, kudos to rIKON: The "IT's Fault" Perception and Karma - Written by Jay Rollins, Off the TechRepublic site, here. 

"So this week on the new job was interesting. As with many organizations, IT’s arch-nemesis, marketing, was having issues. They were trying to print these ginormous files on a teeny-tiny color printer and could not understand why they kept getting errors. Every time they would try to print to this printer the expected “belch…puke…putter” sound was heard and out would come a screwed-up rendition of what they were trying to print. And only one out of the 600 copies they requested. 

The challenge in this day and age is that everyone and their grandmother expect to be able to click “print” on a file and it just magically happens. And because 99.999% of printing is just that, “magic,” it becomes increasingly painful to listen to marketing complain to the CEO that they can’t do something as easy as printing a file. 

Now we all know that the phrase “it depends” comes into play here. My astute colleague at my new job reminded me that any PC has the potential to blow up any printer given the right opportunity. So how do you react? They just attacked you in front of the CEO waving the “incompetent” banner! You can’t come back and say that you can’t print a 10GB PDF to a home office printer and not expect a buffer overflow. That just sounds lame and you can see everyone’s eyes glazing over before you utter the words. Besides, we’re IT. We don’t look for quippy comebacks because we’re solution-oriented. We’re all about customer service. Right? 

Here comes Karma. I’m all about the root cause. 

We don’t have any desktop publishing expertise on staff, but one of our enterprising senior guys called up a graphic artist buddy of his to get some pointers. But before that happened, one of our other key guys already started looking at outsourcing solutions. Finding the experts in the field and making it their problem was a brilliant stroke of genius. We looked at the volume of printing that marketing was doing and called up our IKON partner. 

They came to the table with a proposal that was about even with what marketing was spending on their newsletters and calendars. But I followed my own advice and reviewed the entire accounts payable for the company. I discovered a ton of other printing the company was doing outside of marketing that actually made the IKON solution stand out. There were challenges. I was trying to keep marketing from chucking the problem over the wall to IT. I sent them the section of my spreadsheet of every vendor that I thought was a printing vendor. For anything that contained or referenced the words “print,” “promotion,” “publisher” or “press,” I asked them to identify vendors. In order to make this proposal work, we needed to establish rules and controls to fully realize the benefits of the IKON solution. 

All printing had to go through the centralized print shop. Accounting needed to be made aware that printing at Kinko’s could no longer be expensed. If the teams could not plan a week ahead to schedule their printing, then the old adage of “Your lack of planning does not mean my crisis” comes into play and there are no excuses. Additionally, one of the top five issues in the helpdesk gets outsourced. We were both stakeholders. But marketing continued to push back. I came to realize that this IT organization was all about customer service. 

They did everything for the business units even to their own detriment. I came from the school where you try to get the business unit to have some skin in the game, but we had our own customer service scores to attend to. So I found myself on the horns of a dilemma. I needed to make the changes in the organization to start making the business units more accountable for their projects, but at the same time, ensure our internal customer service scores did not suffer. 

After all, this was no small sum of money we were talking about.

"Then I started thinking about it. Sure, Marketing is the big customer for this, but we have the opportunity to save $300k per year if we include some of the other printing into this project. It calls for cross-functional coordination and involvement."

This isn’t a marketing project. It’s an IT project. 

Marketing had the opportunity to pick up a huge win for the company, not just for marketing, but they kept pushing it back on IT. But IT can see the true value of the project because we’re not looking within a silo. We are looking at this from an enterprise architecture standpoint. We’re all about killing multiple birds with one stone. Marketing got their dig in at the beginning of the issue, but IT turned that lump of coal into a diamond. 

Short-term claims of incompetence don’t ring true in the eyes of management anymore. We rose from the ashes of adversity! We overcame the obstacles! We….are getting cornier as I continue, but you get the point. Score: Marketing 0, IT 1. So I have had my fun here. This is an illustrative example only. IT will never succeed if there is a scoreboard. The “us versus them” thing is so counter to “team” it isn’t funny. When the time comes, I am not presenting this as an IT victory. 

