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CONTENTS Volume 24 • No. 6

FEATURE ARTICLES 10

2018 Industry Forecast Manufacturers look to the year ahead

SELLING SOLUTIONS Strategic Sales When adjacency moves into the core

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by Mitch Morgan Growth Achievement Partners

Compiled by Brent Hoskins Office Technology Magazine

What will be the greatest market and product opportunities for dealers in 2018? What are the best sales and marketing strategies for dealerships in pursuing these opportunities? To find the answers to these questions and more, Office Technology magazine asked 11 MFP and printer manufacturers to share their expectations for 2018. Perhaps the insight shared will help you better position your dealership for success.

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Many industry analysts have described the importance of focusing on natural adjacencies to support a core business that is flat to declining. While this is a very important approach, we are seeing a growth opportunity that is related to the core business.

Sales Training It is like a ‘three-legged milk stool’

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by Gil Cargill Sales Acceleration Coach

Key Vertical Markets A look at current office technology industry trends

I know the “three-legged-milk-stool” metaphor may be outdated, but as with any stool that has three legs, if one or more of the legs is shorter or missing, the stool will be unstable.

In this case, the stool equals the proficiency of your sales team.

by Sheryne Glicksman Keypoint Intelligence

On Sept. 21, 2017, I was honored to present a webinar as part of the BTA Building My Business Webinar Series. If you were unable to attend, I have included some of the insights shared in the webinar in this article. The statistics were tabulated from the State of the Channel Dealer and U.S. SMB surveys conducted this year by Keypoint Intelligence. Print volume is expected to decline in the coming years, but only at a small rate. There is still a huge market for print in the digital imaging channel.

LinkedIn is Evolving But it is still useful as a sales tool

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by Troy Harrison Troy Harrison & Associates

I have talked a lot about the evolution of sales over the last 10 to 15 years. One of the causes of the evolution is, of course, social media. What is interesting to me is that social media itself is evolving quickly and many people are not keeping up with this evolution.

COURTS & CAPITOLS 30

Sexual Harassment Review your policies & training practices

by Robert C. Goldberg BTA General Counsel

It is almost impossible to pick up a newspaper, watch television or listen to the radio today and not learn of new allegations of sexual harassment. It appears there is an epidemic spreading across all industries. Dealers are not exempt. A recent NBC and Wall Street Journal poll revealed that 48 percent of women in the workplace reported being sexually harassed at work. Take this opportunity to review your policies and training practices to ensure you are prepared to effectively respond to harassment complaints.

D E PA R T M E N T S Business Technology Association

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• BTA Education Calendar • BTA Highlights • BTA Member Benefits

6

Executive Director’s Page

8

BTA President’s Message

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Advertiser Index

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EXECUTIVE DIRECTOR’S PAGE

The Cannata Report Dinner a Great Event

H

ats off to Frank Cannata and the rest of the team at The Cannata Report on a very successful 32nd Annual Awards & Charities Dinner, hosted by the publication on November 2 in Morristown, New Jersey. The event garnered $175,000 in contributions and pledges to benefit the John Theurer Cancer Center at Hackensack University Medical Center, a very worthy cause.

In addition, pledges were made at the event to support Adopt-a-Soldier Platoon Inc. and Camp4Heroes. To date, The Cannata Report has raised $27,000 toward its goal of $40,000 for the camp in Fairmont, North Carolina, which serves wounded and recovering veterans.

It has been my privilege to attend the Awards & Charities Dinner each year since 2006, the year I became executive director of BTA. The event is always enjoyable and is truly a shining star in our industry each year.

In fact, I would suspect many would agree that the annual event gets better each year. It has raised more than $2.2 million for numerous charities nationwide through the years.

The event also provides the opportunity to recognize various individuals and companies based on the results of a survey of the independent dealer channel conducted

by The Cannata Report. Congratulations to the winners of the 2017 Frank Awards: Best Male Executive, Rick Taylor, president and CEO of Konica Minolta Business Solutions U.S.A. Inc.; Best Female Executive, Laura Blackmer, then senior vice president of sales at Sharp Electronics; Best-in-Class Manufacturer, Toshiba America Business Solutions (TABS); Best Software & Services Provider, ACDI; Best Production Print Manufacturer, Konica Minolta; Best Leasing

Company, GreatAmerica Financial Services Corp.; Best Marketing Strategy, Konica Minolta; Best A4 MFP Manufacturer, Lexmark International; and Best A3 MFP Manufacturer, TABS. A highlight of the evening for me, as you might expect, was seeing BTA’s own Bob Goldberg — our general counsel since 1977 — receive a Lifetime Achievement Award, announced and presented by Frank. I cannot think of a more deserving individual for this very prestigious honor. I have known Bob since 1986 and can personally attest to the fact that he has the independent dealer’s interest at heart, evidenced by his long history of advocacy on the channel’s behalf and the countless dealers he has helped through his legal guidance.

As he presented the award, Frank said it was only the sixth time he has presented a Lifetime Achievement Award in more than 32 years. “I don’t know of anyone over the years that I’ve been in the business — and I go back to 1971 — that has given more to the independent dealer than Bob Goldberg,” Frank said. “He is truly the dealer’s best friend.”

As he accepted the award, Bob described himself as “nothing more than the voice” of independent dealers throughout the country and the world. “I am deeply humbled and I’m honored, but I couldn’t have done it without the dealers’ support and the dealer communication and the relationships we’ve had throughout the years,” he said.

“And it goes beyond the dealers. We’re at a point in our industry where we truly are partners; where we work together, we profit together and we grow together; and where issues aren’t confrontational, but are matters to be resolved in a business context to move forward and to grow together. So, I am deeply honored by this recognition and I appreciate it very much.” n — Brent Hoskins

Executive Director/BTA Editor/Office Technology Brent Hoskins brent@bta.org (816) 303-4040 Associate Editor Elizabeth Marvel elizabeth@bta.org (816) 303-4060 Contributing Writers Gil Cargill, Sales Acceleration Coach www.gilcargill.com Sheryne Glicksman, Keypoint Intelligence www.keypointintelligence.com Robert C. Goldberg, General Counsel Business Technology Association Troy Harrison, Troy Harrison & Associates www.troyharrison.com Mitch Morgan, Growth Achievement Partners www.growthachievementpartners.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 Marketing Director valerie@bta.org Brian Smith Membership Sales Representative brian@bta.org Photo Credits: Bigstockphoto. Cover created by Bruce Quade, Brand X Studio. ©2017 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.

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BTA PRESIDENT’S MESSAGE

BTA Travels to Brazil in Support of Dealers

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f you have attended any of BTA’s districthosted events, then you know they provide excellent networking opportunities. Dealers attend to learn from one another, not just from the industry leaders presenting educational sessions. Generally, dealer attendees are from across the United States, but that is not always the case. Among the attendees at three of our events in recent years was Marcos Eland, director at Edocx, a BTA member dealership located in Brasilia, Núcleo Bandeirante, Brazil.

First attending the 2016 Spring Break event, hosted by BTA Southeast in New Orleans, Louisiana, Marcos later attended the 2016 BTA National Conference in Kansas City, Missouri. Most recently he attended the 2017 Spring Break event in Orlando, Florida. In all three cases, he attended to network with dealers and learn from the presenters, but he also had something else in mind. Marcos wanted to learn from our association with the hope of emulating the power of BTA to help strengthen the dealer channel in Brazil.

Marcos attended BTA’s events not only as an independent dealer, but also as an officer in the Brazilian dealer organization ABESI (known in English as the Brazilian Association of Printing Systems Companies). He liked what he saw at our events, and was inspired by the scope of our educational programs and the focus on networking; he indicated to us that his hope is to take his own organization to a new level.

Some changes have already been made.

ABESI recently changed its name to the Brazilian Technology Association or BTA. At the Spring Break event this year, Marcos, along with a fellow Brazilian attendee,

Eurico Pousa, then president of what was ABESI, extended an invitation to representatives of BTA to attend an event hosted by their organization. It was an honor for me, along with BTA President-Elect John Eckstrom, to attend that event, held Oct. 30-31 in São Paulo, Brazil. The event, which featured exhibiting vendors and educational sessions, was held in cooperation with an affiliated organization, ANETI (known in English as the National Association of Print Outsourcing Companies).

I had the opportunity to present at the event, focusing on the history of BTA and profiling some of our key member benefits.

John also presented at the event, highlighting the opportunities in managed IT services, a key area of focus for his dealership. We also served on a two-person panel, moderated by Marcos, where we addressed questions about our association and our lives as dealers in the United States. Audience members asked us everything they could think to ask about our businesses, from A to Z. Of course, we learned about the nature of managing a dealership in Brazil as well. For example, they don’t have leasing partners, so they do business with manufacturers and distributors on a cash basis, buying equipment to rent or sell. I am uncertain what it would take to change this in Brazil, but it was clear to us that they are very interested in going in the direction of having leasing partners as we do in the United States.

