Interview: Printing in the SMB market - Lexmark

In an interview with Kevin Goffi, Lexmark international vice-president and general manager of worldwide SMB and printing solutions, Matthew Sainsbury, at ARN, asks abut Lexmark and Managed Print Services.

Here are three questions, the complete interview is here.

Managed print services is an area generating a lot of interest. How is Lexmark involved with its partner in this space?

KG: We’re involved on a couple of levels, and it really depends on the maturity level of the partner. Some partners are more leading edge, and have already developed the capability to do managed print services. In that case, they’re not really looking at us for expertise – they are after a hardware and supply model that will fi t into the type of solutions they’re creating for end users. At a grander level, we will work with partners to help them understand the business – we have a managed print services offering that we do for very large enterprises and have been doing for a number of years. We believe we understand business well, and we will work with partners to educate them on it.

To what extent do you see managed print services penetrating into the SMB market over the next year?

KG: We see it as becoming significant, and it’s directly coupled with the economy. I see this as an opportunity for partners. If an SMB is looking to upgrade technology, in many cases they might put that decision off until they see how the economic situation pans out. I’m seeing great partners and customers moving more quickly when there’s a managed print services offering than a pure hardware acquisition.

Security in the SMB space around printing – is it much of an issue?

KG: It’s a similar discussion to environmental sustainability. The difference between an enterprise and an SMB is that typically an enterprise is going to have a strict security profi le that they implement through their IT department. SMBs, especially at the smaller end of town, may not have their own IT department or person looking after that. They will generally look to their IT reseller to help provide that. The desire is there, but the SMB’s ability to implement that is not going to be at the same level as an enterprise – and again that’s an area I see as an opportunity for our resellers\

Managed Print Services Selling in One Week, Three different Cycles, Three different Results

April 16, 2009

For your consideration, three, real-world situations:

1. Business Owner - 3 machines, 23 employees. After 3 week evaluation, MPS documents were signed and Level 1 MPS was engaged. Competitive landscape, typical copier Sales person pitching reducing costs with all-in-one functionality.

2. IT Director - 114+ single-function units, 15 copiers, 150 employees. One appointment/week in the past three weeks. Copier and MFP fleet separation achieved, MPS project moving forward; copiers to be dealt with upon lease termination, 12 months out. Executive Management wants the project to provide clear, verifiable, Green friendly results.

3. Purchasing Agent - 98, single-function machines, 14 copiers, 200 employees. After two meetings, multiple emails, and 2 direct phone calls; no forward movement. Competitive landscape, Xerox partner pitching MPS/PagePack.

Can you guess the details of each Selling Situation?

More Crime - Office Depot Alleged to have Over Charged us, the US citizen, by 100 Million

I first caught this story over at the AnswerCo | Office Products and Printer Supplies Cross Reference Guide about how a disgruntled employee is claiming Office Depot had been overcharging the Detroit Public School system for supplies.

Of course, I figured it was just another angry, laid-off, red apron wearing, part time clerk, working the system for some extra attention or cash - I was wrong, way wrong.

From the Detroit News:

"...David Sherwin, a former senior account manager with Office Depot, alleges that the company manipulated pricing on products that government agencies bought through the U.S. Communities Government Purchasing Alliance.

"Nationally, the overcharging amounts are somewhere in the range of $100 million annually to between 4,000 and 5,000 agencies around the country," Sherwin said..."

This accusation is not being leveled by some part-timer, he was a senior account manager, and according to reports, attempted time and time again to alert the authorities to O.D.'s activity. Finally, this whistle-blower, committed professional Hari Kari dispatching a terse communique to Office Depot CEO.

The story could end there in Detroit - but it doesn't.

Florida, North Carolina, Georgia, Nebraska, Missouri and California all have cases, investigations or are expecting refunds from Office Depot.

California received 2.5 million back.

At issue, is Office Depot charging more than what was agreed to, on a national basis.

Apparently, this was easily done when government agencies and non-prof's ordered supplies via the Office Deport web site.

An Office Depot spokesman said the Detroit Public Schools has been buying supplies through the program since 2003.

