August 2012 Office Technology by Business Technology Association

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CONTENTS Volume 19 • No. 2

FEATURE ARTICLES 10

Quality Power Protecting MFPs from inconsistent electricity flow

COURTS & CAPITOLS Paying Employees Correctly Compensable time issues often spell disaster

by Robert C. Goldberg BTA General Counsel

by Brent Hoskins Office Technology Magazine

The issue of overtime pay continues to haunt dealers as difficult economic times cause employees to look at their compensation. The rule for outside salespeople is easy; they are exempt employees who are not entitled to overtime compensation. It is the remainder of your work force that can cause problems.

Although it led to the launch of the power protection industry, lightning presents only a small part of the risk to electronic devices in the workplace. Instead, the far greater risk of damage to an electronic device results from inconsistency in the flow of electricity.

Six Website ‘Must Haves’ Making your site a sales & marketing machine by Martin Perry in2communications Inc.

P R I N C I PA L I S S U E S Samsung’s Pursuit Manufacturer focused on growing its print business

by Brent Hoskins Office Technology Magazine

For business owners, entrepreneurs, and website and marketing managers, our world has changed. Dynamic Web applications and highly technical users mean the days of simple HTML design and blogging for consumers are long gone; our users expect — and demand — a more magical online experience.

Convergence 2012 Ricoh hosts national dealer meeting June 10-13 by Brent Hoskins Office Technology Magazine

With an expanding MFP lineup and a new industry veteran leading the efforts to grow the company’s business in the product category, executives at Samsung Electronics America Inc. have their eyes on the BTA Channel. On June 21, the company hosted industry editors and analysts.

World Expo 2012 Seventeenth annual event held July 18-19

by Elizabeth Marvel Office Technology Magazine

Reflecting the beginning of a new era for the company, Ricoh Americas Corp. recently hosted its 2012 national dealer meeting in Las Vegas. Themed “The Time is Now,” the June 10-13 meeting included executive-level commitments to better support dealers and help them grow their businesses.

Irresistible Force Sharp hosts national dealer meeting July 15-18 by Brent Hoskins Office Technology Magazine

Providing most of its authorized dealers the opportunity to meet the company’s new president for the first time, Sharp Imaging and Information Company of America (SIICA) hosted its 2012 national dealer meeting, themed “Irresistible Force,” July 15-18 in Grapevine, Texas.

Hosted by 1105 Media and Recharger Magazine, World Expo 2012 was held July 18-19 at the Mandalay Bay Resort & Casino in Las Vegas. Approximately 2,300 people from 46 countries attended this year’s education and networking event. World Expo was preceded by the Managed Print Summit, held July 17.

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

• BTA Highlights

Executive Director’s Page

BTA President’s Message

Advertiser Index

4 | w w w. o f f i c e t e c h n o l o g y m ag.com | August 2012

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EXECUTIVE DIRECTOR’S PAGE

$22,500 Awarded in BTA Scholarships

or many years, BTA has awarded $1,000 and $1,500 scholarships to qualifying children of full-time employees of current duespaying retail dealership members. Since the 198485 school year, BTA has presented a total of $1,472,000 in scholarships to more than 1,300 students. An independent, impartial evaluator reviews the submitted applications and selects the winners. Students completing applications must submit information in four areas: school activities; leadership positions; work experience, recognition and awards; and community involvement. The application also requires an essay and transcript. For the 2012-13 school year, BTA awarded a total of $22,500 in scholarships to 20 students. The BTA Scholarship Foundation was established in 1968 when the announcement of its creation was made at the Dorothy R. Ames retirement dinner. The BTA East District initiated the original fund (now managed by the national BTA office) to honor Ames because of the contributions she had made to the office technology industry. This year’s scholarship recipients and their sponsoring BTA member dealerships are: Courtney Bell, Business Equipment Service, Loveland, Colo.; Emily Crane, Copy Products Inc., Springfield, Mo.; Kyle Derleth, EO Johnson Office Technologies, Wausau, Wis.; Kemais Ehlers, Yost Business Systems, Idaho Falls, Idaho; Tara Forsythe, WJS Enterprises Inc., Metairie, La.; Justine Gab, Southwest Business Machines Inc., Dickinson, N.D.; Bennett Heinz, EO Johnson Office Technologies, Wausau, Wis.; Lacey Henderson, Anderson Business Technology, Pasadena, Calif.; Alana Katz, EO Johnson Office Technologies, Wausau, Wis.; Julia Katz,

EO Johnson Office Technologies, Wausau, Wis.; Nicole Kempke, Martin Whalen Office Solutions Inc., Tinley Park, Ill.; Jessica Keys, Fireside Office Solutions, Bismarck, N.D.; Jordan Kirby, RJ Young Co., Nashville, Tenn.; Gabrielle Liguori, Electronic Business Products Inc., Latham, N.Y.; Sarah Nash, Duplicator Sales & Service, Louisville, Ky.; Morgan Prokupek, Eakes Office Plus, Columbus, Neb.; Connor Reece, Oklahoma Office Systems LLC, Oklahoma City, Okla.; William Thomas, Memphis Communications Corp., Memphis, Tenn.; Kaitlyn Varney, Millennium Business Systems, Cincinnati, Ohio; and Erika Yaremych, Applied Imaging, Grand Rapids, Mich. The BTA Scholarship Foundation is supported by contributions from individual dealers, as well as manufacturers and distributors. BTA appreciates the contributions made during the 2011-12 year by the following member companies: Advanced Systems, Waterloo, Iowa; Aregood Technologies, Ridgeland, Miss.; Atlantic Tomorrow’s Office, New York, N.Y.; Automated Business Solutions Inc., Indianapolis, Ind.; Budget Document Technology, Lewiston, Maine; California Business Machine Co., Fresno, Calif.; Coastal Business Products, Ft. Walton Beach, Fla.; Cobb Technologies, Richmond, Va.; Coordinated Business Systems, Burnsville, Minn.; Copy Link, Chula Vista, Calif.; EO Johnson Office Technologies, Wausau, Wis.; Executive Business Products, Centralia, Ill.; Innovolt, Atlanta, Ga.; Mars International, Clifton, N.J.; Nevill Imaging Solutions, Carrollton, Texas; New England Copy Specialists, Woburn, Mass.; OASYS, Burlington, Wash.; Printers & Stationers, Florence, Ala.; Purvis Business Machines, Meridian, Miss.; RJ Young Co., Nashville, Tenn.; and Skyway Technology Group, Tampa, Fla.  — 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 Robert C. Goldberg, General Counsel Business Technology Association Martin Perry, in2communications Inc. www.in2communications.com

