December 2014 Office Technology by Business Technology Association

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CONTENTS Volume 21 • No. 6

FEATURE ARTICLES 10

2015 Industry Forecast Manufacturers look to the year ahead

P R I N C I PA L I S S U E S LEAD 2014 Toshiba hosts end-user conference in Dallas, Texas

by Brent Hoskins Office Technology Magazine

Compiled by Brent Hoskins Office Technology Magazine

What will be the greatest opportunities in the new year? To find the answers, Office Technology magazine asked 11 MFP and printer manufacturers to share their expectations for 2015. 10 n Canon U.S.A. 20 n Ricoh 12 n Konica Minolta 20 n Samsung 14 n KYOCERA 22 n Sharp 14 n Lexmark 24 n Toshiba 16 n Muratec 26 n Xerox 18 n OKI Data

Fall Colors Retreat BTA Southeast event held in Asheville, N.C.

Toshiba America Business Solutions Inc. (TABS) held its LEAD 2014 End-User Conference Nov. 10-12 in Dallas, Texas.

ECi Connect Conference Event focused on education & software updates

by Elizabeth Marvel Office Technology Magazine

ECi Software Solutions hosted its annual ECi Connect Conference Nov. 10-12 at The Mirage Hotel and Casino in Las Vegas, Nev.

Energy Costs Lower them through technology & simple practices

by Brent Hoskins Office Technology Magazine

BTA Southeast’s annual Fall Colors Retreat was held Oct. 24-25 in Asheville, N.C. The event had an educational focus on managed IT services and gave attendees the opportunity to engage in round-table discussions with exhibitors.

COURTS & CAPITOLS 30

Computer Professionals Are they exempt from the Fair Labor Standards Act?

by Dave Perrotta ESP/SurgeX

In today’s office environment, modifying energy management practices offers major growth opportunities.

SELLING SOLUTIONS Be Prepared The Boy Scout motto is one worth repeating

by Troy Harrison SalesForce Solutions

by Robert C. Goldberg BTA General Counsel

While most MFP technicians qualify for overtime compensation, there is a specific exemption for computer professionals.

P R I N C I PA L I S S U E S 33

Executive Connection Summit Event hosted by Technology United companies by Brent Hoskins Office Technology Magazine

Technology United, a group of companies committed to driving innovation, hosted Executive Connection Summit 2014 on Oct. 27-30 in Scottsdale, Ariz.

So many sales are lost not because the customer does not want to buy, but because the salesperson is not prepared to sell.

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

• BTA Calendar • BTA Highlights

Executive Director’s Page

BTA President’s Message

Advertiser Index

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EXECUTIVE DIRECTOR’S PAGE

Manufacturers Share Guidance & Insight

s each year winds down, we always look to the year ahead with a sense of hope and expectation. There is just something inherent to the pending new start that compels us to look into the future and consider how we can make next year better than this year. What new opportunities lie in store? Should I be doing things differently? Where am I headed? When I became editor of what is now Office Technology magazine in 1989, there was an established, annual tradition in place to ask representatives of the industry’s manufacturers to share their expectations for the approaching new year. Their forecasts are printed in the magazine with the hope of providing dealers a resource that will help guide them as they, too, look to the year ahead. The tradition continues. Our 2015 Industry Forecast feature begins on page 10. This year there are 11 participants. I am grateful to all of them for their willingness to submit forecasts; they are busy people. Certainly, the nature of the annual Industry Forecast feature has changed considerably since 1989. Forecasts regarding the opportunities in selling typewriters and calculators faded away long ago. However, I noticed that this year’s forecasts are somewhat different than those from only a few years ago. For example, in the 6,000plus words of this feature, the word “copier” appears just twice. The sparse use of the word “copier” got me wondering. Which of the common words/ terms in our industry today appear most often in the Industry Forecast feature? I did a “word find” on my PC. Here are the results: variations of the word “print” appear 60 times; “solutions” appears 51 times;

“MFP” appears 17 times; “cloud” appears 10 times; and “mobile” or “mobility” appear 11 times. There are no earth-shattering revelations here; just a confirmation that “print” is still very much a part of the industry dialog; “MFP” and “solutions” have essentially supplanted our use of the word “copier”; and we are seeing an increasing focus on new opportunities, such as the “cloud” and “mobility.” While I was counting, I checked the words “dealer” and “dealership.” Together, they appear 153 times. That is good, given that a primary purpose for requesting Industry Forecast submissions from the manufacturers is to capture their guidance and insight for the dealer community. They came through for us. In fact, there are plenty of messages for dealers. Here are a few examples: n “If anything, the traditional business model is a thing of the past. The traditional sales funnel is no longer relevant.” n “To succeed in the coming years, dealers have to keep in step with client needs — and be ready to offer a total document solution that meets all challenges.” n “In 2015, dealers will need to think about and be ready to help customers manage their content in any form — not just the printed page.” n “For BTA dealerships to grow in the future, they need to purchase dealerships, expand into new geographical markets or add new services.” n “Dealers who apply social marketing strategies in tandem with new technology and media will be able to better leverage their brands.” There is plenty more guidance and insight within the Industry Forecast feature. I encourage you to take the time to read all 11 submissions. There is value in knowing what the industry’s leading manufacturers expect in the year ahead. n — Brent Hoskins

Executive Director/BTA Editor/Office Technology Brent Hoskins brent@bta.org (816) 303-4040 Associate Editor Elizabeth Marvel elizabeth@bta.org (816) 303-4060 Contributing Writers Robert C. Goldberg, General Counsel Business Technology Association Troy Harrison, SalesForce Solutions www.troyharrison.com Dave Perrotta, ESP/SurgeX www.espei.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: Bigstockphoto. Cover created by Bruce Quade, Brand X Studio. ©2014 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 2014-2015 Board of Directors

District Events Set; Mark Your Calendar

ere you among the registrants at any of the Business Technology Association’s 2014 district events? If not, you missed out on some great opportunities to receive guidance and insight that would have helped you take your dealership to the next level. At each of these events, office technology dealers learned from a number of industry leaders in a range of educational sessions. They also enjoyed networking with their fellow dealers. Since 2008, the association has been hosting events under our current, wellreceived format. That is, at each event, the agenda includes educational sessions and extended breaks with exhibitors — all in the same room. As a result, dealers and exhibitors have many opportunities to interact in a setting that is like no other in the industry. These are not events held in cavernous convention centers. Instead, they are smaller in nature, providing for a very welcoming, friendly and relaxing experience for all who attend. We also make sure the agenda includes some time for fun, whether it is a visit to a Disney theme park or an enjoyable evening at a Las Vegas show, Major League Baseball game or on a dinner cruise. All of our district events are planned and hosted by volunteer dealer members and, so, are specifically designed for the BTA Channel. I encourage you to mark your calendar today for the 2015 BTA district event — or events — that make sense for you. Here are the dates and locations: n March 20-21, BTA Southeast’s Winter Break, Disney’s Grand Floridian Resort & Spa, Orlando, Fla. n May 7-8, BTA Mid-America’s Cruise to Success, Radisson Blu Mall of America,

Minneapolis, Minn. n Aug. 6-7, BTA West’s Capture the Magic, The Venetian, Las Vegas, Nev. n Sept. 24-25, BTA East’s Grand Slam, Boston Marriott Copley Place, Boston, Mass. n Oct. 23-24, BTA Southeast’s Fall Colors Retreat, Doubletree by Hilton AshevilleBiltmore, Asheville, N.C. Comments we received from attendees at 2014 BTA district events reveal the quality you can expect in 2015: n “I really enjoyed Winter Break. I met some great people and learned some wonderful things to grow my business.” — Earl Philpot, Precision Duplicating Solutions, London, Ky. n “As always, an excellent event! Great education and networking. The amount of information was awesome and there were many take-aways for us as owners.” — Cathy Dimon, Northern Business Systems, Fairbanks, Alaska n “The event gave me the opportunity to learn ideas that will help me become a more efficient manager.” — Steve Fontaine, BASE Technologies, Bethel, Conn. n “Grand Slam was well thought out and it showed. The speakers and vendors are to be congratulated for a job well done.” — Richard Fryman, ABS Business Products Inc., Cincinnati, Ohio n “Great information and vendors; a wonderful event for sharing ideas and learning.” — Rebecca Davis, Metro Business Systems, Forestville, Md. While we continue to work on details for most of the 2015 BTA district events, everything is set for BTA Southeast’s Winter Break event. The agenda includes nine educational sessions and time to visit with 25-plus exhibiting vendors. For details, see the ad on pages two and three or visit www.bta.org/BTA SoutheastEvent. I hope to see you there. n — Ron Hulett

