11/29/11 9:07 AM
12/2/11 9:30 AM
12/2/11 9:30 AM
CONTENTS Volume 18 • No. 6
FEATURE ARTICLES 10
2012 Industry Forecast Manufacturers look to the year ahead
P R I N C I PA L I S S U E S Industry Changes What to watch for in the next five years
Compiled by Brent Hoskins Office Technology Magazine
by Mike Lamothe Office Document Consulting
What will be the greatest opportunities in the new year? To find the answers, Office Technology magazine asked various MFP and printer manufacturers to share their expectations for 2012.
Fall Colors Retreat BTA Southeast hosts district event in Waynesville, N.C.
What will office technology dealerships look like by 2015 and what industry changes will take place during that time? Over the next five years, our industry will continue to contract. We may also see change through mergers and acquisitions.
Mega-Disruptive Forces Analysts look to the future at Solutions Summit
by Brent Hoskins Office Technology Magazine
by Brent Hoskins Office Technology Magazine
BTA Southeast recently hosted its annual Fall Colors Retreat, providing dealers an opportunity to learn new strategies for success, network with fellow dealers and evaluate the products and services of exhibiting companies.
Always Be Recruiting Look at employee SOIs, colleges & recruitment firms
Leading with the ominous message of “change or die,” Randy Dazo, a director at market research firm InfoTrends, shared predictions of a significantly changed office technology industry during Questex Media’s Nov. 9-11 Solutions Summit.
Formal Sales Training Start a program to attract & retain better employees
by R. Thomas Bruguiere Crawford Thomas
by Teresa Hiatt PSSMT
In the imaging industry, the best sales managers, branch managers and vice presidents are their own best recruiters. It makes sense that the best person to sell the opportunity to a potential hire is someone from the inside.
COURTS & CAPITOLS 28
Liability in the Cloud Understand its nature & how to mitigate risks by Robert C. Goldberg BTA General Counsel
Utilizing the cloud often requires you to disclose confidential information to the cloud provider for storage or processing. The unauthorized disclosure, loss or destruction of this sensitive data can have severe consequences.
Research has revealed that more than 40 percent of companies do not provide formal education for salespeople. This research also shows that sales companies that do invest in formal training programs attract better employees and see long-term productivity increases.
D E PA R T M E N T S Business Technology Association
• BTA Highlights
Executive Director’s Page
BTA President’s Message
4 | w w w. o f f i c e t e c h n o l o g y m ag.com | December 2011
12/2/11 3:17 PM
Put More Green in Your Bottom Line
Maximize margins and hardware pull-through
Generate professional services and a recurring revenue stream
Extend the customer relationship beyond the life of the lease
Learn how to build your own successful professional services team
Benefit from one-of-a-kind proven training and go-to-market programs
Outstanding certification program and technical support
Onsite sales representatives working with your sales team
Contact us today at (888) 565-5907 or email@example.com and start realizing the benefits of a lasting Partnership.
OfficeTechnology-BTA-2011withBLI, BSM_April2011forward.indd 1 DocuWare ad Apr 10.indd 1
How? Enter the profitable world of selling document management solutions.
2/4/2011 2:05:51 PM 2/7/11 8:41 AM
EXECUTIVE DIRECTOR’S PAGE
A Brief Glance Back; More Change Ahead
y first day of work at what is now the Business Technology Association was Monday, Nov. 24, 1986. So, this year, on Thanksgiving Day, I completed my 25th year in the office technology industry. Those of you who know me, or who have read this magazine for years, know that I have not been executive director of the association since 1986; I assumed those duties in 2006. However, from the beginning I have written for the association’s magazine — for the NOMDA Spokesman, Solutions and, now, Office Technology. While 25 years is a long time, I am looking forward to the coming years. I have now spent more than half of my life as a part of the office technology industry; it has been a very rewarding experience. I have enjoyed getting to know so many dealers, observing their entrepreneurial drive as they face the nearly constant changes in the industry. When I started my job at BTA (then NOMDA), I was hired as a writer for the association’s magazine. At the time, I was a few years out of college and was working as a newspaper reporter. (I became the association’s editor in 1989.) That first day on the job, I was provided with a typewriter and a dot-matrix printer in my workstation. We did have a few PCs in the office, but they were in a shared workstation. I would just walk over to the area with my floppy disk in hand when I needed to use a PC. At this point, I cannot recall using the typewriter, although I probably did. I am sure it is now at the bottom of some landfi ll. I enjoy writing for the magazine and have now written hundreds of articles for approximately 300 monthly issues. I have never tired of it. Perhaps I would have if the digital
MFP had never emerged and analog copiers were still at the foundation of this industry, and if the resulting software-based opportunities had never come to the dealer, and if the focus on things like document workflow had not come to the forefront. But, of course, all of those changes have occurred. Today, there is no shortage of interesting topics to write about each month. If you go back a number of years in this industry, you have seen all of the changes I have seen, from the typewriters and copiers of the 1980s to MPS and managed services today. Of course, each change has always been followed by another change (or industry transition), just around the corner. Through the years, progressive dealerships have proven proficient at turning change into opportunity. Where there is change, there is need for guidance, support and expertise. See my article on page 32 in this issue and the comments of InfoTrends industry analyst Jon Reardon, who discusses an important topic. He points to what seems certain to lead to the next round of significant change in this industry — the bornin-1992-or-after generation now starting to enter the workforce. Consider, too, this generation’s reliance on always-on technology, providing instant access to information via smartphones, iPads, etc. What will happen in our industry as the number of these new workers, who are less accustomed to printed pages, continues to increase? Whatever it is, again, it will be significant. We need to keep our eye on this coming change/transition. I know you, as dealers, will enjoy pursuing the resulting new opportunities. As BTA executive director, I will enjoy working with our volunteers to ensure your association provides the tools that will help you best reap the rewards. And, as editor, I am going to enjoy writing about it. — Brent Hoskins
Executive Director/BTA Editor/Office Technology Brent Hoskins firstname.lastname@example.org (816) 303-4040 Associate Editor Elizabeth Marvel email@example.com (816) 303-4060 Contributing Writers R. Thomas Bruguiere, Crawford Thomas www.crawfordthomas.com Robert C. Goldberg, General Counsel Business Technology Association Teresa Hiatt, PSSMT www.smt.org Mike Lamothe, Office Document Consulting www.officedocumentconsulting.com
Business Technology Association 12411 Wornall Road Kansas City, MO 64145 (816) 941-3100 www.bta.org Member Services: (800) 505-2821 BTA Legal Hotline: (800) 869-6688 Valerie Briseno Membership & Marketing Manager firstname.lastname@example.org Mary Hopkins Database Administrator email@example.com Teresa Leerar Bookkeeper firstname.lastname@example.org Brian Smith Membership Sales Representative email@example.com Photo Credits: Digital Vision, iStockphoto, Stockbyte. Cover created by Bruce Quade, Brand X Studio. ©2011 by the Business Technology Association. All Rights Reserved. No part of this publication may be reproduced by any means without the written permission of the publisher. Every effort is made to ensure the accuracy of published material. However, the publisher assumes no liability for errors in articles nor are opinions expressed necessarily those of the publisher.
6 | w w w. o f f i c e t e c h n o l o gymag.com | December 2011
12/2/11 3:09 PM
Toshiba’s Encompass puts you in the driver’s seat With Toshiba’s Encompass™ solution, you can help your customers save up to 40% on document management costs, improve productivity, ensure their critical data is secure and reduce their environmental footprint. To learn how partnering with Toshiba can help drive your business, call us at 949.462.6201 Encompass. It’s Under Control. ©2011 Toshiba America Business Solutions, Inc. and Toshiba Business Solutions. All rights reserved.
Toshiba ad Dec 11.indd 1
11/28/11 11:34 AM
BTA PRESIDENT’S MESSAGE 2011-2012 Board of Directors
Include BTA Events in Your 2012 Plans
his has been a banner year for the Business Technology Association (BTA). In 2011, BTA hosted five district events, each designed to provide attendees an ideal venue to learn from industry experts, network with fellow dealers and gather new ideas and strategies. Combined, the events drew nearly 350 registrants, featured 26 education sessions and provided attendees the opportunity to learn about the products and services of 41 different companies, most of them exhibiting at multiple BTA district events during the year. Have you been among the attendees? If not, you are missing out. The resurgence of BTA’s district events was born out of the feedback of independent office technology dealers like you. Several years back, we surveyed dealers and learned that many missed BTA’s local and district educational events, which allowed them to connect with fellow dealers in their parts of the country. So, we listened. While BTA Southeast had never stopped hosting such events, the district now has two events, and one event has been added to each of the association’s other three geographic membership districts. We have developed a format that dealers and exhibitors say works well. That is, at each event, the education sessions and exhibits are in the same room — the education seating is in the middle of the room with the tabletop exhibits lining the walls. Having everyone together throughout the event provides many opportunities for one-onone interaction. BTA’s district events are an alternative to convention center-type events where it is easy to get lost in the crowd. Instead, BTA district events are more intimate
in nature, with between 60 and 80 attendees and an average of 24 exhibitors. While BTA staff members are certainly involved in the planning and logistics, each district event is guided and hosted by a team of member dealer volunteers. Your fellow dealers are selecting the education session presenters, with an eye on identifying and scheduling session topics they know will be of interest to any BTA dealer. We were pleased to schedule many of the industry’s most sought-after experts as presenters this year. This distinguished group included three hardware OEM company presidents — from Sharp, Konica Minolta and Toshiba — serving as keynote speakers. At each of the events, we also include some quality networking time in a fun, relaxing setting. In 2011, for example, attendees spent an afternoon and evening together at Universal Studios in Orlando, enjoyed a Cardinals’ baseball game in St. Louis and were entertained by famed illusionist David Copperfield in Las Vegas. (We enjoyed seeing Copperfield pull several BTA West event attendees from the audience to assist in his illusions. He made two people in our group disappear on stage; fortunately, they later reappeared.) Mark your calendar today and plan to attend one or more of BTA’s 2012 district events. The first will take place Feb. 10-11, when BTA Southeast hosts Winter Break 2012 in Orlando, Fla. After that, BTA MidAmerica will host Gateway to Success 2012, May 2-4, in St. Louis, Mo. In the fall, BTA East will host an event in September in (or near) White Plains, N.Y., followed by October’s BTA Southeast event in Waynesville, N.C. The year will end with a November BTA West event in Las Vegas. Visit www. bta.org/DistrictEvents for details and the latest updates. — Tom Ouellette
President Tom Ouellette Budget Document Technology 251 Goddard Road Lewiston, ME 04240 firstname.lastname@example.org President-Elect Terence Chapman Business Electronics Corp. 219 Oxmoor Circle Birmingham, AL 35209 email@example.com Vice President Todd J. Fitzsimons Network Imaging LLC 122 Spring St. Southington, CT 06489 firstname.lastname@example.org BTA East Rob Richardson Allied Document Solutions & Services Inc. 200 Church St. Swedesboro, NJ 08085 email@example.com BTA Mid-America Ron Hulett U.S. Business Systems Inc. 3221 Southview Drive Elkhart, IN 46514 firstname.lastname@example.org BTA Southeast Jerry Jackson All South Copiers Inc. 3610 Kennesaw N. Industrial Parkway., Ste. D Kennesaw, GA 30144 email@example.com BTA West Ronelle Ingram Steven Enterprises Inc. 17952 Sky Park Circle, Ste. E Irvine, CA 92614 firstname.lastname@example.org Ex-Officio/Immediate Past President Rock Janecek Burtronics Business Systems Inc. 216 S. Arrowhead Ave. San Bernardino, CA 92408 email@example.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkel Newman & Rosenberg LLC 222 S. Riverside Plaza, Ste. 2100 Chicago, IL 60606 firstname.lastname@example.org
8 | w w w. o f f i c e t e c h n o l o gymag.com | December 2011
12/2/11 9:37 AM
Strategy Development Invents Internet New entrants in the consulting space seem to want to claim they are first to everything. Not Strategy Development: We’re simply the most experienced and successful consulting firm in the imaging industry. Our BTA Business Planning Workshop was designed to educate the entire senior team of your company on how to achieve exceptional results, and has been met with rave reviews for the last three years. For six years we have helped companies transform; the leading MPS providers in the country are our clients. The foundation of our success is our consultants, who have deep operational experience running businesses that successfully transitioned.
