June 2006 Office Technology by Business Technology Association

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Co nsu lta nts , Inc . – Ma rke tin g Re sea rch

“Copier Manufacturer of the Year”– The Cannata Report’s 20th Annual Dealer Survey

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CONTENTS Volume 12 No. 12

FEATURE ARTICLES 10

Automated Metering Have you taken a look at today’s solutions?

Close-up: Sharp OEM’s training program reflects dealers’ needs

by Brent Hoskins Office Technology Magazine

by Mike Marusic Sharp Document Solutions Company of America

While the pricing and functionality of today’s softwarebased automated metering solutions may vary, the result is the same — electronic submission of meter reads that occurs quietly in the background.

Sharp’s training philosophy is to build tools that help dealers address key needs. First, it provides training on all Sharp software and hardware products. Next, it helps dealers train salespeople. Finally, it assists dealers by training their customers.

‘Expect the Best’ Kyocera Mita America hosts FY ’07 dealer meeting

Equitrac: A Briefing Software vendor meets with industry press

by Brent Hoskins Office Technology Magazine

With a focus on its expectations for continued growth and commitment to the dealer channel, Kyocera Mita America Inc. hosted its FY ’07 national dealer meeting, April 18-20, in Orlando, Fla. The event drew 1,500-plus attendees, including both Kyocera and Copystar dealers.

Cost recovery and copy and print management software vendor Equitrac Corp. is poised for continued growth in the coming years. In fact, says the company’s president, Equitrac is striving to grow revenues 20 to 30 percent over the next several years.

Training New Hires The old way of doing things will no longer work

The Solutions Transition Your ‘acres of diamonds’ are all around you

by Jim Strauss Motive8s Inc.

by Robert Abbott COMDOC Business Systems

In the past, sales managers could provide new people with about five to 10 days of basic sales training and send them into the street. Today’s sales reps need to learn much more, considering the complexities of the industry. It is a change for both reps and dealerships.

For many, the transition to solution sales is a “profoundly pesky obstacle.” For those dealerships that have not moved forward, where does the transition begin? Here is a look at seven steps that can guide dealers through the process.

COURTS & CAPITOLS 23

PRINCIPAL ISSUES

High Fuel Costs How are you dealing with this predicament?

DEPARTMENTS Business Technology Association

August-September Education Calendar

by Robert C. Goldberg BTA General Counsel

How can you deal with the huge increase in gas prices? Can you legally pass the rising fuel costs on to your accounts? Clearly, it is the small business owner who is most affected. Here is a look at a two-pronged approach to dealing with this problem. 4 | www.of ficetechnologymag.com | June 2006

Editor’s Page

BTA President’s Message

Advertiser Index

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EDITOR’S PAGE

How Does Everyone View This Industry?

s I watch the dealer channel transition from an emphasis on “selling boxes” to an emphasis on “selling solutions,” I often wonder how everyone views today’s products and services. That is, do manufacturers, dealers and end-users have the same vision when it comes to office technology? Are they in sync? I don’t know the answers, but I can imagine the following thoughts among the three parties. The Manufacturer — “We reviewed the quotas for each of our U.S. dealers. It looks like most of them will achieve their quota in June, although a few need some special attention. I believe we’ll increase unit placements of our new AB2030C by 2 percent this month. If the model reliability is as good as the factory says it is, then we will remain on track to achieve an increase in market share by the end of the year. “To consistently achieve our monthly numbers and stay with our plan for the year we need all of our people focused and sharing the same message with dealers — if we are ever to become the market leader. Are we doing everything we can to help dealers sell more machines? I think the software is helping. However, I’ve heard reports that some dealers do not believe we are doing enough, despite all of our Internet and in-person training and support initiatives. Perhaps we need to step things up a bit.” The Dealer — “It is an exciting time to be in the office technology industry. Yet, the challenges are greater than ever, particularly with ‘solution selling.’ We saw all of 6 | www.of ficetechnologymag.com | June 2006

those software vendors at the national dealer meeting, but our quotas remain solely tied to hardware revenue. How can the reps here at XYZ Copiers Inc. perform ‘needs analyses’ and offer ‘solutions to workflow problems’ when our OEM is still focused on hardware revenue? “I know it can be done. It is inspiring to me when I consider how many other dealerships have made this transition. In many cases, these dealerships do not even resemble what they were in the early years. We want the same to be true for our dealership, but it is not going to be easy. “I keep thinking of the same questions: Do I need to hire a ‘specialist’ to oversee the software side of our business? What happens if the software fails to perform? What if our OEM someday ends its alliance with the software vendor it is currently pushing? Will I be left out in the cold?” The End-user — “This old copier of ours has seen better days. From what I hear, I need one of those MFPs that will also print and copy in color. I’ve heard that these devices will help us solve a lot of the issues we’re facing right now with our documents. “I could be wrong, but it seems like all of these MFPs are pretty much the same. That leaves price vs. support and service. I could just find the cheapest price. However, I do like the way the rep at ABC Office Technology Inc. talks about his company. He’s asking all of the right questions. And I don’t think he even mentioned a ‘machine’ in that first call. I’m tired of only hearing from someone when it’s time to renew my lease. I need a ‘technology partner,’ not just a machine supplier. Let’s get the rep from ABC back out here.” — Brent Hoskins

Editor Brent Hoskins brent@bta.org (816) 303-4040 Contributing Writers Robert Abbott, COMDOC Business Systems www.ecomdoc.com Robert C. Goldberg, General Counsel Business Technology Association Mike Marusic Sharp Document Solutions Company of America www.sharpusa.com Jim Strauss, Motive8s Inc. www.motive8s.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 McLaughlin Membership Marketing Manager valerie@bta.org Gary Hedberg Accounting Manager gary@bta.org Mary Hopkins Accounting Clerk mary@bta.org ©2006 by the Business Technology Association. All Rights Reserved. No part of this publication may be reproduced by any means without the written permission of the publisher. Every effort is made to ensure the accuracy of published material. However, the publisher assumes no liability for errors in articles nor are opinions expressed necessarily those of the publisher.

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BTA PRESIDENT’S MESSAGE ®

Thank You for the Opportunity to Lead

he arrival of June brings with it the final days of my service as the Business Technology Association’s 71st national president. It has been a privilege and an honor. Thank you for the opportunity to lead your association. Like many of you, my company has been a member of BTA for a number of years. Shortly after my father, Earl Naylor, founded in 1957 what is today ABM Automation here in Oklahoma City, he joined the association. Our company has benefitted from its membership in so many ways through the years. When I think back to the countless BTA members who have given selflessly of their time, ideas and business practices to my benefit and the benefit of so many others, I am simply amazed. The caliber of the individuals I have met through BTA is unmatched. So, too, is the guidance and wisdom they have shared. With these thoughts in mind, I am grateful to have had the opportunity to give something back to an association that has given me so much. I am pleased with the strides we have made during these past 12 months. Of particular note is our new alliance with the Business Products Council Association (BPCA). This peer-to-peer, best practices association epitomizes the core value BTA brings to its members — dealers helping dealers. Your Board of Directors recognizes the importance of such groups in today’s market. Watch for announcements regarding additional peer-to-peer initiatives from BTA in the coming months. 8 | www.of ficetechnologymag.com | June 2006

