June 2010 Office Technology by Business Technology Association

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CONTENTS Volume 16 No. 12 G

FEATURE ARTICLES 10

2010 MPS Conference Photizo Group hosts second annual event

Development Platforms Facilitating integrated software applications

by Elizabeth Marvel Office Technology Magazine

The 2010 North American MPS Conference was held May 3-5 in San Antonio. It brought together 290 attendees, including representatives from 59 dealerships, to discuss the evolution of managed print services.

by Brent Hoskins Office Technology Magazine

Today, office technology dealerships face the challenge of intense competition and the near commoditization of the equipment they sell and service. How can the dealership best set itself apart from its competitors? Increasingly, the answer lies in the embrace of software applications.

Engaging IT Professionals What do they expect from your dealership?

COURTS & CAPITOLS 26

by Robert C. Goldberg BTA General Counsel

by Matthew Klure Copy Link

In today’s copier/MFP and printer sales and service market, it has been apparent for many years that office technology dealership personnel and service providers need to be able to make friends with and understand their customers’ IT professionals. How do we get in to see the head IT professional?

‘Convergence 2010’ Dealers introduced to new Ricoh leadership team

After an initial news report in Sacramento, Calif., the CBS Evening News reported — in an investigative fashion — that the many copier/MFPs returned by customers contain thousands of documents on their hard drives.

MPS STRATEGIES Service Success in MPS How to avoid & correct common pitfalls

by Brent Hoskins Office Technology Magazine

by Mike Woodard Strategy Development

Drawing more than 1,000 attendees, including authorized Ricoh, Savin and Lanier dealers, Ricoh’s national dealer meeting was held April 19-22 in Las Vegas. There was an emphasis on the company’s managed document services strategy and announcements of coming product launches.

‘The Power of Performance’ Konica Minolta dealers assured of channel unity by Brent Hoskins Office Technology Magazine

Bringing together representatives of both its direct operations and authorized dealership partners, Konica Minolta Business Solutions U.S.A. Inc. hosted the Konica Minolta Business Conference & Product Expo, May 1-5, in Los Angeles. The conference drew more than 1,000 attendees. 4 | 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 2 010

Thank You, CBS Reporting provides service opportunity for dealers

Having been responsible for MPS service delivery at previous employers, as well as being involved in helping our clients succeed in MPS as a service consultant with Strategy Development, I have experienced some common service pitfalls.

DEPARTMENTS Business Technology Association

Education Calendar

G BTA Highlights

Executive Director’s Page

BTA President’s Message

Advertiser Index

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EXECUTIVE DIRECTOR’S PAGE

Do You Know About These New Benefits? f y ou are readin g this column then I can state without hesitation that you are well aware of the Business Technology Association’s Office Technology magazine. You are likely equally aware of our various education workshops, Legal Hotline, BTA Hotline enewsletter, and district education and networking events. However, you may not have found the time to become fully aware of all of the discount programs BTA provides its dealer members. We know that your daily routine keeps you busy. We’ve been busy as well. In recent months, BTA has added several new member benefits that provide discounts (or in some cases a value-add) to BTA member dealers. Every time we add a new benefit, our goal is to further boost the value of your BTA membership and help you in your business, through information, guidance or costsaving opportunities. Following are details on four new member benefits, all providing a discount or value-add to BTA dealer members. For more information on each, visit BTA online at www.bta.org or call us at (800) 505-2821. BTA Marketplace — The BTA Marketplace provides BTA member dealerships with the opportunity to take advantage of BTA Member Specials from participating BTA Vendor Associate members. The specials range from first-order discounts to gift card offers to waived fees. As I write this, our participants are: Color Imaging, Densigraphix, Digitek, DocuLex, DocuWare, ESP, Falcon Technology Solutions, FMAudit, ILG, Image Star, InkCycle,

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Miracle Service, Sharp, Square 9 Softworks and Supplies Network. C ertainly, BTA greatly appreciates the participation of each of these Vendor Associate members. Document Solutions Daily — BTA members receive 18-percent-plus off of a one-year subscription to this unique enewsletter. As a subscriber, each business day you will receive easy access to industry press releases, new product announcements, product reviews and market studies. I receive this e-newsletter myself and find it convenient, given its easy-to-read format. MPS eLearning Program — Developed by InfoTrends and Strategy Development, BTA members receive 15 percent off of the new Managed Print Services eLearning Sales Training Program. The program provides comprehensive, self-paced online training, which includes tests at the end of each module. It eliminates travel expense and out-of-office time. The online training is intended for dealership principals, sales managers, vice presidents and print specialists. There are eight modules: Developing an MPS Territory; The First Appointment; Performing an Assessment; Contractual Selling; Pricing a Transaction ; A Successful Strategy Session ; Designing Winning Proposals; and Expanding Your MPS Relationship. Metrofuser ServicePLUS Training — Beyond its remanufactured printers and printer parts, Metrofuser offers ServicePLUS Training, which is offered to BTA member dealers at a 10 percent discount. ServicePlus Training is a compilation of collaborative disciplines of parts theor y, service management and general printer repair. Five different courses are offered. — 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 Matthew Klure, Copy Link www.copylink.net Robert C. Goldberg, General Counsel Business Technology Association Mike Woodard, Strategy Development www.strategydevelopment.org

Business Technology Association 12411 Wornall Road Kansas City, MO 64145 (816) 941-3100 www.bta.org Member Services: (800) 505-2821 BTA Legal Hotline: (800) 869-6688 Valerie Briseno Membership & Marketing Manager valerie@bta.org Mary Hopkins Database Administrator mary@bta.org Teresa Leerar Bookkeeper teresa@bta.org Brian Smith Membership Sales Representative brian@bta.org ©2010 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

