ENX Magazine December 2011 issue by ENX Magazine

IN THIS ISSUE

We Saw It In ENX Magazine

IN THIS ISSUE

ENX Staff

Susan Neimes Publisher & Editor

Ronelle Ingram Contributing Editor

DECEMBER 2011

Contributors

• Company Profile: Muratec

Page 28

• Company On The Move: Industry Analysts, Inc.

Page 44

• The Top 10 Stories of 2011 by Scott Cullen

Page 18

• MPS Is Dead: Long Live MPS by Tom Callinan

Page 22

• What’s After MPS? Becoming a Service Provider by Lou Slawetsky

Page 32

• Document, Data Security: Internal Control, Data Governance and Measuring & Managing Risk by David Anastasi Page 36

• Part of the Profit by Ronelle Ingram

Scott Cullen

Contributing Editor

David Anastasi

eDocument Sciences

Page 48

• Rebuilding Xerox Phaser 5500/5550 Fuser Assemblies by Britt Horvat Page 62 Julia Gonzales

Tom Callinan

Graphic Designer

Christina Kim Administration

Strategy Development

• Printer Tech Tip by Laser Pros

Page 69

• Free Tech Help by Smarka!

Page 70

• Display Advertisers Index

Page 58

• Products & Industry News

Page 60

• Calendar of Industry Events

Page 66

Lou Slawetsky Industry Analysts

ENX Magazine ENX Mexico & Latin America P.O. Box 2240 STE #729 Toluca Lake, CA 91610-0240

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STATE OF BUSINESS

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DECEMBER 2011

THE TOP 10 STORIES OF 2011 By Scott Cullen

t was another year of change and changes in the office technology industry and nowhere was that change more visible than with new acquisitions and at the top rungs of the ladder among the various OEMs from Sharp to Kyocera, to Ricoh, to HP. As far as trend-worthy stories, the industry remains enamored as ever with managed print services, an evolving business model that is being adopted by an increasing number dealers, VARs, manufacturers, and everyone in between. Surprisingly, coming up with 10 stories for this year’s list was a lot easier than in past years when we always found ourselves digging deep to round out the list. And now, in no particular order, the top 10 stories of 2011.

ble now is figuring out just exactly what mobile printing is because in many ways it is closely associated with the cloud. “It’s a market that’s really confusing because mobile printing is not one dimensional,” says Brian Bissett, editor of The MFP Report. “It’s everything from apps for your iPhone to serverbased architecture for the enterprise and everything in between. Related to that and one of the problems is how do you separate cloud versus mobile?” That said, Bissett adds, “The idea for delivery of applications and using the cloud for storage of documents seems to be going rapidly towards acceptance.”

1. The Japan Tsunami’s Impact on the Office Technology Industry - It was a natural disaster of epic pro-

4. Konica Minolta Moves into IT Services with the Acquisition of All Covered - IT services represents one of

portions and although the after effects of the tsunami did not create a huge chasm in the flow of office technology into the U.S. from Japan, it still had a ripple effect. We’re told that manufacturers spent loads of money not to lose market share after the event. Some manufacturers were hit harder than others mostly in the parts department—Canon for example, and to a lesser extent Ricoh. Even companies who manufacture their devices in the U.S. were affected. As Lou Slawetsky of Industry Analyst told us, “It only takes one part to not make a copier.”

the key growth areas for the office technology industry and Konica Minolta took a strong leap in that direction with the acquisition of All Covered earlier this year. Give Konica Minolta credit for branching out into what for many competitors would be considered uncharted territory. Since the acquisition, the All Covered organization has found itself in acquisition mode as well, acquiring additional IT services organizations and building the organization into a major force in IT services.

2. Managed Print Services is Here to Stay – Talk to any dealer, manufacturer or industry analyst today and you can bet managed print services will show up somewhere in the conversation. MPS has gone beyond a fad to the business model of the present and the future. Just look at the many managed print services programs from the OEMs as well as from suppliers and even the leasing companies who are getting into the act. Indeed, MPS has transcended buzz word status. Analysts, savvy dealers, and OEMs predict doom and gloom for those organizations who don’t add MPS to their services mix, so don’t be surprised if those who don’t transition into this area find themselves in the unfortunate position of watching their hardware sales continue to erode. All these announcements and investments into managed print services continue to position MPS as the hottest trend in the industry and one that is now firmly entrenched into the collective consciousness of everyone and every player in the industry.

3. The Industry Embraces Mobile/Cloud Printing and Storage – The industry and the channels are still trying to figure out mobile printing and storage in the cloud, but that’s not stopping them from releasing and developing applications that make it easier for end users to print whenever and wherever. Add to that cloud-based applications that tie in nicely with managed print services, and we are squarely in the middle of the beginning of what’s destined to be a big story in the years to come. The trou-

5. Lexmark gets serious about the BSD channel - The independent dealer channel has done wonders for many of the OEMs over the years and in just three short years, that channel—what Lexmark refers to as its BSD (Business Solutions Dealer) channel—is raising Lexmark’s profile within the independent dealer community. This is a company that has its act together and has the people, products, and programs in place to be a major force in the channel for years to come.

6. ECi Acquires Digital Gateway – It seems as if ECi is acquiring virtually every software company imaginable and one wonders if there is any end to those acquisitions, particularly with the most recent acquisition of Digital Gateway that up until now seemed like an unlikely acquisition target. However, things change and Digital Gateway is now part of the ECi family, a family that includes OMD, DDMS, LaCrosse Accelerate, Britannia, and TeamDesign among others. No wonder ECi was named to Inc. magazine’s Inc. 5000 annual list of the fastestgrowing privately held companies in the United States for the fourth straight year. 7. Nuance Acquires Equitrac – Speaking of acquisitions that make good business sense, Nuance’s acquisition of Equitrac, arguably the industry leader in print management and cost recovery software, certainly does. This may not be as big an acquisition as when they acquired eCopy, but it is an important addition to the company nevertheless and one that only continued on 19

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STATE OF BUSINESS

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DECEMBER 2011

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serves to strengthen Nuance as one of the industry’s most valuable solutions providers. Placing this acquisition in a larger perspective, many are driven by the growth of MPS and one can add to that list Xerox’s acquisition of Newfield IT in the UK and HP’s acquisition of Printelligent, a provider of managed print services. “There are too many small MPS software firms that really don’t have the resources to take it the next level and a lot are shopping themselves around either to other firms or bigger software companies,” states Bissett.

8. Ed McLaughlin Leaves Sharp – This was surprising especially when one considers how well respected Ed is throughout the industry whether it’s the dealers or industry analysts and press who have always appreciated his candor. He’s left some big shoes to fill at Sharp and at press time we still weren’t sure who was filling those. Don’t be surprised if he finds another opportunity in the industry in the near future. With his departure we’ll never know if he would have been able to deliver on his claim of a few years back at one of Sharp’s annual dealer meetings of moving Sharp into the top-tier of office technology companies. 9. Mike Pietrunti Departs Kyocera Mita for Global Imaging - Mike’s departure from Kyocera Mita after nine years was as much a surprise as Ed McLaughlin’s leaving Sharp. Whereas Ed may have left involuntarily, Mike was wooed by Global and given an offer he couldn’t refuse where

he is now responsible for acquisitions. It’s safe to say Mike has departed for greener pastures at Global where the pressures won’t likely be as intense as they seemed to be getting over at Kyocera Mita. Considering the company’s overly ambitious plan to grow by 20 percent during the next three years, that would have been quite the challenge for any business leader.

10. Drama at HP - At one time those in the office technology sector would look askance at HP and not take them all that seriously. But seriously, they’re still number one in market share for printers and in the brave new world of managed print services that counts for a lot these days. The question at press time was who was going to lead the company? Various names were being bandied about and we asked Bissett why this story should matter to those in the office technology sector. “It doesn’t directly affect [the channel], but when you have such chaos at the world’s biggest hard copy company it raises questions,” responds Bissett who adds that he’d heard there was going to be a whole new round of layoffs happening at HP in Boise. “At minimum there’s added pressure at HP for the Imaging and Printing Group (IPG) to not screw anything up and continue doing well and not lose any money because the rest of the company needs it.” u Scott Cullen has been writing about the office technology industry since 1986 and has written about many of the top stories of the year over the years. enx magazine

MPS FOCUS

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DECEMBER 2011

MPS IS DEAD: LONG LIVE MPS By Tom Callinan

s there anybody who is not an MPS expert today? Six years ago, when Strategy Development started consulting in the space, we were the pioneering consulting firm, virtually without competition. Now anybody who replaced a toner cartridge is an MPS expert. Six years ago there were a handful of companies in the country that called themselves MPS companies. Today, you cannot find a copier dealer or facilities management company; they’re all MPS companies. Sales reps don’t sell copiers, printers, or toner cartridges—even if they work for a copier company, printer company, or recharge company—they sell MPS. It seems that every end user company in the country has an MPS contract at this point. It seems like MPS has reached 100% penetration faster than the DVD, email, or the cell phone. Time to move onto the next growth strategy: MPS is dead! Then again there seems to be a busy and vocal group who are still arguing over the definition of MPS so maybe there is hope that all isn’t lost—it will just be redefined. One “research firm” has their four phases of MPS but when you read them it certainly looks like a copier company from the turn of the millennium focused on output and professional services: “Hard copy” has been redefined as MPS. That firm’s forecast of growth trajectory has MPS larger than the entire worldwide hard copy market by 2014; now that’s a growth market! The old is new again only now we call it MPS. Remember the threat from the VARs, MSPs, and who knows who else that somehow, someway were going to be better at “MPS” then the copier dealer? Guess that threat went the way of the IT networking companies that were going to put all of the copier companies out of business in the mid 90’s. Want to go to an MPS Conference? There’s one every month so book your travel and get ready to earn elite status on the airline! Oh wait, look at the sponsors and vendors…..they are the same companies that used to be in the “copier” space but now they are MPS companies. It is just phenomenal how the entire industry has transformed overnight! Do you need help transforming? Don’t worry—new experts are minted in that space every day as well; yesterday a copier sales person or a printer marketing manager and today a business guru! This MPS thing truly is magical…it imparts knowledge that most people only obtain through years of high-level executive assignments. Wait a minute: Did you know that the revenue from laser office printers is five or six times the revenue from office copiers? To make that more poignant, if your roots are in the copier indus-