President Ron Hulett U.S. Business Systems Inc. 3221 Southview Drive Elkhart, IN 46514 ron.hulett@usbus.com President-Elect Dave Quint Advanced Systems Inc. 2945 Airport Blvd. P.O. Box 57 Waterloo, IA 50704 dquint@asiowa.com Vice President Rob Richardson Allied Document Solutions & Services Inc. 200 Church St. Swedesboro, NJ 08085 robr@ads-s.com BTA East Mike Boyle BASE Technologies Inc. 23 Francis Clarke Circle, Ste. 1B Bethel, CT 06801 mboyle@baseinc.com BTA Mid-America Dan Castaneda International Copy Machine Center 1515 Lee Trevino, Ste. EE El Paso, TX 79936 dan@icmc-elp.com BTA Southeast Gerry Purvis Purvis Business Machines Inc. 4505 Highway 39 N. Meridian, MS 39301 gerry.purvis@gopurvis.com BTA West Mike Ehlers Yost Business Systems 685 E. Anderson Idaho Falls, ID 83401 mike@yostonline.com Immediate Past President Todd J. Fitzsimons Automated Business Solutions DBA Network Imaging 277 Captain Lewis Drive Southington, CT 06489 tjfitzsimons@ni-ct.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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2015 Industry Forecast Manufacturers look to the year ahead Compiled by: Brent Hoskins, Office Technology Magazine

hat will be the greatest opportunities in the new year? To find the answers, Office Technology magazine asked 11 MFP and printer manufacturers to share their expectations for 2015. Perhaps the insight shared will help you better position your dealership for a new level of success. Each of the contributors was asked to address the following questions in essay form: What do you believe will be the greatest market and product opportunities for dealers in 2015? What are the best sales and marketing strategies for dealerships in pursuing these opportunities? What will be the most significant challenges dealers will face in 2015 and how can they best address them? What notable changes in demand/needs/expectations do you anticipate from end users in 2015? What do you see as the characteristics of the office technology dealership that is best positioned for success in 2015? Following are their responses. Canon U.S.A. Inc. Dennis Amorosano, Vice President & General Manager, Business Imaging Solutions Group As 2014 draws to a close, at Canon, we reflect and frame the conditions in the current marketplace to determine growth opportunities in the year to come. We know that customers’ business decisions drive the trends in our industry, which will ultimately set the market landscape in 2015. Therefore, it is imperative that we evaluate our solutions and offer customers creative options that will enhance their productivity, reduce operating costs and grow their businesses. When you look at the overall marketplace, there are four

major trends affecting information and communications technology, including cloud, social, mobile and big data. These trends should guide dealers with respect to the technologies and solutions that reside in their portfolios and the capabilities needed for the implementation, sales and services related to those technologies. As companies continue to educate themselves on the tremendous benefits of cloud and mobile printing solutions, the demand for solutions that provide this flexibility will increase. Today, to remain competitive, dealers will have to invest in these technologies and offer extended functionality to better monitor, control and account for print usage and overall information management in order to sustain a successful business model. While Canon does not see wholesale changes in the market landscape heading into 2015, we do expect to both lead and experience a continued transition from a hardware-centric business model to one that is characterized by the delivery of solutions and services. As this transition continues, hardware remains important; however, we anticipate much greater focus by customers with respect to using hardware as a component within a more comprehensive solution designed to enhance traditional business workflow. As the market transition continues, electronic content management plays a more critical role in how businesses streamline processes and collaborate. It is important for dealerships to position themselves with the technology tools and delivery capabilities needed to assist customers in addressing their challenges and pain points, which exist within most businesses today, especially in regard to document workflow, print and content management. Dealerships that are able to offer comprehensive portfolios,

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including on-premise and cloud-based we can execute on their behalf. In addition to customeroptions, combined with the expertise The greatest market and product to effectively consult with customers opportunities will come from a holisfacing solutions/ in identifying their needs, will position tic approach to doing business. While services offerings and themselves for continued success. we are still in the hardware business, organizational delivery In addition to customer-facing soluwe must look at our devices, from the capabilities, another tions/services offerings and organizationMFP to the production printer, as one critical area for dealers al delivery capabilities, another critical part of a larger product portfolio and area for dealers to focus on is operations. continue to grow in a less-print directo focus on is operations. Today’s office technology business is tion. To that end, integration is key. highly complex and more competitive Dealers must look to provide not only than ever. Driving competitive advantage requires not only printers, but also the solutions and services that build off a strong focus on customer-facing activities, but also the of these devices. operational excellence needed to support these initiatives. Our business is expanding to adjacencies that fit our In much the same way we as an industry are advocating that high-value service model, including all processes around end customers pay close attention to workflow, we need to the document, from print to scan to storage. Print optimizado the same in our own operations. tion is vital to not only handle the volume of documentation What better place to start then to ensure that we as orga- facing customers today, but also the security and storage nizations — both manufacturer and dealer — have tightly needs of the day-to-day process of doing business. Solutions integrated IT systems and are using today’s remote man- must include encryption capabilities for vertical industries agement technologies to improve customer service while including health care and legal, and they must offer security at the same time lessening costs for service delivery. These in the cloud and at the MFP. They must offer file-sharing and actions are not only best practices capable of improving our mobile strategies because businesses are no longer bricks business economics, but are true examples we can share and mortar. Business is executed around the clock from airwith end customers showing ways in which we can improve ports and coffee shops, home offices and hotel rooms. Solutheir businesses given our own experience. tions that help customers transact business wherever they The market outlook for 2015 remains positive. While it is are, whenever they need, are the solutions that will grow challenging to predict the impact of political and economic dealer business. influences on our industry, the steady evolution toward soThe overarching theme is content management — manlution and services business models is what Canon believes agement of print services and management of content to to be a recipe for sustainable success. make workflow easier, all supported by IT services that provide infrastructure service and support. Konica Minolta Business The sheer volume of data being produced and shared evSolutions U.S.A. Inc. ery day will require IT service options. This is the third pilKevin Kern, Senior Vice President, lar of innovative selling, along with hardware and solutions. Marketing Dealers who can offer these three, from the devices to the Technology is evolving at such a solutions that augment them and the service that supports rapid pace and companies, including the process, have the upper hand in delivering a complete dealerships, need to embrace that package of tools that enable customers to run their busievolution and get on board with it. nesses efficiently. The dealerships that are savvy The bottom line is dealers must listen to their customenough to understand their customers’ business needs and ers’ individual needs and tailor their offerings to solve spesell to those needs will be the dealerships that grow and cific problems. One-size-fits-all is no longer an option. Each prosper. Gone are the days when we can cling to our previ- business has unique needs, pain points and goals. The dealous business models. If anything, the traditional business erships that ask the questions that get to the heart of each model is a thing of the past. The traditional sales funnel customer’s requirements are the dealerships that will grow is no longer relevant. With the abundance of information and flourish. It is all about finding the specific ways to solve available through a variety of media, it is difficult, at best, to individual business problems. manage the sales process. Instead, we have to nurture our At Konica Minolta, we are committed to listening to customers and relationships, and be ready to provide infor- each customer and designing a specific product portfomation relevant to their businesses and demonstrate how lio that not only addresses the needs right now, but also 12 | w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 4

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the needs in the future. To that end, we believe that products must be scalable and innovative, just as business is. We look forward to supporting our valued dealer partners not only in 2015, but also in years to come as we build the future of disruptive technology.

services (MCS) will steal the spotlight. As MCS increases in importance, customers will want to capture every document that flows through their enterprises — which means that dealers offering TDS will be well positioned in the marketplace. So even though no one knows exactly what the future holds, we do know that dealers need to be ready to meet their clients’ changing concerns and focal points. As we have seen over the past two years, the results will be well worth it. At Kyocera, we are doing the same. We continue to offer our dealers a balanced portfolio of color and monochrome A3 and A4 document imaging devices, along with a comprehensive range of customized business applications. Plus, we are investing in our infrastructure and refining our offerings as new challenges arise. We have a software solutions group that develops business applications and helps dealers customize apps for specific workflow environments, business application consultants who work with dealers to spot presale opportunities and help assess challenges and design solutions, and solution sales instructors who educate dealers on putting TDS into practice. Equally important, we have regional technical specialists who help dealers implement and manage the clients’ total solutions — thereby deepening the relationship between the two and enabling customers to grow their systems along with their businesses. To succeed in the coming years, dealers have to keep in step with client needs — and be ready to offer a total document solution that meets all challenges. Together we have made great strides in 2014 and look forward to continued success in 2015 and beyond.

As MCS [managed content services] increases in importance, customers will want to capture every document that flows through their enterprises ...