Business Technology Association 12411 Wornall Road Kansas City, MO 64145 (816) 941-3100 www.bta.org Member Services: (800) 505-2821 BTA Legal Hotline: (800) 869-6688 Valerie Briseno Membership & Marketing Manager valerie@bta.org Mary Hopkins Database Administrator mary@bta.org Teresa Leerar Bookkeeper teresa@bta.org Brian Smith Membership Sales Representative brian@bta.org Photo Credits: Hemera, iStockphoto. Cover created by Bruce Quade, Brand X Studio. ©2012 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 2012-2013 Board of Directors

Have You Registered for a District Event?

f you have attended one or more of BTA’s district networking and education events in recent years, then you already know about the unique value they present. We seek out presenters with the most relevant knowledge and expertise for today’s changing marketplace. There are many networking opportunities to connect with your fellow dealers and exhibiting vendors. The venues are always inviting and relaxing. And, the schedules include fun activities, such as a baseball game at Yankee Stadium. In this issue of Office Technology, you will find three ads for our 2012 fall district events: Grand Slam, to be hosted by BTA East on Oct. 2-3 at the Doral Arrowwood in Rye Brook, N.Y. (see pages 2-3); the Fall Colors Retreat, to be hosted by BTA Southeast on Oct. 26-27 at the Waynesville Inn Golf Resort & Spa in Waynesville, N.C. (see page 9); and Capture the Magic, to be hosted by BTA West on Nov. 15-16 at the Mandarin Oriental in Las Vegas, Nev. (see pages 16-17). All of these events are open to member and non-member dealers nationwide, not just those living in these BTA districts. This will be the fifth consecutive year for Grand Slam, previously held in White Plains, N.Y. Following our tradition of having industry leaders as keynote speakers, this event will open on Oct. 2 with a presentation by Norihiko Ina, president and CEO of KYOCERA Document Solutions America Inc., followed by a welcoming reception. On Oct. 3, there will be five additional education sessions on such topics as best practices and benchmarking for today’s dealers, the A4 opportunity and the pursuit of the mobility opportunity. The event concludes with an evening in the largest private suite

in Yankee Stadium to see the Boston Red Sox take on the New York Yankees. Later in the month, dealers will gather at a North Carolina lodge, surrounded by the Great Smoky Mountains on one side and the Blue Ridge Parkway and Balsam Mountains on the other. The event begins on Oct. 26 with a round-table discussion, where dealers can share and discuss marketing opportunities and strategies with one another, followed by a welcoming reception. On Oct. 27, the event continues with three education sessions focused on coaching sales reps, the managed services opportunity and the dealership’s use of social media. Attendees will have the afternoon to visit the shops in downtown Waynesville, enjoy a scenic drive in the mountains or play a round of golf. That evening, the group will reconvene for a closing dinner. Our fall schedule concludes in Las Vegas at one of the most luxurious hotels on the Las Vegas Strip. Ron Books, president and CEO of ECi Software Solutions, will serve as the keynote speaker on Nov. 15, with a welcoming cocktail reception following his presentation. On Nov. 16, there will be five additional education sessions. Among the topics: sales compensation, the transformation to mobility and landing C-level meetings. The event concludes with a fun evening at the nearby MGM Grand Hotel & Casino to see the Cirque Du Soleil show, KÀ. All three events will feature tabletop exhibits, with a number of vendors showcasing their products and services. In fact, more than 40 vendors will be exhibiting at one or more of these events. At each event, the schedule allows time for attendees to visit with the exhibitors during extended breaks. Have you registered for a district event? If not, I encourage you to do so. For details, visit www.bta.org/DistrictEvents.  — Terry Chapman

President Terry Chapman Business Electronics Corp. 219 Oxmoor Circle, P.O. Box 531066 Birmingham, AL 35253 tchapman@businesselectronics.com President-Elect Todd J. Fitzsimons Network Imaging LLC 122 Spring St., Ste. B3 Southington, CT 06489 tjfitzsimons@ni-ct.com Vice President Ron Hulett U.S. Business Systems Inc. 3221 Southview Drive Elkhart, IN 46514 ron.hulett@usbus.com BTA East Rob Richardson Allied Document Solutions & Services Inc. 200 Church St. Swedesboro, NJ 08085 robr@ads-s.com BTA Mid-America Dave Quint Advanced Systems Inc. 2945 Airport Blvd., P.O. Box 57 Waterloo, IA 50704 dquint@asiowa.com BTA Southeast Debra Dennis CopyPro Inc. 3103 Landmark St. Greenville, NC 27834 ddennis@copypro.net BTA West Mike Ehlers Yost Business Systems 685 E. Anderson Idaho Falls, ID 83401 mike@yostonline.com Ex-Officio/Immediate Past President Tom Ouellette Budget Document Technology 251 Goddard Road, P.O. Box 2322 Lewiston, ME 04240 touellette@bdtme.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkel Newman & Rosenberg LLC 222 S. Riverside Plaza, Ste. 2100 Chicago, IL 60606 robert.goldberg@sfnr.com

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Quality Power Protecting MFPs from inconsistent electricity flow by: Brent Hoskins, Office Technology Magazine

ome people simply view lightning as frightening. Others watch nature’s most rapid and intense show with amazement and awe. All, however, maintain a healthy respect for avoiding any encounters, knowing that a direct strike by millions of volts of electricity can only be catastrophic. Within the office technology industry, the awareness of the hazards of lightning is acknowledged through the use of power protection devices connected to MFPs. “At its inception, the power protection industry was built on surge protection and the knowledge that lightning is always damaging by nature,” says Walter Crowder, executive vice president of Innovolt Inc. (www.innovolt. com). “That is the reason the industry began.” Although it led to the launch of the power protection industry, despite its spectacle and the great amount of attention it receives, lightning presents only a small part of the risk to electronic devices in the workplace. In terms of the percentage of workplace electronic device problems caused by lightning, says Crowder, “it is half of 1 percent.” Instead, the far greater risk of damage to an electronic device (and, today, the primary focus of power protection companies) results from inconsistency in the flow of electricity in the form of surges or spikes, sags, brownouts or blackouts, and “noise,” high-frequency electrical distortion. “The websites of power companies themselves show data suggesting that the two most prominent issues are surges and electrical noise,” says David D’Agostino, vice president of sales for Electronic Systems Protection Inc. (ESP, www. espei.com). “Surges happen all of the time inside a building. For example, on a hot day, with the air conditioner turning on and off all day, each time it turns off, the energy that it was once using dissipates back out through the line and, as it does, creates surges.” Meanwhile, the electrical noise generated in a building comes from the use of such things as fluorescent lights