2009-2010 Board of Directors

BTA’s Commitment Has Long Endured rom my perspective, my year as national president of the Business Technology Association flew by like a bottle of toner at a printfor-pay. It seems like it didn’t last very long. An old and overused cliché provides the reason: “Time flies when you are having fun.” It has been a very enjoyable year. There have been countless conference calls and discussions among volunteers and staff via e-mail. There have also been various meetings and events to attend. However, it was an honor for me to be a part of all of it. I have found my year in the presidency — which comes to an end June 30 — to be rewarding in so many ways. Thank you for the opportunity to serve as BTA’s 75th president. As I consider that number — 75 — I can’t help but think of the many men and women who ser ved as BTA national president through the years. Since I joined BTA in 1981 and shortly thereafter became a volunteer at the local level, I’ve had the privilege of knowing many of my predecessors. Of course, there are many more whom I never met, starting with those who served the association before I was even born! But whether I knew them or not, one common trait among these individuals is apparent to me: All were champions of the entrepreneurial spirit and dedicated to the ongoing success of the independent office technology dealer. Otherwise, BTA would not have flourished for so many years. Certainly, the industry has changed significantly since it was established in 1926 as the National Association of Typewriter Dealers. (In case you are doing the math,

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some presidents served longer than one year.) Even the typewriter itself has all but disappeared. But through these many years, the association has been at the forefront in terms of providing dealers with insight and guidance to help them succeed every time the course of the industry has changed. When managed print services began its ascent, for example, BTA was the first in the industry to introduce a training workshop on the topic, the BTA MPS Sales Workshop, through our partnership with Strategy Development. Even with its long and distinguished history, I think that these last few years are likely among some of BTA’s best. Have you noticed the resurgence of your association? Have you noticed the growing list of member benefits, including new educational workshops? Have you noticed the new district events, and BTA’s growing visibility within the industry? I suspect that your answer to each question is “yes.” The reason for these recent strides is actually quite simple. A few years back, the volunteer leadership and staff took a close, new look at BTA with the goal of ensuring that it, in fact, remains positioned in every way to serving its dealer members at an optimum level. The result: An even greater level of commitment to move BTA to new heights. I’ve seen it firsthand. Your national and district leadership is a cohesive team of individuals who are passionate about continually strengthening BTA and, in turn, the dealer channel. If you have not already done so, I encourage you to take a look at the growing number of BTA member benefits listed on our Web site, www.bta.org. Your association is here for you. I — Bill James

President Bill James WJS Enterprises Inc. 3315 Ridgelake Drive Metairie, LA 70002 bjames@wjsenterprises.com President-Elect Rock Janecek Burtronics Business Systems Inc. 216 S. Arrowhead Ave. San Bernardino, CA 92408 rjanecek@burtronics.com Vice President Tom Ouellette Budget Document Technology 251 Goddard Road Lewiston, ME 04240 touellette@bdtme.com BTA East Todd J. Fitzsimons Network Imaging LLC 122 Spring St. Southington, CT 06489 tjfitzsimons@networkimaging.biz BTA Mid-America Ron Hulett U.S. Business Systems Inc. 3221 Southview Drive Elkhart, IN 46514 ron.hulett@usbus.com BTA Southeast Terry Chapman Business Electronics Corp. 219 Oxmoor Circle Birmingham, AL 35209 tchapman@businesselectronics.com BTA West Lokke Patrick Docutxt Corp. 11110 E. Artesia Blvd., Ste. B Cerritos, CA 90703 lokke@docutxt.com Ex-Officio/Immediate Past President Ronelle Ingram Steven Enterprises Inc. 17952 Sky Park Circle, Ste. E Irvine, CA 92614 ronellei@msn.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkel Newman & Rosenberg LLC 222 S. Riverside Plaza, Ste. 2100 Chicago, IL 60606 robert.goldberg@sfnr.com

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Development Platforms Facilitating integrated software applications by: Brent Hoskins, Office Technology Magazine

oday, office technology dealerships face the challenge of intense competition and the near commoditization of the equipment they sell and service. These realities have given rise to the quest for differentiation. How can the dealership best set itself apart from its competitors? Increasingly, the answer lies in the embrace of software applications. Document management systems serve as a good example. Today, a growing number of dealers are selling and installing systems from a growing list of dealer-friendly document management software companies. That may serve as a differentiator from the hardwareonly-focused competitor, but what next? How else can the dealership provide the customer a value-add differentiator that can further enhance productivity and improve workflow? One answer lies in the various development platforms unveiled by the industry’s hardware manufacturers in recent years. Actually, such platforms are by no means new to the industry. In 2003, Canon launched MEAP (Multifunctional Embedded Application Platform). Other development platforms followed. Among them: Kyocera Mita’s HyPAS (Hybrid Platform for Advanced Solutions); Lexmark’s eSF (Embedded Solutions Framework); Ricoh’s RiDP (Ricoh Developer Program); Sharp’s OSA (Open System Architecture) platform; and Xerox’s EIP (Extensible Interface Platform). Development platforms are used to facilitate a custom, integrated interface with a software application via an MFP’s control panel. Through the manufacturers’ development programs, independent software vendors (ISVs) — and often dealers and end users as well — are provided with tools, including access to software development kits (SDKs), in order to develop integrated interfaces to software. The promotional text for the Sharp OSA platform

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appearing on the company’s public Web site serves to further explain the value that manufacturers — and dealers — are now bringing customers through their development platforms: “Sharp OSA technology opens the door to transforming your MFP into a customized portal conveniently located throughout your business. Combined with the virtually untapped potential of Sharp OSA applications, it helps enable you to extract and access key document information, manage usage costs and improve workflow within your enterprise.” A key benefit of development platforms, says Vince Jannelli, associate director of applications and partners at Sharp Imaging and Information Company of America, is the ability for the dealership to add capability to the product it is placing. “For instance, if you have a customer that wants the MFP to integrate with Microsoft Exchange, if you are Sharp dealer, then you can find a Sharp OSA connector that integrates with Exchange,” he explains. “Or, say you have a customer using Google’s Gmail; you can then find a company that provides a software application that fully integrates with Gmail.” There is no shortage of third-party companies offering Sharp OSA integration. “In the U.S., there are about 130 companies in the Sharp Partner Program and about 64 validated products,” says Jannelli. Sharp OSA developers can have their software integration validated to provide assurance of successful operation on Sharp OSA-enabled MFPs. “So, if you are scanning or printing or whatever you are doing, we validate that the user interface works when you hit a particular button and that it does so consistently across all of our devices.” Beyond simply adding to the MFP’s capability, development platforms can be used to facilitate customized workflows. “It allows you to customize a system to meet the particular