"We are not aware of any complaints from Detroit Public Schools regarding overcharging," Jason Shockley an Office Depot spokesman said, denying the allegations.

Fact is scarier than fiction.

$100,000,000.00


UPDATE:

Apparently, the accuser threatened the CEO via email, while drunk. He has since gone through re-hab. I hate quitters.

Great read, here.

2009:First Annual Managed Print Services Conference and Association - Oh What a Difference a Year Makes!

4/2009-

The conference is fast approaching. We have had many "Go To Meeting" meetings. The awards have just about been determined, trophy's await the engraver.

I wrote my first article about Ed and the gang, April 15, 2008, one year ago, today.

They were the only ones out there talking about MPS - other than myself and a close circle of colleagues.

In that article, I quoted Ed, "“...It is important to note that the decision making process is less collaborative than might be expected. The market is shifting to an IT-controlled, printer-based MFP-centric environment, and study results indicate that IT is winning the battle to make the MPS decision for the entire fleet, including printers, MFPs and copiers..." - spot on.

In the beginning, there was no Xerox sponsorship, no special announcement from Samsung, no MPM (see the cool video, here.) And the idea of an association was months away.

Back then, HP sold Managed Print, Edgeline was "on fire" and IKON was, well, still IKON.

Today, MPS is just entering the "Trough of Disillusionment" on it's way to the "slope of enlightenment" - for reference, Confidential Printing is at the back end, on the Plateau of Productivity. If you don't know what the heck I am talking about, hit me up on email, I will share.

So it seems, today, there are dozens of MPS experts, hundreds of MPS providers and a growing number of consultants, advisers, mentors, blah, blah, blah - I know the real deal.

If you haven't got your seat, go register - it is going to be stellar.

I can say I was there, almost in the beginning.

Check this link.

Purchasers: You Wanna Know How to Work With Them? Read Their Book!

4/2009

In the movie Paton, the good General has read Rommel's book, 'Infantry Attacks' and in doing so, is able to anticipate and defeat the German in a key battle.

As Rommel's tanks retreat, the classic quote goes something like, "...Rommel, you magnificent b*stard, I read your book!"

As far as I am concerned, the Purchaser is the absolute LAST person you want to see, if at all, in the selling cycle.

But, for those of you who insist, I recommend you read their book. Find out what it takes to become a CPM and what exactly Strategic Purchasing means.

In this spirit, I submit to you an article written by Nancy Hitchcock over at Purchasing.com, New MFPs help meet cost-reduction goals and Green concerns.

Ricoh, Toshiba, Konica Minolta, Xerox and Sharp get good coverage - all A4 exposure and the article will give you a flavor for what some Purchasers may find important when considering MFPs.

Take for instance this passage: "...As companies strive to improve efficiencies and cut costs in this economy, office products buyers are taking a closer look at capabilities of new multifunction products (MFPs) which combine printing, copying, scanning and faxing in one device..." - Could this statement be any more "dated" ? Hello, the 2001 called, they want their copier brochure back.

Also:

"..In response to buyer demand, manufacturers of MFPs are designing systems that maximize workflow efficiency by offering faster print/copy speeds and making the systems easier to operate. They are also enabling organizations to add high-quality color to their documents at an affordable price to reduce the time and expense of outsourcing print jobs. High-performance products are packaged in smaller, more affordable machines. More advanced features enable users to automate workflow by distributing scanned documents to e-mail, FTP sites, archived folders and document management applications, for instance..." - Visionary, truly stunning...

Enjoy here:







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Ricoh can monitor Copier Power using IBM software

TOKYO, Apr 13, 2009 -- Japan's Ricoh Co. said Thursday that it has developed a system that can be used to monitor copy machines' power consumption in real time, managing multiple copiers simultaneously via a network to help a company save energy and cut costs.

This system uses Tivoli system management software from IBM Corp. and is the first fruit of the agreement forged by two firms in December to cooperate in information technology systems. Ricoh and IBM agreed to work together in development of products and services and to share global sales networks.

With the new system, the IT manager can use Tivoli to monitor all copiers connected to the network and remotely adjust the usage parameters for each machine in order to help the company meet its cost-cutting goals.

