December 2006 Office Technology

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CONTENTS Volume 13 No. 6

FEATURE ARTICLES 10

2007 Industry Forecast OEMs look to the new year

COURTS & CAPITOLS Enforcing Dress Codes Regulating employee appearance is your right

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What do industry leaders see when they look to 2007? Office Technology magazine asked representatives of nine OEMs to share their expectations for the new year.

by Robert C. Goldberg BTA General Counsel

Regulating the appearance of your employees is well within your rights as an employer. The standards must apply uniformly and take into consideration any health and religious requirements.

10 Canon U.S.A. Inc.

by Sam Yoshida, Director & General Manager of Product Marketing

12 Konica Minolta Business Solutions U.S.A. Inc.

PRINCIPAL ISSUES Executive Briefing: Katun Vendor shares vision of growth with industry media

27

by Stephen Jones, Executive Vice President

by Brent Hoskins Office Technology Magazine

14 Kyocera Mita America Inc.

As the office technology industry changes, so, too, is Katun Corp. Beyond its traditional products, the vendor is now also focused on several key drivers for growth, including supplies for color copiers/MFPs.

by Michael Pietrunti, President & Chief Operating Officer

16 Muratec America Inc.

by Jim D’Emidio, Vice President, Sales & Marketing

17 Oki Data Americas Inc.

MARKETING MATTERS ‘C’ Level Marketing How do you reach these senior executives?

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by Steve Feldstein, Senior Planning Manager — Color MFP

by Ian Crockett Hunter Barth Advertising

Reaching “C” level individuals is a priority in a dealership’s print management strategy. How do you reach them? Your initial step needs to be getting on their radars through mass media advertising.

19 Panasonic Digital

Document Company

by Steve Mullin, President

20 Ricoh Corp.

by Tom Salierno, President & COO, Ricoh U.S.

22 Sharp Document Solutions Company of America

DEPARTMENTS Business Technology Association

25

January Education Calendar

by Ed McLaughlin, President

24 Toshiba America Business Solutions Inc.

by Rick Taylor, President & CEO 4 | www.of ficetechnologymag.com | December 2006

6

Executive Director’s Page

8

BTA President’s Message

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Advertiser Index

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EXECUTIVE DIRECTOR’S PAGE

Performance Groups Guiding BTA Dealers

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s you know, the Business Technology Association offers its dealer members the opportunity to become part of one of three peer collaboration performance groups, providing a venue for them to share ideas with one another, supported by benchmarks against which they can measure their success. They are: Business Products Council Association (BPCA), Select Dealer Group (SDG) and XSCEND Performance Services.

In early November, I had the opportunity to sit in on part of the inaugural meeting of the first BTA XSCEND group, named “Performance One” by its charter members. The meeting was held at the offices of NCM Associates Inc. in Overland Park, Kan. XSCEND is a division of NCM. I was very impressed with the meeting.

The facilitators did a great job. It’s no wonder. NCM has approximately 100 employees. Collectively, they have many years of experience with peer collaboration groups, primarily in the automotive industry. This is a first-class organization.

It was obvious the dealers attending the meeting were pleased to be part of such a group. The dialog was great. I know the dealers will learn plenty from one another in the months and years to come. Following the meeting, I asked a couple of the participants to comment on the formation of the new group. Here’s what they shared: “As a business owner, you always want to know what you are doing right and where you need to improve. Joining a group of your peers is the best way possible to accomplish this. It is also nice to have a 6 | www.of ficetechnologymag.com | December 2006

group of 10 to 15 business owners in ‘your’ industry to bounce ideas, questions and thoughts off of — many of which they are doing or have tried in their companies.” — Steve Clapp, CEO, North American Office Solutions, Orlando, Fla. “Quickly and accurately interpreting industry trends and developing industry best practices is critical to the long-term growth and success of our business. We are convinced that the BTA XSCEND group we have joined will help keep us sharp and in touch with the key factors affecting our business and our industry. Having a group of seasoned, successful dealers sitting around a table trouble-shooting and adding value to each others’ businesses is one of the smartest investments an independent dealer can make to access the experience and intelligence of the corporate mind in the room. I am certain the insight gained during these meetings will significantly impact the future success of our business.” — Richard Mark, managing director, R.L. Mark & Company Ltd., Barbados.

Are you looking for a way to “significantly impact the future success” of your business? If so, perhaps it is time to consider joining a performance group. Here is the contact information: Business Products Council Association — Contact Valerie Briseno at (800) 897-0250. Visit www.businessproducts council.org.

Select Dealer Group — Contact Kevin Heitritter at (951) 676-8885. Visit www.sel ectdealergroup.org.

XSCEND Performance Services — Contact Dennis Hunter at (877) 497-2363.

Visit www.xscend.com.

— Brent Hoskins

Executive Director/BTA Editor/Office Technology Brent Hoskins brent@bta.org (816) 303-4040 Contributing Writers Ian Crockett, Hunter Barth Advertising www.hunterbarth.com Robert C. Goldberg, General Counsel Business Technology Association

®

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 Cathy Kenton Membership Sales Representative cathy@bta.org Gary Hedberg Accounting Manager gary@bta.org Mary Hopkins Accounting Clerk mary@bta.org ©2006 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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©2006 Toshiba America Business Solutions, Inc. Electronic Imaging Division. All rights reserved.

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WHAT HAPPENS WHEN YOU GIVE CUSTOMERS WHAT THEY WANT AND BALANCE IT WITH WHAT THEY NEED? YOU GET A COMPANY THAT UNDERSTANDS IT’S NOT ENOUGH TO OFFER RELIABLE PRODUCTS. YOU HAVE TO

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OFFER THE RIGHT BALANCE OF SERVICE, SUPPORT, TECHNOLOGY AND PRICE. YOU ALSO GET A COMPANY THAT HAS ITS SIGHTS SET ON CHANGING THE WAY YOU THINK ABOUT COPIER COMPANIES. THE ANSWER IS CRYSTAL CLEAR. CALL TOSHIBA AT (949) 462-6165 TO LEARN ABOUT BECOMING AN AUTHORIZED TOSHIBA DEALER.

9

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BTA PRESIDENT’S MESSAGE ®

‘07 Industry Forecast Offers Good Insight

F

or as long as I can remember, BTA’s monthly magazine — now Office Technology — has featured the annual Industry Forecast. It has always been a good resource for learning which product categories and sales opportunities are seen as the most important from the manufacturer’s perspective.

This issue features our 2007 Industry Forecast. Executives from nine leading office technology manufacturers have shared their forecasts for the new year. While there are many comments on specific vendor products, etc., there are also common areas of emphasis that I believe are telling. For example, clearly, color is a key area of focus for most of the vendors. Likewise, there is no shortage of discussion on the topic of solution sales.

Naturally, as a Sharp dealer, I am inclined to first take a look at the forecast from Sharp’s Ed McLaughlin. I welcomed the brief case study he shared on Bennett’s Business Systems, in regard to that dealership’s creation of a customized program using Sharp’s Open Systems Architecture (OSA). Certainly, it reveals the changing nature of our industry and the evolving role of the BTA Channel dealership.

Of course, what is particularly nice about the Industry Forecast feature is the opportunity to read the comments from the executives of other OEMs — the competing brands. Collectively, the forecasts provide some good insight regarding the new year and what we can expect from the industry as a whole. There is also some good advice for dealers. Here are a few examples: 8 | www.of ficetechnologymag.com | December 2006

From Canon’s Sam Yoshida: “Dealers can target human resource departments to add color to new-hire kits or health benefits collateral. In the general office, any users who create presentations, manuals, brochures and other ‘leave-behinds’ are potential users.”

From Konica Minolta’s Stephen Jones: “We believe the success factor for our dealers in the solution-selling arena is to focus on vertical markets such as finance, healthcare, government and education, and to align their businesses to address document imaging needs in these key market segments.”

From Muratec’s Jim D’Emidio: “By implementing an effective print management program you can effectively control every document imaging/output device within the customer’s facility and create residual placement opportunities.”

From Oki Data America’s Steve Feldstein: “Those dealers who can step up and deliver redesigned processes for efficiency and productivity will be the real heroes of 2007 and will be more profitable for it in the long-run.”

From Toshiba’s Rick Taylor: “Toshiba believes the best strategy for dealers to grow their businesses is through valueadded services. This doesn’t mean selling software — it’s about packaging hardware and software solutions that make MFPs more productive and helping customers to reduce costs and improve efficiency.”