So if you don’t want to be the first—the guinea pig—for some other program, talk to the experts at Strategy Development. The future of your company depends on making the correct decision, so invest in experience and not hype. For more information about our extensive consulting engagements and award winning training classes, please contact Tom Callinan at 610.527.3317 or at email@example.com.
SD ad Dec 11.indd 1
11/15/11 8:29 AM
2012 Industry Forecast Manufacturers look to the year ahead Compiled by: Brent Hoskins, Office Technology Magazine
hat will be the greatest opportunities in the new year? To find the answers, Office Technology magazine asked various MFP and printer manufacturers to share their expectations for 2012. Out of 11 companies invited to participate, seven submitted industry forecasts. Perhaps the insight shared will help you better position your dealership for a new level of success. Each of the contributors was asked to address several questions in essay form, including: What do you believe will be the greatest market and product opportunities for dealers in 2012? What are the best sales and marketing strategies for dealerships in pursuing these opportunities? What will be the most significant challenges dealers will face in 2012 and how can they best address them? What notable changes in demand/needs/expectations do you anticipate from end users in 2012? What do you see as the characteristics of the office technology dealership that is best positioned for success in 2012? Following are their responses. Konica Minolta Business Solutions U.S.A. Kevin Kern, Senior Vice President of Marketing The 2011 year has been significant for our industry, as we are seeing the continuing evolution of the traditional hardware and service business into a services-based business. Solutions-based selling has replaced the hardware-centric approaches of the past, led primarily by managed print services (MPS). Now we are seeing an even more significant shift to a services-led business model, driven by vertical-
market specialization. With the acquisition of All Covered in December of 2010, Konica Minolta Business Solutions U.S.A. (Konica Minolta) dramatically expanded our managed IT services offerings and since then we have acquired five additional managed IT services providers in the first nine months of 2011. We strongly believe that this business is well-suited to our authorized dealer partnersâ€™ business model, as it fits well with our core MFP and MPS strategies and provides a recurring monthly revenue stream similar to the MFP service business. Konica Minolta believes that managed print and managed IT services, as well as production print, will create substantial opportunities for strategically driven dealers in 2012. The commercial print business is starting to accelerate the transition from traditional offset presses to digital printing. This represents a tremendous source of new page volume. For dealers learning to establish a long-term success plan, being able to offer a broad range of products and services as a complete solution offering is more critical now than ever before in the marketplace. Savvy dealers understand that the industry is changing and are now investing in their current core business while entering new markets such as managed IT services to expand their current customer relationships by delivering enhanced value. These opportunities do not come without challenges. The critical factors for success as the business continues to evolve are people, education and partners. In our business, historically we were product experts and our sales approach was driven by this expertise. But today, our senior management team envisions that the future sales model for sales professionals will be for them to become experts
10 | Âw w w. o f f i c e t e c h n o l o gymag.com | December 2011
Cover Story Dec 11.indd 1
12/2/11 12:18 PM
Office Tech BTA R1 Nov 11.pdf
See What’s Coming Next from MSE!
Upcoming Releases! NEW Powerful Sales Tool
Corporate DVD now Available Multi-lingual version coming soon!
MSE’s Extended Yield Technologies for MPS
ABSOLUTE COLOR TECHNOLOGIES
CORPORATE DVD NOW AVAILABLE
NEW WEBSITE & CATALOG
ACT is the culmination of years of R&D, testing, and deployed resources all with the goal of providing the markets FIRST AND ONLY alternative to high priced original color toner cartridges.
New Corporate DVD MSE’s new corporate DVD highlight our technology, patents, testing protocols and consultative sales approach to the market. We will be offering a version narrated into 5 optional languages.
Our newly designed web site contains up to the minute information on all of MSE’s technologies, products, and dealer tools. The MSE catalog will be revealed in 2012 with the newest releases and up to date information.
Upcoming Absolute Color Technologies releases
Brother HL-4040 (TN-115) HP CP1025 HP CP5225 with HP CP5525 with
Quality extended yield cartridges are critical in any sustainable, profitable MPS business. Our technology and testing protocols ensure optimal cost-per-page and lifecycle reliability. Upcoming MPS Engineered releases
Award winning product.
HP P3005 (Q7551X) HP M4555 (CE390X)
800.418.4968 (US-East Coast) | 888.561.4541 (Canada) | +31.36.522.2601 (MSE Europe) Corporate Headquarters 800.673.4968 | 818.407.7500 | 8201 Woodley Ave. Van Nuys, CA 91406 © Copyright 2011 Micro Solutions Enterprises. All rights reserved. All trademarks referenced are registered trademarks of their respective owners. All model designations are for compatibility purposes only.
MSE ad Nov 11.indd 1
10/12/11 11:25 AM
on their customers’ businesses. They ness segments such as business intelQuite simply, social will market customized technologies, ligence services. We believe there is a services and support to deliver the exbright future for the independent dealer media is changing the pected outcome for the customer at that channel — a future in which dealers way business is done specific time. This paradigm shift will embrace change and seize the opportu... allowing customers undoubtedly have a profound impact on nity to expand their business offerings. to speak easily and who we hire, how we manage and how Our goal is to be our dealers’ most openly with their we compensate. Industry leaders will valued partner and we remain steadneed to have learning tools available to fast in our pledge to ensure our dealer business partners. prepare our sales teams to become expartners can count on Konica Minolta perts on their customers. It will be very to deliver the best overall value to their difficult for most dealers to do this on their own. In the case customers in 2012 and beyond. of business such as managed IT services where you need infrastructure, including network operations centers that Kyocera Mita America operate 24/7/365, we are offering those services to our dealNorihiko Ina, President ers so they can sell them without the burden of startup and Our industry is in the midst of operational costs. Clearly, partnering with a manufacturer change, with exciting new challenges whose strategy is aligned with your direction will be crucial and opportunities around every corto your long-term success. ner. At Kyocera Mita America (KMA) In 2012, it will be even more important for dealers to be we embrace such change, opting to aware of their business environments as market changes face each new challenge as an oppordemand expansion into new domains. In the past, if dealtunity for learning and growth. ers supported their customers well, were involved in the At KMA, this mission begins with me. After having joined community and advertised locally, they could control their Kyocera Mita Corp. 25 years ago, serving the company in brand image within their assigned territory. Today, custom- many capacities spanning North America, Europe and Asia, ers are tech-savvy and more comfortable in using new me- I accepted the honor of being named president of KMA in dia platforms to expertly research their technology needs August 2011. I have challenged myself and all of my KMA and the companies they wish to partner with to meet their team to continue to grow by creating new business stratrequirements. Social media, search engine optimization, egies and tools, and introducing them across our network paid keyword searches and retargeting have replaced the of dealer partners. I am tapping my experience in growing Yellow Pages as the primary research tool for customers. market share for Kyocera Mita in Europe and Asia to set an Even after the implementation of the acquired technolo- aggressive road map for KMA in 2012 and beyond. gies, customers develop a personal relationship with their KMA is in a strong financial position, experiencing proftechnology providers and chosen brands by following their itable, double-digit growth in the first half of FY2012 and respective social media platforms. achieving its strongest fiscal quarter since FY2007. KMA’s Quite simply, social media is changing the way business is unparalleled growth is a tribute to our dealers; without done with such platforms as Facebook, YouTube, Twitter and them, this level of success would not be possible. LinkedIn, allowing customers to speak easily and openly with During this incredible period of expansion and innovatheir business partners. As a result, we strongly recommend tion, Kyocera Mita Corp.’s (KMC) development teams have our dealer partners develop a strategic social media strategy continued investing in our product and solutions portfolio. to better manage customer engagements and critical lead gen- We have committed assets toward R&D for new product deeration. As customers are utilizing social media as a means for velopment, applications and services, and have continued research and customer support, it will be critical for dealers to build and support our nationwide network of dealer partto create their own social media platforms in 2012 to moni- ners. Because of these successes, we have established an agtor for incorrect and/or negative content within their mar- gressive growth strategy for the next several years and are ketplace. If a 140-character tweet can lead to global changes, developing programs for KMA to operate as a truly global why shouldn’t we use the power of social media to impact our organization within the KMC organization. brand awareness, drive sales and support our customers? Over the last two years (and including this fiscal year), At Konica Minolta, there is a corporate-wide commit- KMA will have released an unprecedented 56 products in ment to assist our dealer partners in growing their core North and South America. We have maintained a balanced businesses while working with them to develop new busi- deployment of A3 MFPs, A4 MFPs and printers to offer the 12 | w w w. o f f i c e t e c h n o l ogymag.com | December 2011
Cover Story Dec 11.indd 2
12/2/11 12:18 PM
FMAudit ad Dec 10:Layout 1
The first choice in managed print
Take your MPS business discussions to a more strategic level FMAudit Enterprise
Get everything you need to assess, analyze, propose, monitor and market your MPS Strategy. Developed on the .NET Framework, this complete package includes all of the FMAudit modules, partner interfaces and MPS best practices.
