December 2016 Office Technology

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CONTENTS Volume 23 • No. 6

FEATURE ARTICLES 10

2017 Industry Forecast Manufacturers look to the year ahead

P R I N C I PA L I S S U E S Moving Forward With Change Developing your plan & making decisions

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by Ken Edmonds Service Management Coach

Compiled by Brent Hoskins Office Technology Magazine

What will be the greatest opportunities in the new year? To find the answers, Office Technology asked 12 MFP and printer manufacturers to share their expectations for 2017.

Each was asked to address the following questions and more: What do you believe will be the greatest market and product opportunities for dealers in 2017? What are the best sales and marketing strategies for dealerships in pursuing these opportunities? Perhaps the insight shared will help you position your dealership for success.

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In my article that appeared in the November issue of Office Technology, I reviewed some of the data necessary to launch a new managed IT services program for your dealership. After the information comes in from the management team, you are ready to finish developing the plan and to make decisions.

Convergence 2016 Ricoh hosts national dealer meeting Oct. 24-26

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by Brent Hoskins Office Technology Magazine

You’ve Come a Long Way Inkjet vendors’ long push to penetrate the office

Ricoh USA Inc. hosted its Convergence 2016 national dealer meeting Oct. 24-26 in Las Vegas, Nevada. The meeting drew a record number of more than 1,200 attendees. Currently, Ricoh in Japan is developing its three-year plan for fiscal years 2017 to 2019, establishing the company’s business goals.

by Charles Brewer Actionable Intelligence

Over the past 10 years or so, much has been written about perilous declines in certain segments of the home and office imaging markets. No segment has contracted more dramatically than the inkjet market, especially at the low end. While sales and shipments of inkjet machines enjoyed explosive growth from the early 1990s into the 21st century, demand for small- and home-office (SOHO) inkjet devices has experienced an almost decade-long slump.

Your Most Important Skill Increasing your win ratio with new hires

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by Troy Harrison Troy Harrison & Associates

What is the most important skill in your skill set? By “your,” I am referring to the managers and business owners who make up the majority of this magazine’s readership. For a business owner (if you have a business that consists of more than one person), your most important skill is your ability to consistently hire and retain quality employees.

COURTS & CAPITOLS 33

The Ransomware Threat How much is your data worth?

by Robert C. Goldberg BTA General Counsel

We have all heard about the attorney who dies without a will, but what about the dealership owner who fails to back up his (or her) company’s systems or keep its antivirus software and/or firewall up to date? I received a call from a dealer recently that was urgent, high anxiety and required immediate guidance. The dealer was a victim of locker ransomware, which locks the user interface, denying access to computing resources. Unlike crypto ransomware, the dealer’s underlying system and files were not touched.

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

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• BTA Education Calendar • BTA Highlights

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Executive Director’s Page

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BTA President’s Message

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Advertiser Index

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EXECUTIVE DIRECTOR’S PAGE

Look Back Magnifies Momentous Change

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iven that 2016 is BTA’s 90th anniversary year, I’ve spent a fair amount of time lately looking back as I look forward. That is, I have spent more time than in past years contrasting the past with the present — as well as with the expectations for the future of the office technology industry. Doing so has made one thing very clear: The momentous amount of change in our industry through the years has ensured unending opportunity.

The cover story for this issue of Office Technology is our 2017 Industry Forecast featuring submissions from representatives of 12 manufacturers. I am grateful to these individuals for their willingness to participate, sharing their expectations for the year ahead. I encourage you to take the time to read this special feature.

As I first read through the forecasts, I found myself once again thinking about the “then-and-now” theme of this anniversary year. When did the association first begin sharing manufacturers’ expectations for the new year? They first appeared in our January 1982 issue. My plan was to compare the comments from some of the manufacturers “then” to some of the manufacturers “now.” However, as it turns out, none of the current contributing manufacturers were in that issue.

I returned to our magazine archives, moving a few file folders to the right — to the January 1987 issue. Bingo! That issue does include some of the same companies you will find in this issue. So, in the spirit of the “then-and-now” theme, let’s take a look at a few excerpts to see how the prevailing message shared by manufacturers has changed 30 years later.

n Canon 1987: “In the mid-volume copying arena, Canon introduced the NP-2000, 3000 and 4000 Series systems, offering customers a range of copying speeds from 15 to 40 cpm together with color and editing features.” n Canon 2017: “Canon predicts the demand for SaaS providers will continue to grow in 2017 and Gartner has listed embedded analytics via SaaS as one of the top employee-facing technology trends that CIOs will likely use to drive digital workplace transformation.” n Ricoh 1987: “Increased memory, storeand-forward, group compatibility, broadcasting, G4 considerations and plain-paper facsimile products will require a ‘new breed’ of office equipment sales representatives.” n Ricoh 2017: “2017’s most successful dealers will leverage the trust they have built with current customers to bring in new solutions to handle information management, helping to further expand their end-user relationships.” n Sharp 1987: “Copiers now have a broader range of features, such as duplexing and image editing, that are easier to operate.” n Sharp 2017: “For all dealerships to survive long term in this market, they will be challenged to expand their capabilities to leverage additional value for their customers beyond a cost-per-print or managed print services business model.”

Clearly, the era of focusing on speeds and feeds, etc., has passed. In fact, the focus on hardware is no longer prevalent. Yes, it can be said that imaging devices remain at the foundation of our industry, but as the above excerpts from the 2017 forecasts reveal, the focus is more on the need for diversification and transformation. It is my hope that the industry forecasts in this issue will serve to help guide you as you plan your strategies for success in the year ahead. Best wishes for a great 2017. 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 Charles Brewer, Actionable Intelligence www.action-intell.com Ken Edmonds, Service Management Coach ken.edmonds@CKE-Enterprises.biz Robert C. Goldberg, General Counsel Business Technology Association Troy Harrison, Troy Harrison & Associates www.troyharrison.com

Business Technology Association 12411 Wornall Road Kansas City, MO 64145 (816) 941-3100 www.bta.org Member Services: (800) 505-2821 BTA Legal Hotline: (800) 869-6688 Valerie Briseno Marketing Director valerie@bta.org Mary Hopkins Database Administrator mary@bta.org Teresa Leerar Bookkeeper teresa@bta.org Brian Smith Membership Sales Manager brian@bta.org Photo Credits: Bigstockphoto. Cover created by Bruce Quade, Brand X Studio. ©2016 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

E-learning Program for Reps Launched

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he majority of respondents to BTA’s most recent survey of members regarding the association’s educational offerings indicated a preference for web-based training — elearning — for their employees over in-person, classroom training.

A sampling of the reasons cited are what you would expect: “easier to attend, no additional costs”; “saves time, no travel”; and “convenience.” This same survey revealed the significant importance of “sales rep training”; more respondents ranked the category as “very important” than any of the other eight educational topic categories listed in the survey.

Based, in part, on these survey results, I am pleased to announce that BTA is launching a new web-based educational offering to members specifically intended for sales reps. The BTA Strategic Sales Semester, taught by Mitch Morgan and Chris Ryne of Growth Achievement Partners (GAP), will walk attendees though the Strategic Methodology Framework (SMF) — a step-by-step sales process designed for the office technology industry that contemplates transactional and strategic sales. The training program consists of 13 online sessions over a six-month period. The sessions, which will be 45 to 60 minutes in length and geared to specific parts of the sales process, include opportunities for polls and interactive Q&A. The first session will be a pre-workshop session with the dealership’s sales leaders that will educate them on the content, concepts and flow of the class.

This new program addresses the reality that selling in the office technology industry is shifting from transactional to strategic. Transactional sales are characterized

by an equipment focus, selling a payment, replacement of the base and mid-level buyers. Strategic sales require probing for pain, aligning solutions to a prospect’s business goals, determining and getting to the right level in the organization, and justifying incremental spend. Determining which accounts and opportunities require a transactional approach and which require a strategic approach is a skill that is now required to be successful today and into the future. Do all of your sales reps have the skills necessary to excel in today’s market? If not, this program will teach them the skills they need.

The program will also include collaboration through Yammer, an enterprise social network; sales manager materials; monthly open-forum sessions; an initial assessment; ongoing evaluations; and an app that will allow participants to listen to training anytime, anywhere, and repeat sessions or establish a library for future use. GAP will also be available to do on-site classes when needed, whether to kick off the program or to get a deeper dive into strategic concepts and skill building.

The inaugural BTA Strategic Sales Semester will begin Jan. 23, 2017. BTA member tuition is $250 per session for up to 10 participants from each attending dealership. BTA members may also apply their $150 educational discount received with membership toward the final session. Nonmember tuition is $680 for the first session and $250 for each of the remaining 12 sessions, and includes up to 10 participants and a one-year BTA dealer membership.

If you are looking to improve your reps’ sales skills, I encourage you to have them attend the BTA Strategic Sales Semester.

For more information or to register, visit www.bta.org/StrategicSales. n — Rob Richardson

2016-2017 Board of Directors President Rob Richardson Allied Document Solutions & Services Inc. Swedesboro, New Jersey robr@ads-s.com President-Elect Dan Castaneda International Copy Machine Center El Paso, Texas dan@icmc-elp.com Vice President John Eckstrom Carolina Business Equipment Inc. Columbia, South Carolina johne@cbesc.com BTA East Jim Donnellon ABS Business Products Inc. Cincinnati, Ohio j.donnellon@absproducts.com Greg Gondek ACT Group Cromwell, Connecticut greg@advancedcopy.com BTA Mid-America Erik Crane Copy Products Inc. Springfield, Missouri ecrane@copyproductsinc.net Bob Evans Function4 Sugar Land, Texas bobevans@digiteconline.com BTA Southeast Brian Snow Tallahassee, Florida Advanced Business Systems bsnow@a-b-s.com Tim Renegar Kelly Office Solutions Winston-Salem, North Carolina trenegar@kellyofficesolutions.com BTA West John Hines Copiers Northwest Inc. Seattle, Washington jhines@copiersnw.com Cathy Dimon Northern Business Systems Fairbanks, Alaska cdimon@acsalaska.net Immediate Past President Dave Quint Advanced Systems Inc. Waterloo, Iowa dquint@asiowa.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkel Newman & Rosenberg LLC Chicago, Illinois robert.goldberg@sfnr.com

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2017 Industry Forecast Manufacturers look to the year ahead Compiled by: Brent Hoskins, Office Technology Magazine

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

To find the answers, Office Technology magazine asked 12 MFP and printer manufac­ turers to share their expectations for 2017. Perhaps the insight shared will help you better position your dealership for success.