I encourage you to read through all nine submissions in our 2007 Industry Forecast feature. I am confident that you will find some advice, insight and “thought starters” that will help ensure your dealership’s continued success in the new year.

— Dan Hayes

2006-2007 Board of Directors President Dan Hayes Purcell’s Business Products 222 E. 1st St. Campbellsville, KY 42718 dan@purcells.com President-Elect Shannon Oliver Copier Source Inc. 215-G Industrial Ave. P.O. Box 36395 Greensboro, NC 27406-4542 soliver@copiersourceinc.com Vice President Ronelle Ingram Steven Enterprises Inc. 17952 Sky Park Circle Ste. E Irvine, CA 92614 ronellei@msn.com BTA East Thomas Chin Accolade Technologies LLC 604 Hampshire Road Mamaroneck, NY 10543 tchin@accotech.com BTA Mid-America Mike Blake Corporate Business Systems LLC 2018 S. Stoughton Road Madison, WI 53716 mblake@corpbussystems.com BTA Southeast Bill James WJS Enterprises Inc. 3315 Ridgelake Drive P.O. Box 6620 Metairie, LA 70009 bjames@wjsenterprises.com BTA West Rock Janecek Burtronics Business Systems Inc. 216 S. Arrowhead Ave. P.O. Box 1170 San Bernardino, CA 92408 rjanecek@burtronics.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Fisher Newman & Rosenberg Ltd. 222 S. Riverside Plaza Ste. 2100 Chicago, IL 60606 robert.goldberg@sfnr.com

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2007 Industry Forecast OEMs look to the new year Compiled by: Brent Hoskins, Office Technology Magazine

A

s 2007 approaches, there are many opportunities for office technology dealers to consider, such as color-capable MFPs, software solutions and production print. What do you see as the greatest areas of promise in the new year?

Office Technology magazine asked representatives of nine of the industry’s OEMs to share their expectations for 2007. Specifically, the participants were asked to address several questions regarding technology and the changing market. Among the questions: What do you believe will be the greatest market and product opportunities for dealers in the new year in terms of helping to grow their dealerships and better ensure a prosperous future?

What do you see as the characteristics of the office technology dealership that is best positioned for success in 2007?

What can the dealer channel expect from your company in terms of product advancements, market emphasis and new dealer support initiatives in 2007?

Perhaps the insight shared in the responses to these and other questions will help you better position your dealership for a prosperous new year.

Canon U.S.A. Inc. Sam Yoshida, Director & General Manager of Product Marketing Going into 2007, color will become a more pervasive and powerful tool than ever before. We are finding that more and more customers want to incorporate color and that demand is pulling the products into the marketplace.

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The color MFPs market has grown tremendously in 2006 — double-digit growth — and we expect that growth to continue into 2007. You can also expect to see significant growth in wide-format color printing and color production printing in 2007. If you are still contemplating whether you should get into the color market or how much to invest in this space, 2007 is the right time to jump into this market.

Canon really ignited this color explosion several years ago when we launched the color imageRUNNER C3200. This product was really the first of its kind in terms of the volume of units that we shipped into the marketplace and how the product was positioned.

In the past, we would market our CLCs to marketing and advertising departments that had color requirements. Now that color is more affordable, there are some unique opportunities for dealers to sell to some “non-traditional” color users. For example, dealers can target human resource departments to add color to new-hire kits or health benefits collateral. In the general office, any users who create presentations, manuals, brochures and other “leave-behinds” are potential users.

In 2006, Canon built off of the success of its color imageRUNNER C3200 to introduce new color devices from mid-volume corporate systems to high-volume production systems. Canon unveiled a family of powerful, yet affordable, color devices for large and small office environments that includes the color imageRUNNER C5180 Series and the color imageRUNNER C4580/C4080/C3380/C2880 Series. We are expecting these products to grab a significant share in the marketplace in 2007.

We are also excited about what Canon has to offer in the

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For example, at GRAPH EXPO 2006 in production printing space for 2007. As ...

There are still October, we launched the imagePRESS many of you know, Canon introduced opportunities for workflow solutions program to help its entry into this market with the dealers in the print service providers and marketing unveiling of the imagePRESS C1 and service organizations automate their C7000VP earlier this year. We see these black-and-white workflows and expand their business high-quality color devices finding market. We continue offerings using Canon branded and homes in advertising, marketing and to make investments third-party hardware and software solugraphic design firms. The welcome for in this market ... tions. We expect this program to grow these products by the dealer and endand evolve with the marketplace to take user communities has been overwhelming, and we look forward to a good year in the market advantage of existing and new technologies and innovations to benefit our customers across the country. for digital production printing.

Dealers today understand that they need to be in the softWhen you look at Canon overall, the breadth of our ware business as well as traditional hardware sales. Initiaproduct portfolio and its commitment to technology and innovation is our biggest advantage. This is a result of our tives like the imagePRESS workflow solutions program will commitment to R&D, investing nearly 10 percent of revenue help dealers add value and offer services that will differenin technology and innovation each year. A perfect example tiate them from the competition and capture sales. In addiof this commitment is the imagePRESS offerings, which rep- tion to building partnerships with third-party solutions resents one of the largest single product R&D investments providers to develop document and job workflow solutions, Canon will be investing in building multiple software suites to date for Canon.

Also, Canon has been one of the top three patent- under the imageWARE umbrella to provide dealers with an receiving organizations for the past 14 consecutive years arsenal of solutions to meet customers’ needs.

Even though color is growing, there are still opportunities and number two for the total number of patents received in for dealers in the black-and-white market. We continue to the past 10 years.

Another major strength for Canon is its relationships make investments in this market, as can be seen with the with channel partners and the resources that we make avail- recent introduction of our new imageRUNNER Pro VP Series.

In 2007, dealers can expect Canon to continue to aggresable to those partners. A unique aspect of this industry is how closely manufacturers and channel partners work sively work with them to better address the market demand together to bring customizable and tailored solutions to for smarter document and job workflow solutions. customers, setting it apart from mass distribution channels.

Konica Minolta Business In 2007, we will see manufacturers and dealers working Solutions U.S.A. Inc. together even closer to deliver value to the end-user.

Stephen Jones, Executive Vice At Canon, we support the channels through extensive President, U.S. Dealer Sales training, marketing, sales and field support. For example, in When Konica and Minolta merged addition to the traditional dealer support personnel, we a little over four years ago, the senior have a group of field analysts who also assist in the dealer’s management team of the new compre-sale activities. pany, Konica Minolta Holdings Inc., Another important part with color for dealers is the sales announced a strategy for growth for discussions that they have with customers. Here dealers will want to move away from just quoting speeds, feeds and its Business Technologies Group that consisted of four specs and talk about adding value through total document major points: Increase market penetration in the general office and job workflow solutions.

Canon understands the needs of the market go well beyond market segment, shifting the emphasis to networked multijust delivering a great MFP, large-format printer or digital functional devices.

Grow market share in color. press. With the combination of hardware and Canon-branded Enter the production printing market. and third-party solutions, Canon can help customers achieve Shift to selling solutions. a level of efficiency and success never before imagined.

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In the four years since the merger, Minolta. For 2005, IDC reported that Our ... dealer channel Konica Minolta has consistently mainKonica Minolta was number one in plays an important tained this strategic direction. Each overall copier-based color shipments; role in implementing of these strategies is customer driven. and Gartner’s reports stated we were We take our cues from our customers, number one in color shipments for Segour strategies and in constantly assessing their needs and ments 1-4. The color transition market contributing to the fine-tuning our strategies to address — the shift from black and white to significant progress that these needs. color in the general business market has been made ...

Our independent dealer channel plays predicted 10 years ago — is happening an important role in implementing our now. Manufacturers have closed the strategies and in contributing to the significant progress cost-per-page gap so that the ROI on color is now that has been made in each of the four areas. We have con- approaching that of black and white. We believe that the sistently outpaced industry averages for shipments and color market is poised to finally take off and with our next revenue growth, and much of the credit goes to our dealers generation bizhub color products slated for 2007, Konica for that achievement.

Minolta and our dealers are well positioned to take full The general office market continues to shift to customer advantage of this trend. driven solutions, with an increased demand for total Production printing is yet another success story for network and front-end software support. Konica Minolta’s Konica Minolta. In 2004, we had virtually no market share in response has been to broaden our award-winning line of Segment 6 (91 ppm plus). According to recent Gartner stabizhub products by offering multifunction devices in a tistics, we are now number one in Segment 6 monochrome wide range of speeds and functionality. The bizhub market share with 31 percent of the market for the first half concept calls for machines that truly become a “business of 2006. The market acceptance of our bizhub PRO 1050 and hub� for the flow of information internally and externally. bizhub PRO 920 production printing systems, plus new The success and acceptance of this concept culminated in products such as the bizhub PRO 6500 (a 65 ppm color Buyers Laboratory Inc. (BLI) naming bizhub their Product device), leads us to believe that we will continue solid Line of the Year for 2005. growth in this important market segment.