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DEALER MANAGEMENT SOFTWARE

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includes applications develneeds of your customer,” says “Frankly, we view this as a oped by Lexmark and conJannelli. “For example, when new revenue stream — nectors to third-party softthe user scans a purchase ware utilizing Lexmark’s eSF. order at the MFP, it can be a money-making “We consistently see an automatically archived, sent opportunity for dealers. increase in downloads from to accounting [so that an in... Making it easier for the Virtual Solution Center voice can be produced] and dealers to understand each month ,” says David generate a pick list that is how to be a consultant ... Carr, who, like Hart, serves sent to the warehouse.” is a key focus here at Lexmark.” as a business development Jann elli add s that th e — Phil Boatman manager at Lexmark. “Most interest in development Lexmark International Inc. all of the partners in our BSD platforms has increased in program utilize the Center.” the past couple of years, Boatman cites another indicator of the number of given the downturn in the U.S. economy. “One of the things that is allowing dealerships to move forward is the ability to Lexmark dealers selling software-based solutions. “The add value and differentiation in a crowded marketplace,” he attach rate of devices being sold by our dealers with solusays. “You are not going in there to sell a ‘copier’ anymore. tions on them is rapidly growing,” he says. “That’s what is You can say, ‘Look, I understand that you have fewer people exciting us. We are seeing this become an integral part of the and you are trying to do more; I can increase your efficiency.’ dealer business strategy.” As noted, sometimes it is the dealership, rather than an That, really, is what the integration of hard copy with the ISV or end user, that is creating the integrated software business operations is intended to achieve.” Phil Boatman, manager of Business Solutions Dealer interface, through participation in a manufacturer develop(BSD) program development at Lexmark International Inc., ment program. It appears that Kyocera Mita America Inc. is shares a similar perspective. “Frankly, we view this as a new the latest manufacturer to provide dealers — along with revenue stream — a money-making opportunity for dealers,” ISVs and end users — the opportunity. In September of 2008, he says. “Differentiation with standard copy/print/scan/fax the company announced the initial phase of the launch of technology is difficult. However, making it easier for dealers HyPAS, which enabled Kyocera to integrate software from to understand how to be a consultant and understand their companies such as Equitrac into select MFPs. However, in customers’ businesses is a key focus here at Lexmark. We April of this year, the company launched the Developer work to teach our dealers to sell in a successful, solutions- Support Program and partner Web site for HyPAS. While she acknowledges that Kyocera is a late arrival with oriented way so that they gain on their competitors, helping their customers in a meaningful way that applies directly to its development program, Akisa Matsuda, director of software solutions at Kyocera, emphasizes that it offers an additional the customer’s mission-critical work.” By selling as a consultant, the sales reps can ensure that capability that she says sets the company apart from other the customer no longer sees an MFP as “just speeds and manufacturers. “The Kyocera Developer Support Program feeds or a CPC charge,” says Mark Hart, a business develop- helps dealers to differentiate from competitors by utilizing ment manager at Lexmark. “When the customer sees an HyPAS Tool Kits to customize their solutions’ capabilities and [eSF-enabled] application and the power of what they can solve customers’ unique problems,” she says. “It is the HyPAS do on the touch screen, they quickly see how the machine is Tool Kit that is very unique. Instead of providing our SDK to no longer a peripheral, but now it becomes embedded into our dealers, we developed the Tool Kits so that the dealer can the everyday workflow,” he says. “It has turned into an create applications for their customers easily and quickly.” Matsuda notes that the Tool Kits do not require dealereveryday workflow machine.” Lexmark dealers are increasingly moving to a solution ships to have programmers. “It’s not like that,” she says. “You sales approach. In January 2009, the company launched its just join the Developer Support Program and take advanVirtual Solution Center, a Web-based tool that enables tage of it. We offer the training and support. And we are dealers to access, deploy and install embedded software not charging dealers to join the program. If desired, the applications for their customers’ Lexmark MFPs. This dealership can offer this as a professional service. Our 12 | 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 1 0

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interest is, we want to help the decision that ‘this is what “Sharp OSA-enabled dealers sell Kyocera product.” we are going to do.’” applications can add value Of course, says Matsuda, it Once that decision is from little increments all is up to the dealership owner made, says Jannelli, the dealto take the first step — comership will see the rewards. the way to complete mitting to the Developer “Sharp OSA-enabled applicasoftware deployments ... Support Program. “The level tions can add value from As you scale upward, the of commitment from the little increments all the way value-add becomes bigger dealership owner is very, very to complete software deployand the revenue opportunities increase.” important,” she says. “Withments, from adding an e— Vince Jannelli, Sharp Imaging out that, the dealership will mail Exchange connector to and Information Company of America probably not succeed selling a document management embedded and integrated application,” he says. “As you software applications.” scale upward, the value-add becomes bigger She is not alone in her observation, in terms of the neces- and the revenue opportunities increase.” sary commitment and the dealership’s success. Says Hart: “I Brent Hoskins, executive director of the Business Technology Association, is editor of think it does come from the top down — owner buy-in that Office Technology magazine. He can be applications is where they want to go.” Says Jannelli: “It’s reached at brent@bta.org. driven from the top. Executive management needs to make

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Engaging IT Professionals What do they expect from your dealership? by: Matthew Klure, Copy Link

n today’s copier/MFP and printer sales and service market, it has been apparent for many years that office technology dealership personnel and service providers need to be able to make friends with and understand their customers’ IT professionals. How do we get in to see the head IT professional and show him (or her) that we are prepared to work with him and not cause more issues for him to fix? The first thing any service provider or dealership needs is an in-house solutions specialist/IT professional. Without this crucial employee, you will never be able to gain the trust of a customer’s IT department. Knowledge is power in the IT world, and if you are not prepared to have that knowledge in-house, you are not prepared to go anywhere near a customer’s network. Secondly, once you have an in-house IT professional of your own, never have a sales rep go on an appointment where the customer’s IT person is going to be and leave your own IT support at the office. IT professionals view all non-IT people as “users,” and users who try to sell them network technology are not given the time of day. Your internal solutions specialist/IT professional needs to be presented to the customer as a trusted resource for both you and the customer. I have been in this industry as a solutions specialist/IT professional for the last 10 years and have seen the sales and implementation cycle from the dealership perspective. So, I took the time to reach out to some fellow IT professionals who are not in the copier/MFP sales industry and asked them what they expect from an MFP dealer and service organization. Here are some of the replies I received: “Robert” gave me this list of requirements: Up-to-date software and drivers. It should work on Windows Server 2008 R2, Mac, Windows 7, etc. Centralized management of MFPs. When you have 100plus MFPs on- or off-site, it makes life easier to check for problems and deploy updates if everything is in one place.