We greatly enjoyed our visit to Brazil. Everyone was very polite and welcoming. We certainly look forward to more Brazilian dealers joining our association and likewise look forward to working with Marcos and his associates as we continue to find ways for our associations to work together for the mutual benefit of the Brazilian and U.S. dealer channels. n — Dan Castaneda

2017-2018 Board of Directors President Dan Castaneda International Copy Machine Center El Paso, Texas dan@icmc-elp.com President-Elect John Eckstrom Carolina Business Equipment Inc. Columbia, South Carolina johne@cbesc.com Vice President Bob Evans Function4 Sugar Land, Texas bobevans@function-4.com BTA East Jim Donnellon Donnellon McCarthy Enterprises Cincinnati, Ohio j.donnellon@dme.us.com Tim Seeley Jr. Seeley Office Systems Inc. Glens Falls, NY tseeleyjr@seeleyoffice.com BTA Mid-America Erik Crane Copy Products Inc. Springfield, Missouri ecrane@copyproductsinc.net Greg Quirk JQ Office Equipment of Omaha Inc. Omaha, Nebraska gquirk@jqoffice.com BTA Southeast Tim Renegar Kelly Office Solutions Winston-Salem, North Carolina trenegar@kellyofficesolutions.com David Polimeni Rite Technology Sarasota, Florida dpolimeni@ritefl.com BTA West John Hines Copiers Northwest Inc. Seattle, Washington jhines@copiersnw.com Mike Brandon ABC Office Equipment Co. Inc. Spokane, Washington mbrandon@abcoe.com Immediate Past President Rob Richardson Allied Document Solutions & Services Inc. Swedesboro, New Jersey robr@ads-s.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkel Newman & Rosenberg LLC Chicago, Illinois robert.goldberg@sfnr.com

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2018 Industry Forecast Manufacturers look to the year ahead Compiled by: Brent Hoskins, Office Technology Magazine

W

hat will be the greatest op­ portunities in the new year?

To find the answers, Office Technology magazine asked 11 MFP and printer manufac­ turers to share their expectations for 2018. Perhaps the insight shared will help you better posi­ tion your dealership for success.

Each of the contributors was asked to address the following questions in essay form: What do you believe will be the greatest market and prod­ uct opportunities for dealers in 2018?

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 2018 and how can they best address them? What notable changes in demand/needs/expectations do you an­ ticipate from end users in 2018? What do you see as the char­ acteristics of the office technology dealership that is best po­ sitioned for success in 2018? Following are their responses.

Brother International Corp.

Bill Henderson, Vice President of Marketing 2018 will bring many opportunities for dealers as we continue to see our partners and their customers expect more than ever, from strategic counsel to accelerating digital transformation.

At Brother International Corp., we are continuing to see a growing need for workflow custom­ ization based on the unique requirements and challenges fac­ ing businesses. On top of having reliable, quality devices and flexible solutions that are easy to deploy, dealers will need to serve as business partners, providing a range of value-added services and document imaging guidance to help their cus­ tomers increase productivity and workflow efficiency.

Over the past several years, cus­ tomer expectations have grown ex­ ponentially. Business transparency is not only expected, but considered standard. Customers are savvy, wellinformed and may think they know what they need, but still require the guidance and expertise from a dealer to solve each unique business chal­ lenge. From ensuring the security of their devices on the network, to oper­ ating a mobile workforce, dealers must become trusted advisors rather than just pure hardware vendors.

Further, products should be easy to deploy and maintain in a “device-as-aservice” business model so customers can capitalize on the growing trend of consumption and subscription-based business models.

Managed print services (MPS) will continue to grow in 2018, particularly in the mid-market space. With the right MPS program in place, not only are dealers able to help their customers oversee their printing but, more importantly, help them gain visibility into their document output and let them manage their workflows more effectively.

MPS programs that include customer support, extended warranties, competitive pricing and service-level agree­ ments (SLAs) that drive cost reductions and greater pro­ ductivity continue to be critical. Much like Brother’s Value Print Program, dealers should look for programs that re­ duce their service costs, increase profits and complement their own offerings.

Additionally, dealers must continue to understand the specific needs of organizations of different sizes and the fu­ ture needs of businesses within different industries. From products to solutions, dealers must understand the com­ plexities of regulations, privacy and liabilities that matter most to customers, both current and in the future.

For example, an organization in the education space

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requires dealers to understand existing And customers are seeking solutions that ... Dealers must continue regulations and keep up with an evolvfavor reduced IT support and simplicing technology landscape that includes ity. In 2018, dealers should expect to find to be in-tune with the BYOD device support and Google Cloud cloud and digital security to be two inteneeds and wants of Print capabilities. gral components to any workflow model. their customers — Taking a stroll across the office floor MFPs will take office content manand offer solutions to reach the copy room is quickly beagement to new heights; MFPs that that solve their critical ing replaced with several fully featured incorporate digital security protocols A4 printing devices distributed among at the design level will also be pivotal. business challenges. workgroups. Features such as NFC and In the wake of workplace automation scanning keycards for device access are trends, and in an age where confidential increasingly important to keep documents secure and out information runs its way through a long document workof the wrong hands. flow process that often spans multiple connected devices in For example, our Brother Workhorse Series of printers, an office fleet, keeping business information secure is more scanners and MFPs are highly customizable and address crucial than ever. the issues of the modern office, while helping to maintain MFPs with universal logging, user tracking and user and grow our dealer relationships. This dedicated and lim- authentication capabilities should become essential. For ited-distribution series delivers Brother technology to the instance, Canon won a BLI PaceSetter Award in the Docuworkgroup with higher duty cycles; better paper handling; ment Imaging Security category earlier this year, with Keymobility, security and cloud applications; the ability to sup- point Intelligence-Buyers Lab (BLI) analysts citing Canon’s port customizable solutions; and integration with third- imageRUNNER ADVANCE MFPs’ user authentication scheparty applications that resellers are looking for today. mas, imageWARE Secure Audit Manager Express module Brother is strategically focused on aligning with technol- and advanced uniFLOW platform as some of the strongest ogy-based companies for a strengthened printing portfolio. MFPs and solutions in document imaging security.

As overall print habits continue to change in businesses, we Subscription-type solutions will also represent great remain grounded in our commitment to document man- growth and sustainable reoccurring revenue opportunities. agement, cloud services, security and mobility. We continue Yet, with this influx of new solutions and integrations to look for ways to expand opportunities for our partners to coming to market, there will also be challenges and pain offer new technology. points for the dealer community. Technology moves at a To summarize, dealers must continue to be in-tune with fast pace, and the channel must remain one step ahead and the needs and wants of their customers — and offer solu- work to maintain skill levels that support the vast number tions that solve their critical business challenges. Together of solutions now available to end users. with Brother, channel partners can look for increased sucIt will be imperative now more than ever that dealers cess in 2018 and beyond with a proven vendor that prides understand and best address their customers’ unique workitself on strong channel relationships and is here for the flow requirements by closely aligning with their solutions long haul. partners, and working closely to effectively communicate and establish the best combination of hardware and softCanon U.S.A. Inc. ware that the customer will want, ultimately streamlining Hiro Imamura, Senior Vice President the sales process. & General Manager, Business Dealers also need to ensure that when communicating Imaging Solutions Group with customers, they ask questions pertaining to workflow The phrase “office of the future” processes rather than wanted product/solution features. is misleading. It is not some market As more and more connected devices enter the workforce disruption that will happen five years and integrate with existing solutions, there will no longer from now and cause companies to be the one right solution for any customer. To help channel completely reevaluate the methods partners maintain continued success into 2018, sales repand principles they use to conduct business. It is already resentatives should concentrate on the human needs of the happening, and its guiding principles are well evident in the office. The day-to-day workflow tasks are more important market and product opportunities that dealers should ex- than ever. pect to see in the new year.

Further, once the solutions are in the customers’ hands, Workflows are streamlining. Business models are merging. the job is far from over. Canon looks forward to partnering 12 | ­w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 7

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with our dealers in 2018 to provide nextwork best for this new type of expanded In our conversations with level service and support through our relationship. Working with your vendor new Customer Solutions Center. It into understand its training offerings is a customers, security is a cludes technical support, engineering smart place to start. growing concern among and development teams all working toWhat will be the most significant executives that cannot gether within one location and employchallenges dealers will face in 2018 and be ignored. This is also ing cutting-edge technologies that help how can they best address them? In parsomething that needs to the teams to deliver enhanced solutions ticular, the transition to an expanded support quickly to dealers (and, in turn, services model for many companies will be navigated. customers) across the enterprise, probe challenging. While copier dealers are duction, large format, image capture already experts in selling via a services and desktop imaging product lines. model, they will need to adapt to include devices in the mix, In 2018, it is our intent to continue our close relationships and better understand how print and devices can be bunwith our channel partners to help ensure that both parties dled together. work together to realize the opportunities that the office of Separately, the need for securing both networks and the future can offer our customers now, so that we may help hardware will continue to be paramount in 2018. It’s no sethem pivot their business models to adopt digital transfor- cret that the frequency — and fallout — of cyberattacks has mation strategies and, ultimately, gain and maintain a com- been on the rise in recent years. A growing number of those petitive edge. Canon will remain dedicated to providing our attacks are targeting endpoint devices, such as networkdealers with the services and training needed to help them connected printers and PCs. In our conversations with cusexcel in the exciting, and sometimes challenging, times tomers, security is a growing concern among executives ahead. We wish our channel partners a very happy new year that cannot be ignored. This is also something that needs and look forward to participating in the growth of the chan- to be navigated. So, for us as a vendor, let’s make sure we’re nel in 2018 and beyond. providing our customers with the best solutions, services, tools and innovations so you can equip and enable your HP Inc. sales forces.