KYOCERA Document Solutions America Inc. Danielle Wolowitz, Senior Director, Product Planning & Product Marketing On behalf of KYOCERA Document Solutions America, I want to thank our dealers for the effort they have put into bringing Kyocera’s Total Document Solutions (TDS) to their customers — and acknowledge the success they have had in the marketplace. At Kyocera, we pride ourselves on being a dealer-centric organization; our mission is to provide our dealers with the tools and support they need to grow their businesses. To that end, we measure our progress by their achievements. Across the board, our dealers have made impressive strides in the market — and have forged deeper relationships with their customers — by employing a Kyocera Total Document Solutions approach when addressing client issues. This kind of success proves that TDS is here to stay — and will continue to carry dealers and their customers into a successful future. Also, dealer feedback has uncovered a number of TDS benefits that challenge popular assumptions. First, TDS engagements are easier to close than box sales because they address and solve customer challenges quickly. Also, total document solutions are flexible — they can include hardware, software, service or any combination thereof. The exact formula is determined by assessing the details surrounding the client’s workflow, including its finances, devices, consumables, document management practices and environmental considerations. Looking forward, dealers should keep putting this partnership mentality into practice. They should also advance their offerings as the market evolves. This does not require starting from scratch, but it does mean investing in people and, if necessary, reorganizing existing infrastructure. The idea is to keep up with changing needs. Remember two years ago when a client’s primary concerns were cost control and security? Now customers are also addressing other issues, like mobile and cloud computing. What is coming next? Many major analysts predict that managed content

Lexmark International Inc. Phil Boatman, Business Alliance Manager Thinking about the greatest market and product opportunities for dealers in the coming year, a theme from notable dealer shows in 2014 still resonates: Providing workflow solutions for customers. To be the best at providing workflow solutions for their customers, dealers will need to be intimate with their customers’ problems, as well as be able to customize solutions to fit each customer’s needs. Lexmark knows how important customization is, as we have a long history in developing solutions by vertical industries. One might say it is in our DNA. In addition, managed services will continue to be a hot topic in 2015. Whether dealers are looking to outsource, create their

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own services or acquire IT services comMuratec In 2015, dealers will panies, all will face the same challenge. America Inc. Each dealer will have the need to acquire Jim D’Emidio, need to think about new resources, evolve training and build President and be ready to help expertise for this new business model. It is no secret customers manage In 2015, dealers will need to think that dealerships their content in any about and be ready to help customers that take a consulform — not just the manage their content in any form — not tative, customerjust the printed page. centric approach printed page. As such, workflow solutions offer to account solicitation, recruitment great opportunities but also bring new and maintenance will be well posichallenges. To deliver for customers, dealers will need to tioned for growth again in 2015. These are the dealerships hold their manufacturer partners accountable for the spe- that go beyond basic box moving and have incorporated cific knowledge transfer that establishes them as vertical document management, managed print services, managed subject-matter experts. IT services, document workflow consultation and business In addition to the challenges of accommodating a more process enhancements into their toolkits. Evolving to this tailored approach for customers, dealers must continue to level of service provider has no doubt required investment, find and excavate growth areas, especially given the recent business transformation and, typically, a lot of pain and decline in pages and traditional unit sales. Some may look at lessons learned. this decline as their biggest challenge, but dealers who apBut the dealerships that have made this transition are proach it as their greatest opportunity will win. typically experiencing increased account retention, less Dealers need to go deep and wide with their customers. competition, higher net margins and have increased the Integrating managed services into their business models, overall value of their companies. So, what is next for these along with vertical market selling, will allow dealers to be dealerships? The customer account manager, who has bewell positioned to carve paths to new revenue opportunities. come the trusted advisor or quarterback within the cusAs the volume of available data continues to grow, end tomer, is tasked with uncovering additional pain points or users need help mining that data to quickly get to what is potential business challenges that will lead to new solutions relevant to move their businesses forward and more effi- and revenue generation. ciently manage their information — in any form. They will The answer to this question might still be in print. Yes, expect their dealers to help. print. However, not so much on the office printing side. HR departments, for example, have to manage a variety Market research, as well as consumable sales trends, show of formats when hiring a new employee — résumés, pay- that office document printing is flat to declining. We will roll records, I-9 compliance, video interviews, etc. Dealers not argue that, in some cases, dealer clicks are increasing, should be prepared to help make the content relevant and however, we attribute that to a combination of successful easier for users to digest. managed print services programs, account development/ The days when users only expected to print from their acquisition and aftermarket supply programs. devices are long gone. Smart MFPs are pivotal to satisfyThe opportunity that the account quarterback needs to ing knowledge-worker needs and helping end users manage uncover is the “high-value” print. This concept is not nectheir businesses more efficiently. essarily new — many dealerships have gone after high-valDealers should take advantage of their unique posi- ue prints by offering production printing and wide-format tion to service small and mid-sized businesses. They are solutions for years. It is the emerging high-value prints typically located in the same community and can respond that are being offered by industrial label printing and 3D quickly to customer needs. Those that leverage these printing that could add significant value to a dealership’s strong local relationships and continue to adapt will be bottom line. miles ahead of the competition. We have spoken with many dealers who have dipped Dealers should strive to build an agile sales team that is their toes into the emerging world of 3D printing. The buzz hungry for knowledge about the vertical and managed services around 3D printing is growing as businesses and consumbusinesses, as well as the customer’s business. Sales reps must ers look to how the technology can be applied to their inlook beyond traditional box sales. The right vendor will provide dividual needs. The reality for businesses is that soon they the dealer with ample training tools and resources, building will be able to go from whiteboard-to-whitebox in a matexpertise in specific industries, as well as managed services. ter of weeks instead of months. BTA dealers will play an 16 | w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 4

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integral role in this revolution as the adapting to the changes in technology. need for business-class/industrial 3D This upcoming year is also a time of For BTA dealerships printers grows. incredible growth potential for our into grow in the Another emerging market that offers dustry and channel partners. Keeping future, they need to high-value printing — and one that Muup with the latest in technology trends, purchase dealerships, ratec will dedicate significant focus on end users are pushing for printer-based, expand into new in 2015 — is the industrial color label multifunction devices with embedded printing market. Certainly, label printsolutions that offer features and funcgeographical markets ing is not new, however, a new breed of tionality at parity with traditional copior add new services. label printers is emerging that brings ers. As a result, it is critical for manuhigh-end, professionally finished labels facturers and dealerships to continue to the short-run market. There is a fundamental shift hap- to seek alternative ways to remain relevant and provide the pening in the color label printing market. End users tradi- solutions and services that are essential to end users. tionally purchased labels from their local label converter. To ensure a prosperous 2015, dealers should consider the However, with the availability of short-run, affordable following marketing and sales strategies. Acquiring and ofcolor label printers, end users will look to the possibility fering new technologies, solutions or services in areas like of bringing this in-house (with a little educated selling by networking, cloud services or security will help differentithe dealer). ate your business from competitors. Secondly, dealers willToday, companies that outsource label production are ing to adapt to the new era of advanced technologies should paying a premium for the finished product. This often adds leverage an open architecture platform along with embedsignificant cost to production and can affect competitive- ded solutions and applications. Lastly, dealers should atness in the marketplace. Dealers are well positioned to work tend training sessions conducted by vendors in order to with their customers to provide in-house label printing so- be prepared to provide technical assistance to end users. lutions that enable short-run commitments, instant modifi- Since customers expect to resolve issues with dealers and cations and full finishing (lamination, die-cutting, spooling not vendors, maintaining close relationships with your venand separation). For the dealership, it represents net new dors is important because it can increase customer service hardware, service contracts, high-value clicks (at signifi- response times and ultimately resolve issues more quickly cant margin) and the ability to become truly integrated into once the products are sold. the customer’s actual line of business, thus becoming alBeing aware and adapting to the tremendous opportumost irreplaceable. This transition almost mimics the shift nities that are available to dealers in the upcoming year is away from analog devices more than a decade ago. Consum- pertinent. However, these new opportunities can bring sigers moved away from the expensive Heidelberg presses to nificant challenges, one of which is increasing profitability. affordable, high-speed digital color devices. The best way dealers can overcome this challenge is by idenFor BTA dealerships to grow in the future, they need to tifying new revenue opportunities such as new software or purchase dealerships, expand into new geographical mar- solution services, and being willing to change and evolve to kets or add new services. The color label printing market al- position their dealerships for success. lows dealers to expand into a profitable niche market withHowever, success is not solely in the hands of the dealout affecting current MFP placements. ers. We, as manufacturers, also need to be willing to adapt to the changes in order to develop and provide dealers OKI Data Americas with the most advanced products and solutions. Because Carl Taylor, Vice President of technology continues to advance at a rapid pace, cusMarketing tomer expectations are higher than ever before. Because Taking a look into 2015, OKI proj- dealers are positioned as trusted advisors, providing the ects another positive year for the latest and greatest solutions is essential to the success of dealer community. A key to this com- their dealerships. End users expect both manufacturers munity’s success will be the overall and dealers to better understand their total, unique busiwillingness to adapt and evolve with ness needs — from IT networks to data management and the advancements in technology. security through help-desk and back-end services. This reThose who do not evolve and embrace change will likely quires dealers to make new investments or to partner with not succeed. Ultimately, 2015 is the year when most dealers complementary vendors to add to their existing portfolios will be faced with climbing out of their comfort zones and of offerings. 18 | w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 4

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As in 2014, OKI Data Americas continues to see great opportunity for dealers in 2015, particularly for those whose business models can easily adapt to evolving technologies, challenge the existing norms and maintain the right mix of in-house expertise. Through it all, it has always been our goal to be the dealer’s “VIP partner” — one that delivers innovative and relevant hardware, solutions, services and support for many years to come.