There are, of course, other strides of which I am especially proud. For example, recently BTA was involved in a situation where it once again successfully served as the dealer channel’s leading advocate, this time in a case involving fair pricing. Specifically, BTA helped to resolve a conflict in which dealers were pitted against direct sales operations that had been receiving favorable pricing from an OEM. Meanwhile, our most recent stride was a decision by the board to significantly improve the functionality of our Web site, integrating it with the association’s database. Soon, you will notice a number of new advancements to our site (www.bta.org), such as the ability to update your member profile online, including telephone numbers, addresses, etc. You will also be able to view all of your BTA activities and account history online, including conference registrations, committee participation, etc. Beyond these strides, during this past year, BTA has continued to offer its members industry-leading information, education and research — and we continue to receive positive feedback from dealers. For example, in regard to this magazine, one dealer e-mailed: “I think it is the best periodical in our industry.” Similarly, another dealer wrote on the evaluation form of a recent ProFinance class: “Over the past 15 years, I’ve attended more than 50 seminars. This is the best one I’ve ever attended.” Clearly, like myself, you are grateful for what BTA has to offer. I’m sure I’ll cross paths with many of you in the years ahead. Until then, allow me to extend my sincere wishes for the continued success of your BTA member dealership. — Mark Naylor

2005-2006 Board of Directors President Mark Naylor ABM Automation 740 NW 63rd St. Oklahoma City, OK 73116 markn@abmautomation.com President-Elect Dan Hayes Purcell’s Business Products 222 E. 1st St. Campbellsville, KY 42718 dan@purcells.com Vice President Shannon Oliver Copier Source Inc. 215-G Industrial Ave. P.O. Box 36395 Greensboro, NC 27406-4542 soliver@copiersourceinc.com BTA East Thomas Chin Accolade Technologies LLC 604 Hampshire Road Mamaroneck, NY 10016 tchin@accotech.com BTA Mid-America Dave Johnson G-I Office Technologies Inc. 701 Atlas Ave. Madison, WI 53714 davej@gioffice.com BTA Southeast Bill James WJS Enterprises Inc. 3315 Ridgelake Drive P.O. Box 6620 Metairie, LA 70009 bjames@wjsenterprises.com BTA West Greg Valen Hawaii Business Equipment Inc. Toshiba Business Solutions 590-A Paiea St. Honolulu, HI 96819 gregory.valen@tabs.toshiba.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Fisher Newman & Rosenberg Ltd. 222 S. Riverside Plaza Ste. 2100 Chicago, IL 60606 robert.goldberg@sfnr.com

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What separates one company from all others?

Customer satisfaction. J.D. Power and Associates ranked Kyocera “#1 Copier/Multifunction Product in Overall Customer Satisfaction among Business Users” Business and technical decision makers ranked Kyocera copiers and MFPs number one in overall customer satisfaction. What’s more, Kyocera’s advanced technology makes everything simple to use. Offer your customers a wide range of color and monochrome MFPs and printers, along with award-winning reliability, plus an extremely low total cost of ownership. It all adds up to one thing: Satisfaction. Combine all this with strong dealer marketing support, and it’s no wonder Kyocera keeps you smiling. That’s the power of People Friendly. Learn more: www.kyoceramita.com

KYOCERA MITA CORPORATION. KYOCERA MITA AMERICA, INC. ©2006 Kyocera Mita Corporation. “People Friendly,” “The New Value Frontier,” the Kyocera “smile” and the Kyocera logo are trademarks of Kyocera. J.D. Power and Associates 2005 Copier Customer Satisfaction StudySM. Study based on responses from 1,730 business decision makers. 16 major brands serving the U.S. market were included. www.jdpower.com

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Automated Metering Have you taken a look at today’s solutions? by: Brent Hoskins, Office Technology Magazine

he process is woven into the fabric of the office technology industry. Whether it is the end-user or a dealership service tech, someone has to collect meter reads each month so that cost-percopy (CPC) billing can be completed. It’s generally not a welcomed task. Oftentimes, the meter reads are submitted via fax, post card or telephone — transcribed from the clipboard of the individual who had walked from device to device. In other cases, the information is logged into a Web site. “While that eliminated the need to, for example, mail in a post card, it was actually a lot easier to do that than to log on to a site, figure out which machine is which and input the proper meter reading, etc.,” says Lester Anderson, vice president of marketing for Imaging Portals Inc. “So, once the enthusiasm for the new technology wears off, it becomes more of a pain than an advantage for the end-user.” There is also the pain within the dealership. Anderson cites, as an example, Imaging Portals’ estimates in regard to meter readings submitted via post cards. On average, perhaps 40 percent of the cards will be mailed to the dealership on time, he says, while another 30 percent will be mailed in after a telephone call reminder. “Then you’ve got the rest, where it’s going to take another four or five calls,” he says. “Or, you are going to have to estimate the meter readings or send a service technician out to read the meters.” Unfortunately, says Norman McConkey, president of PrintFleet Inc., many dealers simply accept the costs in time and money associated with collecting meter reads. “They just look at it as sort of a necessary evil,” he says. “Dealers have told us, ‘Yes, I have service techs going out from time to 10 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 0 6

time collecting meter reads.’ In the case of one of our dealers, he had six people on the back end, calling on a daily basis trying to collect meter reads.” It doesn’t have to be that way. Today, an increasing number of software-based solutions that automate the meter reading process are available to dealers. While the pricing and functionality vary, the result is the same — electronic submission of meter reads that occurs quietly in the background. Such solutions also integrate with ERP systems, such as OMD’s Vision or Digital Gateway’s e-Automate, further eliminating the hassle for the dealership. Beyond simplifying the meter read collection task, today’s automated systems also circumvent the errors that frequently occur in traditional manual collection methods. Specifically, they eliminate human error. Richard Piper, president of FMAudit LLC, points to the person with the clipboard who is going from device to device collecting meter reads. “That’s the first breakable link in the chain,” he says, noting the likelihood of a transcribing error. “Then that person transcribes it again when sending a fax, inputting it into a Web site or using some other method. So, on the customer side, there are two transcribing activities they have to do.” Then, when the information is received at the dealership, it is generally transcribed by a clerk into the ERP system, says Piper. “So, in the typical scenario, there are three transcribing steps,” he says. “When you do that, because of the human element, errors are going to occur.” Rick Bock, co-owner of PrintMIB LLC, echoes Piper’s comments. “When you have people who are receiving faxes, etc., and transcribing the numbers into your database, there are

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going to be all kinds of transaccount says, ‘This is some“More and more, major position errors,” he says. thing we want,’ and the “Other times you are going to dealer says, ‘It can’t be account RFPs have a have, perhaps, a fax machine done,’ the response is, ‘Oh provision that says jam and you are going to yes it can.’” employees ... will not be miss getting a fax from someMcConkey notes that involved in reporting body attempting to send there is also the issue of the meter reads. End-users their meter information.” juxtaposition between the are now getting more Actually, software vendnature of the traditional knowledgeable about what is available ...” ors assert, facilitating more methods of gathering meter — Lester Anderson timely and accurate meter reads and that of the latest Imaging Portals Inc. reads is increasingly beimaging technologies. “What coming a necessity, rather I say to dealers all the time than simply an appealing capability. “More and more, is, ‘You have to understand that your MFP is the most expenmajor account RFPs have a provision that says employees sive IT investment that a company has — it can do everyof the company will not be involved in reporting meter thing,’” he explains. “‘Yet, still, at the end of the month, you reads,” says Anderson. “End-users are now getting more are phoning an IT manager and asking him to give you a knowledgeable about what is available in the marketplace. meter read?’ IT people understand that there is a better way So, when a bid goes out and someone within the major to do this. In fact, they are probably not giving the dealer the