(“you can see that small flickering”), microwave ovens and vacuum cleaners, D’Agostino says. “It affects the smooth flow of electricity and causes a high level of disruption,” he says. “That disruption, when allowed to hit a device like an MFP, can cause a lot of issues.” Crowder points to the voltage sag, which often precedes a surge, as a primary menace in the flow of electricity. “We have seen reports of monitored tests where 65 to 70 amps of power have come through a 15-amp system after a sag,” he says. Recently, he adds, Innovolt monitored an MFP placed by a Florida dealership that had replaced another MFP that had experienced unexplained malfunctions and was unprotected by a power protection device. “We recorded more than 4,000 sags at the outlet in less than a month,” he says. “Since we connected our device between the outlet and the replacement MFP, they have not had any problems. Innovolt’s patented technology not only provides diagnostic data but, more importantly, mitigates the sags so equipment is not damaged.” What are the possible risks to MFPs from the various inconsistencies in the flow of electricity? Roger Faridi, vice president of operations for Smart Power Systems Inc. (www. smartpowersystems.com), cites such issues as error codes and system lockups. Unfortunately, he adds, when power protection devices are not in place, a service technician’s time is often wasted. “Dealers understand ‘no-problemfound’ service calls,” he explains. “They send a technician to a site who can’t find a problem. He [or she] reboots the system, but the problem comes back. He changes the motherboard, but after two days, he receives a call from the customer saying the problem has come back again. Our products can eliminate these ‘phantom’ problems that actually result from the power flow.” D’Agostino offers a similar observation. “A lot of powerrelated issues show themselves in ways that the average technician would not ever suspect, with a power issue as the

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root cause,” he says. “For exto market a sustainability ample, on a color copier, red solution to their customers. “... It may not be that first may look a little orange, or “This solution gives the end surge that takes down an error codes may appear. We user the ability to command electrical device ... With have been told that many [control power consumption every surge, you have heat. technicians just ‘throw by switching power off reAnd with heat, you have parts’ at such problems. motely] different electronic Naturally, that is not a good devices — not just MFPs, but expansion and contraction thing; it can be very costly. also things like vending maof components. Over time, The dealer who is closely chines and water coolers,” they will wear down and can break.” watching every dollar spent D’Agostino says, citing in — David D’Agostino does not want to have to disparticular the many devices Electronic Systems Protection patch a technician. But, if he that may be plugged in at does, he definitely does not one work cubicle, such as a want to waste money on parts when, really, power was the fan, phone charger, printer, etc. “The eCommandCenter proculprit all along.” vides the ability to produce a read-out of how much energy is The timing of power-related issues for unprotected MFPs being used in that cubicle — both during the thick of the day is unpredictable; they can happen at any time, D’Agostino when things are busy, but more importantly, overnight and says. “When you have those small surges, it may not be that during the weekend, when those devices are not in use, but first surge that takes down an electrical device; it may hap- are still drawing some energy.” pen a hundred times before the surge occurs that actually D’Agostino says the data collected on energy use can ulcauses the breakdown,” he says. “With every surge, you have timately guide the end user to control that usage, ensuring heat. And with heat, you have expansion and contraction of that the power is off to MFPs, printers, etc., when not in use, components. Over time, they will wear down and can break.” to save money and energy. “We believe there is a lot of money Crowder shares the same observation. “You never know being wasted by keeping electronic products turned on durwhich jolt is going to blow out the board or which one is going nights and weekends,” he says. “Research shows that if ing to cause error codes or lock up the machine, resulting in those products are turned off during those times, there is the need for a service call,” he says. “It’s like fighting Mike enough of a savings to more than pay for the product.” Tyson. He might not take you out with the first punch, but if While many dealers may be ready to expand their power he keeps pounding on you long enough, you are going to fall protection device offerings to products like the eCommanddown. That is exactly what happens.” Center, others have yet to embrace the use of even the most The power protection companies’ growing lineup of prod- basic devices. “I believe there are still many dealers out there ucts are designed to help ensure that the “knockout punch” who are not using them,” Faridi says. “Instead, the dealernever occurs. At Smart Power Systems, for example, it be- ship is just trying to market its own specific, core product gins with the use of the company’s Power Quality Analyzer, to the customer. Or, in other cases, dealers are only using a device used to record and aid in the assessment of a wide power protection whenever they see a problem. When they range of power issues. “We made the Analyzer especially see an interruption to the MFP they placed, then they use for office products,” says Bahram Mechanic, president and power protection.” CEO. “It analyzes the power the customer has so that the Despite the hesitation among some dealers, Mechanic says dealer can understand exactly what products are needed. the majority of Smart Power Systems’ current dealer customOur company has the full solution. We have surge suppres- ers are including power protection with every MFP installasors, power filters, voltage regulators, etc.; we also have UPS tion, usually bundling it into the lease. “This is the way they [uninterruptible power supplies], providing battery backup. benefit from it — including devices with every MFP,” he says. So, we don’t just sell one product for everything; we analyze “That way, they see the benefits in their service departments the power problem and determine the right solution.” with a reduction in the number of service calls.” While a broad range of the standard power protection deCrowder acknowledges the benefit to dealers as well. “Obvices are readily available to dealers so they can provide their viously, the use of power protection reduces service calls and customers the right solutions for their needs, the market is parts consumption,” he says. “So, there is an overall savings continuing to evolve. ESP, for example, recently announced for the service department. And that’s good, since service is its latest addition, the eCommandCenter — an energy man- just about the only place the dealership can impact costs to agement and power protection platform that allows dealers increase gross margins.” 12 | w w w. o f f i c e t e c h n o l ogymag.com | August 2012