50-to-75-percent decided on a purchase before having his (or her) first conversation with a salesperson, according to CEB Research. Unlike decades ago, a buyer of anything can learn all about a product online. They will find offers, specs, prices, reviews, references and analyst reports. If you want, say, a workgroup MFP these days, it is easy enough to order one online. The upshot for dealers? You have to get in front of prospects well before they are ready to see you for a sales conversation. You have to be in front of them when they are doing all that early Internet research into the products you and your competitors sell. And that means — you guessed it — you have to learn and master social media. Have a blog. Create a Facebook presence. Tweet. Take pictures and post them on Instagram. Build out your company’s LinkedIn profile. Do not worry; it is not that difficult. Then again, it is not that easy either. But like I said earlier, growing existing customers is great and typically easier (and less expensive) than getting new ones. So the most important thing you can do is nurture the customers you have, earn (and re-earn) their trust and spotlight their opportunities to grow. If you do, you will be first in line to sell them solutions to capitalize on those opportunities. That is because customers really do want a one-stop shop with a company they can believe in. And yours can be that business. You just need to be a little bit flexible. Do you really have a choice?

You have to get in front of prospects well before they are ready to see you for a sales conversation ... And that means ... you have to learn and master social media.

Ricoh Americas Corp. Jim Coriddi, Vice President, Dealer Division How flexible are you? If you are a dealer who is willing to grow and change, there is enormous opportunity for you and your dealership in 2015. Production color printing, for example, is a hot technology area as more organizations bring production color in-house and more print-for-pay companies tap the digital market. Customers of all kinds want to print on a wider variety of stocks and textures, including colored backgrounds. So if you are selling five-color production printers (adding clear and white), you are ahead of your competitors. A color production printer is a high-end sale to begin with and it comes with a considerable services aftermarket. In fact, services of all kinds are an area of growth for office technology dealers. Services can supplement traditional office equipment or boldly expand into entirely new areas of information mobility. Customers are looking for color management, IT infrastructure, enterprise applications, document services like back-file scanning and more. Overhauling your business model is a challenge, but it is easier to sell services like these to your existing customer base than to go out and find new equipment customers. There are two ways to change your business model from equipment-focused to services-led. One is creating new lines of business from the ground up, hiring experienced staff and building new office space for them to live in. The other is partnering for your services. When you (the dealer) partner, you do the selling because you know the customer best and partners you trust deliver the services. We at Ricoh are working hard to be a great partner to our dealers in this way. Speaking of selling, the nature of that endeavor is changing dramatically. The typical customer today is between

Samsung Electronics America Inc. Peter Richardson, Director of Printer Marketing, Enterprise Business Division We see opportunity in the modern BTA dealership in bringing traditional print, copy and document technology together with adjacent and emerging IT technology. This means ensuring technologies such as those in mobility and print work together seamlessly. Vertical markets provide a great opportunity for dealers. There are many different industries, such as health care and education, which offer significant opportunities for growth. Furthermore, looking at how interoperability can be established and implemented within new vertical markets enables dealers to better meet the needs of each customer, whether it is related to workflow or application.

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For example, a dealer who has a strong The smart MFP serves as the docuTracing back to K-12 customer base and needs to incorment and information hub for an office. porate technology into the classroom Business professionals can search the expanded markets, while also catering to the growing bringWeb, share or preview documents from dealers need to your-own-device (BYOD) initiative will Google Drive, Evernote or Box.com as either partner to provide need to determine mobile capabilities examples, without necessarily having added services, or invest and interoperability between the techto print anything. This also applies to in the technology and nology in the classroom and at home. education and health care, in addition In health care, technology is becoming to traditional “office” businesses. By talent themselves. more and more prevalent in everyday getting ahead of this trend, dealers will management, making interoperability be able to gain a large share of the marcrucial. Whether administration is inputting paperwork ket, with Samsung helping to fill any gaps dealers might not or recalling records, or a physician is performing an ultra- be able to fulfill on their own in terms of technology. sound where data will be sent electronically, every piece of A dealership that is not prepared to go vertical or broad technology, hardware and software must be compatible and may want to consider going deep in an adjacent technolwork together. ogy it has already served. For example, a dealership that Both internal and external strategies are important for has a large customer base in K-12 should perhaps look at sales and marketing, especially those involving social com- Samsung School, which combines print with Chromeponents. Dealers who apply social marketing strategies in books, Galaxy Tablets or large-format display solutions tandem with new technology and media will be able to bet- (RMC is an example). A dealership may have penetration ter leverage their brands. In doing so, they will reach new into hospitality or retail; in that case, it should align with audiences through the community and their existing cus- technology that is “sticky” in a space where it already has tomer base, ultimately driving more opportunity. relationships, experience and, most importantly, customDealers looking for opportunities for growth can look ers (digital signage, etc.). at vertical businesses and adjacent markets to expand. It can be a challenge for dealers to compete without looking Sharp Imaging and for these types of growth opportunities, which may help Information Company future success. of America Many other manufacturers in the copy, print and IT busiMike Marusic, Senior Vice President, nesses have resources in direct sales that compete against Marketing & Business Solutions Group independent dealers (the BTA Channel) who represent them As Sharp Electronics enters 2015, every day in the end market. Samsung is different in that we we reflect on a year of accomplishfoster many end-user relationships in partnership with our ments and look ahead to a year full dealers; often Samsung introduces dealers to new customof opportunities. We will continue to ers just as dealers introduce new customers to Samsung. build on the momentum of new product introductions and Tracing back to expanded markets, dealers need to ei- expand the reach of those products for our dealer communither partner to provide added services, or invest in the ty. Further, we will continue to lead in developing new ways technology and talent themselves. They need to be able to for our dealers to succeed in a changing industry. stand against the larger resellers, while also remaining agile While the business continues to make significant transienough to scale depending on the customers’ needs. Dealers tions, this is nothing new for our industry. When copiers bewho can adjust to market and customer needs, while also came digital in the 1990s, the inevitable collision with the IT embracing technology, will be ahead of the game. industry was already set on its path. Today, we see managed In 2015, not only will mobile printing continue to grow, network services as the next big opportunity for dealers. As but smart printing will be heavily integrated into the work- manufacturers, we all want to help our dealers make that place. To drive productivity in today’s mobile-dominant transition and help grow their businesses. The challenge is business world, you need printing solutions that are flex- how to do it. ible, cost-efficient, easy to use and securely connected. A Now is the time for manufacturers to evaluate their insmart platform enables a team to easily share, scan, copy, frastructures and practices so they can make necessary save and print from any mobile device with no PC or server business modifications. This next transition will require connection, providing the flexibility and adaptability to fit significant investments from the dealer, which is especially a company’s BYOD strategy. challenging for smaller dealerships. For Sharp, we want to 22 | w w w. o f f ic et ec hno lo gy m a g.c om | De c e m b e r 2 0 1 4