Stephanie Dismore, Vice President What notable changes in demand/needs/expectations & General Manager, Americas for office technology do we anticipate from end users in Channels 2018? The rise of DaaS also aligns with another trend for The era of digital transformation is 2018 — the rise of the millennial worker and the future of upon us. What is so promising is that the collaborative workplace. The fact is, millennials are the IT channel is changing at an in- now comprising one-third of the American workforce, and creasingly rapid pace, and within this their expectations are driving the requirements for office sea of change we have to continue to technology. It’s no surprise that millennials want the most commit and stay one step ahead of the curve by driving con- up-to-date devices that provide the flexibility and the tools sistency and relevancy. Businesses that embrace this and they need to do their jobs wherever their lives take them. As stay focused on relevancy in the era of IT with “everything- we continue to migrate to expanded contractual service aras-a-service” (XasS) will win and be positioned for success rangements, DaaS will push companies to fulfill that need, with IT decision makers. both from a design and functionality standpoint, as well as In particular, 2018 will see the proliferation of “device- an overall energy efficiency standpoint — a rising concern as-a-service” (DaaS) in the digital era. A recent IDC survey for both employees and customers. found that one-quarter of respondents were actively looking So, what are the characteristics of the office technolat DaaS, and among those who were not, nearly 20 percent ogy dealership that is best positioned for success in 2018? said they planned to do so in the next 12 months. That’s a Looking ahead to 2018, office technology dealers will paradigm shift. It’s as important as ever to stay consistent face new competitors: VARs, NSPs and even e-commerce — and in some cases, predictable — so customers and part- players that will continue to expand their services to inners (and, ultimately, the marketplace) see you as a leader. clude the copier business. Office technology dealers who The best sales and marketing strategies to help dealers can create a simplified approach that can help create pursue these opportunities are driven by trust, training efficiencies and allow IT decision makers to focus on data and education. I cannot recommend training enough — center transformation, emerging trends and more will win you need to know what you’re selling and what approaches in the coming year.

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and the key is they augment the core Konica Minolta High-value decorative business. So, we’re not going into a difBusiness ferent area, rather, we’re doing things Solutions print has been a that keep the core business healthy U.S.A. Inc. growing market in while expanding opportunities to deepKevin Kern, the dealer community en relationships with customers by ofSenior Vice and has the effect of fering new adjacent services like manPresident, increasing production aged voice or ECM. Business Print is going to be used differently.

Intelligence print sales.

We have great new markets in print and Services and Product Planning a huge opportunity in industrial and We have proven that the managed production print.

It’s changing and the core office business services approach to customers will shift the conversation is going to be a whole new landscape — with our traditional from being a transactional MFP discussion to one of conprint as a central part of it. tractual subscription services. At our FutuREady conferCompanies will be focusing on simplifying workflows ence this year, we made a dramatic departure from a typiin those environments. The success we’ve had in the ECM cal dealer conference by displaying only two products and business with these services has allowed us to gain net-new focusing far more on educational breakouts, software and MFP customers.

The way businesses work is going to change services. The intent was not to signal that the MFP/hardbased on a secure cognitive work environment. There will ware business is going away, but we must look at additional be more AI integration, which will change the way people business opportunities and new ways to approach customwork.

If you look at the demographics of the country, specifiers. Managed services can be anything from print, security cally within the legal and health-care fields, they are lookand IT services to enterprise content management (ECM). ing for ways to increase efficiency and enhance security by The dynamics are changing and we’ve proven that ourselves streamlining their processes and simplifying the work. JP in deals where we lead with services or ECM; not only do Morgan Chase recently developed AI software called COIN, they increase overall hardware margins, but they lead to which stands for “contract intelligence,” that can review more net-new customer acquisition.

Further driving this trend is the fact that the Workplace commercial loan agreements that consumed 360,000 hours of the Future™ is already here. As this digital transformation of work by loan officers and lawyers in mere seconds. These impacts the way we interact with work environments, it emerging uses of technology like AI will dramatically affect dramatically increases the expectations users have of tech- how business of all sizes approach work and IT. By ascribing to an on-demand, usage-based strategy, nology. To help ensure we continue to drive customer value, dealers ultimately become managed services providers, we are transforming our business to become a leading IT offering everything from hardware solutions to managed solutions provider and have grown our portfolio to include print, managed voice, managed security and more. This Workplace of the Future and Workplace Hub, both of which business model gives them an edge over the competition are available to our dealers. and, more importantly, keeps them relevant in this rapidly The other area where we’ve seen success is the emerging changing work environment.

We see this strategy validated industrial print space. High-value decorative print has been by our success and that of our dealers, who have been early a growing market in the dealer community and has the efadopters of this direction. fect of increasing production print sales. We also see a big The characteristics of the office technology dealership future and some early dealer success in the packaging and that is best positioned for success in 2018 are to be openlabeling space, selling to both printers and brand owners. minded and try new things. They should be agile, have marThis is all upside, as the need for sophisticated packaging ket understanding and lead with customer intimacy. Anyprinted digitally is growing exponentially. thing that addresses the workplace of the future is going We’re in an environment that has created both challenge to be significant for all.

They should be building managed and opportunity. We believe print will continue to be an imservices strategies and expanding their portfolios to adportant technology in the Workplace of the Future and we jacent markets to leverage their support infrastructures remain committed to maintaining and innovating best-inand gain net-new clients.

Dealerships that are aggressive class print technologies. in pursuing these new growth areas and lead their cusHowever, the customers we’ve talked to are thinking tomers’ transformations will be well-positioned for longabout how to respond to the digitization of the workforce. term growth.

The opportunities are broader than we’ve had in some time 16 | ­w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 7

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to dig in, those determined to learn KYOCERA about their customers’ operational needs Success will be driven Document and issues, and those willing to embrace Solutions by both dealer/customer the idea that the sale is always ongoing, America Inc. relationships and 2018 is going to be extremely rewarding.

Danielle manufacturer/dealer And what about manufacturers?

Wolowitz, relationships, and the What is our role? Is our responsibility Vice President, simply to continue to develop innovastrongest relationships Corporate tion after innovation, to relentlessly imMarketing Group will win. prove every aspect of companies’ docuThe forecast for 2018 comes down to ment and data infrastructures? one thing.

Absolutely.

But that’s not all.

In 2018, our success will also It isn’t a buzzword. It isn’t cloud or mobile or apps or hinge on (you guessed it) relationships.

As with the dealer/ green or cybersecurity. It isn’t even a piece of technology. customer relationship, the manufacturer/dealer relationBut it will be a focus for anyone selling the technology — the ship will not just be about supplying technology, but about spectacular technology — our industry produces. improving businesses — our dealers’ businesses.

That will In 2018, success in document imaging will be driven by mean providing training opportunities in solutions selling, one thing: relationships. Success will be driven by both dealer/customer relationships and manufacturer/dealer re- access to industry experts and whatever resources dealers need to serve as trusted advisors to their customers. At Kyolationships, and the strongest relationships will win.

Technology continues to be the backbone of our indus- cera, this kind of support continues to be our top priority.

In 2018, the document imaging industry will once again try — hardware primarily and software increasingly. We are produce technology that enables businesses to run more protechnology companies. It’s what we sell, earning billions of ductively, more efficiently and more profitably. And the dealdollars every year. For many years, our value to our customerships that have the most trusted advisory relationships ers was simply the technology itself. And every year it got with their customers will sell more of it than ever before. faster, more reliable, and with more functions and features.

But that’s not how it works anymore. The value we proLexmark International Inc. vide is no longer the technology itself; it’s how that technolGreg Chavers, Vice President, ogy improves our customers’ businesses.

North America Channel Sales Selling now means explaining how technology helps This has been an exceptional year companies run more efficiently, how it simplifies everyday for Lexmark and we’d like to extend a tasks and how the cost to customers is more than offset by special thanks to our office technolthe contribution to their bottom lines. ogy dealer community for helping us Yes, it is amazing that an MFP can be used to access a exceed our 2017 goals. As we look forcloud-based CMS, retrieve a document and then send it diward to 2018, we’d like to share some rectly to an iPhone anywhere in the world. But if your cusof the key areas we will focus on to help our dealers continue tomer doesn’t understand how that particular capability to succeed. will help its business, you won’t make a sale. And if that cusThe A4 platform will continue to be a key growth driver and tomer doesn’t believe that you know how its business works, opportunity maker for dealers. When looking for an A4 monoand how to make it run better, you won’t make a sale. chrome and color MFP provider, dealers must look to those It isn’t easy. Expertise in document- and data-related OEMs that offer more value, superior security capabilities and business processes takes time. Insight into a client’s speoutstanding reliability.