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Configuration by policy. No one wants to configure LDAP and address books on 100 MFPs. Notification (or better yet, auto update) of firmware. Parts availability. The more parts stocked, the better. A week is too long to wait for any part. Scheduled maintenance. “Everyone touts this, but few live up to the expectation. If it is not in my Outlook calendar and I do not have the name or number of the tech, then how is it scheduled? This goes back to communication and punctuality. When a tech comes in to fix chronic paper jams and tells me that a roller needs to be replaced and it is going to take a few days to get the part, that is simply unacceptable.” Ease of use. “Most users do not scan because the control panel is too complicated. The more straightforward and the fewer the number of menus, the better it is. Sales reps say they will train, but when you have locations all over the United States, or have new employees, the training is just not enough. I prefer self-explanatory to training.” “Michael” said just one thing: “I want them to know what they are talking about.” “Richard” also had a detailed response to my question: “I would expect prompt, timely repair and turn-around.”

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Recognition of lemon devices and of your service organization to fill this Your customers are going timely replacement after all options role i s al so an option since h e has have been explored. become familiar with how the specific to want to see a person A deep understanding of the netMFPs your company sells and supports who is knowledgeable working capabilities of the devices. work on the network. and a good people The ability to be able to direct the However, I have a few warnings about person before choosing customer to technical resources availdoing this. If you do choose a tech, make to engage in business able online for further research. sure he is one w ho not only has an with your organization. The ability to provide suggestions interest in computers and networks, but or documents stating best practices for who can communicate this interest in a the usage and implementation of the devices. meaningful way. There are many computer lovers in the Direct, honest answers as to what the device can do, world who have limited people skills. Your customers are and set realistic expectations for the device. going to want to see a person who is knowledgeable and a Best case scenario: A partnership with a dealer in good people person before choosing to engage in business which the dealer role is one of providing the printing solu- with your organization. Also, once the decision has been made to bring a tech tion, information about industry trends and solutions available that could either reduce cost or increase revenue for over into a pure solutions and IT support role, you have to separate him from the hardware duties he once filled. If your the client. “On IT, I live by the following: lower management costs, solutions person has to cancel sales appointments to go fix a reduced manpower requirements, increased efficiency and broken machine, it just will not work. I have seen too many forging a long-term partnership that is mutually beneficial,” cases where this has happened, only leading to disgruntled says Richard. “Dealerships that are out for the quick buck sales reps who need the knowledge your IT person brings to and burn their customers are not seeing the big picture. the table. If you choose to promote a tech to this role, please Long-term relationships can make or break a dealership. replace his position on the service team. The only way to effectively engage the IT departments that Look at Dell as an example. They lowered the quality of their customer service by off-shoring it and lost many long-term are increasingly making the decisions about what copier/MFP customers for years. Short-term gains cost too much over or printer to buy for their company is to have an IT person of the long term. Michael Dell had to come out of retirement to your own. Not just one to take care of your in-house IT issues, fix his company. but one to take care of customer issues. Make sure it is some“Dealerships that are up against the 800-pound gorillas one who has a good understanding of multiple networking — direct manufacturers, such as Xerox, Ricoh and Canon — protocols and, when put to the test by your customers, can need to think they are performing guerrilla warfare,” ensure your dealership shines. In the business-to-business Richard continues. “Dealerships have to provide something sales model, business is done via relationships. That means that an 800-pound gorilla cannot. Find your niche, cater to your sales staff needs to have a relationship with the custhe customers’ needs and be nimble and flexible. Eight- tomer’s CEO, CFO, office manager, etc., and your IT staff needs hundred-pound gorillas lumber down the road and take a to have a relationship with your customer’s IT staff. Being successful is not about being the smartest person, long time to change direction.” One of the key similarities among the comments from but rather, it is about surrounding yourself with the smartest these professionals is knowledge — that is, knowing what people. Invest in the right people and success will follow. Matthew Klure is director of IT at Copy Link in San Diego. your products can and cannot do on the network and being For the past 10 years, he has been involved with the able to back that up in practice. connectivity of MFPs to customer networks If your organization does not yet have an IT person or and software, working at both the solutions specialist, there are some basic guidelines to manufacturer and dealership levels. He is follow when looking to hire one. To start, be sure to find out about his knowledge of network protocols, especially SMB also experienced in a wide variety of document management and scanning applications. file shares and LDAP authentication, before you hire him. Visit www.copylink.net. Taking the most network-savvy tech from among the ranks 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 1 0

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Do you crunch the numbers,

or do the numbers crunch you?

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‘Convergence 2010’ Dealers introduced to new Ricoh leadership team by: Brent Hoskins, Office Technology Magazine

here was an emphasis on the company’s managed document services strategy and announcements of coming product launches. There was also the opportunity to attend various education sessions and learn about the products and services of Ricoh and a number of other exhibiting partner companies in the Technology Expo. However, one of the primary areas of focus at the recent Ricoh Americas Corp. national dealer meeting was the convergence of Ricoh and IKON. After all, the meeting took place shortly after Ricoh announced that IKON executives had assumed leadership roles at the company. Ricoh acquired IKON in 2008. Drawing more than 1,000 attendees, including authorized Ricoh, Savin and Lanier dealers, the meeting was held April 19-22 in Las Vegas. It was the first for the company to include dealers representing all three brands, reflected in the theme and title of the event, “Convergence 2010: Bringing the Best Together.” The title served the dual role of reflecting the integration of Ricoh and IKON as well. “I am pleased to announce Matt Espe’s appointment to chairman and CEO of Ricoh Americas Corp.,” said Kevin Togashi, who was recently named chairman and CEO of the newly formed Ricoh Americas Holdings Inc., personally announcing other recent executive promotions during the meeting’s opening General Session. “As chairman and CEO of IKON since 2002, Matt’s strengths in leadership and vision have led to outstanding results for IKON.” Ricoh Americas Holdings Inc. manages the asset value and executive governance of all Ricoh sales companies in the Americas. Through direct sales and the dealer channel, Ricoh Americas Corp. includes operations in North, Central and South America, and is the parent company of Ricoh U.S. Togashi also told of the newly expanded role of Jeffrey Hickling, who joined IKON in 2005, ultimately becoming its president and COO. Hickling’s expanded role now includes president and CEO of Ricoh U.S. He is responsible for