Each of the contributors was asked to address the following questions in essay form: What do you believe will be the greatest market and prod­uct opportunities for dealers in 2017?

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 2017 and how can they best address them? What notable changes in demand/needs/expectations do you an­ ticipate from end users in 2017? What do you see as the char­ acteristics of the office technology dealership that is best po­ sitioned for success in 2017? Following are their responses.

Brother International Corp.

Steve Feldstein, Director of Marketing, SMB Products 2017 holds many opportunities for manufacturers and channel partners to work together as business require­ ments from end users become more complex. At Brother International Corp., we are seeing a greater de­ mand for printers and multifunctional devices that include document management and workflow solutions with cloud and mobile capabilities, as well as environmentally friendly features such as toner-save modes, long-life consumables and duplex printing. We are also seeing a significant shift toward “printers-as-a-service,” which gives customers the option to pay a monthly fee for actual use and services. This

presents expanded service opportuni­ ties for dealers.

Enhanced document life-cycle man­ agement continues to emerge as an op­ portunity for dealers as it can address two key issues for SMBs: (1) improves speed to market and (2) improves work­ force productivity. Devices designed to seamlessly integrate with a cus­ tomer’s document management sys­ tem enable end users to easily archive scanned documents to cloud services such as Evernote, Dropbox or Google Drive, or to a dedicated network, then retrieve and print from a variety of de­ vices including smartphones, tablets and Chromebooks. This functionality should also include built-in security and encryption features to ensure document integrity for the end user.

The coming year holds the promise for even more partner­ ships between dealers and manufacturers. Close relation­ ships with print, scan and multifunctional printer (MFP) brands can deliver significant returns through manufactur­ er presale services and support, insight into how to target specific markets, addressing unique customer needs with customized document imaging technology, staff training sessions, marketing support and even qualified sales leads.

In essence, dealers who develop close partnerships and par­ ticipate in partner programs with their manufacturers are more than just dealers; they are positioning themselves as office technology solution providers.

For many dealers, partner programs play a central role in acquiring new accounts and retaining business with their longstanding clients. In many instances, only program part­ ners are authorized to sell “limited distribution products,” giving dealers a distinct advantage. By partnering with the right vendors, dealerships have the ability to give their cus­ tomers the right solutions based on business needs, which breed long-lasting relationships. In 2017, partner programs

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conduct business and select products. will continue to position dealers to be For dealers to remain For example, a new regulation in the more engaged with customers and quickhealth-care or financial sector could ly resolve challenges that may arise. relevant and ensure drastically alter document workflow We have also seen the continued growth ... they must and security requirements. Identifying growth of online retailers, a trend that continue to identify the these trends and adjusting your offerchallenges many office technology dealevolving technological ings will keep you ahead of the game. ers. While online retailers often promote needs ... that impact In 2017, dealers will continue to relower prices, it is important for dealers quire a full portfolio of business-centric to show that initial cost should not be their customers. devices. Brother’s innovative Worka primary selling point. In many cases, horse series, for example, delivers rothe dealer’s greatest attribute is service — and having the right partner means having a trusted re- bust printers, scanners and MFPs designed for high-printsource and advisor. By selling document workflow and of- volume mid-market organizations. Dealers can provide fice technology solutions and service as opposed to selling additional value to these mid-market organizations by help“the box,” dealerships can differentiate themselves and earn ing customers maintain right-sized fleets that are critical to their technology infrastructures. Our research finds that customer loyalty.

Manufacturers can also assist with meeting vertical mar- significant losses can occur with underused printers, MFPs ket workflow needs. It is important to not only understand and scanners. Dealers can provide guidance on strategic the current needs of specific industries, but to look ahead deployment plans, such as Brother’s Balanced Deployment to see which trends, products and corporate certifications strategies, which better utilize these devices and improve or compliance regulations may impact how customers business efficiency.

Office solution providers are as important as ever for customers of all sizes, but for different reasons than in the past. For dealers to remain relevant and ensure growth in the coming year, they must continue to identify the evolving technological needs and economic drivers that impact their customers. By choosing a partner that can provide the right blend of reliable products, solutions and services, meeting your customers’ document management and business goals is more easily achieved. Now, more than ever, during these uncertain times, a trusted partner that will stand behind (and in front of) the dealer community will be a key success factor in 2017 and beyond.

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Canon U.S.A. Inc. Hiro Imamura, Vice President & General Manager, Business Imaging Solutions Group The “Office of the Future” is no longer a distant concept — it is happening now, favoring dealers who can provide adaptable technology that can form to the unique workflow needs of the individual. While digital transformation contains many facets, two aspects — the progression toward a “human-centric” approach and the demand for software-asa-service (SaaS) offerings — have the potential to be more than just trends, offering longevity for dealers to sustain recurring revenue — the recipe to a successful business model.

The first step in building a human-centric business model is to understand the advantage of selling business

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improvement — not a box. Dealers need digital workplace offers opportunity To help channel to be more concerned with the “why” to gain a competitive edge. As always, (the customer’s pain points) rather than Canon will remain dedicated to propartners succeed in the “what” (the features of a product/soviding them the services and training the coming year, sales lution). Just as there is no one-size-fitsdesigned to help them meet the excitrepresentatives should all solution to right-size a fleet, there ing, and sometimes challenging, times be trained to inquire is no standard fix for every customer’s ahead. We wish our channel partners a about customer issues ... problems. To help channel partners very happy new year, and look forward succeed in the coming year, sales repreto participating in the growth of the rather than the product ... sentatives should be trained to inquire channel in 2017 and beyond. about customer issues, concentrating on the human needs of the office rather than the product/ HP Inc. solution features.

Stephanie Dismore, Vice President For example, bring your own device (BYOD) has enabled & General Manager, Americas employees to use personal devices (set to their individual Commercial Channel preferences) in the office, serving up a new challenge: a workOffice technology dealers have force accustomed to technology adapting to their expectasome incredible opportunities in tions. As technology consumers, individuals have come to front of them in 2017 — as well as a expect that shared office technology will offer an experience few challenges. with comparable flexibility, customization and convenience The technology industry is transas that provided by their mobile devices. The virtually seam- forming around the notion that customer experience is king. less process of a smartphone update, where customers are al- Indeed, Forrester says it is the “Age of the Customer,” which ways given a familiar look and feel, and gain system updates means buyers today have so much access to online information and new features for a simple, enjoyable user experience, is that they can almost dictate terms to businesses they patronnow expected for most, if not every, piece of office technology. ize. They expect consistent, high-value experiences. And if they The channel should embrace this as a selling opportunity, do not get them, they are likely to quickly shift their loyalties. similar to the opportunities presented by BYOD in mobile This is putting tremendous pressure on vendors to learn printing or security solutions. As users depend on the cus- as much as possible about customer buying preferences tomization of their technology, we expect the demand for so they can deliver products and services tailored to their flexible hardware and solutions to grow. For example, to pre- needs. Similarly, companies are radically overhauling dispare dealers for this shift, Canon offers its third-generation tribution models to connect with customers across digital imageRUNNER ADVANCE models, providing unified firm- and physical channels. ware platform updates and allowing users to personalize While this may sound ominous, it actually represents an their experience at the device, with those customized set- opportunity. Indeed, by recognizing that customer experitings following them to other networked, compatible devic- ence is the new competitive battleground, dealers can posies. This lets users work the way they want to work — through tion themselves for success. an individualized, consistent look and feel designed to enIn 2017, the focus should be on four customer-experienceable each individual to be productive, which can then en- related trends: the blending of the consumer and commerable the enterprise to be productive. cial worlds; the rise of everything-as-a-service (XaaS); the As we know, another way businesses can achieve im- influence of millennials on product design; and the growing proved efficiency is through SaaS. Canon predicts the de- emphasis on mobility and security. mand for SaaS providers will continue to grow in 2017 and By the “blending of the consumer and commercial worlds,” Gartner has listed embedded analytics via SaaS as one of we mean the line has become very thin between the technolthe top employee-facing technology trends that CIOs will ogy people use at home and the devices they rely on at work. likely use to drive digital workplace transformation. We When employees started using personal devices to access are preparing dealers for this growth through the Canon corporate networks several years ago, companies responded Business Services Platform, a software subscription deliv- by implementing bring-your-own-device (BYOD) policies to ery and management infrastructure platform offering a manage and secure them. simple way to order, manage, bill and deliver subscriptionThis became a heavy burden for already overwhelmed based document and information management solutions.

IT staffs. So, lately, the trend has been toward choose your In 2017, we hope our channel partners will realize the own device (CYOD), where employers allow employees to 14 | ­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 6

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select from a fleet of specified devices. a network, the higher the risk of a secuThe second trend, XaaS, This has opened the door for the emerrity breach. The good news is that vengence of enterprise-class “three-in-one” dors are wary of that threat and are eais about technology (as connected devices that allow a user to gerly building more security measures a service) being delivered start a task on the go and finish on his into hardware, software and online serfrom the cloud, whether (or her) desktop (using a dock), without vices. Dealers, therefore, should prioriit is managed print, saving, synching or restarting. Dealers tize technology with the latest embeddevices, software, should consider adding such devices to ded security features. their offerings in 2017.

So, these are some of the key trends infrastructure or platform.

The second trend, XaaS, is about we see in 2017. Consider them, but also technology (as a service) being delivcontinue to watch for any innovation ered from the cloud, whether it is managed print, devices, related to customer experience. That is where the true opsoftware, infrastructure or platform. With XaaS, customers portunity lies. ink monthly or annual contracts that typically save them money on product updates and upgrades over time.