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try and your service and supplies revenue (aftermarket) was $5 million before you transformed your company into MPS your aftermarket should be $30 - $35 million today, if you simply had the exact same market share in printers as copiers. To put it another way, if your copier aftermarket is $5 million per year and you are recognizing $500 thousand in MPS revenue your printer market share is approximately 2% of your copier market share ($500K/$25M). That doesn’t even take into account any associated MPS software sales. My concern for the industry is that the victory flag has come out after one lap of the MPS 500. Wait a second; maybe MPS isn’t dead after all! Do you know many copier companies that have grown by 500% in the last few years? Before you dismiss my 500% question let me explain my simple calculation. In the office space (segments 2 – 5), printers produce 2.5X to 3X the output of copiers, depending on what research report you read. If you asked 20 people that have sold MPS contracts—those that included both copiers and printers—I think you would find it unanimous that the revenue per image on a printer is 2X that of a copier (the CPP to make a print on a printer vs. a print on a copier). Simple math will demonstrate that 2 * 2.5 = 5 (2X revenue per print * 2.5X volume) and 2 * 3 = 6. Therefore, the aftermarket on printers is 5X to 6X copiers. Does that make sense? Is your “MPS” revenue 5X – 6X your copier aftermarket revenue? Close to 5X – 6X your copier aftermarket? 20% of your copier aftermarket? Are you really in MPS? Regardless of what you think at this point I am not trying to make you feel bad; I am trying to clearly show you how to measure your MPS success. Those of you that have followed my writings know that I am a practical businessperson that avoids hype or “big bang” theories, taking the much less glamorous approach of execution and logical growth (Did you read Jim Collins new book “Great By Choice?”). If you want to grow your business and you are not recognizing 5X in MPS then focus on execution rather than on hype. You can go to those MPS conferences but go because of the great networking opportunities they provide and not because you think you’ll learn something (focus on the events with the most participants not the most hype). When you do go and you run into somebody you haven’t seen in a couple of years and they tell you they are doing great at MPS, just ask them one simple question “What are your monthly aftermarket revenues from MPS?” If they tell you they manage 60 million prints (that’s 1 million a month multiplied by some fictitious 60month average contract length. 1 million prints per month at an continued on 24

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MPS FOCUS

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MPS is Dead: Long Live MPS average of $0.0235 per print—blend of 10% color and 90% B/W—means they are realizing a whopping $23,500 per month….they are a $300 thousand business. Suddenly 60 million sounds a lot more impressive, but they also neglected to answer the revenue question you asked) act a little surprised and with emphasis simply say “Per month?” I’ve played this out a dozen times (okay, now you know my game) and I get a sheepish, “No, that’s over the contract,” to which I rejoinder, “So 1 million per month?” I usually get a “Yes.” Help me to help your peers to start measuring their MPS business the way every other business is measured in the world—revenue and profits. Let’s end the bravado.

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But wait Tom (that’s me), you said your goal isn’t to make us feel bad yet you keep “piling on.” I am trying to shock you, the reader, into realizing how big of an opportunity you are missing because the industry seems caught up in more hype than I have seen since Y2K! Everybody seems to want to say they are winning the race when they’ve simply completed the first lap. Put away the checkered flag and focus on how you are going to make it around the track 499 more laps and finish at the front of the pack. There is great opportunity in MPS for you the copier dealer, or continued on 26

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So if you don’t want to be the first—the guinea pig—for some other program, talk to the experts at Strategy Development. The future of your company depends on making the correct decision, so invest in experience and not hype. For more information about our extensive consulting engagements and award winning training classes, please contact Tom Callinan at 610.527.3317 or at callinan@strategydevelopment.com.

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MPS FOCUS

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website: email:

continued from 24

I’d also state—at the risk of raising some ire—that if your aftermarket in printers is not at least equal to your aftermarket in copiers you are barely in MPS. Think about that, if you had 10% market share in the copier space and your printer aftermarket was equal to your copier aftermarket you would have 2% of the office printer market share (Since printer aftermarket is at least 5X copier aftermarket just use the equation 10%/5 = 2%). Is 2% being in the business? Maybe in Manhattan, but not in Topeka (I am writing this on a plane having just left Kansas so it seems like a good example). So MPS is not dead; hype and ego may be trying to kill it but I am a firm believer in the resilience of the dealer community and I know many will see the real opportunity in MPS and develop true growth strategies to capture their fair share. If you feel you want help in accelerating your success give me a call. Strategy enx magazine

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MPS IS DEAD: LONG LIVE MPS

virtually any industry other than the office supply companies. MPS is causing the office supply companies to lose their customers faster than cell phones eliminated the pay phone industry. The risk is not the VAR or MSP; the risk is that you allow hype and ego to cloud your perception of your actual market share in MPS. Focus on 5X and put together plans to achieve your goal. I’m not suggesting it will occur overnight, but I am saying there is no reason why you cannot achieve this goal.

Twitter @OESSolutions

Development will absolutely keep you focused on real success in MPS! Long live MPS: It’s the best strategy we have for growth, provided we don’t let it wither away. u Tom Callinan is the founding principal of Strategy Development, a management consulting firm for the technology and outsourcing space, and the leading MPS consultancy specializing in business planning, sales effectiveness, advanced sales training, and operational and service improvement (www.strategydevelopment.com). From 1998 – 2005, Callinan was an executive with IKON Office Solutions, most recently vice president and general manager of IKON’s largest business unit with a revenue of $1.4 billion. Prior to IKON, Callinan was the founder and CEO of Copifax, Inc, a copier dealership that was recognized with numerous awards including inclusion on the INC 500 list of fastest growing private US companies. Copifax was acquired by IKON in 1997. Callinan graduated with high honors from The Wharton School, University of Pennsylvania. Tom can be reached at callinan@strategydevelopment.com or 610.527.3317

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PROFILE

We Saw It In ENX Magazine

DECEMBER 2011

COMPANY PROFILE:

M uratec Focuses On The Future

ou wouldn’t think a secondary supplier of office technology would have its finger so squarely on the pulse of what’s happening in the office technology industry, but think again because Muratec certainly gets it. At its September National Dealer Meeting in Las Vegas the company outlined its strategic initiatives, announced a host of new products that will be introduced over the next three years, and educated dealers about the trends that will shape the future office technology landscape.

Muratec’s Open MPS Strategy

The Muratec Difference

“There’s a group of dealers who still see us as a fax company and have a hard time seeing us transitioning into something else,” he says. “Then we have dealers who see us as a Segment 1 lower end, true secondary partner. Then we have a group who see us as something bigger—they’re smaller dealers who may not have a specific primary line and they source some things from distribution and some things from us. We’re hoping there’s a fourth group—the MPS group—who are not traditional BTA dealers but traditional printer VARs or MPS companies.”

Muratec has done a superior job of creating a business model that makes it easy for dealers to do business with them. Plus dealers seem to respect and enjoy working with Muratec management, a team that understands the channel and the company’s role as a secondary supplier. Despite these attributes the competition for preferred secondary provider status has become a little more intense even as certain manufacturers shift their attention away from the BTA channel or stumble and fall as they try and get a foothold into the channel. HP remains the company that everyone loves to hate and other secondary suppliers such as Brother and OKI Data have either moved away from the channel or seem to have less interest in the channel than they once did. Another competitor, Samsung, has had a difficult time gaining traction within the channel for a myriad of reasons. That leaves Lexmark as the most formidable secondary supplier and one that Muratec President Jim D’Emidio concedes has put together a good program and generally supports dealers the way they expect to be supported. “They’ve got their CPC and product costs down and what they’re telling dealers is exactly what we’re telling dealers, ‘Get the MPS and the rest of it, and use MFPs to replace printers,’” acknowledges D’Emidio. “We’re doing everything they’re doing with the exception of, ‘If you need to replace a printer, go with a ‘reman’ printer; no need for a new printer because it doesn’t really matter in an MPS engagement.’” Replacing printers with MFPs that also offer scanning and scanto-email is what Muratec believes is the greatest opportunity for dealers in the future and the greatest opportunity for them to expand their engines in the field. “That is what we think is the ‘Aha!’ moment and that’s where they can place an engine and tie it into an existing copier lease,” says D’Emidio. “Now they have another hook into that customer for long-time stability.”

