September 2010 Office Technology by Business Technology Association

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BTASE ad Sept 10:Layout 1

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CONTENTS Volume 17 No. 3 G

FEATURE ARTICLES 10

Large Format Widening your dealership’s sales opportunities

COURTS & CAPITOLS Contractor Crackdown These individuals truly have to be independent

by Brent Hoskins Office Technology Magazine

by Robert C. Goldberg BTA General Counsel

Are your sales reps asking current customers and prospects this simple question: “Do you ever print anything larger than 11-by-17 inches?” If not, the overlooked question may mean your dealership is missing some lucrative sales opportunities. In today’s economy, you are undoubtedly seeking to widen your reach, landing additional hardware placements. Large-format (or wide-format) devices may be the answer.

A recent call from a BTA member contained a warning for all employers. Two years ago, the member, at his salespeople’s request, designated them all “independent contractors.” Faced with a difficult economy, the dealer complied with this request.

PRINCIPAL ISSUES 27

Easy Network Access Your MFPs can be used, modified & compromised

by Mike Arnold CPO Ltd.

Few have previously regarded the office copier/MFP as a threat to privacy and identity protection. But today, the potential threat to individual privacy courtesy of the copier/MFP is a challenge all dealers will have to face.

by Peter Cybuck Kyocera Mita America Inc.

Any device connected to the Internet can potentially be reached from any other point on the Internet. Many MFPs are set up to allow remote connections for maintenance and support, so if any addresses on their subnets are shared, they can be easily found and reached. International boundaries are not an issue. The manufacturer’s administrator password on most MFPs in the field has never been changed, leaving hundreds of thousands of MFPs open to direct connection to admin Web pages.

MPS STRATEGIES iPad Case Study: GFW School district controls costs with new technology

by David Ramos Strategy Development

The impact e-reader technology has already had and will continue to have on the consumer market is just beginning to be seen, but what are the potential inroads for other applications in business and education?

The Elite Sales Rep Drive key values to build stronger sales teams By Larry Coco Coco Training & Consulting Inc.

In today’s business world, it is imperative for dealer and direct organizations to keep sales turnover to a minimum and to grow sales tenure. This is not an easy task. While many struggle with this, there is a solution. In short, it requires a plan and effective execution. There is solid research that tells us that there are five key values of successful people. If the research is true, then we need to absolutely measure these values in our salespeople. There is no reason to reinvent the wheel. 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 | S e p t e m b e r 2 010

MFPs & Privacy Issues Dealers must reassure & educate their customers

DEPARTMENTS Business Technology Association

G BTA Highlights

Executive Director’s Page

BTA President’s Message

Advertiser Index

Docuware ad June 10:Layout 1

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Put More Green in Your Bottom Line

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How? Enter the proﬁtable world of selling document management solutions.

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EXECUTIVE DIRECTOR’S PAGE

New BTA Reports Free to Members o you have an int ere st in c omparing your dealership’s finance, compensation and service metrics to those of other office technology dealerships? If you are a BTA member, you can do so. The new 2010 BTA Benchmarking Series reports are now posted for download in the members-only section of the BTA website. Just visit www.bta.org/ 2010BenchmarkingSeries. (You will need your username and password.) The reports are free to all BTA members. There are three reports in the series, one each addressing the areas noted — finance, compensation and service. Prepared for BTA by Survey Advantage, the reports are based on the results of comprehensive surveys completed earlier this year by a number of dealers. Your participation has provided valuable resources to your fellow BTA member dealers, serving to help further strengthen the dealer channel. A look at the focus of these reports and some of the contents demonstrates their value. The 2010 BTA Finance Report compares key income statements and balance sheet indicators of dealerships to the recommended benchmarks of the business model for success as taught in ProFinance. Employee productivity, profitability, expense and asset management ratio performance is provided and compared to the recommended benchmarks. The results are provided by size of business (annual revenue) and geographic region. A sampling from the Finance Report: The median annual amount of equipment sales per sales employee for dealerships

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that have $5 million to $10 million in annual revenues is $186,497. The 2010 BTA Compensation Report provides detailed salary information on a wide variety of positions, from the CEO to the outside sales rep to the service dispatcher. The results are provided by size of business and geographic region. The report also includes such information as the percentages of respondents offering various employee benefits (e.g., a retirement income plan or flex time) and conducting job performance evaluations at certain frequencies. A sampling from the Compensation Report: The median total compensation package for a warehouse supervisor, among all respondents to the question, is $36,000. Th e 2010 Ser v ice Re p or t c ompares service operations in such performance categories as: profitability (service revenue per ser vice employee and per technician , service sales per unit in base, rental and CPC revenue allocations, etc.); personnel (net calls per day per field technician, incentive plans, distribution of time, etc.); call center efficiencies (recalls and incompletes, installation times, service department automation, etc.) and product (units in the field, machines on contract and T&M, machines per technician, etc.). The results are provided by size of business and geographic region. A sampling from the Service Report: The median annual service revenue in dealerships that have $1 million to $3 million in annual revenues is $1,550,856. Do you want to know more? Then I encourage you to download your copies of the 2010 BTA Benchmarking Series reports today. See how your dealership compares. — 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 Mike Arnold, CPO Ltd. www.cpoltd.com Larry Coco, Coco Training & Consulting Inc. www.cocotraining.com Peter Cybuck, Kyocera Mita America Inc. www.kyoceramita.com Robert C. Goldberg, General Counsel Business Technology Association David Ramos, 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.