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in place] and calling you over Although dealers’ customand over because a machine ers are accustomed to buying “Because most of them have is not functioning properly,” power protection for their maintenance contracts, he says. “If, on the other hand, home electronics, it is not customers have the idea that you had power protection on top-of-mind for their workwhatever happens to their that machine, not only would place products, Mechanic MFPs ... the dealer is going the account be more profitsays. “We believe the cusable to you, but you would tomer is not very concerned to take care of the problem. have had a happier customabout power protection, so So, again, power protection er. What happens when you it is the dealer’s responsibilis the dealer’s responsibility.” don’t have a happy customer? ity,” he says. “Because most of — Bahram Mechanic That customer is more apt, at them have maintenance conSmart Power Systems the end of the lease, to bring tracts, customers have the in three or four different idea that whatever happens to their MFPs, they are going to call the dealer and the dealer competitors. When that happens, your maris going to take care of the problem. So, again, power protec- gins are gone, even if you are lucky enough to keep the business.” n tion is the dealer’s responsibility.” Brent Hoskins, executive director of the While customers may not be asking for power protection, Business Technology Association, is editor its absence can lead to unhappy customers, D’Agostino says. of Office Technology magazine. He can be “Think about the customer who is experiencing power-relatreached at brent@bta.org. ed nuisance problems [where no power protection product is

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Six Website ‘Must Haves’ Making your site a sales & marketing machine by: Martin Perry, in2communications Inc.

e have all heard, rather endlessly, about Web 2.0, but very few of us — even those of us in the business — are able to explain in simple terms what that means. Even fewer of us comprehend what the implications of Web 2.0 are going to be going forward. For business owners, entrepreneurs, and website and marketing managers, our world has changed. Dynamic Web applications and highly technical users mean the days of simple HTML design and blogging for consumers are long gone; our users expect — and demand — a more magical online experience, full of subtle nuances and technological flavors instead of direct, in-your-face marketing. Taking a practical look at SMB websites in the days of Web 2.0 will give you a step-by-step action plan to aid in preparing yourself for the ever-evolving, fickle customer and the Web 2.0 ripple effect. The challenges of Web 2.0 are more demanding than simply providing an interesting Web experience to build the much-needed vendor/buyer relationship. It also means more effectively addressing your target audience (who have a higher bounce rate than ever thanks to shorter attention spans — down to two to three seconds at the moment), all the while improving workflow, lowering costs, increasing efficiency, and lowering service and support calls. Simply put, to make an impact with your Web efforts in today’s Internet climate, you need to make a great first impression and you only have seconds to do it. Remember, your website is your 24/7 sales and marketing tool. It is your digital, indexable business card and it needs to address a specific target audience (law firm CIOs, pig farmers in Massachusetts, etc.). On top of first impressions, many visitors evaluating your website are doing it for competitive comparison, and if you are lucky enough to make their

shortlists and they engage you, then the battle has only just begun. From there, you need high functionality and at-your-fingertips information. To address all of these growing needs, we need to look carefully at the new vendor/buyer relationship that has emerged — specifically at who a Buyer 2.0 is and what websites must have to survive in today’s educated climate. But first, we need to take a look at the current challenges facing Internet marketers when it comes to revving up for Web 2.0. Industry Challenges  The Web revolution has brought with it new challenges for SMB owners. Trying to address a new type of world and customer, while dealing with untrained staff members thanks to high rep turnover, declining margins, limited marketing resources thanks to an inability to measure ROI, high-quantity, low-quality leads and low-quantity, high-quality leads, commoditization, MPS awareness and customer adoption, plus a handful of other challenges, make our jobs that much more difficult. What this means is that we need to be better — at every aspect of our jobs.    Buyers 2.0  Just as the Web has upgraded, so have its users. Internet users — and buyers — are no longer the naive surfers they once were; they now require a more subtle and advanced courtship. Buyers 2.0 are: n More knowledgeable than ever before about marketing and sales techniques, online buying behavior, Web technologies and even conversion cycles. n Highly demanding. They want apps, mobile sites, HTML5, social media marketing, security and cloud services

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— just to name a few. on your customers’ needs, identify and Your website needs to n Constrained for time. They need to cater to your target audience, identify be able to find things easily and immebehavior in the early stages of the buychange along with your diately. Compounding their time coning process, use carefully targeted keycustomers, lest you be straints are their now shortened attenwords in your content, and develop a left behind ... To get tion spans. messaging strategy. ahead of the pack, n Well-researched and well-informed. (4) Attention-Getting Call-To-Acyou need cutting-edge Buyers 2.0 do extensive research before tion (CTA) Buttons — While you have engaging with a vendor/website by readbrowsers mesmerized with your excittechnology ... ing online reviews, blogs, doing their own ing content, you need to strike while the competitive analysis and monitoring soiron is hot with attention-grabbing calls cial media marketing campaigns. According to Gartner, “70 to action. 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Convergence 2012 Ricoh hosts national dealer meeting June 10-13 by: Brent Hoskins, Office Technology Magazine

eflecting the beginning of a new era for the company, Ricoh Americas Corp. recently hosted its 2012 national dealer meeting in Las Vegas. Themed “The Time is Now,” the June 10-13 meeting included executive-level commitments to better support dealers and help them grow their businesses in today’s changing marketplace. Jim Coriddi, vice president of the Dealer Division, welcomed attendees during the opening General Session. “We stand at a special time in our history with all of our dealers,” he said. “A time of change, and new challenges in the business environment. A time of unprecedented change in technology and how people manage information.” Noting that today’s changes represent an opportunity for Ricoh and its dealers to establish an “unbeatable competitive advantage,” Coriddi said the company is committed to taking “our relationship to a new level.” He acknowledged that Ricoh has to earn the trust of its dealers through action, not words. “We want to be the number-one manufacturer provider in the industry with the number-one dealer organization in the industry,” he said. “We realize we have work to do.” Coriddi emphasized that company executives are committed to listening to dealer feedback, citing recent opportunities and efforts to meet with dealers. The results, he said, are a variety of changes, including the re-design of Ricoh’s programs and pricing structure to be more simple and flexible for dealers, particularly in the SMB area. Despite inventory challenges caused by the tsunami in Japan and floods in Thailand, the company’s dealer equipment revenue still showed growth year-over-year, including B2C unit sales up 8 percent and production units up 35 percent, Coriddi said, noting that the company remains focused on increasing sales through its dealers. “We’ve talked about how we wanted to increase the dealer volume from 30 percent of our unit sales to 40 percent,” he said. “In FY2011, that figure grew from 30 to 32 percent. We need that number to keep growing.” Like Coriddi, in his comments during the opening General Session, Martin Brodigan, chairman and CEO, expressed support for the dealer channel and highlighted changes that

