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CONTENTS Volume 19 • No. 9
FEATURE ARTICLES 10
The Right Mix A3 on solid ground, but A4 making strides
COURTS & CAPITOLS Patent Trolls Many are facing an unconscionable shakedown
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by Brent Hoskins Office Technology Magazine
by Robert C. Goldberg BTA General Counsel
To an outsider, the difference between products labeled A3 and A4 must seem relatively insignificant. In the office technology dealer’s world, however, the differences are far from insignificant. In fact, some may say they are like night and day.
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Winter Break BTA Southeast hosts district event in Orlando, Fla. by Brent Hoskins Office Technology Magazine
Challenging a patent in federal court is a time-consuming and expensive endeavor. By seeking license fees from small businesses, patent trolls are shaking down entities that do not understand the patents, have the time or ability to decipher them, and cannot afford a lawsuit to challenge their claims.
P R I N C I PA L I S S U E S Times Are Changing Are you & your dealership adapting?
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by Troy Harrison SalesForce Solutions
Hosted by BTA Southeast, the district’s annual Winter Break educational and networking event took place Feb. 8-9 at the Rosen Centre Hotel in Orlando, Fla. It was the fi rst of five 2013 BTA district events specifically designed for office technology dealers.
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CompTIA Certification Primer Updates, performance-based testing announced by Christopher Bennett Success Assured Seminars
I was speaking at a recent trade show and some of the questions I received got me thinking about how the mechanics of selling have changed over the past 10 to 15 years. What is worse, it got me thinking about how little sales training and sales knowledge have changed to adapt to it.
Executive Connection Summit Event provided insight into industry’s future
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by Brent Hoskins Office Technology Magazine
As office technology companies continue to finalize their business strategies for 2013, dealers may be tempted to revisit their current policies regarding vendor-neutral IT-related certifications. Last year, CompTIA began implementing major changes and routine updates to its certifications.
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MPS Road Map A journey to higher revenues & profits
by Mike Lamothe Office Document Consulting Inc.
In my last article, I mentioned that attempting managed print services (MPS) is not for the faint of heart. One of the biggest reasons MPS programs fail is due to the fact that dealers give up long before the appropriate changes are in place and they never realize the increase in revenue and profitability.
Technology United hosted the 2013 Executive Connection Summit Jan. 21-24 at the Hotel Valley Ho in Scottsdale, Ariz. The summit provided attendees the opportunity to take part in discussions and share ideas about technology and business models for the new year.
D E PA R T M E N T S Business Technology Association
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• BTA Highlights
6
Executive Director’s Page
8
BTA President’s Message
30
Advertiser Index
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EXECUTIVE DIRECTOR’S PAGE
Applications for BTA Scholarships Due 5/1
“T
hank you so much for your generous BTA scholarship award. It will be put to great use while I’m at Le Moyne.” “I would like to take this time to thank you for selecting me as a recipient for this scholarship. It will help immensely.” “Thank you for the generous scholarship. It will really be helpful at the University of North Dakota where I am pursuing a degree in education.” These words are from some of the thankyou notes I received last year from deserving students awarded either $1,000 or $1,500 BTA scholarships for the current 2012-13 school year. Actually, these notes should go to BTA’s members, who have collectively made many contributions to the BTA Scholarship Foundation over the years. I must say, signing scholarship checks each year on behalf of BTA’s members is a gratifying part of my job as BTA Executive Director. Looking back, it is amazing to see the outcome of the generosity of BTA’s members. Our records reveal that since the 198485 school year, BTA has awarded $1,472,000 in scholarships to 1,306 students, which does include some who won BTA scholarships for multiple school years. For the current school year, BTA awarded $22,500 in scholarships to 20 students. While the records before the 1984-85 school year — coinciding with BTA’s move from Chicago to Kansas City, Mo. — are lost to us, I can tell you that the Scholarship Foundation was established in 1968 when the announcement of its creation was made at the Dorothy R. Ames retirement dinner. The BTA East district initiated the foundation (now managed by the BTA national office) to honor Ames for her contributions to
the office technology industry. On the BTA website (www.bta.org; click on the Scholarship Foundation tab on the left side of the home page), you can see a photo of Ames on the front cover of the Jan. 15, 1968, NOMDA Hotline newsletter along with the announcement of her Feb. 23 retirement dinner. (There is no mention of the Scholarship Foundation. I suspect that was planned as a surprise for her.) While on that page, I encourage you to look at the photos we have received of BTA scholarship check presentations during the past five school years. You will also find a flyer that you can download and share with your employees or post in your break room. Who is eligible to apply? The children of full-time employees of current dues-paying retail dealership members. The students must maintain a class schedule of at least 12 hours of accredited college courses at a two- or four-year college, university or technical/trade school. BTA scholarships may be used for tuition, books, school supplies and lab fees. An independent, impartial evaluator reviews the submitted applications and selects the winners. Students completing applications must submit information in four areas: school activities; leadership positions; work experience, recognition and awards; and community involvement. The application process also requires a transcript and a two-page essay. Applications for the 201314 school year are due to BTA no later than May 1, 2013. You can obtain an application from Mary Hopkins at mary@bta.org or (816) 941-3100. By the way, BTA welcomes your tax-deductible contributions to the Scholarship Foundation. Mail your check to: Business Technology Association, 12411 Wornall Road, Kansas City, Mo., 64145. — 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 Christopher Bennett, Success Assured Seminars www.winfreechicago.com Robert C. Goldberg, General Counsel Business Technology Association Troy Harrison, SalesForce Solutions www.salesforcesolutions.net Mike Lamothe, Office Document Consulting Inc. www.officedocumentconsulting.com
Business Technology Association 12411 Wornall Road Kansas City, MO 64145 (816) 941-3100 www.bta.org Member Services: (800) 505-2821 BTA Legal Hotline: (800) 869-6688 Valerie Briseno Membership Marketing Manager valerie@bta.org Mary Hopkins Database Administrator mary@bta.org Teresa Leerar Bookkeeper teresa@bta.org Brian Smith Membership Sales Representative brian@bta.org Photo Credits: Hemera, iStockphoto. Cover created by Bruce Quade, Brand X Studio. ©2013 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.