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help our dealers make those investsales success in 2014. Not only have we Additionally, it will be ments. To help accomplish this, we are experienced an uptick in the sales of our well into our own process of transforme-STUDIO color MFPs, but we have also imperative for dealers ing our business in order to better supseen particular expansion — 22 percent to continue to offer port our dealers. year-over-year growth — within our solutions that address Two years ago, we introduced PromoMPS programs, as well as significant customer pain points tional Plus Pricing to help facilitate the demand for our A4 MFPs. and deliver on their transition for dealers. This program alThis success is greatly due to the lows our dealers to access the best “Deal” continuous input we receive from our business objectives. pricing every day, without the requirechannel partners. Aside from seeking ment to load their inventories, thus proa print fleet that falls within the paviding increased cash flow and creating the ability to reinvest rameters of their IT budgets, we clearly understand end in their businesses. Dealerships are able to offer customers users equally desire products allowing them to better sethe products they want, not just what is in stock. Since im- cure content, print from anywhere in the office and operplementing the program, we are seeing an overwhelmingly ate in a more sustainable manner. As a result of Toshiba positive impact, and we enter 2015 with two straight years of innovation, we enable our customers to accomplish all of increases in the number of “Sharp-only” dealerships. these objectives. One of the most notable examples is the eDuring this pivotal time, we have teamed up with Tech STUDIO306LP + RD30. This groundbreaking product is the Data to provide our dealers with a world-class product first MFP to incorporate erasable toner, enabling output to lineup and fulfilment. Our dealers can take advantage of be erased and reused multiple times. Not only does this reTech Data’s streamlined operations and have access to duce costs for the end users, but it minimizes their impact a broader line of products so they can provide complete on the environment. solutions to their customers. This is a unique position for Another need we focused on was to improve technical Sharp dealers, who will be able to not only purchase their support for both dealers and customers. We delivered by Sharp products, but also their IT products, on one pur- introducing Toshiba e-BRIDGE CloudConnect. This revoluchase order. The full value of this is realized in the man- tionary application improves the user experience by allowaged services space, where Sharp dealers can effectively ing for remote management of e-STUDIO products. Gathkeep IT resellers out of their accounts by providing the full ering valuable data from the devices, dealers are given an gamut of MFP and IT product needs with one supplier. Our in-depth understanding of performance via the cloud. Realrelationship with Tech Data makes this an easier process time technical alerts allow for proactive troubleshooting, for the dealer. as well as secure performance of device operations such as Our main goal over the next year is to continue fulfilling meter reads and firmware updates. A win-win for both the our promise to our dealers by providing best-in-class prod- dealer and the customer, e-BRIDGE CloudConnect increasucts, support and logistics, furthering our goal to become es device uptime and customer satisfaction while decreasan “irresistible partner.” At the same time, we are prepar- ing dealer labor costs and time in the field. ing for the future by maximizing our investments in R&D to In 2014, we also continued to build upon our Ellumina create the future products that our dealers will need in the digital signage solutions. With a wide array of customers coming years. ranging from sports entertainment to education to groThe Sharp team wishes our dealers a prosperous 2015 cery and retail, Toshiba has positioned itself as a leader in and we look forward to working with you to maximize your this market. We offer our dealers a turnkey program that business opportunities. provides the necessary training, a dedicated support team, content creation, installation and ongoing service, allowing Toshiba America Business them to easily sell this new offering. Solutions Inc. As we approach 2015, the decline in print will unScott Maccabe, President & CEO doubtedly continue as a business threat. For this reason, Prior to taking a look forward to Toshiba stands committed to providing our dealers with 2015, I would like to briefly reflect on revenue-producing programs such as our award-winning a successful 2014. Through the efforts Encompass Managed Print Services and Ellumina Digiof our dedicated independent deal- tal Signage Solutions, while ensuring our MFP product ers, TBS operations and Latin Ameri- line continues to be first-in-class. Additionally, it will be can distributors, we attained much imperative for dealers to continue to offer solutions that 24 | w w w. o f f ic et ec hno lo g ym a g.c om | De c e m b e r 2 0 1 4

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address customer pain points and deMFPs. More than twice as many A4 Clients are looking for liver on their business objectives. At color MFP units are sold than A3 color Toshiba, we are proud to partner with MFPs, making it important for dealers assurances from their best-in-class providers, thus supplyto incorporate these into their product dealers that the devices ing our dealers with a comprehensive mixes as well as their MPS strategies. they connect to the suite of solutions for output manageXerox offers a broad range of MPS pronetwork ... will not ment, capture and workflow. And, figrams, making it easy for dealers to lecompromise their nally, we will continue to develop our verage Xerox’s infrastructure, protect security and eco offerings that remain their customer bases and maximize security measures. top priority for end users. their profits. I look forward to another successful The second challenge comes in the year where Toshiba continues to provide its dealers with the form of IT providers that are targeting print devices conproducts and support they need to help customers manage nected to the network as a new revenue and profit opportutheir content, whether it is in print, digital format or dis- nity. Because they already have tremendous influence over played on a screen. network-connected devices and, perhaps more importantly, the ear of the IT department, they are rapidly becoming a Xerox Corp. real threat to BTA dealers. For example, we know 84 percent John Corley, President, Channel of decision makers prefer one source for IT and print needs. Partner Operations Dealers can support their decision makers’ needs by takAs we look ahead to 2015, we see ing on IT support or by creating local relationships with IT several market and product oppor- providers. Dealers who do not offer an expanded portfolio of tunities. Dealers can look forward to products, solutions and services give a tremendous edge to continued growth in light production competitors who do. color page volumes, as well as manThere have been many changes in the past year. In 2014, aged print and IT services. According major cyber-attacks at well-known companies such as JPto the Photizo Group, 78 percent of small and medium-sized Morgan Chase, Home Depot, Target, Apple and others have businesses have no managed print services (MPS) program, made information security top-of-mind for many customrepresenting a huge opportunity for dealers. In addition, ers. We have seen increasing concern from our customers cloud services and technologies such as mobile printing, around information security and disaster recovery. Clients remote access, personalized workflow applications and ad- are looking for assurances from their dealers that the devanced security protection can help dealers win more deals. vices they connect to the network — as well as software and Customers today are less interested in off-the-shelf solu- other applications — will not compromise their security tions if they are only partly relevant. Xerox’s Personalized measures. This means that the dealer must be well versed Application Builder provides dealers with a set of tools and in the protection protocols and security standards met by training that lets them personalize solutions to meet their the manufacturers of the solutions they represent. Xerox’s customers’ unique requirements. security website can help. With 80 percent of revenue coming from existing customDealers who consider it part of their DNA to invest in ers and increased pressure on product and service margins, their people and develop new business opportunities will we have seen that those dealers who devote time to under- find themselves well positioned for 2015. The rapid change stand and address their customers’ challenges are the most in technology is overwhelming. Dealers who make the insuccessful. These partners gain valuable insight while help- vestment to advance skill sets and help their staff members ing their customers discover untapped opportunities. Deal- obtain valuable certifications understand this is a necesers become trusted advisors, which enables them to deploy sary ingredient in delivering the best customer experience technology that helps reduce client costs and streamline possible. Oftentimes, we find that these dealers are also the processes — all while expanding their share of wallet and ones who are willing to take calculated risks and experiimproving customer loyalty. ment with adjacent products and services to expand their While we are excited by the opportunities in 2015, we do reach into their customer bases. There is a lot to look forsee two main challenges for our dealers, neither of which ward to in the coming year. n is really new. The first is the continued decline in the tradiBrent Hoskins, executive director of the Business Technology tional BTA dealer stronghold of A3 monochrome MFPs as Association, is editor of Office Technology magazine. page volume migrates to both A3 color MFPs and A4 color He can be reached at brent@bta.org or (816) 303-4040. 26 | w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 4

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Fall Colors Retreat BTA Southeast event held in Asheville, N.C. by: Brent Hoskins, Office Technology Magazine

“T

he BTA Fall Colors Retreat in North Carolina was held at the perfect time of year to showcase the beautiful landscape with the fall foliage,” said Eddy Jones, vice president of marketing, ISG Division, Ethos Technologies, Salem, Va. “This was a great get-together with other businesspeople to share ideas, meet exhibitors from different companies that supply our business needs, learn more about how our industry is changing day to day, and see what we need to do to make sure our companies grow with the changing technology.” Jones was among the attendees at BTA Southeast’s annual Fall Colors Retreat, held Oct. 24-25 in Asheville, N.C. With an educational focus on managed IT services, led by Roy Serhal of N-able by Solarwinds, the retreat also presented an opportunity for attendees to tour the Biltmore Estate, dine at Pack’s Tavern in historic downtown Asheville and engage in round-table discussions with each of the 11 exhibiting sponsors. Attendee Shelley Calloway, controller, Advanced Business Equipment, Asheville, N.C., said she especially enjoyed interacting with exhibitors and other attendees. “The BTA Southeast Fall Colors Retreat was a great opportunity to meet with the many exhibitors,” she said. “The round-table format not only allowed me to learn more about the products in a small group setting, but it also gave me the ability to network and meet other participants.” The retreat’s exhibiting sponsors were: Digitek, ECi FMAudit, EverBank Commercial Finance, Frontier Imaging, GreatAmerica Financial Services, OKI Data Americas, PHSI, Print Audit (Oct. 24 Biltmore Tour Sponsor), Samsung, SYNNEX and West Point Products. The 2015 BTA Southeast Fall Colors Retreat will take place Oct. 23-24 in Asheville. The district’s next event, Winter Break, will be held March 20-21, 2015, at Disney’s Grand Floridian Resort & Spa in Orlando, Fla. For more information, see the ad on pages two and three or visit www.bta.org/BTASoutheastEvent. n Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine.

From top to bottom: BTA Southeast’s Fall Colors Retreat featured an educational session by Roy Serhal, regional sales manager for North America at N-able by Solarwinds, and a dealer panel, both of which focused on managed IT services; The dealer panel, “Growing Your Managed Services Practice,” featured panelists ( from left to right) Kurt Beasley of Carolina Business Equipment (CBE), Columbia, S.C., John Morelock of CBE, Tim Renegar of Kelly Office Solutions, Winston-Salem, N.C., and Barry Wallingford of Atlantic Business Systems, Melbourne, Fla.; BTA Southeast President John Eckstrom welcomes attendees.

