Dealer Support ICT Guide

july 2011

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s I type this comment on my computer, using my wireless mouse to navigate between tasks and my Dictaphone to listen to comments from industry experts while my mobile phone constantly interrupts my trail of thought, I am reminded that there is no escaping the impact technology has on everyday life.

But we were also reminded recently that life can also have a profound impact on technology.

When the giant earthquake hit Japan, all eyes were glued on events and the scale of the disaster unravelled. Since then, concerns have turned to how this will affect everyday business and, with Japan as the technological heartland, there have no doubt been some worried conversations.

Fortunately for consumables suppliers, the impact hasn’t been too great, although it is still worth keeping an eye on proceedings as our IT Update feature explains.

Also this issue, we look at media storage and give you some tips for winning key IT contracts.

There is certainly a lot happening in the IT world and there is a lot for salespeople to think about when approaching clients with the latest offerings.

Enjoy,

M att Ja ne

Editor

contents 01 IT UPDATE DISASTER RECOVERY

Has the Japanese earthquake impacted on consumables?

02 IT FEATURE WHAT’S IN STORE?

How salespeople can make the most of media storage business is published by...

Intelligent Media Solutions Suite 223 | Business Design Centre 52 Upper Street, London N1 0QH tel: 0207 288 6833 | fax: 0207 288 6834 email: info@intelligenmedia.co.uk web: www.intelligentmedia.co.uk

03 IT REPORT TRICKY TIMES AHEAD

How the IT market has fared in the last quarter

r u o lspace o C my

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01 it update

02 it feature

03 IT report

Avoiding disaster With the situation in Japan prompting concerns

among consumable customers, salespeople need to be able to reassure them and encourage them to continue their purchases. Matt Jane looks at the extent of the problem and how the market is faring

01 it update

I

t has been a turbulent few months in the consumables industry. The recent disaster in Japan left many wondering how the provision of these vital business supplies would be affected, with fears that production of consumables would dry up as the country was left to rebuild its shattered infrastructure.

In terms of manufacture, the effects of the disaster have varied throughout the country, with some areas worse hit than others. “The impact of the earthquake has not been proportional for all companies based in the region,” explains Charlotte Elmer, IT channel sales manager at Kyocera Mita. “Those with manufacturing plants in China or western Japan will have seen minimal impact, if any at all.”

Like many Japanese companies, OKI has a plant in Fukushima, where the operation to stablise the nuclear threat is an ongoing battle. “After the recent disaster, the plant is now back up and running at normal capacity,” explains consumables manager Martin Kelly, who adds that the majority of its consumables are manufactured in China, Thailand and Scotland so there has been no direct effect on business. “There are a few piece part vendors that are based in the Fukushima area and these have caused certain delays on a few products. However alternative sources and manufacturing sites have now been found.”

How the situation plays out is still yet to be seen and most companies and analysts are closely monitoring the situation. One company that is continuing to assess the situation is Brother, with sales and marketing director Phil Jones saying that its ink cartridges, laser toners and drum supplies remain in good supply. “We are not concerned as to the future position for our customers,” he says. “It’s business as usual.”

Kevin Weaver, general manager for desktop products and supplies business at Xerox, says they are also keeping pace with consumer demands and that contingency plans are in place should the situation deteriorate. “We continue to monitor the availability of these materials and, if necessary, we’ll air ship supply from

02 it feature

Japan to minimise any disruption for our customers,” he explains. As the uncertainty continues, it may be advisable for dealers to hold a small amount of extra stock for key customers.

FINANCIAL PRESSURES Natural disasters are not the only potential threat to the consumable market.

With companies facing ever-tightening budgets, it is possible that customers will increasingly have their heads turned by the cheaper compatible products. “Customers being tempted by compatibles should be made aware that by doing so they risk getting reduced quality prints and potential premature product failure as there’s no way of guaranteeing the compatible product will work effectively or to the same standard as an original product,” says Jones.

Elmer suggests that performance will be far superior with original products. “Toner

“Poor printouts mean poor reputation and image when winning business, two vital factors in today’s tight economic climate.”

If customers are particularly concerned about costs, then salespeople can highlight methods to reduce toner consumption to save costs through improved practice.

Clients could try switching on toner save mode on their printer or using the booklet print mode. “It’s not always about buying a compatible if costs are under scrutiny,” says Jones.

