NOVEMBER 2017
VOLUME 24 NO. 11
Connecting People, Ideas, and Products in the Document Technology Industry since 1994
SMARTPHONE GENERATION DRIVING HARDWARE INNOVATION Canon BISG’s Hiro Imamura Provides Insight into AI and the Future of Work Landscape
CULTURE OVERHAUL, EXTENSION INTO MANAGED NETWORK SERVICES MARK EVOLUTION OF AIS
engage ‘n exchange ADDING MANAGED SERVICES SALES: What Not to Do Business Profile NECTRON INTERNATIONAL CUSTOMIZATION, SECURITY TOP AGENDA for Manufacturers’ Approach to New Hardware Landscape CREATIVITY IS BECOMING A MATTER OF POLICY IN COMPANY MANUALS
ENX Magazine
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EXPAND YOUR PORTFOLIO AND YOUR CUSTOMER BASE like never before with the new Epson WorkForce Enterprise. Realize the potential of new customers with a Multi-Function Printer that makes printing in color more affordable and prints 100 pages of color in 60 seconds. And because they’re easy to maintain, you’ll spend less time servicing the machines, and more time profiting from them. It’s time to rethink your portfolio. It’s time to think about Epson. Learn more at Epson.com/WorkForceEnterpriseProfit
OF COLOR IN 100 PAGES 60 SECONDS
WORKFORCE ENTERPRISE EPSON, PrecisionCore and WorkForce are registered trademarks, EPSON Exceed Your Vision is a registered logomark and Better Products for a Better Future and Epson Connect are trademarks of Seiko Epson Corporation. All other product and brand names are trademarks and/or registered trademarks of their respective companies. Epson disclaims any and all rights in these marks. Copyright 2017 Epson America, Inc. CPD-53423 2/17
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NOVEMBER 2017
VOLUME 24 NO. 11
Connecting People, Ideas, and Products in the Document Technology Industry since 1994
SMARTPHONE GENERATION DRIVING HARDWARE INNOVATION Canon BISG’s Hiro Imamura Provides Insight into AI and the Future of Work Landscape
engage ‘n exchange ADDING MANAGED SERVICES SALES: What Not to Do Business Profile NECTRON INTERNATIONAL CUSTOMIZATION, SECURITY TOP AGENDA for Manufacturers’ Approach to New Hardware Landscape CREATIVITY IS BECOMING A MATTER OF POLICY IN COMPANY MANUALS
In This Issue
26
DEALER SPOTLIGHT CULTURE OVERHAUL, EXTENSION INTO MANAGED NETWORK SERVICES MARK EVOLUTION OF AIS
Culture Overhaul, Extension into Managed Network Services Mark Evolution of AIS By Erik Cagle
22
36
STATE OF THE INDUSTRY Smartphone Generation Driving Hardware Innovation in UI, App Integration By Erik Cagle
22
CHANNEL INSIGHT Canon BISG’s Hiro Imamura Provides Insight into AI and the Future of Work Landscape By Erik Cagle
32 36
MANAGED SERVICES Adding Managed Services Sales: What Not to Do By Charles Lamb
40
OEM ROUNDTABLE Customization, Security Top Agenda for Manufacturers’ Approach to New Hardware Landscape By Erik Cagle
48 50
BUSINESS MANAGEMENT Creativity is Becoming a Matter of Policy in Company Manuals By Tim Votapka
53 54
PRINTER TECH TIP By LaserPros
56
48 6
16
•
www.enxmag.com | November 2017
BUSINESS PROFILE Nectron International Uses Superior Products to Gain Competitive Edge in Price-Driven Aftermarket Supplies Landscape By Erik Cagle
SERVICE MANAGEMENT Creating a Uniform Process for Your Business: How to Do It and Why By Ken Edmonds
TECHNICAL TIP Xerox Color 550 & DCP 700: Rebuilding the 2nd BTR Roll Assemblies (DC250 style) – Part 2 By Britt Horvat DISPLAY ADVERTISERS INDEX
We Saw It In ENX Magazine
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Contributors
Staff
KEN EDMONDS is currently employed as a District Service Manager for a major copier manufacturer. He has an extensive background in the imaging business, having owned a successful dealership, serving as service manager for multiple dealerships, and as a Document Solutions Specialist for Sharp Electronics. He has more than 40 years of experience in the electronics and computer fields. For further information email him at Ken.Edmonds@CKE-Enterprises.biz
Susan Neimes Publisher & Managing Editor
TIM VOTAPKA is the VP and Director of Marketing Services at Prosperity Plus Management Consulting, Inc. He is a B2B marketing communications professional who has many years of experience in strategy, creativity and program management. Tim may be reached via email at tvotapka@prosperityplus.com, tel: 631.283.7762.
Erik Cagle Editorial Director
CHARLES LAMB is the President and CEO of Mps&it Sales Consulting. His firm delivers proven methodologies and processes that assist dealer principals seeking a successful transformation into the managed services space. He’s created complementary solutions including Funnelmaker, Gatekeeper, and Shield IT services. For more info, call 888.823.0006, e-mail him at clamb@mpsandit.com, or visit www.mpsandit.com.