Epson ad July 10:Layout 1

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Two ways to proямБt from price-performance. Outstanding Price-Performance s s s s s s

6ERSATILE PRODUCT LINE (IGH SPEED %ASY TO USE )NNOVATIVE FEATURES $EPENDABLE DOCUMENT HANDLING ! NAME YOUR CUSTOMERS CAN TRUST

/UTSTANDING 0ROlT /PPORTUNITY s 0 URCHASE DISCOUNTS NO MINIMUM PURCHASE REQUIREMENTS s $ISCOUNTED DEMO UNITS s &REE PRODUCT EVALUATIONS s &INANCING PROGRAMS

4HE 0RO '4 3 AND THE 0RO '4 3 ARE TWO OUTSTANDING EXAMPLES OF %PSON S VERSATILE LINE OF HIGHLY RELIABLE DOCUMENT SCANNERS THAT DELIVER EXTRAORDINARY PERFORMANCE AT AN ATTRACTIVE PRICE !DD THE )MAGE7AY PARTNER PROGRAM AND YOU HAVE A PRODUCT LINE FOCUSED ON YOUR BOTTOM LINE

Epson WorkForce┬о Pro GT-S80 Scanner Epson WorkForce┬о Pro GT-S50 Scanner

,EARN -ORE 6ISIT EPSON COM )MAGE7AY WorkForce is a registered trademark and ImageWay is a servicemark of Epson America, Inc. Epson is a registered trademark, Epson Exceed Your Vision is a registered logomark and Exceed Your Vision is a trademark of Seiko Epson Corporation. ┬й2010 Epson America, Inc.

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BTA PRESIDENT’S MESSAGE

2010-2011 Board of Directors

Is Your Team PDI+ & CDIA+ Certified? n today’s marketplace, your sales and technical staff need to have the knowledge and abilities that cover much more than just the hardware you sell. Having team members who have achieved certain certifications offered by CompTIA (Computing Technology Industry Association) can provide your dealership with that assurance. Since 1982, CompTIA has supported and led the global IT industry through its programs, including its professional certifications. In recent years, BTA has maintained a relationship with CompTIA, given the synergies between our organizations. Like other BTA members, I have attended a number of CompTIA’s Breakaway events and have always welcomed the educational opportunities CompTIA provides. Recently, BTA and CompTIA renewed an alliance whereby BTA member dealers can purchase exam vouchers from BTA at a discount. Specifically, BTA members can purchase the exam voucher for the CompTIA Printing and Document Imaging (PDI+) certification for only $195, a $44 savings off of CompTIA’s current non-member fee. Likewise, members can purchase the exam voucher for the CompTIA Certified Document Imaging Architect (CDIA+) certification for only $210, a $48 savings. The PDI+ exam is an entry-level certification proving competence in basic maintenance of printers, scanners, copiers and fax machines. The certification is recognized by several industry leaders, including Canon, Sharp and Xerox, as a benchmark certification for professionals who service and

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support document imaging devices. PDI+ covers a technician’s understanding of basic electromechanical components and tools, print engine and scan processes and components, color theory, connectivity and networking. The exam also covers soft skills such as customer service, safety and environment. While there are no prerequisites for the CompTIA PDI+ certification exam, it is recommended that entry-level candidates have foundation-level knowledge or hands-on experience working with printing and document imaging devices. The CDIA+ exam is a certification that tests expertise in the technologies and best practices used to plan, design and specify a document imaging management system. Several companies that provide document imaging solutions support the CDIA+ certification, including Canon, Konica Minolta, Kyocera Mita America and Ricoh. The CDIA+ certification is ideal for many job roles including: document solutions specialist, commercial sales representative and solutions analyst. It will give your team members the ability to evaluate an office environment and accurately estimate your customer’s document management needs. Beyond the discounts on the CompTIA exam vouchers, BTA also offers member discounts on training programs and resources from three vendors that can help your sales reps or service techs prepare for the CDIA+ and PDI+ exams to help ensure their successful completion. They are: Axzo Press, DataVault Inc. and Specialized Solutions. For details on the offers from these three companies — plus the details on ordering th e CompTIA exam v ouch ers — vi sit www.bta.org/EducationCertification. I — Rock Janecek

President Rock Janecek Burtronics Business Systems Inc. 216 S. Arrowhead Ave. San Bernardino, CA 92408 rjanecek@burtronics.com President-Elect Tom Ouellette Budget Document Technology 251 Goddard Road Lewiston, ME 04240 touellette@bdtme.com Vice President Terence Chapman Business Electronics Corp. 219 Oxmoor Circle Birmingham, AL 35209 tchapman@businesselectronics.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 Mike Upchurch Business Machines Inc. 3121-C Glen Royal Road Raleigh, NC 27617 mike@bmi4u.com BTA West Greg Gray Burtronics Business Systems Inc. 216 S. Arrowhead Ave. San Bernardino, CA 92408 ggray@burtronics.com Ex-Officio/Immediate Past President Bill James WJS Enterprises Inc. 3315 Ridgelake Drive Metairie, LA 70002 bjames@wjsenterprises.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

Kyocera Mita ad Jan 10:Layout 1

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Typical Printer

Kyocera Printer

Customers afraid to look at what their printers really cost? Help them make the wise choice. ECO-nomical. ECO-logical.

ECOSYS Printers from Kyocera. How much did your customers spend on printing last month? How about last year? If they are like most companies, it’s probably too much. Switching to ECOSYS Printers from Kyocera could save your customers hundreds, even thousands of dollars per year. That’s because Kyocera’s durable long-life consumables mean less waste, reducing costs and lowering impact on the environment. Brilliant color, crisp black and white, and low Total Cost of Ownership. Now that’s a wise choice.