Successful dealers will also continue cific business process takes discussions, and ongoing dito invest in growth market opportunities that include moving alogue with multiple stakeholders and different departfrom single-function devices to MFPs, and from monochrome ments. It takes time. In other words, the expertise your laser to color laser, which has become much more affordable. customers now require can only be achieved through Ultimately the strongest dealers aren’t selling the cheapdeep, consultative relationships — trusted advisor relaest products — they are selling what’s right for their customtionships. The reward? The best, longest-lasting, most ers.

With that in mind, Lexmark is refining our technology profitable sales opportunities. platforms to more easily empower our dealers’ employees This new reality will create significant challenges and enorwith the knowledge, tool kits, offerings and support to sucmous opportunities for individuals and organizations in our cessfully address customer pain points. industry. It really depends on the mindset. For those willing 18 | ­w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 7

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Our dealers tell us it is becoming more drive trends. This was true in 2017 as difficult to maintain profitable growth much as it was 10 years ago. But the reWith all this potential for while trying to be all things to all customsulting trends are unique each year. In dealership expansion ers. Going forward, dealers may consider 2018, fortune will follow those dealers in 2018 comes an building a winning practice that focuses who remain open-minded to the changinherent challenge ... on serving a specific vertical industry es their customers are driving. it’s important for dealers and/or a unique horizontal solution to The most notable trend that’s sure to drive profitable growth. This means they continue in 2018 is a customer migration to assess their internal must partner with companies that can to smaller, A4-sized printers and MFPs. sales organizations. provide more than just a box solution.

While A3 tabloid devices have long been They need partners that can provide the the go-to solution for dealers serving the people, technologies and programs to get them over the goal office space, many customers are finding less use for 11-byline. Industry analysts cite our vertical industry expertise as a 17-inch output and asking for devices that take up less space. key differentiator for Lexmark, so we are very well-positioned A balanced product portfolio with a proportionate mix of A3 to be that partner. We help dealers achieve success with verti- and A4 devices will be key for dealers moving forward. cal solutions and expertise that we have developed and refined More and more, IT decision-makers in offices around the through thousands of successful customer engagements. country are seeking a streamlined, one-stop technology Security is another key trend that will continue to shopping experience. For dealerships that have stayed true differentiate office technology dealers in 2018. The ability to to selling copiers and MFPs, this is an invitation to move beoffer customers end-to-end security solutions, both at the yond hardware in 2018 and begin offering software and mandevice and across the network, is becoming table stakes. As aged print solutions that not only deliver output reliably, but security breaches continue to make headlines, customers of also improve everyday document workflows and efficiencies. all sizes demand that their document transmissions to and It’s one thing to expand your presence within the tradifrom the MFP are secure. Lexmark will continue to provide tional office environment to include different hardware opfull-spectrum security across our entire technology portfo- tions, software solutions and even managed print services. lio. We will also continue to educate dealers on identifying It’s quite another to diversify your portfolio with the aim of client security requirements, driving a more consultative growing into new markets and industries. There are very and higher-value approach to their offerings. profitable opportunities in color-critical verticals for those In 2018, successful dealers will continue to invest in flexible enough to pursue them. In retail and financial secgrowth market opportunities, finding new opportunities in tors with demand for colorful, customer-facing output, A4, device consolidation and vertical solutions. high-quality color printers and MFPs are often a perfect fit.

If there is one constant in our business, it is this: dealThat’s not to say the mono print market is devoid of new ers who have the clearest path to success are those who potential. In the architecture, engineering and construction partner with OEMs offering the best balance of technology, verticals, wide-format plotters and multifunction printers sales support, service support and training deliverables. are essential assets to daily work. This presents yet another Lexmark is committed to providing these resources, elevat- chance for dealers to expand their footprints and make lasting our dealers above the rest by helping them deliver more ing connections with new customers. value to their end customers.

With all this potential for dealership expansion in 2018 We thank our dealers for an exceptional 2017 and look comes an inherent challenge. Before going headstrong into forward to a wildly successful 2018! new product offerings, it’s important for dealers to assess their internal sales organizations. Investing in wide-format OKI Data Americas plotters without the necessary sales expertise to sell them is Mark Hansinger, General Manager, sure to lose money and, possibly, even alienate customers.

Office Business Unit Trust is vital in business. Every new growth strategy — be it 2018 will continue to be the year of venturing into new verticals or simply expanding within fathe customer. What does that mean miliar territory — should be driven by a desire to strengthen for a dealership that puts customers the customer/dealer bond and maintain that trust. first every year? It means a renewed Since the turn of the century, technology has made our commitment to understanding cus- world increasingly flexible. We’ve grown accustomed to tomer needs and pain points, and getting things simply and quickly. Companies that aim to molding your product portfolio to solve them. Consumers sell a product or service must do so with more flexibility and 20 | ­w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 7

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personality than ever before. To keep up, each day of 2018 must be treated as an evolution so that by this time next year, your dealership is well-positioned to capitalize on the customer-driven trends of 2019.

we do think that they will benefit from slowly expanding into adjacent markets.

At the most basic level, paper documents are a way to share information.

The document business is not just made up of copiers or printers, but of easy ways to make information available.

We have always been in the “information exchange” business. Given this, the most logical adjacent market for copier dealerships to expand into is the meeting space. A meeting is another way that people in the office share information and communicate within an organization.

In essence, it is a visual paper document in real time.

Our AQUOS BOARD® interactive displays are a great example of how copier dealers are getting into the meeting space adjacent market. By facilitating the interactive sharing of information within small- to medium-sized businesses, interactive displays allow our dealers to not only get their feet in the doors of businesses that might not have been looking for new copiers, but also expand their businesses into video conferencing.

Another area where information is exchanged is the proverbial water cooler. This may not be a typical high-tech category, however, Sharp’s recently launched Skywell™ Atmospheric Water Hydration System is a technology product that will change the way people think of water. The Skywell is a new way to deliver clear, pure water to offices that is environmentally friendly and does not necessitate a lot of expense. Here, the information connection can also be an on-screen display that allows small businesses to communicate information back to employees and visiting customers. Through advertisements and targeted communications, individuals literally don’t need to go any further than the nearest water cooler to access the latest company announcements or promotions.

The next big change is the ability for dealers to get further into the IT space. This seems daunting for dealers who are not yet sure how to ensure their dealerships become fullfledged IT companies, and that’s OK. Sharp has ways for dealers to make the transition. The biggest obstacle for dealers?

The “all-in” jump to IT. The challenge is that many end users are not excited to change all their IT technology. They want to augment the system they currently have in place, not purchase a completely new one. One way that manufacturers can help dealers is to deliver technology platforms that add function to already-existing office products. In other words, take what the end user already has and make it better.

The leaders in the IT space are adding more to this functionality through artificial intelligence (AI). AI has the potential to not only improve our office lives, but our personal lives as well. We believe that Sharp is very well-positioned

We have always been in the “information exchange” business.

Given this, the most logical adjacent market for copier dealerships ... is the meeting space.

Ricoh USA Inc. Jim Coriddi, Vice President, Dealer Division Change is the one constant companies have been discussing in recent years. The commonly discussed factors driving this throughout the industry are clear: reduced print volumes, lower margins and product commoditization.

There is also a great deal of opportunity and, in 2018, we will see who truly has the courage to change.

Savvy companies will put a greater reliance on their dealer networks. Three elements are essential for making this business model successful: (1) Having deep partnerships and developing strategic plans with dealers; (2) Increasing investments in dealers to help them grow their businesses; and (3) Ongoing collaboration with dealers to address shifting market conditions.

At the end of the day, having a successful business is about understanding your customers’ needs. Dealers know this better than anyone. They have strong relationships with their customers and are strengthening them by providing increased offerings, including collaborative technologies and services. They will also continue to enhance how they run their businesses and help customers with predictive analytics, remote support and other smart technologies.

Embracing change is about embracing opportunity. With the strongest dealer network in the industry, we are excited about 2018.

Sharp Imaging and Information Company of America (SIICA) Mike Marusic, COO, Sharp Electronics Corp., and Executive Vice President, SIICA Sharp is looking forward to 2018 when the strategy between Tech Data, Foxconn investments and the dealers’ loyalty to Sharp will pay off with new products and solutions, allowing our dealers to grow their businesses.

Admittedly, to do this well, dealerships will need to remain flexible and open to some change; while we don’t believe our dealers will need to change their hardware business models, 22 | ­w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 7

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to blend these two worlds seamlessly their businesses and respective markets, Successful dealerships through leveraging the breadth of rewhile leveraging strengths to expand search and knowledge that comes from sales within their existing client bases. are learning ways to our investor Foxconn’s existing relationThe availability of state-of-the-art digital leverage existing ships with many of the world’s most insignage is one example of how Toshiba is customer relationships to fluential IT and software companies. creating additional revenue opportuniprovide services that are By doing this, we are well-positioned to ties for resellers, while simultaneously not necessarily related augment what individuals are already providing customers with unique and experiencing in their personal lives and customizable technology. to office printing. bring it to the office.