Konica Minolta Business This pay-as-you-go model is a major departure from the Solutions U.S.A. Inc. old transactional approach where you simply bought a prodKevin Kern, Senior Vice President, uct and off you went. It presents dealers with an opportunity Business Intelligence Services and to provide value-added services to customers who need help Product Planning with their XaaS deployments. But doing this might require Looking ahead into 2017 and bea modification of business models, since switching from a yond, two words come to mind: trantransaction-based approach to a contractual one will have sition and transformation. Our indusfinancial implications. try is going through major changes In addition to XaaS, dealers should pay attention to how right now as we see acquisitions and consolidations on the millennials are influencing product design, development manufacturer side. The office print market is maturing and and delivery. At more than 80 million strong and one quar- we see more dealers extending their businesses into IT serter of the nation’s population, their economic clout cannot vices, ECM, VoIP video conferencing and even physical secube ignored. By 2017, millennials are expected to spend more rity. These adjacent businesses leverage the industry’s core than $200 billion annually. strength in on-site service and support, providing new sourcOne of the defining technology characteristics of this gen- es of monthly recurring revenue. New, robust sources provideration is an attraction to style. Millennials prefer sleek de- ing print opportunities are developing in the graphic commusigns that are flexible and compact — yet powerful enough nication and industrial print spaces as digitization is gaining to serve their everyday needs. As such, vendors have been momentum in these markets. Likewise, the industry is seeing releasing a wave of stylish computers and mobile devices technology changes driven by the cloud, big data/analytics, that look nothing like their traditional counterparts. mobile and the internet of things (IoT) that will allow us to Millennials also prioritize positive experiences with gain a foothold in creating the workplace of the future. their technology, a preference that has even affected One of the greatest opportunities we see is in industrial something as basic as office copiers. A few months ago, and specialty print markets. The technology is continuousfor example, a new generation of A3 multifunction print- ly evolving, with a growing high-speed inkjet digital color ers (MFPs) emerged, promising to disrupt the $55-billion press market projected to grow 38 percent by 2020. There copier market. How? By delivering unprecedented levels is great potential for inkjet to be used as a manufacturing of reliability, serviceability and security. In 2017, dealers process for printed electronics like chipless RFID. should prioritize this kind of technology to address milWhat are the best sales and marketing strategies for deallennial preferences. erships in pursuing these opportunities? It is a new world The final trend, mobility and security, will continue to be where big data drives product development and marketing. of significant importance for the foreseeable future. Con- Sales and marketing strategies have become more datasumers and professionals are more mobile than ever. Mo- driven and vertical market knowledge is a key to success. bile and wireless devices, including smartphones, tablets Customer data can be leveraged to reveal incredibly useful and even network printers, are a fact of life. And that is not trends and patterns that can lead to huge improvements changing anytime soon. in a dealer’s marketing strategy, particularly in moving to Unfortunately, the more wireless devices you have accessing a more predictive/prescriptive selling process. With good 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 6

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data and a range of offerings from office to be printed. They are data to be manprint to industrial print to IT services to aged. More than ever, manufacturers Applications will the IoT space and workplace of the fuand dealers alike have an opportunity continue to be a ture, there will be a whole world of opto leverage their expertise in documents major bridge between portunity to change the conversation into an expertise in data — an opportuthe document-based with the customer, become the trusted nity to help their customers improve the industry we are and the advisor and expand your business withway they manage not only documentin the customer. We have found that not related processes, but all business prodata-based industry we only can this drive more revenue, but a cesses. Some call it business process imare rapidly becoming. higher gross margin as well. provement (BPI), others call it business The challenge is that all of these opprocess optimization (BPO). Either way, portunities will require an investment to move forward. one of our industry’s largest and most profitable opportuniThere are also many disruptive technologies converging at ties will be to improve overall workflow efficiency — startthe same time in business right now. Dealers will have to ing with documents and moving toward the many forms of keep up with the shifting and evolving landscape and at- data on which our customers’ businesses are run. tract and retain the best talent to be successful.

So, specifically, what is ahead?

This year and beyond will be all about transformation and The MFP continues to be a key part of the foundation transition. Customers will be looking for strategies to im- upon which data infrastructures are built. The A3 will reprove their overall efficiency, not just MFPs. As we move fur- main an essential product, particularly for document-inther into the industrial and graphic communications spaces, tensive workflows at law firms, educational institutions, there will be demands for application support and training. health-care providers and large enterprises of all kinds. A4s In those markets we also have to be able to support manu- will continue to gain share. We must recognize that, for facturing environments and the service-level agreements many companies, and for many groups within companies, that can go with them. And, with our recent election results, A3s are not always the answer — because of space restricthere is the potential for changes in tax and regulatory re- tions, paper-size requirements and budget realities. Success quirements that will require more vertical market expertise. will come to those who offer what their customers need.

The key attribute for a dealer is customer intimacy, ensurApplications will continue to be a major bridge between ing he (or she) stays close to the customer and also maintains the document-based industry we are and the data-based ina strong understanding of the marketplace he is serving. dustry we are rapidly becoming. Apps add functionality to Agility is necessary to adapt quickly to changing market con- A3 and A4 MFPs in ways that matter to today’s businesses. ditions and the willingness to invest in new opportunities. Margins on apps are extremely attractive, and customized Creating a challenging culture that can build new business versions of these apps that are directly linked to the transfer opportunities without losing sight of the core business is key. of critical data across an organization’s infrastructure can There are plenty of growth opportunities in print and mar- be even more profitable. Customized bundling will increaskets adjacent to print to take advantage of. Today, every busi- ingly become a standard part of sales, particularly for cliness is undergoing a transformation. We continually keep in ents in document-intensive sectors. mind our mission to advance and position our customers for Because workflow solutions require a deeper understandsuccess via our forward-thinking and cutting-edge technol- ing of customer businesses, there will be more focus on workogy. As end customers evolve, so must solution providers. flow expertise and, therefore, on the training it requires. All customer-facing professionals — sales, support and service KYOCERA Document Solutions — will be expected to understand their customers’ day-to-day America Inc. processes and how documents and other forms of data fit into Danielle Wolowitz, Vice President, them. Manufacturers are supporting dealers with on-boardCorporate Marketing Group ing services for their new employees, training on processes Let’s talk about the fundamental and workflows, seminars on vertical markets, as well as inchange taking place in the document sight into the evolving nature of the customer relationship. imaging industry, certainly among BPI solutions present new entry points into our cusits most successful companies. Let’s tomers. Documents — and how they are printed, copied, talk about our industry’s new oppor- scanned and accessed — are still one way in. But now we tunity: data. can also lead with: process and how to optimize it; docuIn the information age, documents are not simply pages ment storage and how to streamline it; data security and 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 6

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how to maximize it. If an organization Lexmark — manufacturer or dealership — does ... We encourage our International not have the required expertise, it will Inc. dealers to focus on team up with one that does through Greg Chavers, the need for mobility an alliance or partnership, whatever it Director, U.S. solutions, the growth takes to move beyond the “total docuCopier Sales of color MFPs and the ment solutions” of today toward the “toLexmark would tal data solutions” of tomorrow. like to thank our ... multigenerational At KYOCERA Document Solutions Authorized Busiworkforce ...

America, we have already taken these ness Solutions Dealers for a successful steps, achieving several years of record 2016. Throughout this past year, our revenue through a focus on workflow, key alliances and dealers welcomed new Lexmark products and solutions, constant improvements in everything we do. We are con- which seamlessly integrated into business strategies helpsistently recognized as innovators by independent industry ing to drive meaningful growth for both Lexmark and our organizations, a testament to the culture that today defines dealers. As we look forward to 2017, we encourage our dealKyocera, and tomorrow will define the many exceptional ers to focus on the need for mobility solutions, the growth dealerships and manufacturers that are willing to embrace of color MFPs and the influence of the multigenerational the incredible opportunity in front of us. workforce on business processes.

Predicting the future is not easy, but there is one thing First, let’s look at the growing demand for mobility soluwe know for sure: whatever comes along, Kyocera and our tions. Tablets and mobile devices are rapidly replacing PCs dealers will be ready for it. and the need for printing from these devices is here. Of the

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nearly 3 trillion pages printed in 2016, 242 channel as the key channel to sucbillion of those pages came from mobile cessfully deliver office technology and Dealers are welldevices and those numbers will continue workflow solutions. That is why Mupositioned to ... provide to grow in 2017. Users expect fast, hassleratec is laser-focused on supporting the in-house label printing free mobile printing in this environment BTA Channel. solutions ... For the of always-on, barrier-free connectivity.

Dealers understand the importance dealership, it represents The ability to access a digital file from of responsive customer support. They any mobile device, send it to a Lexmark have established their names and repunet-new hardware, MFP from anywhere, securely print the tations in their respective markets. For service contracts ... document and deliver it to the approprimost small to mid-sized businesses, it is ate places has moved from a nice-to-have not a multifunction printer from Canon, utility to a business requirement. No matter where a custom- Xerox, Sharp or Muratec — it is a document workflow soluer connects, the expectation is of seamless continuity that tion from Pacific Office Automation, Standard Office Systems leads to a successful customer experience. Dealers who can or Bay Copy Inc. It is this mindset that has enabled dealers to meet this need will have a substantial competitive advantage. successfully transition beyond the front office and become In 2017, dealers will focus on the section of this mature integrated into the back office — the production side of their market that is growing — the color MFP. According to In- customers’ businesses. foTrends, “there are pockets of growth opportunity speThis trend started a few years ago as 3D printing solutions cifically within the A4 color MFP 45-plus-ppm segments. In began to emerge in the channel. The ability to enable customNorth America, color laser A4 multifunction placements in ers to quickly create prototypes, speed time-to-market and the 45-69-ppm segment are forecasted to grow at a 16.6-per- better secure intellectual property delivered big benefits to cent CAGR [compound annual growth rate].” Lexmark en- manufacturers and marketers, while sinking deeper hooks courages our dealers to develop strategies, product portfolios into the account for the dealer. Although 3D has been hit or and sales team competencies to address this market space. miss for many of the early adopters, these solutions proved Also important for sustainable growth in a mature market that the dealer/customer relationships that had been cultiis dealer differentiation and adaptation. When considering vated over the years could be expanded beyond the copier. how to position products and stand out in the marketplace, As we move into 2017, we believe independent dealers consider the target audience. Workplaces are stocked with can continue to diversify their offerings and become more four generations (traditionals, baby boomers, Generation X entrenched in their customers’ businesses. Last year we and millennials) working together. Tailoring your message launched our Precision Label Series, which has been met based on the different audiences is the key to success. Tradi- with enthusiasm within the channel and has been our largtionals (born before 1946) receive information and act much est growth area for the past year. differently than millennials (born between 1981-2000). MilMuratec has invested significant resources into building lennials are on the forefront of redefining what technology an infrastructure to enable dealers to compete in this emergis critical to make the workplace run efficiently. They are a ing market. It is not a “flip-the-switch” solution; selling into force to recognize and it will be imperative to adapt your this market requires investment in service, sales, marketing business to this group. Understanding and engaging with and logistics. We have continued to refine our program and this demographic is critical to success. will be adding additional label press solutions in 2017 to ad2017 looks to be an exciting time in our industry. Fo- dress gaps in our lineup and enable our dealers to penetrate cusing on the need for mobility solutions, color MFPs, and an even larger base of accounts. the new and changing customer base as millennials take Dealers are well-positioned to work with their customon greater roles as decision makers, will ensure a success- ers to provide in-house label printing solutions that enable ful transition into the new year. The short-run commitments, instant modifications and full finteam at Lexmark looks forward to ishing (lamination, die-cutting, spooling and separation). continued growth in the dealer chan- For the dealership, it represents net-new hardware, service nel in the coming year. contracts, high-value clicks (at significant margin) and the ability to become truly integrated into the customer’s actual Muratec America Inc. line of business, thus becoming virtually irreplaceable.