Calculate your customers’ costs today. Visit our TCO Tracker at www.kyoceramita.com. Printer’s performance is simulated. Cost savings are for similar size printers having comparable prints-per-minute, paper size, memory, processor speed and rated print volume and based upon usage assumptions. Actual cost savings will vary. 6HH RXU RQOLQH 7&2 7UDFNHU DW ZZZ N\RFHUDPLWD FRP IRU DVVXPSWLRQV DQG GHWDLOV XQGHUO\LQJ VSHFLÀF FRVW VDYLQJV FDOFXODWLRQ IRU SDUWLFXODU FRPSDUDEOH SULQWHUV

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Large Format Widening your dealership’s sales opportunities by: Brent Hoskins, Office Technology Magazine

re your sales reps asking current customers and prospects this simple question: “Do you ever print anything larger than 11-by-17 inches?” If not, the overlooked question may mean your dealership is missing some lucrative sales opportunities. In today’s economy, you are undoubtedly seeking to widen your reach, landing additional hardware placements. Large-format (or wide-format) devices may be the answer. Advice to adhere to the “ask-the-simplequestion” strategy is often dispensed and increasingly followed. “Canon has seen the greatest success when sales reps simply ask the extra questions, ‘Do you have any large-format printers in-house? And, if so, in which departments are they located and what are the applications?’” says Richard Reamer, senior manager of product marketing for Canon U.S.A. Inc.’s Large Format Printer Division, which currently offers 21 color inkjet large-format printer models. “Today, we see people doing more largeformat printing in-house because they have found that it isn’t as high in cost as they may have thought.” Bryan Batelli offers the advice as well. He is wide-format product manager for Ricoh Americas Corp., which offers six laser monochrome models and two inkjet color models (through its partnership with Epson). “When sales reps are calling on their customer base, they usually aren’t focusing on wide format,” he says. “My advice is that they ask customers, ‘Do you do any wide-format printing?’ I think they will be surprised that a lot of people will answer ‘yes.’” What percentage of customers will answer “yes”? Rich Gigl shares an estimate. He is vice president of marketing for KIP America, which is exclusively focused on the product category and offers five LED monochrome models and one LED color model. “Probably about 20 percent of the typical

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dealership’s customer base is using wideformat somehow,” he says. “And within that 20 percent are relatively high margins for aftermarket, support and service.” Those associated revenues, particularly the aftermarket, are the target. Reamer points out that those dealers who are new to the product category should be aware that large-format sales fit the printer model. “It’s different than with copier/ MFPs where you are relying on the service revenue,” he explains. “With large-format printers, the successful dealers are relying on the aftermarket ink [or toner] and the media business.” Batelli and Gigl share additional comments regarding the revenue opportunities. Says Batelli: “A lot of dealers realize the benefit of wide-format devices from a profit standpoint. They know they are reliable, so there are not a lot of service calls. And the aftermarket is great. They can make a lot of money off of it.” Says Gigl: “Dealers are pretty protected in terms of toner sales; we don’t have a lot of toner piracy in our industry.” If finding large-format opportunities is relatively easy and the aftermarket revenues are noteworthy, why aren’t more dealerships embracing the product category? “I think it’s just the fear of the unknown,” says Reamer of some dealership owners and sales reps. “They are not familiar with large format. They may be thinking back to the late 1990s or early 2000s when large-format sales were not simple. Back then, it wasn’t very easy to print a document and the cost per copy or print wasn’t as low as it is today.” Batelli shares a similar observation. “In some cases, the sales rep is intimidated by wide format,” he says. “He [or she] is concerned about getting into situations where the customer is talking about some things [like file formats] that he won’t understand.”

Digital Gateway ad Sept 10:Layout 1

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SINCE 2007

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Talk of “fear” and “intimilearning about wide format,” “It’s different than with dation” may lead some to he says. “So, if you do have a copier/MFPs where you ask if large format requires a specialist, reps will feel more dedicated salesperson. “We confident w hen they do are relying on the service strongly recommend that come across an opportunity revenue. With large-format the dealership have an inknowing they can get the printers, the successful house champion or sp especialist involved in selling dealers are relying on the cialist in terms of product the product.” aftermarket ink [or toner] knowledge and street sense,” The opportunities reps and the media business.” says Gigl, noting that sales may come across will be — Richard Reamer rep leads can be turned over found in one of three genCanon U.S.A. Inc. to this person. “The level of eral environments: color success that is achieved is graphics (e.g., ad agencies, much greater with somebody who is a product specialist or sign makers, grocery stores, print-for-pay, etc.); technical champion. Let’s face it, the general line rep has a lot of pres- documents (e.g., architectural or engineering firms, consure to just sell the core product base. So the answer is a struction, utility and manufacturing companies, etc.); and simple one as far as we are concerned. Name a specialist general use (e.g., education, health care, corporate offices, and you’re going to have a greater level of success.” etc.). Large-format placements in such environments can Batelli agrees. “A lot of times dealers find that having a spe- often lead to additional product sales, says Reamer. cialist is better, because the general rep is more focused on “Perhaps the lease is not up on the [large-format cusselling the MFP-type of box and can’t spend a lot of time tomer’s] MFP, but a large-format product will get the

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Lexmark ad Sept 10:Layout 1

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When it comes to award-winning products, Lexmark delivers. Lexmark business products have received great reviews, including a reputable 2010 Better Buys for Business Editor’s Choice for the XS736de! What’s more, our innovative E-task solutions, featuring Eco Copy, MyMFP and Remote Copy, won a 2009 Buyer’s Lab Outstanding Achievement Award! In addition to great products, you can also enjoy the beneﬁ ﬁts of great Lexmark programs, like the Lexmark Business Solutions Dealer (BSD) Program with exclusive pricing and incentives that allow you to aggressively compete and win! To learn more about the Lexmark BSD program, contact us at 877.999.4360.

Lexmark and Lexmark with diamond design are trademarks of Lexmark International, Inc. registered in the United States and/or other countries. All other trademarks are the property of their respective owners. ©2010 Lexmark International, Inc. 740 New Circle Rd., Lexington, KY 40550.