Central Server Central Server is the heart of the FMAudit software solution. Central Server is the data repository for the wealth of device data collected by FMAudit. You can leverage the information to empower your staff to develop and act on your strategic business opportunities in both new and existing accounts. The server can be installed at your company or hosted by FMAudit or an FMAudit partner.
Capture Technologies FMAudit offers the most extensive data collection software tools available in the industry today. USB Viewer for quick snapshot assessment, WebAudit for browser/e-mail enabled quick assessment, Onsite for ongoing assessment, device meter/supply/service monitoring and device optimization and Local Agent to collect non-networked device data. FMAudit provides a secure, comprehensive approach to address the needs of your diverse client base.
TCO Reporting/Green Reporting/ Customized Reports FMAudit provides reporting features to help you understand and present your solutions and recommendations. FMAudit includes TCO reporting to determine and validate current cost of ownership, “Green” reporting to analyze environmental efficiencies and customized reporting to uniquely present data for new account proposals, current account reviews and proactive fleet device management and optimization.
Complete software for remote meter reading and managed print services automation Flexible capture options TCO Reporting to determine operational costs Adaptive Service Management to filter service alerts Bi-directional ERP/CRM synchronization simplifies contract administration Green Reporting for “eco-friendly” optimization
Adaptive Supply & Service Management
Web based assessments
FMAudit includes automation to interpret and filter alerts into process workflows. You can set parameters and triggers to handle the specific needs and expectations of your clients MPS agreement. The ability to automate supply and service fulfillment and the flow of information is a primary differentiator in the delivery of a profitable MPS strategy.
Remote Onsite install and update Supply level alerts and workflows
Bi-Directional ERP Sync FMAudit provides bi-directional ERP systems data integration to enable complete automation of meter collection and accurate billing. Your ERP account data and device information can be pulled seamlessly into FMAudit Central providing ongoing data exchange and updates. To learn more about how your MPS strategy can reach new levels with FMAudit and the minimal investment required to deploy the FMAudit solution, contact us today for a demo and quote.
best possible document imaging commanagement server, which is being bination for any office environment. In leveraged as an added service, helpWith most dealers fact, during the current fiscal year, we ing them with customer engagements. still contemplating developed 19 new color and black-andAs added support to our MDS dealers, the transition to a white MFPs and A4 multifunctional KMA will continue a national advertismanaged print services printers, all designed on Kyocera’s ECOing campaign to demonstrate its MDS (MPS) business model, SYS long-life technology, and many of capabilities, making KMA and its dealer them are supported by Kyocera’s indusnetwork the clear choice for MDS. With the one constant is try-leading, three-year warranty. This all of this in place, our dealers have the hardware sales. dealer warranty continues to be the right products, service, training and most comprehensive in the industry. support to develop a true MDS business Many of our new MFPs and A4 multifunctional printers model now and into the future. can be further enhanced with unique and scalable business While we welcome change at KMA, some things will alapplications, powered by HyPAS. These applications, devel- ways remain the same. We are committed to our Dealer Advioped by Kyocera or by our third-party solutions partners, al- sory Council and will consult with its members to ensure that low our dealers to further optimize the “out-of-the-box” per- KMA and its channel of independent dealers understand and formance of KMA products. KMA is also consulting with its address each other’s issues. We are committed to growth and dealers to help them deliver the best combined hardware and have put forth the products, services, training and support to software solutions to meet their customers’ needs. For exam- reach our short- and long-term objectives. ple, KMA’s dedicated team of business applications consulMy promise to our dealers is that KMA will harness the tants is helping dealers customize software and enhance of- future by developing MFP and printer technologies, applifice document workflows across North and South America. cations and services that will help them differentiate their KMA’s business application consultants are helping dealers businesses from the competition and reap increased profits. develop custom HyPAS-based solutions and applications for We are committed to positioning KMA as a global leader individual end-user needs. We are helping our dealers help and will never stop delivering on that promise. their customers to optimize their entire document workflow processes — capturing, archiving and retrieving securely, all Lexmark International Inc. with a low total cost and environmental impact. Phil Boatman, Manager of Dealer While we are developing applications that will benefit Program Development virtually any office environment, we will also continue to The office equipment industry saw develop solutions specific to key industries. One example is modest growth in 2011. Some dealers Teaching Assistant, which transforms our MFPs into on-dehave reported strength in revenue mand test grading and analysis solutions. Our dealers have and profit, while others have seen seen unprecedented value in this application — not just for flat performance year-over-year. schools, but for any organization with training departments. Although Lexmark International As we have evolved to offer new and enhanced services and has outperformed the market (still largely flat to declinapplications, we have also implemented the Kyocera Sales In- ing worldwide) through the first three quarters of 2011, the novation Program. This sales program will help to better sup- Business Solutions Dealer (BSD) program has seen continport our dealers in capturing more profitable customer en- ued unprecedented growth for a fifth straight year. This sucgagements by seeing the value of delivering a total solution, cess is exclusively due to the loyalty of our dealers and the rather than providing hardware alone. KMA is working hand- increasing balance (A4 versus A3) of equipment sales. 2012 in-hand with its dealers’ sales forces, helping them with new will likely bring the same economic opportunities for the and innovative ways in which to engage customers. In addi- independent dealer: color, software and solutions revenue. tion, we are committed to expanding our managed document Color represents the biggest revenue growth area for services (MDS) support, helping our dealer network respond most dealers, particularly with the A4 platform. With most to requests for proposals (RFPs), emphasizing not just the dealers still contemplating the transition to a managed hardware, but more importantly, services and applications. print services (MPS) business model, the one constant is We are proud to have a growing list of nationwide MDS- hardware sales. And while profits may not be as high on the certified dealers and now have more than 100,000 KMA traditional 30 to 50 page-per-minute (ppm) color copier, devices being tracked since July 2010. We also have more Lexmark BSDs have reported tremendous success with the than 100 dealerships participating in KMA’s MDS remote XS796 that was launched in early 2011. This device redefined 14 | w w w. o f f i c e t e c h n o l ogymag.com | December 2011
Cover Story Dec 11.indd 3
12/2/11 12:18 PM
Imagine an MPS program designed around you and your business Total Managed Print provides custom-built MPS solutions that fit your business needs. OFFICE TECHNOLOGY - JULY 2011 - DOMUS, INC. 215-772-2800
OKI offers a flexible MPS platform with nine customizable modules that can be leveraged to build your MPS solution or enhance your current business model for long-term profitability. Only Total Managed Print offers: • Comprehensive Data Capture and Analysis—using OKI’s proprietary analytic engine • Dynamic Report Generator—automates manual processes and delivers customized reports • Unbiased, Strategic Recommendations—including device and brand agnostic proposals • Continuous Optimization Services—keeps your customer’s business running at its best With Total Managed Print, OKI will work with you to cover all of your MPS business needs, from consultative selling to consolidated supplies fulfillment to delivery of a full host of OEM or private labeled services.
For more information on Total Managed Print and your MPS market opportunity, visit: www.okidata.com/TMP
Feel like a partner again with OKI © 2011 Oki Data Americas, Inc. OKI, Reg. T.M., Oki Electric Industry Co., Ltd., Reg. T.M., Total Managed Print, Reg. T.M., Oki Data Corporation.
OKI ad July 11.indd 1 OKIE-9427-11 OfficeTech Ad.indd 1
6/27/11 10:17 AM 6/27/11 10:07 AM
performance-to-price expectations and dealers must learn to adjust to this allowed many dealers to bolster their change or risk ending up with a similar Dealers who transform color machines in field (MIF) and drive fate as the typewriter dealers. their businesses from profitable revenue back into the busiThe fact is, your customers are not hardware/break-fix ness. We expect this opportunity to get producing the copy and print volumes models to services-based even stronger in 2012 for the dealers who they once did. The ubiquitous memo approaches will generate embrace the distributed output stratthat was once copied and distributed to egy. Dealers are recognizing that there is all relevant parties within an organizaincreased revenues ... room for a mixed environment of A3/A4 tion is now delivered electronically as and long-term stability. models in nearly every customer locaa PDF document. As a younger, more tion. This market strategy is translating “digital-ready” generation enters the into new unit sales, resulting in more pages captured. workforce — one that has become accustomed to consumMPS software continues to be a focus area for growth in ing, producing and editing information electronically — 2012. The evolution of this business model continues to pick print volumes will continue to decline. Factor in the accelerup steam, however, many dealers are reporting the inclu- ated adoption of iPads and tablet computers and the future sion of managing customer networks as an important piece does not look as bright for those who depend on the printed to the puzzle. Managed network services (MNS) — a more page to keep the business running. fitting name — gives the sophisticated dealership an edge in The decline in print volumes is not going to reverse (at positioning itself deeper and wider with its customers. least in my opinion), however, there are new business opporJust like MPS has its own challenges, MNS can be tricky tunities that dealers are well-positioned to capture if they as well. Dealerships that do not have the bandwidth to of- take a proactive approach in modifying their business modfer MNS directly should consider partnering with a provider els. Dealers who transform their businesses from hardware/ that specializes in this capability. If customers see that the break-fix models to services-based approaches will generdealer brings total output management (print and network) ate increased revenues, profitability and long-term stability. into control while driving costs down and providing unique These services include the management of the customer’s services, then the dealer’s credibility as a trusted advisor documents (both printed and electronic), business processwill skyrocket. Lexmark Fleet Manager 2.0 has allowed sev- es (workflows) and IT services (PC help desk, network secueral dealers to gain agility with MPS, providing unique re- rity, application installation/management, etc). porting capabilities that extend beyond the printer. This is not a radical approach or idea. In fact, this approach Solutions will be an even more important play to drive has been the focus of your competition for many years. No, the document life cycle in 2012. With electronic content not the copier dealer down the street; I am talking about management becoming more than just “en vogue,” the deal- the managed service providers (MSPs) and software/printer ers who stop to ask more questions about their customers’ VARs. Just as you are exploring new business opportunities, workflow requirements will win more business. Industry- the MSPs and VARs also explored new revenue opportunispecific solutions, such as health care, education, human- ties and quickly identified printing as an attractive area of resources, retail, banking and legal, will be expected from growth. If an MSP or VAR already controlled the network, customers looking for new technology investments. When including all applications and document traffic on that netindependent dealers align their own path-to-market with a work, then capturing profit from the printing devices on the “vertical” approach, this ultimately leads to more customer periphery of that network was a logical solution. As the MSP loyalty, driving more unit sales, more profit, more pages and or VAR took over the printers, the next area of focus became more service contracts. the copier/MFPs that were also attached to the network. Speed, passion and flexibility still set the independent ofSo the race is on between the BTA dealer and MSP/VAR fice technology dealer apart from any to see who can successfully control the customer’s environother reseller. This combination will ment. But who will ultimately win this battle? Muratec is pave the road to success in 2012 and betting on the BTA dealer. We believe BTA dealers are better Lexmark will be there to help. equipped to transform their business models to include IT services than VARs adapting to the copier/MFP world. Muratec America Inc. However, it is easier said than done when it comes to Jim D’Emidio, President transforming your business. There are a ton of great partOur industry is in the midst of ners and tools on the market to help you make this transimmense change. Office equipment formation. If you have not done so, I would encourage you 16 | w w w. o f f i c e t e c h n o l o gymag.com | December 2011
Cover Story Dec 11.indd 4
12/2/11 12:18 PM
M093-FP-Ad-OTM.indd 1 Nexent ad Dec 11.indd 1
11-11-29 2:49 PM 11/29/11 4:35 PM
APRIL 18-19, 2012 THE MIRAGE • LAS VEGAS, NV www.itexshow.com
On the horizon in office solutions ITEX is where you’ll find what’s on the horizon in office solutions.
