june 2010 office technology
DESCRIPTION
Office Technology magazine is the magazine of the Business Technology Association, an association of copier/MFP dealers.TRANSCRIPT
Service Success in MPS
How to avoid & correct
common pitfallsby Mike WoodardStrategy DevelopmentHaving been responsible for MPS
service delivery at previous employers, as well as
being involved in helping our clients succeed in MPS
as a service consultant with Strategy Development, I
have experienced some common service pitfalls.
‘The Power of Performance’
Konica Minolta dealers
assured of channel unityby Brent HoskinsOffice Technology MagazineBringing together representatives
of both its direct operations and authorized dealership
partners, Konica Minolta Business Solutions U.S.A. Inc.
hosted the Konica Minolta Business Conference &
Product Expo, May 1-5, in Los Angeles. The conference
drew more than 1,000 attendees.
4 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0
CONTENTS
Development Platforms
Facilitating integrated
software applicationsby Brent HoskinsOffice Technology MagazineToday, office technology dealer-
ships face the challenge of in-
tense competition and the near
commoditization of the equipment they sell and serv-
ice. How can the dealership best set itself apart from its
competitors? Increasingly, the answer lies in the em-
brace of software applications.
Volume 16 � No. 12
F E A T U R E A R T I C L E S
D E P A R T M E N T S
6
8
30
Executive Director’s Page
BTA President’s Message
Advertiser Index
Business Technology Association� Education Calendar
� BTA Highlights27
M P S S T R A T E G I E S‘Convergence 2010’
Dealers introduced to new
Ricoh leadership teamby Brent HoskinsOffice Technology MagazineDrawing more than 1,000 attendees,
including authorized Ricoh, Savin and Lanier dealers,
Ricoh’s national dealer meeting was held April 19-22 in
Las Vegas. There was an emphasis on the company’s
managed document services strategy and announce-
ments of coming product launches.
C O U R T S & C A P I T O L SThank You, CBS
Reporting provides service
opportunity for dealersby Robert C. GoldbergBTA General CounselAfter an initial news report in
Sacramento, Calif., the CBS Evening News reported —
in an investigative fashion — that the many copi-
er/MFPs returned by customers contain thousands of
documents on their hard drives.
20
10
22
26
29
Engaging IT Professionals
What do they expect
from your dealership?by Matthew KlureCopy LinkIn today’s copier/MFP and printer
sales and service market, it has been apparent for many
years that office technology dealership personnel and
service providers need to be able to make friends with
and understand their customers’ IT professionals. How
do we get in to see the head IT professional?
16
2010 MPS Conference
Photizo Group hosts
second annual eventby Elizabeth MarvelOffice Technology MagazineThe 2010 North American MPS Con-
ference was held May 3-5 in San Antonio. It brought
together 290 attendees, including representatives
from 59 dealerships, to discuss the evolution of man-
aged print services.
24
04OT0610:04OT0610 5/28/10 4:35 PM Page 4
ww
w.d
ocuw
are.
com
Maximize margins and hardware pull-through
Generate professional services and a recurring revenue stream
Extend the customer relationship beyond the life of the lease
How? Enter the profi table world of selling document management solutions.
Learn how to build your own successful professional services team
Benefi t from one-of-a-kind proven training and go-to-market programs
Outstanding certifi cation program and technical support
Onsite sales representatives working with your sales team
Contact us today at (888) 565-5907 or [email protected] and start realizing
the benefi ts of a lasting Partnership.
Put More Green in Your Bottom Line
Docuware ad June 10:Layout 1 5/17/10 2:20 PM Page 1
Executive Director/BTAEditor/Office Technology
Brent [email protected]
(816) 303-4040
Associate EditorElizabeth Marvel
[email protected](816) 303-4060
Contributing WritersMatthew Klure, Copy Link
www.copylink.net
Robert C. Goldberg, General Counsel Business Technology Association
Mike Woodard, Strategy Developmentwww.strategydevelopment.org
Business Technology Association12411 Wornall Road
Kansas City, MO 64145(816) 941-3100
www.bta.org
Member Services: (800) 505-2821BTA Legal Hotline: (800) 869-6688
Valerie BrisenoMembership & Marketing Manager
Mary HopkinsDatabase Administrator
Teresa LeerarBookkeeper
Brian SmithMembership Sales Representative
©2010 by the Business Technology Association. All RightsReserved. No part of this publication may be reproduced by anymeans without the written permission of the publisher. Everyeffort is made to ensure the accuracy of published material.However, the publisher assumes no liability for errors in articlesnor are opinions expressed necessarily those of the publisher.
EXECUTIVE DIRECTOR’S PAGE
If you are reading
this column then I
can state without
hesitation that you are
well aware of the Busi-
ness Technology Associ-
ation’s Office Technology
magazine. You are likely
equally aware of our various education
workshops, Legal Hotline, BTA Hotline e-
newsletter, and district education and net-
working events. However, you may not have
found the time to become fully aware of all
of the discount programs BTA provides its
dealer members. We know that your daily
routine keeps you busy.
We’ve been busy as well. In recent months,
BTA has added several new member bene-
fits that provide discounts (or in some cases
a value-add) to BTA member dealers. Every
time we add a new benefit, our goal is to
further boost the value of your BTA mem-
bership and help you in your business,
through information, guidance or cost-
saving opportunities.
Following are details on four new mem-
ber benefits, all providing a discount or
value-add to BTA dealer members. For more
information on each, visit BTA online at
www.bta.org or call us at (800) 505-2821.
� BTA Marketplace — The BTA Market-
place provides BTA member dealerships
with the opportunity to take advantage of
BTA Member Specials from participating
BTA Vendor Associate members. The spe-
cials range from first-order discounts to gift
card offers to waived fees.
As I write this, our participants are: Color
Imaging, Densigraphix, Digitek, DocuLex,
DocuWare, ESP, Falcon Technology Solu-
tions, FMAudit, ILG, Image Star, InkCycle,
Miracle Service, Sharp, Square 9 Softworks
and Supplies Network. Certainly, BTA
greatly appreciates the participation of each
of these Vendor Associate members.
� Document Solutions Daily — BTA
members receive 18-percent-plus off of a
one-year subscription to this unique e-
newsletter. As a subscriber, each business
day you will receive easy access to industry
press releases, new product announce-
ments, product reviews and market studies.
I receive this e-newsletter myself and find it
convenient, given its easy-to-read format.
� MPS eLearning Program — Developed
by InfoTrends and Strategy Development,
BTA members receive 15 percent off of the
new Managed Print Services eLearning
Sales Training Program. The program pro-
vides comprehensive, self-paced online
training, which includes tests at the end of
each module. It eliminates travel expense
and out-of-office time.
The online training is intended for deal-
ership principals, sales managers, vice pres-
idents and print specialists. There are eight
modules: Developing an MPS Territory; The
First Appointment; Performing an Assess-
ment; Contractual Selling; Pricing a Trans-
action ; A Successful Strategy Session ;
Designing Winning Proposals; and Ex-
panding Your MPS Relationship.
� Metrofuser ServicePLUS Training —
Beyond its remanufactured printers and
printer parts, Metrofuser offers Service-
PLUS Training, which is offered to BTA
member dealers at a 10 percent discount.
ServicePlus Training is a compilation of col-
laborative disciplines of parts theor y,
service management and general printer
repair. Five different courses are offered. �
— Brent Hoskins
Do You Know AboutThese New Benefits?
6 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0
®
06OT0610:06OT0610 5/28/10 11:37 AM Page 6
877-427-3261
Equipment and service dealers are often challenged with how to handle supplies. Coordination can be painful. And, there are the concerns about distributor reliability, responsiveness and taking customers direct.