Unless one’s head has been buried in the sand for the past three years or so, the future of the office technology dealer channel is without a doubt MPS, and Muratec is focusing on that future. That was a large part of the message they shared with dealers in Las Vegas in September. A commitment to managed print should go a long way towards changing long-standing perceptions of Muratec, and as D’Emidio points out, there’s a variety of perceptions circulating.

Muratec’s open MPS strategy is an important element of Muratec’s strategic plan and one they believe will have broad appeal.

MFX-2596

“To have a successful MPS program dealers need assessment, remanufactured toner, remanufactured printers, and the ability to service machines and printers outside their territories, and in some cases printers they didn’t have expertise on inside their territories,” explains D’Emidio. “We also offer a full line of A4 MFPs to replace printers for scanning.”

With Muratec’s MPS program, dealers can pick and choose the components that make the most sense for their dealership. For example, some dealers already have an assessment tool, but they may need access to remanufactured toner or the ability to service printers outside their area. This program allows them to do that. For those dealers who need access to remanufactured printers and assessment tools, Muratec has that for them. It’s not a one size fits all program, but a program that can be tailored to any dealer or reseller’s business model.

Marking Your Territory D’Emidio has done his MPS homework attending industry events and talking to dealers. What he’s learned isn’t surprising for anyone following the industry. He acknowledges that comcontinued on 29

enx magazine

PROFILE

We Saw It In ENX Magazine

DECEMBER 2011

continued from 28

panies like Muratec can’t beat HP on printing while adding that HP has gone on record as saying they no longer see a future for standalone printers which are giving way to MFPs. “I was sitting at this conference thinking, ‘HP says printers are going away to MFPs,’” recalls D’Emidio. “Well that’s what we do. We can’t beat HP on printing but we certainly can beat them on scanning, especially if you have an on ramp that’s even better.” The challenge is getting to those printers. “If you get the printer, the benefit is not so much that you’re selling toner, or you have the service, the benefit is you have this printer and when they need to upgrade, you’ll be the first one they try to upgrade with,” states D’Emidio. “If HP is correct, you’re not going to upgrade it with a printer you’re going to upgrade it with an MFP.” With that in mind, D’Emidio unveiled a new strategy at the conference called “Mark Your Territory” that he hopes dealers will take seriously and implement in their accounts. The simple solution for marking their territory is stickers with dealer contact information that are placed on the devices within that account. “If an MPS rep from a competitor walks into your account and sees your sticker on a printer, they’re going to walk away,” D’Emidio told his dealers back in September. “This is your copier customer and this is as much a defensive strategy as an offensive strategy. If you don’t do it someone else will.” The feedback D’Emidio has received on this common-sense strategy has been positive. Recently he heard from a dealer who is having his service techs mark their territory and whenever the dealership gets a call about an issue with that device, the tech receives a modest commission.

“That’s pretty good from a company that 15 years ago only sold fax machines,” states D’Emidio. “[Back then] our biggest technical jump was going from thermal to plain paper. That was excitement for us.” Internal development at Muratec remains focused on monochrome, but that doesn’t mean the company is ignoring color. In October they began shipJim D’Emidio, President ping an A3 and an A4 color solution, both sourced from Konica Minolta. “We really believe from a color standpoint Konica Minolta has the best A3 color products in the market,” says Lou Stricklin, director of marketing. “We have a lot of dealers who sell Konica Minolta so obviously they’re not a target for these products, but we have a lot of smaller dealers who are looking for a strong color line and we think this is a good fit for them.” Expect to see a continued focus on A4 with the launch of three new products in this category next year code-named Sydney. The first model is a replacement for the MFX-1950. Muratec hopes this device will help them capture market share from Kyocera and Lexmark in the low-end A4 MFP category.

MFX-C2700

Product Roadmap Despite the focus on MPS, Muratec is still in the hardware business and at the conference unveiled a variety of new products that will be introduced over the next three years. In addition to the requisite home-grown products the company is expanding their A3 and A4 product offerings with a little help from their OEM-partner friends—Konica Minolta and OKI Data. Add to that a heightened focus on solutions and services and it’s obvious this isn’t the Muratec that dealers were familiar with when they were simply a supplier of fax machines and low- to midrange A4 devices. These products and initiatives should go a long way towards encouraging dealers to make Muratec their first choice when looking for a secondary product line.

The second model replaces the current MFX2550 and MFX-2570. This product will offer more aggressive hardware pricing when compared to Muratec’s existing MFX-2550 and MFX-2570 without giving up reliability, functionality, and performance. The third model is a console MFP that will reportedly feature strong imaging performance, multiple paper trays, low CPC, and aggressive hardware pricing.

Muratec differentiates their A4 machines from all-in-ones via the price point of consumables and durability of the device which translates to engine life and low maintenance costs. The intent is not to replace A3 devices, but to complement other devices in an office or small workgroup. Compact design, functionality and price will be advantages. Other enhancements include a new scanning design and a new document management solution for desktop faxing and scanning. What’s particularly unique about these devices is an MPS application that is designed for multi-vendor support. This application provides a connection to a cloud service and provides continued on 30 enx magazine

PROFILE

We Saw It In ENX Magazine

DECEMBER 2011

continued from 29

M uratec Focuses On The Future maintenance and usage information on a spreadsheet like Google docs and is collected from multiple locations. This can be accessed from the dealer’s office or the customer’s location. This application is considered a good fit for dealers who haven’t yet started an MPS program. Internal development will remain a priority as the company continues to develop A4 products to fill out their A4 line, including a device that will compete with HP devices at the extreme low-end of the market. Sydney Desktop models will be released in the second quarter of 2012. All will have modular design that will enable dealers to offer it as a desktop model, and then by adding features, build it up to a console model. The Sydney console model will help Muratec compete in the higher end of the A4 market. It replaces the MFX-2590. With this new concept users can add up to four trays. It also includes a large color touch panel, stapler, and embedded cloud-based connectivity. Meanwhile, a new engine will allow Muratec to lower the TCO. Additionally, they’re looking to increase the toner and drum yield. When the smoke clears, expect Muratec’s A3 lineup to grow by seven new models over the next three years starting with three new color models at 22-, 28-, and 36-ppm as well as four monochrome devices at speeds of 22-, 28-, 36-, and 42-ppm. The ultimate goal by broadening the line beyond those segments where Muratec has traditionally played in the past is for Muratec to be an alternative for dealers unhappy with their current primary or secondary OEM. By the end of 2012, Muratec will have released a total of 19 new products, including nine A4 mono, three A4 color, four A3 color and four A3 mono. How important are these products to Muratec’s existing dealer channel and new dealers? “For dealers who we consider our bigger dealers with a primary or two different primary lines, just because we have a couple of A3 products, they’re not going to drop a line, at least not yet,” says D’Emidio. “We’re a little unusual than your normal manufacturer. We expect dealers to cherry pick our line. The guys who want fax and low-end Segment 1, the guys who want higher end A4 may not buy the fax side of it, they have really good primary lines—Canon, Ricoh, Konica Minolta—and are not interested in our A3 offering, but the little guy that doesn’t have a primary line whose been buying NEC or Panasonic, that may be a fit for him. On the low end he may be carrying Brother and

not want us thinking we may be too expensive. We’re not at all upset when a dealer says, ‘I just want to take these two machines from you.’ Actually we’re quite happy. We’re more about having dealers because as we believe the market consolidates and other people get out of the BTA channel we’ll look more and more as a promising secondary manufacturer to more and more dealers. And that’s when we expect to expand that product line into more A3 offerings.”

It’s a Mod, Mod, Modular Design Another interesting product strategy unveiled in Vegas was a plan to develop and introduce products with a modular design that can be customized at the dealer level. This will reportedly shorten development time and allow Muratec to release at least 20 products over the next five years. The concept originated in Japan in reaction to Muratec’s expansion into the Chinese, European, and Eastern European markets. With this concept devices can be customized to each individual market. “Here in the U.S. price is important, but we’re looking to differentiate through scanning, connections into document management software, and MPS programs,” notes Stricklin. “We’re looking at it from a business solutions standpoint whereas in the Chinese market they’re looking at basic print, copy, fax functions. We are basically being told, ‘Here’s what we designed from a base MFP standpoint or base engine standpoint, what do you need to make it successful in your market?’”