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Top row, left to right: Serhal presents his educational session, “Making the Shift: How MFP Dealers are Succeeding in Managed Services”; Larry Nichols of OKI Data Americas speaks to attendees during the round-table sessions with exhibitors; Attendees enjoy dinner at Pack’s Tavern in historic downtown Asheville, as well as a tour of the Biltmore Estate. Bottom row, left to right: Don Crier of Samsung Electronics America Inc. leads his exhibitor round-table discussion; The event wrapped up with prize drawings from BTA and exhibiting sponsors: Eckstrom presents a $50 American Express gift card to Kim Belcher of Ropho Sales, Salem, Va.; Eckstrom presents an Apple TV to Jeff Eaves of Appalachia Business Communications of Kingsport Inc., Johnson City, Tenn.

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COURTS & CAPITOLS

Computer Professionals Are they exempt from the Fair Labor Standards Act? by: Robert C. Goldberg, General Counsel for the Business Technology Association

s more and more dealers transition into managed services, their support staffs expand to include computer professionals in addition to their MFP technicians. While most MFP technicians qualify for overtime compensation, there is a specific exemption for computer professionals. The exemption, however, requires certain factors to apply. Dealers frequently believe that so long as their employees agree to certain pay arrangements, there is no violation of the overtime requirements in the Fair Labor Standards Act (FLSA). This is not the case. Employees cannot waive their rights under the FLSA. For example, your employees may agree to a work arrangement where they receive additional pay, benefits and/or time in exchange for giving up overtime pay. An employee may even be willing to sign a written agreement to that effect. Yet such agreements are no defense to a finding of an FLSA violation. It is the written law, not the employer or employee, that defines a dealer’s FLSA obligations. The FLSA does provide an exemption from overtime eligibility to computer professionals who meet certain standards. The individual’s title is irrelevant to qualification. The employee must be compensated either on a salary or fee basis at a minimum rate of $455 per week or, if compensated on an hourly basis, at a minimum rate of $27.63 per hour. The individual’s “primary duty” must meet the duties set forth in the FLSA. Designating an MFP technician as a computer professional will not create the exemption without a specific review of the employee’s primary duties. A recent case from North Carolina demonstrates the analysis that will be conducted to establish a computer professional exemption to overtime compensation. The employee was designated as a local area network (LAN) engineer. According to the individual’s job description, he was responsible for “designing and implementing local area networks” and “supervising the installation, maintenance and operation of local area networks.” He also made recommendations to end users as to upgrades, additions, improvements and modifications. Finally, he was responsible for resolving complex LAN issues. He was required to have a Bachelor of Science in computer

science and experience in supporting networks. It was clear that the job description had been drafted to reflect the requirements of the FLSA exemption. However, the employee argued that these were not his primary duties and he lacked individual authority. The court made a careful examination of the individual’s actual daily activities to determine if the exemption applied. It was found that the individual installed network servers, hubs, routers, workstations, printers and other peripheral devices; operated and maintained LANs; resolved tracking problems; performed software and hardware upgrades; installed or modified existing networked hardware and other components; participated in long- and short-range technology planning; maintained documentation on network configurations and operating procedures; assisted in training; and maintained his own current knowledge of trends and developments involving networks. In addition to these specific tasks, the court also found that he exercised considerable discretion and independence in the performance of these tasks. The employee’s contention that he was merely performing the tasks he was told to perform was unconvincing to the court. In addition to the functions he performed and his level of discretion, the court noted that he was certified as both a Novell administrator and Microsoft engineer. Coupled with his level of compensation, the individual was an exempt employee and not entitled to overtime compensation. His primary duties clearly fell within the exemption. Since the amounts at issue for failure to pay overtime when due are considerable, it is important to closely review and monitor gray areas such as technicians and support personnel. Establish a comprehensive job description, verify the compensation that qualifies and monitor the activities of the individual. Title and compensation alone will not save you from a claim for overtime compensation, nor will an agreement from the employee. n Robert C. Goldberg is general counsel for the Business Technology Association. He can be reached at robert.goldberg@sfnr.com.

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11/26/14 9:15 AM

EDUCATION CALENDAR December 17

Building My Business Webinar: “Overcoming Challenges in Service to Improve Profitability & Efficiencies” Now, more than ever, dealers are faced with many challenges impacting the service operation. Should you explore managed services? Is MPS worth the hassle? Can you take on another service and still offer an exceptional client experience? BEI Services has been in business for more than 21 years, working with hundreds of dealerships. It understands the challenges dealers face that impact service profitability and operational efficiency. This webinar, led by Ken Staubitz of BEI Services, will review the common challenges impacting the service operation and will provide best practices to address these challenges. Visit www.bta.org/BuildingMy Business to register.

January

14-15 BTA Dealer Marketing Workshop Plano, Texas The buying process has changed. More of the initial research is done online. If you are not involved in this online research, you may not even get a shot at the deal. Has your dealership adapted to this new buying process? Or, are you confused by the many local seminars and Internet articles from online marketing people that make big promises but do not understand the MFP business? It is time to get serious about online marketing. The BTA Dealer Marketing Workshop, led by Darrell Amy, Lindsay Kelley and Jon Mitchell of Dealer Marketing, makes sure your dealership is ready to implement best practices in online marketing. You will see real-world examples of how dealers use the Internet to generate leads, cross-sell current clients and position themselves as local experts. Visit www.bta.org/DealerMarketing to register. 27

Building My Business Webinar: “Five New Ideas Using Technology to Secure Net New C-Level Meetings” Kate Kingston of Kingston Training Group has new content on how to attract C-level decision makers by using the technology that is right at your fingertips. Using strategies through social media like LinkedIn — among other specific online applications — will allow your sales reps to learn when a prospect needs a strategic technology solution discussion. Reps will also gain the knowledge they will need to attract more C-level attendees at their next expo or learning luncheon. In this webinar, Kingston will deliver on how to drive more net-new, vertically focused C-level sales meetings past the dialing-for-dollars method. Visit www.bta.org/BuildingMy Business to register. For more information, visit www.bta.org/Education or call (800) 843-5059.

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Calendar Dec 14.indd 1

11/25/14 4:05 PM

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

Dealer Members A+ Imaging Systems, Onalaska, WI Abadan Tri-Cities, Richland, WA Advanced Business Supplies, Hiram, GA Data Solutions 911, Round Rock, TX Diamond Office Technology, Grand Rapids, MI Offix, Gainesville, VA Omega Office Systems, Sarasota, FL RDS Team, Miami, FL Southern Business Machines, Evansville, IN Service Associate Member CEO Juice, San Diego, CA CoreTech Brokers, Tempe, AZ Vendor Associate Member Intronis, Chelmsford, MA Laser Pros International, Rhinelander, WI For full contact information of these new members, visit www.bta.org.

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 Intronis builds data protection solutions exclusively for the IT channel, selling only to IT service providers and never direct to small-business end users. The company developed the Intronis ECHOplatform, the first software platform designed to deliver complete protection for physical and virtual data in one location for a fixed price with unlimited storage. Managed service providers that resell the Intronis ECHOplatform enjoy unlimited opportunities to expand their data protection margins and grow their businesses. www.intronis.com

access to thousands of discounts and special offers on all sorts of popular products and services through BTA’s Member Rewards Program. Come explore offerings from companies like Amazon.com, AMC Theatres, Best Buy, Chili’s, Firestone, Red Lobster, Sprint, Target, T-Mobile and many others. To join, log in and click on the Member Rewards link from your profile menu. Visit www.bta.org/MemberRewards for more information.

BTA Service Associate member CoreTech Brokers allows anyone who sells B2B the ability to add a Cloud Division to his (or her) business. Through the company’s award-winning system, anyone can sell fundamental cloud technologies. CoreTech Brokers provides a complete and comprehensive system that includes training, marketing resources, co-branded materials, a professional discovery system, an in-depth selling system, pre- and post-sales support, and an effective client referral system. There are no costs to add a CoreTech Cloud Division to your business. www.coretechclouddivision.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.