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Clockwise from top: Attendees learn more about one of Ricoh’s products in the Technology Expo; Matthew Espe, chairman and CEO of Ricoh Americas Corp.; Jeffrey Hickling, president and CEO of Ricoh U.S.; and Kevin Togashi, chairman and CEO of Ricoh Americas Holdings Inc. Ricoh’s dealer network, as well as its U.S. direct sales and service organizations — Ricoh Business Solutions and IKON Office Solutions. During the General Session, both Espe and Hickling introduced themselves to dealers and commented on the integration of Ricoh and IKON. They also sought to reassure dealers that Ricoh remains committed to the dealer channel, echoing similar comments from Togashi. “I want you to know this,” said Togashi. “For Ricoh to position itself as a market leader in the U.S., there is one

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thing we must do. We must ensure the what our priorities should be and help “As we create a plan success of the independent dealer with point out our challenges.” a level playing field. We are committed In his comments to dealers, Hickling to build a stronger to your growth and we anticipate that sought to quell any concerns about IKON organization through the dealer business in the total Ricoh pursuing dealers’ customers. “Ricoh integration, our goal is Americas’ business will expand to a didn’t acquire IKON to cannibalize the to strengthen our much higher level.” dealer channel,” he said. “That would company and provide Espe emphasized an increasingly make no sense. There is no way that any better support for you.” important role for dealers as well. “We of the direct channel would know your understand that our job is to help you customer base better than you do. Our win, and I want you to understand that you are an essential goal is to invest in the dealer channel and help you win with part of our strategy,” he said. “You are as important today as your customers and expand the total Ricoh base.” you ever have been and, arguably, more important.” The integration of Ricoh and IKON will benefit dealers, said Dealers will be brought into the dialog to provide Hickling. “As we create a plan to build a stronger organization counsel as the process of integrating Ricoh and IKON pro- through integration,” he explained, “our goal is to strengthen gresses, said Espe. “We want to take a look at our business our company and provide better support for you.” Brent Hoskins, executive director of the Business Technology from the outside in, and that really starts with you,” he said. Association, is editor of Office Technology magazine. “We want to talk to our dealers ... and we want you to help He can be reached at brent@bta.org. us frame our strategy. We want you to help us determine

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‘The Power of Performance’ Konica Minolta dealers assured of channel unity by: Brent Hoskins, Office Technology Magazine

ringing together representatives of both its direct operations and authorized dealership partners, in part to further foster distribution channel unity, Konica Minolta Business Solutions U.S.A. Inc. (KMBS) hosted the Konica Minolta Business Conference & Product Expo, May 1-5, in Los Angeles. The conference, themed “The Power of Performance,” drew more than 1,000 attendees, including 380 attendees representing 180 dealerships. During his welcoming comments in the opening General Session, Rick Taylor, senior executive vice president and COO of KMBS, emphasized the company’s focus on channel unity. “Two years ago, when I said we would be one company with one vision and one voice, I meant it,” he said. “We’ve made a lot of changes to get to this day.” Those changes, said Taylor, include changes in KMBS’s business structure, direct cost model, compensation model and programs. “And sometimes, when all else failed, we changed people,” he said. “These changes did not just affect Konica Minolta employees. Today, we have 97 fewer dealers in part because some dealers didn’t want to change with us. Our unending determination has prevailed.” With “dramatically” lowered fixed expenses, Taylor said the company’s direct branches are “now profitable on a dealercost operating model,” realizing a $70 million-plus increase in operating income since 2008. If the direct branches were not profitable, dealers in the same markets could not be expected to “make a lot of money,” he said. “We have to have a very profitable direct organization so that we’ll have credibility when we stand in front of our dealers and say, ‘You can be in these markets, they [KMBS direct branches] will stay out of your way and you can make money.’” In the past year, the “direct channel has embraced our policy with respect to our dealer partners,” said Taylor. “They completely understand and agree that we will not sell to our dealers’ customers. They also completely understand that we will not recruit our dealers’ employees.”

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Clockwise from top: Attendees learn more about one of Konica Minolta’s current products in the conference’s Product Expo; Rick Taylor, senior executive vice president and COO, Konica Minolta Business Solutions U.S.A. Inc. (KMBS); Ned Umehara, president and CEO, KMBS; and Masatoshi Matsuzaki, president and CEO, Konica Minolta Holdings. Taylor praised both direct and dealer channel representatives for their recent successes. “Thanks to the total efforts of everyone in this room and your colleagues who are working hard back home, in a market that went down 15.7 percent last year, we increased our total unit placements in excess of 10,000 units or 10.7 percent last year,” he said. “Our placements were 55 percent direct and 45 percent dealer. That’s a very healthy channel mix that bodes well for our