I am presenting it as a marketing victory. Why? Because I need marketing on my side for long-term success. Marketing drives the business. They generate sales and revenue. I need to make them look good in the eyes of management. These little successes will give marketing the courage to try new things and start thinking outside of the marketing silo. They start looking at the company in its entirety and truly start believing that their job makes a difference. They start believing that and great things start to happen. Sales increase, productivity increases, salaries increase, and bonuses increase. 

 Karma.

 -----------------End Post "

I know this is a long post, but this is a typical situation. 

IT people think of their users as "customers" and they will do anything to keep those customers happy. Also, you can read that IT is sometimes perceived as a negative in some organizations - ok, a negative in most, and IT people don't like to be the "bad guy"(again most don't but some do like the "Henchman" persona)

InfoTrends - It's All About the Solution

And it's Deja Vu all over again.

I found this excerpt from an Infotrends article in Europe.

Very interesting but not all that surprising.

— InfoTrends —

Solutions Capture More Pages and Fuel the Office Equipment Market

In years past, InfoTrends has written documents regarding the adoption rate of solutions within the office equipment market. At that time, solutions were really in the early stages of adoption, and OEM vendors and ISVs were in their initial posturing stages as they were trying to determine how best to take advantage of solutions and how they would eventually fit into their overall marketing and sales strategies. While solutions are still in the early stages of technology adoption today, we have seen significant growth in this category over the years and believe that solutions have yet to reach their full potential for penetration within this market.

Although many dealers understand that solutions should be an integral part of their strategy, most are still in the process of figuring out how to incorporate them into their range of offerings. Their propensity to fall back on the hardware products they are used to selling is hindering them from migrating to the next level and fully embracing the true solutions sale.

One of the biggest issues is sales cycles. Hardware sales cycles have traditionally been shorter than a solutions sales cycle. Another problem is that many companies set monthly quotas and sales people are usually trained to focus on hardware as they can bring the numbers in at the end of the month. In reality, a sales person would not be able to push a solution in 30 days; the cycles are getting shorter, but it still may be impossible in such a short period of time. A solution sale is like creating a good bottle of wine. It is a slower process that needs a certain amount of attention and caring before it is ready to be consumed. Nevertheless, within the office equipment market, hardware is becoming more difficult to differentiate as vendors are bringing to the market devices with equivalent functionalities and performances.

There have been some disruptions in the market with HP’s Edgeline and Xerox’s solid ink, but it seems that these technologies need more time before they gain great acceptance in the industry.

One trend is for sure: hardware is becoming more difficult to differentiate.

It is becoming more of an easily replaceable commodity or accessory, and vendors are dropping their margins at a consistent rate to remain competitive in this saturated market. Hardware revenues are expected to plummet in the next five years and, as a result, some vendors have already started to realign their sales focus from “hardware placed” to “pages captured,” from “printers” to “printing.”

Solutions and professional services have been welcomed as the Holy Grail of the office equipment market as they can be a huge differentiator in a hardware sale.

According to Clayton Christensen’s terminology, solutions can be defined as “the disrupting innovations” capable of changing the dynamics and evolution of value in the office equipment industry.

On the wave of Web 2.0, end-users are also increasingly changing the way they create, manage, and digest documents and information. Customers are sitting in the driving seat and they are inevitably looking for a tighter control over their document workflow. They require effective device utilization, reduced costs, and a single-source supplier for their equipment needs. They want to drive their entire document life-cycle and decide how to consume the originated contents and information.

As a consequence, solutions have been deemed strategic in addressing these customers’ requirements as they can help capture more pages, reduce Total Cost of Ownership, and enable a seamless and effective document management. On top of that, InfoTrends has been talking about solutions as a key driver in pulling hardware sales and professional services engagements. The popular chart below shows very clearly the European solutions crossroads, predicting that by the end of 2009, the roster of hardware only players would be cut down to 50% of the field.

The preceding is an excerpt from a report entitled Western European Network Document Solutions Forecast: 2007 - 2012. To learn more about this report, visit our online store or contact Robyn Wuori at 781-616-2100 ext. 103 or via e-mail at robyn_wuori@infotrends.com.

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European report, but the phrase remains the same - All copiers are the same, all of them, every single one.

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.