Supplies Network has earned the trust of thousands of dealers like you.
The OEM and compatible supplies you need for transactional and MPS fulfillment.
1 or 2 day ground shipping direct to your customer or technician.
The performance excellence and integrity you demand.
Contact us about our full line of printer, copier and fax supplies, including laser printer maintenance kits/parts. We’ll help you streamline IT supplies to make your business run smoother.
Trouble keeping up with IT supplies?
HP | BROTHER | CANON | IMATION | INFOPRINT | LEXMARK | KONICA MINOLTA | OKI | SAMSUNG | XEROX
doing better!www.suppliesnetwork.com
Supplies Network is the distributor you can rely on.
®
Supplies Network ad June 10:Layout 1 5/12/10 9:35 AM Page 1
BTA PRESIDENT’S MESSAGE
From my perspec-
tive, my year as na-
tional president of
the Business Technology
Association flew by like a
bottle of toner at a print-
for-pay. It seems like it
didn’t last very long. An
old and overused cliché provides the reason:
“Time flies when you are having fun.”
It has been a very enjoyable year. There
have been countless conference calls and
discussions among volunteers and staff via
e-mail. There have also been various meet-
ings and events to attend. However, it was
an honor for me to be a part of all of it. I have
found my year in the presidency — which
comes to an end June 30 — to be rewarding
in so many ways. Thank you for the opportu-
nity to serve as BTA’s 75th president.
As I consider that number — 75 — I can’t
help but think of the many men and women
who served as BTA national president
through the years. Since I joined BTA in
1981 and shortly thereafter became a volun-
teer at the local level, I’ve had the privilege
of knowing many of my predecessors. Of
course, there are many more whom I never
met, starting with those who served the
association before I was even born! But
whether I knew them or not, one common
trait among these individuals is apparent to
me: All were champions of the entrepre-
neurial spirit and dedicated to the ongoing
success of the independent office tech-
nology dealer. Otherwise, BTA would not
have flourished for so many years.
Certainly, the industry has changed sig-
nificantly since it was established in 1926 as
the National Association of Typewriter
Dealers. (In case you are doing the math,
some presidents served longer than one
year.) Even the typewriter itself has all but
disappeared. But through these many years,
the association has been at the forefront in
terms of providing dealers with insight and
guidance to help them succeed every time
the course of the industry has changed.
When managed print services began its
ascent, for example, BTA was the first in the
industry to introduce a training workshop
on the topic, the BTA MPS Sales Workshop,
through our partnership with Strategy
Development.
Even with its long and distinguished
history, I think that these last few years are
likely among some of BTA’s best. Have you
noticed the resurgence of your association?
Have you noticed the growing list of mem-
ber benefits, including new educational
workshops? Have you noticed the new dis-
trict events, and BTA’s growing visibility
within the industry?
I suspect that your answer to each question
is “yes.” The reason for these recent strides is
actually quite simple. A few years back, the
volunteer leadership and staff took a close,
new look at BTA with the goal of ensuring that
it, in fact, remains positioned in every way to
serving its dealer members at an optimum
level. The result: An even greater level of com-
mitment to move BTA to new heights.
I’ve seen it firsthand. Your national and
district leadership is a cohesive team of indi-
viduals who are passionate about continu-
ally strengthening BTA and, in turn, the
dealer channel. If you have not already done
so, I encourage you to take a look at the
growing number of BTA member benefits
listed on our Web site, www.bta.org. Your
association is here for you. �
— Bill James
BTA’s CommitmentHas Long Endured
®
2009-2010 Board of Directors
PresidentBill James
WJS Enterprises Inc.3315 Ridgelake DriveMetairie, LA 70002
President-ElectRock Janecek
Burtronics Business Systems Inc.216 S. Arrowhead Ave.
San Bernardino, CA [email protected]
Vice PresidentTom Ouellette
Budget Document Technology251 Goddard Road
Lewiston, ME [email protected]
BTA EastTodd J. Fitzsimons
Network Imaging LLC122 Spring St.
Southington, CT [email protected]
BTA Mid-AmericaRon Hulett
U.S. Business Systems Inc.3221 Southview Drive
Elkhart, IN [email protected]
BTA SoutheastTerry Chapman
Business Electronics Corp.219 Oxmoor Circle
Birmingham, AL [email protected]
BTA WestLokke PatrickDocutxt Corp.
11110 E. Artesia Blvd., Ste. BCerritos, CA [email protected]
Ex-Officio/ImmediatePast President
Ronelle IngramSteven Enterprises Inc.
17952 Sky Park Circle, Ste. EIrvine, CA 92614
Ex-Officio/General CounselRobert C. Goldberg
Schoenberg Finkel Newman & Rosenberg LLC222 S. Riverside Plaza, Ste. 2100
Chicago, IL [email protected]
8 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0
08OT0610:08OT0610 5/28/10 11:41 AM Page 8
10 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0
by: Brent Hoskins, Office Technology Magazine
Development PlatformsFacilitating integrated software applications
Today, office technology dealer-
ships face the challenge of in-
tense competition and the near
commoditization of the equipment they
sell and service. These realities have given
rise to the quest for differentiation. How
can the dealership best set itself apart
from its competitors?
Increasingly, the answer lies in the
embrace of software applications. Docu-
ment management systems serve as a
good example. Today, a growing num-
ber of dealers are selling and installing systems from a growing
list of dealer-friendly document management software com-
panies. That may serve as a differentiator from the hardware-
only-focused competitor, but what next? How else can the
dealership provide the customer a value-add differentiator
that can further enhance productivity and improve workflow?
One answer lies in the various development platforms
unveiled by the industry’s hardware manufacturers in recent
years. Actually, such platforms are by no means new to the
industry. In 2003, Canon launched MEAP (Multifunctional
Embedded Application Platform). Other development plat-
forms followed. Among them: Kyocera Mita’s HyPAS (Hybrid
Platform for Advanced Solutions); Lexmark’s eSF (Em-
bedded Solutions Framework); Ricoh’s RiDP (Ricoh Devel-
oper Program); Sharp’s OSA (Open System Architecture)
platform; and Xerox’s EIP (Extensible Interface Platform).
Development platforms are used to facilitate a custom,
integrated interface with a software application via an
MFP’s control panel. Through the manufacturers’ develop-
ment programs, independent software vendors (ISVs) — and
often dealers and end users as well — are provided with
tools, including access to software development kits (SDKs),
in order to develop integrated interfaces to software.
The promotional text for the Sharp OSA platform
appearing on the company’s public Web
site serves to further explain the value that
manufacturers — and dealers — are now
bringing customers through their develop-
ment platforms: “Sharp OSA technology
opens the door to transforming your MFP
into a customized portal conveniently
located throughout your business. Com-
bined with the virtually untapped poten-
tial of Sharp OSA applications, it helps
enable you to extract and access key docu-
ment information, manage usage costs
and improve workflow within your enterprise.”
A key benefit of development platforms, says Vince Jannelli,
associate director of applications and partners at Sharp
Imaging and Information Company of America, is the ability
for the dealership to add capability to the product it is placing.
“For instance, if you have a customer that wants the MFP to
integrate with Microsoft Exchange, if you are Sharp dealer,
then you can find a Sharp OSA connector that integrates with
Exchange,” he explains. “Or, say you have a customer using
Google’s Gmail; you can then find a company that provides a
software application that fully integrates with Gmail.”
There is no shortage of third-party companies offering
Sharp OSA integration. “In the U.S., there are about 130
companies in the Sharp Partner Program and about 64 vali-
dated products,” says Jannelli. Sharp OSA developers can
have their software integration validated to provide assur-
ance of successful operation on Sharp OSA-enabled MFPs.