6 | w w w. o f f i c e t e c h n o l o gymag.com | March 2013
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BTA PRESIDENT’S MESSAGE 2012-2013 Board of Directors
Plan Now to Attend BTA Events & ITEX
O
n Feb. 8-9, the first of five of BTA’s 2013 district events took place at the Rosen Centre Hotel in Orlando, Fla. Hosted by BTA Southeast, Winter Break featured six educational sessions, a round-table discussion focused on “alternative revenues” and the opportunity for attendees to visit with 31 exhibiting sponsors. Winter Break drew a total attendance of 121 dealers and vendors. The event evaluations completed by dealers onsite were very favorable. The evaluation form asked: What did you like best about the event? Among the responses: “Overall, the best group of speakers at any BTA event I have attended — A+,” “Vendors, open-forum round table,” “Discussions and presenters,” “Networking with other dealers,” “Talking about the future,” and “Speaking with other dealers.” These responses reveal that the three primary goals of the event (and all BTA district events) were accomplished: To give attendees the opportunity to network with fellow dealers, learn from experts and gather new ideas and strategies. I am confident that no one left the Winter Break event without new ideas and strategies to implement in their businesses to better ensure ongoing success. I congratulate BTA Southeast President Linda Hayes, President-Elect Gerry Purvis and Secretary/Treasurer Bill James, along with their fellow district volunteers, for a job well done. Unlike other office technology industry conferences, BTA’s events are developed and hosted by member dealer volunteers. So, the speakers and topics are selected by a team of your fellow dealers. We believe this guarantees that the association’s events are perfectly targeted to the
learning opportunities dealers are seeking. As noted, Winter Break was the first of five events in 2013. Mark your calendars for the next district event, Cruise to Success, hosted by BTA Mid-America and scheduled for June 17-18, at the DoubleTree Chicago Magnificent Mile, located near Navy Pier in downtown Chicago. The district’s dealer volunteer leadership team is finalizing details to be announced soon. I know you will be very interested in hearing from the speakers they have invited to this event. The Cruise to Success event will end with — you guessed it — a dinner cruise aboard the Spirit of Chicago, where attendees will enjoy amazing views of the Chicago skyline as dusk gives way to the city lights. As you are marking your calendars, remember these BTA district event dates as well: Capture the Magic, hosted by BTA West, Aug. 1-2, at the Mandarin Oriental in Las Vegas; Grand Slam, hosted by BTA East, Sept. 26-27, at the Hyatt Regency Baltimore on the Inner Harbor in Baltimore, Md.; and the Fall Colors Retreat, hosted by BTA Southeast, Oct. 25-26, at the Waynesville Inn Golf Resort & Spa in Waynesville, N.C. Next up, BTA — along with member companies Digital Gateway (a subsidiary of ECi Software Solutions), GreatAmerica Financial Services and Katun Corp. — would like to thank you for your membership in BTA and support of the association. Are you attending the ITEX Show on April 17-18 in Las Vegas? If so, plan to drop by BTA’s booth (#236) on the trade show floor on the opening day for your invitation to attend that evening’s “BTA Member Appreciation Reception,” to be held from 6 to 8 p.m. at the VooDoo Rooftop Nightclub, atop the Rio Las Vegas Hotel and Casino. See the ad on the back cover of this issue. I hope to see you in Las Vegas! — Terry Chapman
President Terry Chapman Business Electronics Corp. 219 Oxmoor Circle, P.O. Box 531066 Birmingham, AL 35253 tchapman@businesselectronics.com President-Elect Todd J. Fitzsimons Network Imaging LLC 122 Spring St., Ste. B3 Southington, CT 06489 tjfitzsimons@ni-ct.com Vice President Ron Hulett U.S. Business Systems Inc. 3221 Southview Drive Elkhart, IN 46514 ron.hulett@usbus.com BTA East Rob Richardson Allied Document Solutions & Services Inc. 200 Church St. Swedesboro, NJ 08085 robr@ads-s.com BTA Mid-America Dave Quint Advanced Systems Inc. 2945 Airport Blvd., P.O. Box 57 Waterloo, IA 50704 dquint@asiowa.com BTA Southeast Debra Dennis CopyPro Inc. 3103 Landmark St. Greenville, NC 27834 ddennis@copypro.net BTA West Mike Ehlers Yost Business Systems 685 E. Anderson Idaho Falls, ID 83401 mike@yostonline.com Ex-Officio/Immediate Past President Tom Ouellette Budget Document Technology 251 Goddard Road, P.O. Box 2322 Lewiston, ME 04240 touellette@bdtme.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
8 | w w w. o f f i c e t e c h n o l o gymag.com | March 2013
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The Right Mix A3 on solid ground, but A4 making strides by: Brent Hoskins, Office Technology Magazine
T
o an outsider, the difference between products labeled A3 and A4 must seem relatively insignificant. The same might be said about the difference between a letter or legal-sized sheet of paper and a ledger-sized sheet. In the office technology dealer’s world, however, the differences are far from insignificant. In fact, some may say they are like night and day. For the dealer, the differences are often measured in dollars. That is, A3 MFPs, offering ledger or 11-by-17-inch page output, have been the lucrative core of the traditional copier dealer’s product line for years. In contrast, the A4 MFP, absent 11-by-17 paper capacity, is making strides, but not because it is being embraced en masse by dealers as a great source of revenue. “There are some limiting factors within the dealer community,” says Keith Kmetz, vice president of Hardcopy Peripherals Solutions and Services at market research firm IDC. He shares the typical lament within the dealer community: “‘I am trying to make money selling machines and I can’t make a whole lot of money selling A4.’” Of course, A4 is nothing new. Single-function A4 printers have been a standard output device in the workplace for many years. Meanwhile, A4 MFPs are far from being a new entry into the market, even among traditional copier manufacturers. “The concept of A4 has been around forever,” says Kevin Kern, senior vice president of marketing at Konica Minolta Business Solutions U.S.A. Inc., itself a producer of a growing line of both monochrome and color A4 printers and MFPs. “It’s a paper size, not a new product.” Although they may not be new to the market, A4 MFPs claim the lion’s share of all U.S. MFP unit placements. In 2012, reports Kmetz, 73 percent of monochrome MFP placements were A4, while among color MFPs, A4 units claimed 53 percent of placements. IDC forecasts that by 2016, monochrome A4 models will increase to 78 percent of monochrome MFP placements and color A4 models will claim 60
percent of color MFP placements. While these IDC placement and forecast numbers may be surprising or, for some, alarming, keep this fact in mind: They reflect placements through all distribution channels, including retail mass merchandisers. When one looks at just A4 MFP placements through the dealer channel, the numbers are undoubtedly much less significant. “Even with all of the great progress that A4 sales have made over the last five or six years, it is still a secondary strategy for dealers,” says Phil Boatman, manager of Dealer Program Development at Lexmark International, estimating that A4 currently represents less than 10 percent of most dealerships’ MFP placements. “Lexmark’s aim is to change that for our dealers with our ‘smart’ A4 MFP platform, offering workflow solutions that drive adjacent revenue streams with productivity-enhancing software and professional services.” Actually, while it is understandable why A4-centric Lexmark is working to boost A4 MFP placements through its dealers, there are other outside factors that are contributing to the rise of the A4 MFP in the workplace. One of them, says Boatman, is financial: “End users are used to a traditional A3 platform, but with condensed budgets, obviously they are looking for ways to spend less.” Another, says Kern, is the growing awareness of the value of an A4 MFP as compared to a single-function printer: “A lot of A4 MFPs are picking up page volume more from A4 printers than from A3 MFPs.” Carl Taylor, director of North America Marketing at OKI Data Americas Inc., echoes Kern’s comment: “I don’t see a tremendous migration from A3 down to A4. There is a certain element of that, but I think it is probably more the single-function masses moving upstream.” To at least some degree, end users are becoming more savvy about the existence of A4 MFPs as an option. “When you are talking to medium-sized business customers, they know about the products,” Taylor says. “Most of the companies that we interface with have their own teams to evaluate all of this