“Our customers have realized they get all the functionality they need with a Lexmark A4 MFP, and Arizona Digital has realized tremendous placement and proﬁt opportunities with this approach.” Joel Dylong, Owner, Arizona Digital Products

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dealership into the comlot more difficult to navigate “The big thing now is color pany with another product through the control panel scanning ... For example, in another product category,” because they were set up people on a construction he says. “We have heard of like printer control panels, cases where a $3,000 largewith a lot of scrolling down site are marking up format printer placement to locate the different funcdocuments ... by hand and has led to a half-million tions,” says Batelli. “Now the they want to scan them in to dollar [Canon] ImagePRESS user can easily find what he be printed at the home office sale down the road.” is seeking.” — and the printout has got to be in color.” As noted, in the past 10 Perhaps one of the most — Bryan Batelli years or so, it has become touted new features of toRicoh Americas Corp. increasingly easier to print day’s large-format devices is to large-format products the ability for both color and and the per-print and copy cost has come down as well. The monochrome models to scan in color for output on smalldealer taking another look at large format will also notice format color printers. Canon, KIP and Ricoh all offer this other new product capabilities and features. On Ricoh large- capability on their products, as do other large-format format products, for example, users will now find a control printer manufacturers. panel that is like that of an MFP. “On earlier models, it was a “The big thing now is color scanning,” says Batelli. “It is

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color scanning to a color file, competition in your selling â&#x20AC;&#x153;You must know your which can then be sent to a territory,â&#x20AC;? says Gigl. â&#x20AC;&#x153; You customer base and the low-end color printer. A lot of should get creative with times, for example, people on compensation for your sales competition in your selling a construction site are marforce and with th e marterritory. You should get king up documents [e.g., keting of the products; make creative with ... the electrical in green, plumbsure that the products are marketing of the products ing in yellow, etc.] by hand very visible on your website. ... Make sure you have a and they want to scan them And, finally, make sure you specialist who is completely up-to-speed ... â&#x20AC;? in to be printed at the home have a sp eciali st w ho i s â&#x20AC;&#x201D; Rich Gigl office â&#x20AC;&#x201D; and the printout completely up-to-speed on KIP America has got to be in color.â&#x20AC;? the products. Do that and If the re-evaluation of st ay fo clarge-format products and their market lead you to take on used â&#x20AC;&#x201D; and you will be successful.â&#x20AC;? the product category in your business, you will want to conBrent Hoskins, executive director of the sider following the path others have followed. So, what are Business Technology Association, is editor of the characteristics of the dealership that is poised for success Office Technology magazine. He can be in large format? â&#x20AC;&#x153;You must know your customer base and the reached at brent@bta.org.

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Toshiba ad Sept 10:Layout 1

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At Toshiba, we always knew our dealers were winners. Congratulations to the 2010 Elite Dealer Award winners. As we worked our way through challenging times, these are some of the dealers who helped us succeed. If you’d like to join the winning team of Authorized Toshiba Dealers, call 949-462-6201. Atlantic Tomorrow’s Office Business Copier Solutions (BCS) Document and Network Technologies (DNT) EO Johnson Office Technologies Image 2000 IMAGETEC LP Infincom Integrated Office Technology Kelley Imaging Systems, Inc. Memphis Communications Corporation Nauticon Imaging Systems/Action Business Systems Stargel Office Solutions TGI Office Automation Zoom Imaging Solutions, Inc.

New York, NY Poway, CA Fenton, MO Wausau, WI Van Nuys, CA McHenry, IL Tempe, AZ Santa Fe Springs, CA Kent, WA Memphis, TN Gaithersburg, MD Houston, TX Brooklyn, NY Roseville, CA

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Easy Network Access Your MFPs can be used, modified & compromised by: Peter Cybuck, Kyocera Mita America Inc.

ny device connected to the Internet can potentially be reach ed from any oth er point on the Internet. Many MFPs are set up to allow remote connections for maintenance and support issues, so if any addresses on their subnets are shared, they can be easily found and reached. International boundaries are not an issue. The manufacturerâ&#x20AC;&#x2122;s administrator password on most MFPs in the field has never been changed, leaving hundreds of thousands of MFPs open to direct connection to admin Web pages. If the passwords have not been changed, most low-level attackers can connect as administrators in a matter of seconds. Administrators can modify address books (Attackers can now get a copy of all future e-mails â&#x20AC;&#x201D; all destinations are now a hidden list with their name added.), change print redirect addresses (They can send an attack file to the network server next time a job is redirected and take down the network if they want.), flood the network with bogus traffic (They can turn on all MFP alerts and status reports and request them as often as possible, slowing down the network.) and send large print jobs to wipe out paper stock and tie up resources. I can go on, but you get the idea. Even low-level, unsophisticated attackers can easily use an MFP to attack a user network from anywhere if network access control has not been addressed. Many users want you to manage their networks, collect clicks and determine when service might be required, but never underestimate the role security must play and how important it is to protect your customers when remote access is enabled. What if the connected attacker could degrade network performance using an MFP-installed base to slow down all

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network events in an account linked to essential infrastructures? What would be the impact on an air traf fic control system , the telecom network, the energ y control pipelines (safety valves on gas lines), etc.? Even limited denial of service using office equipment is a serious security threat that needs to be mitigated. Users today require remote support and management solutions so remote access must be enabled, but with security as a priority. It is critical that tested, proven, secure solutions be deployed. Managed print services (MPS) are in high demand today. They offer great value and secure, safe connections are possible, but that has to be part of the strategy, proposal and installation plan. Be careful to avoid untested MPS solutions without robust features and capabilities. Companies that are now focusing on these services as a business priority have selected partners with proven track records. New, homegrown solutions need to be treated with caution. There is another, more common and equally important MFP access issue â&#x20AC;&#x201D; personal user access. In the past, MFP access has been based on either no user restrictions or on very weak passwords such as the entry of four or five numbers (PINs) to access individual account profiles. Factory defaults are rarely changed, so there is often little to no MFP access control. Virtually anyone can make copies of confidential documents with no restrictions and anonymous emails can be sent with no records kept. Recently, user access and positive ID has become a major issue. The user environment and improved security policies are changing rapidly. The federal government requires the use of Common Access Cards (CACs) to control access to