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future growth in both channels.” about to make is fair or not,” he ex“Our organization will In his comments during the General plained. “Our organization will work Session, Masatoshi Matsuzaki, president hard at every level to ensure that we work hard ... to ensure and CEO of Konica Minolta Holdings, treat our custom ers and th eir emthat we treat our shared numbers as well, but from the ployees with the fairness they deserve customers ... with the perspective of Konica Minolta globally. and we must ensure fairness in our fairness they deserve and For the fiscal year that ended March 31, daily business.” we must ensure fairness “our total revenue was over $9.5 billion, Umehara also paid tribute to his in our daily business.” with operating profit of just over $560 predecessor, Jun Haraguchi, now serving million, delivering a return on sales of in Japan as director and general manover 5.4 percent,” he said, noting that KMBS parent com- ager at the sales headquarters of KMBT, complimenting his pany Konica Minolta Business Technologies (KMBT) “strong leadership” in building a “solid foundation” for accounts for 67 percent of Konica Minolta’s revenues. KMBS. “I would like to build further on this foundation,” he The conference also provided an opportunity for atten- said. “I want to develop a very strong ‘Team U.S.A.,’ as I like dees to hear from Ned Umehara, the newly appointed presi- to call it. I feel very fortunate and proud to be a part of ‘Team dent and CEO of KMBS. In his comments, he emphasized, U.S.A.’ with you.” Brent Hoskins, executive director of the Business Technology in part, that a key component of his business and personal Association, is editor of Office Technology magazine. philosophy is to always be fair. “When I face a difficult busiHe can be reached at brent@bta.org. ness decision, I always ask myself whether the decision I’m

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2010 MPS Conference Photizo Group hosts second annual event by: Elizabeth Marvel, Office Technology Magazine

y now, most dealers realize that the marketplace is changing. In order to keep up with that change, dealers must constantly educate themselves about new technology and service offerings they can provide their customers. One of these offerings, managed print services (MPS), is a huge opportunity for dealers today, and attendees at the 2010 North American MPS Conference were assured that creating MPS offerings in their businesses was the correct next step to dealership success. The conference, hosted by the Photizo Group, was held May 3-5 in San Antonio. It brought together 290 attendees, including representatives from 59 dealerships, to discuss the evolution of MPS. Fifty-four attendees were from foreign countries, showing that MPS is not only a North American phenomenon, but a global one. On May 3, the conference held a series of workshops for end users and dealers who were just getting into the MPS space. These hands-on workshops gave attendees the opportunity to get better acquainted with MPS technology and the basics of MPS before learning more about the specifics of the offering during the main conference. The conference kicked off on May 4 with a keynote by Mark Boelhouwer, vice president of marketing for Ricoh Americas Corp. He touched on the foundational elements of MPS, giving attendees three things to focus on. “The first part we like to talk about is continuous optimization,” said Boelhouwer. “The second one ... is called change management. The third part is business process improvement or document process improvement. How can we leverage what we have today and the infrastructure from customers?” Boelhouwer’s keynote was followed by a State of the Industry address presented by Ed Crowley, founder and CEO of the Photizo Group. The presentation, “Exploiting Chaos — Creating Opportunities in the MPS Market,” focused on how the industry is changing and how dealers can make the most of that change. He also gave attendees an official definition of

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Clockwise from top: Jim Fitzpatrick, president of MPSA, presents MPSA’s 2010 MPS Leadership Awards during the May 4 lunch sponsored by Print Audit; Attendees visit the exhibit booths during a break; Mike Stramaglio, president and CEO of MWAi, presents his education session on May 4; and Ed Crowley presents his State of the Industry address.

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MPS, created by the Managed Print On May 5, keynotes were presented by “ ... ‘Managed print Services Association (MPSA). Jason Evans, president and CEO of PEQ “How they’re [the MPSA] describing Services & Solutions, and Dena Bernard, services is the active MPS is: ‘Managed print services is the director of customer satisfaction and management and active management and optimization of services at OKI Data Americas Inc. optimization of document output devices and related Each day’s keynotes were followed by document output business processes,’” said Crowley. three education tracks, and during devices and related Crowley also touched on the cost breaks, attendees could network with business processes.’“ sav in gs a custom er can get from peers or visit the exhibitor booths. Once deploying an MPS solution in his (or each day ’s education was complete, her) business. “So the new model, the managed print serv- attendees mingled at cocktail receptions hosted by MWA ices model, is really a pretty simple one,” said Crowley. “From Intelligence (MWAi) and United Stationers. a customer perspective, I have a vendor and they manage The final session on May 5 was an “Ask the Experts” panel, everything for me. And, in fact, not just manage the hard- where attendees were given the opportunity to ask quesware and infrastructure and the deployment services, but tions of Photizo Group consultants. they manage [the questions]: ‘How do I come up with a docThe MPSA also presented its 2010 MPS ument strategy? How do I improve my business processes? Leadership Awards and conducted its How do I improve how my business operates?’ And by doing annual meeting during the conference. Elizabeth Marvel is associate editor of that, on average, they improved their employee device ratio Office Technology magazine. She can be to 6-to-1 from 2-to-1 — a three times improvement. They reached at elizabeth@bta.org. reduced employee costs by $225 per year [per employee].”

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COURTS & CAPITOLS

Thank You, CBS Reporting provides service opportunity for dealers by: Robert C. Goldberg, General Counsel for the Business Technology Association

he first report was in Sacramento, Calif.; the second was on the CBS Evening News; and , recently, there was a third report here in Chicago. The BTA Legal Hotline lit up after each report and did not stop for several days. In case you missed it, CBS reported — in an investigative fashion — that the many copier/MFPs returned by customers contain thousands of documents on their hard drives. Of course, CBS found copier/MFPs with medical and criminal information, making the story quite attractive. These news reports did not come as a surprise to BTA — the association had been contacted by a CBS producer during the “investigative” stage. Rather than investigate, the nature of the inquiry reflected a desire to find a party to blame for any end user unknowingly leaving data on a hard drive. Let me assure you that a dealer is not responsible for images or data left on a copier/MFP or printer when it is traded in, discarded or comes off lease. A dealer is no more responsible than an automotive dealership would be responsible for you leaving your wallet in the glove compartment when trading in your car. These investigative reports had a very positive effect. The information provided alerted end users to the fact that “confidential information” may not be as confidential as thought. The reports also provide an excellent service opportunity for every dealer. The opportunity is especially good with banking, mortgage, health care, insurance and government placements. Laws and regulations regarding the confidentiality of information received govern many of these industries. My first recommendation is that your sales and service people convey to end users that there is memory in these devices and the memory retains a certain amount of information. There are also e-mail and IP addresses that are programmed into the device. This is all information an end user should want to protect. Through early education, the cleansing process will be easier to sell at the time the equipment is returned. The terms and conditions of your sales document, maintenance agreement and lease agreement should all clearly state:

