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Wednesday, January 28, 2009

Canon to Employees - "Go Home - Make babies..."


"We can go home early and not feel ashamed." - Canon employee, Miwa Iwasaki.

Canon headquarters, along with 1,300 other Japanese companies, are forcing employees to go home early and work on improving the current national birth rate of 1.34. A birth rate of 2.0 is considered "passing".

With an average 12 hour work day going home at 5:30 is going home early for most Japanese workers. On it's own, forcibly being sent home early, is indeed a treat, but being told to go home and make babies - huh?

"Canon has a very strong birth planning program," says the company's spokesman Hiroshi Yoshinaga. "Sending workers home early to be with their families is a part of it."




HP Edgeline, Hawk? Layoffs for 200 - Moving Edgeline to Singapore...

Reported yesterday in the Columbian.com, HP is continuing it's downsizing of the Vancouver location and according to the article, "scraping its Edgeline team".

HP “is shifting prototype testing, as well as some work on research designs, engineering specifications and drawings, abroad, including to Singapore,” according to U.S. Department of Labor documents. This inkjet lab move will affect at least 52 Vancouver employees, a labor official said.

"Similar work done by HP’s Vancouver-based Edgeline Development and Operations Group will also move overseas, according to other documents. This will affect at least 93 Vancouver employees, who work for HP and for 15 related contract staffing agencies, the Labor official said..."

It doesn't look like Edgeline will go the way of the Hawks - but could OPS VARs be nervous?


UPDATE:

The Death of the HP CM8060 with Edgeline Technology has been Greatly Exagerated



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Monday, January 26, 2009

Do You Keep Canon, Flip to Ricoh or is there somenthing more...?

2009

IKON customers and independent dealers: what say you?

The Three Prospectives:

Customer: After exhaustive demo's, painful presentations of one copier rep after another, a dizzying amount of contract analysis, and final negotiations, you settle on a slightly more expensive, Canon copier fleet, provided by IKON.

Today you find yourself in the 2nd year of a three year agreement and your IKON rep wants to "move" you into a Ricoh.

Independent Dealer: You weren't around for the IKON/Alco Standard days, so you worked directly with Canon or Ricoh or maybe Sharp or Toshiba - over the years, you competed with Xerox, RBS, CBS, IKON and all the rest. You hesitantly moved from analog to digital, and heard all the "hoopla" around Electronic Document Management and "Solution Sales".

When Global came around you said, "no thanks...". You hired solid technicians who knew their way around belts and rollers and fusers and corona wires like nobody else. You delivered and set up copiers, and plugged them into the network - letting your client's "IT Guy" take care of the scanning and print drivers.

You remained true to the hardware.

As time moved forward, your collection of customers provided a steady stream of business - the owner often made sales calls.

RiKon Account Exec, Sales Person, et el: September of 2006 you closed and installed a small fleet of Canon copiers, 5020's and a 105.

Today, the agreement is within the 12 month renewal window, is part of your upgradable MIF and therefore used to calculate your yearly goal. You have always conducting your quarterly customer reviews, your service technicians have always been on time, and every service call has been a "one call, closed ticket" call.

Your customer's invoice has never been wrong, and overages have always been correct. Your customer and your crack Professional Services team toiled for months connecting the Canons to their legacy AS-400 system and getting the 105 to talk to the marketing department's Apple's.

Your customer loves Canon; but you don't sell Canon anymore, do you? And one more thing, nobody WANTS to buy a new copier but EVERYBODY wants to know more about this thing called Managed Print Services.

Also, this time around, your are setting down and talking with "the guy from IT"- not to discuss Documentum or KOFAX , you are talking about leasing, buyout amounts, and educating him on CPC and all of his overage charges.

This "IT guy" has five flat panel displays at his desk; one shows his network traffic, three are filled with custom built spreadsheets, he analyzes everything down to the granular level, the fourth screen is filled with WoW.

With a double click, he proudly shows you his "Copier Analysis Spreadsheet" - no less than 12 vendors names fill the first column, there are 23 columns of "decision criteria" - and this was one of your MIF accounts.

-----

It hasn't even been a year since the announcement of the Ricoh/IKON deal but the merger looks like it is working without too many hitches. There may be some "internal" challenges, but the systems appear to be working as it was before the assimilation.

Today, Canon/Ikon customers are considering three alternatives: finding a good Canon service provider, sticking with IKON, or moving to another manufacturer - Konica/Minolta, Toshiba, Xerox, etc - all very good hardware choices.

There is more - the tumbling economy presents an opportunity for companies, with the help of Selling Professionals, to cut cost like never before.

The opportunity to redefine a costly, inefficient purchasing process by sweeping away the old and establishing a new more holistic approach to implementing print fleets and reducing the number of pages copied.