Jim D’Emidio, President The applications are endless. Our dealers’ initial success Muratec continues to view the stories include craft beer breweries, wine producers, inindependent office equipment dealer dustrial manufacturers, schools (parking stickers, bumper 20 | ­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 6

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stickers), food packaging and e-cigarette/ customers — will radically change busiAs the lines between IT vaping distributors. Many dealers have ness opportunities for dealers. even deployed the solution in their own Change is not easy. It requires stepresellers and dealers businesses to produce labels for local ping away from comfortable patterns become less distinct, companies that do not wish to produce and honestly evaluating the strengths flexibility is paramount. them on their own, thus creating another and weaknesses of your business. But Too many companies in revenue stream while allowing them to that truthful assessment will help posieach sector are relying become well-versed on the product. tion dealers for success and deepen relaIn 2017, Muratec will launch a comtionships with current customers. on older skill sets ... plementary solution to the Precision For the coming year, I encourage Label Series, our short-run digital packdealers to focus on three major and reaging press. The packaging press adds additional value by lated issues: diversifying portfolios, acquiring talent and enabling users to quickly and cost-effectively customize solving new problems. product packaging. The flexible design enables the press to More than ever, diversifying the portfolio of services print on virtually any porous surface, including corrugated offered will be key for dealers. In 2017, successful dealboxes, bubble pack, uncoated papers and even wood. So, the ers should be able to listen to the customer’s needs, react craft brewery could not only create and apply a custom label knowledgably and then present a full portfolio to the client in-house, but it could also purchase generic six-pack holders that addresses those needs, creates value and strengthens or case boxes and print customized graphics to complete the relationship. That can only happen if the dealer has a full the solution. range of products and services at his (or her) disposal.

Our goal is to help our dealers continue the transition The second opportunity — recruiting talent — goes hand in from the front office to the back office throughout 2017. One hand with a diverse portfolio. While some of the skill sets can of the most important takeaways we have learned is that a be developed with staff in-house, many of the team members majority of the label and packaging manufacturers are not who will be critical to your success are probably still on the outequipped to service the end user like BTA dealers. We be- side. For dealers who are focused on the print and copy marlieve we are on the right track with solutions that will keep ketplace, many of the business opportunities may be in other the independent office equipment dealer evolving for the sectors, including production print and wide-format printing. next several years.

Getting the right sales and services teams in place probably means either acquiring another company or hiring talent away.

OKI Data Americas Inc. Successful dealers will see opportunities where others Dan Murphy, Senior Vice President see barriers or do not have the skill sets to address them. of Marketing Dealers can leverage their long-term relationships with cusEarlier this year, at a BTA event in tomers to help solve problems with networking, disaster reAsheville, North Carolina, one pre- covery or other technological challenges that some dealers senter urged dealers to consider have traditionally ceded to IT resellers. including water and water coolers n The Real Threat: Complacency — It is easier not to in their portfolios of services. And, evolve and grow, but the threats to businesses that do not while not every dealer will heed adapt and grow are real. the recommendation explicitly, the overarching message Twenty years ago, dealers were the sole source of product should be clear: The next 12 months are a time to evolve information for their customers. Those days have passed, and invest. Dealers who resist market forces and rely on which can be an opportunity for next-generation dealers. their past relationships and comfort zones will quickly find End users are now much more savvy than their predecesthemselves left behind. sors. Today’s customer has already Googled potential soluThose who expand their product offerings, acquire new tions for his challenges before calling his dealer. skill sets and adapt to the changing demands of their cusAs the lines between IT resellers and dealers become less tomers will be poised for success in 2017 and beyond. distinct, flexibility is paramount. Too many companies in n Get Out of Comfort Zones — For dealers, change is each sector are relying on older skill sets or long-term conever-present. Mergers, acquisitions and advancements in tracts for their future business. technology change the portfolios available to customers.

Those who are satisfied with their current operations will Trends that shape how customers work — including flex- soon find that their complacency will force them to play ible workspaces and specialized technologies for individual catch-up with other competitors.

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by finding new ways for them to effecRicoh USA Inc. In 2017, we expect tively leverage services. To achieve this, Jim Coriddi, dealers will be taking long, hard looks at Vice President, dealers to get even how things work, end to end, in their cusDealer Division more deeply involved tomers’ organizations. They will invest In 2017, dealwith their end users by more heavily in understanding broader ers will be better finding new ways for issues facing their customers’ informapositioned to ofthem to effectively tion management challenges. And they fer more services, will find more ways to collaborate. software and hardleverage services.

We expect to see dealers add software to customers across a wide array of ware, services (both around the device vertical markets. What I mean by that is twofold. It means adding new offerings — both products and around the network) and production-print capabiliand services. And it also means adding expertise and in- ties to help. That means software like workflow automation sight. 2017’s most successful dealers will leverage the trust and information management options; collaborative soluthey have built with current customers to bring in new so- tions like whiteboards, projectors and unified communilutions to handle information management, helping to fur- cations systems; production print hardware and software; and whatever else it takes to make your customers’ busither expand their end-user relationships.

For a few years now, Ricoh has been undergoing a servic- nesses run better.

Ultimately, it all boils down to understanding the people es-led transformation. Our dealers are seeing the benefits of turning to services-led approaches, too. In 2017, we expect you serve across vertical and horizontal markets. For example, dealers to get even more deeply involved with their end users if you placed MFPs with a local hospital, it is a good idea to dig

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deeper into how they are used. How does about what a particular segment of the In the new year, our information move? Where does it go and channel needs. They can then focus on how is it used? That can point you to new how to understand each vertical market focus will be to enable and better ways to serve that customer. and its respective pain points. Finally, our dealers to provide Maybe you start offering print-tracking having great data about existing cusa better working software to help with HIPAA compliance. tomers allows dealers to market to new environment for their Maybe you look into plain-paper prescripcustomers with similar needs. That is customers by integrating tion printing offerings. Every market has when dealers can really start refining needs like these and they are not always their messages and providing valuethe right technology ... vertical-specific. Our advice is to talk to added integrated services that are speyour customers, study their needs, undercific to each customer’s needs. The abilstand their processes, get the tools to help them improve and ity to leverage this technology is not something dealers have earn their trust — and then start selling. traditionally invested in, but as the market gets more competitive, this type of edge becomes invaluable.

Sharp Imaging and Like dealers, end-user customers are also investing in Information Company technology to give them an edge in their businesses and of America (SIICA) provide better solutions for their customers. The complexity Mike Marusic, COO, Sharp of these solutions has made it increasingly difficult for dealElectronics Corp., and Executive ers to offer turnkey document management systems and Vice President, Marketing, SIICA other solutions that they had become accustomed to just a The past year has demonstrated few short years ago. To address this challenge, in 2016 Sharp the increasing competitiveness of the executed an aggressive plan to take its dealers into the IT document business as the latest mar- space by launching its vendor managed inventory program ket data shows that the industry continues to shrink year with Tech Data Corp., while simultaneously launching 16 over year. Because of this, business growth opportunities new MFP and interactive display models. Both initiatives will have to come at the expense of competitors. In fact, we are aimed at helping dealers expand their portfolios, which are seeing this manifest itself in a trend where larger deal- is a key aspect of Sharp’s strategy for 2017. erships are buying smaller dealerships in order to prosper.

In the new year, our focus will be to enable our dealers This has proven to be a quick solution for growth in larger to provide better working environments for their customdealerships. We are also seeing dealerships and some direct ers by integrating the right technology for the customers’ branches growing at the expense of profitability by operat- needs into their specific working environments. This means ing as low-cost providers in order to undercut the market that now, more than ever, we will offer customer packages and gain share. Unfortunately, the downside is that custom- for our dealers at specific companies that target our marers can become conditioned to look for cost as the only fac- ket and have a synergy effect with our product portfolio. For tor when making purchasing decisions. This can easily be- instance, the workflows at a law firm, at a doctor’s office or come a problem for dealerships that have little to offer other at a title company are all very different and need to be apthan price and can be “out-cut” by others. Both methods proached differently. In many cases, the technology deployed require a dealership to have access to cash and a strong bal- in each is unique to that market. Our access to one of the ance sheet. For all dealerships to survive long term in this broadest product offerings allows Sharp to provide dealers market, they will be challenged to expand their capabilities with a custom approach to each requirement. And now, with to leverage additional value for their customers beyond a enhanced packaging of solutions with some of our preferred cost-per-print or managed print services business model. vendors, Sharp dealers will be able to go into their customThe key to providing better value for their customers ers’ offices with confidence that they have access to prodwithout sacrificing margins will be for dealers to truly un- ucts that can support all aspects of their businesses. This is derstand their customers’ needs and leverage that in gain- a unique offering in the industry and one that focuses on the ing new customers. The best way to do that is to embrace need of the dealership to expand its business offerings. customer relationship management (CRM) systems. These We are confident that the dealers who embrace the new systems not only help businesses learn more about their market requirements of IT portfolio expansion and incustomers, but CRMs also help them tailor their messaging creased customer-focused business development will see more effectively. A good place for dealers to start is with their 2017 as a turning point in the growth and profitability of existing customers, who can provide a wealth of information their businesses.