Member Rewards Program As a member of BTA, you can now gain

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Highlights Dec 14.indd 1

11/25/14 10:23 AM

PRINCIPAL ISSUES

Executive Connection Summit Event hosted by Technology United companies by: Brent Hoskins, Office Technology Magazine

echnology United, a group of are talking about at Samsung,” he nine aligned companies comsaid, later repeating the necessity mitted to driving innovation, of focusing on the key areas cited hosted Executive Connection Sumby Gilroy — the cloud, mobility, big mit 2014 on Oct. 27-30 in Scottsdale, data and social media. “You have Ariz. The summit, drawing imaging got to exploit the new. These are the industry executives, focused on profour areas in which people need to viding attendees insight into busiinvest in order to take advantage of ness growth opportunities. the technology that is out there.” Mike Stramaglio, president and Pike emphasized the signifiCEO of Technology United member cance of the transition from the day MWA Intelligence Inc., welcomed atwhen people learned about technoltendees. “Our agenda includes innoogy while at work. “Now it is exactly vative companies, really powerful in The summit featured 17 educational sessions. 180 degrees different,” he said, nottheir own right, that have some very interesting strategic visions ing that people enjoy their technology experience at home, but of the world,” he said of the speaker lineup. “Our interest is in sup- are frustrated when they do not have the same experience in porting, growing and providing opportunities for the industry.” the workplace. While security issues, etc., do not allow home The speakers included executives from MFP and print- and work technology experiences to be exactly the same, he er manufacturers OKI Data Americas, Samsung Electronics said, Samsung is among those companies focused on making America and Sharp Imaging and Information Company of sure the technology experience in the workplace “is a positive America. Executives from technology companies outside of one — for the mobile worker particularly.” the traditional imaging industry, such as Cisco, Intel and SAP Pike assured attendees that the demand for printing conAG, presented as well. tinues, though not simply through traditional means. He cited The first speaker, Kevin Gilroy, senior vice president of Glob- the projection that 50 percent of mobile phone users will need al Indirect Channels at SAP, set the tone for the summit, chal- print capabilities in 2015. He also noted the growing demand lenging attendees to consider the many technological and soci- for printing data that resides in the cloud. Cloud access is a etal changes now in play and the resulting opportunities. “In 25 “big trend,” he said. “The cloud-based printing solutions maryears, I have never seen a point in time where there is so much ket is going to be a billion-dollar market next year.” opportunity,” he said. “I believe we are at an inflection point.” In his presentation, Robert Palmer, chief analyst for BPO ReWhy an inflection point? “Because of the dynamics of the search, likewise emphasized the changing nature of printing. “I cloud, mobility, big data and social [media],” Gilroy explained. don’t believe print is going away, but I do believe it is changing,” “Wrapped in with this are the millennials. They are either he said. “If you look at the current document life cycle, everything running small businesses or they are influencers. If you don’t can be accomplished with a mobile device or a cloud-based soluunderstand the millennials, you are on the wrong side of the tion. You can create, share, distribute and print. So, print cannot inflection point.” be viewed anymore as a standalone business function. Going Gilroy emphasized that millennials work differently than forward, it has to be an integrated business function.” previous generations. “They consume technology differently The summit was the third hosted by Technology United. than we have seen,” he explained. ”If you agree that we are at The member companies: Clover, ESP, GreatAmerica Financial an inflection point, is your business on track to be ‘next gener- Services, Green Hills Software, In-Map, Intel, Intellinetics, ation’ or ‘memory lane’?” LMI and MWA Intelligence. Stramaglio, the group’s founder, In his presentation, Tod Pike, senior vice president of the serves as chairman of its board. n Enterprise Business Division of Samsung, acknowledged the Brent Hoskins, executive director of the Business Technology significance of Gilroy’s comments. “Everything that Kevin Association, is editor of Office Technology magazine. told you relative to SAP’s view of the world are things that we He can be reached at brent@bta.org. www.offi cetechnol ogymag.co m | De c e mb e r 2014 | 33

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11/25/14 4:14 PM

PRINCIPAL ISSUES

LEAD 2014 Toshiba hosts end-user conference in Dallas, Texas by: Brent Hoskins, Office Technology Magazine

argeting current and prospective customers, Toshiba America Business Solutions Inc. (TABS) held its LEAD 2014 End-User Conference Nov. 10-12 in Dallas, Texas. Among the 550 attendees were 50 independent dealers, collectively hosting 75 of their customers. The conference included a variety of educational programs and highlighted Toshiba’s Scott Maccabe latest products. As he welcomed attendees during the opening general session, Scott Maccabe, president and CEO of TABS, acknowledged both dealers and direct sales personnel. “I would like to thank the dealers and Toshiba employees who invited you,” he said. “Your hosts here today are some of the finest solutions providers in the industry. “ Maccabe explained the two-fold goal for Bill Melo the conference. “First, to show you how Toshiba’s business solutions can help you print, work and communicate smarter,” he said. “Second, we are also going to offer you a glimpse into the future of technology and the many ways Toshiba is shaping it.” To demonstrate the strength and scope of Toshiba, Maccabe noted that the company’s products range from elevators to industrial power distribution equipment. “While Toshiba does not have a singular product focus, it does have a singular mission — to improve the quality of people’s lives through innovation,” he said. “It does this by being one of the world’s foremost R&D companies and patent holders.” Referencing the imaging industry, Maccabe emphasized TABS’ commitment to MPS, now more than 22 percent of its business, with A4 MFP sales up 25 percent. However, he also emphasized the rising demand for interactive visual content, noting that “generational megatrends are driving a massive shift in the way people communicate and the types of information they consume.” Maccabe cited TABS’ Ellumina digital signage as a means to address changing demands. “Ellumina can manage and display information for one or many, and is already in use supporting some of the biggest names in sports, entertainment and retail,” he said. “I’m proud to announce that Toshiba’s Ellumina digital signage has just been chosen for the largest curved scoreboard at a major-league soccer stadium — the

StubHub Center in Los Angeles, home of the LA Galaxy.” In his general session presentation, Bill Melo, TABS’ chief marketing executive, further highlighted the company’s digital signage offerings, noting that they also include Virtuoso interactive displays, most often managed by the user’s touch. “They are typically provided for an audience of one or a few,” he explained. “They are often deployed for self-service applications or for assisted selling applications. For example, a car dealership salesperson may use a Virtuoso display to help explain the features of a car or actually select features you [the prospective buyer] are going to use.” Melo noted that Toshiba works with the customer to understand business objectives and then creates a custom, fully branded experience for deployment. He demonstrated an example of a dynamic content application now in use in LA Interactive, powered by Toshiba and located in the Staples Center in Los Angeles; there, the user can select to view specific information regarding the current roster of players for the LA Kings. He also noted that Virtuoso displays are ideal for “wayfinding” applications, such as in a shopping center where a user is seeking to find the location and directions to a particular store. Although he highlighted Toshiba’s digital signage offerings, Melo also took the opportunity to tout the company’s Encompass analytical program, to ensure attendees were aware of its capabilities as they relate to printer and MFP fleets. “The goal of Encompass is to be able to provide clients with a detailed look at their current environments — how many devices they have, where they are located, how much they print and how much it costs to print,” he explained, noting that among the information provided is a green report, showing the eco-footprint of the customer’s environment. “It provides a solution that will optimize both productivity and costs.” As he concluded his remarks, Melo emphasized the value of Toshiba’s “enormous global resources,” as well as the presence of local representatives of the company (dealer and direct) who “live in your communities, whose kids go to school with your kids.” That combination of “resources, technological expertise and innovation, together with that local touch, is unique,” he said. “We believe that we are a technology leader and, perhaps more importantly, we look forward to a continued relationship or a new relationship with you.” 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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Toshiba Dec 14.indd 1

11/26/14 4:11 PM

PRINCIPAL ISSUES

ECi Connect Conference Event focused on education & software updates by: Elizabeth Marvel, Office Technology Magazine

ith a goal of further educating end users on its software offerings, as well as announcing new products and updates, ECi Software Solutions hosted its annual ECi Connect Conference, themed “Educate, Collaborate, Inspire,” Nov. 10-12 at The Mirage Hotel and Casino in Las Vegas, Nev. ECi announced a record attendance for the 2014 conference with 870 attendees from nine countries and 45 U.S. states. Ron Books, president and CEO, and Trevor Gruenewald, COO, welcomed attendees to the conference and spoke about a topic that has been getting a lot of industry attention. “The business world is still constantly evolving and you, as businesspeople, are being forced to be more nimble than ever,” Books said. “One thing you’re going to have to recognize is there’s a new consumer ... It’s not the Gen Xer anymore. It’s not the baby boomer anymore. The largest segment of consumers is now a group called the millennials ... This group is really impacting the way that we are doing business, or will do business in the future, and will impact the kind of employees that we’re hiring.” “Kicking off the conference, we’re going to make sure you are all starting to prepare for this big movement and we’re going to focus this week’s conference on bringing out your inner millennial, regardless of what age you are,” Gruenewald said. The goal of “bringing out your inner millennial” could be seen in ECi Connect App for mobile devices, which allowed attendees to post updates and photos from the conference, create personalized workshop schedules, and look at maps and other event information. Those who participated in posting updates and photos were ranked on a leaderboard within the app, and prizes were awarded to the top posters. Educational sessions during the conference looked at ECi’s various software products, including Acsellerate, Advantage, Britannia, DDMS, e-automate, Easy Order, FMAudit, La Crosse, M1, OMD, Red Cheetah, RockSolid and TeamDesign. These sessions allowed attendees to learn more about how to use each software package to its fullest potential. Nonsoftware educational sessions on marketing, sales, disaster recovery and e-commerce strategies were also included in the schedule. One standout session for office technology dealers was “Office Division — The Path Forward,” which looked at the structure of ECi’s Office Products Division and its plans for the future. “We will identify and move forward with next-generation technology platforms,” said Andrew Morgan, president of the Office Products Division and president of ECi Red Cheetah. “We