10 | w w w. o f f i c e t e c h n o l o gymag.com | March 2013
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hardware. They are very well every dealership’s product educated, due to the inforlineup. “The dealers who are “In some cases, the mation readily available onbuilding their businesses customer may buy on line. They are armed more are using A4 as part of their paper size, but that is not now than ever with details overall portfolio strategy,” the total picture. You have on TCO, CPP and functionhe says. “They realize, ‘I ality of the products, as well may not be making a lot of got to understand what as cost of entry.” money on A4s, but I’m going the customer situation is Taylor says end users are to make a reasonable profit and recommend what will easily able to see why an in this account [where A4 meet their needs.” A4 MFP might be the best MFPs may be among the — Kevin Kern choice for them. “Naturally, appropriate product placeI would think some of that is ments] because of A3 and Konica Minolta Business Solutions U.S.A. Inc. being driven by the manuservices. A4 is part of the facturers,” he says. “But, in many cases, they understand the whole deal; it’s just another device that prints.” differences between why you would need an A4 versus an Even among savvy customers focused on the appeal of A3. And, most of the time, they don’t need A3.” the lower-cost A4, there remains the need for dealers to proBefore addressing why more dealers may want to stra- vide the full range of products, Kmetz says. “The customer tegically include A4 MFPs in their product portfolios, it is may find that a ratio of 60/40 for A4/A3 is the right mix,” he important not to be dismissive of the A3 MFP. “A3 MFPs still says. “They may say, ‘Let’s replace a good number of these have very low CPCs for the customer,” Taylor says. “If the expensive A3 devices, but we still need some of this equipcustomer decides that print volumes will justify the size and ment for more robust finishing or the occasional spreadexpense of the device being deployed, the A3 MFP is going to sheet that needs to be printed on 11-by-17 paper.’” provide the best CPCs available. It is difficult to suggest that Kmetz suggests that dealers may find A4 as a good way to there is any data point that would refute the viability of A3 win new accounts, particularly as part of a managed print MFPs going forward.” services (MPS) strategy. “You can start telling a different Kern points to other key benefits of the A3 MFP. “The story than the incumbent, whether that is a direct branch larger platform provides much better finishing capabili- or a competitive dealer,” he says, suggesting a possible talk ties, document throughput, scanning capabilities, etc.,” he track: “‘It looks like 95-plus percent of your output is on says. “In some cases, the customer may buy on paper size, letter-sized media and you are over-capacity with A3 devicbut that is not the total picture. You have got to understand es. With our MPS program, we would displace a lot of that what the customer situation is and recommend what will equipment, though keeping some of the legacy A3 MFPs. We meet their needs.” can make it much more cost effective with A4. You will have Certainly, the demand for 11-by-17-inch output is low. all of the printing and copying capabilities that you need, “Historically, 11-by-17 usage has been right around 2 percent but your costs will go down considerably.’” Kmetz adds: “If of all paper sales worldwide,” Boatman explains. “We have you can get this conversation going with the right person, he not seen that number change all that much in the last few is going to be very interested in what you have to say.” years as a percentage. Paper utilization has declined, but 11The scenario could work in reverse as well, Kmetz adds. by-17 continues to be around 2 percent of the consumption.” That is, any dealership absent a solid A4 strategy may risk Despite the low usage of 11-by-17 paper, the focus should losing clients to competitors. “If you are the incumbent, then be more on customer needs rather than the paper size output you need to try and protect what you have,” he says, noting availability on the MFP, Kern says, pointing to the philosophy that the greater the competitive threat, the more aggreswithin Konica Minolta. “We are solving business problems,” sive the incumbent may need to be with an A4 placement he says. “We want everybody to be an expert on the custom- strategy. Kmetz suggests dealers contemplate their reaction er, rather than focusing on the product, whether it is our di- to a customer’s IT or operations manager saying: “‘I’ve got rect or dealer channel. We think that is where the value-add this direct rep coming in here talking about managed print comes from — becoming a problem solver, rather than, for services and less expensive equipment. I’m going to go that example, ‘Hey, we have one of those for two cents cheaper direction, unless you can offer us something similar.’” with the same capabilities.’” Whether seeking new business or protecting your base, With a focus on customer needs, rather than simply on A4 MFPs need to be a part of your product portfolio if they the product, Kern advises that A4 MFPs should be a part of are not already, Kmetz says. “A4 does play a role in being able 12 | w w w. o f f i c e t e c h n o l ogymag.com | March 2013
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adds. “For their sales teams, to maintain and grow your it is a lot easier to call on a business going forward,” “ ... BTA dealers are getting customer and stay with the he says. “I think we are all involved in MPS and trying existing platform than to challenged to see A4 as a to change their traditional change the customer’s busibig margin driver. But, the ... model to accommodate ness process and migrate margins in the future may the requests they are getting to something else,” he says, not be so equipment-based. noting that, in some cases, I think that part of the mesfrom customers. Dealers are there may be many A4 desaging is the equipment is going to have to have an vices already in place at the just a box — a means to an answer for A4, whether they like it or not.” customer location (secured end. The differentiation you — Carl Taylor elsewhere) that the dealercan provide is in the relaOKI Data Americas Inc. ship is not pursuing. “From tionship that you have with a total IT spend within a your customer and how you customer, it behooves a dealer to try and exare addressing their document pain points.” Taylor agrees. “A lot of BTA dealers are getting involved pand his (or her) footprint and try to go deepin MPS and trying to change their traditional A3 MFP lease er and wider into the account.” n Brent Hoskins, executive director of the model to accommodate the requests they are getting from Business Technology Association, is editor customers,” he says. “Dealers are going to have to have an of Office Technology magazine. answer for A4, whether they like it or not.” He can be reached at brent@bta.org. Many dealers have been slow to embrace A4 MFPs, Taylor
14 | w w w. o f f i c e t e c h n o l ogymag.com | March 2013
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Winter Break BTA Southeast hosts district event in Orlando, Fla. by: Brent Hoskins, Office Technology Magazine
H