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of content management needs and seToshiba Our Vertical360 program curity requirements.

America Providing resellers with products caBusiness ... provides dealers pable of streamlining customers’ daySolutions Inc. with in-depth education to-day document workflow needs while Scott Maccabe, and industry-centric improving their business processes President & CEO solutions to better is fundamental to this approach. The On behalf of address their customers’ recent introduction of Toshiba’s redeToshiba, I want to signed e-STUDIO platform allows dealthank our excelspecific challenges ... ers to quickly and easily customize their lent independent and direct reseller comcustomers’ user interfaces to seamlessmunity for its efforts in helping us exceed our goals in 2016. Our dealer partners continued to move the ly handle common tasks specific to their industries.

Beyond creating customizable user interfaces that allow needle for us as we again experienced year-over-year growth in MFP sales — both monochrome and color. We also contin- users in vertical market segments to operate more efficiently, ued to see an increase in demand for our expanding portfolio Toshiba is equipping our dealer community with a verticalized sales program. Our Vertical360 program is a comprehenof software solutions and MPS programs this year.

Much of this success can be directly attributed to our re- sive go-to-market methodology that provides dealers with sellers’ consultative approach. This concept — which is at in-depth education and industry-centric solutions to better the core of Toshiba’s “Together Information” philosophy — address their customers’ specific challenges and pain points.

Toshiba also continues to emphasize the importance of involves providing our customers with an industry-leading selection of products and services to address the continuum “Beyond Print” to our reseller community. Rather than a shift

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away from MFPs, we encourage dealers to app customization and development.

Customers can buy complement their clients’ other content The Xerox ConnectKey platform inmanagement needs. Dealers embracing cludes an easy app builder that virtually imaging devices from this approach have been successfully anyone in a dealership can use to create just about anyone. managing their customers’ complete custom apps for his (or her) customers.

What they really want array of content — be it print, electroniMarketing products that are configto know is: “What do cally or digitally on displays. Resellers ured for key markets is one way a dealer you offer that helps experiencing success in this area also can expand his win rate. One example understand the importance of investing is the health-care market, which has its me in my business?” in personnel familiar with the nuances own special requirements that can be involved in this specialized sales process. very complex to meet. We have recentAs a 140-year-old technology company with a reputation ly introduced The Xerox Healthcare Multifunction Printer for leading innovation, Toshiba intuitively understands the (MFP) Solution, which allows health-care professionals to importance of optimizing mobile and cloud technology to securely send and share patient information with a HIPAAaddress the constantly evolving needs of today’s business compliant clinical document exchange workflow directly users. Through our portfolio of products and services in- from our ConnectKey-enabled MFP. cluding MFPs, digital signage and thermal bar-code printCustomers are looking for help in eliminating painful ers, Toshiba enables clients to harness these technologies to processes and our dealers can help in important ways. One streamline and improve document workflow. Dealers and way is with customized applications to help streamline customers alike have also embraced our state-of-the-art e- their work. Another is to deploy an effective managed print BRIDGE CloudConnect tech support application. services (MPS) program that can eliminate the headache of Next year promises to be another successful one for our managing a fleet of print devices. dealer community. We will introduce more feature-rich Now, anyone can simply put devices under contract for products and services, enabling resellers to more effectively service and supplies — but to truly leverage the MPS opporsolve their customers’ workflow needs. In addition to pro- tunity, it takes more. Here, manufacturers need to provide viding the industry-leading training and educational op- support that makes a difference in the real world. portunities Toshiba is known for, we are developing impactXerox partners can leverage unequalled assessment and ful content for our annual LEAD event next May. Our team mapping services in addition to document, user and data is looking forward to going the extra mile to help our dealer analytics delivered through NewField IT technology. They community experience continued success in 2017. can win more deals and create greater opportunity for customer stickiness and pathways to expanding their presence Xerox Corp. within current accounts.

Darren Cassidy, President, One significant challenge we see for many dealers is their U.S. Channels Group online image. It is clear that most acquisition decisions are Xerox has a rich heritage of un- practically made before a customer ever talks to a sales repderstanding customer trends and resentative. This makes it crucial for dealers to put their best bringing innovative technology and online feet forward. First, how effective is your website? Are solutions to market that optimize you continually updating it? Are you managing and expanddocument management in an in- ing relationships through LinkedIn? creasingly interconnected, digital Our research leaves no doubt — a well-crafted online world. Specifically, the small and mid-size business (SMB) presence pays huge dividends. We help our dealers with an space is the fastest growing market that consistently stands in-depth website assessment that includes specific suggesout above all else in our research and is perfectly supported tions on how to improve. through our channel partners.

We believe the print space offers tremendous opportuCustomers can buy imaging devices from just about any- nity for growth, particularly in the SMB space. We also see one. What they really want to know is: “What do you offer the evolution in customer buying habits, preferences and that helps me in my business?” Dealers who spend the time expectations. Expanding your market presence will take to understand specific markets and application require- some investment in time and resources. Those who go the ments are in a much better position to succeed. The job of distance to become more customer relevant, market-spethe manufacturer is to provide training and guidance and, cific, leverage the MPS opportunity and make their online perhaps most importantly, a product line that enables easy presence a priority will be in a great position to grow. n 26 | ­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 6

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You’ve Come a Long Way Inkjet vendors’ long push to penetrate the office by: Charles Brewer, Actionable Intelligence

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ver the past 10 years or so, much has been written about perilous declines in certain segments of the home and office imaging markets. No segment has contracted more dramatically than the inkjet market, especially at the low end. While sales and shipments of inkjet machines enjoyed explosive growth from the early 1990s into the 21st century, demand for small- and home-office (SOHO) inkjet devices has experienced an almost decade-long slump.

The reason for the ongoing market contraction is not mysterious. The popularity of smart devices has cut down on the amount that end users actually print in the home and the emergence of wireless connectivity has eliminated the need for inkjet printers to be individually wired to PCs. So, people simply do not need as many consumer inkjet machines as they once did and the volumes those machines print in homes are dwindling.

The collapse of the lower end of the market has, of course, hit companies that market inkjet hardware and supplies hard.

Kodak, Lexmark, Memjet and Ricoh have exited the desktop inkjet space altogether, leaving Brother, Canon, Epson and Hewlett-Packard (HP) to battle over the remaining market share. Even with the retreat of certain key competitors, those firms that still market desktop inkjets continue to see shipments decline — and the market has yet to reach its bottom.

To buttress sagging revenue, inkjet hardware manufacturers are looking to move their desktop machines up market. Although they all continue to release plenty of new low-end devices, manufacturers have invested heavily to add enhancements and functionality to their latest inkjet offerings. As a result, inkjet machines have been improved significantly in terms of print speeds, duty cycles and overall functionality. A new class of inkjet machine has emerged that is tailored specifically to meet the demands of office users rather than cater to the needs of home users, which had typically been the target for inkjet devices.

A Long Time Coming Inkjet vendors have been trying — largely in vain — to penetrate the office for more than 20 years. HP has led the

Clockwise from top left: A veteran in the business inkjet space, HP released its first A3 inkjet device — the CM8060 (“Edgeline”) — in April 2007; HP said in September 2016 that it will bring to market a new line of A3 inkjet devices in 2017; and machines like the Epson Workforce Pro WFR8590 are based on Epson’s RIPS ink system, which features packs of ink that can print up to 75,000 pages. pack. As far back as 1993, HP was touting its Deskjet 1200C as a less expensive alternative to costly office color laser devices. HP then released the 2000C Professional series in 1998, which had a remarkably sophisticated feature set for an inkjet device at the time and was similarly marketed as a cheaper alternative to color laser machines. Despite being technically advanced, the reception from 20th-century office users to both machines was, at best, tepid.

HP is not the only vendor that has attempted to overcome business users’ persistent laser bias. Sporting heads with higher nozzle counts to support higher print speeds, Canon rolled out its technically advanced N1000 and N2000 office inkjets in 2002. Around the same time, Epson offered networkable models of its Stylus Color C80 and C82 printers for office users, as did Lexmark with its Z65N Color Jetprinter, which shipped with a network interface. Like HP, however, Canon, Epson and Lexmark all found that office users were fiercely loyal to laser technology for their business output.

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faced. Inkjet machines were perceived 250,000 pages, respectively, the CM8050 Inkjet machines were as lacking the adequate print speeds, and CM8060 were also hefty enough to media flexibility and duty cycles rewithstand the rigors of the office as well perceived as lacking the quired to support even small workas accommodate media in sizes up to adequate print speeds, groups. In addition, inkjets were often 12-by-18 inches. The machines featured media flexibility and based — at least in part — on dye-based a newly formulated pigmented ink set duty cycles required ink sets that were damaged easily by that supported the higher print speeds, to support even small moisture and often smeared if used while being almost impervious to moiswith a highlighter. Moreover, while the ture and office users’ dreaded highlightworkgroups. ink cartridges used in early businessers. With three unique print modes, class machines usually contained more Edgeline devices supported per-page ink and had higher page yields than supplies for consumer pricing that could be tiered depending on the amount of inkjets, the intervention rates and per-page costs associ- color ink that was applied to a page. ated with inkjet remained way too high for the office.

Regardless of the technical hurdles the Edgeline devices cleared, the products did not do well in the market. Due Scalable Print Technology mainly to the rotating drums used to present media to the In 2005, HP announced it had invested $1.4 billion to de- page-wide printing array, the CM8050 and CM8060 were velop an innovative process for manufacturing printheads, large and imposing. I understand the drums also caused which it dubbed Scalable Print Technology (SPT). Employ- registration problems when printing color pages and made ing a photolithographic process similar to what Canon used the Edgeline machines extremely heavy. Perhaps the largest to fabricate its printheads, HP engineers found they could problem was HP’s go-to-market strategy, which was based pack more nozzles, heaters and ink-supply ports onto a sili- mainly on the firm’s direct sales force and support from con wafer than they had in the past, and produced heads more traditional copier dealers. While HP’s internal salesthat would support faster print speeds. The “scalable” piece force managed to sell some Edgeline units, the firm failed to of HP’s new technology allowed it to produce printhead ar- attract the number of dealers it needed to make the line sucrays in varying widths for an assortment of applications, cessful. By 2009, rumors were circulating that HP had scaled from desktops to digital presses. back its Edgeline program and the plug was quietly pulled.