Color has been a remarkable success story for Konica Solution selling is still a relatively small part of our

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to new color printers and MFPs will create revenue stream, but we see this growing Many KMA dealers a tremendous opportunity for dealers. at a faster rate. Rarely do we submit an are literally capturing Enhancing customers’ device utility RFP these days that does not call for competitive clicks while capturing more profitable color more sophisticated technical support, clicks will also help to stem the historical front-end software and specific applicalike a farmer reaps price decline that results from a “monotion support. We are entering into more wheat. KMA printer chrome only” replacement strategy. partner relationships — EFI, Creo, unit placements have While we believe that overall industry eCopy, IBM, Microsoft, etc. — and we are grown consistently ... placement trends will remain relatively moving towards an OpenAPI structure flat or be slow growth, clearly the B2C to allow for faster, smoother integration of applications with our devices. We have also created a Solu- evolution will provide a substantial runway for dealers to tions Support Division and simplified our territory structure stabilize their existing base and, at the same time, to better support our dealers as they transition to solution strengthen gross profit streams. Though Kyocera Mita selling. We believe the success factor for our dealers in the America (KMA) believes that upgrading MFP monochrome solution-selling arena is to focus on vertical markets such as hardware, software and services within existing accounts finance, healthcare, government and education, and to align will represent an opportunity for dealers in the near term, their businesses to address document imaging needs in these we continue to be bullish on the incredible printer growth key market segments. Further, our dealers must have a staff opportunity that exists today for every dealer within their with the requisite IT training and experience to create a existing customer base. This is where we think the real comfort level with their customers, and to gain the support incremental growth opportunity exists for all dealers — an opportunity for them to expand their business beyond their of IT management when it comes time to place the order.

Konica Minolta now has more than 600 authorized dealers traditional scope.

Consider that a mid-sized dealer with a 5,000 unit MFP and they are a valuable asset to us. A dealer has the advantage of local market knowledge and the ability to quickly adapt installed base is sitting on a 40,000-unit potential printer and respond to a changing business climate. Our emphasis upgrade opportunity (using the 8:1 IDC standard.) These going forward is to offer more sophisticated support to those older printers are like ripe fruit just waiting to be picked! dealers who want to align their businesses with us. We are Consider the following: If each printer generates only very excited about the new color products waiting in the 3,000 prints per month, the potential click base existing wings, but we also realize we have to step up our dealer in this example dealer’s captured MFP base is approxisupport to include business planning (we have a 40-page tem- mately 1.4 billion clicks! You can interpolate the rest — plate to help our dealers create a detailed business plan), that’s 1.4 billion clicks times your MFP service and supply solutions support, vertical market applications information, rate. And, not only do your revenues grow as you replace more sophisticated education programs and marketing your customers’ existing printers, your customers are materials to help them create local campaigns to generate saving money!

Those dealers who are able to tap into this printer oppornew business. In a nutshell, we want to foster a true partnership with our dealers, helping them create a vision for their tunity are the dealers who will experience true incremental business and then providing the tools they need to make that growth. KMA dealers are already ahead of the curve relative to the rest of the market in realizing these gains, as they are vision a reality. equipped with a broad printer line that can support an MFP aftermarket pricing strategy.

Kyocera Mita America Inc. Michael Pietrunti Many KMA dealers are literally capturing competitive President & CEO clicks like a farmer reaps ripe wheat. KMA printer unit The document imaging indus- placements have grown consistently over the past five years try will continue its regeneration at rates exceeding 20 percent year-over-year, and since throughout 2007. One key driver will April 2006 our printer unit placements are growing at an be the B2C market, where the transi- incredible 35 percent versus last year. This is due to a comtion from older monochrome devices bination of providing our dealers with a complete line of 14 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 6

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color and monochrome printers ranging textbook definition of a “win-win.�

Fundamental changes in speed from 15 to 50+ ppm with one of At the same time, MFP/printer in business process the lowest TCOs in the world. product technologies are becoming management are also As more and more of today’s busimore intelligent. This can create a gap ness leaders become sensitized to how between a customer’s workflow and having an impact. One much they are spending on printing Kyocera Mita’s products. To address driver in this area is they are shifting focus on TCO, which is this, dealers must continue to move regulatory changes like another trend that will continue to toward a “solutions model� for sales, Sarbanes-Oxley. impact our business. Today’s modern emphasizing document management office is closely monitoring the cost of workflow solutions, not just office prodsupplies and other post acquisition spending. Many of our ucts. Finding new revenue streams from areas like software dealers are taking advantage of this situation by imple- maintenance and custom workflow configurations within menting a Managed Print Services (MPS) program. A the existing customer base is essential. dealer who can offer customers an integrated package of Fundamental changes in business process management hardware, software, services and support gains a consider- are also having an impact. One driver in this area is regulatory able competitive advantage. Properly implemented, an changes like Sarbanes-Oxley. To facilitate this change in MPS program will increase customers’ fleet productivity process management, we introduced iTag, an out-of-the-box while reducing direct and indirect costs. Customer satis- document management solution that is both easy to install faction rises and dealer support costs go down. This is a and flexible. iTag is a new offering, based on the core

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of printer-based MFPs, combined with technology from KYOcapture, Kyocera’s The old adage is that aggressive print and document manageaward-winning, server-based document you can’t beat HP when ment strategies, will also play a key role. capture workflow solution. Both products it comes to printing.

Muratec sees ample opportunities help users to “simplify” their business for dealerships that take advantage of lives, in line with our brand promise.

However, you can the burgeoning high-speed letter-size Another tool that will become insucceed when it comes MFP market, created by the 2005 creasingly useful to dealers is Kyocera’s to offering ... copying, release of the HP 4345 and the recent Professional Services Group. It can help scanning and faxing. introduction of the Xerox 4150. These customers improve productivity and products, and those soon to be released maximize their investment in Kyocera hardware through customized software and network solu- by other manufacturers, offer a unique access point into tions while generating additional revenue for dealers. Pro- the workgroup environment. In addition to fulfilling a cusfessional services can help dealers build a stronger tomer’s Segment 2, 3 and 4 copying requirements, dealers relationship with their customers by creating a “value- should focus on the opportunities that workgroup printers added” advantage over the competition. Professional serv- represent. Specifically, dealers should focus on replacing ices bring power, management capabilities and optimal these printers with high-speed letter-size MFPs. The old adage is that you can’t beat HP when it comes to functionality to a business’ day-to-day document workflow. printing.

However, you can succeed when it comes to We recognize that the BTA Channel is unique. Dealers who are part of their local communities develop personal offering more multifunction performance, such as copying, relationships with customers, allowing them the flexibility scanning and faxing. The value proposition to the customer to determine and meet their needs. It is the loyalty and is that you are going to replace their existing workgroup ingenuity of our BTA dealers, combined with our con- printer with an output device that can provide faster pertinued commitment to provide superior products and formance, offer full output with finishing options and support, that represent the engine that will guarantee our operate at a cost-per-page that is significantly less than the mutual growth and prosperity. When we consider the cost to maintain a standalone printing device.

In addition to enhanced output performance, the customer strength of our core competencies, such as our highly decorated, award-winning product line, our best-in-class will be able to utilize the device as the digital “on-ramp” to the product reliability, long-life components, extraordinarily network. What does this mean? As customers employ doculow TCO, our common engine platform and shared ment management strategies they will utilize dedicated, cendrivers/utilities, and a rapidly growing brand name, these tralized high-volume scanners to migrate legacy hard copy core competencies read like a bio used to describe the documents into digital format. However, to ensure the industry leader. When you combine the positive impact adoption and ongoing maintenance of these systems, comthat will result from adding the 18 new products to our panies will look to integrate MFPs into the workgroup envimix, led by a dealer channel that is second to none, we are ronment to make scanning accessible to all users.