Energy Efficient Energy efficiency is another area where Muratec is looking to set themselves apart from competitors. The challenge of creating more energy efficient products is meeting energy saving specifications without affecting machine performance and the user experience. Two ways that Muratec intends to make their future products more efficient is with a new fuser along with next-generation duplex scanner technology. “This is something that’s coming up more and more, particularly in bid opportunities where companies have to report their carbon disclosure rating and want to know how many of the components use recyclable materials, how responsible is the manufacturer when recycling the products or remanufacturing the toner, recycling paper,” says Stricklin. “It’s something that’s really looked at more from a European or Japan market standpoint, but we’re really seeing it as being a differentiator here in the U.S. going forward.” In addition to making their devices more energy efficient and eco friendly, other areas of focus include ease of use, network connectivity, and compatibility with mobile applications. All of continued on 31

enx magazine

FLASH REPORT

We Saw It In ENX Magazine

DECEMBER 2011

WHAT’S AFTER MPS? BECOMING A SERVICE PROVIDER By Lou Slawetsky

very imaging systems vendor, to varying degrees, is attempting to change their face to the customer by moving to managed print services and, through this, to a pure strategies play. More often than not, this is accomplished through the purchase of an existing provider. While not cheap, it is much faster (speed is everything in this market) than starting from scratch. For example, Konica Minolta purchased All Covered, a national IT services provider. In a prepared statement at the time (January 2011), Konica Minolta stated: “The All Covered acquisition will build upon Konica Minolta’s current Managed IT Services offerings and allow Konica Minolta to extend the reach of solutions and services it can offer its customers. As a result, customers will be able to count on a single source for a broad range of products and services – ranging from industry-leading MFP products, comprehensive workflow solutions to Optimized Print Services and Managed IT Services, all while delivering exceptional value and support.” Analysts in the industry were generally favorable toward the move. For example: “As the printing and imaging industry continues the trans-formation toward a more services-led model, it is imperative for market players to integrate more IT-related services as part of a comprehensive product/services package,” said Keith Kmetz, Vice President of IDC Hardcopy Solutions programs. “Konica Minolta’s forward-thinking move to acquire All Covered gives the company instant legitimacy in providing customers with a wide range of the necessary IT services/ support offerings, along with an already wellestablished roster of printing and imaging solutions. The combination puts Konica Minolta in a solid position to capitalize on this market’s transformation.” Ricoh LTD took a somewhat different approach by building a services-based business (MDS) internally through the investment of $300 million over the next few years. Success is slow but steady with the company indicating that they have begun 10 customer engagements since April, 2011. A recent press release from Ricoh indicated: “Ricoh is uniquely equipped to help customers achieve their goals through an adaptive, customer-focused approach that includes holistic, vendor-agnostic infrastructure management and a global force of 30,000 pro-

fessionals reaching 95 percent of the Global Fortune 500. Solutions address a wide variety of challenges around documents, including the growing concern of environmental sustain-ability.” Recently, the company expanded their MDS program to include their dealers through an internal program called Champs. We could touch on virtually every vendor and find some movement into the services business. Still, every one of them will tell you, if pressed, that the services business exists to help them sell (and manufacture) more hardware. Is it working? Well, let’s examine what’s happening with Xerox Corporation. The scale of their services efforts makes it easier to assess its impact on their business model. Two years ago, Xerox Corporation coughed up $6.4 billion to acquire Affiliated Computer Services, Inc. (ACS) then generating $6.5 billion in annual revenue. Many industry observers felt that the two cultures and business models were so divergent that the expansion into the services market (BPO or business process outsourcing) would meet with limited success. Many recalled the company’s acquisition of SDS (Scientific Data Services), which it eventually sold resulting in a loss of hundreds of millions of dollars. There were enough similarities between HDS and SDS to make many uncomfortable. Fast forward to Xerox’s latest quarterly (third) earnings report and we find startling differences in the performance of the Technology (copiers, printers, supplies, service, etc.) and Services groups. From the Technology group: • • • • • •

A4 Mono MFD installs DOWN 19% A4 Color MFD installs DOWN 16% Color Printer installs DOWN Mid-Range B&W MFD installs DOWN 6% High-End B&W installs DOWN 8% Digital Pages DOWN (color and B&W) DOWN 3%

Yes, there was some growth noted in the color market segment (3% high end, 40% mid-range), but the overall impact was a revenue decline of 1% in constant currency. Services, on the other hand, showed revenue growth of 5% in constant currency. So, let’s accelerate the Services business. Right? Not so fast. First, we note that the gross margin on Services is 11.9% versus 32.7% for the company overall. The lesson? The greater the continued on 34

enx magazine

DATA SECURITY

We Saw It In ENX Magazine

DECEMBER 2011

Document, Data Security: Internal Controls, Data Governance, and Measuring & Managing Risk By David Anastasi

n my first article (November) of the Document, Data Security: “Turning Risks Into Opportunities” series, the initial goal was to bring high level awareness to the threats and opportunities that you and your customers face when it comes to protecting their and your most valuable asset, information. Having looked at the high level risks and market opportunities in the first article, this month’s article will focus on three key areas (listed below) that individual organizations and their leaders (Public, Private, Government, Educational, and Non-Profit) are all responsible for with the objective of one important outcome: focusing on People, Processes and Technology ultimately creating a Control Conscience Corporate Culture™ (4 C’s). Also, then looking at creating a strategy that is highly effective, scalable and sustainable consistently creating strong value (financial, services and solutions) for its shareholders and/or constituents. Anything that impedes an organization from doing so negatively impacts the value that it provides. 1. Internal Controls 2. Data Governance 3. Measuring and Managing Risk So why is all of this so important? Simply put, it is about value! An organization’s value is built on its ability to provide services and/or solutions to its customers/constituents. If it is a for-profit organization then it also must create an acceptable financial return to its shareholders whether that be public or private. You can ask how does this impact my business and why should I spend any time or resources worrying about this? The reality is that you are already in the middle of it every day through handling documents, selling equipment that prints, copies, scans and stores data, selling software or solutions (that impact business processes, document or file transfer, and/or data storage) managing print services or other environments, accessing equipment to service it. So the real question is how are you going to let it impact you and your customers and your financial results? There are four outside entities that have strong influence on how organizations go about providing that return: Government/Regulatory, Auditors/Accountants, Law Firms and Insurance Providers (ironically they are also subject to these same issues and requirements, so they are potential customers as well). Historically, the focus of these outside entities has been on the financial reporting and systems of organizations. With the advancement of technology, regulatory changes (i.e. Sarbanes Oxley, Regulation Fair Disclosure, HIPAA, Breach

Notification, Data Privacy, etc.,) global expansion and cultural changes, the number of data breaches, leaks and identity thefts occurring and being identified has expanded exponentially. These issues are creating significantly negative financial, customer relations and brand impacts on organizations. With that, the effect of these data events on earnings for organizations and ultimately their value as a public or private organization can be catastrophic. There are important phrases that need to be recognized as major red flags. Fortunately, by recognizing a few key phrases, readers will be alerted to some very important information that will help avoid operational, legal and financial mistakes as well as allow you to talk with your customers at all levels of the organization. Focus on making the buying decisions strategic, not operational. Three of these key phrases are listed below; it is very important to understand failing to protect important data can trigger any one or combination of these events: • Material Adverse Effect – is a significant event that may negatively affect an organizations (profit or non-profit) stock price, value or operations. A material adverse effect usually signals a severe decline in profitability and/or the possibility that the company’s operations and/or financial position may be seriously compromised. • Material Weakness – a material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. • Significant Deficiency – a significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. So where does an organization start to build a Control Conscience Corporate Culture™ (4 C’s)? It must start with Tone at the Top (a phrase well known to auditors, accountants, boards, executives, attorneys as it is directly referenced in Sarbanes Oxley) – it refers to how an organization’s leadership creates an ethical (or unethical) atmosphere in the workplace. Board and management’s tone has a trickle-down effect on employees and partners. If boards and top managers uphold ethics and integrity so will employees and partners. But if boards and upper management appear unconcerned with ethics and focuses solely on the bottom line, employees and partners will continued on 38

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COMPANY ON THE MOVE

We Saw It In ENX Magazine

DECEMBER 2011

COMPANY ON THE MOVE:

INDUSTRY ANALYSTS, INC. Product Testing, Market Research, Training and Selling Tools for the Print Industry

ndustry Analysts, Inc. (IA, Inc.) opened in 1974 in Rochester, NY. In 1994, IA, Inc. opened their product test lab – Industry Analysts’ Technical Services Division (IATSD) in Fairfield, NJ. IA, Inc. offers manufacturer, dealer and customer consulting services. The firm’s CEO Lou Slawetsky began his career selling office equipLou Slawetsky CEO ment for Xerox in the 1960s. His son, Andy, President of IA, Inc. also began his career selling Xerox, Ricoh, Savin and other brands in the 1990s. IA, Inc. focuses on the dealer/reseller channel and has provided training curriculum for manufactures and dealers. They are also known for an annual study that examines every aspect of the dealer’s world by dealer size, brand, etc. Topics include hardware, service and supply margins, sales representative productivity and compensation, workflow use, closing rates and much more. Over the past year IA, Inc. greatly increased their global footprint as their online bi-weekly newsletter, The What’s Happenin Report has increased its readership by over 500% in the last 12 months. This free newsletter provides readers with the latest in industry news, product offerings and articles written by IA, Inc. staff and well-known industry contributors from the US and Europe. IA, Inc. has several subscription-based products designed to help sales people close deals.

The MFP Reliability Comparison Tool: This tool is the result of over 50,000 MFPs located at customer sites. Nearly 300 service managers representing all major brands throughout the United States provide service data to us. We have built that data into a comparative tool that allows for the creation of comparative charts, helping the sales

representative demonstrate areas where their brand is more reliable than that of the competition. This online tool is available through annual subscription.

DMO: DMO is an online service that allows sales reps to review the competition as well as their own devices. A side-by-side feature lets Andy Slawetsky, sales people compare up to four President machines at a time for either product specifications or “pros & cons” of each machine where we identify the strengths and weaknesses of over 1,200 printers and multifunctional printers. Besides hardware comparisons, DMO offers productivity analysis, product family test reports, photos, product video and a new solutions area that identifies solutions, what products they’re compatible with and what they do. Perhaps the best part about this service is that it is built and created by a partner that does not offer product awards, certifications, “stars” or anything of the sort. All testing is conducted at dealer locations and our partner is not beholden to any manufacturer, allowing them to freely identify not only strengths of the devices they analyze, but the weaknesses as well.