Though there are many opportunities One way to do this is for dealers to for expansion, resellers should be cognimove into managed network services. We absolutely encour- zant of existing challenges while understanding how to best age this, but there are other options available as well. By us- address such obstacles. Clearly, the continued decrease in ing AI in a logical software platform, dealers can augment demand of both printed pages and A3 hardware are the bigtheir customers’ existing products and make them better. gest challenges for both OEMs and their channel partners.

Sharp is perfectly positioned to help dealers do this. Our reSuccessful dealerships are learning ways to leverage existlationship with Foxconn on the development side and Tech ing customer relationships to provide services that are not Data on the sell-through side allows us to provide a breadth necessarily related to office printing. Rather than prescribe a of augmentation that will ultimately allow dealers to grow specific product or service, I suggest dealers examine their custheir businesses. Sharp dealers are already taking advantage tomer bases, core competencies and employee skill sets, as well of this process today. as have a willingness to invest in new services while creating But growth may require at least a little flexibility from our business plans that will yield incremental profit and growth. dealers, as well as the ability to open up their business models Successful resellers will additionally have a clear underto adjacent products and solutions. We believe that dealerships standing of the specific needs of their customers. The advent that can successfully do this will prosper in 2018 and beyond. of MPS resulted in customers looking at their document imaging fleets and asking, “Do I really need all of this?” I Toshiba America Business believe this trend will continue in 2018. Our recently introSolutions Inc. duced customizable user interface, Elevate, is addressing Scott Maccabe, President & CEO this need by enabling end users to complete sophisticated Prior to sharing my views on 2018, and multistep tasks with the touch of a button.

I want to thank the entire Toshiba While I’ve outlined some thoughts for dealers to consider team for its exceptional efforts this for achieving 2018 success, there are a few more things they past year. I also want to spotlight the should ponder. They must expand beyond merely selling and impressive accomplishments of our servicing MFPs and distinguish themselves in the market dealers, distributors and TBS for en- as competent and reliable providers of document manageabling us to exceed our revenue goals in 2017. ment and workflow solutions. Successful dealers will also With 2018 almost upon us, there are many opportunities for thoughtfully build their brands in their local marketplaces resellers to consider for experiencing success in the new year. with good service and ethical sales practices. Their customFirst, I would urge dealers to emphasize the elements of their ers should trust them to deliver. businesses where they excel. Despite dips in demand, there is Toshiba has a long and rich tradition of closely collaboratstill plenty of opportunity in the document imaging space — ing with reseller partners to enable their success. This priority both in terms of hardware and solutions. I believe the biggest continues as we equip our reseller community with premier near-term incremental revenue and profit gain for a dealership hardware and workflow solutions is to simply focus on better managing its core business plan. backed by best-in-class training, eduAnother fundamental element for 2018 prosperity is makcational opportunities and technical ing sure sales teams are fully aware of and can articulate support in 2018 and beyond. the benefits of the latest multifunction printer (MFP) and solutions technology. Before getting into something new, Xerox Corp. make sure that the hardware and managed print services Darren Cassidy, President, (MPS) business is firing on all cylinders.

U.S. Channels Unit I also encourage resellers to comprehensively understand Broader demand for managed print 24 | ­w w w. o f f ic et ec hno lo gy m a g.c om | De c e m b e r 2 0 1 7

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the most of the opportunity, dealers services (MPS), rapid advances in appsPartners that make the should take advantage of OEMs that based solutions and continued growth offer robust MPS portfolios that inin production color among small- and effort to become more clude custom training, access to sales medium-sized businesses (SMB) will relevant to their customers and assessment tools, pricing considmake 2018 a year of golden opportuniand more marketerations and marketing support. ties for BTA members. specific ... will be well A second strong opportunity in 2018 The SMB market BTA members target positioned to prosper is in meeting client needs for more deis highly lucrative and rapidly growing. vice integration to streamline workWith 75 percent of office technology sales and grow in 2018 ... flows unique to their businesses. More to SMBs made through indirect channels, and more channel partners will meet the opportunity is ripe for the taking.

In 2018, we see MPS as a great opportunity for dealers this need by building applications for their customers’ mulwho put a strategic focus on targeting the underpenetrat- tifunction printers, an emerging trend that will grow expoed SMB market. With MPS, dealers capitalize on a growth nentially in the coming year.

One model of success with this approach is Just-Tech, a opportunity they know — print — while building a point of differentiation from their competitors, more touch points Maryland-based print, network, IT and apps solutions comwithin their clients’ businesses to strengthen relation- pany. Just-Tech has developed and sold custom apps for ships and customer value by better managing print assets. multifunction devices for the past two years, with apps now Partners not only grow — many report their year-over- accounting for 10 percent of the company’s revenue. Justyear growth is largely driven by providing MPS solutions Tech hopes to triple app sales next year. In addition to proto SMBs — they protect their customer bases. To make viding a new and accelerated source of recurring revenue, apps are a competitive differentiator for dealers like JustTech because they increase the partner’s value to its clients.

As with MPS offerings, dealers should partner with OEMs that provide training and ongoing assistance with building, pricing and marketing custom apps for MFPs, including help getting started, and in using hardware and software tools to efficiently create apps for customers.

Finally, we see production color as an area of continued growth. Color page volumes continue to grow as offset page migration to digital accelerates, particularly for short runs.

Specialized media applications can add true differentiation and deliver high margins.

With careful planning to get business basics right, coupled with growth opportunities into such print adjacencies as MPS, BTA members can reap the rewards of added profit and, in turn, fund further business expansion.

The new year will bring some significant challenges as well. Technology adoption has enabled completely new ways to interface with customers, mostly online or mobile.

Increasingly, acquisition decisions are practically made before customers talk to sales representatives, making a strong digital presence online and through social media more important than ever.

Nonetheless, print continues to offer a tremendous growth opportunity, particularly in the SMB space. Partners that make the effort to become more relevant to their customers and more market-specific, and that leverage MPS and make their online presence a priority, will be well positioned to prosper and grow in 2018, and for many years to come. n 26 | ­w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 7

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Key Vertical Markets A look at current office technology industry trends by: Sheryne Glicksman, Keypoint Intelligence

O

n Sept. 21, 2017, I was honored to present a webinar as part of the BTA Building My Business Webinar Series. If you were unable to attend, I have included some of the insights shared in the webinar in this article. The statistics were tabulated from the State of the Channel Dealer and U.S. SMB surveys conducted this year by Keypoint Intelligence.

Print is Not Dead Print volume is expected to decline in the coming years, but only at a small rate. Keypoint Intelligence estimates that over the next four years, print volume will only decline at a -1-percent compound annual growth rate (CAGR), provided no recession occurs during this period. Considering that approximately 811 billion prints were captured in 2015, there is still a huge market for print in the digital imaging channel.

The Vertical Markets The health-care vertical market represents 16.8 percent of total print. It has one of the highest adoption rates of managed print services tools, using print job auditing features more frequently than other verticals. Health-care organizations tend to default all their network devices to black-andwhite printing. They also show one of the highest rankings for business process automation, with accounts payable and receivable being the most automated business processes.

The education vertical represents 11.9 percent of total print.

However, it appears to have one of the lowest usage rates of managed print services tools. When schools/universities do use these tools, they focus on print job auditing and tend to default to black-and-white printing. The education vertical ranked low on implementing business process automation, giving dealers ample opportunity to increase revenues.

The financial and insurance vertical represents 11.2 percent of total print volume. The Keypoint Intelligence survey revealed that secure print and release, as well as job

accounting, were the top managed print services features used in this vertical. That said, this vertical also appears to have one of the lowest adoption rates of managed print services tools.

The public administration and professional services verticals each represent 10.8 percent of total print volume.

The professional services vertical shows a low usage of managed print tools, with a focus on only allowing select departments to print in color. There is opportunity in both verticals to help organizations automate their business processes.

The manufacturing vertical market represents 7.5 percent of total print volume. It has a higher percentage of business process automation in place compared to the education, financial and insurance, and professional services verticals, along with a high usage of print management tools, with print job auditing as the most commonly used feature.

The chart above excludes volume from Segment 5 (MFPs with print speeds between 70 and 90 pages per minute [ppm]), Segment 6 (91-plus ppm, dominated by light production models), serial inkjet and home-office environments. We do expect to see expansion in the coming years with inkjet products and light volume cut-sheet production printers. Consequently, by 2019 it is anticipated that 58 percent of all digital cut-sheet production print volumes will be printed on inkjet products.

It is important for our dealers to understand the types of documents their customers value and are printing so they can develop strategies for capitalizing on these new preferences.