Customers can also utilize these workgroup MFPs to now not only in a position to expect better, we are in the enable digital document delivery to e-mail addresses, fax very fortunate position to “Expect the Best!” terminals, FTP sites and network repositories — all without consuming valuable workspace and/or increasing the total Muratec America Inc. Jim D’Emidio, Vice President cost of ownership. of Sales and Marketing What is the value proposition to the dealer? You have Muratec America Inc. sees abun- created a tremendous solution for your customer, while dant growth potential for inde- replacing equipment that you previously had no control pendent BTA office equipment over. Now dealers can replace not just one Segment 4 copier, dealers in 2007. Obviously, the but multiple high-volume printers with smaller, high-speed increased acceptance of color- MFPs. This conveniently brings us to our next growth enabled MFPs by the customer will strategy for 2007 — print management.

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benefit from print management services. What is print management? This refers to the process of discovering all print devices within an organization, calculating current output expenditures, providing supplies and service for these devices and ultimately controlling the replacement of these devices with another printer or MFP. Print assessment tools, such as those provided by FMAudit, can assist dealers in quickly sniffing out all print devices on the network. From there these tools can tabulate how many prints each device is generating and calculate the overall monthly operating cost.

The dealer is now poised to outline printing inefficiencies, calculate the customer’s true document output expenditures and then recommend solutions in which to reduce the cost burden while increasing efficiency. In addition to replacing these devices with MFPs, dealers should look to supply and servicing opportunities on output devices that the customer does not wish to replace.

In order to effectively capture this business the dealer must first seek the assistance of an OEM-compatible cartridge supplier, such as Imagemate, to procure supplies. Secondly, the dealership must invest in educating service personnel on non-core equipment such as HP and Lexmark printers. By developing this relationship and knowledge base you can effectively market your print management services to your existing customer base and take control of devices that had previously eluded your radar.

By implementing an effective print management program you can effectively control every document imaging/output device within the customer’s facility and create residual placement opportunities.

The final growth area we envision for 2007 is the continued adoption of document management strategies/implementations by independent office equipment dealerships. Each year we continue to see more dealers make financial, educational and personnel investments in becoming a full solution provider. Dealers risk falling behind the competition if they continue to ignore the market opportunity that exists for document capture and storage.

2007 will be a critical year for those who have yet to make that transition.

Dealers have to invest in educating themselves as owners as well as their employees. Dealers should not depend on the manufacturers to make their print and document management decisions. With hundreds of choices in the market it is imperative to be an engaged and educated dealer owner.

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Oki Data Americas Inc. Steve Feldstein Senior Planning Manager — Color MFP

Remember the words “business content management.” Ready or not, operation-wide workflow consulting and integration services will be paramount to the success and profitability of dealers in 2007 and beyond. However daunting it sounds, the move to integration services can be relatively painless for dealerships that strike the right balance of expert skill-set, services-friendly compensation and cost structures, and comprehensive hardware and software portfolios.

The MFP industry has pushed “solution” sales for years as it watched hardware prices erode. Some dealers have taken the advice. Many have not and continue their focus on traditional hardware-leasing sales models. With the availability of Microsoft Vista and XPS in 2007, dealers will inevitably see their customers take increased interest in document workflow integration, especially because Microsoft will be targeting the SMB (small and medium business) space with these new products. Business process improvement will now be within reach of the masses, not just the large enterprise customer that could afford to spend significant amounts on customized integration projects. Those dealers who can step up and deliver redesigned processes for efficiency and productivity will be the real heroes of 2007 and will be more profitable for it in the long-run.

Microsoft Vista’s built-in document workflow integration capabilities will empower businesses to do more than just scan and store documents. Businesses will look to partners that can build document workflow infrastructures that optimize the benefits of Vista across their operation. MFPs will present the front-end of the process and the entry point for dealers to capitalize on this trend. If dealers can effectively deliver the workflow integration piece, they will be able to gain greater understanding of their customers’ businesses and lock them in.

Are you late to the integration game? Begin now, but start slowly. Moving towards a solutions-selling model will be important to counter the effects of decreasing hardware margins, but dealers should not try to do too much overnight.

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largest area of growth over the next year.

Acquiring the right skill set is crucial.

Solution-selling employees need to have project management skills, experience in business process consulting and workflow assessments, and be accustomed to longer sales cycles. Compensation packages need to be adjusted accordingly to reward the total revenue of the opportunity, including loaded costs and implementation charges. Cost structures also need to be adjusted to accommodate a more hourly consulting services approach. By doing so, dealers encourage the solutions and integration sales that carry the higher margins.

Dealers who build their integration business and have comprehensive hardware and software portfolios will be best positioned for success. On the hardware side, we anticipate that 2007 will bring a rise in demand for “color-centric” MFPs. Businesses that got their feet wet with “color-convenient” devices in 2005 and 2006 are embracing color and consistently exceeding their leases’ monthly color print volumes.

Successful dealers need to work with their customers to upgrade from “color-convenient” to “color-centric” MFPs for greater savings efficiency and color quality in the long term.

In turn, dealers can expect increased profitability from the lucrative aftermarket consumables business.

Printer-based MFPs are also taking off with several new products that have succeeded in proving there is room for more vendors in the MFP marketplace. Dealers should capitalize on this growth and incorporate printer-based MFPs into their portfolios to meet the increased demand of the marketplace.

Partnering with the right vendors will continue to be an issue in 2007. Dealers have a variety of partnership options to round out their software portfolios with several vendors that provide document capture and routing software including NSI Autostore, eCopy and Kofax.

For hardware, OKI Printing Solutions is 100 percent committed to independent dealers for high-end color and mono printer-based MFPs. OKI Printing Solutions will launch a major MFP line expansion featuring increased ease-of-use and Vista plug-and-play functionality, as well as color-centric and copierbased enhancements. Our dedication to providing customized solutions that support business content management will be evident in the embedded software functionality and integration capabilities of our MFPs. Our SMB focus will continue with several new products aimed at this color MFP-friendly market.

In addition, OKI Printing Solutions will continue to provide the

Dealers who build their integration business and have comprehensive hardware and software portfolios will be best positioned for success.

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also enhanced the core value of our softlucrative programs, industry-leading That our dealers’ ware solutions such as our Panasonic product warranties, excellent training opportunities mirror Document Management System and and extensive tech and field support that ours is no accident ...

Panasonic Document Distribution System are synonymous with the OKI Printing We are always in addition to enhancing remote diagSolutions name. nostic service (RDS) capabilities.

Dealers will see great things from conscious that this As we go into 2007, we feel that the OKI Printing Solutions in 2007. We have market is largely greatest market and product opportunidoubled our MFP resources and are dealer driven ... ties for our dealers will directly parallel prepared to go to market with a full line our own “golden” opportunity — the of products and solutions that will rapidly escalating conversion from black-and-white docusupport our ever-expanding dealer network.

The dealer community is poised for great success in 2007 as ment production to color production at the enterprise level.

That our dealers’ opportunities mirror ours is no accident. the industry evolves to more integration and solutions.

We are always conscious that this market is largely dealer Dealers already maintain the strongest understanding of their customers in the industry. They have a service structure that is driven and that dealers are a much tougher sell than end-users. nearly impossible to replicate, with local presence and expert End-users may be intimately familiar with two or three of your staff that make them the undisputed one-stop-shop for office competitors’ products, but dealers know them all down to the equipment management. The successful move to business last detail. They know what your rollers are made of and how content management is attainable for those dealerships that many impressions they will make before they wear out. take the necessary steps to succeed with a few highly-skilled process experts, the appropriate compensation and cost packages and the right mix of hardware and software portfolios that match market needs.

Panasonic Digital Document Company Steve Mullin President We believe 2007 will be a breakout year for our company, our dealers and the industry as a whole.

At Panasonic Digital Document Company, we place substantial strategic emphasis on identifying and prepping for each upcoming cycle’s opportunities and this year has been no different. The year 2005, as I said on these pages 12 months ago, was devoted to bringing our innovative C3 line of color multifunction products to market, putting our house in order by totally revitalizing our manufacturing capability, and vastly expanding our presence in the dealer distribution channel.