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computers and to encrypt and digitally access to features such as color copying, Addressing these issues sign e-mails. Since MFPs send e-mails, e-mail transmission settings and prothe same rules now apply to the MFP. viding better audit trails to control liaprovides an insurance Digital IDs, signing and encryption cerbility issues while improving cost control. policy for the dealership’s tificates are now required to sign and For organizations seeking to enhance customers, limiting their encrypt e-mails sent from the MFP. In efficiency without compromising job-speliability. This can ... help fact, all access to sensitive network recific accessibility, Kyocera’s AccessLock build new and lasting sources such as shared folders or serallows organizations, through Active business relationships. vers, in addition to e-mail servers in Directory Authentication, to offer the use most federal sites, must now be conof device functions based on parameters trolled by the CAC. Frequently, the sender’s e-mail address is set by the network administrators. For example, AccessLock read from his (or her) card and automatically inserted in the sets personal profiles and defaults that can be automatically “From” field of the e-mail message so it is clear who sent the called up with ID cards. An example of a critical default is the e-mail and the entry is not under the sender’s control. This selection of encrypted PDFs for the transmission of healtheliminates the anonymous e-mail problem. care files. In the event a file must be shared with an outside Commercial customers have also been moving toward the physician, insurance company or other health-care center, it is use of proximity cards, magnetic strip cards and other digital a legal requirement in many jurisdictions that the file be sent IDs to control access to office equipment and personal set- encrypted over open networks. Not doing so can be a violation tings. This is a major step ahead, controlling personalized of the law. Ignoring this can have serious consequences, so locking in this setting using positive ID cards and preventing unauthorized transmissions are important business issues. MFP suppliers need to take access control very seriously since it has emerged as one of the most important office equipment security issues. Installation planning, user setups, and maintenance and monitoring programs all need to make this a very high priority. Dealerships that gain their customers’ confidence by proactively addressing these issues have the best chance of securing long-term business. Addressing these issues provides an insurance policy for the dealership’s customers, limiting their liability. This can greatly add to the purchase justification and help build new and lasting business relationships. Peter Cybuck is senior director of security and software solutions at Kyocera Mita America Inc. He is responsible for managing the planning and marketing of security and advanced MFP software solutions at Kyocera Mita. Previously, he served at Sharp for nearly 15 years, where he helped secure the first Common Criteria certificate for a security product in the copier/printer/scanner industry. He also served at Ricoh for more than 10 years. Cybuck is currently involved in additional Common Criteria evaluations and Protection Profile development projects, as well as in the planning, development and introduction of new security solutions for multifunction devices. Visit www.kyoceramita.com. For an additional perspective on the topic of security, see Mike Arnold's article on page 27 in this issue. 20 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | S e p t e m b e r 2 0 1 0

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The Elite Sales Rep Drive key values to build stronger sales teams by: Larry Coco, Coco Training & Consulting Inc.

n today ’s business world , it is imperative for dealer and direct organizations to keep sales turnover to a minimum and to grow sales tenure. This is not an easy task. While many struggle with this, there is a solution. In short, it requires a plan and effective execution. There is solid research that tells us the five key values of successful people are as follows: A willingness to follow direction — Generally speaking, your best sales representatives are willing to take direction. If not, there will be problems. Exhibiting a high amount of self-discipline — Your task is to place your sales rep in situations where he (or she) can be left alone to accomplish relevant tasks. The ability to work under pressure — Successful sales reps are able to work under tight deadlines and manage multiple priorities. A strong desire and commitment to succeed — A successful rep is willing to put forth the time and effort it takes to win. General comprehension abilities — Reps should have a keen awareness of how to handle people and situations. In other words, they should have “street smarts.” Think for a moment about the most successful people you have ever met in your life, whether it be from your school days, a sports team, a friend, work associates, etc. Perhaps it is even someone you greatly admire. Do these people have these attributes at a very high level? I think you may be nodding your head in agreement right now. Here is the point: These five internal values reside in the most successful people you know or will ever meet. If this is true, then we need to absolutely measure these values in

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our salespeople. There is no reason to reinvent the wheel. Here is an exercise that will truly make you think. Write the five key values of successful people on a piece of paper. Put your sales rep’s name at the top of the page. Next to each of the values, rate the rep on each of them by putting the numbers one through five next to each value. One is the lowest score and five is the highest. Next, have a meeting with your sales team members and let them know you have identified the core values of successful people. Ask them to think about someone they admire. Discuss the values in detail and let your team know you expect every employee to exhibit these values at a high level. In other words, you are “raising the bar” and your expectation is that your sales reps will embrace this new company culture. Next, distribute individual sheets to each member of your sales team and have your reps do a self-evaluation. Ask them to rate themselves with these values in mind, thinking about their work over the past six months or so. Are they a three (average) or are they better, or perhaps worse? The lowest score a rep can give himself is a five; that is, all ones for each key value. The highest score a rep can attain is a 25, or all fives. As we share in my Sales Management Leadership series, this is the time for you, the manager, to take a very proactive approach. The time is now right for you to share your evaluation of each sales rep by scheduling a meeting with him. These meetings represent a tremendous opportunity for you to let each sales rep know where he stands. That is a good thing. Too often I speak to reps who do not know where they stand in management’s eyes. This simply leads to high levels of stress and anxiety. I believe it is important for