Document Management Regardless of the vertical, it is important for sales reps to be educated on key business processes, including accounts payable, accounts receivable, human resources onboarding and financial document processing. Reps are encouraged to build relationships with business leaders in these departments (if they have not already) to help identify what challenges they face and what opportunities exist to modernize

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their workflows. Today, there are still will be looking for ways to track, monitor many companies that express interest in and visualize data to help them answer Keypoint Intelligence business process automation. business questions, solve business probfound that most Survey results revealed that 45 perlems and find new opportunities. Dealers companies experienced cent of companies intend to purchase a can capitalize on their interest in having a 28-percent savings document management system within the right tools in place for these purposes. in the cost of printing the next year, regardless of the vertical It has been stated that 6 to 8 percent market. This gives sales reps a huge reveof a company’s revenue will be spent on with an efficient nue opportunity, particularly if they can technology.

What are you doing to capMPS program. get target customers into the sales cycle ture some of that revenue? n now. Keypoint Intelligence suggests that Sheryne Glicksman is director of the reps fine-tune their quarterly or periodic business review Channel Strategy Consulting Service at Keypoint Intelligence. She processes with current customers to use them as platforms has spent more than 25 years in the office technology industry, to help build technology road maps. They can also use them starting her career as a copier sales rep, and later serving as a as opportunities to find out how much technology really sales manager and office document matters to their customers, as well as how committed they specialist. In addition, Glicksman served in are to facilitating change within their organizations. various positions at GE Commercial Finance, Only 38 percent of respondents surveyed said they had Toshiba, Konica Minolta and Compass Sales plans to invest in a cloud document or content solution in Solutions. She can be reached at the next year. This makes one wonder how the other comsheryne.glicksman@keypointintelligence.com. panies view the cloud. It also reinforces the importance of Visit www.keypointintelligence.com. educating both customers and sales reps about cloud offerings. Lunch and learns, as well as educational webinars, are good ways to prompt discussion.

Print Management and Security Keypoint Intelligence found that most companies experienced a 28-percent savings in the cost of printing with an efficient MPS program. That said, customers surveyed also stated that they did not receive better equipment. MPS providers should ask themselves how they can take this savings and incorporate better hardware or software into their customers’ environments to help them be more efficient.

Survey results revealed that only 37 percent of companies use a print management software tool. Of those with a print management tool, only 34 percent use it to monitor both single-function and multifunction volume. There is opportunity here for dealerships to take their customers’ managed print services businesses to the next level. They can do this by incorporating more software tools into their managed print services programs to align with customers’ business drivers. They can also start offering new services on pay-as-you-use models.

It is also important for dealers to address security with their customers, engaging in dialogue around infrastructure and document security. Specific security topics to discuss include cybersecurity, phishing attacks, role-based security levels and automatic port locks.

Channel partners are also advised to consider how their reps can use this information to build an appropriate sales message to communicate the benefits of “intelligent” industry solutions that focus on solving customer problems. Companies www.offi cetechnol ogymag.com | De c e mb e r 2017 | 29

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COURTS & CAPITOLS

Sexual Harassment Review your policies & training practices by: Robert C. Goldberg, general counsel for the Business Technology Association

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t is almost impossible to pick up a newspaper, watch television or listen to the radio today and not learn of new allegations of sexual harassment. Add in social media and it appears there is an epidemic spreading across all industries.

Dealers are not exempt. A recent NBC and Wall Street Journal poll revealed that 48 percent of women in the workplace reported being sexually harassed at work. In 2016, the Equal Employment Opportunity Commission recovered more than $40 million for individuals complaining of harassment. This amount does not include private litigation recoveries, which are much higher. I urge dealers to take this opportunity to review their policies and training practices to ensure they are compliant and prepared to effectively respond to harassment complaints.

Dealers have a duty to try to stop sexual harassment before it occurs or, if that is not possible, to take prompt remedial action upon learning of harassment allegations. Harassment is not limited to sexual conduct, but also includes religion, disability, race and age. Harassment can be caused by someone of the same sex, or even a customer. Every dealership should have an anti-harassment policy and complaint procedure in place.

Without these, the defense of any claim becomes difficult.

The policy should have a clear statement of the prohibited conduct and should make it clear that an individual making a claim of harassment will not be retaliated against. Employers can often defend the initial claim, but face damages where actions have been taken that retaliate against the claimant. Retaliation can be increased enforcement of company policies, lack of promotion or salary increases, or a position change resulting in less desirable duties. All individuals involved in an investigation (including witnesses) should be reminded of the prohibition on retaliation. At the conclusion of an investigation, the dealer should seek confirmation from the complaining individual that no retaliation occurred.

The policy statement should clearly establish the process to be followed in the event of harassment. A complaint should be filed in writing, in a timely manner. Many of the allegations currently in the news happened decades ago. If a policy requires prompt written notice, that would be a defense. More than one individual should be identified to receive complaints.

A supervisor is fine, but if the supervisor is the harasser, there must be an alternative, such as HR or the company president.

It is suggested that both a male and female be authorized to receive complaints.

The policy should establish that confidentiality will be

maintained to the extent possible. Obviously, an investigation will include witnesses, however, confidentiality must be emphasized to all. An individual requesting that no investigation take place must be informed that that is not possible. Dealers have a duty to prevent and correct harassment. The complaint process must provide a prompt, thorough and impartial investigation. If the accused is a high-ranking individual, it may be best to bring in a third party to conduct the investigation.

Sometimes it may be advisable to reassign an individual during an investigation, however, make certain that the reassignment does not constitute retaliation.

If harassment has occurred, you should take immediate and corrective action to address it. Remedial measures should stop the harassment, correct the effects of harassment and ensure that the harassment does not reoccur. Often a complaining employee will make demands for corrective action. These demands need not be implemented provided the corrective measures taken are effective in preventing a reoccurrence.

Several states require employers to conduct anti-harassment training. Even if it is not mandated by law in your state, training is advised. This training should be attended by all, demonstrating its importance. Sexual harassment is not a new problem, however, recent media coverage has focused everyone’s attention on the issue.

Take this opportunity to review your policies, procedures and training programs. n Robert C. Goldberg is general counsel for the Business Technology Association.

He can be reached at robert.goldberg@sfnr.com.

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EDUCATION CALENDAR January

17-19 BTA Sales Management Workshop Orlando, Florida The BTA Sales Management Workshop is a career development “must-have” for sales management at all levels. Taught by Kim Ward of Learning Outsource Group, the workshop focuses entirely on the “how-to” skills that will help each attendee reach his (or her) full potential as a great sales leader and coach. Visit www.bta.org/SalesManagement to register.

22

BTA Strategic Sales Semester The industry is shifting from transactional to strategic sales, and sales reps need new skills for this transition. The BTA Strategic Sales Semester, taught by Mitch Morgan and Chris Ryne of Growth Achievement Partners, consists of 13 45- to 60-minute online training sessions held every other week over six months. Each module includes skill-building exercises and field-based activities reps will be asked to complete. Visit www.bta.org/StrategicSales to register.

25

Building My Business Webinar: “The Great Industry Reboot” We have seen almost every manufacturer in our industry go through some significant shifts and transformations. This webinar, led by Randy Dazo of Keypoint Intelligence-InfoTrends, will review the results from Keypoint Intelligence research on each manufacturer’s new strategies, discussing both manufacturer interviews, as well as the channel’s views. Visit www.bta.org/BMB to register.

February 7

Building My Business Webinar: “The Five Keys to a Sales Force Turnaround” Do you need to turn your sales force’s performance around or build a top-performing sales team? In this webinar, Troy Harrison of Troy Harrison & Associates will distill what could be a complicated process down to a simple, five-step program. Visit www.bta.org/BMB to register.

7-8

BTA Managed Services Workshop Scottsdale, Arizona No matter where you are in your MSP maturity, the BTA Managed Services Workshop will benefit your business. Mitch Morgan and Chris Ryne of Growth Achievement Partners will share their experience to allow attendees to walk away with a time-tested process, tools and metrics for capitalizing on this market opportunity. Visit www.bta.org/MS to register.

Glen Allen, Virginia 27-28 ProFinance 2.0 Taught by John Hey and Todd Johnson of Strategic Business Associates, ProFinance 2.0 incorporates changes into the industry model, including benchmarks for MPS. With more than 30 key benchmarks, this management tool will help you and your team achieve double-digit operating income. Visit www.bta.org/ProFinance to register.

For more information, visit www.bta.org/Education or call (800) 843-5059.

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BTA HIGHLIGHTS BTA would like to welcome the following new members to the association:

Dealer Members Copier Expo Inc., Pomona, CA Stepp Services Inc., Raleigh, NC For full contact information of these new members, visit www.bta.org.

CompTIA Exam Voucher Discounts

For the benefit of its dealer members, each month BTA features two of its Vendor or Service Associate members in this space.

Founded in 1999 and headquartered in Long Beach, California, BTA Vendor Associate Member LD Products is one of the largest online retailers of printer supplies in the United States. At LD Products, you can count on: low prices that do not include a sacrifice in quality; lifetime guarantees; same-day shipping before 4 p.m.

PST; award-winning service; and free delivery on orders of more than $50. LD rigorously screens its manufacturers to make sure that its products maintain the highest levels of quality and durability. Its purchasing department works hard to ensure that the company carries the latest printing and office supply products. www.ldproducts.com

As a non-profit trade association, CompTIA advances the global interests of IT professionals and IT channel organizations, and enables them to be more successful with industryleading certifications and business credentials, education, resources and the ability to connect with like-minded, leading industry experts.

