Erik Cagle
Channel Insight
Helping Dealers to Win Now While Preparing for the Future Essential to Konica Minolta’s Game Plan
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echnology in and of itself is not an elixir to successful business. If it doesn’t address how end-users interface with technology and the manner in which they expect it to facilitate their processes, then technology becomes that shiny object that carries a hefty price tag but doesn’t translate in a practical manner. That’s what makes the Konica Minolta value proposition so intriguing. Sure, the manufacturer boasts the sexy—if sometimes esoteric— Workplace Hub and a platform in the Workplace of the Future that envisions how tomorrow’s office will evolve, while leaving room for additional technology bolt-ons as the Internet of Things and artificial intelligence continue to shape work. However, this manufacturer is a moving force not willing to just let the “if you build it, they will come” adage guide its principles. The OEM is pushing ahead with its One Rate bundled subscription model; anticipating the changing needs of businesses as they closely mirror buyer consumption in mainstream society. Konica Minolta recently hammered out an agreement to offer the full suite of Google Cloud solutions, and also rocked PRINTING United with a pair of high-volume, toner-based production presses. In short, Konica Minolta hasn’t hitched its wagon to one star, but a universe of offerings designed to bring success to
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its dealer and channel direct partners. We sat down with Sam Errigo, executive vice president, sales and business development, for an overview on how the company is blending products and technology to enable dealers to meet the evolving needs of the client. The year 2019 represented a difficult campaign for many OEMs that reported sales declines in hardware and supplies. How would you characterize the year from Konica Minolta’s perspective, and what were the factors that shaped it? ERRIGO: Through the first three quarters, Konica Minolta Business Solutions U.S.A. Inc. has experienced positive growth in our transformational areas, such as managed IT services, ECM and industrial print. The market continues to compress as competitors with fewer capabilities focus more on price versus adding customer value. We continue to make solid progress in overall margin improvement due to our bundling strategy that includes the One Rate simplified model for our customers. Our focus for the remainder of fiscal year 2019 and into fiscal year 2020 is market share growth and the acceleration of our managed services offering. Konica Minolta held its own in 2019, with a slight decline in unit placements due to the slowdown and factors related to We Saw It In ENX Magazine
Sam Errigo, Konica Minolta
the tariff. That prompted many customers to take pause in fiscal year 2019. But we rebounded very well and had a strong Q2 and an even better Q3. We’re bullish on Q4—our fiscal year ends in March—and if we continue our pace, we’ll end up with a pretty solid performance in the United States. We are obsessed with monthly-recurring revenue (MRR) and bundling as this delivers a consolidated offer with high value to the customer. With One Rate and offering multifunction products—plus security enablement and support—we can address a multitude of devices customers are looking to consolidate. Therefore, customers are willing to make a change from their current supplier to a new supplier based on value. There is turmoil in our industry OEMs at all levels and this is causing customer, sales and support disruption. Look at our management team. I’ve been here 10-plus years. People like Rick (Taylor), Kevin (Kern) and Kay (Du Fernandez) provide a very stable team of experienced