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“End user is solely responsible for the removal of any data and/or images maintained on the equipment.” Although there is no liability for this data, it is always preferable to have a provision to point to if the issue arises. This provision may also lead to a discussion of data cleansing services. Dealers have long provided data cleansing services to sensitive industries. These services are often presented as having three alternatives. The first cleansing option is to cleanse the hard drive by reformatting it one time and eliminating all e-mail information and IP addresses. The second option is to reformat the hard drive three times and remove the e-mail information and IP addresses. The third is to remove, destroy and replace the hard drive. Once a dealer provides one of these services, the dealership becomes responsible. There should be a concern with the effectiveness of the reformatting process. Because a hard drive is reformatted, it does not mean the data is not recoverable. In a litigated matter I handled, an individual returned a laptop computer with all the programs and files “erased.” The hard drive was sent to three former FBI agents who were able to recreate 98 percent of the information. Thus, when offering the three options, be certain to present them as “effective,” “more effective” and “most effective.” If the cleansing program is provided by your manufacturer, be sure to review its disclaimers and be sure to include similar ones in your transactional document. Finally, if you offer cleansing services and the end user declines, you may wish to seek a waiver of liability. An end user who is asked to waive liability will sense the seriousness of the issue and perhaps reconsider his (or her) decision. If not, you have a waiver if an issue ever arises. A sample Data Cleansing Waiver i s p o st ed on th e BTA Web sit e, www.bta.org, in the members-only section under Legal Documents. Robert C. Goldberg is general counsel for the Business Technology Association. He can be reached at robert.goldberg@sfnr.com.

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EDUCATION CALENDAR July 22

Building My Business Webinar — “Your Exit Strategy” Have you worked out your long-term plan or exit strategy? Are you considering selling your dealership, or perhaps buying another? Do you want to know the true value of your dealership? When thinking about exit strategies, the time to plan is now. What you do today will have a tremendous effect on how much your dealership will actually be worth five to 10 years from now. This webinar, presented by Jim Kahrs of Prosperity Plus Management Consulting Inc., will outline what drives the value of your dealership. You will learn how to create a viable exit strategy before the time comes for you to step aside and pursue other interests. Free to BTA members, this webinar is scheduled for 4 p.m. Eastern, Thursday, July 22.

August 11-12 BTA ProFinance

Chicago, IL ProFinance instructors John Hanson and John Hey of Strategic Business Associates will teach you the financial model that helped them make the decisions that grew DC Hey from a $5 million to a $170 million IKON-acquired enterprise. In addition to helping you implement the model in your company, they will help you understand the strategies required to become more client and employee focused.

17-18 BTA Service Management University (SMU)

Denver, CO Service managers are under pressure to deliver sustainable margins greater than 52 percent. In order to achieve this goal, they need to understand a multitude of profit inputs that range from setting prices to employee performance and development. When service leaders leave SMU, taught by Mike Woodard of Strategy Development, they will understand how to identify and address any issue within the service department.

Building My Business Webinar — “Leadership Development & Empowerment for Office Equipment Dealers” Too often business leaders take too little time to focus on their own development because they are simply too busy running the day-to-day of their businesses. A void in your company's leadership can hold back or hurt your dealership. During this webinar, presented by Sally Brause of GreatAmerica Leasing Corp., you will learn the attributes associated with successful leadership and how you can develop these attributes within yourself and your dealership management team. Practical and actionable tools will be shared based on current business case studies. Free to BTA members, this webinar is scheduled for 4 p.m. Eastern, Wednesday, August 25. For additional information or to register for courses or webinars, visit www.bta.org 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 Alternative Mailing & Shipping Systems, Arlington, TX Amerx Office Solutions, Austin, TX Bundy Business Systems, Champaign, IL Complete Business Systems, Boise, ID Dataflow Business Systems, Salinas, CA Document Imaging Partners, Breslau, Ontario, Canada Gallup Business Systems, Gallup, NM ID Group, Ridgeland, MS Michigan Business Systems, Southfield, MI Printers Plus, Ottawa, Ontario, Canada Vendor Associate Members Diversified Computer Supplies, Ann Arbor, MI Union Technology International, Macau SAR, China Service Associate Members Lease Corporation of America, Troy, MI For full contact information of these new members, visit www.bta.org.

Metrofuser ServicePLUS Training Metrofuser’s ServicePLUS Training will provide students with hands-on, real-life scenarios that will challenge them to repair everything possible for each technology element. BTA members receive 10 percent off. Students can attend up to five consecutive days of courses, with pricing discounts based on the number of courses. To register, visit www.bta.org and click on “Education & Certification.” For more information on BTA member benefits, visit www.bta.org.

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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 Falcon Technology Solutions has worked with small, medium and large companies to provide effective solutions to business problems. The Falcon team provides complete systems and business tools from requirements to commissioning. With an extensive knowledge of quality software systems, Falcon can provide your company with requirements analysis, project management, implementation, quality assurance, ongoing product enhancement and maintenance, and more. www.efalcontech.com BTA Service Associate member BERTL is an independent testing laboratory whose purpose is to provide objective, independent product evaluation reports and comparative analyses on imaging devices and software workflow solutions. BERTL’s Testing Laboratory is responsible for developing and applying technology, measurements and standards that are used in its product evaluation reports and analyses. In particular, BERTL has developed software testing tools and methods used to test the claims made by manufacturers. www.bertl.com A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.