Top: Attendees enjoy the Ricoh meeting’s Technology Expo. Above, left to right: Jim Coriddi, vice president of the Dealer Division; Martin Brodigan, chairman and CEO; and Steven Burger, vice president of product marketing. are taking place within Ricoh to better serve dealers. He began by noting that, for the first time, the most senior Ricoh leaders in the Americas are local. He repeated a comment shared with him by Shiro Kondo, Ricoh Company Ltd.’s, president and CEO: “He said it was time to put the U.S. and Americas business under the control of local management, so that we could be more agile, quicker to respond to market needs, to take quick action to improve performance and be more competitive, taking advantage of the opportunities we have.” The initial goals for Ricoh’s now more agile U.S. operations can be easily summarized, Brodigan said. “First, return the U.S. business to profitability,” he said. “Second, speed up our transformation to a services-led company. Third, retain the

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Copier Problems? number-one MFP “ ... I want to make market share in the United States. And, the assets of the last but not least, company available grow the business.” to you so you can Brodigan also improve the value expressed his peryou provide to all of sonal commitment to the dealer chanyour customers.” nel. “The first commitment I will make to you is to be open and honest,” he said. “I won’t tell you we’ll do something if we can’t do it. The second commitment is that I want to make the assets of the company available to you so you can improve the value you provide to all of your customers. If we can make the customer more profitable, then we can get more value for what we do. And the third commitment is that Ricoh will be easier for dealers to do business with.” During the opening General Session, Ricoh also announced one of the strides intended to help the company and its dealers better serve today’s customers — the launch of a new technology platform designed to seamlessly interface with the Web, cloud services and a wide range of applications that help solve customer business problems. “Up until this year, most MFP manufacturers — along with Ricoh — were using Java technology designed for tablets and smartphones,” said Steven Burger, vice president of product marketing, in announcing the platform. “Good enough, as far as it went, but technology is changing so fast that even our best products weren’t able to do the things we knew they could do. And so it was time for a big leap forward in technology — a big leap.” Ricoh’s new platform uses the latest Java SE technology designed for workstations, “super-powerful software designed for the cloud and the new BYOD mobile workforce,” Burger announced. “That’s all built inside every new MFP Ricoh is manufacturing today. The shift is all about the ways in which we use data, the cloud and the ways in which our devices and needs have changed.” At the meeting, Ricoh launched two new additions to its A4 product lineup, the color MP C305 and monochrome MP 301, both based on the new technology platform. “These products introduce an all-new 4.3-inch display that supports the Ricoh software products that our bigger A3 products support,” Burger said. “They will take your sales teams to new levels of success as we start to take over the MFP and printer fleets of our customers.” n Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine. He can be reached at brent@bta.org.

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Ricoh Aug 12.indd 2

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Irresistible Force Sharp hosts national dealer meeting July 15-18 by: Brent Hoskins, Office Technology Magazine

roviding most of its authorized dealers the opportunity to meet the company’s new president for the first time, Sharp Imaging and Information Company of America (SIICA) hosted its 2012 national dealer meeting July 15-18 in Grapevine, Texas. Themed “Irresistible Force,” the meeting also presented the opportunity for the company to introduce a new alliance focused on helping dealers enter new accounts, announce its new Sharp B2B Cloud Portal and unveil new high-volume color models. Doug Albregts, named president of SIICA in November 2011, welcomed dealers to the meeting in the opening General Session. “It is an honor to be here in front of you today,” he said. “On behalf of the entire Sharp family, we are excited to have the opportunity over the next several days to take you through what we believe are the core components in building the foundation for a truly differentiated partnership.” Albregts explained the meeting’s “Irresistible Force” theme, noting that it is a reflection of his vision for a “differentiated partnership” between Sharp and its dealers. “Shortly after being hired, we began developing our strategy,” he explained. “Subsequently, it became clear to me that you win in this industry by building a loyal dealer base. It’s that simple. But the question is, what’s the best way to do that? Well, you become an irresistible partner. And in order to do that, you have to become an irresistible force.” Acknowledging that saying the company is an irresistible force is the “easy part,” Albregts said the delivery comes in the form of trust, mutual reward, communication and staying committed. “That’s a good start for any relationship, but an exceptional one for manufacturers and dealers to embrace.” Albregts joined Sharp from American Express. Describing himself as a “non-copier guy” prior to his arrival at Sharp, he said he has had the benefit of viewing the industry as an outsider. “I think manufacturers are struggling to find that recipe and balance,” he said, referencing the traits he had cited as necessary to become an irresistible force. “I believe our competitors are talking a great game, but failing to execute on any meaningful changes. That creates an opportunity for Sharp. It’s my job to put this organization in a

Above: Attendees learn more about Sharp’s newest products and services in the Product Showcase. Sharp announced two new highspeed, high-volume color document systems at the meeting. Right: Doug Albregts, the new president of Sharp Imaging and Information Company of America, addresses dealers for the first time. position to exploit that opportunity.” In his presentation, Albregts announced some of the first “meaningful changes” necessary to forge a stronger relationship with dealers. “Our goal is to improve your cash flow by stopping the practice of pushing inventory buy-ins at the end of the quarter, simplifying marketing programs and adding greater flexibility, measuring sell-through as a component of success versus sell-in, and significantly improving delivery times,” he said. “These are program and pricing elements that allow us to better serve your needs and drive greater predictability into our business model. We also want to improve our operational efficiencies by getting product to you much faster and more efficiently with customization options. This should minimize the inventory you need to carry.”