“So, if you are scanning or printing or whatever you are
doing, we validate that the user interface works when you
hit a particular button and that it does so consistently
across all of our devices.”
Beyond simply adding to the MFP’s capability, development
platforms can be used to facilitate customized workflows. “It
allows you to customize a system to meet the particular
Cover Story June 10:Cover Story June 10 5/28/10 2:08 PM Page 10
needs of your customer,” says
Jannelli. “For example, when
the user scans a purchase
order at the MFP, it can be
automatically archived, sent
to accounting [so that an in-
voice can be produced] and
generate a pick list that is
sent to the warehouse.”
Jannel l i adds that the
interest in development
platforms has increased in
the past couple of years,
given the downturn in the U.S. economy. “One of the things
that is allowing dealerships to move forward is the ability to
add value and differentiation in a crowded marketplace,” he
says. “You are not going in there to sell a ‘copier’ anymore.
You can say, ‘Look, I understand that you have fewer people
and you are trying to do more; I can increase your efficiency.’
That, really, is what the integration of hard copy with the
business operations is intended to achieve.”
Phil Boatman, manager of Business Solutions Dealer
(BSD) program development at Lexmark International Inc.,
shares a similar perspective. “Frankly, we view this as a new
revenue stream — a money-making opportunity for dealers,”
he says. “Differentiation with standard copy/print/scan/fax
technology is difficult. However, making it easier for dealers
to understand how to be a consultant and understand their
customers’ businesses is a key focus here at Lexmark. We
work to teach our dealers to sell in a successful, solutions-
oriented way so that they gain on their competitors, helping
their customers in a meaningful way that applies directly to
the customer’s mission-critical work.”
By selling as a consultant, the sales reps can ensure that
the customer no longer sees an MFP as “just speeds and
feeds or a CPC charge,” says Mark Hart, a business develop-
ment manager at Lexmark. “When the customer sees an
[eSF-enabled] application and the power of what they can
do on the touch screen, they quickly see how the machine is
no longer a peripheral, but now it becomes embedded into
the everyday workflow,” he says. “It has turned into an
everyday workflow machine.”
Lexmark dealers are increasingly moving to a solution
sales approach. In January 2009, the company launched its
Virtual Solution Center, a Web-based tool that enables
dealers to access, deploy and install embedded software
applications for their customers’ Lexmark MFPs. This
includes applications devel-
oped by Lexmark and con-
nectors to third-party soft-
ware utilizing Lexmark’s eSF.
“We consistently see an
increase in downloads from
the Virtual Solution Center
each month ,” says David
Carr, who, like Hart, serves
as a business development
manager at Lexmark. “Most
all of the partners in our BSD
program utilize the Center.”
Boatman cites another indicator of the number of
Lexmark dealers selling software-based solutions. “The
attach rate of devices being sold by our dealers with solu-
tions on them is rapidly growing,” he says. “That’s what is
exciting us. We are seeing this become an integral part of the
dealer business strategy.”
As noted, sometimes it is the dealership, rather than an
ISV or end user, that is creating the integrated software
interface, through participation in a manufacturer develop-
ment program. It appears that Kyocera Mita America Inc. is
the latest manufacturer to provide dealers — along with
ISVs and end users — the opportunity. In September of 2008,
the company announced the initial phase of the launch of
HyPAS, which enabled Kyocera to integrate software from
companies such as Equitrac into select MFPs. However, in
April of this year, the company launched the Developer
Support Program and partner Web site for HyPAS.
While she acknowledges that Kyocera is a late arrival with
its development program, Akisa Matsuda, director of software
solutions at Kyocera, emphasizes that it offers an additional
capability that she says sets the company apart from other
manufacturers. “The Kyocera Developer Support Program
helps dealers to differentiate from competitors by utilizing
HyPAS Tool Kits to customize their solutions’ capabilities and
solve customers’ unique problems,” she says. “It is the HyPAS
Tool Kit that is very unique. Instead of providing our SDK to
our dealers, we developed the Tool Kits so that the dealer can
create applications for their customers easily and quickly.”
Matsuda notes that the Tool Kits do not require dealer-
ships to have programmers. “It’s not like that,” she says. “You
just join the Developer Support Program and take advan-
tage of it. We offer the training and support. And we are
not charging dealers to join the program. If desired, the
dealership can offer this as a professional service. Our
12 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0
“Frankly, we view this as anew revenue stream —a money-making opportunity for dealers. ... Making it easier for dealers to understandhow to be a consultant ...is a key focus here at Lexmark.”
— Phil BoatmanLexmark International Inc.
Cover Story June 10:Cover Story June 10 5/28/10 2:15 PM Page 11
interest is, we want to help
dealers sell Kyocera product.”
Of course, says Matsuda, it
is up to the dealership owner
to take the first step — com-
mitting to the Developer
Support Program. “The level
of commitment from the
dealership owner is very, very
important,” she says. “With-
out that, the dealership will
probably not succeed selling
embedded and integrated
software applications.”
She is not alone in her observation, in terms of the neces-
sary commitment and the dealership’s success. Says Hart: “I
think it does come from the top down — owner buy-in that
applications is where they want to go.” Says Jannelli: “It’s
driven from the top. Executive management needs to make
the decision that ‘this is what
we are going to do.’”
Once that decision is
made, says Jannelli, the deal-
ership will see the rewards.
“Sharp OSA-enabled applica-
tions can add value from
little increments all the way
to complete software deploy-
ments, from adding an e-
mail Exchange connector to
a document management
application,” he says. “As you
scale upward, the value-add becomes bigger
and the revenue opportunities increase.” �Brent Hoskins, executive director of the
Business Technology Association, is editor of
Office Technology magazine. He can be
reached at [email protected].
“Sharp OSA-enabledapplications can add valuefrom little increments allthe way to complete software deployments ...As you scale upward, thevalue-add becomes biggerand the revenue opportunities increase.”
— Vince Jannelli, Sharp Imagingand Information Company of America
14 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0
Cover Story June 10:Cover Story June 10 5/28/10 4:40 PM Page 12
16 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0
by: Matthew Klure, Copy Link
Engaging IT ProfessionalsWhat do they expect from your dealership?
In today’s copier/MFP and printer sales and service
market, it has been apparent for many years that office
technology dealership personnel and service providers
need to be able to make friends with and understand their
customers’ IT professionals. How do we get in to see the
head IT professional and show him (or her) that we are
prepared to work with him and not cause more issues for
him to fix?
The first thing any service provider or dealership needs is
an in-house solutions specialist/IT professional. Without
this crucial employee, you will never be able to gain the trust
of a customer’s IT department. Knowledge is power in the IT
world, and if you are not prepared to have that knowledge
in-house, you are not prepared to go anywhere near a cus-
tomer’s network.
Secondly, once you have an in-house IT professional of
your own, never have a sales rep go on an appointment where
the customer’s IT person is going to be and leave your own IT
support at the office. IT professionals view all non-IT people
as “users,” and users who try to sell them network technology
are not given the time of day. Your internal solutions spe-
cialist/IT professional needs to be presented to the customer
as a trusted resource for both you and the customer.
I have been in this industry as a solutions specialist/IT
professional for the last 10 years and have seen the sales and
implementation cycle from the dealership perspective. So, I
took the time to reach out to some fellow IT professionals
who are not in the copier/MFP sales industry and asked
them what they expect from an MFP dealer and service
organization. Here are some of the replies I received:
“Robert” gave me this list of requirements:
� Up-to-date software and drivers. It should work on
Windows Server 2008 R2, Mac, Windows 7, etc.
� Centralized management of MFPs. When you have 100-
plus MFPs on- or off-site, it makes life easier to check for
problems and deploy updates if everything is in one place.