osted by BTA Southeast, the district’s annual Winter Break educational and networking event took place Feb. 8-9 at the Rosen Centre Hotel in Orlando, Fla. It was the first of five 2013 BTA district events specifically designed for office technology dealers. Winter Break featured six educational sessions: “Services-Led, Technology-Enabled: The Road Ahead” with keynote speaker Martin Brodigan, Ricoh Americas Corp.; “Why is Service Quality So Difficult to Manage?,” with John Hamilton, Service Strategies Corp.; “MPS Operational Excellence — The Key to MPS Profitability,” with Doug Johnson, Supplies Network; “Adapting Leadership to Capitalize with Managed Services,” with Milton Bartley, ImageQuest; “You Be the Judge: How Would You Resolve These Challenging Human Resources Issues?,” with Sally Brause, GreatAmerica Financial Services; and “Parlaying MPS & Mobility,” with Greg Walters and Jennifer Shutwell, Walters & Shutwell. A round-table discussion, “Alternative Revenues,” led by members of the BTA Southeast leadership team, was also included in the event’s educational lineup. The roundtable gave attendees the opportunity to ask questions, share ideas and receive feedback from their peers. The event also featured the products and services of 31 exhibiting sponsors: Balboa Capital, Crawford Thomas, Densi, DocuLex, DocuWare, ECi-FMAudit, EDA, ESHA, ESP, Evolved Office, Falcon Technology Solutions, Frontier Imaging, Global Printer Services, GreatAmerica, Hytec, Image Star, InkCycle, Innovolt, Katun, LEAF, LMI Solutions, Memjet, Muratec, N-able, NA Trading and Technology, OKI, Print Audit, Printer Essentials, Smart Power Systems, Square 9 and Supplies Network. Winter Break wrapped up with dinner and entertainment at Sleuths Mystery Dinner Shows, where attendees participated in an interactive murder mystery. The next BTA district event, to be hosted by BTA MidAmerica, will take place June 17-18, 2013, in Chicago. For more information, visit www.bta.org/DistrictEvents. Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine.
Photos by Britt Runion Photography
Clockwise from top: Attendees listen to the keynote address by Martin Brodigan, chairman and CEO of Ricoh Americas Corp., the first of the event’s six educational sessions; presenter Milton Bartley; attendees Bill Woodard (left) and Anthony LoGiudice of Sharp Electronics of Canada Ltd.; presenter Sally Brause; Attendees network and visit exhibitor tables during a break between sessions.
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The Road Ahead C
Clockwise from top left: presenter Jennifer Shutwell; Brodigan; presenter John Hamilton; attendees gather in two groups for round-table discussions focused on “alternative revenues”; presenter Greg Walters; Dealer attendee Mike Upchurch (left) of CEI The Digital Office, visits with Shawn Mieman of GreatAmerica Financial Services.
Clockwise from above left: Attendees participated in a poker game that required them to create the best hand from cards received by visiting sponsor tables. These attendees tied for the best hand and drew cards to determine the winner (Ray Derstine, Altek Business Systems) of a $500 American Express gift card; Jerry Harne (right) of Balboa Capital visits with Art Post of Print4Pay Hotel; presenter Doug Johnson.
hallenging attendees to take a close look at their go-tomarket strategies, Martin Brodigan, chairman and CEO of Ricoh Americas Corp., advised dealers to lead with services, just as Ricoh itself is striving to do in today’s changing marketplace. He shared his recommendations in “Services-Led, TechnologyEnabled: The Road Ahead,” the Winter Break keynote session. Dealers are facing the “perfect storm” of changes in technology, people and business processes, Brodigan said. As an example, he cited the rise of tablet PCs, with 122.3 million unit placements in 2012, projected to increase to 282.7 million by 2016. Increasingly, he said, tablets are finding their way into the workplace. “How many of you are starting to allow people to bring their own tablets to work?” he asked attendees, pointing to the growing BYOD preference among workers. “This is an unprecedented change in terms of speed of adoption.” Meanwhile, the workplace is being impacted by a shift in work styles, with “three different generations in the workforce that consume information differently.” Baby Boomers, he said, “were brought up on paper; they know how to use paper.” In contrast, he said, Gen X workers “go from digital to paper, digital to paper,” and Gen Y workers are “all paperless. They are totally comfortable in the digital medium. They don’t need any form of paper.” While the office technology industry has historically focused on the printing, copying and scanning of paper, “when you get these three generations in the workforce, then we start having different opportunities to use a lot of technologies,” Brodigan said. “If we just say, ‘Do you want to buy an MFP? Do you want to buy a printer?’ we’re going to have a problem, because this is not what our customers want.” Instead, Brodigan said, today’s customers — with many types of information technology now in use and employees with different work styles — are seeking companies that can answer a simple question: “How can you help me with my problem?” He described the changing requirements of customers as a “good platform for change” for both manufacturers and dealers, changing their focus to lead with services in order to address customer pain points. The industry has faced major times of change before, such as the transition from analog to digital and from monochrome to color, Brodigan said. “To me, this information revolution is exactly the same,” he said. “It is another significant shift in the way our customers do business. So, we have the opportunity to change; it is a great opportunity.” In order to ensure they are equipped to best address changing customer requirements, Brodigan advised that dealers should consider whether they currently have the right knowledge base and resources in-house, or need to secure the expertise by partnering, hiring or acquiring. He also said dealerships must possess a thorough understanding of the needs of customers’ specific vertical markets. “Really understand your current and potential customers,” he said. “What business problems are they facing? How well do you understand their problems?” Finally, Brodigan said, as the go-to-market strategies of Ricoh and dealers change, the end result remains the same. “The point is to be services-led, but technology-enabled,” he said. “At the end of the day, we want to deploy a core technology to print, copy, fax and scan. We want the device. But, we need to be services-led to do that. Because, otherwise, we are just competing on price. We are not adding value.” n —Brent Hoskins www.officetechnologymag. c o m | M a r c h 2 0 1 3 | 17
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CompTIA Certification Primer Updates, performance-based testing announced by: Christopher Bennett, Success Assured Seminars
A
s office technology companies continue to finalize their business strategies for 2013, dealers may be tempted to revisit their current policies that require service or sales personnel to acquire vendor-neutral ITrelated certifications. Last year, the Computing Technology Industry Association (CompTIA) began implementing major changes and routine updates to its certifications. This article offers an overview of the CompTIA certifications most utilized by Office Technology readers. CompTIA currently offers more than 15 different IT, security, computing and project management certifications. Additionally, it is in the process of creating a new certification for professionals in wireless networking and mobile architecture to be called “Mobility+.” It will be launched later this year. “CompTIA is a well-respected organization for the industries that it serves,” says Tom Claxton, campus president of Computer Systems Institute’s (CSI) Elgin, Ill., campus. Computer Systems Institute trains IT and electronics technicians and assists its graduates in securing IT, managed network services and PC support positions. CSI teaches both A+ and Network+ certification programs, and it administers CompTIA and other certification exams for its students and graduates. “They (CompTIA) have proven, over the course of time, that their exams are comprehensive and relevant to the current state of the industry,” Claxton says. “CompTIA certifications are a key component of our education at Computer Systems Institute because they are required for the industries that employ our graduates.” Managed network services companies that have chosen the CompTIA route as part of their business strategies have primarily focused on four certifications: CompTIA A+, CompTIA CDIA+, CompTIA Network+ and CompTIA PDI+. According to CompTIA, A+ and PDI+ are entry-level certifications, while Network+ and CDIA+ are for more experienced industry professionals. Here is the latest on those certifications.
