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Monday, December 8, 2008

HP Edgeline One Year Later - From SViP to OPS

The new HP, ex-Xerox technician with 19 years experience and the seasoned selling professional stand shoulder to shoulder staring down at the color, VGA, user panel. Each with the same thought, but neither wanting to say it out loud. The machine before them represents years of research and nearly 1 billion dollars in development costs.

Finally, and predictably, the sales executive turns to the technician and says, "You know what? This ain't a copier."

Since it's release in April of 2007, HP's CM8050/60 has slowly started making waves - however, the seas of the Copier Industry are at 20 feet swells. So much attention given to mergers and acquisitions and financial bail outs that any "ripple" contributed by Edgeline is lost.

To be fair, HPs goals were overly aggressive. To be brutal, HP underestimated their position in the market and the influence of all those perennially content, HP-Centric, Information Technology Directors. And to be just down right nasty, HP didn't survey the selling environment of the everyday copier transaction.

Just because your the biggest, and you product design is based on solid, real world data and you put your pretty, blue logo on it, doesn't mean customers will automatically buy it - There is no "Field of Dreams".

Into the Belly of The Beast - Copier Sales

Have you ever met anyone who likes their copier sales person?

Say what you like, the copier sales person is one of the most tenacious and stubborn persons in the world. He will maneuver, tact, approach and re-approach until the deal is his or the water is so murky his competition is spitting mud for 36 months.

It's a tough racket. And I do mean racket.
  • The copier folks know how to position cost per copy
  • They know how to sell not only the benefits of leasing but also the benefits of PURCHASING.
  • Thirty six, 48 or 60 months all can have benefits
  • "Spifs", promos, discounts, end of month, end of quarter, end of year pricing - file under mundane
  • Leasing, FMV, dollar out, 1-3 month deferred, extra points - yawn
  • Bundled service agreements or separate? Average Up time, no problem. Mean time between failure; machine to technician ratios; Response times vs resolution time, in our sleep
That's the copier world.

A world of ever changing product, hundreds of models, thousands of sales people and millions of pre-trained, indoctrinated customers.

What's the IT Service Provider world?

Words from the HP/IT service provider channel - "I can get you the best price,because I have already registered you (with HP/CISCO/manufacture de jour) ..how many do you need and would you like delivery on Friday or Monday?..."

Some of the statements heard "around the water cooler" and at various seminars, conferences, etc.:
  • Leasing - "...don't you just divide the sale price by the number of months...?"
  • ost Per Copy - "...explain to me how this works, again...? We DON'T invoice them for toner?...but isn't that how we make our margin, on toner?..."
  • Billing- "...wait, our clients are going to receive TWO invoices from us each month? and we bill for "clicks"...what the heck is a "click"??!!"
  • "Meter Reads - "... how do we know how much to bill them?..."

  • "Service Response Time - "...one hour!?...and four hours on site!...that's impossible. Nobody can do that, nobody..."
  • Total Cost of Ownership - "...there is more than just price? What do you mean, "distributed labor rate and cost per square foot...?"
  • Margin - "32 points!!! I don't treat my customers like that, they won't pay over 7%, max."
  • Misc. - "...what in the world is a MIL?"
From the copier dealer to the MFP manufacturer -
  • "your price is too high on supplies..."
  • "why don't you have 3-hole punch?"
  • "your price is too high..."
  • "why is it so difficult to get a "front end" discount structure"
  • "what do you mean, "explain to me how leasing works?"
  • "what do you mean, 'explain to me how CPC works?'"
  • "your machine doesn't have job build?"
So What?-

In one of my entries, I mention how HP is "above the Fray...". They chose not to purchase IKON and chose to march to a different drum. This I still believe, but it may be more akin to "tunnel vision" than Global Vision.

No matter how narrow or focused the vision, it still includes Edgeline and for years to come. For all the great technology, we are still simply talking about a device that puts "marks on paper" - no magic. In an universal sense, devices in this space, put marks on paper. They are all the same.

So, one year into this odyssey, a year that started off focusing on the machine, ends with a whimper but still with a vision. The next year may not be as dynamic as the past, but I am sure there will be more people looking down at machines and saying, "You know what? This ain't a copier- it's more."