� Configuration by policy. No one wants to configure
LDAP and address books on 100 MFPs.
� Notification (or better yet, auto update) of firmware.
� Parts availability. The more parts stocked, the better. A
week is too long to wait for any part.
� Scheduled maintenance. “Everyone touts this, but few
live up to the expectation. If it is not in my Outlook calendar
and I do not have the name or number of the tech, then how
is it scheduled? This goes back to communication and punc-
tuality. When a tech comes in to fix chronic paper jams and
tells me that a roller needs to be replaced and it is going to
take a few days to get the part, that is simply unacceptable.”
� Ease of use. “Most users do not scan because the
control panel is too complicated. The more straightforward
and the fewer the number of menus, the better it is. Sales
reps say they will train, but when you have locations all over
the United States, or have new employees, the training is
just not enough. I prefer self-explanatory to training.”
“Michael” said just one thing: “I want them to know what
they are talking about.”
“Richard” also had a detailed response to my question:
� “I would expect prompt, timely repair and turn-around.”
Klure June 10:Klure June 10 5/28/10 10:53 AM Page 10
Customized Action Planswith Hands On Execution!
BEI Pros Onsite Consulting ServicePerform an extensive assessment / onsite analysis (3-5 days).
Identify your areas of opportunity and we showyou how to fix them.
Provide a detailed write-up of all findings identifiedduring the process.
Provide a customized action plan that willspecifically lay out a step by step process that youneed to follow in order to improve your serviceoperational performance and profitability.Assist with the execution of your customizedaction plan to ensure the desired results areachieved.Provide your service management team with theprocesses, procedures and all forms to use duringthe execution phase of the plan.
BEI Pros Service Management –Operational Excellence and
Profitability Improvement Training
Extensive 3 day classroom training with - breakoutsessions focused on service operational andfinancial improvements.Evaluating Service Financials - How to read,interpret and react.Provide the “New” Operational and FinancialPrint Management model for service
Review the Top 15 “Must Do’s” to achieve 52+% service margins.Learn how to assess your service organization &identify your opportunity areas.
Effective follow-up... the failure of 90% of servicemanagement.
An Innovative Service Consultant &Training Group, Providing the
Most Detailed & Proven Profitability/Operational Improvements in the
Document Imaging Industry
Register for Classes at: www.beipros.comfor more info email: [email protected]
*Student Discounts Available For Multiple Student Registration*
Upcoming Advanced Class Training Schedule
Jerry NewberryPresident
Jeffrey KellyVice-President July 12 - 14, 2010
September 13 - 15, 2010
We Have A Proven Track Record OfAchieving Increased Profits And
Improved Service Operations!
BONUS
BEI Pros Customers Receive FREE ACCESSTo The Industry’s First Automated Territory
Development Software
BEI Pros ad June 10:Layout 1 5/17/10 12:52 PM Page 1
� Recognition of lemon devices and
timely replacement after all options
have been explored.
� A deep understanding of the net-
working capabilities of the devices.
� The ability to be able to direct the
customer to technical resources avail-
able online for further research.
� The ability to provide suggestions
or documents stating best practices for
the usage and implementation of the devices.
� Direct, honest answers as to what the device can do,
and set realistic expectations for the device.
� Best case scenario: A partnership with a dealer in
which the dealer role is one of providing the printing solu-
tion, information about industry trends and solutions avail-
able that could either reduce cost or increase revenue for
the client.
“On IT, I live by the following: lower management costs,
reduced manpower requirements, increased efficiency and
forging a long-term partnership that is mutually beneficial,”
says Richard. “Dealerships that are out for the quick buck
and burn their customers are not seeing the big picture.
Long-term relationships can make or break a dealership.
Look at Dell as an example. They lowered the quality of their
customer service by off-shoring it and lost many long-term
customers for years. Short-term gains cost too much over
the long term. Michael Dell had to come out of retirement to
fix his company.
“Dealerships that are up against the 800-pound gorillas
— direct manufacturers, such as Xerox, Ricoh and Canon —
need to think they are performing guerrilla warfare,”
Richard continues. “Dealerships have to provide something
that an 800-pound gorilla cannot. Find your niche, cater to
the customers’ needs and be nimble and flexible. Eight-
hundred-pound gorillas lumber down the road and take a
long time to change direction.”
One of the key similarities among the comments from
these professionals is knowledge — that is, knowing what
your products can and cannot do on the network and being
able to back that up in practice.
If your organization does not yet have an IT person or
solutions specialist, there are some basic guidelines to
follow when looking to hire one. To start, be sure to find out
about his knowledge of network protocols, especially SMB
file shares and LDAP authentication, before you hire him.
Taking the most network-savvy tech from among the ranks
of your service organization to fill this
role i s al so an option since h e has
become familiar with how the specific
MFPs your company sells and supports
work on the network.
However, I have a few warnings about
doing this. If you do choose a tech, make
sure he is one who not only has an
interest in computers and networks, but
who can communicate this interest in a
meaningful way. There are many computer lovers in the
world who have limited people skills. Your customers are
going to want to see a person who is knowledgeable and a
good people person before choosing to engage in business
with your organization.
Also, once the decision has been made to bring a tech
over into a pure solutions and IT support role, you have to
separate him from the hardware duties he once filled. If your
solutions person has to cancel sales appointments to go fix a
broken machine, it just will not work. I have seen too many
cases where this has happened, only leading to disgruntled
sales reps who need the knowledge your IT person brings to
the table. If you choose to promote a tech to this role, please
replace his position on the service team.
The only way to effectively engage the IT departments that
are increasingly making the decisions about what copier/MFP
or printer to buy for their company is to have an IT person of
your own. Not just one to take care of your in-house IT issues,
but one to take care of customer issues. Make sure it is some-
one who has a good understanding of multiple networking
protocols and, when put to the test by your customers, can
ensure your dealership shines. In the business-to-business
sales model, business is done via relationships. That means
your sales staff needs to have a relationship with the cus-
tomer’s CEO, CFO, office manager, etc., and your IT staff needs
to have a relationship with your customer’s IT staff.
Being successful is not about being the smartest person,
but rather, it is about surrounding yourself with the smartest
people. Invest in the right people and success will follow. �Matthew Klure is director of IT at Copy Link in San Diego.
For the past 10 years, he has been involved with the
connectivity of MFPs to customer networks
and software, working at both the
manufacturer and dealership levels. He is
also experienced in a wide variety of document
management and scanning applications.
Visit www.copylink.net.
Your customers are goingto want to see a personwho is knowledgeableand a good people person before choosingto engage in businesswith your organization.
18 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0
Klure June 10:Klure June 10 5/28/10 4:43 PM Page 11
Do you crunch the numbers, or do the numbers crunch you?
he BTA ProFinance course will teach you how to setthe strategy, track critical performance measures and
manage your assets according to a proven business modeldesigned to improve the profitability of your company.
Instructors John Hanson and John Hey of StrategicBusiness Associates take a holistic approach to theredirection of your business — from sales repcompensation and projecting service revenues toinventory management and an action plan forimplementation — with the short-term goal of achievinga minimum of 14% operating income. You can achievethese results by monitoring 24 key benchmarks andmaking strategic shifts as discussed in the program.
Start planning for improved profitability today! Send allof your strategic decision makers to ProFinance — it’s aninvestment in your company that will help you relieve theend-of-the-month crunch.
To register for ProFinance or get more informationon pricing and quantity discounts, visitwww.bta.org/ProFinance or call BTA at (800) 843-5059.
2010 workshop dates & locations:
Aug. 11-12, 2010 Chicago, Ill.Nov. 10-11, 2010 Las Vegas, Nev.