The HP Officejet Pro K550 line released in 2005 was the first desktop inkjet family to feature SPT printheads. With SPT Today 4,224 nozzles, the K550 heads more than doubled the nozzle While machines like the K550, CM8050 and CM8060 count of printheads deployed in previous generations of HP’s were discontinued long ago, the printhead technology that inkjet units. The K550 also broke new ground in various ar- debuted in those machines has been redeployed in some of eas to specifically overcome the office user’s laser bias. The HP’s most important machines. Updated and tweaked to machine featured a beefier duty cycle, faster print speeds, meet specific application requirements, printheads fabriduplex capabilities and was available network-ready — all cated using SPT processes are now used in a range of HP’s in a package that was much cheaper to acquire and operate most expensive equipment, including PageWide XL and Lathan comparably equipped laser devices. Once again, how- tex wide-format printers and PageWide web presses, as well ever, HP found the market response to be underwhelming. as in a growing number of business-class machines.

Arguably, HP’s most well-known line of early SPT deThe Officejet Pro X451dn and X551dw single-function colvices was its A3 Edgeline machines. With two offset 4.25- or printers, and the Officejet Pro X476dn and X576dw MFPs inch printheads configured to span the page, the CM8050 were released in 2013 and offered print speeds comparable and CM8060 were HP’s first devices with a page-wide print to the ill-fated Edgeline units. Thanks to an 8.575-inch array array. Unlike all of the HP inkjets that preceded them, the and a new paper path that eliminated the need for the clunky printheads in the Edgeline machines remained stationary rotating drum, the Officejet Pro X units were HP’s fastest while the media being imaged passed by them on a rotating desktop inkjets ever when they were released. The X451dn drum that was heated to enhance ink drying time. and X476dn could print monochrome and color documents The fixed printing arrays improved the print speeds of the at up to 55 ppm, and the X551dw and X576dw were capable CM8050 and CM8060 so they could compete directly with of printing up to 70 ppm. Featuring an updated version of the traditional color electrophotographic copiers. The Edgeline page-wide array released in the desktop models, HP released units delivered monochrome and color jobs at up to 71 pages the Officejet Enterprise Color X555 printer series and Officeper minute (ppm). With monthly duty cycles of 220,000 and jet Enterprise Color MFP X585 family for larger businesses in 28 | ­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 6

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2014. The A4 X555 and X585 supported has released a line of WorkForce Pro A4 Excluding ink cartridges, print speeds up to 70 ppm. and A3 machines featuring large Mylar HP claimed that its Officejet Pro X bags with enough ink to print tens of the list of long-life products were popular with office users, thousands of pages, which reduces endcomponents used in the which, if true, would mark a significant user intervention rates and creates lower [HP PageWide] machines shift in end-user opinion toward inkjet. operating costs. The WorkForce Pro units total just seven ...

At the time of their release, HP executhat can accommodate the large ink bags which should help keep tives said the company was overwhelmed feature Epson’s Replacement Ink Packs by orders and it struggled to keep up System (RIPS). RIPS units were initially operating costs ... low. with demand. This year, HP refreshed launched in Europe in 2014 and made its so-called OPX line with nine new A4 their North American debut early in 2015. machines, including single-function printers and MFPs. AlEpson has a legacy of reducing the operating costs of certhough the new machines feature page-wide arrays similar tain inkjet units to enhance the devices’ value propositions. to their predecessors, HP rebranded the Officejet Pro X units In 2008, it released its B-300 and B-500 units featuring large “PageWide” and has made certain they are even faster, as well tanks with pigmented inks that offered some of the lowest as more robust in terms of duty cycles. HP also rebranded the per-page costs from an inkjet device at the time. In the conOfficejet Enterprise Color units as its PageWide Enterprise sumer space, Epson has taken market share from its rivals Color line and released five new printers and MFPs. by marketing machines with ink reservoirs that end users In addition to rebranding and expanding its A4 business- can replenish as needed, rather than purchase cartridges. class inkjet line, HP announced in September that it would This unique approach to consumables came in response to re-enter the higher end of the A3 market with its first inkjet- the losing battle Epson fought against continuous-ink supply based units since its Edgeline machines. Depending on the systems (CISS) marketed by third-party supplies vendors in device, the new PageWide-branded color A3 printers and various emerging economies. Epson’s L-series devices, which MFPs offer print speeds of 60 to 80 ppm. In addition to using featured factory-equipped CISS units, were first released in certain existing channel partners, HP says it plans to add Asia in 2011 and later migrated to other regions. Last year, more BTA dealers to its channel lineup. HP also added two Epson unveiled its EcoTank line of consumer machines with new A4 PageWide inkjet printers and three new A4 Page- CISS units in North America and expanded the line this year Wide MFPs, which will also be sold exclusively by the chan- with a couple of new A4 machines and an A3 unit. nels offering the new A3 inkjets.

Aside from successfully attacking the consumer space Although the company did not offer many details about with CISS units, Epson is investing in placing more of its its new machines (such as pricing), HP representatives say inkjet machines in the office. With a tagline that claims the new PageWide machines provide advantages in three key “Where there is business, there’s Epson,” the company has areas: lower service costs/maximum uptime, more afford- initiated a number of media buys in markets across the able color printing and improved security. Excluding ink car- United States, including where I live. As an avid National tridges, the list of long-life components used in the machines Public Radio listener, I have been hearing Epson’s radio total just seven — including the waste collection units, service spots in the Boston, Massachusetts, market for the past year sleds and the 11-inch print bar itself — which should help keep or so. I have also seen billboards and electronic media with operating costs and maintenance interventions low. By com- the same message in airports and other locations. parison, HP claims that rival A3 color electrophotographic According to research done by my company, Actionable copier/MFPs from firms like Canon, Konica Minolta, Ricoh, Intelligence, Epson has also been working hard to woo traToshiba and Xerox use a long list of parts — such as drums, de- ditional office technology dealers to inkjet. In an attempt velopers, fusers and transfer belts — that can total anywhere to get them to pilot the RIPS line, Epson has engaged with from 31 to 72, depending on the model. HP also provides its many dealers with fairly lackluster results. It has successchannel partners with a cloud-based suite of tools in its HP fully partnered with the Columbus, Mississippi-based disSmart Device Services for remote monitoring and predictive tributor Impression Solutions Inc. (ISI) to reach the more diagnostics to reduce downtime and keep service costs low. than 1,000 dealerships it supplies. But, overall, it appears that the dealer channel has been slow to embrace Epson’s Epson Comes On Strong WorkForce Pro machines featuring RIPS technology.

While HP has grabbed a lot of headlines this year, it is not One problem that Epson may be facing is the speed of its the only inkjet vendor serious about taking market share from RIPS devices. The company quotes a top speed for the line firms that market electrophotographic machines. Epson of 24 ppm, which is rather slow for a business-class device. www.offi cetechnol ogymag.com | De c e mb e r 2016 | 29

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for example. But, once the channel buys If speed is the issue, a solution may be Over the past five years, into a new technology and end users are just around the corner. In a 2015 intereducated, inertia builds and success view done by Business Today India, Seiinkjet machines have fuels more success. Although it is still ko Epson Global President Minoru Usui begun to penetrate the early (despite the long, torturous road said that with the development of Preoffice, and the growing they have followed), I think that is what cisionCore printhead technology, which availability of hardware is currently happening with office inkjet produces heads densely packed with ... should further drive devices. Over the past five years, inkjet nozzles, the company can bring to marmachines have begun to penetrate the ket machines capable of printing up to that momentum. office, and the growing availability of 100 ppm. Other Epson executives have hardware and increased marketing dolindicated that the company will soon launch products featuring what has been termed “line- lars should further drive that momentum.

The Epson and HP units discussed above have the print head” technology, which I take to be a page-wide array.

Epson has been marketing an array of PrecisionCore inkjet speeds, output quality and reliability to go toe-to-toe with printheads in label printers for some time, so an office de- electrophotographic devices, and I predict these types of inkjet devices will become popular with end users over the next vice is the next logical extension of the technology. two years. The machines also provide low operating costs, which should make them perfect for managed print services Inkjet Is Gaining Traction It takes a long time for new technologies to become estab- and other programs designed to help lower printing costs. If lished in office technology equipment markets. Look at how the market grows as I suspect it will, look for the two remainlong it took for the market to fully embrace color machines, ing inkjet vendors, Brother and Canon, to explore the opportunities office inkjet offers. Both firms have technologies that should allow them to compete with Epson and HP’s hardware.

The only question I have is this: How big will inkjet become in the longer term? From all indications, the answer should be “Pretty darn big.” Although some might argue that inkjet can, at best, be a niche type of product, I maintain that the appeal of these machines is much broader. Inkjet devices should do well in small businesses where end users value machines with a small form factor and that operate reliably and quietly. The machines should also be attractive to larger customers in the enterprise space and in governmental organizations that are looking for ways to support and promote more environmentally sustainable printing. And, everyone, regardless of size, will welcome the lower operating costs inkjet can provide. n Charles Brewer is president and founder of Actionable Intelligence. With more than 20 years covering technology, he was previously an editor for Inc. Magazine and ComputerWorld, and managing editor of The Hard Copy Supplies Journal, a monthly newsletter on digital imaging consumables published by Lyra Research. Actionable Intelligence launched its website in 2011 and, today, it is a destination site for news and analysis related to the hardware and consumables markets. Hundreds of thousands of users have visited the site, which now features more than 2,000 posts. Brewer is a popular industry speaker and presents regularly at various events in China, Europe and North America. He can be reached at (508) 528-1297 or cbrewer@action-intell.com.

Visit www.action-intell.com.

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EDUCATION CALENDAR January 9

Building My Business Webinar: “gap intelligence’s State & Direction of the Office Technology Industry” In this webinar, Jake Fishman of gap intelligence will provide insights into the factors influencing the office technology industry and how industry players are evolving their strategies to find and drive growth today and into the future. The webinar will touch on product and pricing trends, channel trends, differentiation and diversification strategies, and industry consolidation. It will conclude with a strategic overview of the leading manufacturers. Visit www.bta.org/Building MyBusiness to register.