Top photo: The ECi Connect Conference’s High Roller Cocktail Reception at the end of the second day gave attendees the opportunity to network with their peers. Bottom photos, left to right: Ron Books; Trevor Gruenewald; and Andrew Morgan. are going to talk about the consolidation of some platforms. We are going to expand into adjacent verticals across vertical solutions and get into more cloud-based delivery options.” Morgan also announced ECi’s newest software package, Red Falcon. This software as a service offering (SaaS) is intended for use by independent office supplies, furniture and equipment dealers who want a combination of ERP and next-generation e-commerce that will allow them to expand into other business verticals. Morgan said Red Falcon is the “best of both worlds between Red Cheetah and Britannia,” and was created to help businesses compete in an evolving industry that is embracing mobile and e-commerce. n Elizabeth Marvel is associate editor of Office Technology magazine. She can be reached at elizabeth@bta.org or (816) 303-4060. www.offi cetechnol ogymag.co m | De c e mb e r 2014 | 35

ECi Connect Dec 14.indd 1

11/25/14 4:32 PM

PRINCIPAL ISSUES

Energy Costs Lower them through technology & simple practices by: Dave Perrotta, ESP/SurgeX

oo often, the power that fuels our work lives is taken for granted. As long as our computers, printers, air conditioners and IT hardware power up every morning, there is a sense that everything is working fine. The reality is, without proper protection and management, the power flowing from the grid and through our walls is constantly fluctuating and degrading the performance and life span of electronics. Most equipment is designed to withstand some “electronic rust,” but over the long run, it can cause downtime, needless waste and lower profitability for businesses. Energy intelligence is a broad term I use to describe better understanding your power. This includes how to protect equipment from power anomalies, how to manage power settings most effectively and how to use connected equipment most efficiently to reduce business costs related to power. In today’s office environment, modifying energy management practices offers major growth opportunities. Implementing workplace energy management goes beyond just being environmentally friendly — it provides a company with substantial savings, including several incentives already offered by utilities and governmental bodies to encourage businesses to change electrical usage habits. Power protection and energy intelligence solutions are also considered one of the safest investments any business can make to save money. A recent analyst report conducted by BEI Services for the imaging industry showed that operating costs can be reduced by as much as $205 per office machine, per year. When you talk about the cost of downtime and lost productivity from power-related disturbances and the potential to be more energy efficient, the savings are even higher. Understanding power down to the plug level is an important part of energy intelligence. An uninterruptible power supply (UPS) installed upstream from a server or panel does little to protect from surges and offers no protection for anything downstream. Internal surges of more than 1,000 volts can occur many times a day and surges account for more than 50 percent of all power disturbances. When people see how an HVAC system cycling on affects the power feeding a single printer or desktop computer, it makes a compelling case for installing surge protection and power conditioning equipment. Remote energy management is another critical area. Simply put, there is no better way to reduce power-related downtime

or identify waste than to have a remote energy management system in place that highlights disruptions in real time and allows a technician to identify the problem and fix it immediately. Power issues can fester and continue disrupting productivity if a proper analysis is never done. We had a customer burn through seven flat-panel displays before he investigated power as a culprit. By simply plugging an entry-level energy diagnostics tool into the line, we were able to immediately identify a wiring fault as the cause and implement an easy solution that eliminated the problem. When talking about ways to save energy, there is an endless list of small and big steps employees and management can take to reduce waste. Some are obvious (like not opening windows when the heat or AC is running), while others are common sense (like not keeping mobile devices plugged in if they are fully charged or shutting down monitors when not in use, as opposed to using screen savers). For actual buildings, companies can do things like install weatherstripping on windows for better insulation, reset thermostats during off hours in accordance with the seasons, turn lights off during downtimes and invest in yearly (at least) HVAC cleanings. The ability to monitor energy usage spikes or abnormalities can also be valuable. For instance, we had a refrigerator in one of our office break rooms that was consuming three times as much energy as an identical refrigerator in our other break room. After noticing the increased energy usage, we determined the seal on the freezer was broken, causing it to consume three times as much energy to keep things frozen. These are the kinds of things that you would never expect to drive costs and you might never find out about without an energy diagnostic system in place. With the right diagnostic intelligence and power protection tools, it is not difficult to raise your energy intelligence and reduce costs related to power issues and waste. n Dave Perrotta is vice president of operations and engineering for Electronic Systems Protection Inc. (ESP/SurgeX) and has engineered patented power protection diagnostics and energy management solutions for the imaging industry for more than 10 years. He has an extensive background in operations and engineering management, is an active IEEE member and is SPHR certified. Visit www.espei.com.

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Perrotta Dec 14.indd 1

11/25/14 4:35 PM

SELLING SOLUTIONS

Be Prepared The Boy Scout motto is one worth repeating by: Troy Harrison, SalesForce Solutions

“B

e Prepared.” That is the Boy Scout motto and I have spoken about it before. So many sales are lost not because the customer does not want to buy, but because the salesperson is not prepared to sell. Every salesperson thinks he (or she) is prepared to sell — but few actually walk through the steps and define what it takes to make a sale happen. What is your sales process? By “sales process,” I mean, what are the steps involved in making a sale? Walk it through, start to finish, with the objective of understanding the “catch points” and seeing what you can do to eliminate them. You also need to understand the customer’s interest curve, which I will address first. Think of the customer’s interest as a bell curve. On the left (the beginning) of the curve, your customer’s interest is typically low. Then, as you move forward, discovering needs and showing how your product or service can address those needs and generate a positive result, your customer’s interest increases until it hits the peak of the bell curve. That moment in time when the customer’s interest is highest is, as we know, the best moment to complete a sale. But how do we know? Actually, it is easy — the customer usually asks a question like, “So, how much does that cost?” When your customer asks for a price, he is usually at the peak of his interest curve. Every word you use and every day that goes by before you answer that question only moves the customer back down the bell curve. This is one of the places where good sales go to die. It is not the only one, though. There are other places and other ways that we hurt our sales potential through not being prepared to make a sale happen. Here are five moments when you may get in your own way as a salesperson: (1) Not having good questions — Sales is, as we have said many times, an activity of questioning and intellectual curiosity. You need to want to know about your customer’s needs, defined results and a defined “win” from the sales call. It is not enough to have a list of questions in front of you; you have to be prepared to create good questions on the fly. (2) Being your own worst objector — Salespeople are guilty of this one all the time. You have probably done it, too — gone into a sales call thinking, “There is no way they will buy today,” or something like that. This becomes a self-fulfilling prophecy. If you do not think your customer will buy, he will not. This manifests itself in a number of different ways, including being your own worst price objector, thinking negatively about your ability to carry out the sale, etc. This results

in artificially slow-playing the sale while your competitor walks right past you. (3) Not taking sales tools into the call — There is really no excuse for this one. All the time I see salespeople who are scared to death to take sales tools into a sales call — including necessary sell sheets, brochures, and even contracts and order forms. The explanation I hear most commonly is, “I didn’t want to intimidate the customer.” Really? Your customer knows why you are there — even if you do not. Do not be that sales rep. When you go into a sales call, be prepared to make that sale happen. (4) Being unprepared to price — Look, I know that not every one of you can be fully prepared to price every piece of business. Some needs are complicated. Some are complex projects. Some require quotes from manufacturers. And, if your situation is truly one of those situations, you are excused from this comment. That said, too many of you are not excused — www.offi cetechnol ogymag.com | De c e mb e r 2014 | 37

Harrison Dec 14.indd 1

11/25/14 4:41 PM

you have the tools, price sheets, etc., availathe customer losing interest. ble to you to quote price and, yet, when the Do not get me wrong — many, if not ... Every appointment customer asks, “How much?” you immedimost, sales will not be closed in one call. should end with a ately retreat to the Bat Cave to develop the However, by being prepared, you can commitment for a magic proposal. Why? If you have the tools, shorten the sales cycle without annoying next step. If you can quote the price — because if you do not your customer. n close ... then by all quote the price, you cannot close. Which Troy Harrison is the author of leads us to ... “Sell Like You Mean It!” and a speaker, means — ask the (5) Being unwilling to seek commitconsultant and sales navigator. He helps closing question. ment — Notice that I did not say “being companies build more profitable and productive sales forces with his cutting-edge unwilling to close the sale.” Not every apsales training and pointment can end with a closed sale, but methodologies. For information on booking every appointment should end with a commitment for a next speaking/training engagements, step. If you can close (i.e., you have identified needs, presented consulting or to sign up for his weekly and proposed), then by all means — ask the closing question. e-zine, call (913) 645-3603 or If you really do have to continue the sales process with another email troy@troyharrison.com. appointment, then set the next appointment right then and Visit www.troyharrison.com. there. If you do not, you have no one to blame but yourself for

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Harrison Dec 14.indd 2

11/25/14 4:42 PM

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