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ship’s CPC program. In some rest of their business be“... The USB key ... tends cases, the automated metercause they are thinking, ‘Are to initiate more questions ing solution is just one of you going to approach than it answers ... That’s a several solutions offered, all printers the same way you focused on the monitoring approach copiers?’” good thing ... Once you and management of imaging In addition, says McConengage in that discussion devices. Generally, the comkey, the task of gathering with the customer, you panies offered other solumeter reads is growing more start to understand more tions long before they offered complex. “When life was just about their environment and their needs.” a USB key, introduced to in monochrome, you only — Rob Thiessen provide a new “stepping had one meter to collect,” he Print Audit stone” to their automated says. “Today, you may be metering solutions. In the charging for scans, faxes case of at least one company, FMAudit, the USB key was the and splitting up monochrome and color. All of a sudden you are asking somebody to tell you four numbers over the initial release. “We elected to go to market with the assessphone. You thought you were having problems before, this is ment tool first,” says Piper. “We needed to establish a sales pipeline, so that we could migrate up to meter reading.” going to get silly.” While there are automated metering solutions available To fully understand today’s automated metering solutions opportunity, dealers must first look at the bigger picture. from hardware OEMs, software company representatives Specifically, they should take note of the emergence of an point out that their solutions are not focused on a specific increasing number of USB keys, providing sales reps a tool to OEM’s products, but rather on the full range of OEMs’ products, more reflective of the product mix in a typical customer conduct rapid print assessments. By simply plugging one of the keys into a USB port on an location. In addition, says Anderson, a third-party software end-user’s networked PC, the sales rep is provided with a vendor provides a solution that avoids the risk of an OEM “snapshot” of the MFPs and printers on the network. Typi- gaining useful information regarding print and copy volumes cally, the rep can use the retrieved data to generate reports that could provide a better indication of a local market’s that identify the devices by manufacturer and model, pro- potential. “The OEM could say, for example, ‘Hey, it looks like viding the current meter reads, separating monochrome Memphis is a good market,’” he says, alluding to dealers’ concerns about the growing number of direct OEM sales pages from color pages. “The use of the tool opens peoples’ eyes to the total branches being opened in recent years. Today, there is a growing number of automated metering volumes that are occurring in their environment, and it demonstrates to the sales rep what assets are being utilized solutions available to dealers from software vendors. Among without having to go room to room or location to location,” them are the solutions offered by each of the vendors intersays Rob Thiessen, reseller sales manager for Print Audit. viewed for this article (listed with company names and Web “That spurs a lot of questions on the part of the customer addresses): FMAudit Onsite (FMAudit LLC, www.fm audit.com); MeterExpress, NetFleetManager, ImageTrak 200w, and it allows the rep to engage in a solution sales approach. “So, the USB key is not the end all and be all,” he continues. ImageTrak 300R/T and ImageTrak 500n (Imaging Portals Inc., “In fact, it tends to initiate more questions than it answers in www.imagingportals.com); Print Audit Facilities Manager many ways. That’s a good thing, because once you engage in (Print Audit, www.printaudit.com); PrintFleet Optimizer and that discussion with the customer, you start to understand PrintFleet Enterprise (PrintFleet Inc., www.printfleet.com); and QuickMIB (PrintMIB LLC, www.printmib.com). more about their environment and their needs.” As noted, the automated metering solutions offered by How do the USB keys tie to automated metering? It’s simple. First, they demonstrate to customers the technology these companies build on their USB keys’ rapid assessment and the value of being able to generate page volume reports. capabilities. In most cases, the solutions also offer far more Second, behind each USB key is a company that offers an auto- capabilities than many may assume. For example, even mated metering solution, providing capabilities that build though collecting meter reads is the primary function the upon those of the USB keys, specifically tailored for a dealer- solutions also provide such metrics as: serial number, IP 14 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 0 6

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Some solutions offer a address, device description, “Dealers understand the means to gather informadevice status and LCD value of automated tion from locally-conreading (providing service metering, but they still live nected imaging devices by alerts) and toner levels, loading the necessary softhelping with supplies manwith the pain points on the ware, referred to as an agement. management side and the “agent” or “beacon,” on the Although the CPC proinaccuracies ... It time for local workstation. gram billing cycle likely them to take the next step At least one vendor, occurs once each month, the and say, ‘We’re going to address this.’” Imaging Portals Inc., proautomated meter solutions — Richard Piper vides a solution to collect can provide constant moniFMAudit LLC meter reads from standtoring of devices. The inforalone devices. This is acmation gathered can be complished with a locally connected appliance that relays made available to the customer to assist with internal print management. It can also be used by the dealership in real- information via two-way paging. Some solutions utilize an ASP model, where the data izing benefits akin to those offered by the rapid assessment USB key — new revenue opportunities. This is enhanced from the customer location is transmitted to the software when the dealership is also monitoring the page volumes of vendor’s server and available for retrieval by the dealer and, if desired, by the end-user. Other solutions e-mail the infordevices it did not sell the end-user. McConkey cites the example of one dealership that was mation directly to the dealership. Finally, beyond savings in time, a higher level of accuracy monitoring the devices of a customer location using Printand new revenue opportunities, automated metering softFleet Optimizer. “Within the span of a month, they had sold more than $80,000 in new hardware to this company,” he ware vendors emphasize at least three other reasons dealers says. “They looked at the data they were gathering and said, should consider their solutions. They set dealerships apart from competitors. “It’s like ‘You need to replace this machine and that machine.’ They searching for the right hotel; you like the one that offers the said things like, ‘We’ve noticed that this machine is pretty important, because it’s printing 10,000 pages a month, but most amenities,” says Barry Deuschle, president of PrintMIB. “The more services you can provide, the more it’s expensive.’” Similarly, by monitoring the end-user’s devices, the deal- appealing your dealership will be to prospective customers.” They support the goal of automating workplace processes. ership can facilitate more lucrative clicks on the devices it has installed. Anderson cites the example of a color-capable “At this point, the idea that you can maintain an efficient MFP that is being underutilized. “By monitoring the meters, business without automated systems is pretty antiquated,” it may lead them to say, ‘Hey, in this account, maybe we says Thiessen. “In an increasingly automated world, this is should send someone over to give them a little bit more the type of solution that every dealer who wants to maintain training while it’s still a relatively new device,” he explains. or increase market share is going to want to consider.” They are the wave of the future. “I think that if you fast “They could say to the customer, ‘Did you know that you forward 18 to 24 months, 50 to 75 percent of dealers’ accounts could easily print your presentations in color?’” Of course, as dealers consider the revenue opportunities are going to be monitored in this way,” says McConkey. “If and other benefits offered by the implementation of auto- they haven’t selected a solution, they’ve got to get going.” Piper agrees. “Dealers understand the value of automated mated metering solutions, a number of questions likely arise. Following are five key aspects, based on the comments metering, but they still live with the pain points on the manageof the individuals interviewed, which may serve to address ment side and the inaccuracies and challenges with customer reconciliations,” he says. some of the common questions: The necessary software is loaded on either a single “However, it is time for them to take the next step and say, ‘We’re going to address this.’” workstation or the customer’s server. Brent Hoskins, editor of Office Technology The solutions will not be able to gather all information magazine, can be reached at brent@bta.org. from every device, due to age and design. 16 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 0 6