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BTA MPS Client Engagement Training Series The BTA MPS Client Engagement Training Series, led by Mike Lecak of Collaborative Consultant Group, consists of six one-hour, web-based courses designed to assist participants in the following: getting the appointment; MPS value propositions; conducting the appointment; the assessment; the proposal; deal implementation; and client management. During the six-week session, there will be three one-hour, one-on-one coaching sessions in addition to the online training sessions. During these sessions, you will be working with Lecak on three of your specific accounts. You will be taking these opportunities through the sales process, from appointment through the assessment to the proposal and contract. You will have a chance to gain valuable insight while working on actual “live” prospects. Visit www.bta.org/MPSClientEngagement to register.

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BTA Strategic Sales Semester Determining which accounts and which opportunities require a transactional approach and which accounts require a strategic approach is a skill required to be successful today and into the future. Growth Achievement Partners’ Strategic Methodology Framework (SMF) is a stepby-step sales process that contemplates the transactional and strategic sale, and is specifically designed for the office technology industry. The BTA Strategic Sales Semester consists of 13 online training sessions held over six months. These sessions are 45 to 60 minutes in length and geared to specific parts of the sales process. Each module includes skill-building exercises and field-based activities reps will be asked to complete. These online training sessions include opportunities for polls, test questions and interactive Q&A. Participants will also receive the modules in an app so they can listen to training anytime, anywhere, and repeat sessions or establish a library for future use. Visit www.bta.org/StrategicSales to register.

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

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

Dealer Members Ameritechnology, Saddle Brook, NJ DocResources, Crosby, TX Paladin Managed Solutions, Springfield, MO Saratoga Technologies, Johnson City, TN Vendor Associate Member ESHA Corp., East Brunswick, NJ For full contact information of these new members, visit www.bta.org.

CompTIA Resources & Discounts As a non-profit trade association, CompTIA advances the global interests of IT professionals and channel organizations, and enables them to be more successful with certifications and business credentials, education, resources and the ability to connect with industry experts. CompTIA offers BTA members 15-percent discounts on many of its certification exam vouchers, including CDIA+, Cloud Essentials, Healthcare IT, Network+, Security+ and more. In addition, CompTIA’s Managed Services Community allows for collaboration of best practices to improve the IT industry as a whole. Its members run the gamut from experienced managed service providers (MSPs) to new MSPs to managed service vendors to IT industry thought leaders.

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 Depot International provides comprehensive technology solutions that include printer parts, computer and server parts, IT services and training programs. It offers its customers quality parts and services at competitive prices. Depot International is an HP PartsOne and Lexmark Elite parts distributor, and it stocks an extensive selection of parts from brands that include HP, Lexmark, Xerox, Dell, Lenovo and IBM. Through its closed-loop processes and empties collection programs, Depot International collects and remanufactures maintenance kits, fusers and small electronics. www.depotintl.ca

Visit www.bta.org/CompTIA for details on BTA’s partnership with CompTIA.

BTA Service Associate member Learning Outsource Group offers its clients an array of sales and sales management training and consulting services to meet the ongoing demands of human resource development. In this unpredictable era of high-velocity change, organizations must develop their most valuable and only sustainable competitive resource – their people – with developmental programs that improve skills and performance, and create the foundation for practical and continuous application. The company provides integral and flexible processes, services and learning exchanges designed to maximize this resource. www.learningoutsourcegroup.com

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

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

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COURTS & CAPITOLS

The Ransomware Threat How much is your data worth? by: Robert C. Goldberg, general counsel for the Business Technology Association

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e all have heard about the attorney who dies without a will, but what about the dealership owner who fails to back up his (or her) company’s systems or keep its antivirus software and/or firewall up to date? I received a call from a dealer recently that was urgent, high anxiety and required immediate guidance. A pop-up message appeared on his desktop computer advising that his computer had been locked and unless he paid money to the entity within 36 hours, he would not have access to the data on his device again.

The dealer was a victim of locker ransomware, which locks the user interface, denying access to computing resources. Unlike crypto ransomware, the dealer’s underlying system and files were not encrypted or touched. Through the assistance of another BTA member, a technician was able to remove the locker ransomware and restore the owner’s access to all of his files, financial information and records. This was a good result that could have been devastating.

As indicated, crypto ransomware is malware designed to find and encrypt valuable data stored on the computer, making the data useless without a decryption key — a key that will be provided if the demanded amount is paid. Without backing up your data on a regular basis, the loss of files could be permanent. Consider what the cost to your business would be if your data were no longer available. Ransomware is becoming a greater threat each day.

Ransomware may enter your computer in several ways, although the actual method may not always be clear. A common method is through redirected traffic from one website to another. Often, the redirected traffic originates from an adultcontent-related website. Malicious advertisements (“malvertisements”) can also release malware if someone clicks on them. Spam email has always been a source for malware, especially when opening attachments from unfamiliar senders. Criminals will pose as potential customers in order to get someone to pay attention to their emails. Some emails will even spread the malware to all of your contacts and seek to infect them as well. Infected software that has been downloaded may also be a source.

Ransomware is not limited to personal computers — it may also infect servers and mobile devices. Criminals seeking to extort money update their malware and techniques on a daily basis. Are you doing the same in terms of prevention? Do you have backup and disaster recovery plans? Often, these plans do not extend to individual end users who may operate the most

vulnerable equipment. Does the developer of your ERP software have safeguards in place? Is the data backed-up automatically?

Is it stored safely in the cloud? If you are a victim of crypto or locker ransomware, can your ERP provider have you up and running immediately without paying the criminal? Have you tested your plans to see if they operate as envisioned?

The average of ransoms paid is $300, however, the demands are usually far greater. Amounts have been negotiated. Criminals often release a few files to demonstrate their control and ability to do so. Payment must be anonymous and typically paid in bitcoins or Litecoins. Although many ransoms are not reported, one study has found that ransomware infects 68,000 computers a month.

As we become “trusted advisors,” security and ransomware are excellent areas in which to counsel your customers. However, that is the second step. The first is to secure your own devices and systems. Create backup and disaster recovery plans and test them regularly. Avoid clicking malicious links or attachments, and patch exploitable software vulnerabilities. There are numerous tools available to remove ransomware, but it is more important to prevent it in the first place. n Robert C. Goldberg is general counsel for the Business Technology Association.

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PRINCIPAL ISSUES

Moving Forward With Change Developing your plan & making decisions by: Ken Edmonds, Service Management Coach

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n my article that appeared in the November issue of Office Technology, “Change is Imperative: Questions need to be asked before moving forward,� I reviewed some of the data necessary to launch a new managed IT services program for your dealership. After the information comes in from the management team, you are ready to finish developing the plan and to make decisions. Several pieces need to be compiled to create your final document. In this article, I will discuss some of these items, though you will probably find some additional items to include as well.

Budget Each of your department heads should have provided you with an estimate of the investment needed in his (or her) department to go forward with this project. The next step is to create a master budget and projected cash flow statement for the implementation phase. It is important to know what the total costs will be and the approximate monthly cash requirement. This number will need to be included in the overall company cash flow projections to make sure the needed funding is available.

I recommend adding a cushion to the cash flow statement as expenses usually exceed expectations. I would also reduce the expected income from the new service significantly, as most sales projections get inflated. Once the new program is operating and generating revenue, it becomes easier to project the numbers.

Timeline You will want to request a timeline from each department head that starts from the day the decision is made until all of the tasks associated with the new program are operational. For example: +120 days to complete sales training. This allows you to understand the flow of tasks that need to be completed in each department and create a master schedule for the new program.

Effect on Compensation This is an important area to evaluate. If your managers receive bonuses based on the profitability of their departments or on managing to a percentage of revenue, a new program will only generate additional expenses for a period.

Department heads should not be penalized for helping expand the business.

Additionally, as new employees are hired in the various departments, appropriate compensation plans need to be developed. Also, if existing sales reps are being tasked with learning

to sell the new program, their compensation will need to be adjusted to allow them to make the transition.

Return on Investment Once you have the total investment required and the approximate period to get the new program functioning, then you can calculate the return on investment (ROI) for the project. I recommend looking at this over five- and 10-year periods to see if the projected return justifies the investment.

Making the Decision Obviously, every dealer will evaluate the business plan differently, but there are several factors that are worthy of consideration. ROI is a factor that most will consider. Is this the best use of the required capital? Is there somewhere else I could invest this capital and generate a higher rate of return?

Is there a strategic advantage to offering this product or service? Will this allow me to attract new customers or help the company retain customers that might otherwise leave? Is this truly a service that our customers and potential customers will pay for? After developing the plan and weighing your decision factors, you can make an informed decision that will make sense for you and your company.

Implementing the Decision Once you have made the decision to move forward, each

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department head will need to know what changes you made to his budget and the timing of funds availability to his department.

information they provide. Using this process will maximize your success and you may find that it helps you recognize unprofitable or unmanageable expansion. n Ken Edmonds is currently employed as a district service manager for a major copier/ MFP manufacturer. He has an extensive background in the imaging business, having owned a successful dealership, served as service manager for multiple dealerships and as a document solutions specialist for Sharp Electronics. Additionally, Edmonds has more than 40 years of experience in the electronics and computer fields.

He has attended BTA’s FIX: Cost Management for Service workshop, Pros Elite service manager training and the Service Managers Achieve Results training conducted by John Hey and John Hanson for Sharp Electronics. Edmonds also completed the University of Wisconsin training program for technical trainers. He can be reached at ken.edmonds@CKE-Enterprises.biz.

It is important that adjustments to the ... plan are made as soon as possible ... By making adjustments early ... it is much easier to generate positive momentum.

Monitoring & Managing After the implementation process has begun, the progress of each department needs to be monitored to make sure that everything is on schedule and on budget. The monitoring and managing phase can actually be divided into two phases. Regular management team meetings will be very helpful in this process.

Prelaunch During the run-up to the program launch, the two biggest concerns are the budget and the schedule. In most cases, both the service department and the sales department will have codependent schedules. If either one falls behind, it will affect the ability of the other department to meet its objectives.