In 2006, we focused on introducing cutting-edge products including five all-new C3 color MFP models featuring such technological innovations as high-speed, onboard Automatic Picture Image Control and micro-particle, low-melting-point toner, ledger-format MFPs, production scanners with proprietary Double Exposure and color-dropout technology, and full-color dual-flip-panel Panaboard whiteboard/scanners. We w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 6 | 19

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Our dealers can definitely look for Office system dealers today are well In 2007, we will more emphasis on color in output capaaware of what picking the wrong product continue to put bility and styling in 2007. The people line can do to their reputation for quality increased emphasis who operate and, increasingly, sign the and service. Before you walk through a on helping dealers purchase orders for office machines dealer’s door, you have to take a critical today are part of the iPOD generation. look at your company from his point of find, qualify and recruit Given the choice between a plain vanilla view and ask yourself “Why?” Why would talented, motivated tool and a stylish one, they will — other I want to carry these products? We ask salespeople ... factors being even — always choose the ourselves that question — “Why Pana“looker.” So we expect our new line of sonic?” — over and over again along the developmental timeline of every new product line, model and designer-color C3 MFP models to give our dealers yet strategic plan. And by the time we are sitting across the table another potent unique selling proposition to highlight.

During 2007, dealers can expect Panasonic to continue to from a dealer and he asks “Why Panasonic?” we’re ready. strengthen our relationships with them through more robust We’re ready to explain why our global leadership in highdefinition plasma television, advanced HD broadcast cam- dealer programs, best-in-class response from our highly corders, and state-of-the-art digital still cameras — not to trained, experienced support teams and ongoing development mention our award-winning C3 multifunction products — of all our product lines. With an increased demand for secumake Panasonic arguably the world leader in color imaging rity, we will continue to enhance our existing products with features such as data security kits that conform to ISO15408 and reproduction.

We’re ready to show why the Panasonic Total Solution is (Common Criteria) standards and offer IPv6 functionality.

In 2007, we will continue to put increased emphasis on the industry’s best, most completely integrated answer to helping our dealers find, qualify and recruit talented, moticustomers’ needs. We explain the productivity advantages of our cross-platform, multi-product SD card interface and vated salespeople via an advanced Internet-based Pyracan discuss our IP integrated business applications and midST sourcing system. Dealer feedback previewing the system in 2006 has been unanimous in reporting that it prozero-distance management components.

We’re ready to show why Panasonic received the 2006 duced better candidates at a fraction of the monetary and Buyer’s Laboratory Certificate of Reliability and was time cost of traditional recruitment solutions; we are now honored with both the AIIM Magazine Best of Show Work- ready to implement it nationwide.

Our engineering and our core-manufacturing facilities group Scanner of 2006 and Intrepid Technical Services 2006 provide us with state-of-the art products that our dealer Scanner Manufacturer of the Year awards.

In 2006, for example, we experienced a substantial network is superbly qualified to sell, deploy and service.

In 2007, our job is to continue to create awareness for upsurge in demand for products with scanning capability and we expect even stronger performance in 2007. In antici- today’s business decision makers by telling them how Panapation of this, we have positioned our scanners, such as our sonic Digital Document office automation system products, award winning KV-S-1025C/1020C, to give our dealers supported by a best-of-breed dealer base, can enable them something most vendors cannot offer them — a line of top- to perform their jobs more effectively, productively and rated standalone scanners for customers seeking an cost-efficiently. upgrade from the sometimes-limited scanning features of Ricoh Corp. multifunction products.

Tom Salierno, President & COO While we also expect the demand for high-performance Ricoh U.S. color-capable MFPs, printers and copiers to rapidly escalate, As we move into 2007, the imporwe are aware that many dealers have customers who do not tance and need for advanced softwareneed full-color often enough to justify the higher CPC. Even based solutions will continue to grow, though many manufacturers have announced that they will driven by critical workflow demands totally stop developing new black-and-white models, we are of today’s marketplace. Even though introducing a line — the 80 Series — of high-performance, hardware sales currently outweigh cost-effective monochrome MFPs to fill this niche.

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software sales, the prominence of softsolutions are critical to meeting these Ricoh’s security solutions ware will emerge as the primary solution requirements as they alleviate much of are designed to protect for resolving customer pain points. the time spent on the document lifecycle customers’ sensitive Hardware allows for the successful crethrough system integration, improved documents ... essential ation of documents. However, there is a distribution and workflow. Security and more complex life cycle following docudocument protection are also critical in today’s world that is ment production that relies on the issues for customers. Ricoh’s security filled with more security capabilities of software solutions to solutions are designed to protect custhreats than ever before. streamline and manage document worktomers’ sensitive documents, which is flow. Ricoh’s software solutions focus on essential in today’s world that is filled the document workflow processes that transcend the devel- with more security threats than ever before. By protecting opment of a document, which includes document storage, critical information, efforts to compromise hard drive management, distribution, tracking and security. content and business continuity are thwarted.

To address this trend of increasing demand for higherSoftware solutions must also address customers’ conlevel software solutions across all markets, Ricoh created a cerns regarding compatibility with their existing systems.

Document Solutions & Services Division (DSSD) in April Customers do not want a solution that requires a large 2006 that is designed to market document solutions and initial investment, lengthy implementation period and IT services worldwide. One of the goals within DSSD is to manpower. Ricoh excels at working with customers’ existing improve the sales process, providing more advanced solu- software solutions and networking multifunction products tions training to dealers and focusing on complete packaged (MFPs) to that particular type of software in an efficient and solutions that minimize the sales cycle and integrate seam- cost-effective manner. For example, Ricoh’s DocumentMall lessly into customers’ existing systems. Ultimately, DSSD is and GlobalScan solutions integrate seamlessly into a cusstriving to stay one step ahead of customer needs in regard tomer’s existing system. to software solutions, going above and beyond current docIn addition, Ricoh is able to successfully address compatiument workflow requirements. bility issues with its Developer Program (RiDP) that allows Customers are constantly faced with demands in regard third-party developers to integrate their software solution(s) to productivity, quality and time. With that said, software directly into Ricoh’s Embedded Software Architecture (ESA)

Honoring the Industry’s Best In March 2007, BTA will recognize three top dealer/reseller member dealerships that have achieved excellence in business. The winners will be announced at the 2007 ITEX Show in Las Vegas.

To receive an application to be considered for this prestigious award, e-mail info@bta.org.

All entries must be received by Jan. 15, 2007.

Each year, BTA surveys office technology dealers regarding their satisfaction with their equipment suppliers. The results are used to determine the top suppliers for Product Line, Marketing Distribution and Corporate Support. The winners will be announced at the 2007 ITEX Show in Las Vegas.

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Since software solutions are the future, Java platform. Customers recognize that Less than two years Ricoh’s Alliance Program has focused on tightly integrated solutions lead to the ago, the market had developing strategic alliances with softrealization of greater value for their less than 3 percent ware, content management systems inteequipment purchase through increased connectivity in regard grators and consulting companies in productivity. providing innovative and effective softAnother important requirement for to scanning solutions ware, digital imaging and content/docucustomers is that the integration of soluand currently it has ment management solutions to the tions not negatively impact or disrupt over 25 percent. business community. Working with these their workflow patterns. Software solucompanies enables Ricoh to expand its tions should serve as an extension of their desktop and seamlessly integrate into the existing solutions offerings, address customers’ pain points at an even workflow. While these solutions should be advanced and greater level and exceed expectations. Ricoh has further sophisticated externally, the goal is to streamline and sim- enhanced the value and functionality of our MFPs and Globplify document applications internally for the customer and alScan by forming strategic alliances with the leading image keep business operations running smoothly. Ricoh strives to capture and fax server technologies. In addition, alliances with keep its solution applications as simple as possible for the a nationwide network of systems integrators (SIs) have proend-user while providing customization for specific needs. vided the required consulting, professional services and inteFor example, customers can access their DocumentMall gration needed to customize and integrate the technologies.

Another area of focus for Ricoh is integrating effective soluaccount right from the LCD of their MFP. DocumentMall can also share and distribute documents without IT having tions with our high-volume and color printing products. New to make changes to a customer’s existing network infra- competition is constantly entering the field and Ricoh realizes structure or security policy and can be upgraded at any time that offering state-of-the art color products is not enough. The new face of color incorporates strategic solutions to enable without interruption to their business.

Natural disasters and terrorist attacks were eye-openers greater customizable capabilities for customers. An example for many businesses and emphasized the importance of being is Ricoh’s PrintMail, a direct marketing solution that works in prepared in the event of disaster and backing up critical doc- conjunction with Ricoh’s digital color printers and MFPs, uments. As a result, corporations today now recognize the making it easy and practical to produce critical collateral importance of scanning documents and storing them in safe such as newsletters, sales flyers and invitations.

In 2007, Ricoh will continue to produce state-of-the-art locations. Privacy is another critical function of scanning dochardware functionalities; however, Ricoh will be leading the uments. Scanned documents can be encrypted so that only the user can retrieve and utilize the information he or she is transition in regard to the emphasis on software solutions and trying to keep protected. Initiatives like the Patriot Act and arming our dealers with the proper tools to ensure they are HIPAA have underscored the importance of keeping informa- addressing and satisfying customers’ needs. Software solutions, which continue to be refined and enhanced, will enable tion secure, protected and out of the wrong hands.