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of successful people and explain that your reps to know where they stand, ... Your best reps may your company culture is driven by them. since only then can individual and team Have them come back and â&#x20AC;&#x153;sellâ&#x20AC;? you on development occur. tend to underestimate the idea that they are the right hire. Ask Experience tells us that interesting their abilities since them behavioral questions tied to these dynamics will take place during these they are often key values. (I will be happy to share these one-on-one meetings. For example, your self-critical and with you â&#x20AC;&#x201D; just send me an e-mail.) best reps may tend to underestimate demand a great deal Let these attributes become the basis their abilities since they are often selfof themselves. of how you develop your people. Put a critical and demand a great deal of plan in place to continually measure themselves. While you rate them a 22, they may rate themselves only a 16. At this point, let them your sales reps and other employees with the five key values know they are appreciated and challenge them to bring even in mind. Only then can you build that elite, high-performance team you so want and deserve. stronger values on a consistent basis. Now for your struggling reps. They may tend to overestiLarry Coco is president of Coco Training & Consulting Inc. mate their abilities and sell you not on what they have done, For the last 28 years he has focused his career in the world of but rather what they are capable of doing in order to save document management, working with both face. While they may rate themselves a 20 or so, you may dealer and direct organizations. Previously, he have rated them a 14 at best. In this case, as a good man- worked at Ricoh Corp. in a variety of positions. He can be reached at ager/leader, your job is to communicate their strengths, as larry.coco@salesoptimizer.com or well as areas needing improvement. As these meetings con(914) 588-5384. Visit www.cocotraining.com. clude, you need to be very clear with your sales reps as to what values they need to focus on to be in good standing with you, your team and your company. This system, tied to key internal values, allows you to create a benchmark (perhaps a score of 17 or lower is not acceptable) and to give each of your employees goals. In turn, you will drive these attributes on a consistent basis by giving your sales reps activities tied directly to them. For example, if I am a sales rep reporting to you and I am exhibiting a low level of self-discipline, give me a task that needs to be completed on a timely basis. Another takeaway from implementing this type of system is that you will have a better understanding as to why certain sales reps are not performing with consistency and are on the verge of being deselected. You are frustrated, as are they. In short, they are not bringing these high-level values to the table. It is no wonder you do not spend a great deal of time with them and find more important things to do. They may not have what it takes to be an elite, high performer. Knowing and measuring these values in your new hires will often lead to better decisions. As discussed, holding on to a sales rep and hoping that things will magically improve will just cost you too much money and time. I know what you are thinking: If these values are strong indicators of success, then why not make them part of the recruiting and selection process? This makes sense. Share expectations with your candidates, tell them the key values 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 | S e p t e m b e r 2 0 1 0 | 23

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COURTS & CAPITOLS

Contractor Crackdown These individuals truly have to be independent by: Robert C. Goldberg, General Counsel for the Business Technology Association

recent call from a BTA member contained a warning for all employers. Two years ago, the member, at his sales team members’ request, designated them all “independent contractors.” The member was facing increased competition, including competition from his major supplier. Faced with a difficult economy, competitors and low margins, the dealer sought to reduce his costs and comply with his sales team’s preference to be independent. Once his salespeople were independent contractors, the member did not have to be concerned with discrimination claims under Title VII, the Family Leave and Medical Act, and many other worker protection laws and regulations. The member no longer had to contribute to workers’ compensation and unemployment funds. Overtime and minimum wage requirements do not apply to independent contractors. Finally, the member no longer had to withhold state and federal income taxes or Social Security or Medicare taxes. The member received the same services at a considerably reduced cost. The sales team members felt they had received a raise — although that is questionable. The same difficult economy that encouraged the member to change the status of his employees to independent contractors has also resulted in state and federal governments seeking new sources of revenue from misclassified employees/independent contractors. The Internal Revenue Service has embarked upon a 6,000-audit project concentrating on employment issues. The Department of Labor (DOL) has added 90 investigators, giving them the task of rooting out misclassifications. Additionally, $12 million dollars are available for state enforcement. Regulators believe this is an area of abuse and a potential revenue source for their own depressed budgets. The dealer became the subject of a DOL investigation. The DOL found that the individuals were not properly classified as independent contractors. The individuals performed the same functions they did as employees, and nothing had changed but their classification. The dealer provided their leads, established their schedules and supervised their activities. The individuals did not work for anyone but their former employer. The audit proved very costly. The member was responsible for 100 percent of all taxes, withholdings and employer contributions. These amounts included the portion normally withheld

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from the individual, but in this case were not. In addition, there were substantial penalties and interest imposed. The dollars saved through the misclassification were significantly eclipsed by the results of the DOL investigation. In addition, the dealer is being sued by one of the individuals who alleges that if he should have been classified as an employee, then he should have received medical insurance. This individual has a significant medical claim and if successful in the litigation, the dealer is without insurance to cover it. If you are engaging independent contractors, it is important to re-examine their functions, duties and independence. The individuals truly have to be independent. They should set their own hours, be free to work for others and provide their own leads. With the significant increase in enforcement, you do not want to be found misclassifying individuals. Robert C. Goldberg is general counsel for the Business Technology Association. He can be reached at robert.goldberg@sfnr.com.

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

Dealer Members Advanced Integrated Systems Ltd., Kingston, Jamaica Americom Imaging Systems, St. Louis, MO Doceo Office Solutions, York, PA DocuForce Inc., Wichita, KS Laser Lab Inc., Ephrata, PA Office Equipment Outlet, Lake Zurich, IL TLC Office Systems, Houston, TX Service Associate Members Coco Training & Consulting Inc., Danbury, CT Sissen & Associates, St. Louis, MO EverBank Commercial Finance, Parsippany, NJ For full contact information of these new members, visit www.bta.org.

For the benefit of its dealer members, each month BTA features two of its Vendor or Service Associate members in this space. BTA Vendor Associate member Electronic Systems Protection (ESP) is a manufacturer of power protection technology for the office technology industry. For nearly 20 years, ESP has manufactured patented power filtration and power protection technology and is the choice for power protection by many of the worldâ&#x20AC;&#x2122;s premier electronic equipment manufacturers and organizations. The company has expanded to include the kiosk, ATM and mailing industries, as well as the Canadian, European and Latin American markets. www.realpowerprotection.com

MESCA Transport LTL Discount MESCA is pleased to offer BTA members an additional 20 percent off their first lessthan-truckload (LTL) shipments. BTA members are realizing greater control over their inbound freight, improved transit times, broader carrier selection and significant cost savings. The first step in the process is a confidential Logistics Process Analysis encompassing all modes of transportation, from full-truckload and lessthan-truckload, to small-parcel shipments. Call MESCA today for your free Logistics Analysis and to receive an additional 20 percent off your first LTL shipment. Call (800) 552-5709 or visit www.mesca.com. For more information on BTA member benefits, visit www.bta.org.

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BTA Service Associate member DataVault Inc. has been providing training, consulting and office-automation solutions since 1993, with an emphasis on electronic document management systems (EDMS) technology. DataVault has established itself as the leader in the document imaging training and consulting field, offering training regimens including the Document Imaging 101 training course, CompTIA CDIA+ training course, ECM Needs Assessment training course and Scanning Bureau Workflow training. DataVault offers BTA members discounts on its training programs. www.datavault.com A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.