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comprehensive purchase, management While Sharp works to help dealers re“With tight integration and access portal for a suite of cloudduce their product inventory, it is also fobased Sharp and partner program cused on helping them find new sales opwith Sharp’s B2B member software. “With tight integraportunities. During the General Session, e-commerce site, tion with Sharp’s B2B e-commerce site, Mike Marusic, senior vice president of Sharp-authorized Sharp-authorized dealers benefit from marketing, announced Sharp’s new redealers benefit from virtually instantaneous license delivery, lationship with SHI International Corp., virtually instantaneous allowing them to provision accounts esa $4 billion-plus provider of technology sentially on demand,” said Vince Jannelproducts and services with 1,000-plus license delivery ... “ li, director of product management apsalespeople. The relationship, he said, plications and partners. “Key to all this will provide dealers a partner that will handle the challenges inherent to many large accounts — is the License Management Console, which allows Sharpfinding the gatekeepers, building credibility, setting up buy- authorized dealers and business administrators to manage all licenses in a single, easy-to-use interface.” ing agreements and finding a fit within corporate budgets. Finally, Sharp also introduced two high-volume, high“This relationship will work just like Sharp had made the sale and leveraged the dealer community for service and speed color document systems in the General Session — the support,” Marusic explained. “Dealer relationships will con- Polaris Office MX-6240N and MX-7040N with speeds of 62 tinue to be with Sharp and supporting the MIF. The only dif- and 70 pages per minute, respectively.  Brent Hoskins, executive director of the Business Technology ference is SHI will be billing the customer, not Sharp.” Association, is editor of Office Technology magazine. During the General Session, Sharp also announced He can be reached at brent@bta.org. the new Sharp B2B Cloud Portal, providing a unified,

www.officetechnologymag. c o m | A u g u s t 2 0 1 2 | 25

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

Dealer Members Ariel Supply, Huntington Beach, CA Boston Document Systems, Boston, MA Business Solutions of Cullman, Cullman, AL Copiers Plus, Monticello, IN Digital Office Solutions, Newark, DE Frontier Imaging, Compton, CA Leppert Business Systems, Burlington, Ontario, Canada MDM Business Technologies Group, New York, NY Precision Copy Products, Clairton, PA Thriveon, New Ulm, MN Western Business Products, Redding, CA For full contact information of these new members, visit www.bta.org.

2012 BTA Service Report

For the benefit of its dealer members, each month BTA features two of its Vendor or Service Associate members in this space. BTA Vendor Associate member Parts Now is an industry leader in profitable solutions for businesses that service hardcopy imaging devices. Since Parts Now’s inception, its product lines have expanded to offer much more than parts. Everything you need to manage laser printers and copier/MFPs, you can find at Parts Now. By offering both OEM and remanufactured options, the company’s customers have the freedom to control their costs and increase their revenues. Parts Now has the largest inventory of printer parts in North America and is an authorized distributor for four major OEM brands. www.partsnow.com

The 2012 Service Report is useful for comparing your service operations to those of your peers. This year’s report provides data broken down into performance categories: profitability (service revenue per service employee and per technician, service sales per unit in base, service gross profit, etc.), personnel (technician accountable time, average billing rate, incentive plans, distribution of time, clicks per technician, etc.), call center efficiencies (response times, gross calls per day, recalls and incompletes, installation times, etc.) and product (copier/ MFPs on contract and T&M, percent of sales, etc.). Visit www.bta.org/Benchmarking Reports for more information.

BTA Service Associate member CIT Vendor Finance develops business solutions for small businesses and middle-market companies for the acquisition of equipment and value-added services. It creates tailored equipment financing and leasing programs for manufacturers, distributors and product resellers that are designed to help them increase sales. Through these programs, CIT Vendor Finance provides equipment financing and value-added services, from invoicing to asset disposition, tailored to their customers’ needs. www.cit.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 Aug 12.indd 1

8/3/12 9:32 AM

COURTS & CAPITOLS

Paying Employees Correctly Compensable time issues often spell disaster by: Robert C. Goldberg, General Counsel for the Business Technology Association

he issue of overtime pay continues to haunt dealers as difficult economic times cause employees to look more closely at their compensation. The rule for outside salespeople is easy; they are exempt employees who are not entitled to overtime compensation. It is the remainder of your work force that can cause problems. The Fair Labor Standards Act (FLSA) distinguishes between exempt and nonexempt employees, as well as employer obligations to properly compensate such employees for hours worked. Under the FLSA, nonexempt employees must be paid for all hours worked in a week and must receive overtime pay for all hours worked in excess of 40 hours in a one-week period (and, in California, an eight-hour day). Employers have grappled with meeting these requirements and otherwise complying with various wage payment laws. To avoid landing in hot water, employers should tread carefully when determining payment for nonexempt employees. If a technician is waiting for his (or her) next call and has nothing to do in the meantime, do you pay him? “Waiting time,” during which the employee is not productive due to lack of work or assignments, but is still required to remain in the workplace while waiting for work or assignments, is considered compensable time. Of course, an employee who is given the option to go home and return after a certain number of hours, but chooses to wait at the workplace instead, is not entitled to compensation for such waiting time. Are mandatory company meetings and seminars compensable? If time in the workplace is spent attending a mandatory lecture, training program or other meeting (including a mandatory social event), such time must be counted as “compensable time.” This is particularly true if the mandatory meeting involves material directly related to the employee’s job and is performed for the benefit of the employer. However, if the meeting was voluntary (e.g., a team-building exercise occurring outside of work hours), rather than mandatory, hours spent attending such a meeting would not be compensable. Employees must also be compensated for “off-the-clock” time, which includes time spent working before or after the employee’s scheduled shift or during a scheduled work break (e.g., lunch), even if the work is performed from home, and even if the work simply consists of responding to work-related emails from home. When do technicians who are dispatched from home go “on the clock”? Although employees are not entitled to

compensation for ordinary travel between home and the workplace, they are entitled to compensation for “work travel.” Employees must be compensated for travel time spent in excess of ordinary travel to the office when dispatched from home. Every dealer should pay special attention to the compensable time issues I have described. Dealers should continually ensure their exempt and nonexempt employee classifications are accurate and up-to-date. Employers also should develop and implement compensable time policies and work rules that require employees to report all hours worked. Such policies and work rules should also include disciplinary provisions for employees who fail to report hours worked, or who fail to obtain appropriate permission from their supervisors prior to performing work outside of their scheduled shifts. Compensable time issues often spell disaster for even the most well-meaning dealer. Accordingly, employers must stay informed and remain focused on ensuring compliance with the relevant wage payment laws. n Robert C. Goldberg is general counsel for the Business Technology Association. He can be reached at robert.goldberg@sfnr.com. www.officetechnologymag. c o m | A u g u s t 2 0 1 2 | 27