There has been an increased penetration of scanning customers to help move their businesses forward and will cersolutions this past year. Less than two years ago, the market tainly be moving Ricoh’s business forward in 2007. had less than 3 percent connectivity in regard to scanning Sharp Document Solutions solutions and currently it has over 25 percent. Scanning is a Company of America large part of Ricoh’s solutions business, comprising 70 Ed McLaughlin percent, emphasizing the importance and need for President advanced capture and distribution capabilities. An example This has been a banner year for of one of Ricoh’s scanning solutions is distributed scanning, Sharp Document Solutions Company which empowers the user at the point of capture. More of America. Not only did we introduce specifically, a tailored solution is created for users in which eight color MFPs in six months — a they have total control of the pathway of the document, as first for the company — but we also opposed to the document being sent to a central repository brought innovative technology to the market that lets dealers where it could end up being widely disseminated.

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from the comfort and convenience of personalize Sharp products to meet speEven with all of these their office. Bennett’s is also working cific customer needs. These advances and advances in color with the college to develop a program the support of our strong independent and customization, that lets users eliminate hard copy faxes. dealer network helped Sharp experience How did Bennett’s beat out the compedouble-digit revenue growth this year — one theme that will tition for this sale? It was simple — they far ahead of the rest of the market. stay consistent with listened to the customer and developed In 2007, there are two areas that will Sharp is the need programs to meet their specific needs help Sharp dealers continue to grow — for MFP security. using Sharp OSA. We encourage all Sharp color and customization. Let’s talk first dealers to learn more about the power of about customization. We all want products that fit our business needs and can grow with our customization through Sharp OSA by joining us for our regular company. However, when you think about scaling products Web casts on the Sharp Independent Dealer Network Channel.

The second sales opportunity for Sharp dealers is color to meet business needs, most people think about servers or MFPs. In the color arena, SDSCA delivered the new MX Series network architecture. For some reason, the copier has not been considered a node on the network, when in reality it is color MFPs that range in speed from 23 to 70 pages per minute. These new products helped set a record for growth in just as much a part of the network as any server or desktop.

This thinking changed with Sharp’s Open Systems Architec- the third quarter of this year, led by an impressive 70 percent ture (Sharp OSA), which brings the power of customization to increase in color shipments as well as an overall shipment the MFP. Sharp OSA is a development platform that integrates increase of 7 percent as compared to the same period last network applications seamlessly to create a personalized MFP year. Additionally, with our new, comprehensive business that can meet your customers’ specific business needs. color line, Sharp became the first company to win BERTL Already, Sharp has more than 50 dealers and independent Five Star Awards across an entire new color product line.

Looking at 2007, we will introduce additional color MFPs software vendor partners who have let customers’ needs guide the creation of hundreds of applications. The best feature of and also enter the light-production market with a monoSharp OSA is that any developer can use this platform chrome Segment 6 product for business customers that because it is based on XML and SOAP — industry standard need higher levels of output. Our black-and-white sales continue to be strong as customers upgrade current machines programming protocols that are used widely.

The true value of Sharp OSA to dealers is that it will help and incorporate Sharp products with custom programs into them evolve to become trusted advisors that work with cus- their fleet.

Even with all of these advances in color and customizatomers to address their needs both today and tomorrow.

Many dealers have asked me what the limits are for Sharp tion, one theme that will stay consistent with Sharp is the Open Systems Architecture. Quite frankly, there are none. need for MFP security. As daily reports of network breaches, The technology is restricted only by the imagination of the lost consumer data and hack attacks continue to be top news stories, dealers must pay attention to their customers’ dealer and his or her customer.

Since Sharp OSA is simple to program, dealers are begin- security, specifically when digital MFPs are attached to the ning to use it to help sell more hardware. For example, one network. Today’s copiers must be considered mini-servers of our dealers, Jacksonville-based Bennett’s Business on the network, to be treated like any other network appliSystems, created personalized programs with Sharp OSA ance when it comes to security. At Sharp, we make it simple that — at the touch of a button on the copier’s LCD screen for our dealers to include security as a value-add for their — reports service interruptions and reorders essential sup- clients. Our security products have led the market since the plies including toner, waste toner and staples. This basic yet 2001 introduction of Common Criteria certified products innovative approach to customer service helped Bennett’s and we continue to lead with the most comprehensive secuclose a large sale of color and monochrome MFPs with rity suites available. We encourage all Sharp dealers to make Florida Community College at Jacksonville. The college security a top priority.

We look forward to another banner year with our dealers as needed a better way to manage its MFP fleet, which was scattered throughout the campus. The Sharp OSA solution we strengthen our commitments to innovation, customizawill let the IT department employees manage the products tion and new product classes in 2007. w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 6 | 23

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Dealers also need to understand the Toshiba It is critical for dealers customer’s “pain points” and identify America to recognize that they solutions to assist in meeting their Business know their customers revenue goals. There are countless hidden Solutions Inc.

By Rick Taylor costs that drain profits. For example, better than anyone President & CEO there is a need to better understand docuelse. They need to truly ment workflow and eliminate paper.

We operate in understand their unique According to a recent Gartner Group a polarized busi“pain points” ... report, a document is copied, either physness environment — it is highly competically or electronically, nine-to-11 times itive, yet we are not a high-growth industry. In order to grow the bottom line, companies need to at a cost of about $18, resulting in staggering losses.

Printer fleets continue to be one of the most under differentiate themselves by providing value-added services to clients. At Toshiba, we’ve spent the last year carving our managed, costly assets within companies, resulting in lost niche by focusing on customer passion and identifying ways profit of roughly 1 to 3 percent annually. With our Global to provide irresistible value for our customers. We have Services Portal, Toshiba has the ability to help dealers intensified our focus on delivering solutions that meet the manage and support fleets of office equipment while also customer’s unique needs by using their feedback to develop helping businesses to control costs.

Another monetary drain is the cost to manage document many of our new initiatives and improve upon our product line. We attribute a large part of this year’s sales success to production. According to leading analyst firms, the average our commitment to this methodology. And, we believe the company spends about 15 percent of its annual revenues on same success can be found at the dealer level by listening to document production, management and distribution, resulting in millions of dollars in lost profit annually. the voice of the customer.

As we look to 2007 for future market opportunities, Toshiba Toshiba’s Encompass Document Analysis Program provides believes the best strategy for dealers to grow their businesses a solution to curtail the hidden cost drivers associated with is through value-added services. This doesn’t just mean selling manual-based document production procedures. It is an software — it is about packaging hardware and software solu- effective tool to increase business productivity, enhance tions that make MFPs more productive and helping cus- employee and operational efficiency and reduce document tomers to reduce costs and improve efficiency. This production and management costs by up to 40 percent.

It is crucial for dealers to recognize that they know their traditionally has been a tough transition for dealers. They have customers better than anyone else. They need to truly underlacked insight into their customers’ needs and not made a topdown commitment to the model. However, the margins in stand their unique “pain points” and address every one of value-added services are so great that it is a necessary step them. They need to tailor solutions to the customer’s needs and become an irreplaceable part of their everyday business dealers will have to embrace in order to improve profitability.

They don’t have to do it alone. At Toshiba, we want our practices. The better dealers understand their customers, the dealers to be successful in this transition, so we offer go-to- stronger their relationship. It is this type of intimate rapport market strategies and training that will help position dealers that presents a significant competitive advantage.

Today, customers want more than just copiers and printers. for positive growth. Toshiba has resources such as sales and service training, a comprehensive support desk, field sales They want dealers to help them think smarter, save money support and marketing teams that can help dealers “look and be more productive. At Toshiba we are developing new big,” but still operate at the local level. We offer online user technology to address these needs in the marketplace and tutorials that provide an easy and convenient way to under- position dealers for success. In 2007, Toshiba will continue to stand and operate our products. And, we continue to invest innovate and strengthen our color product line in order to in technology innovation in order to create new solutions deliver the most effective solutions in the industry. We will difthat meet customer needs. A good example is our propri- ferentiate ourselves through value-added services and capabiletary Re-RITE software that converts hard copy scans and ities, and we will also help our dealers to be successful in that faxes into 16 different searchable electronic file formats that space. We want to be our dealers’ valued partner and help them achieve profitability in 2007 and beyond. can be sent to a shared network drive, e-mail or both.