T
ProFinance is designed for owners and executive-level staff who make the critical business decisions that impact your company’s success. Some OEMs reimburse forProFinance tuition through advertising co-op or professional development funds. Check with your OEM.
ProFinance:31OT0406 5/25/10 2:01 PM Page 1
20 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0
by: Brent Hoskins, Office Technology Magazine
‘Convergence 2010’Dealers introduced to new Ricoh leadership team
There was an emphasis on the company’s managed
document services strategy and announcements of
coming product launches. There was also the oppor-
tunity to attend various education sessions and learn about
the products and services of Ricoh and a number of other
exhibiting partner companies in the Technology Expo.
However, one of the primary areas of focus at the recent
Ricoh Americas Corp. national dealer meeting was the con-
vergence of Ricoh and IKON. After all, the meeting took
place shortly after Ricoh announced that IKON executives
had assumed leadership roles at the company. Ricoh
acquired IKON in 2008.
Drawing more than 1,000 attendees, including authorized
Ricoh, Savin and Lanier dealers, the meeting was held April
19-22 in Las Vegas. It was the first for the company to
include dealers representing all three brands, reflected in
the theme and title of the event, “Convergence 2010: Bring-
ing the Best Together.” The title served the dual role of
reflecting the integration of Ricoh and IKON as well.
“I am pleased to announce Matt Espe’s appointment to
chairman and CEO of Ricoh Americas Corp.,” said Kevin
Togashi, who was recently named chairman and CEO of the
newly formed Ricoh Americas Holdings Inc., personally
announcing other recent executive promotions during the
meeting’s opening General Session. “As chairman and CEO
of IKON since 2002, Matt’s strengths in leadership and vision
have led to outstanding results for IKON.”
Ricoh Americas Holdings Inc. manages the asset value
and executive governance of all Ricoh sales companies in
the Americas. Through direct sales and the dealer channel,
Ricoh Americas Corp. includes operations in North, Central
and South America, and is the parent company of Ricoh U.S.
Togashi also told of the newly expanded role of Jeffrey
Hickling, who joined IKON in 2005, ultimately becoming its
president and COO. Hickling’s expanded role now includes
president and CEO of Ricoh U.S. He is responsible for
Ricoh’s dealer network, as well as its U.S. direct sales and
service organizations — Ricoh Business Solutions and
IKON Office Solutions.
During the General Session, both Espe and Hickling
introduced themselves to dealers and commented on the
integration of Ricoh and IKON. They also sought to reassure
dealers that Ricoh remains committed to the dealer
channel, echoing similar comments from Togashi.
“I want you to know this,” said Togashi. “For Ricoh to
position itself as a market leader in the U.S., there is one
Clockwise from top: Attendees learn more about one
of Ricoh’s products in the Technology Expo; Matthew Espe,
chairman and CEO of Ricoh Americas Corp.; Jeffrey Hickling,
president and CEO of Ricoh U.S.; and Kevin Togashi,
chairman and CEO of Ricoh Americas Holdings Inc.
Ricoh June 10:Ricoh June 10 5/28/10 12:06 PM Page 10
thing we must do. We must ensure the
success of the independent dealer with
a level playing field. We are committed
to your growth and we anticipate that
the dealer business in the total Ricoh
Americas’ business will expand to a
much higher level.”
Espe emphasized an increasingly
important role for dealers as well. “We
understand that our job is to help you
win, and I want you to understand that you are an essential
part of our strategy,” he said. “You are as important today as
you ever have been and, arguably, more important.”
Dealers will be brought into the dialog to provide
counsel as the process of integrating Ricoh and IKON pro-
gresses, said Espe. “We want to take a look at our business
from the outside in, and that really starts with you,” he said.
“We want to talk to our dealers ... and we want you to help
us frame our strategy. We want you to help us determine
what our priorities should be and help
point out our challenges.”
In his comments to dealers, Hickling
sought to quell any concerns about IKON
pursuing dealers’ customers. “Ricoh
didn’t acquire IKON to cannibalize the
dealer channel,” he said. “That would
make no sense. There is no way that any
of the direct channel would know your
customer base better than you do. Our
goal is to invest in the dealer channel and help you win with
your customers and expand the total Ricoh base.”
The integration of Ricoh and IKON will benefit dealers, said
Hickling. “As we create a plan to build a stronger organization
through integration,” he explained, “our goal is to strengthen
our company and provide better support for you.” �Brent Hoskins, executive director of the Business Technology
Association, is editor of Office Technology magazine.
He can be reached at [email protected].
“As we create a plan to build a strongerorganization throughintegration, our goal is to strengthen our company and providebetter support for you.”
w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0 | 21
On average, IBPI dealers save from $25,000 a year for
small dealers to $165,000 a year for large dealers because of the IBPI-only
discounts they enjoy on supplies, parts, training, service and more!
Put the power of the industry's largest buying group to work for your dealership. Call today to find out more!
Ricoh June 10:Ricoh June 10 5/28/10 12:06 PM Page 11
22 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0
by: Brent Hoskins, Office Technology Magazine
‘The Power of Performance’Konica Minolta dealers assured of channel unity
Bringing together representatives of both its direct
operations and authorized dealership partners, in
part to further foster distribution channel unity,
Konica Minolta Business Solutions U.S.A. Inc. (KMBS)
hosted the Konica Minolta Business Conference & Product
Expo, May 1-5, in Los Angeles. The conference, themed “The
Power of Performance,” drew more than 1,000 attendees,
including 380 attendees representing 180 dealerships.
During his welcoming comments in the opening General
Session, Rick Taylor, senior executive vice president and
COO of KMBS, emphasized the company’s focus on channel
unity. “Two years ago, when I said we would be one com-
pany with one vision and one voice, I meant it,” he said.
“We’ve made a lot of changes to get to this day.”
Those changes, said Taylor, include changes in KMBS’s
business structure, direct cost model, compensation model
and programs. “And sometimes, when all else failed, we
changed people,” he said. “These changes did not just affect
Konica Minolta employees. Today, we have 97 fewer dealers
in part because some dealers didn’t want to change with us.
Our unending determination has prevailed.”
With “dramatically” lowered fixed expenses, Taylor said the
company’s direct branches are “now profitable on a dealer-
cost operating model,” realizing a $70 million-plus increase in
operating income since 2008. If the direct branches were not
profitable, dealers in the same markets could not be expected
to “make a lot of money,” he said. “We have to have a very
profitable direct organization so that we’ll have credibility
when we stand in front of our dealers and say, ‘You can be in
these markets, they [KMBS direct branches] will stay out of
your way and you can make money.’”
In the past year, the “direct channel has embraced our
policy with respect to our dealer partners,” said Taylor.
“They completely understand and agree that we will not sell
to our dealers’ customers. They also completely understand
that we will not recruit our dealers’ employees.”
Taylor praised both direct and dealer channel representa-
tives for their recent successes. “Thanks to the total efforts
of everyone in this room and your colleagues who are
working hard back home, in a market that went down 15.7
percent last year, we increased our total unit placements in
excess of 10,000 units or 10.7 percent last year,” he said. “Our
placements were 55 percent direct and 45 percent dealer.
That’s a very healthy channel mix that bodes well for our
Clockwise from top: Attendees learn more about one of
Konica Minolta’s current products in the conference’s Product
Expo; Rick Taylor, senior executive vice president and COO,
Konica Minolta Business Solutions U.S.A. Inc. (KMBS); Ned
Umehara, president and CEO, KMBS; and Masatoshi
Matsuzaki, president and CEO, Konica Minolta Holdings.
Konica Minolta June 10:Konica Minolta June 10 5/28/10 12:11 PM Page 10
future growth in both channels.”