Top Reasons Attendees Visit ITEX
It’s the nation’s most comprehensive two-day event for the channel, bringing together dealers, resellers, distributors, VARs, vendors, OEMs and associations all under one roof.
• Comprehensive event experience encompassing all dealer initiatives —not just MPS • Quality of education • Opportunity to meet new vendors and existing partners • Dealer networking • MPS strategies and offerings • Service management information • Dealer support services
ITEX 2012 is where you will find: • Evolving technology: Discover the latest products and most innovative technologies that can move you beyond your core capabilities and drive your business to new paths. • Integrated processes: Gain knowledge of processes and new strategies to reposition your business, generate new revenue
Additional 2012 Value
streams, continually improve to stay ahead of the competition.
• Largest event to showcase ALL dealer offerings, not just MPS
• Profitable results: Connect with market-leading vendors and
• Global media coverage
peers to grow your dealership, increase sales, decrease expenses
• Channel only—controlled admission to the Expo floor
and build profitable solutions.
• Concurrent events
With hundreds of best-in-class exhibitors, pre-conference workshops, essential education tracks, a comprehensive MPS and MS forum, and plenty of opportunities to network and partner, ITEX is the must-attend channel event of the year.
• Outstanding networking opportunities
INDUSTRY SPONSORS: 55
ITEX ad Dec 11.indd 1
11/21/11 10:12 AM
Registration Now Open – Sign Up Today! Visit www.itexshow.com for more information
R FFE O L CIA E P S
Register at www.itexshow.com with source code A300D to redeem your special offer of $50 off All Access and Main Conference Passes
Visit www.itexshow.com for details and don’t forget to register with BTA Member source code A300D to save $50!
ITEX ad Dec 11.indd 2
11/21/11 10:12 AM
to take advantage of the educational Mobile technologies, telecommuting Customers realize sessions and programs offered through and cloud-based computing are takBTA to help you chart your course in ing hold and becoming more and more greater efficiencies by transforming your business. commonplace. At the same time, these dealing with a singleBut it is imperative that you act now conveniences and demands for content source provider that can and begin protecting your base. A simaccess anywhere, at any time, will furconsolidate their office ple, yet effective program that we have ther impact the need for enhanced seequipment ... to their created is called “Marking Your Terricurity. So what does all this mean for tory.” The concept is simple: When your printing manufacturers like OKI, its greatest advantage ... service technician or sales representadealers and end users? tive calls on a current customer, he (or As seen with the proliferation of she) should take a stack of stickers with your dealership con- managed print service (MPS) offerings, such as OKI’s Total tact information on them. This could be your generic “Call Managed Print solution, usage analysis and assessments for Service” sticker you place on your copier fleet. Once at the are valuable tools used to determine how to refresh, redecustomer location, he should affix a sticker to each printer ploy or replace printers and related equipment within the throughout the office. This accomplishes two objectives. The workplace in order to realize greater efficiencies and cost first is that it will scare off the competition by showing that benefits. This exercise is valuable for all parties involved the printers are under active management. Second, it will — from the manufacturer and dealer to their end users — provide your customer with a basic managed print services as all stand to benefit. Manufacturers see increased sales (MPS) program to give it a single point of contact for printer as legacy equipment is replaced with more multi-function service and supply fulfillment. As you add additional MPS and efficient units. In addition, existing hardware is beand IT services to your portfolio, you will have an active ing redeployed to greater advantage within the workplace. base of managed services accounts that will be primed for Dealerships sell more products and consumables by estabthe solution. The “marking your territory” approach is not a lishing themselves as one-stop-shops for everything from long-term strategy. It is simply a solution for 2012 that helps hardware, supplies and service fulfillment through remote you protect your base as you invest in new deliverables. monitoring and network management, including managed print. Customers realize greater efficiencies by dealing with OKI Data Americas a single-source provider that can consolidate their office Jackie Paralis, Senior Marketing equipment and supplies to their greatest advantage, thereManager, MPS by streamlining processes to realize increased savings. It is Each new year brings new oppor- truly a win-win situation. tunities, renewed energy and a sense As a result of such exercises, and given the continuing imof optimism that positive change will provement of color printing technologies, offices large and come. Given the economic challeng- small are incorporating more and more color printing capaes we have all faced in recent years, bilities into their work environments. The cost of operation it is this optimism, coupled with key has decreased to more affordable levels than in years past, learning acquired from facing these challenges head-on, and the cost of outsourcing fleet and network management that spur growth and drive positive change. As we look for- is now a desired option. Keeping color projects in-house ward to a prosperous new year, OKI Data Americas pauses saves time and money in an ever-increasing number of casto consider the greatest market and product opportunities es, as color printing units are more common in the work— as well as the most significant challenges — dealers will place. Color MFPs are, in fact, seeing the greatest increase in face in 2012. OKI also anticipates end-users’ most notable sales in recent months versus mono and color single-funcconsiderations regarding office technologies from a docu- tion printers. In addition, security/access controls available ment output perspective and discusses additional opportu- on these devices, like OKI’s Color Access Policy Manager nities for success in the new year. (CAPM), equip administrators to limit access to — or usage Technology is ever-evolving and is doing so at a rapid of — color output, which is a valuable and practical tool for pace. Therefore, the manner in which we conduct our busi- companies that wish to incorporate color printing capabiliness and the ways in which we communicate and share ties with the confidence that they will not be abused. information have to evolve as well. Business processes and Increasingly, printing companies like OKI are introducdocument workflows have changed, becoming increasingly ing useful solutions to augment and enhance the funcmore streamlined, more efficient and more cost-effective. tionality of their products. Such printing solutions allow 20 | w w w. o f f i c e t e c h n o l ogymag.com | December 2011
Cover Story Dec 11.indd 5
12/2/11 12:19 PM
The Uniquely Simple Managed Print Service Solution.
Manage the Entire Print Environment… Copiers and Printers. With HQueue® Basic, it’s easy to capture new sales opportunities while adding unique value to your customers’ business by saving them time and money. HQueue® Basic is the simple, easy-to-use printer monitoring solution that will provide you the ﬂexibility and freedom to choose how printer consumables and services are delivered to your customers.
HQueue® Basic will allow you to easily: ✓ Monitor all of the printers on your customers’ network through the use of a simple, yet powerful dashboard.
✓ Receive convenient Email Alerts when your customers’ toner levels are low, allowing you to deliver supplies as needed. ✓ Add on services such as break/ﬁx and migrate your customers to a full managed print solution if so desired.
The Door Is Open For Even More Opportunity! HQueue® Basic gives you control over your customers’ entire print environment. The rest is up to you! You determine what supplies and services to oﬀer and how to deliver them on your terms under your control. The opportunities are endless! Ready to get started?
Sign up for a FREE demo of HQueue® Basic by emailing HQueueBasicDemo@ussco.com. Demos are held on Tuesdays at 10:00 AM EST, and Thursdays at 2:00 PM EST.
Its Easy to get Started. © 2011 United Stationers Supply Co.