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‘Expect the Best’ Kyocera Mita America hosts FY ‘07 dealer meeting by: Brent Hoskins, Office Technology Magazine

ith a focus on its expectations for continued growth and commitment to the dealer channel, Kyocera Mita America Inc. (KMA; www.kyocera mita.com) hosted its FY ’07 national dealer meeting, April 18-20, in Orlando, Fla. The event drew more than 1,500 attendees, including both Kyocera and Copystar dealers, from throughout North America, Latin America, the Caribbean, Thailand, Europe and Japan. “We at KMA are all very excited about the upcoming year, and we have a strong commitment to continue to provide you with the best products, best programs and best support throughout FY ’07,” said Ed Bialecki, KMA senior vice president of sales, as he welcomed attendees during the opening General Session. “That commitment is the spirit and attitude behind this year’s theme, ‘Expect the Best.’ This theme reflects the growth that we’ve experienced together over the past few years — the dramatic increases in brand awareness, the increase in revenues and the track record of success we’ve been able to create.” Providing details on the company’s growth, KMA President and COO Michael Pietrunti reported that KMA’s net sales revenue grew by more than 6.5 percent year over year, led by the Latin America Division at 18.6 percent. He noted that one of the components of the company’s growth is the expansion of its printer business. “KMA’s copier/MFP units grew by over 10 percent and our printer units grew at a phenomenal 29 percent year over year, breaking the $100 million barrier for the first time,” he said. “My goal is to continue to expand our printer business and to reach the $200 million level by FY ’09.” In addition, said Pietrunti, KMA maintains its goal of becoming a $1 billion company by FY ’09. “Achieving this objective requires that the KMA Group is able to maintain an approximate growth rate of just under 20 percent each year for the next three consecutive years in all markets in North, Central and South America,” he said. “There is no 18 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 0 6

Clockwise from above top image: The opening General Session; attendees gather to learn more about iTag in the Product Fair; and KMA President and COO Michael Pietrunti. question that this objective is aggressive, especially when viewed on a relative basis, compared to our past performance. But, when compared on an absolute basis to the entire market, it means that we must collectively grow our printer market share from today’s level of 1.1 percent to 1.9 percent in three years. And, we must also collectively grow our copier/MFP market share from today’s level of 4.4 percent to 7.6 percent in the same three-year period.” Acknowledging the aggressive nature of the company’s growth objectives, Pietrunti outlined several of its current strategies to achieve its objectives. He began with KMA’s

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items — or only as a way of earning copier emphasis on the B2C market. “... We need to migrate rebates — and move swiftly to the new “KMA dealers will be equipped with business model that a few of you have a full complement of best-in-class away from the old already figured out,” he said. “That is, engines with performance and TCO mindset of handling controlling all of the ‘clicks’ on the standards that will set new benchprinters as convenience network by learning to sell fleet solutions marks in the color market, and which items ... and move combining both printers and MFPs.” our competitors will be challenged to swiftly to the new During the dealer meeting, KMA introcompete against,” he said. “In fact, our business model ... “ duced the FS-2000D, FS-3900DN and the business objective is to sell 12,000 units FS-4000DN workgroup monochrome in our first year, which would represent printers, offering speeds of 31, 37 and 47 achieving an 8.5 percent market share.” During the meeting, KMA introduced three B2C MFPs — ppm and suggested retail prices of $1,054, $1,447 and $1,676, the KM-C3232, KM-C3225 and KM-C2520, offering print respectively. In addition, the company unveiled iTag, a docuspeeds of 32/32 pages per minute (ppm; color/monochrome, ment management solution designed for small businesses or letter), 25/32 ppm and 20/25 ppm, and suggested retail departments. KMA reported that the new products introprices of $14,345, $13,040 and $11,730, respectively. The duced at the meeting are the first group of 19 new products that will be launched in FY 2007. launch date for the products has not been announced. Brent Hoskins, editor of Office Technology A second key growth initiative, said Pietrunti, is for KMA magazine, can be reached at brent@bta.org. to strengthen its efforts in the top 25 U.S. markets. “When I evaluated our business, it was obvious that our company has been traditionally very strong in the secondary and tertiary markets where we have significantly out-performed the market,” he explained. “But in the top 25 markets it has been a much different story. In these strategy markets, KMA has not achieved our national market share levels, with very few expectations.” Pietrunti said KMA will review and analyze each of the 25 markets. In addition, he said, Ed Bialecki will meet with the dealers in the affected markets “to discuss our objectives and to create an equitable plan to support mutual growth.” He noted that KMA will focus on five of the top 25 markets each year until the project is completed. Finally, a third growth initiative is to “begin to take our printer business more seriously by claiming our rightful share of this lucrative market,” said Pietrunti. “Over the past several years, KMA has become the number two manufacturer of printers distributed by the BTA channel. And over the past four years, we’ve grown our printer unit sales by over 232 percent. While these growth statistics are very impressive in a relative sense to previous performance, this translates to a market share of only 1.1 percent.” Pietrunti said he believes KMA can achieve a 3 percent printer market share in a relatively short period of time, noting that the increase would represent a more than $250 million opportunity for KMA and its dealers. “To achieve this level of growth with our current channel, we need to migrate away from the old mindset of handling printers as convenience w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 0 6 | 19

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Training New Hires The old way of doing things will no longer work by: Jim Strauss, Motive8s Inc.

n the past, sales managers could provide new people with about five to 10 days of basic sales training, send them out into the street in station wagons and before you knew it, they were giving enough demonstrations to make a good living. Sure, they were learning it the hard way, but because there was so much opportunity, they were able to make a living while still making mistakes. Management understood that in this tough business not everyone succeeds; it takes a special type to make it. So, when interviewing potential sales reps, one would ask basic questions: In what weight class did you wrestle? What kind of vehicle do you drive? Unfortunately, it takes a lot more in this industry today than a competitive drive and a vehicle that can carry a copier cart. Today’s sales reps need to learn a heck of a lot more, considering the complexities of the industry. It is a challenge — for both reps and dealerships. Taking this into consideration, there is a lot of discussion about compensation. Should it be modeled around the programs that we used in the 1980s? Should compensation have a ramping period, considering how much more a sales rep has to learn? The answers can be debated, but one thing I am sure of: There is more to this business than there was in the 1980s. Sales reps are required to learn a lot in the first year. Not only do they need to learn the basic sales skills, but they have to understand a multitude of product solutions, both software and hardware. Not long ago we had the challenges of teaching our salespeople color technology over monochrome, digital versus analog and so on. Today, we are still training on the basics but we need to provide training on imaging solutions that range from simple PDF scans to complex indexing. We 20 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 0 6

expect our people to ultimately understand document workflow and fleet management concepts. Each one of these new areas of learning represents opportunity for both the dealership and the sales rep, but it is a real training challenge. Years ago, dealership sales managers provided the basic sales training and the manufacturers and vendors provided most of the answers for the more technical stuff. Today, I see more and more put on the shoulders of sales managers and dealerships and less on the vendors. What is the answer? Well, it is important to recognize that the old way of doing things will not work. New-hire training takes more than a few days. Realistically, a lot of the first year should be peppered with elements of training, considering the number of things salespeople have to learn. I do not feel that reps need to spend all of their time in classrooms, online reading, etc. There should be some of this, but there needs to be a mix of “book” training and field training in order for a salesperson to be successful. You can offer all the training in the world, but if sales reps do not experience the reality of the job and, more importantly, success on the job, they will judge their career on something that is not real. Too often, good people leave the industry in the first year without a real understanding of the business. They think the business is non-stop cold calling, spending a lot of time without good answers and in many cases little success. In the old days the five-day training concept worked because someone in his (or her) first year in the industry did not need to know as much and could see success fairly early in order to appreciate the possibilities this industry presented. The opportunities are still here and in some case have expanded, but the opportunity to appreciate