A+ According to the website www.comptia.org, the CompTIA A+ certification exam (up to 90 performance-based test questions) is the starting point for a career in IT. The exam covers maintenance of PCs, mobile devices, laptops, operating systems and printers. There are more than 900,000 A+certified individuals to date. In order to earn the designation, a technician must pass two separate exams. The first exam covers computer fundamentals, configuration and installation of PC-related hardware and basic networking. The second tests for skills related to installing and configuring PC operating systems and their common features, along with knowledge of mobile operating systems like Android and Apple iOS. The current exam versions are 220-801 and 220-802 and require scores of at least 675 and 700 (out of a total of 900), respectively. Each exam is limited to 90 minutes. Here is where it gets a little confusing. Through the end of August of this year, technicians can also take the previous exams, versions 220-701 and 220-702. Individuals can take either exam series; it is up to the candidate. One major difference between the two versions of the exam is that the current exam includes “performance-based” test items,
18 | w w w. o f f i c e t e c h n o l o gymag.com | March 2013
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which I will discuss in greater detail later in this article.
Performance-Based Exam Items One major change to CompTIA’s certifications was the implementation of “performance-based” test items in the fall of 2012 for the A+ and Network+ exams. Performance-based questions are expected to become part of another certification, CompTIA Security+, this quarter. What is performance-based testing? It consists of scenario-based questions using a simulator to provide a real-world environment. With multiple-choice test questions, the candidate is provided a question, and he (or she) chooses the correct answer(s) from the list of choices that are provided. While a multiple-choice test item can establish a scenario and require a candidate to select one or more correct or best answers, a performance-based question requires the candidate to prove he can actually perform in a simulated IT work environment. Currently, Canon, IBM, Dell, Hewlett-Packard, Intel, Kyocera, Ricoh, Sharp and Xerox all require either CompTIA A+ or Network+ for their network technicians. Many independent dealers have adopted vendor-neutral certification as a foundation to their employee development strategies. Passing a certification exam only proves that an employee has met a minimum standard, or possesses a specific set of knowledge, skills and competence. Should your organization pursue a business strategy that includes certification, it is best paired with marketing and communications strategies to match. BTA provides its members discounted CompTIA PDI+ and CDIA+ exam vouchers. Visit www.bta.org/Education and click the links under “Certification Study/Vouchers.” n Christopher D. Bennett, CDIA+, is a field technology and sales educator in the imaging industry. He has supported the BTA community since 1990 in sales, dealership operations consulting and sales training. Bennett has worked for CalType Office Systems, OMD Corp. and Canon U.S.A. Inc., where he executed Canon U.S.A.’s professional sales certification initiative for CompTIA CDIA+ certification. Today, he provides sales training, strategy, accountability and business advice to office imaging and other sales organizations. Bennett is president and chief sales advisor of Success Assured Seminars, the Chicago partner agency of Winfree Business Growth Advisors – Results Guaranteed®. He can be reached at (312) 283-0110 ext. 7 or mrresults@winfreechicago.com. Visit www.winfreechicago.com.
... A performancebased question requires the candidate to prove he can actually perform in a simulated IT work environment.
PDI+ Some readers may be less familiar with the next certification, Printing and Document Imaging, or PDI+. The PDI+ certification exam tests a field service or a network support technician’s knowledge of essential electromechanical tools along with print engine basics, scan processes, connectivity, networking and color theory. Additionally, it tests for some soft skills, including customer service, environment, professionalism and safety. According to CompTIA, this certification is recognized as a benchmark by Canon, Sharp and Xerox. In order to pass the PDI+ exam, a candidate must achieve a score of at least 675 (out of 900). The exam consists of 85 questions to be answered in 90 minutes. Network+ While A+ and PDI+ are considered entry-level exams, CompTIA recommends that a Network+ candidate have at least nine months of networking experience and have successfully completed the A+ process. The Network+ certification exam tests a technician or administrator’s knowledge of network topologies, network management and security, in addition to network installation and configuration, and the seven-layer Open System Interconnection (OSI) model. The current Network+ exam version is N10-005. It consists of 100 questions to be answered in 90 minutes with a score of at least 720 (out of 900). CDIA+ The Certified Document Imaging Architect exam, or CDIA+, is slated for a major update this year. In fact, the beta version just closed on Jan. 17. The CDIA+ certification exam measures a candidate’s ability to plan, design and specify a document imaging management system. It measures the skills and knowledge that an individual who has 12 to 18 months of on-the-job experience in the document imaging industry should have. Most office technology and document imaging industry manufacturers recognize the CDIA+ credential. According to CompTIA’s certification website: “Technology companies in the document imaging industry, including Canon, Ricoh, Konica and Kyocera, recognize CompTIA CDIA+ certification as a consistent, objective way to evaluate imaging industry professionals.” The CDIA+ exam (version 225-030) consists of 85 questions and requires a score of at least 700 (out of 900). 20 | w w w. o f f i c e t e c h n o l o gymag.com | March 2013
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MWAi ad Mar 13.indd 1
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MPS Road Map A journey to higher revenues & profits by: Mike Lamothe, Office Document Consulting Inc.