IA Sales Dashboard: This fall IA, Inc. officially launched their IA Sales Dashboard app built for the iPad. This app helps dealers and manufacturers ensure that their reps look the most professional, give the best presentations and are the most memorable in the eyes of the customer. Rather than discussing digital technology only to give an analog presentation complete with paper brochure handouts, a paper proposal written from a paper price book and lease rate sheet, our clients can take it to the next level, pulling up digital brochures, showing professionally developed videos and continued on 46

enx magazine

December 2011

Display Advertiser Index ACM 03 Authorized National Copystar, Konica Minolta & Toshiba Distributor for Copiers, Printers, Faxes, Supplies and Parts Phone: 800-722-7745 Fax: 800-767-9722 askacm@acmtech.com www.acmtech.com All Leasing Services 19 Repo/Offlease Copiers, Printers and Faxes Phone: 949-727-3750 Fax: 949-727-3850 www.alscopiers.com Arete Supplies We Carry All Chips for Konica Minolta Color Copiers along with Chips for Many Oce Color Copiers Phone: 408-225-5410 Fax: 408-981-5885 reed@areteoffice.com web.me.com/areteoffice www.ibuyikon-min.com

BEI Services Phone: 307-587-8446 sales@beiservices.com www.beiservices.com

Carolina Wholesale Phone: 800-521-4600 Fax: 800-356-9169 www.cwholesale.com

Collins Distributing Phone: 800-727-0884 Fax: 901-396-8614 sales@collinsdistributing.com www.CollinsDistributing.com

40-41

Color Imaging Manufacturing OEM and Aftermarket Toner Products Since 1989. Phone: 800-783-1090 / 770-840-1090 Fax: 800-783-9010 sales@colorimaging.com

Copier Careers Copier Employment Placement Phone: 888-733-4868 Fax: 800-464-3434 mail@copiercareers.com

Copier Clearance Center Buy & Sell New and Used Copiers Phone: 800-393-6355 Fax: 916-617-2742 copyclear@att.net

enx magazine

Copier Network Coast to Coast Service Extensive Canon and Ricoh Selection Phone: (510) 746-2080 www.copiernetwork.com sales@copiernetwork.com

CSI Customer Service, Inc. 34 Wholesale Canon Copiers, Remanufactured Cartridges, most popular brands. Phone: 888-889-9598 Fax:713-789-1832 anisark@csihouston.com www.csihouston.com

I.C.E. International Copier Exchange Wholesaler of Copiers Phone: 888-423-2679 www.copierpoint.com

ICS 54 ICS the Fastest Growing Provider for OEM Computer,Printer & Fax Products Phone: 954-312-3452 www.intlcopiers.com

Direct Precise Imaging Phone: 888-376-7311 www.directpreciseimaging.com

IDS-International Digital Solutions 17 Authorized Toshiba Distributor for Copiers, Printers, Fax OEM Parts & Supplies Phone: 888-372-3700 Fax: 562-921-1167 suzannecarter@idswc.com

DocuWare Corporation Phone: 888-565-5907 dwsales@docuware.com www.docuware.com

Imaging Supplies Coalition When in Doubt, Check it Out! www.ISC-Inc.org

Electronic Business Machines Copiers/Printers Parts & Supplies Phone: 800-832-6522 Fax: 859-281-6328 www.ebmky.com

Escalera Copier Moving Devices Phone: 800-622-1359 Phone: 530-673-6318 Fax: 530-673-6376 www.escalera.com

Express Sales Phone: 877-777-5001 www.escorp.biz

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FMAudit Remote meter reading and Managed Print Services Phone: 573-632-2461 www.fmaudit.com

Frontier Imaging 24 Distributor of Copier, Printer & Fax Supplies Phone: 888-530-8811 Fax: 310-898-2788 www.frontierimaging.com Greater Philadelphia Equipment Co. Copiers, Accessories, Fax Options & Print Controllers Phone: 215-788-7111 Fax: 215-788-4445 gpec1@verizon.com

Impact Technology World Class Copier Remarketer Phone: 866-848-4900 www.offleasecopiers.com

Industry Analysts Inc. Product Testing Specialists Phone: 585-232-5320 Fax: 585-454-5760 www.industryanalysts.com

Intercom Exporting Inc Minolta Copiers, Parts and Supplies Phone: 800-960-1119 Fax: 954-978-2412

ITC Phone: 877-933-5558 Fax: 610-430-1300 www.itcsupplies.com

ITEX 2012 Las Vegas, NV The Mirage April 18-19, 2012 www.itexshow.com

Kalon Leading Manufacturer of Premium Compatible/Remanufactured Laser & Inkjet Cartridges Phone: 626-839-1200 Fax: 909-382-9980 sales@kaloncorp.com

Jamex Copier/Printer/Fax Vending Applications Phone: 800-289-6550 Fax: 607-257-1139 www.jamexvending.com

Lyra MPS Forum Rancho Mirage, CA Rancho Las Palmas Resort & Spa January 25, 2012 www.lyra.com/symposium

Mambo Trading Distributor of Copier, Printer, & Fax parts and supplies. Phone: 877-626-2676 Fax: 562-663-9037 ask@mambo-trading.com

Mars International Wholesaler of Pre-Owned Copiers Phone: 866-866-MARS Fax: 973-777-5889 www.marsintl.com

Midwest Copier Exchange Used Copier Wholesaler Phone: 800-863-3693 www.midwestcopier.com

Managed Print Services Association Contact: Joe Barganier Phone: 614-882-4121 buckeyefenn@att.net

MSE Phone: 800-418-4968 (US-East Coast) Phone: 888-561-4541 (Canada) Phone: +31-36-522-2601 (Europe) www.mse.com

Muratec Managed Document Services Phone: 469-429-3409 www.muratec.com

MWA Intelligence, Inc. Phone: 800-875-2371 sales@mwaintel.com www.mwaintelligence.com

Nation Wide Repair Service Complete Office Equipment Repair Service Phone: 866-655-8676 Tech Support: 800-798-1814 www.nwrsinc.com

Nectron Phone: 281-240-2222 Fax: 281-240-0468 info@nectron.com www.nectron.com

Niche Equipment Office Machines & Supplies Distributor Phone: 630-629-9220 Phone:877-446-4243 Fax: 630-629-6790 www.nichee.net

N&L Gobal Over 1,000 Brands of Toner Cartridges & Inkjets Stored in our Warehouse Phone: 877-595-7955 Fax: 626-579-5569 sales@nlglobalco.com www.nlglobalco.com

NSA Eco-Certified Quality Toner, Packaging, Product Diversity and Multi-location Distribution Phone: 866-670-2345 www.nsatoner.com

NuWorld Business Systems 12 - 17 Copier, Printer, Fax & Business Machine Supplies Phone: 800-729-8320 Fax: 800-829-0292 info@nuworldinc.com www.nuworldinc.com OES Solutions Distributor of Copiers, Copier Parts, and Supplies Phone: 317-867-4999 Phone: 877-637-1240 Fax: 317-867-4920 info@ oes-solutions.com www.oes-solutions.com

Office Land OEM Parts for Copiers and Printers Phone: 818-778-0100 Fax: 818-778-0101 www.officeland.ws

Parrot Distributing Authorized Panasonic Panaboards and Printers Wholesale Distributor Phone: 800-451-3336 Fax: 423-855-1434 www.parrotdistributing.com

Parts Drop Copier Parts, Supplies, & Tech info. 201-387-7776 www.partsdrop.com

Prinko Factory Direct Wholesaler in USA USA: Phone: 626-389-8988/626-389-8989 Fax: 626-389-8986 sales@prinko.cn http://www.prinko.cn China: Phone: 86-756-8526991 / 8529662 Fax: 86-756-8526993 sales@zhprinko.cn http://www.zhprinko.cn

Printer Essentials Remanufacturer of Compatible Copier, Printer, and Fax Supplies. Phone: 800-965-1180 Fax: 775-850-2630 www.printeressentials.com

Q2 Americaâ&#x20AC;&#x2122;s Fastest Growing Independent Supplier of Copier Parts and Supplies Phone: 888-826-2576 Q2products.com

Recycled Parts Save 40 to 70% on Ricoh & Shanrp Parts Phone: 661-964-8568 scott@recycledparts.us www.RecycledParts.us

Ross International Buy and Sell Used Copiers Phone: 800-240-7677 Fax: 973-473-8800 www.ross-international.com

Seintec Phone: 909-869-0730 Fax: 909-869-0736 sales@ziprintimage.com

Strategy Development Phone: 610-742-4701 woodard@strategydevelopment.com www.strategydevelopment.com

Supplies Wholesaler 74-75 The Cartridge Experts Phone: 866-817-8795 sales@SuppliesWholesalers.com www.SuppliesWholesalers.com Toshiba Copier / Print Manufacturer Phone: 800-GO TOSHIBA www.toshiba.com

Uninet West Coast: 424-675-3300 East Coast: 631-590-1040 sales@uninetimaging.com www.uninetimaging.com

United Supply Wholesaler of OEM Imaging Supplies Phone: 866-212-5884 Fax: 818-885-0511 sales@unitedsupply.com