"You can go your own way. Go your own way. You an call it Another lonely day...Go your own way"- Fleetwood Mac



- Edgeline -




Saturday, December 6, 2008

Photizo Group Sponsoring New MPS Leadership Awards to Recognize MPS Excellence

Press Release - article to follow at a later date -

Lexington, KY (PRWEB) December 5, 2008 --

For the first time, outstanding MPS innovators will be formally honored with new awards dedicated to excellence in Managed Print Services (MPS). The MPS Leadership Awards were developed to recognize organizations demonstrating leadership in implementing, providing or supporting MPS projects. The MPS Leadership Awards will be presented at the first annual MPS Conference April 26-28 in San Antonio Texas.


"The objective is to showcase MPS excellence and raise awareness about successful MPS programs and their benefits. MPS is gaining strength as an innovative, cost-effective approach to managing business resources, and the total MPS Market in North America and Western Europe will be a $26.7 billion business by 2012. As more companies and vendors adopt the MPS model, it's important to recognize their accomplishments in this increasingly important segment," said Ed Crowley, founder and president of the Photizo Group.

Nominations are now being accepted for the MPS Leadership Awards. The competition is open to any company or vendor involved in the MPS market. Firms of all sizes utilize MPS services, making the award nominations attractive across a broad spectrum of businesses. "In fact, 56 percent of MPS engagements are with companies with less than 1,000 employees," Crowley noted.

Awards will be presented in three categories:

* Corporate MPS Implementation -- Organizations that have implemented an MPS program and use an external vendor to manage the hardcopy device fleet

* MPS Vendor -- Dealers or manufacturers that provide MPS services directly to corporate customers

* MPS Infrastructure Provider -- Manufacturers, software firms and service companies that enable MPS engagements through technology, training, or service

The independent judging panel represents a broad cross spectrum of the industry. Panel members are Ken Stewart (Sharp Business Systems), Greg VanDeWalker (Great America Leasing), Greg Walters (SigmaNet), Kiran Sanghi (IT Executive), Gunnar Lundgren (former HP executive), and panel chairman, Doug Johnson, (former Print Inc. executive, RedSage Consulting).

Award criteria are based on a 50-point rating of MPS best practices and business benefits such as significant cost savings, productivity gains, or other improvements. The Photizo Group is sponsoring the MPS Leadership awards program, including administrative and webinar services to support the judging panel.

Anyone wishing to make a nomination should first complete an MPS Leadership nomination form and submit it to Doug Johnson, MPS Leadership Award Selection Panel Chairman (djohnson @ redsageconsulting.com).

Forms are available at www.managed-print-services.com/MPS-leadership.htm. All nominations are due by March 1, 2009. After completing a nomination form, a complete application form will be sent to the nominated company. Winners will receive free registration for the MPS Conference.

HP Reportedly Freezes Salaries - Pays for Performance

According to reports, HP dispatched the news in an email communique.

Bloomberg and the San Francisco Business Times report that HP is freezing salaries.

"We believe it is prudent and responsible to reduce costs where possible, including travel and event related expenses," said a company spokesman.

"That said, we remain committed to the principle of 'paying for performance'" She added. "High-performing employees will be rewarded and competitively compensated."

According to Bloomberg, HP will only hire workers for “revenue-generating positions,” reduce spending and limit travel to customer-related activities, all contained in an e-mail acquired by the news company.

Year end bonuses are still in play - and according to Silicon Valley/San Jose Business Journal, "The freeze will not apply in countries where they are illegal."

Predictable reaction around the net has been negative. One comment from Colombian.com

"...This is nothing more than a short-sighted effort to prop up corporate profits in a race to the economic bottom. It is a cycle that is not sustainable. It's economically better in the long run to have no profits and remain stable than to short your employees..." - Craig Williams : 12/6/08 7:42am---



Thursday, December 4, 2008

Free Photizo Group Webinar Examines Managed Print Services Outlook in Current Economic Environment

It's just an hour - that's all, one hour.

I have attended more Webinars and GoToMeetings over the past 6 months than ever before - it's no wonder.

And I rarely recommend these kind of meetings - but - the Photizo Group is holding a Webinar on the 11th and I do recommend this to all in the industry.