I
n my last article (“‘Me Too’ MPS,” February 2012), I mentioned that attempting managed print services (MPS) is not for the faint of heart. Well, imagine finding out that Xerox has loaded its data collection agent on your best customer’s network and you are about to lose 2 million impressions a month. I actually received that call from a dealership principal who was looking for help implementing his own MPS program. Here is what he did to change his business. First and foremost, he is now committed long term to making the necessary changes to transition his business. If you are not aware, one of the biggest reasons MPS programs fail is due to the fact that dealers give up long before the appropriate changes are in place and they never realize the increase in revenue and profitability. Be prepared to allow up to 24 months for all functions and departments to work effectively and provide consistent returns. We began with a dealer assessment, which reviews all departments and helps identify what will need to change. For instance, what kind of enterprise resource planning (ERP) system are you using? Have you automated the meter billing processes into your ERP system? Are you tracking average parts cost per device? Do you measure technician calls per day, average parts usage per call and average consumable costs per device? All of these questions need to be answered and understood as a dealer begins adding a new line of single-function devices for sale. I have seen instances where dealers began selling printers successfully on a costper-copy basis (which includes service, toner and hardware) without understanding the real costs and grew their businesses, but lost money. The dealer assessment looks at operations, accounts payable, receivables, service, parts, logistics and sales. Not unlike performing a print assessment (which will be covered in my next article), it is very important to establish a baseline
in all of these departments. You will then be in a better position to make the necessary changes to begin offering and supporting an MPS business. The diagram on this page will help identify what I believe to be a sound foundation to improve the odds of success. This road map helps to identify how each of the functions or departments interact with each other as they relate to MPS. As you begin managing more customer information and are required to ship toner requested by the device, collect meters integrating directly into your ERP system and receive service alerts, the relationships and/or interactions between departments need to change. The internal MPS champion is one of the most important resources to have as you begin your program. He (or she) oversees the entire internal process and acts as the quarterback for continued communication between all departments. He will also ensure all remote management system (RMS) installs are completed, assessments are initiated and completed, and provide a host of other duties that are all focused on the program’s success. Without an MPS champion, too many issues fall between the cracks and your program will have unnecessary challenges. In the diagram above, the group labeled “data” has an important relationship as it relates to sharing data. In one of my
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the input of information, reducing the past articles, I spoke about the connectivneed to individually populate your ity between your RMS and ERP system. Salespeople can no RMS, CRM and assessment tools. Yes, This connectivity automates your meter longer say “yes” to you heard me right: Many CRM compabilling, eliminating the need for admin to everything the customer nies are ready to help customize their manually enter meters into your ERP sysasks for; remember, products to ensure higher adoption tem. This change can provide a savings you are taking over rates. This sharing of customer inforof $1,500 to $2,500 per month. This is just mation between applications will be one example; there are many more. the customer’s print far more appealing to your sales team. As for a customer relationship manenvironment. Referring back to the diagram, the agement (CRM) tool, I highly recommend group labeled “process” will redefine putting one into practice. The more complex business gets, the need to retain all of your customer the relationship between these functions as they relate to information will become more critical. The other reality is MPS. These four departments need to be on the same page that, when sales reps leave (something I have experienced), with a higher level of communication so that the customer is we spend too much time trying to determine where all of the not left behind. Proactive service (customer reporting, concustomer information is — not to mention a new rep coming solidated billing and attempting to manage devices that are into the territory has to start from the beginning, adding six not reporting via RMS) is a new concept and I could go on, months to a year to his startup. A CRM tool will also allow but I think you get the point. Lastly, I could not leave this section without making a management to understand and manage sales reps’ activities, ensuring complex assessments are completed correctly. quick comment about sales. Salespeople can no longer say I encourage you to find a CRM tool that has simplified “yes” to everything the customer asks for; remember, you are taking over the customer’s print environment. I highly recommend that your MPS champion have sales and service sign off on all potential business. That way reps are very clear about what will be delivered to the customer and added embellishment is avoided. The dealer I spoke of at the beginning of this article adopted this road map, identified his MPS champion and has found lasting benefits to his business as a whole. He now has better communication between all departments, including the sales team. In fact, some of his more complex MPS sales calls have been coordinated so that his MPS champion, service manager and salespeople are all present for the appointments. His MPS practice is thriving and it has become his lead position with every customer, including SMBs. In our last review, I was able to report that his competitive meter clicks, unmanaged in his base accounts, have declined from 44 percent to 29 percent. For the record, the dealer did lose that customer and its 2 million impressions per month, but he has more than made up for that initial loss by adding more than 8.9 million impressions to his base through his MPS business. Look for my next article in the April issue of Office Technology. I will have an in-depth discussion about assessments and the MPS champion. Mike Lamothe is president of Office Document Consulting Inc. (ODC). ODC specializes in MPS strategies, developing software tools and implementing MPS programs at dealerships across North America. He can be reached at ml@officedocumentconsulting.com. Visit www.officedocumentconsulting.com. 24 | w w w. o f f i c e t e c h n o l o gymag.com | March 2013
Lamothe Mar 13.indd 2
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COURTS & CAPITOLS
Patent Trolls Many are facing an unconscionable shakedown by: Robert C. Goldberg, General Counsel for the Business Technology Association
A