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PRINCIPAL ISSUES

Samsung’s Pursuit Manufacturer focused on growing its print business by: Brent Hoskins, Office Technology Magazine

ith an expanding MFP product lineup and a new copier/ MFP-industry veteran leading the efforts to grow the company’s business in the product category, executives at Samsung Electronics America Inc. have their eyes on the BTA Channel. On June 21, Samsung hosted industry editors and analysts at its North American headquarters in Ridgefield Park, N.J., to share plans for growth and preview its newest MFPs. Tod Pike The briefing came just over two months after the announcement that Tod Pike had joined the company as senior vice president, responsible for the overall leadership, vision and implementation of Samsung’s Enterprise Business Division. Pike had previously served in leadership positions at Canon U.S.A. Inc. and Canon Canada Inc. over the course of 19 years, following 16 years at Xerox Corp. “I think my coming here speaks to the importance of print to this company,” Pike said as he addressed the editors and analysts. “There are growth opportunities all over the place for Samsung in business-to-business [B2B], but perhaps none so great as the growth opportunity that we see in print.” Pike noted that for Samsung to attain its growth targets in the coming years, it will need to increase its B2B sales. That effort, he said, is the focus of the Enterprise Business Division, which covers four product categories: display monitors; digital signage; mobile computing, including notebooks and tablets; and print. “You are familiar with our heritage as the number-two manufacturer of printers in the world,” Pike said. “We have had a good presence from the Samsung brand in the U.S. in single-function print and A4. We are now rapidly moving up-market.” That move up-market is reflected in the July 18 launch of Samsung’s new line of A3 MFPs — the color CLX-9201NA, CLX-9251NA and CLX-9301NA, along with the monochrome SCX-8123NA and SCX-8128NA. The products range in MSRP from $3,900 to $8,270, with page-per-minute speeds ranging from 23 to 30. “With the introduction of these new A3 MFPs to Samsung’s printer lineup, we are reaffirming our focus on corporate customers,” Pike said. “We consider a smart mix of A3 and A4 offerings a requirement. With our increased investment in A3, we are confident we can become one of the top global producers by 2015.”

Pike said the Samsung brand name will be helpful to the company and its dealers in pursuit of the B2B opportunity. “As we look to expand the brand into new areas, the brand means a lot of things,” he said. “It means high quality. It means an investment in research and development. It is big and powerful; we are the number-two patent holder in the United States. Plus, we are spending more than $8 billion a year in R&D. I like the fact that we have great brand recognition with our TVs and smartphones. It kind of warms the entry for the dealer community.” Samsung’s dealer community is small, but growing. Currently, Pike said, there are about 60 to 70 active authorized dealerships. The company is now recruiting new dealers with a target of full U.S. coverage. “My approach — and the company’s approach — is being laser-focused on finding the right dealers in the right markets, as opposed to a hit-and-miss strategy that results in having six or seven authorized Samsung dealers in a particular geography,” Pike explained. “We want to work very closely with dealers to make sure that we are not going to be selling around them.” Actually, the company has a salesforce focused on helping channel partners sell to Fortune 500 accounts, federal and state government agencies, and other large accounts. In many cases, existing accounts, currently using other Samsung products, provide opportunities for BTA Channel dealers as well, Pike said. “One of the great tools that we have available to us are these relationships,” he said. “It has been very helpful to us recently as we authorize new dealers. When we are able to bring dealers into potential opportunities, it has been a nice way to encourage them to come on board.” Samsung is enhancing its field support structure to better serve its dealers, Pike said. “We are working to build that up,” he said, noting a strategy that is now in place as compared to Samsung’s previous dealer support structure. “We are partnering local dealer sales managers with support specialists, who are more solutions engineers, to support the dealer community.” Those efforts to boost dealer support go hand-in-hand with Samsung’s focus on expanding distribution, Pike emphasized. “There is a list of recently authorized Samsung dealers around the country,” he said. “We hope that the list grows very rapidly in the months to come.” n Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine. He can be reached at brent@bta.org.

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PRINCIPAL ISSUES

World Expo 2012 Seventeenth annual event held July 18-19 by: Elizabeth Marvel, Office Technology Magazine

osted by 1105 Media and Recharger Magazine, World Expo 2012 was held July 18-19 at the Mandalay Bay Resort & Casino in Las Vegas. Approximately 2,300 people from 46 countries attended this year’s education and networking event. World Expo 2012 was preceded by The Imaging Channel’s Managed Print Summit, held July 17, which not only focused on the managed print services (MPS) opportunity for dealers just getting into the MPS market, but also moving beyond simple MPS for those who had already incorporated MPS into their businesses. The Managed Print Summit began with a keynote address by Tod Pike, senior vice president of Samsung’s Enterprise Business Division. His keynote focused on new opportunities in the office technology industry, thanks to disruption from three forces: the advent of managed print, hardware optimization and mobile devices. “As I look through the looking glass at the future of business imaging, I see opportunity,” Pike said. “I see a lot of opportunity in this business. But the way that I have seen opportunity present itself in the past and, in fact, the way that changes market share and gives people an opportunity to grow, is through disruption. Without disruption, market share kind of stays the same over long periods of time. And I’m going to challenge you today to look for disruptive forces in your marketplace.” After the keynote, attendees listened to several presentations that looked at a range of topics pertaining to MPS: “Security in the Enterprise Network: From Mobile Device to Managed Print,” by Dave Kleidermacher, Green Hills Software; “Expand Your Market Without Abandoning Your Roots,” by Mitch Morgan, Growth Achievement Partners; and “Big Data, Little Data: Where Are We Going?,” by Shawn Ahmed, SAP North America. There were also two panel discussions, “Making Money Without Print” and “The Supplies Side of MPS.” During the afternoon, attendees chose additional education sessions from two tracks, “Breaking Ground: Venturing into Managed Print,” and “Breaking Barriers: Moving Beyond Managed Print,” and were able to network with other attendees during breaks between sessions. Some of the nearly 300 Summit attendees Tweeted their experiences at the event from their smartphones and tablets, sharing the best bits of information they received from each presentation in real-time, using the #MPS2012 hashtag. The