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EDUCATION CALENDAR BUSINESS TECHNOLOGY ASSOCIATION • December 2006

EDUCATION CALENDAR January 9-10

Service Managers Workshop Seattle, WA This two-day workshop, presented by MOTIVE8S Inc., will provide office technology dealership service managers with improved management techniques and enhanced team productivity. The goal of the program is to help service managers improve consistency, accounting and productivity through the development of new mind-sets, strategies, processes and tactics. The first area of focus is leadership: How to manage individuals and the service team with a consistent management process. The second area of focus is team development: people development and training; team staffing and recruiting; accountability standards; daily, weekly and monthly communications; and motivation, recognition and service team meetings. For information, call MOTIVE8S at (515) 210-2136.

12-13 FIX: Cost Management for Service Workshop

Cypress, CA Learn proven service management and customer service strategies to use in your company. Costing out the service hour, effective and profitable maintenance agreements, efficient vehicle operations, reducing personnel turnover, competitive compensation plans and identifying profit-making opportunities through the service operation are issues that are critical for success. Receive service department worksheets and action plan templates, sample maintenance agreements, cost/price spreadsheet templates on CD and a handy workshop reference manual.

15-16 Service Managers Workshop

Atlanta, GA

24-25 BTA ProFinance

Dallas, TX Analyze current business practices and evaluate strengths and weaknesses. Participants will explore important issues surrounding profitability benchmarks, asset management, expense controls and employee productivity. They will leave with a clear set of benchmarks and proven strategies for successful implementation with a target goal of 14 percent operating income. This course is sure to help you take control of and improve the financial performance of your company.

For a full list of upcoming BTA and other educational seminars or to register for BTA or MOTIVE8S workshops visit www.bta.org or call (800) 843-5059.

Effective Jan. 1, BTA is offering dealer members a $250 discount coupon towards FIX and ProFinance. Members may use their $150 discount coupons for the MOTIVE8S workshops.

For details, e-mail info@bta.org. www.of ficetechnologymag.com | December 2006 | 25

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COURTS & CAPITOLS

Enforcing Dress Codes Regulating employee appearance is your right by: Robert C. Goldberg, General Counsel for the Business Technology Association

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attoos, piercings and exposed underwear are all frequently encountered in public. Although you cannot control how people dress in public, you do have the right to regulate dress in the workplace. The appearance of the young American worker is changing, and it is increasingly decorated with ink and metal. According to a recent survey, approximately 50 percent of individuals in their 20s have either a tattoo or a body piercing other than traditional earrings. If first impressions are most important, many young people do not favorably impress their prospective employer.

These changes in society are causing employers to update their dress codes. In some cases, rules are being relaxed in an effort to attract young talent. Others are requiring that body art and excess piercings be covered up at work. In the past dress codes were very general; now some extend to five pages.

Here is an example of a typical dress code: PERSONAL APPEARANCE AND GROOMING Dress, grooming and personal cleanliness contribute to the success of (Company Name) and thus all of its employees, and affect the business image (Company Name) presents to its customers and clients.

During business hours, and while on working time, all employees are expected to maintain and present a clean, neat and pleasant appearance and are expected to dress according to the requirements of their positions. Employees who appear for work inappropriately dressed or not properly groomed may be subject to discipline. If you are issued a uniform, you will be expected to wear it at all times while on the job.

A violation of this Policy is a disciplinary offense. If you have any questions regarding this Policy or what constitutes appropriate grooming or attire, consult with your immediate supervisor or manager.

A general policy such as this may lead to problems, for the standards are subjective. The only clear message is that an issued uniform must be worn at all times. “Inappropriate” 26 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 6

dress and dress according to the “requirements of the position” are non-specific and may lead to misunderstandings. A dress code may be very stringent and specific as long as it is not discriminatory. The dress code for our law firm prohibits denim.

The restriction is clear and applies to both males and females. The only caution in formulating a code is to remain open for compromise in order to accommodate any health or religious concerns.

A recent case points out the need to accommodate religious beliefs in the workplace when it comes to a dress code. An employer restricted body piercings to two and only in the ears.

An employee who was hired consistent with this standard subsequently added seven more visible piercings to her body. The company offered to accommodate these piercings if the employee agreed to cover all but two ear piercings with BandAides. The employee refused and was terminated. The employee brought suit based upon her beliefs — The Church of Body Modification. This church (which can be found on the Internet) believes that individuals come closer to their lord through each piercing. The court found the religion to be valid and that the burden on the employer was not great in accommodating the employee’s beliefs. The employee won and was reinstated, piercings and all.

Regulating the appearance of your employees is well within your rights as an employer. The standards must apply uniformly and take into consideration any health or religious requirements for special dress. It is suggested that you provide your dress code to prospective employees and ask if there would be any difficulty in complying. Better to determine problems early in the process. Set the standards of appearance you desire for your employees; it is a right you have.

Robert C. Goldberg is general counsel for the Business Technology Association. He can be reached at robert.goldberg@sfnr.com. Members may call BTA Legal Services at (800) 869-6688.

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PRINCIPAL ISSUES

Executive Briefing: Katun Vendor shares vision of growth with industry media by: Brent Hoskins, Office Technology Magazine

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s the office technology industry evolves, so, too, is Katun Corp.

With a solid foundation built primarily on producing aftermarket “OEM-compatible” imaging supplies, photoreceptors and parts for workgroup monochrome copiers, the Minneapolis-based company is now also focused on several key drivers for growth, including stepped-up production of supplies for color copiers/MFPs. On Nov. 15, executives at the company met with industry editors and analysts to discuss the 27-year-old company’s vision for future growth.

The executive briefing was held the day prior to Katun’s public announce- Above: Katun Corp. ment of a “major expansion” into the headquarters, Mincolor arena. In early November, the neapolis. Right: company had introduced Katun Perfor- President and CEO Carlyle Singer. mance brand color toners for Ricoh’s Aficio 2228C/2232C/2238C series of digital copier/printers. In the coming months, Katun announced, the company also will be introducing “OEM-compatible” toner for “the most popular” machines from Canon, Konica Minolta and Toshiba. The color arena is not new to the company. During the briefing, Christina Rahm, director of Katun’s Color Center of Excellence, noted that between 2004 and 2005 Katun increased the quantity of its color products 218 percent. “We’re on target right now for doubling what we did last year in 2006,” she said.

“We have worked extraordinarily hard on color toner for the copier world,” said Katun President and CEO Carlyle Singer during the briefing. “And now, within the next three to four months, we’re going to introduce quite a number of those color toners. That’s a big event for Katun.”

Among the other Katun “drivers of growth” cited by Singer and other company executives: Plans to provide aftermarket supplies for the high-end production print market. “They are demanding and rigorous about uptime,” said Singer of those who use high-speed copiers. “They will not use anything that brings their copier

down, because that reflects on them.

So, this is an area where there is limited competition on the compatible side.”

Plans to aggressively pursue sales opportunities in emerging markets.

Singer specifically cited the countries of Brazil, Russia, India and China. Currently, 60 percent of Katun’s revenues come from outside the United States.

Katun is transforming the way “we view ourselves in terms of being Global,” said Singer. “It’s not about developing products in the United States and looking to sell them abroad.

It’s about looking at each of the different markets and understanding what products they really need and what price/quality configuration each market demands.”

Plans to work with other vendors in providing Katun customers with remanufactured cartridges for printers. Singer noted that the partner vendors will have to achieve Katun quality standards, “to make sure we can guarantee quality levels that are the same as what we do on the copier side.”

Singer said Katun’s focus on driving growth is a reflection of the changes taking place in the company. “You can argue, pretty strongly, that Katun got very comfortable in a single industry,” she said, referring to “OEM compatible” products for workgroup monochrome copiers. With all of the changes in the industry “comes a tremendous need to develop agility in your organization. So, one of the big changes at Katun is actually developing that agility.”

During the briefing, Katun officials also emphasized the size of the privately-held company. Robert Barr, vice president of marketing, noted that Katun has 20,000 customers in 173 countries. “We believe that 85 percent of authorized dealers and distributors in the industry use our products,” he said.

Brent Hoskins, executive director of the Business Technology Association and editor of Office Technology can be reached at brent@bta.org. w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 6 | 27

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MARKETING MATTERS

‘C’ Level Marketing How do you reach these senior executives? by: Ian Crockett, Hunter Barth Advertising

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n an article appearing in the July 2006 issue of Office Technology I discussed the apathy that is present at the “C” level when it comes to having an opportunity to save money on office technology products, services and supplies. Since reaching “C” level individuals is considered a priority in a dealership’s print management strategy, this is a problem.