Wal Group, LLC Factory Direct Wholesaler of Premium Laser Toner Cartridges Phone: 877-368-7788 Fax: 626-336-7077 sales@walgroupllc.com

enx magazine

Product & Industry News Uninet Absolute Black Toner & Components for Xerox WorkCentre 4260, 4250 MFP Los Angeles, CA - UniNet proudly announces the launch of Absolute Black® toner and smartchips qualified for use in the Xerox WorkCentre 4260, 4250 MFP printer series. Xerox’s newest high speed, monochrome multifunction printer, the WorkCentre 4260, is a workgroup device targeted for high volume printing applications. Rated at 55 ppm, this multifunction printer comes fully loaded with a color touch screen, duplex document feeder, 80 GB hard drive and duplex capability as standard features. The base model does not include faxing ability, but it does come on the 4260/X and XF models. Supplies include the toner cartridge rated at 25,000 pages (USD$149) and the Smart Kit drum cartridge which is rated at 80,000 pages. This printer is based on the WorkCentre 4250 which has a good work history. They also utilize the same supplies. UniNet introduces toner and the chip which comes with the connector already attached so no time is wasted soldering the connector to the chip. For further information, please contact UniNet at + 1 (424) 675-3300 or visit www.uninetimaging.com. u Toshiba Unveils New Mobile Print Solution from Drivve Drivve Print Mobility Manager Easily Interfaces with Existing Print Management Systems IRVINE, Calif., (October 17, 2011) – Toshiba America Business Solutions, Inc. (http://copiers.toshiba.com), today announced Drivve Print Mobility Manager—a driverless print solution for users of mobile devices such as smartphones, tablets, netbooks, and laptops that allows for greater business productivity and convenience. With no need for drivers, users can simply send their documents to print through the Mobility Manager by e-mail, uploading them to the Web or directly from their web-enabled mobile device using a Drivve Print app. Documents can be printed directly to a device or when integrated with virtually any pull printing solution routed to any device with the appropriate user credentials for secure release. “We’re proud to be able to add the Drivve Print solution to our portfolio,” said Joseph Contreras, director, Product and Solutions Marketing, Toshiba America Business Solutions, Inc. “Recent statistics show that more than 20 percent of information workers spend three hours a day using smartphones for work. Drivve Print provides the flexibility needed to conduct business and print anytime, anywhere without being tied to the office printer.” Because security is a critical feature of any mobile printing solution Mobility Manager verifies user credentials before processing any print request, so users can submit documents from within or outside the company network or physical location with absolute peace of mind that they are secure. Mobility Manager also checks all documents for viruses and prevents unregistered users from accessing the system. This is imperative in the effort to avoid threats from e-mail spam. Drivve Print Mobility Manager will be available through Toshiba Business Solutions offices as well as independent Toshiba dealers. For more information about Toshiba’s document delivery solutions, please visit http://copiers.toshiba.com/usa/software/document-delivery/index. html. For more information, please visit www.drivve.com. For more information on Toshiba visit www.copiers.toshiba.com. u MSE Releases Industry First 40,000 Page Cartridge for The CE390X (for M4555 MFP) VAN NUYS, CA - Micro Solutions Enterprises (MSE), the industry leader for Intelligently Re-EngineeredTM cartridges, continues its rapid release of products to bolster its already market leading offering of extended yield cartridges under its MPS engineeredTM sub brand. Luke Goldberg, SVP MSE Global says of the release; “ There is no question that this printer will be heavily placed in larger enterprise installed bases as a key segment 4 MFP which means that many MPS providers will, and have already started to manage these devises. To date the only option for consumables have been high cost OEMs which hinder the profitability of managing these. Now, not only did we shorten the OEM window of opportunity to have 100% share on the standard model, but a 40,000 page offering that will offer among the lowest CPP of any extended yield model we have ever released. This cartridge will be a huge advantage for our dealers selling CPP and MPS not only from

enx magazine

December 2011 a cost perspective but because only MSE is really capable of creating a consistently performing cartridge due to of our unique technologies. At 40,000 pages tremendous wear is taking place on all critical parts which makes our patented technologies and test protocols indispensable.” This is the 7th MPS engineeredTM release from MSE in the last 120 days. More models are currently under development. For more information visit www.mse.com. u ECi Connect Conference 2011 a Huge Success Business software provider hosted more than 800 attendees Fort Worth, TX — Friday, November 11, 2011: eCommerce Industries, Inc. (ECi), a leader in industry-specific information technology solutions, today announced that Connect Conference 2011 was an all-around success. The national conference for users of ECi’s business solutions was held at the Renaissance Worthington hotel in downtown Fort Worth, Texas, November 1–3. More than 800 attendees from eight countries participated, as well as 43 vendor partners of ECi. Connect Conference 2011 was a new venture as sessions were provided for all the business sectors ECi serves, rather than focusing on a single industry. “Everyone involved with this conference had a great experience,” said Ron Books, President and CEO of ECi. “It was a huge success for our customers, our staff and the partners who participated. The theme was ‘Educate, Collaborate, Inspire.’ Our goal with this conference was to ensure our customers left feeling inspired and energized to leverage new technology in their business. I think we accomplished that.” Connect Conference provided attendees in-depth training on their specific software and also a chance to learn about solutions that integrate with their software. Additionally, many attendees commented on how much they enjoyed meeting not only fellow users of their particular software, but also users of the other solutions ECi provides. “I think our customers were really amazed and delighted to discover the huge community of which they are a part,” continues Johnson. “ECi is now planning our next national conference for 2013,” concludes Books. “This successful collaborative approach proves that business of all sizes and industries can learn from each other. We expect Connect 2013 to be even better.” For more information, email info@ ecisolutions.com, visit www.ECiSolutions.com, or call (800) 959-3367. u DocuLex Archive Studio Software Certified for Electronic Healthcare Records (EHR) Meaningful Use SLI EHR certification seal represents that DocuLex document management solution has been tested and certified for use by healthcare providers Winter Haven, FL - November 10, 2011 - DocuLex Inc., creator of award-winning, business-ready document management software, announced today that it has achieved the ONC-ATCB Certification Seal for its Archive Studio WebSearch Document Management Software. The Seal represents that Archive Studio has been tested and certified for use by healthcare providers seeking to adopt and successfully demonstrate “Meaningful Use of Certified EHR Technology”, to qualify for incentive funds under the American Recovery and Reinvestment Act (ARRA). The Seal indicates that the DocuLex Software Suite has passed a series of tests to prove compliance with the EHR technical standard as required by the Department of Health and Human Services (HHS) Secretary. Stated David Bailey, DocuLex President, “Adoption of better document management systems by healthcare providers for patient records has been an increasing trend over the last few years based on government incentives and compliance issues. This certification means that our software met the applicable criteria adopted by the Secretary of Health and Human Services. It is approved for use by healthcare providers for the secure management, storage and retrieval of valuable healthcare records. By implementing the Archive Studio Document Management Software Suite, healthcare organizations can easily integrate our software module with their existing practice management software for a complete EHR system. We are proud that our software solution passed all tests for certification without any adjustments necessary. This is testament to the quality document management we can provide healthcare organizations, and we have many successful implementations in place to date.” For additional information on DocuLex Archive Studio visit www. doculex.com. u

Product & Industry News DPI releases the USA made compatible Xerox WC 7425/28/35 and HP 4015 32k Yield. Direct Precise Imaging continues to lead in new development with the release of the USA made compatible Xerox WC 7425/28/35 Colors and also the MPS preferred USA made compatible HP 4015 32k yield toner. We are currently working on the Dell 5130, Brother DR-310, Lexmark C-540 and Lexmark X-792 colors. DPI products are 100% manufactured, tested and packaged in the USA and backed by superb technical support and customer service. DPI offers same day shipping, no minimum order requirements, blind drop shipping is available and we have one of the largest selections compatible toner cartridges. Ask about our FREE SHIPPING offer and Empty Toner Cartridge Buyback Program. For further information and monthly specials visit our new website at www.directpreciseimaging.com or call (888) 3767311. u Canon U.S.A. Launches imageFORMULA P-215 Personal Document Scanner for the Mobile Image Capture Market New imageFORMULA P-215 Adds to Canon’s Line of “Scan-tini” Mobile Scanners Designed to Meet the Demands of a Growing Marketplace LAKE SUCCESS, N.Y., November 15, 2011– Canon U.S.A. Inc., a leader in digital imaging solutions, today announced the imageFORMULA P-215 Personal Document Scanner. Expanding on Canon’s award-winning imageFORMULA product portfolio, the P-215 personal scanner’s compact size and high-quality imaging bring sophistication to mobile information capture, storage and collaboration. Its innovative design and excellent value make it ideal for use by “road warriors” and office users looking to improve personal efficiency and productivity. “The Canon imageFORMULA P-215 Personal Document Scanner is the latest addition to Canon’s growing line of mobile scanning products, including the successful P-150 Scan-tini personal document scanner,” said Jim Rosetta, vice president and general manager, Imaging Systems Group, Canon U.S.A. “The combination of simple use, highimage quality and a built-in card scanning capability in such a compact footprint make this solution ideal for office users and mobile professionals in healthcare, financial services, government and other areas looking to take document capture beyond the walls of the office to the convenience of any location.” The new Canon P-215 personal scanner reflects Canon‘s imageANYWARE capabilities, helping to create a flexible corporate culture, allowing employees to work virtually any time or anywhere. The P-215 measures only 11 inches long, weighs just over two pounds and incorporates an automatic document feeder (ADF) in a sleek design. To complement the ADF, this scanner also includes an integrated card scanner, capable of handling plastic ID cards, driver licenses and embossed cards. Using electrical power via a single USB cable, the P-215 scanner can scan a batch of up to 20 documents at its maximum scanning speed of 15 pages-per-minute (ppm)1 in color or black and white and yet still easily fits into a briefcase for portable and mobile users. For exceptional image quality, the scanner also includes features such as Character Emphasis and Auto Resolution to improve the legibility and clarity of hard-to-capture documents. The Canon P-215 scanner launches Canon CaptureOnTouch Lite immediately upon connecting to a PC. This “Plug-and-Scan” capability allows users to initiate scanning without installing drivers or applications. The scanner is also bundled with CaptureOnTouch, which enables users to scan directly to select cloud applications such as Evernote, Microsoft SharePoint, and Google Docs, further improving accessibility to information and collaboration.2 For added convenience, the P-215 incorporates Windows ISIS / TWAIN drivers and a Mac TWAIN driver (industry standard interfaces for seamlessly linking applications and scanners) for easy integration with third-party document capture, document management, or Enterprise Content Management (ECM) applications and easy device sharing between Windows and Mac users. The new imageFORMULA P-215 personal document scanner is available immediately through all authorized Canon resellers for a manufacturer’s suggested retail price (MSRP) of $325.3 For investment