Ricoh said it plans to commercialize the system sometime this fiscal year.
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DOTC - The IT guys are taking MPS.

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Xerox - Contracted Employee Stole Ink. Sold It on EBay

"Xerox Corporation, at its Wilsonville location initiated an investigation into the apparent theft of solid ink sticks.

The Xerox Corporate Security team cooperated with the Washington County Sheriff's Office in this investigation, which concluded today with the arrest of occasional contract worker Ayad Al-Musawi."- Xerox

In reports from news media in Oregon, Xerox has been the victim of an inside job.

Ayad Al-Masawi, 42, a contract employee of Xerox was arrested Thursday.

He had nearly 10,000 ink sticks at his home and was selling it on EBay, under the pseudonym, “dodo_6666".

He reportedly sold over $150,000.00 worth of ink over the past year or so.

News report here.

Ricoh Hot Spot Printer - Art Post "hips" me to this one...

Ricoh is pleased to announce the introduction of the new Ricoh Aficio SP C420DN-KP HotSpot Printer. The SP C420DN-KP replaces the SP C410DN-KP.

What is a HotSpot Printer?

A Ricoh HotSpot Printer allows users to print documents securely simply by emailing the file they wish to print to a HotSpot Printer or loading the file to the HotSpot Printer’s webpage. Any user with an Internet-enabled PC, laptop, PDA, or cell phone can use a HotSpot Printer. With HotSpot printing, there is no need for Drivers, additional Software or access to the network hosting the printer!

Printing to a HotSpot Printer is incredibly easy. Each HotSpot Printer has a unique URL (web address) and E-mail Address.



1. Upload files to the printer’s webpage (URL), or forward E-mails – with or without attachments – directly to the printer’s E-mail address.
2. Receives a unique Release Code for each print job.
3. Enter the secure Release Code at the printer and retrieve print job.

HotSpot printing is convenient, secure, and easy-to-use.

Thanks Art...original here.

China becomes a regional leader in managed print service

China has become one of the leaders in Asia Pacific's managed print services estimated to reach US$1 billion by 2012, said Springboard Research Monday.

The managed print services (MPS) market is forecast to grow from US392 million in 2007 to US$825 million in 2011, according to the research house

"These robust growth figures indicate not just vibrant MPS marketplace, but they also reflect the emergence of MPS as the best growth bet for the print hardware vendors in the region, who have seen a decline of hardware sales amidst the economic slowdown," said Sanchit Vir Gogia, senior research analyst for Services at Springboard Research. "Enterprises in the region are eager to test and adopt the 'next level' of printing environment, presenting the MPS vendors with a growth opportunity in a difficult economic situation."

Doing More with Less:The PhotoShop Effect

Here's the deal, as technology helps us in all phases of our lives, printing, media, office, transportation, connecting and electing presidents at what point do the "machines" take over?

Social Media, Hyper-Media, Death of the Media, DiaMedia...all around us - at work and play and sometimes on more than one display.

When does the spectacular sunrise pop over the horizon only after the director says, "...cue the sun..."

When does, or when did, reality stop to matter?

This is a long way from Copiers and MPS - or is it?

To some degree, we in this industry are technology goofballs. We are. We know the difference between Kirk and Picard, between Starbuck and well, Starbuck; the difference between a BattleStar, DeathStar, and GunStar.

We grew up on Pong, The Brady Bunch and Charlie's Angels. We loved our first "carphone" and remember the first time we saw laser printer output held up against a 24-pin generated letter.

Oh, and we remember Gas Plasma displays, 256 shades of orange.

Want more proof of geekieness? As I am banging on the keys, in a HULU window, I am watching "Son of Godzilla" - you think that's wrong, it's a gift from mother nature.

So what?

From slick multi-pronged presidential marketing over Web 2.0, instant-on news tweets from Twitter to mob-journalism - What we see is not what is real.

Submitted for your approval - The PhotoShop Effect.

An example of how technology bend's time and space molding a psuedo-reality, first creating and then fulfilling our fantasies, one pixel at a time.




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Konica Minolta Imaging the end of the Danka Legacy

Pirate Mike has some good information regarding a pretty healthy lay-off over at Konica.