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Document Management Questions? them is not as apThe advantage your parent or frequent people gain from when providing only role-playing is basic sales training. If you are considexperience ... Yes, it is ering creating a high time consuming, but performance training the short-term sacrifice program consider pays in the long term. what others have done. Offer the following key elements: Prioritize the things that are critical to success for someone who is starting in this business today. Also, create a checklist of what you would like a new rep to know by the end of the first quarter, first six months, one year out and so forth. This takes time to do but it is worth doing. Then, take these two lists and develop a schedule of events including inspection points (mile markers) for reps to show you what they know. Paint a path of success and expectation. If you paint a picture for new hires that shows them that they are expected to learn new things constantly — and show them early success — they will have a good appreciation for the business. Help them develop basic sales skills. Of course, you need to help people develop what we call “the basics.” This includes developing a territory management strategy, effective cold calling, phone skills, appointment setting, qualifying, demonstrating and closing. Lots of role-playing is critical. The advantage your people gain from role-playing is experience. The nicest thing about role-playing is that you get to see and hear how they do before they “experiment” on your clients. Yes, it is time consuming, but the short-term sacrifice pays in the long term. Offer extensive product and solution training. Sure, there is a lot to learn in this business, but if you develop a plan that begins with the basic products that your people sell (based on the ones that they can sell the quickest), then over time you can add more products to the mix. Your reps will have a better chance of early success, while understanding that there is more just around the corner. Let them master one product then progress to the next and so on. Provide field time with mentors. Many successful dealerships use a mentoring process to help develop their people. What a great idea. It needs to go beyond just having your new reps travel for one day with one of your better people. It needs to be a program that lasts the entire first year. Reps do not need to spend field time every day with mentors, but there needs to be a scheduled time when they do. And, give

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that you have provided up to that point. the experienced reps a “piece of the If you take a good Provide for early successes. Do everyaction” (commission over-rides or look at your current thing you can to help your new people splits) for their work. training program and experience success early in their career. Provide time to practice. It is really odd Help them set appointments, close deals to see dealers expect their new hires to it is not the best in and make money. If it takes too long to know so much about all the products town, you may want see some of these positive results, they are they sell, yet not give them the time to to experiment this year likely to come to the conclusion that this study or practice with the technology. I by changing it. is not a good business. Sure, it is imporbelieve that there has to be adequate time tant that they understand that it takes to practice, especially at the beginning. Facilitate vendor participation. As noted, there is less and work and that sometimes it takes a long time to see success, less vendor participation in the area of training. Insist on but remember they are evaluating this opportunity as much as good training from your vendors. They, too, can outsource you are evaluating them. Early success is great medicine. Have a variety of influences and instructors. One reason this to others. It is important that dealers begin to insist on people do not experience good training when they join an the type of support that they once received. When putting together a new-hire training program one organization is because the managers feel that they do not have enough time to do it. Too often, they take the responsimust design it to: Produce a fast start. This business is a fast-paced busi- bility of training onto their shoulders completely. This is a ness. Your new-hire training program should be the same big mistake — the brightest managers rely on others to help. Maximize your resources. Use the experts around you to put — fast-paced. Be as intense as the business. If your training program is on elements of the training. Use your administration staff to intense and challenging it prepares your new hires for the train on paperwork. Use your leasing representative to help business they are in — one that takes a high level of intensity. with training on leasing. If you have IT staff, who would be If it is soft, then they start off slow or with the impression better suited to train on connectivity and scanning? If you that there is not a whole lot of work that is required of them. are limited staff-wise, use outside trainers and, as I said Include high tasking of the salespeople. When all is said already, have your vendors help. Successful organizations are challenged by the need for a and done, the first three months of the first year is an evaluation period. You are evaluating the new hire to see if he is solid training program for their new hires, but they also see suited with the right attitudes and abilities to succeed with this as a competitive edge. When an organization has a repuyour organization. And he is evaluating your organization to tation for providing excellent service, it draws in clients. When it has a reputation for excellent training, it draws in excellent see if this is where he wants to develop a career. Tasking the reps to perform during this early period pro- salespeople. Sure, there is an expense, which holds most dealvides you with a good look at the attitudes and abilities erships back from “doing it right,” but the reality is, turnover in these new people possess. When asked to do things (like the first year of employment costs a dealership more. It is one of those investments that can produce measurable homework) during your training program, you are evaluating if they have the ability to work on their own, complete results. If you take a good look at your current training work and so on. You are also setting the pace for asking reps program and it is not the best in town, you may want to experto do what it takes — to complete reports, follow-up with iment this year by changing it. Put together a training program that tops anything you have ever done and see if at this time clients, think on their feet and more. Use mile markers. It is important that you create mile next year you begin to see a pay-back on your investment. Industry veteran Jim Strauss is president of Motive8s Inc., markers (inspection points) during the training that determine a company that serves the office technology how your new people are doing. If you have tasked them to get industry with training, mentoring and something done, like give a product demonstration to the prescoaching of sales and service ident of the company, you will see how they prepare for such professionals. He can be reached big events. It mirrors what they will have to do with clients — at jimstrauss@motive8s.com research, prepare, practice, etc. Give your people a written or (515) 210-2136. Visit www.motive8s.com. schedule. Have dates where they have to feed back the training 22 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 0 6