December 2011 protection, eCarePAK options are available from Canon. eCarePAK extends service beyond the initial one-year limited warranty period, saving on costs associated with post-purchase maintenance and maximizing uptime throughout the product life. For more information visit www.usa. canon. u GreatAmerica Deploys Info-Zone.com 2.0 (Cedar Rapids, IA) – GreatAmerica Leasing Corporation announced the release of Info-Zone.com 2.0, a significant upgrade from its first generation Info-Zone.com website. The site is an exclusive online Dealer/Distributor portal that automates credit applications, autofills forms, and provides customized reports to help manage customer bases and identify sales opportunities. “Our deep investment in an easy and useful online experience was driven mostly by our customers,” said GreatAmerica Executive Vice President and Chief Operating Officer David Pohlman. “I believe we’ve successfully combined the business savvy of our Dealers/Distributors and the innovative minds of our GreatAmerica teams to give our customers a competitive advantage.” The project engaged over 600 dealer/distributors in beta-testing, many of whom added new features to the upgrade. The new site, which is compatible with iPAD® and Android® mobile tablet devices for online application completion, also features a customizable dashboard that helps users get important information quickly. Other upgrades include security enhancements, improved navigation, pricing calculators, and greater flexibility in quoting and document creation. The site communicates with major ERP systems such as Digital Gateway’s e-automate, OMD, and LaCrosse for automatic meter uploads/downloads and data comparison. This reduces administration expense and improves billing accuracy. Data from Tigerpaw, Compass, Sales Chain, Falcon, MWAi, and CorsPro can be received by the GreatAmerica Vendor Billing Services team. For more information visit www.greatamerica.com. u Parts Now Announces December Repair Technician Training Schedule Middleton, WI - Parts Now announces two series of laser printer repair classes designed to maximize learning for technicians of varying skill levels. Registration is now open for December courses based in Van Nuys, Calif., and Parts Now headquarters in Middleton, Wis. “Designing courses to suit the experience level of the technician ensures that our students get more out of their time in the classroom,” said Steve Geishirt, Parts Now Director of Training. “New technicians get a solid understanding of image formation along with experience on the most common printers and problems, so they’re prepared to handle any situation in the field. With experienced technicians, we can very rapidly cover many machines, so they get the latest information on the new technology that requires new skills and knowledge.” The upcoming courses include: Advanced Level Monochrome & Color Printer Repair (Van Nuys, Calif.) In just two days, on December 5 and 6, experienced service technicians can gain hands-on exposure to 15 of HP’s most popular monochrome and color business class machines. Advanced Technician Training is agreat way to keep technicians with 3+ years of experience current on the latest technology, common failures and troubleshooting techniques on the machines they encounter every day in the field. Model Specific Training for Newer Technicians (Van Nuys, Calif.; Middleton, Wis.) Parts Now has added multiple days of model-specific training suitable for new and experienced technicians, covering many workhorse HP printers from the LaserJet 4000 series to the newer Color LaserJet CP4525 and CP4025 series, and even the LaserJet 9000 and M4345 series. These courses cover printer theory plus kits, menus, teardown and common break/fix info. Designjet Fundamentals addresses multiple Designjet models while teaching on the Designjet 500/80, 5000 and 4500 with hands-on teardown to learn these units’ new design, function and quirks. To learn more about the schedule, curriculum and pricing, visit www.partsnow.com or call Kathy in Parts Now Training Support at 800-886-6688, x1127. u To Read the complete unedited versions of Press Releases submitted each month, please visit www.enxmag.com. u enx magazine

TECHNICAL TIPS

We Saw It In ENX Magazine

DECEMBER 2011

Rebuilding Xerox Phaser 5500 / 5550 Fuser Assemblies By Britt Horvat

he Phaser 5500 and the newer Phaser 5550 both share the same “Maintenance Kit” (109R00731). The key component in that kit is the Fuser Assembly. Nowadays there are good aftermarket parts available to rebuild these fusers, so it’s time to learn how they come apart. The Phaser 5500 / 5550 print engines are very similar in many ways to the C123 style copiers, although for some reason the fuser module is a totally different beast. Nothing in the fuser actually crosses over to the C123 copier’s fuser except for the drive gear. So far as we’ve seen, Xerox only spares this fuser module as part of the “Maintenance Kit” which also includes the Transfer Roll (BTR) and 15 Feed Rolls (enough to replace the feed rolls on trays 1-4 and also the HCF tray 6). That kit’s part number is 109R00731 for the 110 volt version and 109R00732 for 220V version. They sell for around $500.- retail. There is plenty of room to do well on these.

know the condition of the lamps and thermostats in the unit you’re working on. If all 3 lamps measure “no continuity” that is a sign that one of the two thermostats must have blown due to an overheat and you’ll want to replace the culprit and at the same time watch out for reasons the fuser might have overheated (check Phaser 5500 Fuser Assembly the two heat roll thermistor positions and look to make sure the thermistor’s faces are clean and in contact with the heat roller’s surface). Let’s start by getting oriented as far as what is meant by “top & bottom”, “inside & outside”, and “front and rear ends”. Refer to Photo #1.

PROCEDURE:

Now… let’s see how one of these things comes apart.

One thing I like about this fuser is that most of the screws are the same kind as one another… (5.5mm / #1 phillips, machine thread). There are only 6 exceptions. First there are 3 which have blue-heads. Don’t touch the blue-headed screws until you’re instructed to, because they help keep the structural integrity of the assembly together. Then there are 3 screws holding the Press-Side Exit Guide on its metal plate. Those should never be touched as they Orientation are factory-set. Those three will either be red-headed 5.5mm nut-drive types of screws, or on other fusers we’ve seen, they may be #1 Phillips-head screws with washers under them (in that case they are not 5.5mm at all). All you’ll need as far as tools goes are a 5.5mm nut driver, a #1 phillips head driver, & a small pair of needle-nosed pliers or a spring-hook.

1. Remove the “Outside Cover”. It is held on by two screws; one at either end of the fuser. Then release a little hook at the bottom of the rear end (see Photo #2). The two green fingerpulls come right off along with this Outside Cover so watch’em.

Before you begin you may want to measure the 3 heat lamp circuits to Photo #2: Hook for Outside 62

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2. Remove the Press Roll Shutter (the piece with all of the graphics and warnings on it) by lifting the green jam clearance lever near the rear end of the “Pressure-Side Exit Guide” (see Photo #3a). Keep your hand on the Press Roll Shutter… it will unlatch in the middle and then it can shift slightly to the rear to dismount from 3 mounting places on the frame (see Photo #3b). Watch carefully because there is a little spring on the center mounting peg which tensions the shutter… that spring is not captive and can fall right off now. Later, during reassembly, you’ll want to take care that the spring’s sharp pointed end doesn’t poke into the surface of the new pressure roller. continued on 63

TECHNICAL TIPS

We Saw It In ENX Magazine

DECEMBER 2011

continued from 62

3. Next you’ll move on to the pieces underneath the Press Roll Shutter (refer to Photo #4). Start by removing the Press Roll Thermistor’s dust cover / mounting plate (1 screw) and disconnecting the Press Roll Thermistor’s connector at the rear end. You can then remove the 4 screws which hold the “Pressure-Side Exit Guide” and remove it (the Press Roll Thermistor can remain hanging on this piece).

Photo #3a & 3b: Removing the Press Roll Shutter

4. With the Pressure-Side Exit Guide out, you can reach the 4 screws to remove the “Heat Roll Stripper Assembly” (see Photo #5). Once it is off, you can replace the 5 “Heat Roll Picker Fingers” and their springs.