From the Press Release:

"Webinar attendees will learn why a bad economy may actually be good for MPS, according to Crowley. "This special session will offer a timely look at a critical topic for vendors and users of hardcopy devices.

By 2012, MPS will be a $26.7B business and will account for 35 percent of the total imaging market.

It's something we can't afford to ignore, especially in unsettled economic times like these. As the leading research and consulting firm tracking the MPS market, we believe it is important to clearly communicate how this market is changing, and why changes in the global business environment will fundamentally shape the MPS market over the next few years."


The stat is not puffery; 35 percent of the total imaging market will be MPS in 3 short years.

Why do I recommend this webinar specifically?

I have been following the Photizo group since last spring, and I am involved in some projects with these folks(full disclosure). They know what they are talking about when it comes to MPS, they come out of the industry and out of the trenches and have a keen insight on events to occur over the horizon.

If you work at IKON, Toshiba, Konica Manolta, CBS, RBS or any of the independent dealers; if you sell hardware alone- this hour is for you.

If you provide software and hardware bundled with CPC and MPS engagements - this is an hour meant for you.

If you cold call SMB on shoe leather or develop VITO letters and emails - this hour is for you.

It's only an hour - and yes, nobody on the line is authorized to purchase anything from you, but chalk it up to self improvement, industry awareness and enhancing the single most important six inches in your world.


For more information and to register for the free webinar, visit https://www2.gotomeeting.com/register/735057407.


Virgin Atlantic Selects EDS, an HP Company for Next-Generation Airline Reservation System

News Release :

EDS, an HP company, and Virgin Atlantic Airways today announced they have signed a new information technology (IT) services agreement that extends the companies’ 25-year relationship.

EDS has provided IT services for Virgin Atlantic since its inaugural flight in 1984.

New to this five-year agreement, EDS will provide the next generation of its airline reservations solution, EDS Reservation Services, a part of EDS’ Transportation Applications that EDS hosts and maintains on behalf of its clients. New features included in the solution are Electronic Miscellaneous Documents (EMD), which allow Virgin Atlantic employees to electronically capture and account for ancillary sales, and Ticket Re-issue and Refund (TRR) software that automates a formerly labor-intensive function and improves customer service.

“We are impressed with EDS’ vision for their new reservations platform and how this will enable Virgin Atlantic to exploit a service-oriented architecture (SOA) to provide improved customer services, greater agility and lower costs,” said Mike Cope, IT director at Virgin Atlantic. “This builds on our long-standing partnership with EDS during which time Virgin Atlantic has grown to become Britain’s second-largest airline serving the world’s major cities.”

Also new to the agreement, EDS will use its airline service-oriented architecture (AirlineSOA) that connects software and systems to better integrate Virgin Atlantic’s operations and help meet the airline’s unique market needs. Each of these new functionalities helps Virgin Atlantic lower core reservations services costs and add new revenue opportunities.

EDS will continue to provide passenger-processing services that include applications development and hosting of EDS Reservation Services, which handles approximately 6 million revenue passengers boarded annually for Virgin Atlantic.

“We have built a strong relationship and mutual trust with the Virgin Atlantic team over the last 25 years,” said Jim Dullum, vice president of Global Transportation Industry at EDS, an HP company. “Taking advantage of EDS’ latest technology, software development and delivery expertise and industry knowledge creates the right mix of IT innovation to support Virgin Atlantic’s continued success.”

EDS Agility Alliance partner Microsoft will provide select tools, software and resources to EDS in support of Virgin Atlantic. Together, EDS and its Agility Alliance partners collaborate to design, build and run a market-leading services platform and develop technology-based services to deliver tangible client results. EDS Agility Alliance partners include Cisco, EMC, Microsoft, Oracle, SAP, Sun Microsystems and Xerox.

As a leading transportation IT services provider, EDS’ end-to-end capabilities encompass air carriers, airports, cruise lines, logistics and modal providers, hotel companies and major reservations networks. EDS brings world-class technology solutions and infrastructure to help transportation and travel-related clients sustain competitive advantage in a highly dynamic global market.

Contact Me

Greg Walters, Incorporated
greg@grwalters.com
262.370.4193