Azerty ad Dec 11.indd 1 HQueue_basic_bta_ad.indd 1
11/21/11 9:26 PM AM 11/18/11 4:21:22
administrators to control access and/ Additionally, dealers need to be able to If a dealership ... or output (CAPM), provide useful temsell professional services and software plates or graphics delivery vehicles for solutions. This takes a different mind defines itself as a certain markets including education set, a different sales approach and a managed print provider, (School Communications Pack) and different support process — one that capturing pages from retail environments (Sign Director), fameans more engagement and integraboth A3 and A4 cilitate the transfer and sharing of docution with the customer. Toshiba has devices, its market of ments (Desktop Capture), enhance mobeen, and continues to be, committed bile printing capabilities (Motion Print), to helping our dealers build the inopportunity quadruples. eliminate waste and enhance output sefrastructure to support an MPS sales curity (Ringdale FollowMe), or monitor strategy. Our LEAN MPS program inprint usage and print fleet management (PrintSupervision). stills the fundamental and essential knowledge and skills In all, and in summary, printing is actively assuming a required to identify MPS opportunities, price structuring more efficient and cost-effective role within organizations and closing MPS business. of all sizes as workplaces continue to seek solutions that Factors that will remain prominent in 2012 from the endstreamline processes, minimize waste, increase security, user perspective include mobile printing and cloud computenhance productivity and maximize return on investment. ing solutions. Recent technology is creating a new world of OKI Data Americas is committed to providing smart, re- products that utilize cloud computing, giving fast access liable and affordable printing solutions, and continues to be and mobile services to end users without having to manage a leader in this arena. it all locally. Also, ongoing concerns about security and information Toshiba America Business protection are top of mind. End users have seen the news Solutions Inc. stories about hacked hard drives, stolen credit card inforMark Mathews, President & Chief mation and compromised patient records. As end-user moOperating Officer bility increases, this will be an even greater concern. As Toshiba looks toward 2012, we As companies evolve, Toshiba intends to play a major do so with the goal of providing our role in the office of the future — where mobile devices play a dealers the products and support major role and where workers increasingly access data and that will best help them succeed. documents stored in the cloud. We encourage our dealers First and foremost, we believe color who are on the fence to pursue MPS opportunities. Toshiproducts still remain key in the traditional copier business. ba’s investment in education, applications and award-winToshiba’s continual investment in R&D allows us to manu- ning products shows our commitment to helping their dealfacture award-winning color products, giving our dealers erships become services-led businesses. By applying their an affordable color solution to sell. These are the building expertise to solve business problems, they will ensure their blocks of a managed print environment. customers want to do business with them for years to come. Secondly, we see great opportunity in managed print ser- We look forward to watching them succeed. vices (MPS). If a dealership defines itself solely as a copier dealership, its market is limited. If it defines itself as a manXerox Corp. aged print provider, capturing pages from both A3 and A4 Tom Gall, Manager of Value devices, its market of opportunity quadruples. In this econChannel Marketing omy, CIOs are taking a more strategic seat in solving busiIf the past few years in the dealer ness problems, and finance and purchasing departments markets were defined by change, 2012 are being charged with reducing costs. Now is the perfect will be defined by opportunity. And time to move from a price-driven discussion to a conversathere is no place where this opportion about savings. tunity will be more palpable than in An immediate challenge we see for dealers is the tranmanaged print services (MPS), parsition to being an MPS provider. For decades, we defined ticularly among small and medium-sized businesses (SMBs). ourselves simply as copier dealers. Our business model According to CompTIA’s recent study “Examining the Print depended on copier placements and page volume. Now and Document Management Market,” only 20 percent of our business model depends on supporting our custom- small companies are in an MPS contract, which means great ers as they print and copy to any device — not just ours. customer acquisition potential for dealers and resellers. 22 | w w w. o f f i c e t e c h n o l ogymag.com | December 2011
Cover Story Dec 11.indd 6
12/2/11 12:24 PM
However, big opportunity does not come without a major shift in stratUnderstanding the egy and subsequent reshuffl ing of other customer’s workflow business operations and processes. The opens the door reseller business model has long been to offer solutions based on price and transactional activthat provide ity. A shift to a services-based revenue model means that dealerships will not operational efficiencies be receiving as much money up front and and cost savings ... will increasingly be paid on a monthly basis. This has a significant impact on the dealership’s cash flow, so it is critical to understand the implications of this change and take the appropriate steps to manage it. But dealers need to do more than just understand their customers’ payment cycles to be successful in MPS; they need to understand their customers’ print workflows. This will help dealers expand their relationships with existing customers, presenting a particularly fruitful opportunity. Customers are looking to be more efficient and cost effective, and they are willing to pay more up front for software and services that help accomplish these goals. Understanding the customer’s workflow opens the door to offer solutions that provide operational efficiencies and cost savings, resulting in a much “stickier,” lucrative relationship. So where does a dealer with a long history in copiers and printers start to expand into MPS? First, he (or she) needs to decide whether he is going to partner with a vendor or build his own offering. Since the dealership will be processing more transactions, a dealer needs to be sure that his dealership’s infrastructure can handle the increase in volume without a lot of intervention. Without the right programs and tools, dealers could end up funneling all of their profits into managing their programs. One of the benefits of working with a vendor like Xerox is the ability to leverage tools and systems to make managing transactions faster and more cost-effective. For example: Xerox has a new plug-in that allows dealers to link our managed print tools up to Quicken or Quickbooks and download billing information right into the program. This is saving our dealers, on average, one day of back-office activities every month. What would you do with 12 extra days a year? Another way to maximize vendor partnerships is through marketing. Xerox has a marketing infrastructure for dealers to leverage that helps identify and respond to sales opportunities with tools like a co-branded website, e-mail templates and proposal builders. Opportunity does not just exist in MPS; we also expect to see printer and multifunction printer growth in 2012. While sales have been fairly flat in the past year, we expect that companies will begin to turn their attention back to
infrastructure improvements that will make a difference in their bottom lines over time. In 2012, MPS will continue to drive value, improve workflows and help businesses of all sizes better manage the way documents are printed, which presents dealers with a great opportunity to create deeper, more relevant relationships with their customers. Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine. He can be reached at firstname.lastname@example.org.
www.officetechnologymag.com | D e c e m b e r 2 0 1 1 | 23
Cover Story Dec 11.indd 7
12/2/11 12:19 PM
Fall Colors Retreat BTA Southeast hosts district event in Waynesville, N.C. by: Brent Hoskins, Office Technology Magazine
TA Southeast recently hosted its annual Fall Colors Retreat, providing dealers an opportunity to learn new strategies for success, network with fellow dealers and evaluate the products and services of exhibiting companies. Held Oct. 21-22 at the Waynesville Inn Golf Resort & Spa, a historic mountain lodge in Waynesville, N.C., the event drew nearly 60 registrants. Attendee and exhibitor comments were favorable. Among them: “I gain invaluable information and insight into our industry at these events. Education is knowledge; knowledge equals success.” — Gerry Purvis, Purvis Business Machines, Meridian, Miss. “The size, location and the people associated with this event are wonderful. Anyone who does not attend has no idea what they are missing. It is a great opportunity.” — Debbie Sheldon, Smart Power Systems, Houston, Texas The Fall Colors Retreat featured three education sessions: “Sales Force Effectiveness,” with David Ramos, Strategy Development; “Recruiting, Interviewing & Selection,” with Larry Coco, Coco Training & Consulting Inc.; and “How to Successfully Enter MPS in Smaller Markets,” with Ed Carroll, Strategy Development. The event also featured a round-table discussion, an opening reception, which included time to visit with the exhibitors, a closing dinner and time to enjoy the sites of the Waynesville area. The Waynesville Inn is surrounded by the Great Smoky Mountains on one side and the Balsam Mountains on the other. The event featured 10 exhibiting sponsors: Color Imaging, Densi, DocuWare, ESP, GreatAmerica Leasing, InkCycle, LEAF, Square 9 Softworks, Smart Power Systems and West Point Products. The next BTA Southeast event will be Winter Break 2012, scheduled for Feb. 10-11 at the Rosen Plaza Hotel in Orlando, Fla. For more information, see the ad on pages 2-3 in this issue or visit www.bta.org/BTASoutheastEvent. Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine. He can be reached at email@example.com.
Clockwise from top: Attendees listen to an education session during BTA Southeast’s Fall Colors Retreat; dealers attend the round-table discussion, which allowed them to ask questions of one another and get feedback on a variety of topics; Ed Carroll presents his education session, “How to Successfully Enter MPS in Smaller Markets.”
24 | w w w. o f f i c e t e c h n o l ogymag.com | December 2011
BTA SE Dec 11.indd 1
12/2/11 9:45 AM
The MPS Opportunity A
Clockwise from top: Attendees network at the Fall Colors Retreat’s opening reception; David Ramos leads his session, “Sales Force Effectiveness”; attendees visit with Smart Power Systems’ Debbie Sheldon (left).
Clockwise from top: Tom Ouellette, BTA’s national president, addresses attendees; attendees visit with Square 9 Softworks’ Jeff McWilliams (right); DocuWare’s Gregory Schloemer (right) speaks with attendees; Larry Coco presents his education session, “Recruiting, Interviewing & Selection.”
lthough some dealers may believe that managed print services (MPS) is only for large dealerships with customers that have, perhaps, as many as 500 or more copier/MFPs and printers, it is an opportunity for smaller dealerships with smaller customers as well, said Strategy Development’s Ed Carroll. “MPS is about building the business case and finding ways to uncover pain,” he said. “It’s all about getting the customer to change from the current environment to a new environment. These hold true in smaller opportunities, too.” Carroll shared his comments in his education session, “How to Successfully Enter MPS in Smaller Markets,” one of three sessions held at the Fall Colors Retreat. The session topic was the result of feedback from dealers who have said they have few accounts with more than 25 copier/MFPs and printers total, he said, noting that many dealers have customers with 12 or fewer output devices. “We are going to talk about how you can approach MPS in a small market or in a smaller opportunity,” he said. “In this presentation, I’m talking about companies that have fewer than 25 printers.” While dealerships pursuing larger customers need to have dedicated personnel in order to secure MPS engagements, Carroll said, “in a smaller market [and with smaller customers] there are ways that you can utilize MPS as an add-on; as a way to add on to existing business. It is not the same lengthy process and it is not the same methodology [used by larger dealerships], but it gives you the opportunity to get your foot in the door with MPS.” In his presentation, Carroll walked attendees through several sample scenarios whereby MPS could be implemented within smaller companies. He cited such basic engagements as simply selling toner cartridges with service included or adding, for example, five existing printers on a contract with a new MFP placement. He also shared what he views as the “must haves” for a “Stage One” MPS provider: a quality cartridge supplier; next-day cartridge delivery; the ability to produce a consolidated invoice; and a quality technician, either employed by the dealership or outsourced from another provider. Carroll emphasized that it is important that all dealers pursue MPS to some degree, given the transition of page volumes from copier/MFPs to printers, coupled with the growing focus on services in today’s market. “Your ability to grow your business will be severely hampered if you just remain focused on equipment,” he said. “You need to be thinking about output; it is not about copiers or printers, it is about ink on paper. Whether it is a copier or printer, it doesn’t matter anymore. It is about the needs of an end user in a particular environment.” The numbers point to the need for dealers to use MPS as a means to capture print output, said Carroll. In 2007, U.S. “office copier [A3]” placements were just under 1 million, but declined 21.7 percent by 2010 to 782,469 placements, he explained. However, he said, while U.S. “office printer” placements declined during the same time period (to 4,242,698), “printers generate almost three times as many prints as copier/MFPs.” Given the significant decline of copier/MFP placements and the greater revenue that can be expected from printer clicks — along with the end-user’s desire for a distributed print environment — the opportunities from MPS are significant, Carroll said. “MPS, in its simplest form, is an effective business process to manage output,” he said. “It is not about selling output devices or pages. It is just a way for you to take over the responsibility for them.” n —Brent Hoskins www.officetechnologymag.com | D e c e m b e r 2 0 1 1 | 25
BTA SE Dec 11.indd 2
12/2/11 4:16 PM
Always Be Recruiting Look at employee SOIs, colleges & recruitment firms by: R. Thomas Bruguiere, Crawford Thomas
n the imaging industry, the best sales managers, branch managers and vice presidents are their own best recruiters. After all, many potential employees often share with my executive recruiters that the connection they shared with their future manager played a major part in accepting the position over another. It just makes sense that the best person to sell the opportunity to a potential hire is someone from the inside. Through years of experience, these managers have inherited the best practices and procedures to consistently find top talent, without utilizing pricey job boards or knockoff recruiting sources. To consistently maintain headcount and retain employees, you must learn to “always be recruiting.” Become your own best recruiter and you will consistently control headcount by utilizing multiple resources to find the best possible employees, without settling for average or subpar talent. The most simple way to locate talented sales professionals, managers, technicians or any other personnel is to look around you. Great professionals surround themselves with great people both inside and outside the workplace. This is your sphere of influence (SOI). Utilize your SOI by thinking of past colleagues you have worked with at other jobs, or friends and acquaintances you have met along the way. Reach out to these individuals and educate them about your opening. Not only may they be interested in joining the office technology industry themselves, they may also know a great sales professional at a competitor who is looking to leave, or a friend who is looking to get into the industry. If you are able to reach out to enough colleagues and acquaintances, you will now have multiple professionals working for you to assist in filling your opening — for free. Remember to follow up with your colleagues and remind them of your opening periodically to keep them sending you leads. Expand on your own SOI by locating talented staff for your opening through your current employees. If you do not already have an employee referral bonus, create one.