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PRINCIPAL ISSUES

MFPs & Privacy Issues Dealers must reassure & educate their customers by: Mike Arnold, CPO Ltd.

sk any office equipment dealer what his (or her) greatest challenges are and you will probably get the same answer : tightening finances and the accompanying drop in sales because business owners are being more cautious with equipment purchases and leases. Without question, those are serious issues, but we face another challenge on the horizon: potential threats to individual privacy courtesy of the office copier/MFP. Few have previously regarded the office copier/MFP as a threat to privacy and identity protection. In fact, a survey that grew out of a CBS Evening News report on the topic of hard drives and copier/MFPs showed an alarmingly small percentage of the population that was even aware that this posed a problem. There is significant public awareness of identity theft from other sources. We have all heard the stories of banks whose information gets hacked into by experts using computers and wireless routers; of individuals who rifle through dumpsters to find sensitive paper information that has been discarded; and e-mail addresses that get hacked into and information stolen. There are increasingly tight regulations about what information can be stored on computers. In the health-care industry, HIPAA has changed the way medical facilities do business. So there is considerable awareness of the problem, but until recently, no one was thinking much about what fertile ground the office copier/MFP provides for identity thieves. This situation has presented our industry with some challenges, but also some potential opportunities. Virtually all digital copier/MFPs manufactured after 2002 have hard drives that store images of documents that are copied, scanned or e-mailed. The implications of this were brought to light earlier this year when CBS did a report centering on Dos Palos High School in Dos Palos, Calif. One of the CBS affiliate reporters pulled hundreds of students’ names, home addresses, cell phone numbers and Social Security numbers from the hard drive of an old school copier/MFP. This reality caught the attention of the school superintendent, then Katie Couric of CBS and, ultimately, U.S. Rep. Ed Markey. Markey called for an investigation by the Federal Trade Commission, concerned that most

Americans do not know that their information can be compromised. The publicity from the CBS report went further, with a reporter discovering (and reporting) that it is fairly easy to purchase used copier/MFPs that have been leased to businesses and are being resold in the United States or overseas and remove the hard drive that contains personal data. Many of these old copier/MFPs are available inexpensively enough so that this is an attractive option for those with ulterior motives. While CBS may have been a bit overly dramatic with its “every-copier/MFP-holds-a-secret” storyline, it is nonetheless true. Consider for a moment what most businesses store on their copier/MFPs — paychecks, Social Security information, birth certificates, bank records, income tax forms, health-care records and much more. When CBS reporters went to a warehouse in New Jersey to see how difficult it would be to buy a used copier/MFP loaded with information on the hard drive, they hit the jackpot. They were able to download sensitive police information, pay stubs, Social Security numbers and individual medical records. So, that leaves us in the industry with some potential image problems and some hurdles to overcome. First, the perception is that the industry has failed in informing the general public of the potential risks involved with copier/MFPs. Our first challenge is to educate the public, and our customers, about the situation and what the industry (and we) can do to mitigate the problem. To start, we need to find a way to assure the customer that data stored on the hard drives of the copier/MFPs they turn in as they come off lease is removed, or unavailable, to hackers. Several manufacturers have already taken steps in this direction. Konica Minolta has built-in protection on its equipment that overwrites data and then encrypts it. This can be set to be performed at certain intervals, or manually. Sharp has a similar solution in its Data Security Kit, which comes with a price tag of up to $500. The industry, in general, will need to move in this direction and manufacturers will need to have built-in and tested security devices that prevent data from being accessed. It may be 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 | S e p t e m b e r 2 0 1 0 | 27

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years in the future before it is uniformly copier/MFP to the leasing company. It done, so that means that there will be solves the problem, but it is more costly. It is incumbent upon other issues to confront in the meantime. Our industry needs to address this dealers to communicate Since we cannot return copier/MFPs to issue in a few key ways. with customers about Education — It is incumbent upon leasing companies without hard drives, we the potential for identity dealers to communicate with customers need to either assure customers that the theft clearly and about the potential for identity theft data stored on these hard drives is secure, honestly ... Educating clearly and honestly. This can be accomor factor into the sale or leasing price the customers ... is crucial. plished through direct mail, PR, adverreplacement of the hard drive. tising, webinars or seminars. It is an Certain industries, such as the banking and health-care industries, may have even more stringent ongoing process and educating customers about the potential standards they will expect the industry to adhere to. They are threats is crucial. The education must go beyond what the governed by Sarbanes-Oxley, HIPAA and Gramm-Leach-Bliley. industry is doing to deal with problems to secure confidential One banking transaction that we are aware of involves a information; it should also alert customers to how they can multi-branch bank whose leases will soon be up for renewal. establish security and safety protocols within their offices. Verification protocols — Our industry needs to work out Because banks are already sensitive to identity theft, a solution for this institution is to have technicians on site at each a way to have a standard, independent, dependable protocol branch location to remove the hard drives and hand them to for removing and overwriting data on hard drives. A standard bank officials, then substitute a new hard drive and return the system with benchmarks will help put this issue in perspective. Whether this ultimately results in replacement of hard drives and destruction of older ones, or simply overwriting, this needs to be a foolproof means of protecting data. Standardization of information protection — It may be that all the independent manufacturers will not immediately agree on how to protect information, but they should work toward that goal. Legislation — With publicity and identification of a problem comes the likelihood that legislation will be introduced to address the problem. We should be open-minded to anything that protects our customers, the end users. With problems come obligations and opportunities. We must do what we can to address the issue head-on to assure our customers that we, as an industry, are taking steps to protect them. For some, the manufacturer-provided solutions that primarily address end-of-lease issues may be sufficient. But for those who are more concerned with provisions of HIPAA and Sarbanes-Oxley, a more aggressive treatment may be in order. In those cases, they may seek our assistance in building an “overwrite-or-erase-as-you-go” program. We have the obligation to educate and the opportunity to provide products and service as needed. And, as this situation gets more and more attention, it may spur manufacturers to come up with newer and even better solutions. Mike Arnold is president and CEO of CPO Ltd., Santa Clara, Calif. Visit www.cpoltd.com. For an additional perspective on the topic of security, see Peter Cybuck's article on page 18 in this issue. 28 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | S e p t e m b e r 2 0 1 0