So while Canon/IKON customers evaluate their position and options, trying to figure out how to maintain their fleets, I suggest one more alternative - re-evaluate the Customer-Copier Dealer relationship in TOTAL.

Ask a simple question,


Who says companies EVEN NEED copiers today?

We know who: Ricoh, Xerox, Canon, Konica Minolta, Sharp, Toshiba, Oce, Samsung and Kyocera that's who and for obvious reasons.

Sure, you may need a device or two that can copy documents coming from outside the organization - but how many of us, in the commercial world, still assemble anything more than a stapled document?

When speaking with current Canon customers, I suggest taking a deep breath and appraising the existing print fleet, print flows, printing structure, hard costs, soft costs AND the relationship with the current equipment supplier - are they a vendor or are they a Partner?

Additionally, observe the existing fleet through a prism of absolute need. Asking, "...do I need a copier here...? - back to basics.

This may seem foolish to some, bold to others, but at no other time in the last 20 years has a opportunity to change the model on such a fundamental level been presented: Back To The Beginning.

The New Born "Elephant in the Room" - Managed Print Services

The single goal of MPS engagements is to lower costs associate with printing - primarily achieved by reducing images printed and machines in field.

The days of an "assessment" leading to new hardware are fading fast, if not gone completely.

So one may ask, "...if a Managed Print Service engagement will reduce the number of copiers, how can a copier manufacturer approach Managed Print Services in an upfront manner...?"

The answer is complex. It starts with the definition of MPS or more specifically, who is defining MPS.

For now, the basic response is because copier companies are the only ones in a position to understand Managed Print Services - either as an ally or a foe.

Your Prospective:

Customer: Your choice is simple, the ramifications huge. Do you opt for more of the same, or get back to basics and boldly go forward in revolution?

Independent Dealers: Are you in or are you out?

Once again, your "days are numbered" - word of your demise is greatly exaggerated. As an independent, your are in the best position to profit from the turmoil. It takes commitment. It takes money. It takes vision, and you will need to burn your ships at the shore, again.
RiKon Account Exec, Sales Person: Do you stay with RiKON, jump over to Canon or join a smaller, more appreciative dealer? (Or do you go sell pharms.)

You have alternatives too - and there really aren't any "bad" choices.

Sales People in the Industry: The terrible economy will not last forever, and with all turmoil and upheaval, opportunity abounds on a personal level. Now is the time to evaluate your unique personal position in the world - to find who truly helps you for you, not for the corporate bottom line.

The Rikon deal, challenging economy, socialistic skewing of capitalism, all influence choices - "should I stay or should I go?" or maybe a more apropos statement is "...nobody moves, nobody gets hurt..."

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Saturday, January 24, 2009

Blogging for Print - "The Printed Blog"


Has Blogging come full circle or is this one last gasp of air before print media sinks into the depths of oblivion...

A new site described as "...the best of the Web on your Newsstand..." - what the heck is a "Newsstand"? has popped up from heart of Silicon Valley.

From the site:

"Blog Driven Publishing is Born!

The Printed Blog is the world's first daily newspaper comprised entirely of blogs and other user generated content.

The result is a revolutionary newspaper that reads and functions like a web feed - yet can still be enjoyed on the train or spread across the breakfast table, for an uninterrupted, pleasurably tactile experience..."

The phrase, "...pleasurably tactile experience..." intrigues.

It is my opinion that this one issue, "touching", is the primary reason we humans read books and newspapers - this primal process involves and evokes human touch. After all, reading is just story telling in our head - and story telling is the third most primal, human characteristic in existence.




As the number of players in the newspaper industry continues to dwindle, blame placed squarely at the feet of those "citizen journalists",news aggregators and Google, can it be possible that the newspaper of the future will be a collection of blogs, articles and tweets printed on recycled paper, twice a day?

"The ghost of Gutenberg has returned to live in San Francisco, only to die laughing. I repeat, old is new. Prepare to meet thy past." - Simon Jenkins, here.



Friday, January 23, 2009

Xerox - No Surprises - Earnings Below Expectations, Blames the Yen...


Sales of printers and other hardware plunged 15 percent as companies cut technology budgets. Customers are cutting orders and distributors are reducing inventory, Mulcahy said.

Late last year Xerox announced a restructuring plan that included about 3,000 job cuts, aimed at saving $200 million in 2009.

Revenue fell 10 percent to $4.37 billion.

Revenue from sales of supplies and services -- known as "post-sale" revenue -- fell 8 percent to $3.1 billion. Equipment sale revenue declined 15 percent to $1.3 billion, reflecting "weakened economic conditions around the world," Xerox said.

"In the fourth quarter, the continued weakening economy and rapid shift in exchange rates put pressure on the business," said Anne Mulcahy, chairman and chief executive officer. "Despite this challenging marketplace, we delivered $265 million in adjusted net income for the quarter and $985 million for the year."