An employee referral bonus program boosts morale and rewards your employees for becoming your recruiters. Encourage your employees to refer past colleagues or professionals from their own personal SOIs and sell your organization to them. Once you create the employee referral bonus program at your organization, include it in your employee handbook and continue to regularly remind new hires and current employees about the bonus. When a new opening occurs, send out a detailed e-mail outlining the open position and encourage your employees to refer as many qualified candidates in their SOIs as possible. Locate talented professionals for your higher-level openings through LinkedIn.com. LinkedIn is a powerful networking tool that can assist you in finding qualified professionals from your industry in your geographical region. Create a profile (or update your current profile) and make it as detailed as possible with your business history and education. Utilize LinkedIn’s database to e-mail qualified professionals in your region and educate them about your company and position. LinkedIn is an online marketplace of currently employed and qualified business professionals and is an especially great tool to find candidates from competitors in your area. Remember, even if someone tells you he (or she) is not interested, ask him for referrals. He may know someone who is. Another great way to locate talented candidates is by recruiting them right out of college. A college or university near your business can offer a great potential pool of entrylevel candidates. Contact career services departments at nearby schools to find out how to tap into these pools. Most large universities have free databases of current and recent graduate résumés, as well as free job postings, where you can post positions for current students and alumni. Build a relationship with the career services representatives. You can ask to speak at finance or business management classes or at professional sales classes to educate upcoming
26 | w w w. o f f i c e t e c h n o l ogymag.com | December 2011
Bruguiere Dec 11.indd 1
12/2/11 10:01 AM
graduates about your business and inwill directly dictate your organization’s dustry. If you are looking to hire entryfuture success. These tools and concepts If you are looking to hire level candidates and mold them into should definitely help you increase the entry-level candidates long-lasting employees, improving your quantity and caliber of candidates in and mold them into college recruiting may be a great option your hiring process and help to find your long-lasting employees, for your business. next superstar. The worst thing you can improving your college An often-overlooked way of locating do is start recruiting once you have an entry-level talent specifically for the ofopening — make sure you stay one step recruiting may be a fice technology industry may be as easy ahead of your hiring needs by always great option ... as stopping by your local Best Buy, Office having candidates in the interview proDepot or other big-box retail store. All of cess and always be recruiting. these large chains sell and train their sales staff members on R. Thomas Bruguiere is the vice president of recruiting printers, multifunction machines and supplies, often from the for Crawford Thomas, a nationwide staffing/recruiting firm. same brands your company may represent. These sales repreHe has more than seven years of recruiting experience, sentatives are typically paid hourly with little or no opportuboth in the office automation/digital nity for commission or bonus. If your company offers a decent imaging and financial industries. salary and commission structure, your next entry-level sales He brings extensive experience in dealing rep may be just a few blocks away at your local superstore. with the HR and hiring initiatives of Drop by one of these locations, position yourself in the printer independent office technology dealerships aisle, pose as a customer and wait for a sales rep. If you like throughout North America. his approach, salesmanship and product knowledge, give him Visit www.crawfordthomas.com. your business card and tell him about your company. A final way to find and consistently continue to locate top talent is to partner with a recruiting agency. Make sure you are selective about the recruiting agency you work with. Interview the agency’s recruiters to make sure you feel comfortable with them representing your organization. Be sure they understand your business. The worst thing you can do is partner with a recruitment agency that can hardly spell “managed print services,” let alone tell you what it is. A recruiting firm that is well-versed in your industry can accurately portray your open positions and your organization to potential candidates. Most recruiting agencies are contingency-based, meaning they will source, screen and send you qualified candidates to interview free of charge; your company only pays a fee if you decide to hire a candidate. Avoid pushy recruiting firms that demand a hefty prepayment or retainer for services. Take the company for a test drive — ask the recruiters to put their money where their mouths are and work on a contingency basis before you commit to any up-front fees. Too many dealers have been burned by recruiters who essentially take a retainer and run. The only safe option is to operate on a contingency basis with a solid 90-day candidate replacement guarantee. A qualified recruitment firm can offer unique internal resources to provide a stream of top-tier candidates. Work closely with the recruiting firm you partner with and it can become a valuable resource to your company’s development. If your organization is not currently utilizing some of these ways to locate top talent, you may need to consider adopting them as best practices. Recruiting is a year-round effort that www.officetechnologymag.com | D e c e m b e r 2 0 1 1 | 27
Bruguiere Dec 11.indd 2
12/2/11 10:01 AM
COURTS & CAPITOLS
Liability in the Cloud Understand its nature & how to mitigate risks by: Robert C. Goldberg, General Counsel for the Business Technology Association
ecently I downloaded new software for my mobile phone and immediately saw my battery consumption go from numerous hours to three hours per charge. Since I was traveling out of the country, I quickly went to a local store to speak with a “Genius.” The solution was to erase everything from the phone and re-install the software. As for my data, it was uploaded to the cloud and downloaded once the software was re-installed. My phone data is extensive and represents confidential information regarding accounts, financing and clients. How secure was my information in the cloud? Would I soon see a news report regarding the lack of security in the cloud? Have the risks and liabilities been clearly established? Even if they have, are they being effectively communicated? In the traditional software-licensing model, a vendor provides a copy of software code to the end user, who installs it on his (or her) own servers and purchases maintenance and support for that software from the vendor. In contrast, cloud computing is a different licensing model that may broadly encompass the provision of software, infrastructure, data storage, access and other online resources over a network. However, the term is most commonly used to refer to a licensing model in which an end user has the ability to access online resources on-demand, from a third-party cloud provider over the Internet. Because the cloud is a hybrid solution combining software and service, the terms and conditions governing the end-user/provider relationship are typically a blend of legal and commercial terms found in both license and technology services agreements. These complex agreements must be crafted carefully in order to mitigate the risks inherent in such contractual relationships. Utilizing the cloud often requires you to disclose confidential or proprietary information to the cloud provider for storage or processing. The recent, well-publicized data security breach at Epsilon Data Management, a leading provider of e-mail marketing services, illustrates the risks of such disclosure. In April 2011, Epsilon announced that its database had been breached by an unknown third party, allowing unauthorized access to the e-mail addresses of its clients’ customers. Companies that had outsourced e-mail marketing to Epsilon — including JPMorgan Chase, TiVo, Capital One, Best Buy, Target
and Walgreens — had to take measures to address the breach, including notifying their affected customers as required by various state breach notification laws. The unauthorized disclosure, loss or destruction of personally identifiable information or other sensitive data can have severe consequences, including the significant costs of recovering data and notifying affected individuals of the breach. With a breach that is the result of the provider (or you, as a subcontractor), the costs could be staggering. Your transactional documents must address the risks and limit the liability to the end user. There are a variety of contractual protections that can be used to manage data privacy and security risks, and to stipulate the responses required if a breach occurs. These measures are important not only as a good business practice, but also to comply with applicable federal and state laws, including HIPAA, the HITECH Act, the Gramm-Leach-Bliley Act, the Red Flags Rule and evolving state privacy laws. It is essential that appropriate firewalls and passwords are required. Establish your duties regarding lost data, back-up requirements and the obligation to reconstruct data that is destroyed, lost or corrupted. Like any maintenance or support agreement, there are included services that are available at an additional cost. Your business model will determine this. If you are providing cloud services, the agreement must have specific limitations. If you are subcontracting cloud services, it is essential that the provider indemnify and hold you harmless from any claims and costs resulting from the services being provided. Since bankruptcy is always a possibility for a new company, in addition to the indemnification, you should seek insurance for any claims. Transitioning to cloud solutions may raise new legal and commercial concerns for companies used to traditional software licensing arrangements. It pays to carefully consider all the issues before making the transition. By understanding the nature of cloud solutions, the risks they pose and the ways to mitigate these risks, you will be in the best position to protect yourself. n Robert C. Goldberg is general counsel for the Business Technology Association. He can be reached at firstname.lastname@example.org.
28 | w w w. o f f i c e t e c h n o l o gymag.com | December 2011
Goldberg Dec 11.indd 1
12/2/11 3:08 PM
BTA HIGHLIGHTS BTA would like to welcome the following new members to the association:
Dealer Members CopyCare of San Diego, Escondido, CA Grand Canyon Business Solutions, Scottsdale, AZ Northwest Print Strategies, Beaverton, OR On Demand Houston, Houston, TX Professional Document Products, Las Vegas, NV Service Associate Member Power Appointment Setting, Corona Del Mar, CA Vendor Associate Member Compass Sales Solutions, Boise, ID For full contact information of these new members, visit www.bta.org.
BTA Legal Document Library In BTA’s continuing effort to provide additional value to its members, the association has developed a library of sample contracts, agreements, forms and proposals for members to use purely for consideration as guidelines for developing their own business and legal documents. These documents have been prepared for distribution to BTA members as samples only. BTA’s legal documents encompass several categories such as Consultant Agreements, Data Cleansing, Equipment Leasing, Hardware & Software Agreements, Maintenance Agreements and Partnering Agreements. For a detailed list, visit www.bta.org/LegalDocuments. Please contact the BTA Legal Hotline at (800) 8696688 with any general questions you may have. For information on BTA member benefits, visit www.bta.org/MemberBenefits.