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COURTS & CAPITOLS

High Fuel Costs How are you dealing with this predicament? by: Robert C. Goldberg, General Counsel for the Business Technology Association

structure of a new sale or lease. If the ow can you deal with the huge I suggest a two-pronged increase is proportional to the increase in increase in gas prices? Can you approach ... First, look gas prices, customers may be a bit more legally pass the rising fuel costs for ways to limit fuel inclined to be sympathetic as they are on to your accounts? Huge companies can dealing with the same issue in their busibuy contracts to lock in fuel prices. A pizza consumption ... Second, nesses. Does this perpetuate a vicious delivery service in Manhattan can use examine the notion of cycle? It does, but it may be necessary to more bicycles. However, these are not adding these costs to ... keep a business profitable. The additional viable options for most businesses. customers’ invoices. downside, of course, is that you are in Clearly, it is often the small business owncompetition with other companies er who is most affected by this predicaoffering the same services that you do. Your price increase ment. I suggest a two–pronged approach to dealing with this problem. First, look for ways to limit fuel consumption within could conceivably lose you customers. You are the only one our businesses. Second, examine the notion of adding these who knows and can best analyze your market. With this same analysis in mind, you can add a fuel surcosts to existing customers’ invoices. charge to the invoices on service calls for your existing cusThe most obvious place to begin conserving is with the vehicles themselves. Proper maintenance saves on gasoline tomers. Since pricing has already been established, this needs consumption. Change fuel and air filters as recommended by to be clearly noted on the customer’s statement. This practice the manufacturer. Have vehicles tuned up. Keep tires at the is being used commonly in businesses of all kinds throughout proper pressure and wheels in alignment. Drive at 55 miles per the country. Delivery companies, cruise lines, airlines, taxis, hour (mph) on the highway, instead of 70 mph (and get 20 landscapers, UPS and FedEx have all instituted such charges. percent more miles per gallon). This summer, use less air con- Give this a try. If a customer complains, you can, of course, ditioning. Finally, when the time comes to purchase new vehi- waive the charge. The best part of being a small business owner cles, consider fuel-efficiency. Several hybrid vehicles are now is that you do know your clientele and you do understand their business problems. You know what the traffic will bear. available and considered very effective at conserving fuel. This knowledge brings us to the final solution to the Where are your vehicles going? Are all trips necessary or is it possible to arrange some demonstrations at your dealer- problem of huge increases in the cost of fuel. You can, of ship? Has the most efficient dispatching of service calls been course, absorb the expense. Perhaps you can find a different implemented? It would be wise to take a good look at routes area in which to increase profitability. More than likely, and schedules. Is it possible to consolidate trips — deliveries however, you may have to make less revenue. Losing cusand service calls? Can some service or delivery areas be tomers and replacing them with new ones can be expensive as rearranged in order to consume less fuel? Routing and sched- well. If costs level off, taking a short-term hit may not be a bad uling software is available to aid in this task. In terms of solution. If, however, prices continue to escalate, you will have delivery, this may be one area where fees may be reasonably no choice but to reflect these costs in your pricing. Lets hope raised. If a delivery fee is already in place and not locked in for the former! Of course, if fuel prices decrease be sure to contractually, most customers will understand an additional eliminate any surcharge instituted and be sure to tell all endcharge. Some businesses have begun to include a delivery users that you did so. At the same time thank charge where none formerly existed, while commiserating them for their understanding during the crisis — and thank them for their business. with their clientele over the real need to do so. Robert C. Goldberg is general counsel for the Essentially, the problem comes down to whether or not one Business Technology Association He can be should pass new fuel fees along to customers. In the easiest reached at robert.goldberg@sfnr.com. scenario, these new expenses can be built into the pricing w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 0 6 | 23

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Close-up: Sharp OEM’s training programs reflect dealers’ needs by: Mike Marusic, Sharp Document Solutions Company of America

Editor’s Note: Throughout 2006, Office Technology has been inviting the copier/MFP OEMs that sell through the dealer channel to submit articles regarding their dealer support initiatives and/or training programs. The intent is to provide the authorized dealers of each of the OEMs — and the channel in general — a better understanding of some of the current initiatives and programs. Following is the fifth of these OEM submissions, from Mike Marusic of Sharp Document Solutions Company of America.

training, and they rewarded us by selecting Sharp’s program as the best Manufacturer Training Program in BERTL’s annual dealer survey. The core of our training program is our highly successful Sharp Academy Online Training Program. Sharp has continually enhanced the capabilities of its online training programs since 2004. The availability of training 24/7 has enabled dealership salespeople to stay active on sales calls during the day, while augmenting their training on new products and sales skills in their t Sharp, we are extremely free time. proud of our training The program provides achieveprograms and feel they ment tiers based on advancement are uniquely designed to support through increasingly difficult the office dealer network. What training materials. The program sets our program apart is our aptiers — bronze, silver and gold — proach to development by first recognize achievement by inunderstanding the perspective of creasing the value of rewards in dealers and their salespeople. our EverSharp sales program. Our philosophy is to build tools Sales reps earn increasing dollar that help dealers address key amounts for unit sales based on needs. First, we provide leading- Top: Sharp’s dealer extranet site, www.sharpidnc.com, training levels. Tying in training edge training on all Sharp soft- is home of the Sharp Academy Online Training activity rewards with additional ware and hardware products. Program. Bottom: Currently, Sharp’s end-user online benefits ensures that the salesNext, we help dealers train and training program, My Sharp®, designed to increase person receives an immediate ramp-up the skills of their sales- customer satisfaction and better manage costs, is benefit for his (or her) efforts. people based on their experi- accessed by more than 15,000 end-users. During the past three years, Sharp ence. Finally, we assist dealers by increased the number of gold-level training their customers on all the features of the Sharp trained salespeople by more than 30 percent. product line. Our comprehensive training literally starts on day one of a All of our training activities are linked to our dealer sales- salesperson’s new assignment. If any of our dealers hire a new person rewards program called EverSharp, which allows us to person, we immediately provide them with a welcome package track the usage and success of training activities. This well- of Sharp materials, and a member of our Sharp sales team conrounded approach provides our dealers with leading-edge tacts them to welcome them to the community and answer

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competitors’ product lines. To improve any initial questions. ® ... My Sharp ... has the accessibility of this hands-on training, To start the training program, a salestaken customer Sharp conducts product road shows and person then logs into our dealer extranet support to a new level application workshops nationwide so that site, www.sharpidnc.com. We collect key it is easier and more cost-effective for information about the salesperson to cusby addressing a major dealers to send their people. tomize his training experience. More challenge for all dealers All of these programs and schedules tenured reps move immediately towards — increasing customer are easily accessible on the training calSharp product-specific skills training. This satisfaction .... endar posted online. This calendar helps helps them increase their knowledge of the our dealers and their salespeople underSharp product line and ramp-up quickly to stand which hands-on, Webinar and specialized training sessuccessful selling. Sharp also addresses the needs of new salespeople in our sions are available. In addition to this comprehensive dealer sales training dealer community. While it makes sense that less experiprogram, the My Sharp® end-user training program has taken enced or new salespeople have a difficult path to success as they develop their selling and product skills, manufacturers customer support to a new level by addressing a major chalhave not traditionally addressed this requirement. However, lenge for all dealers — increasing customer satisfaction while in the past year, Sharp introduced a new rep training managing costs. My Sharp is an online product training site program to help entry-level salespeople better understand that dealers can tailor to the specific products and features the selling process and how to use “best practices” to applicable to each customer. With less than five clicks, a improve sales effectiveness. An online step-by-step guide dealer can set up an online training site that is customized to walks them through the sales process. The training is aug- the products and features installed at the customer site. Now, mented with printed materials as well as training videos that dealers can augment the initial product training provided at enhance the learning process. All of the product training install and ensure that their customers’ new hires have access refers back to the sales process guide to provide context to to product training 24/7. Today, more than 15,000 end-users access content on each training element. Since this program’s launch, new Sharp’s products through the My Sharp program. The program dealer sales reps have experienced an average 15 percent increase in productivity during their first six months. In has increased customer satisfaction by helping end-users addition to sales increases, our dealers are seeing lower understand how to use the advanced features of their Sharp MFPs and digital document products without contacting the turnover thanks to this program. Sharp has also addressed the need for customizable training. dealer. An obvious benefit of the program is the usage after While we encourage the “Sharp way,” we realize dealers have work hours and on the weekend. Imagine the letdown someone their own processes and training programs. To address this, we who is working on the weekend feels when he cannot “finish” created a “selling skills” program where dealers can download the job because he does not know how to use the features of a course guides that they can customize. This added level of copier and the normal support person is unavailable. By prosupport provides dealers with the tools to position Sharp prod- viding access to My Sharp, dealers can provide customers with support, even when they are closed — without incurring the ucts within the scope of their market approach. As application knowledge is more closely tied to the selling cost of a visit or phone time with the customers. Sharp’s multi-tiered approach takes all of the dealers’ needs process, Sharp partnered with third-party application vendors to provide continuous Web-based seminars. These into account — educating their salespeople, ramping up the “Webinars” educate and train salespeople on the value and selling skills of new hires and training their customers to maxpositioning of many software applications. With more than imize the user experience. We are constantly obtaining dealer five Webinars a month, salespeople can enhance their capa- input to provide our dealers with best-of-breed support for all of their training and support needs. bilities every week. Mike Marusic is vice president of marketing at In addition to our online programs, Sharp provides handsSharp Document Solutions Company on training in a variety of methods. We conduct classroom of America. He can be reached training for all of our dealers in three facilities across the at michael.marusic@sharpusa.com. country. In these classes, reps learn all aspects of the product Visit www.sharpusa.com. line and participate in a competitive lab to understand our w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 0 6 | 25