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MPS STRATEGIES

iPad Case Study: GFW School district controls costs with new technology by: David Ramos, Strategy Development

nd users today are looking for tighter control over document output. They are looking for balanced deployment and controlled output utilization down to the desktop level, all while reducing costs. They may want support with ending discretionary printing or with implementing green initiatives. Some end users may be further along than others in these initiatives, but Courtesy of Apple one thing is clear: With or without you, they will find a way to meet their goals. Let’s take a look at a school district that is utilizing a combination of initiatives to meet its objectives. Last year, about three million e-readers were sold. Estimates in January of this year coinciding with the Apple iPad announcement were that another six million would be sold in 2010, according to the Yankee Group. On July 21, three months after the April release of the iPad, Apple announced that it had already sold 3.27 million units to consumers. New IDC estimates ( from a yet-to-be-published study) predict sales as high as 12 million tablets this year and doubling in 2011. For years there were major obstacles with e-paper technology; in the past three decades, there was no technology available that was sufficiently paper-like. By this, I mean a display medium that is thin, flexible, capable of storing readable images without high power consumption, highly readable in ambient light, has good resolution, high whiteness, good contrast and is pretty cheap. This, of course, was before the iPad and its battery that supports up to 10 hours of video and 140 hours of video playback with high-definition resolution. What do the early results among iPad users tell us? Giving ammunition to the “iPad-will-save-reading” camp, a recent study in the United Kingdom showed that 31 percent of iPad users prefer their iPad to their laptop, mobile phone, e-reader and traditional print media for reading newspapers and magazines, perhaps due to the innovative presentation of news put forward by aggregator iPad applications like Flipboard and Pulse. And, moreover, 41 percent of iPad owners prefer the iPad for reading books, which bodes well for iPad apps like iBooks, Kindle for iPad and Barnes & Noble. The impact this technology has already had and will continue to have on the consumer market is just beginning to be

seen, but what are the potential inroads for other applications in business and education? Ron Swanberg is technology coordinator for the Gibbon-Fairfax-Winthrop School District (GFW) in Gibbon, Minn. After researching and consulting with other technologists about how to put user-friendly technology into students’ hands, he found his answer. This year, GFW will not require a mouse click, portable computer cart or even a computer lab for its high school students and teachers. GFW has become the first school district in the United States to put an iPad into each high school student’s (and teacher’s) hands. During the 2010-11 school year, every GFW high school student will have access to an iPad tablet to use in their classes. Students can use their iPad: As an organizational tool to track assignments, homework and class projects To access the Internet to research information needed for class projects To create online presentations To write class papers and complete projects To run a variety of applications to enhance their learning experiences in class To read electronic books, tests, newspapers and magazines “iPads are capable of replacing textbooks and calculators while offering online research capacity,” says Swanberg. “Replacing textbooks in biology, for example, costs us about $85 each. Now, firms are working with Apple so that we can access those books online. Say we only want Chapter 6. We will now have access to Chapter 6 without paying for the entire textbook.” The school’s 320 iPads were pushed out at the end of 200910 school year and, during the summer, staff development workshops were conducted by Apple consultants on how iPads integrate into classroom curriculum. Obviously, the main focus is on educational uses, directed by teachers who are trained to enhance the students’ learning experiences with technology and impact their academic results. However, it has been well documented that school districts across the country have been ravaged by budget cuts and other funding issues. 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 | S e p t e m b e r 2 0 1 0 | 29

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So what additional benefits can be had return to the information later if need be. “Students can’t write beyond the goals of teaching and learFrom there, they electronically submit ning? Market research firm InfoTrends paperwork in PDFs to the teachers and the notes in hardcopy estimates that companies spend between teachers use PDF markup to review and textbooks today ... Now, 1 and 3 percent of annual revenues on correct papers. We have a GFW Carbon they can research, document output, and an All Associates Team Energy Tip of the Week focused on bookmark and then study shows that today, the average whitegreen initiatives and printing will be an return to the information collar office employee spends $1,000 a ongoing topic throughout the year. I have later if need be.” year in document output. When asked eliminated all inkjet printers from the disabout the impact on his output and potrict; I have put all of my desktops under an tential savings on the school district’s traditional copier/ MPS contract, with the exception of the color devices, because MFP and desktop printing fleet, Swanberg stated: “School my provider won’t put them under contract. So that leaves me starts the end of this month and we only distributed the to continue managing color. Plus, I have driven down my MFPs devices at the very end of our school year in May, so we haven’t to the minimum number necessary and I only have one vendor started measuring that impact yet. But our hope is that there supporting me. This technology will be the next step in our will be an impact, because we have focused on educating our evolution of controlling printing costs.” people away from traditional behavior; we want to stop prinThis case shows that the MPS window of opportunity will not ting everything from habit.” stay open forever and that hardware is a commodity in the eyes Swanburg says the iPads will allow students to receive, com- of end users. You have a choice: Reinvent yourself plete and transmit homework via e-mail. “They can use book- and adapt to the trends or continue to focus on a marking for researching textbooks and note-taking online,” he price-driven, hardware-only strategy. Either way, says. “Students can’t write notes in hardcopy textbooks today; end users will find solutions on their own. David Ramos is a consultant with Strategy they incur the cost of buying a spiral notebook, usually one for Development. Visit www.strategydevelopment.org. each subject. Now they can research, bookmark and then

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Do you crunch the numbers,

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he BTA ProFinance course will teach you how to set the strategy, track critical performance measures and manage your assets according to a proven business model designed to improve the profitability of your company. Instructors John Hanson and John Hey of Strategic Business Associates take a holistic approach to the redirection of your business — from sales rep compensation and projecting service revenues to inventory management and an action plan for implementation — with the short-term goal of achieving a minimum of 14% operating income. You can achieve these results by monitoring 24 key benchmarks and making strategic shifts as discussed in the program.

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