ENVIRONMENTAL CONCERNS It is important to give customers all the information about the products, and promoting the environmental credentials of consumables can be a good selling point and differentiator from compatible or competitor products. Elmer suggests that fewer raw materials involved in the manufacture is preferable for the environment.

“Simplifying consumables systems is an important aspect of reducing the overall lifecycle impact of the imaging device,” she says. “The simpler the toner cassette and the fewer different types of material it contains, the lower the environmental impact in terms of manufacture and recycling at end of life.” She adds that as organisations increasingly look for ways to reduce their waste, looking at their consumable option could be a useful starting point.

There are also innovations in the marketplace that are further pioneering an increasingly green approach, with developments such as solid ink offering no mess and non-toxic ink. “For greater ease of use to less waste, the benefits of solid ink are numerous,” says Weaver, who adds that technology such as this also makes it easier for consumers as well.

With so much activity in the consumables market, salespeople will be well-advised to monitor the situation closely. Even as the Japanese crisis is brought under control, constant innovation of original consumables means it is a market that is constantly evolving, and it will be up to salespeople to report the ever-improving benefits to customers.

Poor printouts mean poor reputation and image when winning business, two vital factors in today’s tight economic climate is an integral element of the imaging system and as such is designed by the manufacturer to complement the mechanics of the print engine to deliver the best results,” she says, explaining that some of the technology involved with original toners will not be available in compatible versions.

There is also an issue with warranties if compatibles are used with original machines. “Most manufacturers will only guarantee their products when used with original supplies,” suggests Elmer. “Using compatibles could cause a problem for customers should a device break down, and could end up costing more in the long run.”

With print quality being so crucial for organisations, it is important that salespeople are able to advise their clients on the most suitable solutions. “By using original manufacturer consumables, users can be guaranteed they’re getting the best possible quality print results,” Jones says.

03 IT report

01 it update

02 it feature

03 IT report

Save the data

Technological advances and high profile data security breaches mean one thing for dealers – opportunities. Allie Anderson looks at what’s on offer in the realm of media storage

T

he influx of a huge range of data in businesses has led to an increase in pressure to maintain effective systems to store this often sensitive and confidential information. Legislation covering the use of this kind of information dictates not only how sensitive data must be kept, but the penalties associated with breaches of such guidelines.

Moreover, the widespread use of computers has led to an avalanche of

electronic documents in the office, such as emails, presentations, PDF files and spreadsheets. Email chains and distribution lists are getting ever longer, attachments larger and inboxes fuller. Failing to properly manage these documents leaves the information they contain susceptible to loss and damage. Given the business critical nature of company data, which is freely passed from person to person, it is essential that storage solutions are robust, secure and

vast enough to cope with the increasing demands placed upon them.

Digital revolution There are various trends for data storage that are becoming increasingly commonplace in commercial organisations, with one example being the digitisation of analogue assets, most notably including CCTV footage, still images such as X-rays and scanning printed and handwritten documents. >

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01 it update

Among the most common devices for storing data is the hard disk drive (HDD), which, despite being the dominant method of data storage for general purpose computers since the early 1960s, is still evolving, falling in price and growing in capacity – typically moving towards 2TB. As well as this, they are now consuming less power and emitting less noise. There has also been a switch from 3.5 inch to 2.5 inch drives, partly driven by the notebook market, which till has healthy growth rates.

Safety first When breaches in data storage security receive publicity, people become more aware of the issues and their own responsibilities. As a result, one of the biggest obstacles to selling media storage lies in convincing customers the systems are secure. Data security is not only threatened when the data is static, i.e. stored in the system, through attack from external sources such as firewalls, but also when it’s ‘on the move’.

This is a potential problem when drives are replaced or removed by engineers, placing the data stored on them at risk. Disk encryption, which can be easily enabled on many devices, renders the data unreadable – and therefore useless – without the correct authentication key. A hardware-based military strength encryption (256Bit) is suggested for external drives, ensuring data cannot be hacked into if the drive is stolen. Encryption is also important to prevent unauthorised access to information stored on back-up tapes, which can pose a potential security risk when they are sent offsite for storage, either with an office worker or dispatched using a general rather than specialist courier firm.

Dealers are advised to consider data storage as a complete offering, rather than just the storage device itself. Alongside the basic device, opportunities for crossselling and up-selling are manifold. Using a consultative approach and promoting software, installation services and product/ service bundles can enable resellers to differentiate. After sales options are an important consideration too, and dealers should ensure end-users are covered for features like configuration, migration and management training.