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MPS STRATEGIES

Service Success in MPS How to avoid & correct common pitfalls by: Mike Woodard, Strategy Development

s most dealers and resellers know, print management/ MPS is not a buzzword that is going to fade away. It is a new go-to-market strategy that allows companies to penetrate new customers and add a highly profitable recurring aftermarket revenue stream. Frequently, service is left to “figure it out on their own” after the contract is written. Having been responsible for MPS service delivery at previous employers, as well as being involved in helping our clients succeed in MPS as a service consultant with Strategy Development, I have experienced and observed some common service pitfalls, or mistakes, that occur when moving into the MPS arena. The good news is each of these pitfalls can be avoided or corrected once you know they exist and take the proper steps to change your approach. The first pitfall, and one of the most costly, is assuming customer expectations. Over the years, the copier/MFP industry standard for response time has settled at four hours. What is interesting is that end-user customers did not randomly select four hours as their response time requirement. We, as service providers, became very good at delivering a four-hour average response while achieving desired service margins. Most printer users are accustomed to receiving “next-day” or even “secondday” service, especially when their service support is internally sourced. Incremental technician staffing is required to deliver a four-hour versus an eight-hour average response time, commonly referred to as response time loading. The labor cost differential associated with incremental staffing, in this example, is from 10 to 14 percent. So, rather than lead with a four-hour response time guarantee for printer service, start with a “nextday” response, or a guaranteed “eight-hour response, 70 percent of the time.” Yes, there will always be mission-critical situations that require a four-hour response time; however, you will find that eight-hour or “next-day” service is quite acceptable in most printer situations. The next common service pitfall is placing stringent restrictions on printer models that can be included (supported) in a printer fleet contract takeover. To be successful and grow MPS aftermarket revenue, service has to be flexible and creative. There are numerous sources of training, parts and technical support for most laser-based printers. Once under contract, the one-off, orphan printers included in a printer fleet can be

replaced with readily available, easily supported, used HP printers. Remember, the objective is to get the printer fleet under contract. Yes, there are printer models to stay away from — ink-jet printers (which are repair by replace) and drumbased MFPs (unless you are an OEM-authorized dealer). Another service pitfall, also related to MPS printer fleet takeovers, is requiring detailed device pre-inspections. Equipment pre-inspections are a common service practice in the copier/MFP arena; however, in the MPS world, equipment preinspections are not worth the time, effort and risk (you could loose the deal). Instead, simply require that the device makes a print. Once again, do not lose sight of the objective of getting the fleet under contract. Once the MPS strategy takes hold, there is a common tendency to continue servicing the expanding printer base with existing copier/MFP technicians, which can be an expensive proposition. With proper training and support, entry-level technicians can provide outstanding printer field support. There are also significant productivity and proficiency benefits associated with technician specialization on printer products, i.e. smaller, more effective trunk inventories, increased first call effectiveness and ultimately, happier, more loyal customers. While existing copier/MFP dealers may possess the necessary 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 1 0 | 29

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service infrastructure and resources to huge labor savings opportunity, and labor However, in the support MPS, there are some aspects of makes up 75 percent of the total service the traditional service delivery model that cost in printer service delivery. printer environment, may not apply. The bottom line: Today’s copier/MFP service may only be As an example, there may be little value service providers are quite capable of required once a year, in assigning dedicated printer technicians taking on service delivery in the MPS arena; or less. The value to individual territories. One of the biggest however, there are a few common pitfalls of assigned territories benefits associated with assigned territothat, when avoided, can ensure effective is diminished. ries has been the value of technician/cusand profitable service results in a rapidly tomer relationships, which makes sense growing market. when the customer sees the technician on a regular basis. Mike Woodard is a consultant with Strategy Development, an However, in the printer environment, service may only be imaging industry management consulting firm. He has 30-plus required once a year, or less. The value of assigned territories years experience in all aspects of field service operations is diminished. There can be greater value in applying a “route and service strategy development. During his 20 years with service” strategy, which assigns service calls based on location IKON Office Solutions, Woodard held key regional and national intelligence — who is available, closest, trained, has the right service operations positions including national vice president of field service strategy, national vice president of field services part, etc. Also, because printer average repair time is less than and national vice president of field service operations. that of copier/MFPs, the calls-per-day expectation is higher. Prior to joining IKON, he spent 18 years with Xerox Corp. in With more calls per day, there is a greater need to minimize travel time. Route service using location intelligence can mini- multiple field service assignments. Woodard advises companies on critical success factors including target service metrics and mize travel time. goals, performance management, technology application, Another example is traditional “call avoidance” practices. In service growth strategies, and compensation and incentives. the copier/MFP service world, call avoidance generally involves In addition, he provides leadership the technician calling the customer first to see if the problem and management development training can be fixed over the phone. The printer service environment lends itself well to the use of a formal, customer-facing help designed for the service professional. desk. Today, printer service providers with customer-facing Woodard can be reached at help-desk capabilities are able to resolve 30 percent or more of woodard@strategydevelopment.org their incoming requests for on-site service. This represents a or (610) 742-4701.

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Recharger ad June 10:Layout 1

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Our Community. Our World. Your Business.

JULY 14-15 MANDALAY BAY RESORT & CASINO LAS VEGAS

WORLD EXPO, BRINGING OUR INDUSTRY TOGETHER FOR 15 YEARS

JOIN US AT WORLD EXPO 2010, the tradeshow at the heart of our community. Be part of the largest document printing industry aftermarket event in North America! World Expo brings our community together for 2 full conference days packed with progressive education—making it the must-attend event of the year!

Session Highlights Include:

Legal Issues, Environmental Opportunities and Proﬁts in 2011 Tricia Judge

Inkjets: Just the Basics Ben Lyles

Managing Your MPS Business to Proﬁtability Doug Johnson

Servicing the New LJ P3015 Series Steve Geishirt

Seven Steps of Sales Success Brad Roderick

Common Cartridge Problems Tom DiPasquale

Your Registration Includes: • 2 full conference days packed with progressive education • Cutting edge information—new remanufacturing techniques and technical advances • Exciting, interactive learning sessions presented by industry leaders • Strategies to push your business & brand forward in tough economic times

Add the 2nd Annual Managed Print Summit on July 13th to Your World Expo Registration and Save Over $100 Details Online!

• One-on-one insight—see, touch & learn on the exhibit floor • Opportunities to expand your professional network • And much more!

worldexpo.rechargermag.com USE PROMOTION CODE NQXO

EARLY BIRD SAVINGS END JUNE 16TH— REGISTER TODAY!

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

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Executive Team Business Planning to help

INTRODUCING

you develop, sell, manage and grow your Managed Print Services initiative.

Your guide to MPS success

Sales Training to teach the MPS sales process and develop teams with advanced deal crafting and interactive best practice sharing.

800.234.8787 | www.greatamerica.com/Navigator