In his comments during the General
Session, Masatoshi Matsuzaki, president
and CEO of Konica Minolta Holdings,
shared numbers as well, but from the
perspective of Konica Minolta globally.
For the fiscal year that ended March 31,
“our total revenue was over $9.5 billion,
with operating profit of just over $560
million, delivering a return on sales of
over 5.4 percent,” he said, noting that KMBS parent com-
pany Konica Minolta Business Technologies (KMBT)
accounts for 67 percent of Konica Minolta’s revenues.
The conference also provided an opportunity for atten-
dees to hear from Ned Umehara, the newly appointed presi-
dent and CEO of KMBS. In his comments, he emphasized,
in part, that a key component of his business and personal
philosophy is to always be fair. “When I face a difficult busi-
ness decision, I always ask myself whether the decision I’m
about to make is fair or not,” he ex-
plained. “Our organization will work
hard at every level to ensure that we
treat our customers and their em-
ployees with the fairness they deserve
and we must ensure fairness in our
daily business.”
Umehara also paid tribute to his
predecessor, Jun Haraguchi, now serving
in Japan as director and general man-
ager at the sales headquarters of KMBT, complimenting his
“strong leadership” in building a “solid foundation” for
KMBS. “I would like to build further on this foundation,” he
said. “I want to develop a very strong ‘Team U.S.A.,’ as I like
to call it. I feel very fortunate and proud to be a part of ‘Team
U.S.A.’ with you.” �Brent Hoskins, executive director of the Business Technology
Association, is editor of Office Technology magazine.
He can be reached at [email protected].
“Our organization willwork hard ... to ensurethat we treat our customers ... with thefairness they deserve andwe must ensure fairnessin our daily business.”
w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0 | 23
Live Tech SupportDirect AccessHP & Lexmark
1-888-FUSERS-1 (387-3771)908-245-2100 Phone
908-245-2900 Faxwww.METROFUSER.com
California New Jersey
Konica Minolta June 10:Konica Minolta June 10 5/28/10 12:11 PM Page 11
24 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0
by: Elizabeth Marvel, Office Technology Magazine
2010 MPS ConferencePhotizo Group hosts second annual event
By now, most dealers realize that the marketplace is
changing. In order to keep up with that change,
dealers must constantly educate themselves about
new technology and service offerings they can provide their
customers. One of these offerings, managed print services
(MPS), is a huge opportunity for dealers today, and atten-
dees at the 2010 North American MPS Conference were
assured that creating MPS offerings in their businesses was
the correct next step to dealership success.
The conference, hosted by the Photizo Group, was held
May 3-5 in San Antonio. It brought together 290 attendees,
including representatives from 59 dealerships, to discuss the
evolution of MPS. Fifty-four attendees were from foreign
countries, showing that MPS is not only a North American
phenomenon, but a global one.
On May 3, the conference held a series of workshops for
end users and dealers who were just getting into the MPS
space. These hands-on workshops gave attendees the
opportunity to get better acquainted with MPS technology
and the basics of MPS before learning more about the
specifics of the offering during the main conference.
The conference kicked off on May 4 with a keynote by
Mark Boelhouwer, vice president of marketing for Ricoh
Americas Corp. He touched on the foundational elements of
MPS, giving attendees three things to focus on. “The first
part we like to talk about is continuous optimization,” said
Boelhouwer. “The second one ... is called change manage-
ment. The third part is business process improvement or
document process improvement. How can we leverage what
we have today and the infrastructure from customers?”
Boelhouwer’s keynote was followed by a State of the
Industry address presented by Ed Crowley, founder and CEO
of the Photizo Group. The presentation, “Exploiting Chaos —
Creating Opportunities in the MPS Market,” focused on how
the industry is changing and how dealers can make the most
of that change. He also gave attendees an official definition of
Clockwise from top: Jim Fitzpatrick, president of MPSA,
presents MPSA’s 2010 MPS Leadership Awards during the
May 4 lunch sponsored by Print Audit; Attendees visit the
exhibit booths during a break; Mike Stramaglio, president and
CEO of MWAi, presents his education session on May 4; and
Ed Crowley presents his State of the Industry address.
MPS Conference June 10 copy:MPS Conference June 10 5/28/10 4:36 PM Page 10
MPS, created by the Managed Print
Services Association (MPSA).
“How they’re [the MPSA] describing
MPS is: ‘Managed print services is the
active management and optimization of
document output devices and related
business processes,’” said Crowley.
Crowley also touched on the cost
savings a custom er can get from
deploying an MPS solution in his (or
her) business. “So the new model, the managed print serv-
ices model, is really a pretty simple one,” said Crowley. “From
a customer perspective, I have a vendor and they manage
everything for me. And, in fact, not just manage the hard-
ware and infrastructure and the deployment services, but
they manage [the questions]: ‘How do I come up with a doc-
ument strategy? How do I improve my business processes?
How do I improve how my business operates?’ And by doing
that, on average, they improved their employee device ratio
to 6-to-1 from 2-to-1 — a three times improvement. They
reduced employee costs by $225 per year [per employee].”
On May 5, keynotes were presented by
Jason Evans, president and CEO of PEQ
Services & Solutions, and Dena Bernard,
director of customer satisfaction and
services at OKI Data Americas Inc.
Each day’s keynotes were followed by
three education tracks, and during
breaks, attendees could network with
peers or visit the exhibitor booths. Once
each day ’s education was complete,
attendees mingled at cocktail receptions hosted by MWA
Intelligence (MWAi) and United Stationers.
The final session on May 5 was an “Ask the Experts” panel,
where attendees were given the opportunity to ask ques-
tions of Photizo Group consultants.
The MPSA also presented its 2010 MPS
Leadership Awards and conducted its
annual meeting during the conference. �Elizabeth Marvel is associate editor of
Office Technology magazine. She can be
reached at [email protected].
“ ... ‘Managed print services is the activemanagement and optimization of document output devices and related business processes.’“
w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0 | 25
MPS Conference June 10 copy:MPS Conference June 10 5/28/10 2:33 PM Page 11
The first report was in Sacra-
mento, Calif.; the second was on
the CBS Evening News; and ,
recently, there was a third report here in
Chicago. The BTA Legal Hotline lit up
after each report and did not stop for
several days. In case you missed it, CBS
reported — in an investigative fashion
— that the many copier/MFPs returned
by customers contain thousands of doc-
uments on their hard drives. Of course,
CBS found copier/MFPs with medical
and criminal information, making the story quite attractive.
These news reports did not come as a surprise to BTA — the
association had been contacted by a CBS producer during the
“investigative” stage. Rather than investigate, the nature of the
inquiry reflected a desire to find a party to blame for any end
user unknowingly leaving data on a hard drive.
Let me assure you that a dealer is not responsible for images
or data left on a copier/MFP or printer when it is traded in, dis-
carded or comes off lease. A dealer is no more responsible than
an automotive dealership would be responsible for you leaving
your wallet in the glove compartment when trading in your car.
These investigative reports had a very positive effect. The
information provided alerted end users to the fact that “confi-
dential information” may not be as confidential as thought.
The reports also provide an excellent service opportunity for
every dealer. The opportunity is especially good with banking,
mortgage, health care, insurance and government placements.
Laws and regulations regarding the confidentiality of informa-
tion received govern many of these industries.
My first recommendation is that your sales and service
people convey to end users that there is memory in these
devices and the memory retains a certain amount of informa-
tion. There are also e-mail and IP addresses that are pro-
grammed into the device. This is all information an end user
should want to protect. Through early education, the
cleansing process will be easier to sell at the time the equip-
ment is returned.