CompTIA offers BTA members discounts on many of its certification exam vouchers, including A+, Cloud Essentials, Network+, Security+, CSA+ and more.

A new offering, the CompTIA Cybersecurity Analyst (CSA+) is an international, vendor-neutral cybersecurity certification that applies behavioral analytics to improve the overall state of IT security. CSA+ validates critical knowledge and skills that are required to prevent, detect and combat cybersecurity threats. The behavioral analytics skills covered by CSA+ identify and combat malware and advanced persistent threats (APTs), resulting in enhanced threat visibility across a broad attack surface.

Visit www.bta.org/CompTIA for more information.

BTA Service Associate member MoriseyDart Group LLC is an executive recruiting firm that partners with its clients to become change masters. Change masters are the leaders who motivate and drive the successful direction of their companies. Morisey-Dart will be there to ensure your success with staffing solutions and employer services that help you hire people who bring the skills and competencies you need for change. With more than 20 years in staffing and executive recruitment, MoriseyDart provides excellence through experience. www.morisey-dart.com

For information on BTA member benefits, visit www.bta.org/MemberBenefits.

A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.

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Highlights Dec 17.indd 1

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MEMBER BENEFITS Included with $430 BTA dealer membership: Legal Services • Industry advice & guidance via the BTA Legal Hotline • Sample legal agreements & contracts customizable for your dealership • Contract reviews • Data security & patent troll guidance & brochures • National industry campaign against fraudulent telemarketing of copier/MFPs & computer supplies

Publications • Monthly Office Technology magazine • Weekly BTA Hotline e-newsletter

Channel Trends & Statistics

MEMBER BENEFITS

Business Support Services

• Ask the Analyst service • Monthly Building My Business webinars • Sample job descriptions • Sample compensation plans

Discount Promo Codes • $400 in discounts with a one-year membership or $950 in discounts with a two-year membership to apply toward education or BTA events

BTA Scholarships • The opportunity to apply for educational scholarships of $3,000, $1,500 & $1,000 awarded to children of dealers & the children of their full-time employees. Applications due each year by May 1.

• Channel’s Choice Report • Compensation Report • Financial Benchmarking Report • Service Productivity Report

BTA Navigator Program

Available to members at reduced fees:

Business Support Services

Channel Trends & Statistics • 2016 Business Equipment Quota Index (BEQI) • Buyers Lab industry intelligence • InfoTrends Dealer Vertical Market Opportunity Analysis (exclusively available through BTA) • InfoTrends reports

BTA Events & Educational Offerings • Registration to BTA’s district-hosted events & national conference • Classroom training programs covering all aspects of your business, including training for sales reps, sales managers and service managers, as well as a financial benchmarking workshop to help grow your business • Online workshops, including an in-depth sales workshop consisting of 13 modules for your entire sales team, a new sales rep training workshop and one-to-one telesales training and coaching • CompTIA exam voucher discounts • IT University online courses • Logical Operations’ User Productivity Courseware & Axzo Crisp Series

Available to members at competitive rates: Insurance Programs

• Business executive life • Business liability • Disability, long- and short-term • Retirement programs

• OEM co-op reimbursement program for BTA dues & educational workshop tuition. Check with your supplier!

• Background checks • Business valuation services • Collection services • Credit card processing • Credit report & business information services • Employee assessment tools • On-hold messaging service • Payroll processing • Recruitment services • Relationship management/CRM • Telemarketing/lead generation

Discounted Programs • BTA Marketplace discounts & value-added offerings • BTA member rewards program • Car rental discounts • Device monitoring & management • Gas & electricity volume purchasing agreements • Hard drive security solutions • Marketing solutions • Mobile discount programs • Product evaluations & side-by-side comparisons • Shipping & freight discounts

• Health discount card providing medical, dental, vision, hearing, lab & prescription discounts • Medical, life, health, dental & vision plans through an insurance brokerage service • Section 125 cafeteria plans • Term life • Workers’ compensation

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SELLING SOLUTIONS

Strategic Sales When adjacency moves into the core by: Mitch Morgan, Growth Achievement Partners

T

he term “adjacency” has been a consistent theme for our industry. Many industry analysts have described the importance of focusing on natural adjacencies to support a core business that is flat to declining. While this is a very important approach, we are actually seeing a growth opportunity that is related to the core business.

My company, Growth Achievement Partners (GAP), has been training sales reps on strategic sales in support of the transformation of the industry. We have been face-to-face with more than 1,000 sales reps during this transformational journey. Their experience levels have ranged from “first-dayon-the-job” reps to experienced sales professionals who have many consecutive years of seven-figure sales results. Through building their skills, many reps are now able to take advantage of core and adjacent growth opportunities.

For many sales professionals, it has been a tough balancing act. Many reps discuss software and solutions with customers and prospects as ways to differentiate, while maintaining a primary focus on selling traditional equipment. For many, the discussions would lead to an occasional solutions opportunity but, in reality, it was far from being the primary focus.

The figure at right shows the four stages of skills and solutions that represent the transition that is fully underway.

Stages 1 and 2 would be considered core, while Stages 3 and 4 are adjacencies.

Recently, we have noted three trends that have become very pronounced in the market: n Equipment sophistication — The presence of built-in and adjoining software capabilities have become very sophisticated. The pathway is being built for a high degree of automation, leading to areas such as artificial intelligence (AI). n Customer digital transformation — Companies are seeking true digital integration within core office and production activities. n Shift from workflow to automation — This trend is consistent with the digital transformation noted above. By integrating applications, restructuring labor resources and using software applications to replace human activities and intervention, companies are able to realize huge gains in productivity.

I recently had lunch with the CFO of a 700-person company who described using Stage 2 tools to significantly enhance the work for large portions of his workforce. These powerful software capabilities will have a major impact on the company achieving its business objectives through technology-based automation.

As a result of these quickly emerging trends, our industry is participating in a growth market that is no longer adjacent. A few years ago, a breakthrough report by McKinsey & Company described “automation of knowledge work” as a leading technology trend that will have a global economic impact of $5.2 trillion to $6.7 trillion annually by 2025. More recently, McKinsey described that almost every occupation has partial automation potential, as a significant percentage of their activities could be automated. This is particularly true of knowledge workers, representing the next wave of technology innovation.

For dealers who want to take full advantage of this “core” opportunity, there are several areas to focus on: n Scanning as a leading indicator — Through our work with clients, we have seen significant increases in scan volumes across their bases. Many of their customers are seeking deeper integration and digital capabilities. Too often dealers do not have visibility into this trend and are losing opportunities to differentiate, bring value and increase sales opportunities. By diligently tracking scan volume, these opportunities will become very visible. n Transformation — Making an enhanced sales process stick is a critical element to our industry. Earlier this year, we introduced our first distance-learning training offering through BTA called the BTA Strategic Sales Semester. In our inaugural offering of this training program, we were able to assist nearly 150 students in implementing a refined sales process geared to today’s requirements for success. Through the semester, they were able to take a step-by-step approach for

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We are seeing core growth opportunientire sales teams, supported by local sales ties as a sustainable trend within our inleadership. We found that this approach The heart of a strategic dustry. However, these opportunities will was a much better way to make these new sales process is the require new skills for sales professionals. skills permanent than sending a few reps ability to describe the The good news is that by transitioning to a to a training event. We have enhanced the current and future strategic sales process, dealers will be able curriculum and believe the next course bestate to a customer to maximize opportunities for both core ginning in January 2018 (see the ad on page and adjacent revenue. n 25) will have an even larger transformaor prospect in a Mitch Morgan is a partner at Growth tional business impact on participants. documented manner.

Achievement Partners. He founded the n Defined sales process — ImplemenConnectivity Dealer Program at NIA in tation of a time-tested sales process for 1991. After Morgan’s business was acquired by IKON Office strategic sales in our industry greatly increases sales producSolutions in 1996, he led its Technology Services division. tivity. As the sales environment changes, defining the process In 2001, Morgan formed the Professional Services division for and making sales steps repeatable is a critical success factor.

IKON. He has been consulting with CEOs n Studies and assessments — The heart of a strategic sales on strategy, operations, organizational process is the ability to describe the current and future state development and sales since 2005. to a customer or prospect in a documented manner. We call Morgan can be reached at this “a process within our strategic sales process” and consider mitch@growthachievementpartners.com it to be a game changer. By building a repeatable methodolor (913) 269-7255. ogy for these studies, our students are able to bring significant Visit www.growthachievementpartners.com. value to customers and differentiate against competition.

2017 ELITE DEALERS G

2017 I

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CELEBRATING ENTREPRENEURSHIP

Meet 2017 Elite Dealers In the December issue of ENX Magazine

engage ‘n ex

Congratulations to 2017 Elite Dealers! www.enxmag.com engage ‘n exchange

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SELLING SOLUTIONS

Sales Training It is like a ‘three-legged milk stool’ by: Gil Cargill, Sales Acceleration Coach

I

know the “three-legged-milk-stool” metaphor may be outdated, but as with any stool that has three legs, if one or more of the legs is shorter or missing, the stool will be unstable. In this case, the stool equals the proficiency of your sales team.