For the benefit of its dealer members, each month BTA features two of its Vendor or Service Associate members in this space. BTA Vendor Associate member ACM Technologies was established in 1989 as a distributor and manufacturer for OEM and compatible products for the business equipment industry. ACM’s mission is to support organizations with high-quality, lowcost OEM and compatible supplies, equipment and parts from manufacturers like Copystar, Konica Minolta and Toshiba. ACM Technologies has four distribution centers across the United States, including a 100,000-squarefoot distribution center in its California world headquarters and additional warehouse space in Illinois, Massachusetts and Texas. www.acmtech.com BTA Service Associate member Prism Pointe Technologies (PPT) has been a leader in the electronic device repair business since 2001. The company currently employs more than 230 individuals within the United States and around the world. PPT’s goal for BTA dealers is to extend their service capabilities beyond their current service territories. This allows the dealer to engage in enterprise opportunities anywhere in the United States. PPT is interested in providing not only the highest levels of service to its customers, but also backup for MPS opportunities. www.prismpointe.com A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.
www.officetechnologymag.com | D e c e m b e r 2 0 1 1 | 29
Highlights Dec 11.indd 1
12/2/11 10:06 AM
Industry Changes What to watch for in the next five years by: Mike Lamothe, Office Document Consulting
ot long ago, I was having a conversation with a couple of office technology dealership principals and they asked me what I thought their businesses would look like by 2015 and what kinds of industry changes I foresaw during that time. Knowing both dealership principals personally, I knew exactly why they were asking me the questions and it put me in a bit of an awkward position. The first dealership principal (we will call him DP1) was middle-aged, progressive, has been offering a variation of managed print services (MPS) and other strategic offerings for more than three years, and has seen his business grow year-over-year by 10 percent. He is also looking to expand and take advantage of a “downturn in the market.” The second dealership principal (DP2) is looking to retire; he has had enough. His business has contracted by an average of 8 percent year-over-year for the last three years. He never did invest in “outside-the-box” thinking and has really paid the price. So herein lies my dilemma. DP1 is in a great position. He was the first (and is still the only) dealership to offer MPS in his territory, which allowed him to secure his base customers, eliminating internal competition from possible printer or supplies vendors. Because he is moving more hardware, parts and toner, his discount levels have gone up. Not only is he thinking of expansion by acquiring dealerships vacating the industry, but he is also looking at adding additional services that will further solidify his competitive advantage with current and prospective customers. On the other hand, DP2 is looking to sell at a most inopportune time and would be ripe for the picking from business owners like DP1. Over the next five years, our industry will continue to contract. I am not sure which manufacturers will vacate, but something is going to happen on this front, either willingly or nonwillingly. We might see change through mergers or acquisitions because economies of scale are going to become a necessity. I also would not be surprised if companies like Canon and Hewlett-Packard (HP) joined to become a single entity. In my mind, it is a natural fit for both. Canon needs HP’s A4 and solid printer line-up to fill the gaps in its hardware offerings and HP requires a more unified end-user service and support model, along with full access to Canon’s A3 technology, which includes the imagePRESS monochrome and color production-print devices. In addition, both could benefit from the infusion of both
companies’ sales teams working together to allow a sharing of obvious individual strengths. Secondly, the traditional copier/MFP dealership will be gone. That is not much of a stretch, as I have seen a number of changes over the last couple of years. For example, more dealerships are now multi-vendor dealerships — in some cases carrying two or three main lines and a couple of secondary lines. Continuing on the dealer front, with less than 20 percent of dealer acceptance in the United States and less than 5 percent in Canada, MPS will become a more significant mainstay, becoming as much as 40 percent of a dealership’s annual business. As the markets continue to fluctuate and another recession looms around the corner, organizations will look to off-load areas of their businesses that distract internal support away from core business objectives. What that means is there has never been a better time for MPS. It can, and in most cases is, providing cost savings and is eliminating a company’s requirement to use internal resources to support this part of its business. For those of you who believe MPS is the latest and greatest, look at it from this point of view: Statistics are suggesting that more than 40 percent of customers’ overall print volumes are still being processed through network printers. If all you get in an MPS agreement is managing those additional meter clicks, are you
30 | w w w. o f f i c e t e c h n o l o gymag.com | December 2011
Lamothe Dec 11.indd 1
12/2/11 10:12 AM
not better off than you were before? I hope for the way we approached business in the so, because the GP on printer clicks tends past: “Get the deal and we will worry about Over the next five years, to be in the 70 percent range. the consequences later.” In a number of I ... believe dealership Now, we cannot forget about the “P” cases, we over-promised and under-delivprincipals who focus on word — profitability. It is time we brought ered, which has helped to position price as providing value-added back the levels of profitability we once exthe lead. services and charge for perienced to our dealerships. It was not Today we are seeing that end users are that long ago that we were selling 50-cpm demanding greater visibility of the actual them will become analog copiers for $20,000 or more. Then performance of their new technology. I am premier dealerships ... came the digital era — or is it called the seeing more RFPs require a service portal “giveaway era?” to give the customer access to real-time Do not get me wrong — we did it to ourselves. “You want to service reports to ensure technology performance and to hold print, Mr. Customer? I can give that to you for the same price vendors accountable for their service-level agreements (SLAs). you are paying now and I will throw in faxing and scanning as On a positive note, I am seeing some vendors make the neca bonus.” It was not long before we took the only leverage we essary changes in their organizations to meet the SLAs they had left, which was service rates, and made that the savings have agreed to. Those that are committed to that level of supfor the customer. “Oh Mr. Customer, you are paying 1.9 cents port in the long term will benefit most. for mono toner out. I can give you .009 toner in.” What a false So can we bring RFP business back to a respectable level sense of satisfaction that brought us. Imagine if you paid your of profitability? I believe the answer is “yes.” We are seeing it sales reps commission on a percentage above your floor ser- with a number of MPS wins in the last couple of years. But I vice rates. Where do you think service pricing would be now? caution you: No longer will it be good enough to talk about My bet is more profitable. what you are going to deliver to the end-user organization. Now you will have to be prepared to prove it first. Transforming Our Dealerships I went on to tell DP1 that he has a great future ahead of him If you are not already, why not charge for connectivity? Al- as long as he continues to focus on value-added services and low for five desktops to be connected and everything after continues charging for them. My advice to him was to begin that is chargeable. In a number of cases, I saw customers call to look at the levels of equipment service being offered today. in outside IT to help complete the install. Why not offer that For instance, he could offer three levels of service beginservice to your customers at a cost? ning with Bronze Service (toner out), Silver Service (toner inAnd what about when the customer upgraded its network cluded) and Platinum Service (toner in, as well as unlimited and new drivers needed to be installed? We were out in four connectivity and professional services). Look to lift Platinum hours (and sometimes more quickly, because the customer was Service by up to .003 cents, which will give your customers screaming, “We can’t print!”). Begin charging for any changes peace of mind that they will not face any additional charges to the customer’s network that might require your resources to and provide you with additional profitability. fix. If any of the company’s single-function devices (printers) As for DP2: Knowing he had been winding his efforts down require driver upgrades, external IT will charge them. in the recent past and had been relying more on his service Over the next five years, I honestly believe dealership princi- base revenue to deliver his income, he should get out now, sell pals who focus on providing value-added services and charge his business, put the money in his mattress and enjoy his refor them will become premier dealerships — not to mention tirement before any further erosion can occur. n the most profitable. Mike Lamothe is president of Office Document Consulting The last area of business I want to speak to is request-for(ODC). With 25-plus years in professional sales and proposal (RFP) business. My belief is we are close to the bottom management, he brings extensive industry experience, when it comes to pricing, not to mention everything that we having worked at both the dealership and manufacturer levels. are being asked to include. I know manufacturers will always Today, Lamothe assists clients with the implementation and rely on a percentage of market-share business, but at the pricongoing support of MPS programs and offers es we are seeing today, the number of vendors participating guidance in such areas as strategic selling, will continue to decline, reducing customer options along with development of selling and marketing tools, end-user satisfaction. Look for the cycle to begin shifting toorganizational right-sizing, and assessment ward value rather than lowest price. consulting and design. He can be reached at There is one caveat though: Before real change can happen, email@example.com or (647) 389-5048. we need to face the music first. We have to take responsibility Visit www.officedocumentconsulting.com. www.officetechnologymag.com | D e c e m b e r 2 0 1 1 | 31
Lamothe Dec 11.indd 2
12/2/11 10:12 AM
Mega-Disruptive Forces Analysts look to the future at Solutions Summit by: Brent Hoskins, Office Technology Magazine
eading with the ominous message of “change or die,” Randy Dazo, a director at market research firm InfoTrends, shared predictions of a significantly changed office technology industry during Questex Media’s Nov. 9-11 Solutions Summit. Dazo’s session, “Transformation Affecting the Office Equipment Randy Dazo Industry — Moving Beyond,” was one of several presented to dealer attendees during the event, held at the Pinehurst Resort in Pinehurst, N.C. Focused on the latest trends, technologies and business issues, the Solutions Summit provided attendees with the opportunity to hear from Dazo, InfoTrends group director Jon Reardon and other in- Jon Reardon dustry leaders. In addition, the agenda included boardroom/case-study presentations by various vendors and time for dealers to visit one-on-one with a number of participating vendors. “We are at a crossroads in our industry today,” Dazo said in his session. “There are a lot of shifts and trends that are happening that are really going to affect the imaging industry.” One of those key trends, Dazo said, is the accelerated pace of technological change. “The biggest advances in communications have happened within the past century,” he said. “Today, technology is changing and moving much faster than ever before.” Given the pace of technological change, Dazo emphasized how important it is for today’s technology purveyors to be prepared to move quickly. Companies that lag behind, “will quickly disappear off the map,” he said. “If you don’t embrace change, you will die.” Dazo said the key to predicting the future in order to make faster, better decisions is to watch for “mega-disruptive forces,” such as the struggling economy. “One of the indicators that we look at from the economic perspective is the U.S. employment rate,” he explained. “You should be looking at this all the time, because this tells you how many employees are in the workforce that potentially could be utilizing your devices.” In 2001, Dazo said, a sharp economic downturn occurred after 9/11, resulting in a loss of 2.7 million U.S. jobs. Then, between 2003 and 2008, 8.1 million U.S. jobs were created.