To briefly refresh your memory, the “C” level consists of chief executive officer (CEO), chief financial officer (CFO), chief operations officer (COO) and chief information/technology officer (CIO/CTO). Since the ultimate customer benefit of a print management strategy is to get costs under control and save money over the long term, it requires the attention of someone who cares about total cost of ownership. Presenting this concept to a purchasing agent who fancies himself (or herself) a grinder or someone who shows up at eight and is out of there at five sharp can fall on deaf ears since that individual’s performance is measured by the moment, not by what he has done to help his company over the next three to five years.

How, then, do you get to the “C” level executive and educate him that there is a better way? It’s not easy. “C” level executives usually have at least one gatekeeper, work odd hours and tend to travel more than the average person. And, quite frankly, office expenses are not on their radars.

So, your initial step needs to be getting office expenses on their radars. This calls for mass media advertising — as painful as that may sound. Radio, television, business journal, daily newspaper and direct mail can be effective vehicles for carrying your print management story.

I said in my last article that I favor case studies and testimonials as a way of communicating a “lower overall costs and increase productivity” message. “C” level executives do not like to think someone else is smarter than they are or has oneupped them. I’m not saying you need to embarrass them, but sometimes that is the only way to get their undivided atten28 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 6

tion. Plus, using other “C” level executives in a testimonial format can get them thinking that they are not keeping up with the Joneses.

Radio is an excellent medium for reaching the “C” level executive. Even though many have satellite radio or listen to CDs while in their vehicles, most listen to local morning drive radio to get the local news, weather, traffic and sports. In addition, they are easier to target than a lot of other demographic segments due to their propensity for listening to a news/talk format.

Television is another good medium due to the credibility associated with advertising on television. However, it is more difficult to pin the demographic down so you will probably have to buy CNN, Fox News, Sunday morning news shows and some sports programming. Also, testimonials can be difficult when you place a non-actor in a television commercial, but it can be accomplished.

Business journals and daily newspapers will work since they generally appeal to an older, more educated male demographic. Building frequency with print can be more expensive than broadcast, but you can be very visual and hard hitting in making your point. Business journals may be open to writing a story about how you are pioneering office expense reduction while helping customers use the technology to become more productive. A daily newspaper might also do a story, but only if it is a worthwhile story and not because you are an advertiser in their publication.

Direct mail, if done correctly, can also be an effective vehicle.

I’m not talking about a 5,000 or 10,000 drop of turnkey mailers from your manufacturer. Instead, create a focused effort with a series of mailers, phone calls and, potentially, premiums.

To me, direct mail has come full circle. Nobody receives hand-addressed letters anymore. I know when there is a letter in my inbox that has been hand addressed I get excited. Even if I know it is a sales pitch I’ll open it and read it. That’s not the case with labeled or digitally printed envelopes. A clever

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wall? Look at how salespeople attempt to postcard will also get my attention, but Keep in mind, the contact you, and if a method doesn’t work usually for only five to ten seconds, then it “C” level executive is on you, don’t spend thousands of dollars is “goodbye.” Postcards are a good tease rarely going to call you. using that technique on behalf of your or reminder, but I would not count on sales force. heavy response unless it is an ongoing You need a credible Most dealers have an excellent print campaign with sincere follow-up. brand, backed by an management program that can be highly Get creative in attempting to reach and ongoing attempt beneficial to a majority of their customers. educate “C” level executives. Keep in mind at direct contact.

So far, most have complained that the that you or your salespeople are not the salespeople do not know how to sell it or only ones trying to reach them with the one message you are certain they want to hear. Most of them feel they cannot make any money selling it. My contention is they are not getting to the right person because if they can have seen it all.

One of my favorite stories occurred with a client several figure out a way to capture all the “clicks” in a business, you years ago. This gentleman not only owned a copier dealership, will figure out a way to compensate them appropriately.

Ian Crockett is president of Hunter Barth he also owned restaurants, a golf course and, at one time, a Advertising, Newport Beach, Calif. professional sports franchise. Needless to say, he had some Hunter Barth has helped increase bucks. Financial people had tried all sorts of approaches to get revenues for dealers and manufacturers his attention. One day I showed up and he encouraged me to of office technology for more than come into his office. As it turns out, a local bank had sent him 33 years. Crockett can be reached a remote control car with a note attached that they would at (949) 631-9900. Visit www.hunterbarth.com. deliver the remote if he granted them an appointment. He had and there he was, a grown man, playing with a remote control car in his spacious office.

The universe of “C” level executives is not that large and if Having trouble finding money you can get to them, the payoff can be significant. Therefore, don’t be afraid to offer something of value to get their attenfor your child’s education? tion. Many times, they would prefer something for a staff member or something the staff can share. Helping your “C” level executives look good in the eyes of their subordinates is a very good strategy.

Keep in mind, the “C” level executive is rarely going to call Scholarships for use at colleges or accredited you. You need a credible brand, backed by an ongoing vocational trade schools are available attempt at direct contact. Before or after hours cold calling is to the sons and daughters of BTA retail dealer a tactic some of my clients’ salespeople have used with a great and reseller members and the sons and deal of success. The theory is that the “C” level executives are daughters of their full-time employees. at work before the rest of the staff members get in and/or stay Scholarship recipients are chosen late after everyone else has gone home. Many times they will by an impartial and independent evaluator. not only be still sitting at their desk, but they will be impressed Completed applications must be received at that the salesperson is also working. If that level of respect is BTA by May 1. To obtain a scholarship immediately leveraged, there is an excellent opportunity; the application form, contact Mary Hopkins at rep will get to tell a brief, compelling print management story mary@bta.org or (816) 303-4031 or write or get an appointment later. Worst case, the “C” level executo: BTA Scholarship Foundation, 12411 tive will direct you to the appropriate person in his organizaWornall Road, Kansas City, MO 64145. tion and will “grease the skids.”

Most of you are considered “C” level executives. So, when you put on your marketing cap, think about how someone would get to you. Is it a handwritten envelope, an after-hours cold call, a remote control car or something totally off-the-

BTA Can Help.

®

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Do you crunch the numbers, or do the numbers crunch you? and projecting service revenues to inventory management and an action plan for implementation — with the shortterm goal of achieving a minimum of 14% operating income. You can achieve these results by monitoring 24 key benchmarks and making strategic shifts as discussed in the program.

Start planning for improved profitability today! Send all of your strategic decision makers to ProFinance — it’s an investment in your company that will help you relieve the end-of-the-month crunch.

To register for ProFinance or to get more information on pricing and quantity discounts, call BTA at (800) 843-5059.

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he BTA ProFinance workshop will teach you how to set the strategy, track critical performance measures and manage your assets according to a proven business model designed to improve the profitability of your company.

Instructors John Hanson and John Hey of Strategic Business Associates take a holistic approach to the redirection of your business — from sales rep compensation

Upcoming ProFinance course: Jan. 24-25, Dallas, TX BTA is now offering dealer members $250 discount coupons towards ProFinance. For details, e-mail info@bta.org.

ProFinance is designed for owners and executive-level staff who make the critical business decisions that impact your company’s success. Many OEMs reimburse for ProFinance tuition through advertising co-op or professional development funds. Check with your OEM to be sure.

ADVERTISER INDEX Ames Supply Company (800) 323-3856 / (630) 964-2440 / www.amessupply.com

19

ITEX ’07 (800) 989-6077 / www.itexshow.com

Business Products Council Association (800) 897-0250 / www.businessproductscouncil.org

31

Media Sciences (201) 677-9311 / www.mediasciences.com

11

Duplo U.S.A. Corp.

(800) 255-1933 / (949) 752-8222 / www.duplousa.com

15

Niche Equipment (877) 446-4243 / www.nichee.net

13

2, 3

9

Print Audit (877) 412-8348 / (403) 685-4932 / www.printaudit.com

5

GreatAmerica Leasing Corp.

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

32

Toshiba America Business Solutions Inc. (949) 462-6165 / www.copiers.toshiba.com

7

InkCycle (800) 736-8877 / www.inkcycle.com

17

FMAudit LLC (573) 632-2461 / www.fmaudit.com

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RETURN SERVICE REQUESTED Office Technology Magazine Business Technology Association 12411 Wornall Road Kansas City, MO 64145 (816) 941-3100 www.officetechnologymag.com www.bta.org

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