Photo #4: Removing the Pressure -Side Exit Guide

5. Now to remove the “Inside Cover”: First remove two screws from the inner face (one near either end of the fuser, see Photo #6). You will then need to pull out the fuser lamp connectors and the wire nut from the front end of the fuser so they are out of the way. Now with a little jiggle, upwards near the rear end, the cover can be lifted off. 6. Flip the fuser over to work on the two lower entrance guides (refer to Photo #7). The PressureSide Entrance Guide is held on by the 2 screws nearest the ends (there are also 3 screws which you should NOT touch as they are set at the factory for the correct position of the pressure guide. On some fusers these 3 are red-headed, but not always. If you loosen them on accident, you will want to reassemble them as close as you can to their original positions (the screw marks on the plastic will help with that). When you remove the guide, be careful at the rear end where there is a fragile grounding tab tucked under the frame, which makes direct contact with the outer surface of the press roll. 7. The Heat-Roll-Side Entrance Guide comes off with two screws (refer to Photo #7 again… nearer to the bottom of the photo).

Photo #5: Removing the Heat Roll Stripper Assembly

Photo #6: Removing the Inside Cover

8. You’ll be gunning for the Fuser Heat Lamps next (one single lamp and also a double lamp assembly). Start preparing by disconnecting the lamps on the front end (white connectors). You’ll also want to remove the black plastic piece from near the lamps on the front end (1 screw) to give yourself more room to work with the connectors later. 9. Next remove the Rear End Lamp Bracket. For this step, you’ll need to remove 3 specific screws… the 1st one is near the

www.laserprinterparts.com W EST C OAST P LATEN

pressure roll, right next to a blue-headed screw (don’t touch the blue-headed screw yet). The 2nd screw is right next to the continued on 67 enx magazine

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TECHNICAL TIPS

We Saw It In ENX Magazine

DECEMBER 2011

continued from 63

Rebuilding Xerox Phaser 5500 / 5550 Fuser Assemblies 11. You’re getting close now. Take note of how many threads of each pressure screw are showing above the holes they screw into and then release the two pressure screws. Set them aside and take care not to lose the springs, nor the metal washers which were under the springs.

Photo #7: Removing the Pressure-side Entrance Guide & the Heat-Roll-Side Entrance Guide

lamps’ ceramic ends, and the third screw is near the Double Idler Gear (but not the one closest to that gear). See Photo #8 for the locations of the 2nd and 3rd screws.

Now the Pressure Roll Assembly along with the metal plate can pivot all the way up until it is resting safely away from the heat roller. You can then lift the Pressure Roller Assembly out of its cradle and the Heat Roll Assembly can likewise lift out of its cradle. 12. Install your new Fuser Heat Roller, Pressure Roller and Picker Fingers and reassemble everything. Pay special attention to rerouting the wiring and refastening any wire clips.

This will loosen up the lamp bracket. There is a lot of wiring to contend with. Take time to study how the wires are routed… it’ll help you at reassembly time (refer to Photo #9). At the rear end, the When you’re done and your beautiful lamps terminate as pins in the main fuser newly refurbished fuser is in place in the connector. It would be tricky to remove machine, you’ll want to reset the those heat lamp pins from the connector Maintenance Counter (and therefore the unless you have the right Pin Removal Photo #8: 2nd and 3rd screws counters for the fuser, feed rolls and for the Rear Lamp Bracket Tool. So, to get you enough slack to slide BTR simultaneously). the heat lamps all the way out, you will want to release the black return wire Resetting the Fuser Counter (Maintenance Kit which goes to the thermostats (it has a spade-lug on it… here is where a pair of needle-nose pliers will be a good tool to have). counter reset): Now go back to the front end and release the 3 lamps from their The Fuser is reset from the control panel. From the Main Menu, bracket and very gently draw the 3 lamps out through the rear select “Information” and press ‘OK’, then select “Supplies end. The front end connectors barely make the turn and barely Info” and press ‘OK’, then select “Reset Fuser Life” and press fit through the opening of the heat roll but they will go if you ‘OK’ again. Finally press “Reset Fuser Life NOW” and press ‘OK’ one more time. That will reset the are gentle and patient. Fuser Counter as well as the Transfer Roll counter and all of the Tray Page 10. Remove the long pull-springs from counters (feed roll counters). the metal guide plate (first notice how they are hooked on both ends because That’s it! Happy fuser repairs. Catch later it does not seem all that obvious). you again next month! u You can use a spring-hook or the needlenosed pliers. Be very careful with the metal guide plate now as it can bump up against the surface of the heat roller and Britt works for The Parts Drop, a comcould potentially damage it. OK. Now pany whose primary business is providyou can stand the fuser (what is left of it) ing parts, supplies and information for such that the remaining frame with the Xerox brand copiers, printers and fax thermostats attached to it is facing down, machines. You can find more informaand remove the 3 blue-headed screws and Photo #9: Wire Routing. tion on their website the metal frame piece which they secure. www.partsdrop.com. There’s a comlisting of past articles under contributing writers on the w w w . l a s e r p r i n t e r p a r t s . c o m plete ENX website (www.ENXMAG.com) if you’d like to read more about Xerox brand office equipment. W EST C OAST P LATEN

enx magazine

TECHNICAL TIPS

We Saw It In ENX Magazine

DECEMBER 2011

TECH HELP Subject: Aficio 2060 Question: An Aficio 2060 with sc495-toner recycle error. The waste toner bottle is nowhere near full. I considered taking the assembly apart, but access is a nightmare. Any ideas? Answer: Replace drive pulley (AB03 0458 Pulley - 28Z) if the toner collection coil is clogged. If the toner collection coil sensor is unplugged, replace both push switches on the bottom toner recycling system, which is above the paper feed unit. Answer: Pull the recycling unit from the rear of the machine and clean the sensor and the toner which is packed into the tubes keeping the auger from turning freely. Answer: Usually it is the sensor at the top of the waste toner auger (back of the machine) that monitors it turning is covered with dust. If you think about it you realize that charged toner is going through this auger making the unit into an amazing dust magnet. I can’t help but wonder then why we would use a photo interrupter in an assembly such as this. Answer: It was probably designed by the same people who put a photo sensor in the top of the waste bottles on the older IR series of Canon. GOOD thinking there boys!! Question: I replaced both sensors, problem solved. Thanks guys.

Subject: Xerox M20 Question: Light copies but prints look good. Customer loves the machine and wants it repaired. Cleaned the optics—a no go. I’m getting ready to order a laser-scanner unit. If anybody wants to stop me with another suggestion I would appreciate it! Thanks in advance. Answer: Did you try taking apart the scanner assembly and clean the mirrors inside of it. There are several mirrors inside and it does come apart. Answer: I might be thinking of the 5530 (Samsung 5115 or 6320 is same as M-20) but as I recall, I tried disassembly and got real nervous because of those exceedingly flimsy, fragile lamps. You can probably get a good used CCD/CIS from Parts Drop if you do break it. Answer: If the prints and reports are good it is not the LSU. This is a SCX6320. Not to sound stupid but is the toner save mode on?

Question: I just cleaned the #1 mirror I could access. As I stated prints look good; only copies are an issue. Don’t want to risk ripping open the scanner unit and the customer is willing to buy whatever it takes to fix it. This being the case, what would you guys go with? Answer: The scanner unit has little slots around the sides— put a small screwdriver in the slots and turn, and the whole top will pop off. It will still be connected with wires but you can access the lens and mirrors. Never broke a bulb on one. Answer: Depending on the status contract, I would have a spare “ELA HOU-CCD MODULE JC96-02759B” on hand. Tear down the one in the machine and clean it. If it broke I would change with the new one. About 1 out of 10 breaks. I would change the unit and clean the old one for spare emergency. The part number for Samsung is most likely the same part number on Xerox. If the scanner tears off, it is NOT as hard as you may think. The real important part is do not damage the flat ribbon as in all machines these days. I can tear one down and clean and install in about 15 mins. I would get the book. Answer: If you’re already at the buy point, what’s the risk? Tell them, you’ll try, with no guarantee. I’ve cleaned a number of them. Just take off the holders for #2/3 mirrors and that gets you in with a q-tip. Ozone has probably got them fogged up. Charge for every second of labor! Answer: If you don’t feel comfortable tearing the scanner apart, try doing a shading adjustment in TECH mode. I have had pretty good success with light copies just doing a normal scanner cleaning and then going into tech mode and doing the shading adjustment. Answer: I just cleaned one. Do them every so often. On this one I saw a plastic part fell off. I put it back together and the sides of the copies have blank and black streaks. 2 more times apart and I used black tape over the side and rear clip and cutout holes and slots. Almost perfect. Don’t know why this time it was so much trouble. Make sure you have the time in case. This time I didn’t, so it made it worse. Customer hit with extra 30 minutes for the trouble. Good luck. Answer: I mentioned this before and got this from someone else here. If you can’t get it running with the shading adjustment from a white sheet, do it with a black or dark sheet on the glass; it will give a much darker copy. Question: Thanks for all the tips guys. I’m ordering the unit today but will attempt a cleaning before replacement.u

I would say get a new CCD-scan unit if anything. They often do not survive tear down for cleaning. Did you tear it down or just clean the #1 mirror?

www.laserprinterparts.com W EST C OAST P LATEN

enx magazine

Tips appearing in this section are reprinted courtesy of Smarka! The Copier Tech’s Info Source. Tips are randomly selected from submissions emailed to Smarka! Smarka! and ENX Magazine make no guarantees as to the accuracy of tips presented here. Email your tips to Tips@smarka.com. All tips become public domain.

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