It goes along with another blood-letting I heard about at HP last week or so.

Also, I am hearing more about manufacturers cutting back in advertising thus effecting some of the industry's print publications - like all other print.

And a quick look at some local layoff announcements, Toshiba will be telling 120 to "hit the bricks..." May 11.
The times...

Selling Managed Print Services 101

2009

MPS is all I talk about...ok, not ALL. I do talk about Half-Life, Land Rovers and Paintball, but enough about me, let's talk about me...

I have been performing MPS assessments pretty heavily over the past few weeks and I find that although we have a great deal of tools, I am still making things up as I go along.

After reading Ken’s post I knew I had to complete my current article. Ken’s post resonated with me regarding the Tools of MPS -

Current MPS tools consist of spreadsheets, interview forms, data collection sheets, automated data collection devices/software, supplies cost matrixes, etc. 

All geared around collecting the Technical data, i.e. volumes, lease end dates, lease payments, overages, 11x17, first copy out speed, duplex...blah blah blah...this data is mundane and acquiring it is fatiguing, but necessary.

The data is one dimensional and any “monkey” can collect it.

Unfortunately to some providers and many customers this is the extent of the information used in the analysis. Even more disappointing, the assessment to some, IS the proposal.

The Second Most Important MPS Tool: The Interview -

When interviewing, many issues are exposed, some that may not at first seem to be MPS related.

The idea here is simple - the End User interview, the Director interview, and the C-Level interview are all treasure laden conversations. 

Corporate directives, cultural issues, political hurdles, and decision making processes all become apparent as progression is made through the organization.

As an example, I am currently working 3 separate assessments for 3 clients - one is what I call a "Mini-Assessment"; which means we are only looking at 25 copiers out of a fleet of 220.

The idea is to analyze these units for fiscal '08, get the refresh approved, and continue the study into year's end for fiscal '09 upgrades. The goal of this study is to form a Standard Requirements List for all future hardware/copier acquisitions.

The overall organizational goals are:

1. Reduce operational costs by 5% without “Reductions In Field”
2. Increase employee job satisfaction
3. Improve Customer Service

Covering All the Bases – Strategic Approach

When interviewing the questions asked important but the people you ask are much more important. This is my personal application of a strategic approach. I see four types of interviewee’s:

Your Coach

The Technicals

The End User

Project’s Economic Influence

Your Coach

This person is convinced that MPS is the way to go. And he wants to see the project (and you) succeed.

The Technicals

These folks hold “go/no go” over the final recommendations. Their perspective is on the functional issues of the program. They are focused on issues like network compatibility, end-user support functions, invoicing and billing procedures, and maybe all the way down to duplex capabilities of the hardware.

The End User

The End User must be satisfied. When interviewing and speaking with the End User you must have a clear idea of what direction the organization wants to move. For instance, if one of the basic goals is to reduce all the locally connected, desktop inkjet printers, check with IT to insure how they want to approach the subject.

The End User has a wealth of “everyday issues” that cause work flow bottlenecks. Their visibility into the organization is restricted but at the local level the information obtained can be very illuminating.

Economic Influencer(s)

This entity releases the funds necessary to move forward with the project. Interested in cost reduction and R.O.I. and is probably already spending a great deal of money.

These interviews are most likely the C-Level players. I do not recommend asking the CEO if “duplexing is important…”

Additionally, if while covering the Economic Influencer, it is revealed that MPS does not hold a high degree of attention, you may NOT want to proceed.

(See Strategic Selling for more on the above influencers)

Any successful project includes covering ALL these bases with relevant (from their perspective) questions.

Imagine – if you were to contact ALL the above types of users - your picture of the organization’s output fleet would be detailed to the nth degree. And hopefully, this data would allow to make a solid, agreeable recommendation proven to positively impact the organizations overall goals.

Want to know more? Check out Ken's articles:
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Managed Print Services: the Theory, the Tools, and the Targets (Part 1 of 3)

Managed Print Services: the Theory, the Tools, and the Targets (Part 2 of 3)

Managed Print Services: the Theory, the Tools, and the Targets (Part 3 of 3)


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