The terms and conditions of your sales document, mainte-
nance agreement and lease agreement should all clearly state:
“End user is solely responsible for the
removal of any data and/or images
maintained on the equipment.” Although
there is no liability for this data, it is
always preferable to have a provision to
point to if the issue arises. This provision
may also lead to a discussion of data
cleansing services.
Dealers have long provided data
cleansing services to sensitive indus-
tries. These services are often presented
as having three alternatives. The first
cleansing option is to cleanse the hard drive by reformatting it
one time and eliminating all e-mail information and IP
addresses. The second option is to reformat the hard drive
three times and remove the e-mail information and IP
addresses. The third is to remove, destroy and replace the hard
drive. Once a dealer provides one of these services, the dealer-
ship becomes responsible.
There should be a concern with the effectiveness of the
reformatting process. Because a hard drive is reformatted, it
does not mean the data is not recoverable. In a litigated matter
I handled, an individual returned a laptop computer with all
the programs and files “erased.” The hard drive was sent to
three former FBI agents who were able to recreate 98 percent
of the information. Thus, when offering the three options, be
certain to present them as “effective,” “more effective” and
“most effective.” If the cleansing program is provided by your
manufacturer, be sure to review its disclaimers and be sure to
include similar ones in your transactional document.
Finally, if you offer cleansing services and the end user
declines, you may wish to seek a waiver of liability. An end user
who is asked to waive liability will sense the seriousness of the
issue and perhaps reconsider his (or her) decision. If not, you
have a waiver if an issue ever arises. A sample Data Cleansing
Waiver i s post ed on th e BTA Web sit e ,
www.bta.org, in the members-only section un-
der Legal Documents. �Robert C. Goldberg is general counsel
for the Business Technology Association.
He can be reached at [email protected].
by: Robert C. Goldberg, General Counsel for the Business Technology Association
COURTS & CAPITOLS
Thank You, CBSReporting provides service opportunity for dealers
26 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0
Goldberg June 10:Goldberg June 10 5/28/10 2:52 PM Page 26
EDUCATION CALENDAR
July22 Building My Business Webinar — “Your Exit Strategy”
Have you worked out your long-term plan or exit strategy? Are you considering selling yourdealership, or perhaps buying another? Do you want to know the true value of your dealer-ship? When thinking about exit strategies, the time to plan is now. What you do today willhave a tremendous effect on how much your dealership will actually be worth five to 10 yearsfrom now. This webinar, presented by Jim Kahrs of Prosperity Plus Management ConsultingInc., will outline what drives the value of your dealership. You will learn how to create a viableexit strategy before the time comes for you to step aside and pursue other interests. Free toBTA members, this webinar is scheduled for 4 p.m. Eastern, Thursday, July 22.
August11-12 BTA ProFinance Chicago, IL
ProFinance instructors John Hanson and John Hey of Strategic Business Associates will teachyou the financial model that helped them make the decisions that grew DC Hey from a $5million to a $170 million IKON-acquired enterprise. In addition to helping you implement themodel in your company, they will help you understand the strategies required to become moreclient and employee focused.
17-18 BTA Service Management University (SMU) Denver, COService managers are under pressure to deliver sustainable margins greater than 52 percent.In order to achieve this goal, they need to understand a multitude of profit inputs that rangefrom setting prices to employee performance and development. When service leaders leaveSMU, taught by Mike Woodard of Strategy Development, they will understand how to identifyand address any issue within the service department.
25 Building My Business Webinar — “Leadership Development & Empowermentfor Office Equipment Dealers”Too often business leaders take too little time to focus on their own development because theyare simply too busy running the day-to-day of their businesses. A void in your company's lead-ership can hold back or hurt your dealership. During this webinar, presented by Sally Brause ofGreatAmerica Leasing Corp., you will learn the attributes associated with successful leadershipand how you can develop these attributes within yourself and your dealership managementteam. Practical and actionable tools will be shared based on current business case studies. Freeto BTA members, this webinar is scheduled for 4 p.m. Eastern, Wednesday, August 25.
For additional information or to register for courses or webinars, visit www.bta.org or call (800) 843-5059.
w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0 | 27
Calendar June 10:Calendar June 10 5/28/10 2:53 PM Page 25
BTA HIGHLIGHTS
BTA would like to welcome the following new mem-bers to the association:Dealer MembersAlternative Mailing & Shipping Systems,
Arlington, TXAmerx Office Solutions, Austin, TXBundy Business Systems, Champaign, IL Complete Business Systems, Boise, IDDataflow Business Systems, Salinas, CADocument Imaging Partners, Breslau,
Ontario, CanadaGallup Business Systems, Gallup, NMID Group, Ridgeland, MSMichigan Business Systems, Southfield, MIPrinters Plus, Ottawa, Ontario, Canada
Vendor Associate MembersDiversified Computer Supplies, Ann Arbor, MIUnion Technology International, Macau SAR,
China
Service Associate MembersLease Corporation of America, Troy, MI
For full contact information of thesenew members, visit www.bta.org.
Metrofuser ServicePLUS Training Metrofuser’s ServicePLUS Training will pro-
vide students with hands-on, real-life scenariosthat will challenge them to repair everythingpossible for each technology element. BTAmembers receive 10 percent off. Students canattend up to five consecutive days of courses,with pricing discounts based on the number ofcourses. To register, visit www.bta.org and clickon “Education & Certification.”
For more information on BTA member benefits,visit www.bta.org.
For the benefit of its dealer members, eachmonth BTA features two of its Vendor or ServiceAssociate members in this space.
BTA VendorAssociate memberFalcon TechnologySolutions has worked
with small, medium and large companies toprovide effective solutions to business prob-lems. The Falcon team provides completesystems and business tools from requirementsto commissioning. With an extensive knowl-edge of quality software systems, Falcon canprovide your company with requirementsanalysis, project management, implemen-tation, quality assurance, ongoing productenhancement and maintenance, and more.
www.efalcontech.com
BTA ServiceAssociate memberBERTL is an inde-pendent testing
laboratory whose purpose is to provide objec-tive, independent product evaluation reportsand comparative analyses on imaging devicesand software workflow solutions. BERTL’sTesting Laboratory is responsible for devel-oping and applying technology, measure-ments and standards that are used in itsproduct evaluation reports and analyses. Inparticular, BERTL has developed softwaretesting tools and methods used to test theclaims made by manufacturers.
www.bertl.com
A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.
28 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0
Highlights June 10:Highlights June 10 5/28/10 2:58 PM Page 25
As most dealers and resellers know, print management/
MPS is not a buzzword that is going to fade away. It is a
new go-to-market strategy that allows companies to
penetrate new customers and add a highly profitable recurring
aftermarket revenue stream. Frequently, service is left to
“figure it out on their own” after the contract is written.
Having been responsible for MPS service delivery at previous
employers, as well as being involved in helping our clients
succeed in MPS as a service consultant with Strategy Develop-
ment, I have experienced and observed some common service
pitfalls, or mistakes, that occur when moving into the MPS
arena. The good news is each of these pitfalls can be avoided
or corrected once you know they exist and take the proper
steps to change your approach.
The first pitfall, and one of the most costly, is assuming cus-
tomer expectations. Over the years, the copier/MFP industry
standard for response time has settled at four hours. What is
interesting is that end-user customers did not randomly select
four hours as their response time requirement. We, as service
providers, became very good at delivering a four-hour average
response while achieving desired service margins. Most printer
users are accustomed to receiving “next-day” or even “second-
day” service, especially when their service support is internally
sourced. Incremental technician staffing is required to deliver a
four-hour versus an eight-hour average response time, com-
monly referred to as response time loading. The labor cost dif-
ferential associated with incremental staffing, in this example,
is from 10 to 14 percent. So, rather than lead with a four-hour
response time guarantee for printer service, start with a “next-
day” response, or a guaranteed “eight-hour response, 70
percent of the time.” Yes, there will always be mission-critical
situations that require a four-hour response time; however, you
will find that eight-hour or “next-day” service is quite accept-
able in most printer situations.