phone call or email comes into your office from one of your customers who is being advised by letter that his (or her) company is violating numerous patents by scanning a document, sending it over a network and emailing it to others (an operation my assistant and I perform numerous times every day). The letter is from Project Paperless, HeaPle LLC or any of a number of shell entities claiming rights under what are commonly known as the “Laurence Klein� patents. Upon receiving a copy of the first one of these letters shared with me, I obtained copies of the patents in question and reviewed them. Each runs more than 75 pages; they made absolutely no sense to me. I contacted an engineer and asked him to read them and help me understand the patents, but he was unable to do so as well. Ditto for a patent attorney friend I sought out for assistance. Challenging a patent in federal court is a time-consuming and expensive endeavor. By seeking licenses from small businesses, the alternative of paying $1,000 per employee who scans over a network and emails is far more attractive than expensive litigation. Even actions taken in the U.S. Patent Office to challenge these patents are extremely technical and expensive. I have been quoted $500,000 to $1 million. By seeking license fees from small businesses, these trolls are shaking down entities that do not understand the patents, do not have the time or ability to decipher the patents, and cannot afford a lawsuit to challenge their claims. It is noteworthy that claims are not being sent to the manufacturers of the equipment or the entities selling them. As one moves up the supply chain, the financial pockets grow larger and the likelihood of a challenge increases. Send out thousands of demand letters and even if only a small percentage pay off, it becomes a good business. (If you have received an email from Nigeria stating you could make millions by assisting a general who needs to move the funds, then you understand the concept.) Certain members of Congress have looked into these
practices and have introduced legislation that will require a party bringing an unsuccessful suit for a patent violation to pay the other party’s attorney fees and costs. Unfortunately, the office technology industry cannot wait for Congress, in light of its inability to accomplish much other than political bickering. Although lawsuits are seldom filed, in one case, a suit was filed and the result is enlightening. The suit was brought by Project Paperless LLC against BlueWave Computing. BlueWave fought back and countersued. Project Paperless dismissed its claim, with prejudice, and walked away. This led to the end of demands from Project Paperless and the rise of numerous other entities asserting claims under the Klein patents. As of the date of writing this column, I have yet to learn of a lawsuit against an end user in our industry. If you do become aware of one, please notify the Business Technology Association (BTA) or myself immediately. In the meantime, BTA cannot wait for a suit while thousands of end users face patent infringement claims and countless small businesses among them pay the fees demanded. On March 14, 2013, at the Marriott Hotel at Newark International Airport, BTA will hold an industry summit to address these issues and formulate an industry response to the legal claims being made. The meeting is open to all industry participants. If any of your customers receive demand letters, you can give them some options to consider. They can choose to ignore the letters or respond that they are not infringing on the patents. Or, they can respond that they have limited resources, but the resources will be better spent on lawyers than capitulating to the demands. Look to the BTA Hotline and Office Technology for further developments. n Robert C. Goldberg is general counsel for the Business Technology Association. He can be reached at robert.goldberg@sfnr.com. www.officetechnologymag. c o m | M a r c h 2 0 1 3 | 25
Goldberg Mar 13.indd 1
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BTA HIGHLIGHTS BTA would like to welcome the following new members to the association:
Dealer Members Advanced Mailing Systems, Asheville, NC Alternative Mailing & Shipping Systems, Arlington, TX Ball Business Products, Port St. Lucie, FL Document Technology Solutions, Bloomington, MN Kridan Business Equipment, Indianapolis, IN Standard Digital Imaging, Southampton, PA The Harrison Group, Paducah, KY The Office Technology Group, Milwaukee, WI Vendor Associate Members Print Audit, Calgary, Alberta, Canada Seine Tech (USA) Co., Walnut, CA For full contact information of these new members, 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 Memjet is a global leader in color printing technologies that provide remarkable speeds and affordability. The company maintains its corporate office in San Diego, Calif., and has offices in Dublin, Sydney, Taipei, Singapore and Boise, Idaho. Memjet first developed a new printing technology paradigm based on page-wide, singlepass printing (“waterfall” printing) that utilizes ink-based printheads, 1,600-dpi quality, one pico-liter drop sizes and a minimum of 54,400 ink nozzles per A4/letter-sized printhead. It then developed a system of components (printheads, controller chips, ink and software) all designed to work together as a printing system. www.memjet.com
BTA offers the WellCard Health Discount Card to its members. The discount card is an easy way to help you and your family with all your prescription drug needs and medical visits (this is not insurance). It automatically includes all family members, and you will instantly receive an average savings of up to 65 percent on drug prices and up to 30 percent on medical visits. Join a nationwide network of more than 59,000 pharmacies and 350,000 physicians. Discounts are only available at participating pharmacies. For more information, visit www.bta.org/BTAWellCard.
BTA Service Associate Member Continuum Managed Services provides a SaaS-based managed services platform that backs up, monitors, troubleshoots and maintains desktops, servers and other endpoints for small and medium-sized businesses. The platform provides an intelligent remote monitoring and management solution, a 24/7 service desk and an advanced backup and disaster recovery offering branded Continuum Vault — all integrated with a network operations center. www.continuum.net
For information on BTA member benefits, visit www.bta.org/MemberBenefits.
A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.
26 | w w w. o f f i c e t e c h n o l ogymag.com | March 2013
Highlights Mar 13.indd 1
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PRINCIPAL ISSUES
Times Are Changing Are you & your dealership adapting? by: Troy Harrison, SalesForce Solutions
R
ecently, I was in Orlando speaking at a trade show. At the conclusion of my presentation on prospecting, I opened the floor for questions and discussion. A man in the middle of the room raised his hand and said: “I think you missed a very important part of prospecting. You didn’t speak at all about making friends with the executive secretaries so they will allow you to talk to their bosses. Why didn’t you cover that?” I answered: “Because, honestly, I believe that it is an obsolete skill set. Few business owners, presidents and even fewer middle managers have dedicated assistants now.” The questioner looked at me for a moment, then smiled and said: “I just asked you a 1983 question and you gave me a 2013 answer.” I laughed and replied that, yes, that was true. This question — and a few others that I received — got me thinking about how much the science and mechanics of selling have changed over the past 10 to 15 years. What is worse, it got me thinking about how little sales training and sales knowledge have changed to adapt to it. If you do not adapt, you are going to be left behind. So let’s discuss some of these changes. Corporate Right-Sizing What many companies learned as things got lean in the 1990s and into the 2000s was that they had more people than they had actual work to do. This resulted in what many called “right-sizing” and what others called “downsizing.” I call it “reality.” Executive assistants were terminated in droves. Middle managers whose duties were often redundant or unnecessary were encouraged to find employment elsewhere. For many salespeople, these middle managers were their contacts and the executive assistants were their pathways to decision makers (hence the question from the beginning of this article). If those people are not there anymore, what do salespeople do? Some have found new ways to get to decision makers; others have simply failed as their skills have become obsolete. There is a second impact to this, as well. In the 1980s, Miller and Heiman became big forces in the sales training world with a system built around the “complex sale,” which happened when you had large numbers of middle managers and committees involved in major purchases. For most companies, those committees and middle managers have been cut drastically — and what is left is a streamlined purchasing process that is very time-sensitive, and requires salespeople to give and get high value from the time they are allotted.