02 it feature

Clouding the issue A relatively unexplored area of media storage in the industry is ‘the cloud’, where, in simple terms, data is kept and managed by a third party via its own server on a ‘server farm’. The data is created and accessed on a virtual, web-based workspace. This has become commonplace in our everyday lives without us even realising – social networking applications like Facebook and online media storage sites like Flickr and YouTube are examples. However, the primary concern in adopting cloud computing remains security, again perpetuated by high-profile breaches, notably when over 100 million Sony Playstation Network customers had their

methods. Assuming the provider’s security measures are sufficiently robust – which cannot be guaranteed and relies on users’ trust – information is backed up and archived to maximise protection.

Go with the workflow Regardless of where and how an organisation stores the copious amounts of documents generated, received and shared every day, it all comes down to effective document management.

Document management systems help provide an audit trail, showing the full lifecycle of every document including every revision it has undergone and who made it, storing documents safely using encryption and backing up data centrally or offsite, enabling efficient disaster recovery. The end-to-end process therefore ought to be considered, with dealers advised to market such offerings as an entire workflow rather than a series of hardware or software solutions.

As such, data storage and management is a category dealers should be keen to embrace, not only for the lucrative initial sell but the ongoing and future opportunities it opens up. A trusted office supplies dealer will be the first port of call for many businesses looking to bring on board a knowledgeable partner to drive the efficiency of its data management – and therefore its continued growth – in the right direction.

The primary concern in adopting cloud computing remains security, perpetuated by high-profile breaches, notably when over 100 million Sony Playstation Network customers had their personal details stolen personal details, including email addresses and credit card data, stolen.

While this raises questions over the validity of the cloud, some suggest data is safer than when it’s stored via traditional

03 IT report

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01 IT UPDATE

02 IT FEATURE

03 IT REPORT

TRICKY TIMES AHEAD After a relatively brighter first quarter for the IT market, there is uncertainty about a future where innovation and promotion will be key.

Greg Allen explains more

Greg Allen, GfK senior account manager, IT greg.allen@gfk.com 0870 603 8121

D

espite small recorded growth for the UK economy in Q1 2011, the outlook for many markets appears to be one of continued uncertainty. With further upheaval in the global market and pressures on supplies, the ability of manufacturers to promote and movements on price are likely to cause more difficulties in the IT and office landscape.

With this in mind, the IT market has performed reasonably well.

With a value growth rate of 1.4% this Q1 against the same time last year, the IT market has become the largest sector in value terms, outshining even the troubled consumer electronic market. With the development of new products, advancing features and some strong promotions, IT has managed to keep its head above the surface.

One category that symbolises the developments in new technology is that of web-books. Web-books have grown by over 300% in volume terms in March 2011, compared to July 2010 when they essentially launched. This is a clear indicator that, as difficult times have fallen across technology markets, innovation is crucial to ensuring sector performance. These devices have also seen a fair drop in price, both in retail and business channels, down to an average of ÂŁ398 in March 2011. The more recent launch of windows-based web-books may well also add to this growth category.

ACCESSORY DEMANDS With regards to accessories in the IT market, we have seen a knockon effect from web-books’ growth. With docking keyboards for these devices and keyboards for the newer all-in-one (AIO) PCs helping to drive keyboard sales into four per cent volume growth this Q1 against Q1 2010. Pointing devices, however, have not fared as well, recording a volume decline of 12% over the same period. Where keyboards might be needed for these newer devices, the mice are not a necessity for its functionality. Storage devices on a portable external level have also continued to grow well with higher capacities (at least over 500Gb and up to 2Tb) fuelling sales volume growths for the storage category to 20% this Q1 2011.

Looking towards the office hardware market, with the extended promotional period running into February the multi-functional devices (MFD) saw a volume growth of 16% this Q1 2011 against the same period last year. Pricing was down 1.5% over the same period, reflecting the strength of promotional positioning and pricing on the products. This, coupled with lower ink jet cartridge prices (seeing this segment grow by 2.8% in sales volume), meant a reasonably fair position for office hardware. However, the single-function printers and scanners continue to see a drop in sales (down 25% and 13% respectively).

All this leads to the conclusion that as we approach the next two quarters with low consumer confidence and high uncertainty, promotional activity and innovation are going to be crucial to seeing any real growth.

With thanks to GfK www.gfkrt.com/uk

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