The next common service pitfall is placing stringent restric-
tions on printer models that can be included (supported) in a
printer fleet contract takeover. To be successful and grow MPS
aftermarket revenue, service has to be flexible and creative.
There are numerous sources of training, parts and technical
support for most laser-based printers. Once under contract,
the one-off, orphan printers included in a printer fleet can be
replaced with readily available, easily supported, used HP
printers. Remember, the objective is to get the printer fleet
under contract. Yes, there are printer models to stay away from
— ink-jet printers (which are repair by replace) and drum-
based MFPs (unless you are an OEM-authorized dealer).
Another service pitfall, also related to MPS printer fleet
takeovers, is requiring detailed device pre-inspections. Equip-
ment pre-inspections are a common service practice in the
copier/MFP arena; however, in the MPS world, equipment pre-
inspections are not worth the time, effort and risk (you could
loose the deal). Instead, simply require that the device makes a
print. Once again, do not lose sight of the objective of getting
the fleet under contract.
Once the MPS strategy takes hold, there is a common ten-
dency to continue servicing the expanding printer base with
existing copier/MFP technicians, which can be an expensive
proposition. With proper training and support, entry-level
technicians can provide outstanding printer field support.
There are also significant productivity and proficiency benefits
associated with technician specialization on printer products,
i.e. smaller, more effective trunk inventories, increased first call
effectiveness and ultimately, happier, more loyal customers.
While existing copier/MFP dealers may possess the necessary
Service Success in MPSHow to avoid & correct common pitfalls
by: Mike Woodard, Strategy Development
MPS STRATEGIES
w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0 | 29
Woodard June 10:Woodard June 10 5/28/10 3:03 PM Page 26
service infrastructure and resources to
support MPS, there are some aspects of
the traditional service delivery model that
may not apply.
As an example, there may be little value
in assigning dedicated printer technicians
to individual territories. One of the biggest
benefits associated with assigned territo-
ries has been the value of technician/cus-
tomer relationships, which makes sense
when the customer sees the technician on a regular basis.
However, in the printer environment, service may only be
required once a year, or less. The value of assigned territories
is diminished. There can be greater value in applying a “route
service” strategy, which assigns service calls based on location
intelligence — who is available, closest, trained, has the right
part, etc. Also, because printer average repair time is less than
that of copier/MFPs, the calls-per-day expectation is higher.
With more calls per day, there is a greater need to minimize
travel time. Route service using location intelligence can mini-
mize travel time.
Another example is traditional “call avoidance” practices. In
the copier/MFP service world, call avoidance generally involves
the technician calling the customer first to see if the problem
can be fixed over the phone. The printer service environment
lends itself well to the use of a formal, customer-facing help
desk. Today, printer service providers with customer-facing
help-desk capabilities are able to resolve 30 percent or more of
their incoming requests for on-site service. This represents a
huge labor savings opportunity, and labor
makes up 75 percent of the total service
cost in printer service delivery.
The bottom line: Today’s copier/MFP
service providers are quite capable of
taking on service delivery in the MPS arena;
however, there are a few common pitfalls
that, when avoided, can ensure effective
and profitable service results in a rapidly
growing market. �Mike Woodard is a consultant with Strategy Development, an
imaging industry management consulting firm. He has 30-plus
years experience in all aspects of field service operations
and service strategy development. During his 20 years with
IKON Office Solutions, Woodard held key regional and national
service operations positions including national vice president of
field service strategy, national vice president of field services
and national vice president of field service operations.
Prior to joining IKON, he spent 18 years with Xerox Corp. in
multiple field service assignments. Woodard advises companies
on critical success factors including target service metrics and
goals, performance management, technology application,
service growth strategies, and compensation and incentives.
In addition, he provides leadership
and management development training
designed for the service professional.
Woodard can be reached at
or (610) 742-4701.
30 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 1 0
However, in the printer environment,service may only berequired once a year, or less. The value of assigned territories is diminished.
ADVERTISER INDEX
17 • BEI Pros
www.beipros.com
2-3 • BTA East District Event
(800) 843-5059 / www.bta.org
25 • BTA Marketplace
(800) 843-5059 / www.bta.org/BTAMarketplace
11 • Digital Gateway
(866) 342-8392 / www.digitalgateway.com
14 • Digitek
(888) 353-0301 / www.digitek.com
5 • DocuWare
(888) 565-5907 / www.docuware.com
15 • FMAudit
(573) 632-2461 / www.fmaudit.com
32 • GreatAmerica Leasing Corp.
(800) 234-8787 / www.greatamerica.com/Navigator
21 • IBPI
(480) 393-1694 / www.ibpi.net
23 • Metrofuser
(888) 387-3771 / www.metrofuser.com
13 • NewWave Technologies
www.newwavetech.com
19 • ProFinance
(800) 843-5059 / www.bta.org/ProFinance
9 • Strategy Development
(610) 527-3317 / www.strategydevelopment.org
7 • Supplies Network
(877) 427-3261 / www.suppliesnetwork.com
31 • World Expo 2010
http://worldexpo.rechargermag.com
Woodard June 10:Woodard June 10 5/28/10 3:03 PM Page 27
worldexpo.rechargermag.comUSE PROMOTION CODE NQXO
Our Community. Our World. Your Business. JULY 14-15
MANDALAY BAY RESORT & CASINOLAS VEGAS
WORLD EXPO, BRINGING OUR INDUSTRY TOGETHER FOR 15 YEARS
JOIN US AT WORLD EXPO 2010, the tradeshow at the heart of our community. Be part of the largest document printing industry aftermarket event in North America! World Expo brings our community together for 2 full conference days packed with progressive education—making it the must-attend event of the year!
Session Highlights Include:
Legal Issues, Environmental Opportunities and Profi ts in 2011Tricia Judge
Servicing the New LJ P3015 SeriesSteve Geishirt
Inkjets: Just the BasicsBen Lyles
Managing Your MPS Business to Profi tabilityDoug Johnson
Seven Steps ofSales SuccessBrad Roderick
Common Cartridge ProblemsTom DiPasquale
Your Registration Includes:• 2 full conference days packed with progressive education
• Cutting edge information—new remanufacturing techniques and technical advances
• Exciting, interactive learning sessions presented byindustry leaders
• Strategies to push your business & brand forward in tough economic times
• One-on-one insight—see, touch & learn on the exhibit fl oor
• Opportunities to expand your professional network
• And much more!
Add the 2nd Annual ManagedPrint Summit on July 13th toYour World Expo Registration and Save Over $100
Details Online!
EARLY BIRD SAVINGSEND JUNE 16TH—REGISTER TODAY!
Recharger ad June 10:Layout 1 5/26/10 3:26 PM Page 1
Executive Team Business Planning to help
you develop, sell, manage and grow your
Managed Print Services initiative.
Sales Training to teach the MPS sales process
and develop teams with advanced deal
crafting and interactive best practice sharing.
INTRODUCING
Your guide to MPS success
800.234.8787 | www.greatamerica.com/Navigator
PRSRT STDU.S. Postage PaidFulton, MO 65251
Permit #38 Office Technology MagazineBusiness Technology Association 12411 Wornall RoadKansas City, MO 64145(816) 941-3100www.officetechnologymag.comwww.bta.org
GreatAmerica ad June 10:32OT0408 5/20/10 4:09 PM Page 1