Photos courtesy of 1105 Media

Clockwise from top: Attendees visit exhibitor tables during dedicated show hours at World Expo 2012; Tod Pike, senior vice president of Samsung’s Enterprise Business Division, gives his keynote, “Powering Disruption,” during the Managed Print Summit; Charlie Grace, vice president of sales for EFI, speaks to attendees about windows of opportunity during his World Expo keynote. live Twitter stream was then projected onto screens in the main room, further underscoring the recent move to mobility and the importance of social networking. On Wednesday morning, July 18, Charlie Grace, vice president of sales for EFI, kicked off World Expo 2012 with his keynote address, “The Future of Business Imaging.” He first gave advice on how dealers can remain successful while transforming their businesses during times of industry change. www.officetechnologymag. c o m | A u g u s t 2 0 1 2 | 29

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experts: “Business Management,” “Docu“Successful companies and successful ment & Print Management,” “Hardware leaders, when they come up against change “Successful companies & Supplies Solutions,” “Managed Network and adversity, do not react — they create,” and successful leaders, Services,” and “Sales & Marketing.” Grace said. “And those are the ones who when they come up Between education sessions, attendees will not just survive; those are the ones who against change and had several hours of dedicated show floor will thrive.” adversity, do not react — time where they could check out the prodHe gave examples of windows of opportuucts and services of 100 exhibitors from nity in the music, Internet and mobile phone they create ... those are around the world. The show floor also inindustries, and suggested dealers stay ahead the ones who will thrive.” cluded the Managed Print Pavilion, where of the office technology industry’s window of representatives from In-Map Ltd., OKI opportunity by investing in their businesses. “The interesting thing about the window of opportunity is Data, Technology United, PrintFleet and NubePrint gave live that it always moves,” Grace said. “You have the window and demonstrations of their products and services. In addition, Recharger Magazine held its annual Readers you have a product that fits that window at the right time, and you reap the benefits. It’s really good during that time. But the Choice Awards and reception on the show floor after the first window’s already moving. If you stay put, you’re going to en- day of the Expo. Winners in 10 product and service categories joy it for a period of time, but in order to stay relevant, what I included ACM Technologies, GreatAmerica Leasing Corp., will challenge all of you to do ... is to keep yourself relevant by InkCycle, International Laser Group (ILG), LMI Solutions, investing. Not only by investing money that you may or may Micro Solutions Enterprises (MSE), PrintFleet, not have in your business, but it’s an opportunity to invest in Static Control and UniNet. The winners in the “Best Article” category were Lester Cornelius people and partnerships.” The keynote was followed by two days of education sessions and Tricia Judge. n Elizabeth Marvel is associate editor of Office where attendees could choose from almost 70 topics in six Technology magazine. She can be reached at time slots. These sessions were divided into five tracks, which elizabeth@bta.org or (816) 303-4060. offered attendees a wide variety of knowledge from industry

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25 • PRO Dealer Group

(800) 722-7745 / www.acmtech.com

(800) 440-8664 ext. 89172 / www.ecisolutions.com/MPS

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

2-3 • BTA East District Event

32 • GreatAmerica Leasing Corp.

13 • Samsung

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

(800) 234-8787 / www.greatamerica.com

(866) 726-4249 / www.samsung.com/mpa

9 • BTA Southeast District Event

14 • IBPI

7 • Sharp

(800) 234-8996 / www.bta.org/BTASoutheastEvent

(480) 393-1694 / www.ibpi.net

www.sharpusa.com/touchpanel

16-17 • BTA West District Event

11 • MSE

23 • Smart Power Systems

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

(800) 673-4968 / www.mse.com

(800) 882-8285 / www.smartpowersystems.com

5 • DocuWare

15 • OKI Data

31 • The Imaging Channel

(888) 565-5907 / www.docuware.com

www.okidata.com/TMP

www.theimagingchannel.com

30 | w w w. o f f i c e t e c h n o l o gymag.com | August 2012

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Your link to the business and people of managed print. in-depth features channel profiles industry Q&A expert analysis vertical profiles industry experts hardware profiles channel pulse and much more

The Rules of MPS

INSIDE: Defining the Indefinable: The Rules of MPS pg. 20 We can see the results, feel the power and know they are real, but the rules of MPS are not easy to define.

The Laws Your Clients Contend With pg. 12 There’s a lot to consider when “assuming responsibility” for clients’ devices, especially in light of today’s privacy laws.

Five Things to Consider When Developing Your Mobile Field Service Strategy pg. 33

theimagingchannel.com

April 2012 Volume 3, No. 2

Mobile technology has become a necessity in the service business

The Evolution of MPS INSIDE:

The Evolution of MPS: A Matter Of Perspective pg. 24 From papyrus to paper, the evolutionary path of MPS, like most technologies, is a long one. Its direction, however, depends largely on your perspective.

M&A Activity Connects Print With Other Services pg. 15 A new strategy of reshaping business serves to combine and conquer the ever-changing marketplace.

Already have one? Make sure your colleagues are in the know. Sign them up for a subscription.

Avi Resort & Casino Hits the Jackpot With MPS pg. 30

theimagingchannel.com

July 2012 Volume 3, No. 3

This Nevada casino got on board with MPS and cut printing costs by more than 65 percent.

theimagingchannel.com twitter.com/ImagingChannel linkedin.com/groups/Imaging-Channel-2737017

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Helping You get tHere. greatamerica.

Where do you Want to take your business? GreatAmerica is committed to helping you get there. From Managed Print Services and HR support to Managed IT Services, we’ve developed a suite of offerings that go well beyond traditional financing solutions. “If we did not have the help of GreatAmerica, we could not have been successful in developing our MPS program particularly with our large deals. They are the reason we’ve been successful.”

Our goal is to help you achieve greater success.

Jerry Jones President & CEO Cannon IV, Inc. Indianapolis, IN

www.greatamerica.com | 800.234.8787

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