“However, all of the gains were lost in a matter of 26 months starting in 2008,” he said. “That was really a huge contributor to the success of managed print services [MPS] ... We had this huge economic crisis happening, and the number of [print output] devices was high and the number of employees was low.” So, Dazo said, the mega-disruptive force resulted in the rise of MPS. “That’s why MPS became so successful in the United States, because customers were asking, ‘How can we optimize?’” Another mega-disruptive force is the changing nature of the U.S. workforce, which is still unfolding and should be viewed as a significant indicator of more changes ahead, Dazo said. He asked Reardon to comment on the topic. Reardon emphasized, in particular, the population segment of those born after 1992. “They were born in the digital world,” he said. “They don’t know anything about analog. It is not part of their lives. Some of those people are now entering the workforce and the numbers are only going to grow over time. They consume content differently than all of us.” Reardon noted how the changing workplace has technological requirements that are very different than those of the analog world, such as the ability to work remotely, resulting in a growing reliance on digital communication. “We are on the precipice of fairly significant change over the next five or 10 years,” he said. “We need to be prepared for how we can address this new workforce.” It is incumbent on the industry as a whole to work toward ensuring it is prepared to provide the technology required by the changing workforce, which is nearly solely focused on digital communications, Reardon said. “We as an industry have to come together to figure out how we can operate in a tighter fashion to deliver our goods and services and stay in front of this inevitable change,” he said. “The transformation has to happen at the business-model level. How do we come together as an industry and transform the way we do business?” Reardon shared a personal observation of the changing nature of the workforce to illustrate its significance to the industry. “I have a son who owns a software company with 20 employees,” he said. “They don’t even have a printer. He says, ‘What do we need a printer for? All of our commerce is done digitally.’ It is sobering to think about that.” n Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine. He can be reached at firstname.lastname@example.org or (816) 303-4040.
32 | w w w. o f f i c e t e c h n o l o gymag.com | December 2011
Solutions Summit Dec 11.indd 1
12/2/11 10:15 AM
Formal Sales Training Start a program to attract & retain better employees by: Teresa Hiatt, Professional Society of Sales & Marketing Training
esearch conducted by the American Society for Training & Development (ASTD) and the ES Research Group has revealed that more than 40 percent of companies do not provide education for salespeople in a formal, institutionalized methodology. Simply put, despite the evidence that it is a good return on investment (ROI), some companies do not have a formal sales training program. The research also reveals some of the reasoning of why this important business process is missing. First, let us define a “formal sales training program.” It is not delivering product training when new products come out. It is not new-hire training or Sales 101 given to salespeople once and forgotten. It is not marketing-related “idea-of-themonth” webinars or two-hour sessions where sales managers impart “ancient wisdom.” A formal sales training program is especially not a “training presentation” given by sales leaders — who are marginal public speakers — as an excuse for holding a sales meeting. Formal sales training is a published, multi-year training program relevant for building sales effectiveness in a reasoned, logical fashion over a sales professional’s career. It is typically 40 hours of live instruction per year, supplemented by virtual or elearning. It is delivered by professional instructors who have solid backgrounds in sales. It is measured, evaluated, trended and related back to sales results in quarterly key performance indicator (KPI) reports. Companies that do not have a rational and consistent sales training program for all levels of salespeople are usually not rewarded with consistent sales performance. There are far too few companies executing at a best-in-class sales effectiveness level and the lack of a well-thought-out, documented training program can be a root cause. Let us look at why some sales leaders do not invest in what it takes to build and employ a formal training approach. Here are some of the excuses derived from interviews held by ES Research Group with sales managers and vice presidents: n Managers and sales executives think they have training programs, but in actual practice, these programs are not relevant to the current selling environment, are not comprehensive enough or are not even being used by the people who sell. n Sales leaders are not process-oriented and, therefore, believe that processes inherently inhibit productivity rather than enhance it. n They do not believe sales training works, since they
themselves were never trained to sell as part of a well-founded, comprehensive sales effectiveness strategy. n They cannot get a budget allocated for sales training because they are incapable of presenting a credible business case (including a target ROI) due to lack of knowledge about education business metrics. n They will not invest in training because they are compensated on operating income and training is seen as a large expense that can potentially impact their bonuses. n They will not allocate the time to have their salespeople trained, thinking that training takes away from selling time. n They believe they hire top salespeople who do not need training. Anyone who does not make quota can be replaced by another top performer, so sales management concludes that there is no need to train. n They have no idea how to select or engage with sales training professionals and out of a fear of failure, do nothing. n They have invested in a CRM system and think it is all the process their salespeople need. n Their salespeople tell them that they have been through www.officetechnologymag.com | D e c e m b e r 2 0 1 1 | 33
Hiatt Dec 11.indd 1
12/2/11 10:18 AM
If a training plan is designed, published, all the training they need and that it is just funded, executed and evaluated, it can a disruption. ... Companies that do have a significant positive impact on the The good news is almost 60 percent of invest in formal training bottom line. ROI on a solid training procompanies report they either have or are programs attract better gram can be measured in higher sales proworking toward a formal sales training employees, retain top ductivity, increased margins, lower turnprogram with the accompanying metrics performers longer ... over and reduced recruitment expenses. and reporting. In some cases, especially for The research supports that sales compasmaller companies or companies without and see long-term sales nies that do invest in formal training protraining professionals on staff, sales trainproductivity increases. grams attract better employees, retain top ing can be outsourced to sales training properformers longer, respond better to cusviders. The key is to be sure that someone, either internally or outsourced, is providing training effective- tomer needs and see long-term sales productivity increases. n Teresa Hiatt is the current president of the Professional ness and ROI information to drive decisions. Society of Sales & Marketing Training (PSSMT). Today, there are companies that specialize in providing She is a regular contributor to Office Technology magazine easy-to-deploy tools that gather sales training effectiveness and a contributing author to “Fortify Your data easily and efficiently. KnowledgeAdvisors, for examSales Force.” Prior to her current position, she ple, markets its “Metrics That Matter” product that gathers was the director of sales education at comprehensive information and reports evaluation analysis Ricoh Americas Corp., where she spent 10 against KPI targets each month. Sales Optimizer, another years directing sales training teams and sales productivity leader, provides “Focus on Measuring Reconducting research. She can be reached at sults,” working seamlessly inside Salesforce.com to plot activity quantity and quality against training programs. email@example.com. Visit www.smt.org.
Advertiser Index 27 • Ask the Analyst
2-3 • BTA Southeast District Event
17 • Miracle Service/Nexent Innovations
(800) 843-5059 / www.bta.org/AsktheAnalyst
(800) 843-5059 / www.bta.org/BTASoutheastEvent
(866) 639-3681 / www.miracleservice.com
21 • Azerty
5 • DocuWare
11 • MSE
(888) 565-5907 / www.docuware.com
(800) 673-4968 / www.mse.com
23 • BTA Marketplace
13 • FMAudit
15 • OKI Data
(800) 843-5059 / www.bta.org/BTAMarketplace
(573) 632-2461 / www.fmaudit.com
35 • BTA MPS Sales Workshop
36 • GreatAmerica Leasing Corp.
9 • Strategy Development
(800) 843-5059 / www.bta.org/MPSSales
(800) 234-8787 / www.greatamerica.com/Navigator
(610) 527-3317 / www.strategydevelopment.com
35 • BTA Service Management University
18-19 • ITEX 2012
7 • Toshiba
(800) 843-5059 / www.bta.org/SMU
(949) 462-6201 / www.copiers.toshiba.com
34 | w w w. o f f i c e t e c h n o l o gymag.com | December 2011
Hiatt Dec 11.indd 2
12/2/11 10:18 AM
Are you achieving 52%+ in service gross profits and 60%+ margins in MPS?
You’ve launched an MPS program, but are you achieving the profits you had hoped for?
We can help.
Strategy Development will help you accelerate your MPS growth and achieve profit margins in excess of 55%.
BTA Service Management University Developed by Strategy Development consultants, this two-day workshop, led by Ken Staubitz, will teach service leaders how to access their department’s strengths and weaknesses, develop specific actionable plans to address areas of opportunity, execute action items to drive sustained profitability and quality customer service, and successfully deliver profitable service in the MPS world.
Topics covered: • How to read, interpret and react to a service P&L • Aftermarket pricing • Technician performance management and development • Territory management • Workload analysis and staffing needs • How to effectively service MPS agreements for maximum profit When: February 8-9, 2012 Orlando, Fla. *Pricing: $1,995 for members ($1,495 for an additional attendee from the same dealership)
$2,425 for non-members (Non-member price
includes a one-year BTA dealer membership.)
*Attendees of the Feb. 8-9 SMU workshop will receive FREE REGISTRATION to BTA Southeast’s Winter Break 2012 district event.
For more information and to register, visit: www.bta.org/SMU or call 800.843.5059
“[The instructor’s] ability to explain the purpose of each topic and then apply it to everyday use was great. I found this class extremely beneficial and feel confident it will easily pay for itself in 90 days. I will, without a doubt, be more effective after this class.” - Blake Elliott, Standley Systems, Chickasa, Okla.
SMU-MPSSales ads Dec 11.indd 1
BTA MPS Sales Workshop We are now launching the fifth major revision to the BTA MPS sales workshop. This newly redesigned, two-day educational workshop, taught by Strategy Development consultants, will provide dealerships with the tools they need to establish a managed print services strategy that will allow them to significantly increase the quantity of captured prints, lock in customers, distinguish themselves from competitors and, ultimately, sell more hardware.
What you will learn: • Getting the appointment • Presenting a value proposition • Conducting an assessment • Building an MPS proposal that sells • Pricing an MPS contract • Quarterly business reviews • Advanced sales tactics to increase account penetration When: February 7-8, 2012 Las Vegas, Nev. Pricing: $1,195 for members $ 995 for a second member attendee $1,625 for non-members* (*Non-member price includes a one-year BTA dealer membership.)
For more information and to register, visit:
www.bta.org/MPSSales or call 800.843.5059
“Phenomenal workshop! This workshop really built a framework to get MPS off the ground.” - Neil Schuh, Metro Sales Inc., Minneapolis, Minn.
11/28/11 10:23 AM
PRSRT STD U.S. Postage Paid Fulton, MO 65251 Permit #38
Office Technology Magazine Business Technology Association 12411 Wornall Road Kansas City, MO 64145 (816) 941-3100 www.officetechnologymag.com www.bta.org
S . R T E N M I R O P ST U C GED R A U N A O Y M N I E WILL B
? U O Y H IT
W E B T I L L
Smooth your road to MPS success by attending MPS Navigator. Bring your executive team and map out your MPS plan in this strategic business planning session. JAN. 10-11, 2012 Costa Mesa, CA The Westin South Coast Plaza
HELPING YOU GET THERE. GREATAMERICA. GreatAmerica ad Dec 11.indd 1
11/11/11 4:07 PM