The complex sale has been simplified and intensified; can you handle it? Customers Do Not Need Us This is something I have been talking about for a few years. Increasingly, virtually everything that anyone sells can also be purchased over the Internet. This means that salespeople now have to earn their place in the sales process rather than having it gifted to them. Again, this means that a salesperson has a duty to give and get high value during his (or her) interactions with customers. The day of the “donut call” is over. Good salespeople must now have an agenda and a win for the customer in every sales call or they will lose opportunities. Much of the time, it is more convenient for a customer to tap a few keys and get what he needs, so if a salesperson’s sales call does not benefit the customer, the salesperson will not be invited in. Straight Commission is Dying One of the most controversial claims that I make is this one. In Orlando, a business owner took me on, telling me that he has a very stable and successful sales force that does great without salaries. His people, he said, are motivated by the lure of uncapped earnings and, moreover, he feels that the best salespeople are motivated this way. During the session, we agreed that he was probably the exception to the rule. He told me that his sales force was mature www.officetechnologymag. c o m | M a r c h 2 0 1 3 | 27
Harrison Mar 13.indd 1
3/4/13 9:50 AM
you might not like it, but that is the reality. and long-tenured and I advised him that he Change can be difficult to deal with. And is likely to see a generational shift when he Here is a truth. sometimes changing means swallowing gets ready to hire again (I am seeing this The sales hiring some pride. But it is essential that, if you with every company I consult that does market has changed. are still going to have thriving salespeople straight commission). Post-session, he apYou cannot simply toss in 20 years — or even 10 years or two years proached me and admitted privately that out your shingle and — you change with the times. You can still he has, in fact, had to pay a salary to his live in the fantasy world of what sales used three most recent hires. So, why the battle expect to hire winners to be like — or you can adapt to reality. I during the session? My guess is that he is and pay them nothing. have discovered that reality buys more and still stuck on the idea that straight compays better than fantasy. What are you domission equals guts, which, in turn, equals ing to adapt? the best sellers. Troy Harrison is the author of “Sell Like You Mean It!” Here is a truth. The sales hiring market has changed. You and is president of SalesForce Solutions, a sales cannot simply toss out your shingle and expect to hire wintraining, consulting and recruiting firm. For ners and pay them nothing. Nowadays, the truth is that there information on booking speaking/training are fewer quality salespeople than there are jobs for them; this engagements, consulting or to sign up for his means that it is a competitive market. Salespeople who have weekly e-zine, call (913) 645-3603. options (i.e., are proven performers) are going to be fought for Harrison can also be reached at and one of your main weapons is an attractive salary plus a troyharrison@salesforcesolutions.net. commission package. This is simple psychology — one of our Visit www.salesforcesolutions.net. basic human needs is the need for security. You might like it or
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PRINCIPAL ISSUES
Executive Connection Summit Event provided insight into industry’s future by: Brent Hoskins, Office Technology Magazine
T
echnology United, a consortium of 10 technology vendors offering, among other initiatives, turnkey solutions for the workplace, hosted the 2013 Executive Connection Summit Jan. 21-24 at the Hotel Valley Ho in Scottsdale, Ariz. The summit, drawing office technology dealers, manufacturers, IT professionals, supply vendors Mike Stramaglio and managed services executives, provided attendees the opportunity to take part in discussions and share ideas about technology and business models for the new year. During the summit, various presenters explored a range of topics, collectively pointing to the “new normal” for dealers and how advances such as the development of managed services programs Rick Taylor will empower them to grow their businesses, increasing both profits and market share. The presenters and panel discussion participants included dealers, industry consultants and representatives of Technology United member companies. Technology United Chairman Mike Stramaglio, president and CEO of member company MWA Intelligence Inc., acknowledged that many dealers see the collective rise of mobile technology, focus on the cloud, onslaught of information and IT VAR encroachment via managed services into the dealer’s domain, as challenges. However, he emphasized, dealers are actually seeing a significant opportunity unfold before them. “I would suggest that the dealer community is facing the single greatest opportunity that I have seen in my career,” he said. “And that goes way back.” Stramaglio’s comments echoed the sentiments of Rick Taylor, president and COO of Konica Minolta Business Solutions U.S.A. Inc., who served as the Executive Connection Summit’s keynote speaker. “Independent office equipment dealers who are adopting the new opportunities are making historically high returns on sales,” he said. “I think the opportunities today are great. I see that in our business and I’ve seen it in the dealer’s business. If you take advantage of the opportunities that are available, there hasn’t been a better time to be in this
business. I’m excited about the people who are in the game.” Taylor noted how he expects the changes “in the coming five years to be greater than any time in my career.” He pointed to the rise of mobility, in particular. “This is the first year that we have passed the milestone of more connected devices to the Internet than people in the United States,” he said. “There are about 311 million people in the United States. There are 429 million connected devices. So, the question that begs to be answered is, ‘Who is going to take care of that?’ “Somebody has to manage the mobile worker in the future and there’s money to be made in those transactions,” Taylor continued, noting that unlike the industry’s now commoditized MFP business, the new opportunity holds the appeal of having “a little mystery,” and requiring a new level of innovation and knowledge of the customer. It is an opportunity, he said, “that will allow us to make more money, whether you are a dealer or an OEM.” The means for dealers and Konica Minolta to pursue the opportunity to manage mobile devices actually reaches much more deeply into the workplace, Taylor explained, citing the company’s strides in providing IT managed services directly, as well as through its authorized dealers. In January 2011, All Covered Inc., a provider of managed IT services for the SMB market, was acquired by Konica Minolta, which has since greatly expanded the subsidiary’s reach through subsequent acquisitions of IT services practices from various companies. Taylor walked attendees through the history of Konica Minolta’s areas of focus which, for many years, were solely MFP hardware sales, break/fix service and support and some lowlevel connectivity. Today, he said, the focus has been significantly expanded to include not only traditional managed IT services, but such services as security, compliance, vertical market proficiency, cloud services, enterprise content management, document management, professional services and workflow software integration. “We are not, by any means, abandoning our core business,” Taylor said. “It is great for us. Our machines in the field and our page volumes have grown this year; in a down market we have more units in the field at higher page volumes and our gross margin, on the direct side of the business, is up yearover-year — all because we are selling in a different manner. We are selling a different value to the customer.” Taylor noted that in 2008, Konica Minolta’s core business market share was 10.2 percent; it is now 16.8 percent. “The www.officetechnologymag. c o m | M a r c h 2 0 1 3 | 29
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they were extremely interactive with their machines haven’t gotten that much better; own insights, ideas and experiences, which it is what we are doing around the box,” he “Not only did attendees made the summit an exceptional forum for said. “It is how we are adding value to the have the opportunity to knowledge exchange. My sincere thanks to customer experience. The new businesses hear some great all who participated in this unique confer[areas of focus] are driving our business.” speakers, but more ence and for a great start to 2013.” Today, “we are in the middle of trying to importantly, they were The brainchild of Stramaglio, Technolchange our business completely, and I mean ogy United was established to provide: down to its DNA,” Taylor said, noting that extremely interactive with an environment of open collaboration beKonica Minolta has worked to transform their own insights ... ” tween members; integrated solution sets from “a hardware provider to a business when appropriate; industry educational process management approach.” He added: initiatives; and to lead others by example “We have changed our approach to the customer and have tied in customized software and solutions that into new markets, technologies and opportunities. The 10 speak to that customer’s problems. We know more about that member companies are: Barrister Global Services Network Inc., Electronic Systems Protection Inc., GreatAmerica Financustomer than perhaps they know about themselves.” Following the Executive Connection Summit, Stramaglio cial Services Corp., Green Hills Software, GreenPrint Techexpressed his gratitude to Taylor and the other presenters, and nologies Inc., Intel Corp.’s Intelligent Systems to the attendees themselves for their level of engagement in Group, Intellinetics, LMI Solutions Inc., MWA the open discourse that was maintained throughout the sum- Intelligence Inc. and Newfield IT. n Brent Hoskins, executive director of the mit. “Starting with Rick Taylor’s compelling keynote address Business Technology Association, is editor of that kicked off the summit, I knew we were on to something very special,” he said. “Not only did attendees have the opOffice Technology magazine. He can be reached at brent@bta.org. portunity to hear some great speakers, but more importantly,
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