"We continue to prioritize cash and productivity to give us flexibility in this uncertain environment," she added. "Our fourth-quarter restructuring will deliver $200 million in savings this year. And, last year we generated $1.7 billion in adjusted cash from core operations. We believe our strong balance sheet and disciplined approach to cost reductions strengthen our ability to effectively manage through these tough economic times."

The movement of the Yen, in just the last six weeks of the year, effected the reduction in margins - the movement was so quick, that the traditional action of pricing increase could not keep up. This dynamic resulted in 50% of the 10% downshift in margin.

Xerox MIF up 4% in December and an increase in color pages could not overcome
negatively "currency" issues which sliced into revenues .

During 2008, Xerox Global Services generated $3.5 billion in annuity revenue, a 3 percent increase over 2007.

Full statement here. (PDF)
------------

Summary

All in all, Xerox took hits due to global economic forces. Activity was only down compared to historical data - actual new color pages printed increase 18%(compared to an increase of 25% last year).

Also, shrinking orders from distribution, effected overall performance, although MIF increased by 4%.

And because, like all copier models, new agreements equate repeatable revenues/cash flow, etc, the big X is doing fine.

We should all be worried when Xerox starts to report a increase in defaulted agreements - meaning their customers are going out of business.

More Screens, More Productivity - How About This?

Jim Lyons mentioned how employee productivity increases if they use dual screens, as much as 44%. I wonder how much productivity would increase with this?

Thursday, January 22, 2009

Microsoft, Google - Join Intel, Lexmark with Bad News and Staff Reductions

Microsoft

"Our financial position is solid ... but it is also clear that we are not immune to the effects of the economy," Chief Executive Steve Ballmer wrote to employees in a letter. "Consumers and businesses have reined in spending, which is affecting PC shipments and IT expenditures."
Microsoft will be eliminating 5,000 job with 1,400 going immediately, the rest over 18 months.

Microsoft's staggered elimination of 5,000 jobs -- 1,400 immediately and the rest over 18 months.

Lexmark

The economic slump prompted customers to rein in spending, hurting demand for printers. Lexmark has already trimmed about a 10th of its workforce in two years to cope with slowing orders and competition from market leader Hewlett-Packard Co. The new job cuts are aimed at saving $50 million a year.

“We saw weaker-than-expected market demand for both hardware and supply,” Chief Executive Officer Paul Curlander said.

Google

Google said fourth-quarter profits fell 68 percent to $382 million ($1.21 per share), from $1.2 billion ($3.79) a year ago.

Much of the decline was attributed to a $1.09 billion charge for soured investments in wireless provider Clearwire and in the AOL Web portal. A settlement over copyright infringement with book publishers added $95 million in costs.

Intel

After reporting its first quarterly loss in 22 years, Santa Clara computer chip maker Intel on Wednesday said it will lay off at least 5,000 employees and shut five manufacturing plants.

AMD

AMD reported its ninth straight loss as PC sales slow, then stall, and finally fall.

HP - $8.3 Billion in Earnings - E.P.S. up to $3.25 from $2.68


"Fiscal 2008 was a strong year with some notable accomplishments ... We have prepared HP to perform well and are building a company that can bring meaningful value to our customers and stockholders for the long term," Hurd wrote. "Looking ahead, it is important to separate 2008 from 2009, and acknowledge the difficult economic landscape."

The annual report revealed the following:

* Revenue growth of 13 percent, to $118.4 billion
* $8.3 billion in net earnings
* Earnings per share of $3.25, up from $2.68 in 2007

Additionally, Hurd earned $42.5 million in 2008, according to the company's proxy statement, released Tuesday.


Earnings preview: Xerox seen posting tough 4Q Associated Press, 01.21.09, 02:56 PM EST


Xerox Corp. is set to report earnings for the fourth quarter on Friday ahead of the opening bell.

The following is a summary of article over at Forbes.

Xerox announced a large restructuring during the quarter, saying it would cut 3,000 jobs, or 5 percent of its work force, on top of the 1,500 jobs the company already shed in 2008.

Xerox expects the new round of job cuts to save $200 million in 2009.

On average, analysts expect fourth-quarter earnings of 34 cents per share on revenue of $4.72 billion, according to a survey by Thomson Reuters. Analysts typically exclude one-time charges from their projections.

Deutsche Bank analyst Chris Whitmore sees companies continuing to skimp on IT spending because of economic uncertainty.

"We continue to believe printing and copying are the most discretionary purchases within IT budgets and corporations are likely to continue reducing/delaying equipment purchases," he told investors in a recent client note.

On the other hand, Whitmore said "modest" revenue from the company's "post-sale" business - sales of ink and other equipment to customers who already own Xerox printing and copy machines - should help offset weaker hardware sales.

Post-sale revenue accounts for about three-quarters of overall revenue for Xerox.