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Equitrac: A Briefing Software vendor meets with industry press by: Brent Hoskins, Office Technology Magazine

ost recovery and copy and print management software vendor Equitrac Corp. (www.equi trac.com) is poised for continued growth in the coming years. In fact, said Mike Rich, president of the Plantation, Fla.-based company, “basically, we are striving to grow revenues at 20 to 30 percent over the next several years.” Rich shared his comments on April 21 at a press briefing held in Newark, Mike Rich N.J. Company officials hosted both editors and industry analysts with the goal of providing an update on Equitrac’s current initiatives and reporting on industry trends affecting its product categories. The company also made several product announcements during the briefing. Equitrac’s primary target markets are: the general office (with an emphasis on the financial, healthcare and insurance markets); education (K-12 and higher education); and the legal (and other professional) market. The company has alliances with such hardware vendors as Canon, Konica Minolta, Ricoh, Sharp and Xerox and such software vendors as Captaris, eCopy and EFI. Currently, said Rich, Equitrac has more than 10,000 customers worldwide and between 80,000 and 90,000 devices under the management of its software products. While the company serves the education market and, in recent years, the general office environment, with its print and copy management products, it is best known in the legal environment. Equitrac reports that it has been the leader in the area of cost recovery in the legal market for 30 years, currently claiming approximately 70 percent of the market. In the past, said Rich, the legal industry primarily targeted the cost recovery of copied pages. Today, he said, many law firms are also now recovering costs for printed pages. “I think we are at a tipping point as law firms are seeing more of their document volume migrating from copying machines to printers,” he said. “And they now recognize the need to track and manage printed output as another cost recovery element.” Rich also noted that there is a growing interest within the legal market for the recovery of MFP scan clicks. In fact, he said, Equitrac has distinguished itself as the leading “con26 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 0 6

nector” for eCopy’s ShareScan OP product, which integrates the scanning functionality of MFPs and independent software vendor applications. Beyond the changes taking place in the legal market, Rich cited several other key industry trends. Among them: Document security is becoming more important among current and prospective Equitrac customers. “Document security has become a major focus,” said Rich. “Two or three of the largest deals that we did this year were predicated on our security capabilities.” The scope of many software implementations is changing. “The size of our deployments has expanded,” said Rich. “A year or so ago we would not have been thinking about a thousand or more devices under the management of one of our solutions. Today, that’s becoming very commonplace.” More hardware vendors are sharing details of the management information base (MIB) of their products. “This is basically the details about how a device is actually operating, from a device management perspective,” said Rich. “Equitrac has taken those elements and has crafted solutions that let us provide a more intelligent output management and routing product for our clients.” Rich shared his optimism for the continued growth of the market areas Equitrac pursues, particularly the area of cost recovery, now estimated to be a $120 million market in the United States, according to market research firms and Equitrac itself. The market is growing at a compound annual growth rate (CAGR) of 25 percent, said Rich. “We believe there are excellent conditions for growth,” he said. “The market is still very nascent or largely untapped. We believe it will remain so for some time, but the growth rates have started to accelerate. I think that is very clear. We’ve seen it within our own business. I think that is consistent with the views that some of our partners are sharing with us as well.” During the meeting, Equitrac announced the release of: Equitrac Professional 5 for cost recovery and print management in legal and professional firms; Equitrac Express 4 for print and copy management in the education market; and Equitrac Office 4 for print and copy management in the general office. Brent Hoskins, editor of Office Technology magazine, can be reached at brent@bta.org.

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PRINCIPAL ISSUES

The Solutions Transition Your ‘acres of diamonds’ are all around you by: Robert Abbott, COMDOC Business Systems

ear the end of the 19th century a brilliant and dedicated man made a fortune telling one single true story. This incredible story was first told to a gathering of concerned businessmen facing tremendous change in their industry. As you read this story, consider this: We in the office technology industry are at a similar crossroad. Making great decisions regarding your future requires new thinking. The story: Ali, blessed with a farm and many orchards, was still discontent. He wished for great wealth, so he sought out the village priest and asked for guidance. The priest advised him to look for a river with white sands. There he would find diamonds — many diamonds. So, Ali left his family with neighbors, sold his farm and went in search of diamonds. For years Ali searched, never returning to his family. Ultimately, he was penniless and broken in spirit. While Ali was searching for his great wealth, the new owner of his farm made it a productive piece of land. One day, as his camels were drinking from the river that ran through the property, the new owner saw a strange rock. Pulling it out of the stream and examining it, he was in awe. It was a very large diamond. That farm became the site of the world’s largest diamond mine. Right there in Ali’s backyard was the river with white sands. The storyteller was Russell Conwell, a famous Philadelphia businessman, philanthropist, theologian and orator. He presented the speech more than 6,000 times and the proceeds were instrumental in the founding of Temple University. The moral of the story is clear and relevant for each of us in the office technology industry today. Each of us possesses our own unique market — our “acres of diamonds.” Our diamonds, just waiting to be discovered, are the everyday opportunities that require a transition from what is to what is to be. In this article, the profoundly pesky obstacle I will focus on

is the transition to solution sales. What is solution selling? I define it as a professionally crafted sales and marketing process that engages a business decision maker with a relevant, credible response to his (or her) acknowledged or unacknowledged document needs. It is based on relationship, analysis and understanding of workflow, and is completed by a professional, profitable implementation that transitions your client from what is to what is to be. Solution selling encompasses the “whole soul” of your client’s business document environment. Distinctions become unimportant. Before tackling the transition, let’s take a look at the stages of our industry. Review the following, then ask yourself: “What stage am I in?” Stage One: Standalone — From 1959, with the introduction of the Xerox 914, until the late 1980s, the sales focus was hardware specifications along with a vendor’s ability to support product. Stage Two: Connected MFPs — Here, the sales effort focused on network printing, scanning and faxing capabilities. However, the model was still hardware focused. Leading MFP manufacturers achieved product parity quickly, making it difficult once again for the average dealership to differentiate its product offerings. Stage Three: Application Sale — In this stage, there is more focus on software and services driven by two primary factors: (1) Perceived device parity is driving MFP margins down, leading to software sales for differentiation and relief from price pressures; and (2) Customer priorities are shifting toward solving workflow challenges or optimization. This move brings vendors new opportunities and the ability to support more applications in the product life cycle. Nevertheless, offerings still revolve around core products rather than individual customer needs and business document processes. Stage Four: Solution Sale — In this stage the business focus w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 0 6 | 27