During this phase, it will be critical to get the appropriate processes in place to make sure that everyone knows how to handle the paperwork and what to expect when customers call for support. All of these things will need to be documented in writing and training will need to be provided to the staff. It will be helpful to have simulated customer calls processed and worked through the system to identify areas that need improvement.

You will want to make sure that everyone understands what is covered in all agreements and what will be considered billable. If a call comes in that needs to be billed, everyone needs to know how to bill the customer and how to handle a customer who thinks the call should not be billed.

Post-Launch After launching the new product or service, you need to monitor sales revenue and compare it to projections. This will help to identify what changes need to be made, if any. You may find that additional marketing efforts are needed to support the new product or service.

It is important that adjustments to the business plan are made as soon as possible. If the sales and service department employees develop negative attitudes about the new offering, it may doom the endeavor. By making adjustments early in the process, it is much easier to generate positive momentum.

A Permanent Process While this article focused on managed IT services, this process could apply to any change being made to your business. The first time you work through this process will be the most time consuming and difficult. As you apply this process to future decisions, you will find that it becomes easier and your staff members will become more proficient and accurate in the

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PRINCIPAL ISSUES

Convergence 2016 Ricoh hosts national dealer meeting Oct. 24-26 by: Brent Hoskins, Office Technology Magazine

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ith an emphasis, in part, on the company’s commitment to a now more streamlined dealer channel, Ricoh USA Inc. hosted its Convergence 2016 national dealer meeting Oct. 24-26 in Las Vegas, Nevada. The meeting drew a record number of more than 1,200 attendees.

Martin Brodigan Currently, Ricoh in Japan is developing its three-year plan for fiscal years 2017 to 2019, establishing the company’s business goals, said Jim Coriddi, vice president of Ricoh’s Dealer Division, in the meeting’s opening general session. “Why is that important for you to know?” he asked. “Because a major Jim Coriddi part of the Ricoh plan is based on continued growth and continued investing in the dealer business.

There’s a lot of excitement about our dealer network.”

Coriddi noted that during the past five years, all of the growth achieved through Ricoh Family Group (RFG) dealers has been achieved with fewer dealers. “It wasn’t that long ago that we had almost 1,000 dealers — Ricoh, Savin, Lanier and, at the time, Gestetner. Today, we’ve established all this momentum through a select group of RFG dealers — 403 of the best dealers in the industry.”

Based, in part, on the “competitive advantage” provided by the collaborative nature of the relationship Ricoh has with its dealers, Coriddi announced that during the past five years, unit sales through dealers has increased by 28 percent.

“During that same time frame, the dealer share of Ricoh U.S. units has grown consistently,” he said. “As of FY2016, dealers represented 37 percent of total Ricoh U.S. units and you’ve expanded to 39 percent of office color.”

In his general session presentation, Martin Brodigan, chairman and CEO of Ricoh Americas, likewise emphasized the significance of the company’s dealer channel. “In 2010, dealers represented 30 percent of our unit sales,” he said. “When we met in 2012, we were very happy to announce that we had increased that figure to 32 percent. Now, in just four years, we’ve raised that number to 37 percent of our total U.S. sales.”

Brodigan reminded dealers of Ricoh’s commitment to them in 2012, which he shared when he first became chairman and CEO — to be open, honest and agile; to make all of Ricoh Americas’

assets available to its dealers; and to be an easier company with which to do business. “That commitment to you has not changed and will not change,” he said. “It remains firm.”

Convergence 2016 provided more than an opportunity for Ricoh to express its devotion to its dealer channel. During the meeting, the company announced: n The Ricoh Application Site, which offers device-based applications ranging from informational widgets to advanced workflow components. The apps will be available with automated installation on Ricoh’s new and enhanced, next-generation Smart Operation Panel (SOP)-equipped multifunction printers (MFPs). n Plans to release a number of next-generation software products redesigned to take advantage of the power and usability of the SOP interface. Collectively, the SOP, apps and related software are all components of Ricoh’s Workstyle Innovation Technology, enhancing the scalable ecosystem made available through Ricoh’s newest devices. n Its latest black-and-white MFP series. At speeds of 65, 75 and 90 pages per minute (ppm), respectively, the new RICOH MP 6503/MP 7503/MP 9003 series is designed to help move information more quickly throughout high-volume environments, enhance collaboration and streamline work for all employees, including remote and mobile workers. n A new color MFP series. The RICOH MP C2004 and RICOH MP C2504 color MFPs, featuring Ricoh’s SOP, print A3 documents at 20 ppm and 25 ppm, respectively. Banner print capabilities also come standard, and specially designed rollers and guides help reduce paper curl for improved stacking on larger jobs. n A portable solution that supports the ever-growing mobile workforce and the increased need for more collaboration in smaller spaces. The new RICOH Interactive Whiteboard D2200 unifies experiences from several standalone devices, such as interactive whiteboards and video conferencing systems, into a portable 21.5-inch device. For both in-person meetings and video conferences, the device can be used to present, share and annotate designs, blueprints, lessons and other presentations securely, and help keep participants on the same page. Its small footprint is intended for today’s mobile-driven teams, as well as smaller offices and conference rooms. n Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine.

He can be reached at brent@bta.org or (816) 303-4040.

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PRINCIPAL ISSUES

Your Most Important Skill Increasing your win ratio with new hires by: Troy Harrison, Troy Harrison & Associates

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hat is the most important skill in your skill set? By “your,” I am referring to the managers and business owners who make up the majority of this magazine’s readership. You might be making any number of guesses right now, but since I am known as a sales guy, you are probably thinking that I mean “the ability to sell.” It is true that sales is one of the most important skills, however, for a business owner (if you have a business that consists of more than one person), your most important skill is your ability to consistently hire and retain quality employees.

Think about it. How many successful businesspeople do you know who cannot surround themselves with good employees?

I would bet that there are very few. There are very few because very few businesses can survive with one great owner and a cast of mediocre employees. That is just life.

So, the question is: Are you great at hiring and retaining employees? Let me give you my measurement of being “great” at hiring. It means that you can, consistently and repeatedly, win on at least 75 percent of your hires. That is a tall order for anyone. What is considered a “win”? That depends on your definition. When I was recruiting salespeople for clients, my definition of a “win” was that the salesperson ramped up to quota in the designated time and stayed at or above quota for three years. In other words, we got at least three years out of a highly productive salesperson. My own hiring accuracy ratio was more than 80 percent.

Does this mean that I am some sort of hiring genius? Not necessarily. Success at hiring is not about your instincts or your ability to read people. Business owners love to pride themselves on these things, but they are not what creates hiring success. “Instinctive” hiring rarely gets more than a 50-percent win ratio. If you want to hire at or above that 75-percent ratio, you need to do the following things: n Hire with the end in mind. This means that your hiring is preplanned, you have identified your needs on paper before you start looking for a person, and you hire the person who has a high level of fit for your organization and the position, and reject those who do not. n Have a winning hiring process that is repeatable and repeated, that generates consistent results, and that is constantly refined and updated as skills improve and information becomes more accessible. A hiring process is a set of steps that is followed every time a similar hire is made. However, the process can differ between types of hires. For instance,

your process might differ significantly between hiring a CFO and hiring a warehouse worker, but you would have repeatable processes for each. n Remain emotionally detached. One of the biggest indicators of a failed hire is an interviewer who becomes emotionally attached to and invested in a candidate early in the process. Once that happens, that interviewer is likely to ignore red flags and other signals that the candidate is not a proper fit for the position. n Hire based on the hiring hierarchy of traits, then skills, then experience. This is the reverse of how most hires are made and it is the reason most hires fail (on average in American businesses, only about 33 percent of hires prove to be successful). Most of the time, companies look for similar experience and test for job skills, but ignore traits. Traits are those things that we are; they are not coachable or teachable.

For instance, I am 5 feet 10 inches tall. The best coach in the world is not going to make me 7 feet tall, so I am probably not trait-fit for a job as a basketball center. That is an extreme example, but I hope the meaning comes across. A person who is trait-fit for a job as an accountant is likely not going to be trait-fit for a job as a salesperson, and vice versa. n Use the best available tools for discovering and assessing a candidate’s fit. There are hundreds of thousands of employee assessments out there. Most of them are junk, created on someone’s kitchen table with no scientific backing www.offi cetechnol ogymag.com | De c e mb e r 2016 | 37

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(5) Do your due diligence, including refor basis. There are a handful out there that erence and background checks. are good and meaningful. While we will ... You can get a quick (6) Do a second interview in a behaviordelve deeply into assessments in a future reading of the validity al interviewing format (behavioral interarticle, you can get a quick reading of the of any assessment viewing is the silver bullet of hiring). validity of any assessment by asking the asby asking the (7) Do a psychometric assessment using sessment company for a technical manual. assessment Wiley’s Profile PXT assessment to discover Most assessments do not have one because and fit traits. science was not a factor in creating them. company for a (8) Make an offer.

I would be willing to bet that you are technical manual.

For now, compare your hiring approach, looking at your own hiring processes right processes and results to what we have talknow and seeing that you might be missing the boat on one or more of these steps. That is OK. In the com- ed about and see where you might have gaps that are hurting months, we are going to be spending more time on them. ing your results. If I can be of help, contact me directly. This For now, I think this process is a good way to start. So, outlined should keep you busy until the next issue. n Troy Harrison is the author of “Sell Like You Mean It!” simply, here is the process I used in more than 100 searches to and“The Pocket Sales Manager.” He is a speaker, generate a winning hire more than 80 percent of the time for consultant and sales navigator who helps companies my clients: build more profitable and productive sales forces (1) Design the person on paper first. Outline his (or her) duwith his cutting-edge sales training and ties, performance metrics, compensation, traits and skills. methodologies. For information on booking (2) Cast a wide net with a catchy, marketing-oriented job speaking/training engagements, consulting or ad. CareerBuilder and LinkedIn are my favorite venues. to sign up for Harrison’s weekly e-zine, (3) Do a five-second résumé screening, followed by a call (913) 645-3603 or five-minute phone screening of accepted candidates. email troy@troyharrison.com.

(4) Do a résumé-focused first interview that is designed to Visit www.troyharrison.com. break down false claims, numbers, etc.

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