Wednesday, January 21, 2009

The Death of Print Continues -

2009


Borders may get kicked off the NYSE, Newsweek and Time are writing "news for smart people", Google closes down its print ad program and The New York Times is getting an economic stimulus package from a Mexican.

You can not make this stuff up.


Borders Book Stores received a letter December 31st, warning that if the publicly traded company can't get their stock price above ONE DOLLAR in six months, the company will be delisted. Borders stock fell below $1 December of 2008.

Time and Newsweek are generating smaller, more serious, more opinionated and more liberal publications.

They are targeting a narrow niche of readers, in print and on the Web, and not writing for the masses.

With cut backs and layoffs, the old levels of editing and degree of fact checking do not exist in today's lean, mean survival culture.

And finally, Mexican mogul(huh?), Carlos Slim, is kicking down $250 million to the Gray Lady, which could make him the largest shareholder of the
New York Times.

The hot-cash-injection will be used to refinance existing debt and will provide the company with increased financial flexibility.

Carlos, started his empire in the cigarette business, moving into telecommunications, taking control of Mexico's state-owned telephone monopoly.

"He transformed a state-owned company into one of the most profitable businesses in the country," said analyst Jose Coballasi of Standard & Poor's in Mexico City.

He is considered the second richest man in the world.

And this just in, Google has announced that it will be closing Google Print Ads as of March 31st.

The service launched in November 2006 was to deliver the client base of Google Adwords to the print industry. Google was able to attract 50 or so newspapers to the program.

In an effort to evade the slings and arrows of the few remaining newspaper owners Google released this:

"We believe fair and accurate journalism and timely news are critical ingredients to a healthy democracy. We remain dedicated to working with publishers to develop new ways for them to earn money, distribute and aggregate content and attract new readers online. We have teams of people working with hundreds of publishers to find new and creative ways to earn money from engaging online content. AdSense, DoubleClick, Google Maps, YouTube, Google Earth, Google News and many other products are a part of our significant investments to innovate in this space.
These important efforts won’t stop. We will continue to devote a team of people to look at how we can help newspaper companies. It is clear that the current Print Ads product is not the right solution, so we are freeing up those resources to try to come up with new and innovative online solutions that will have a meaningful impact for users, advertisers and publishers."


PrintFleet Inc. Unveils Schedule For 2009 Dealer Seminar Events



January 1, 2009

GANANOQUE, Ontario — PrintFleet Inc., a global leader in managed print software and supporting professional development services, announced the 2009 dates of its industry recognized Managed Print Services Road Show Seminar Events.

With 30 seminars and more than 1,000 dealer principles, sales managers, service and IT executive attendees over the past three years, the PrintFleet Road Show seminar series has fast become a global industry “must see” for anyone looking to get serious about integrating a managed print service program into their business model.

Themed “The Sustainable Business Model” and leveraging bold statements such as “when times are tough, leadership matters” within promotional event materials, the series IV event promises to again deliver the same high-impact, practical approach to the MPS business model, but this time headlining with even more industry leaders catering to various segments of the printing and imaging channel.

The dates and locations of the road show include: Dallas, Jan. 21-22; Miami, Feb. 18-19; Irvine, Calif., May 6-7; Chicago, May 27-28.

“A clear enabler of the rapid growth of managed print services is the evolution of the dealer and reseller channel from a hardware centric sales model to a professional services model,” said Ed Crowley, president and CEO of Photizo Group. “Providing dealers with the tools and information they need to transition to this model is critical. This is why we are so pleased to be part of the PrintFleet Dealer Seminars.

In our research into hybrid dealers (dealers who are MPS centric and who combine the best of the IT reseller channel and the BTA dealer channel), one of the clear differentiators we have seen is that the best hybrid dealers are organizations who have learned the value of educational events such as PrintFleet’s Dealer Seminars to ensure they understand the latest thinking and best practices for MPS implementation.”

“These events are so unique due to their open, convivial atmosphere which allows dealer principles to swap war stories and share strategies of success with their various MPS programs,” said Laura Hunt, director of marketing and strategic partnerships with PrintFleet Inc. “Everyone is searching for the right method to deploy a managed print services program. This is why we have assembled a team of the best in class supporting vendors and industry analysts to help steer our new events. Series IV: The Sustainable Business Model will be the runway dealers are looking for to launch their MPS programs and gain further market share from their clients.”

The PrintFleet Road Show, Series IV: The Sustainable Business Model has a promising lineup of sponsors and speakers including: Synnex Corporation (event sponsor); Photizo Group (keynote sponsor); GreatAmerica Leasing Corporation, Parts Now!, Supplies Network, LMI Solutions and Compass Sales Solutions (partner sponsors). Other industry speakers include Lyra Research.

Contact Me

Greg Walters, Incorporated
greg@grwalters.com
262.370.4193