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dealership — your sales and marketing has shifted from a hardware-centric to a Your clients do not move team, including management and your solutions-centric strategy. The transition forward with process implementation team. to this stage is very challenging, as it improvements they know An assessment provides a benchmark requires fundamental changes across all for you to work from and also defines your business functions. will help them because strengths and weaknesses. It is the hard, Now that we have solution selling they fear the transition cold look in the mirror and a thorough clearly defined, let’s tackle that transition process ... You have so evaluation of your collective skill sets. challenge. What is the key focus? It is the much in common. Sharpen your thinking and define who you design and implementation of a transition are and who you are not. strategy. This is your chief limiting factor. Step Two: Review findings from assessment/ask probing quesHowever, your ability to address this factor is the key to your success. Seize the day. Make the transition. You must first tions. Armed with your benchmark, start asking questions: begin the transition process before you can profit from Who are we? How are we perceived by our clients, employees, inviting your clients to transition in their own businesses. To business partners? What message do we project in the marketplace? What successes have we had? Failures? Why? What do otherwise is to invite certain and painful failure. Where does transition begin? With education. Your uniquely written plans outline our strategy? Do we even have a strategy? valuable opportunity is to educate your clients. They do not How do we protect our current base of revenue while develknow how to transition themselves. They want to utilize tech- oping a new business model? What additional training do we nology better. They know their business processes are ineffi- need to be competent? Who are our target “safe” clients? What cient. What they do not have is the expertise or will to begin vertical markets do we serve best? What strengths in our and complete their transition. It is inevitable that as business product line-up overlap with our dealership’s strengths? Step Three: Develop a strategy for solution/service offerings costs rise and shortages of skilled labor set in, corporate gains in efficiency must come from streamlining business processes. that complement the soul and personality of your dealership. In Your mission is to educate your clients and potential clients this step you start putting strategies and goals down on paper. about the immediate value they gain by improving business Leave your judgments at the door. Have all ownership/manprocesses. Show them that you and your team members are agement and senior/experienced key salespeople and support staff participate in this exercise. Rate or prioritize your collecthe source for expertise in this area. What is the single biggest issue holding back millions in tion of possible actions. Now, ruthlessly cut, cut, cut until you added revenue for your dealership? It is the need for education have only three remaining. The criteria for selecting the three in order to make an informed decision. Consider the single should be driven by your culture, goals and unique strengths most powerful quote from the recent 2005 AIIM State of the discovered in earlier steps. Step Four: Develop an implementation plan. Take the master Industry Report: “We know that we need to be doing these things (software implementation, business process change, list of three and begin developing an implementation plan for document imaging, streamlining output fleets), but we need answering the questions: How? Who? Where (market)? What guidance, we need to be educated on what to do and how to are your expectations (financial and operational)? Develop a plan for every aspect of your operation (sales, make the changes necessary ... We need someone to coach us sales support, IT support, technical, administration and through this process ... We know we need to change.” Wow, there it is folks. Your clients do not move forward delivery). Leave nothing to chance — define everything. Clear with process improvements they know will help them because communication is essential to creating and preserving the they fear the transition process. They know they do not have organizational and psychological momentum necessary to get the expertise to pull it off. They have much the same attitude started and maintain your course throughout the transition. Understand that at this stage you may be further developing and challenges you do when it comes to your transition into solution selling, document management, services and the like. your ideas and strategies for an already existing area of revenue, such as limited document management projects and print You have so much in common. How do you begin with this process of transition? I believe related solutions like forms or other services you currently offer. The purpose of this exercise is not to develop only new areas, you should begin with the following seven steps: Step One: Conduct a marketing and sales capabilities assess- but to jump start and fully develop emerging opportunities. Step Five: Integrate the new model into the old model. This ment. The first step in this process is an assessment of your 28 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 0 6

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means getting information about the improvement exercise in one of your Begin by determining market, checking the perceptions of your departments. Tell everyone involved that what education your clients and sales force, making calls and they must stay at the process until there is team members lack and asking lots of questions. Seek advice. Look measurable and agreed-upon improveinto the industry, subscribe to trade magament. Above all else, have fun. You will be then go get it for them. zines, join associations like BTA, etc. Do amazed at how this activity brings out the Then, educate and never the tough work of getting plugged into the creativity of your staff members. stop. Champion the information, ideas and networks that Step Seven: Begin the journey. Now the effort from the top ... exist. Seek out the experts and advisors real fun begins. Identify your top 10 to 20 that can help you get educated. “safe” accounts. These are the people who Remember, training is specific, task oriented and object ori- love you and your people — the biggest and brightest gems ented. In contrast, education is people oriented. It addresses from your “acres of diamonds.” These are the people who will the whole person, the whole interpersonal relationships. In forgive your missed steps and allow you to grow and experieducation, the whole is greater than the sum of the parts. ment because you have a deep relationship with them. Begin by determining what education your team members Once you have gathered your feedback and implemented lack and then go get it for them. Then, educate and never stop. software-based solutions in a few of these “safe” accounts, Champion the effort from the top or you will have erosion of then polish some more and begin marketing your services to momentum at the bottom and fail miserably. the rest of the market. Then, repeat the process for each one Step Six: Practice. Test your team, yourself and your com- of three products/services you wish to develop. mitment. Implement a full version of your offerings internally. By now you may be asking: “Why should I go to all this Eat your own cooking! bother?” Great question. Here are some additional questions A document management initiative? Start with one of your you may want to consider. Where will my future revenues departments. Forms? Convert your forms. Begin a process come from? Where will my future profits come from? If I do

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nothing but business as usual, what will backyard. This field is admittedly rock Have faith in your my dealership be worth in five years? How infested and hardscrabble — a place that business experience and do I develop new streams of revenue while just groans with the agony of struggle and your ... ability to adapt, protecting my current business revenues? the potential for defeat. I encourage you How do I prepare myself and my people to take another look. Have faith in your change and thrive ... See for the future challenges I face? business experience and your proven for yourself the “acres of You are the future for your customers. ability to adapt, change and thrive in diamonds” just waiting No other business or industry is better spite of challenges. See for yourself the to be discovered. suited to tackle the tough day-to-day “acres of diamonds” just waiting to be support and implementation issues that discovered. The opportunities are your customers face. No one has the core business expertise waiting. Your customers are waiting. that you possess in fielding qualified, well-trained, well-supRobert Abbott is vice president ported professionals. And, more importantly, customers are of sales and marketing looking for education and they are hungry for support. for COMDOC Business Systems, You stand at the threshold of an exciting and rewarding Savannah, Ga. He can be reached opportunity that looks like an ordinary field in your own at babbott@ecomdoc.com.

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