The three legs that a sales training program needs to rest on in order to be optimally effective are: (1) sales skills training; (2) sales process training; and (3) product training. In my opinion, among the manufacturers that sell their products through dealers, resellers, etc., today’s training programs emphasize product features almost exclusively.

Sales Skills Training It is rare for a manufacturer to offer sales reps who work for independent channels training programs that build their skills.

I frequently hear manufacturers say they cannot afford to offer skills training because it is “too expensive.” If skills training is too expensive, how expensive is it to field an untrained sales force?

An untrained sales force does not have the skills to present products and services in the proper light, nor does it have the appropriate approaches and tactics to overcome objections, differentiate products or services from competitors, build value, negotiate for the highest possible margin, and make sure all new customers become long-lasting customers. Today, skills are paramount to differentiate your company from the competition.

I can draw on my personal experience as a rookie at IBM. After five days in the Cleveland, Ohio, branch office doing paperwork, going through orientation, etc., I was shipped off to the first of two three-week training sessions in Dallas, Texas. The majority of the training focused on how to sell the IBM typewriter line. We gave demonstration after demonstration. We had to present our approaches to the instructors and we were graded. Some of the people in that class failed to progress at the pace IBM deemed appropriate, so they were sent home. In total, during my first eight months of employment with IBM, I spent more than six weeks in a formal classroom setting, learning how to sell, as well as learning how to sell IBM products.

Today’s manufacturers just do not invest that kind of time or money to develop the skills of their salespeople. But, to the best of my knowledge, mankind has not evolved to the point where we are spawning infants who are “natural-born salespeople.” Even if the DNA is right, skills training certainly improves their ability to produce profitable revenue predictably.

Sales Process Training Process training is the “red-headed stepchild” in most sales improvement discussions. Without process, salespeople may spend too much time selling to the wrong customer in the wrong form or fashion. Without process training, salespeople cannot operate in a predictable and profitable fashion. Without process, sales managers are forced to become cheerleaders. They will say things like “work harder” or “work smarter.” With processes in place and documented, new salespeople know what to do, how to do it, how often they should execute various tactics, and when they should apply the skills learned in skills training.

Let’s do a quick check of your company: Do you have a written document — a playbook — that shows your team how to achieve predictable and profitable performance? If it is not written down, it is not a process — it is a wish.

Product Training The third and vital component of a sales training program is product training. As mentioned, this is the leg that receives the most attention in the majority of sales improvement strategies.

I am not writing this to diminish the importance of product training, but whatever you do, do not assume that if all you do is teach your people the features and the functions of your products or services, you have completed sales training. Without process and/or skills, then you will not get optimum results.

When the three legs of the “milk stool” are in place (process, skills and product knowledge), then all you really need to do is implement sales practice. Rehearse and practice; rehearse the executions, the presentations, the scripts, etc. Through practice, you will achieve perfection. n After concluding a sales and management career at IBM, Gil Cargill launched his own consulting practice in 1978.

He has spent the past 39 years as a consultant, speaker and trainer, helping thousands of businesses achieve dramatic and permanent improvements in sales productivity. Cargill has taught salespeople across diverse industries the importance of developing sales processes, the advantages of implementing new technology and the benefits of tracking sales performance.

He can be reached at (310) 305-7198, ext. 111, or gil@gilcargill.com.

Visit www.gilcargill.com.

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SELLING SOLUTIONS

LinkedIn is Evolving But it is still useful as a sales tool by: Troy Harrison, Troy Harrison & Associates

I

n previous Office Technology magazine articles, I have talked a lot about the evolution of sales over the last 10 to 15 years. One of the causes of the evolution is, of course, social media. What is interesting to me is that social media itself is evolving quickly and many people are not keeping up with this evolution.

For years, I have been recommending that salespeople use LinkedIn to get quality introductions and warm referrals to new potential customers.

However, even that mechanism is losing its effectiveness for reasons that I will discuss below.

LinkedIn was, and still is, the premier business networking site. LinkedIn facilitates introductions by making contacts visible when two people are connected. This greatly enables the process of asking for introductions; if you were a second-degree connection on LinkedIn (e.g., I know Bob, Bob knows Jane, Bob introduces me to Jane), the intro was usually a fairly simple ask. For years, my ratio of requests to introductions was between 1-to-1 and 1.5-to-1.

That number has been going down, not only for me, but for others I work with. What has happened? Does this mean people are getting tired of being asked for intros? I doubt it; most people I talk to report that they are not asked that much. I think it means more people are becoming less discriminating in their connection requests and acceptances, meaning that those second-degree connections might not really be personal connections at all. Thus, when you see a second-degree connection and ask for an introduction, the person you are asking really does not have the ability to introduce you in any meaningful way.

I cannot cast stones here. In the past year, I have become far less selective about who I accept — and my social media coach tells me that I am doing the right thing. Given that LinkedIn has removed the “ask for introduction” button, it, too, must feel that this is becoming less and less important.

Another issue is what I call “Facebook posting.” LinkedIn used to be very business-focused in what its users posted. This, too, has changed. Political posts now take up a large amount of anyone’s daily feed, whether you are the one doing the posting or not. Other non-business posts — even Facebook-style party pictures — are becoming a larger part of LinkedIn. This makes

it more difficult for business-focused users to separate the wheat from the chaff, and it is challenging for solid business articles to get noticed.

So, if LinkedIn is evolving, we need to evolve with it.

First of all, the old “ask for an introduction”’ system can still work; it just becomes more of a numbers game than in the past. Depending on the size of one’s network, the 1-to-1 relationship between intro requests and intros is more like 3-to-1 or 4-to1 now. This means that if you need two intros per week, you probably need to send between six and eight requests. This means that your network needs to be large, otherwise you can burn out your contacts.

Second, direct prospecting on LinkedIn is showing some promise. Rather than going through your contacts and looking for introductions, simply targeting the people you want to talk to and sending them connection requests with short messages about why you want to connect with them is yielding results, although with too small a sample size to put ratios to it yet.

I am not a fan of signing up for LinkedIn Premium and then just blasting InMail. I prefer to connect. If I send someone a connection request with a short (because that is all that you are allowed) note about why I want to connect and he (or she) accepts my request, he is typically at least open to the next step in the conversation.

Only then do I send an InMail to him explaining how I think I could help him. If you want to use this technique, I would not recommend sending a “blind” connection request (i.e., one that does not include a small sales message). If you send a blind request and then hit the contact with a sales message, he can feel blindsided. I prefer people to be informed. A variation of this technique is to (when you see you are second-degree from a targeted contact) request an introduction from your connection, as you did in the past LinkedIn is also becoming far more useful for job seeking and candidate searches. I have used it as a recruiter for several years and it has always been a small (but high-quality) candidate pool as compared to CareerBuilder. In the last few searches, I have found that the quality continues to be high, but the quantity is going up significantly. If this trend continues, LinkedIn will be www.offi cetechnol ogymag.com | De c e mb e r 2017 | 37

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recommendations on their own. A polite, the best site to find professional hires within respectfully worded recommendation reanother year or so.

A polite, respectfully quest — when you know the customer is a Finally, I have found significant success worded recommendation happy one — is not inappropriate or out of in getting recommendations and testimorequest — when you line. It is one of the easiest and best ways to nials using LinkedIn’s “ask to be recomknow the customer is gather testimonials. mended” feature. Testimonials are one of a happy one — To conclude, LinkedIn is still highly the greatest marketing tools we have. They useful as a sales tool. Its usefulness is just allow prospective new customers to see is not inappropriate evolving and we must evolve with it. Two to you through the eyes of a happy current or or out of line. three focused hours per week on LinkedIn past customer — and that is a credibility can still be time well spent. n booster that cannot be beat.

Troy Harrison is the author of “Sell Like You Mean It!” Oddly, I recently read an article by another prominent sales and “The Pocket Sales Manager,” and is a speaker, “guru” who said that you should not ask for recommendations; consultant and sales navigator. if your customers like you enough, they will simply recomHe helps companies build more mend you without asking. To me, this is horrible advice and profitable and productive sales forces. comes from being out of touch with what most salespeople To schedule a free 45-minute Sales Strategy face in their work environments.

Review, call (913) 645-3603 or email Sales is a profession built on the idea that we get what we troy@troyharrison.com. ask for and do not get what we do not ask for. And, frankly, Visit www.troyharrison.com. it might not occur to even the happiest of customers to post

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www.hp.com/go/managedA3

(949) 462-6201 / www.business.toshiba.com/recruitment

26 • Building My Business Webinar Series

13 • KIP

(800) 843-5059 / www.bta.org/BuildingMyBusiness

(800) 252-6793 / www.kip.com

5 • Clover Imaging Group

40 • Konica Minolta

(800) 624-6991 / www.cloverimaging.com

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