Ronelle Ingram Contributing Editor
TECHNICAL ARTICLE CONTRIBUTOR BRITT HORVAT works for The Parts Drop, a company whose primary business is providing parts, supplies and information for Xerox brand copiers, printers and fax machines. You can find more information, including many of Britt’s past ENX articles on their website www.partsdrop.com.
Christina Kim
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Susan Neimes - susan@enxmag.com Erik Cagle - erik@enxmag.com 10153 1/2 Riverside Drive, Suite 729 Toluca Lake, CA 91602 tel. 818-505-0022 • fax. 818-505-9972
www.enxmag.com | November 2017
ENX Magazine is published monthly by Affinity Business Communications, Inc. Any inquiries should be sent to: enx@pacbell.net or mailed to the corporate office. Copyright ©2017 by ENX Magazine printed in the U.S.A. All reproduction in whole or part is prohibited without written permission. Cover photo from depositphotos.com
We Saw It In ENX Magazine
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• 30 pages per minute (3011i) • 35 pages per minute (3511i) • Dual 500 Sheets • 33.6 Kbps Fax (Option)
• 42ppm (M3040/3540idn) • 52ppm (M3550idn) • 62ppm (M3560idn)
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650
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Up to
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DP-7100
$
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Up to
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All supplies & Parts available for prompt delivery! ENX Magazine | www.enxmag.com
All prices, rebates, and availability are subject to change without notice. Please call us to confirm.
Nuworld is not responsible for typographical errors or inaccurate specifications. Registered trademarks are properties of their respective owners.
Copiers • Printers • MFPs • Faxes • Scanners E m a il: info @ n u w o rld in c.co m
Order Online! www.nuworldinc.com
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HL-L5100DN
40ppm Color Printer • Duplex • Network..........................
HL-L2340DW
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BIG SALE! BIG SALE!
DCP-L2540DW
BIG SALE!
FAX-4100e
BIG SALE!
30ppm B&W Copier • Duplex • Wireless Network..........
High Speed Laser Fax | 33.6Kbps Super G3.................
PPF-4750e
High Perf. Laser Fax | 33.6Kbps | Network.....................
MFC-8220
B&W Laser AIO | 21ppm | 32MB Memory.......................
PANAFAX UF-5500
PANAFAX UF-6200
• 33.6 Kbps Fax • 8MB Memory • 24ppm • 30-Sheet ADF
• 33.6 Kbps Fax • 8MB Memory • 6.5ppm • 50-Sheet ADF
DP-MC210P/D
DP-MC210S1
• 21/21ppm (BW/Color) • Duplex Unit
• 21/21ppm (BW/Color) • Duplex Unit 2nd 520-Sheet Tray
BIG SALE! BIG SALE!
MFC-J5720DW
BIG SALE!
Color Digital MFC | 23ppm | Dplx | Wireless Network.....
Color InkJet AIO | 35/27ppm (BW/Color).......................
MFC-L2740DW
BIG SALE!
MFC-L5700DW
BIG SALE!
B&W AIO | 32ppm | Duplex | Wireless Network............
B&W Laser Printer | 42ppm | Dplx | Wireless Network...
MFC-L8610CDW
BIG SALE!
MFC-L8900CDW
BIG SALE!
33ppm Color MFP • Duplex • Network.............................
33ppm Color MFP • Duplex • Wireless Network..............
$429
Color Multifunction
• 26ppm BW (M266N) • 31ppm BW (M316N) • 35ppm BW (M354N) • 2 x 500-Sheet Paper Drawers, 100-Sheet MPT
BIG
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BIG
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$949
$1159
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SALE!
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• 25/25 pages per minute (BW/Color)
899
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MP501SPF................$200 REBATE MP2501SP...............................$1869 MP2555SPAD..........................$2849 SP 3600SF............................BIG SALE! $50 REBATE! SP 3610SF.............................................. SP 4510DN............................................. $40 REBATE! SP 4510SF.............................................. $100 REBATE! SP 5200DN............................BIG SALE! SP 5210SR............................BIG SALE! $100 REBATE! SP 5300DN............................................. SP 5310DN............................................. $150 REBATE!
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CT-S601
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SD622
CALL FOR SPECIAL PRICING
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MPC306SPF.............$100 REBATE MPC2004EX............................$2649 MPC2504EX............................$3845
WIDE FORMAT PRINTERS
Digital Duplicators • 80-100-130 sheets per minute • 600 x 600 dpi Scan Resolution • 1,000-Sheet Tray
1279
$
IMAGEPROGRAF
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MX-C301W
PLEASE CALL FOR REBATE INFORMATION!
LASERJET M130FN......................................................$60 REBATE LASERJET M130FW.....................................................$80 REBATE LASERJET M225DN..........................................................BIG SALE! LASERJET M607N......................................................$100 REBATE LASERJET M607DN....................................................$100 REBATE LASERJET M608N.........................................................$75 REBATE LASERJET M608DN/X......................................$100/$190 REBATE LASERJET M609DN/X......................................$150/$200 REBATE LASERJET M402N......................................................$100 REBATE LASERJET M402DNE.................................................$100 REBATE LASERJET M402DW...................................................$100 REBATE COLOR LASERJET M277DW............................................BIG SALE! COLOR LASERJET M452DN......................................$150 REBATE COLOR LASERJET M452NW.....................................$120 REBATE COLOR LASERJET M553DN......................................$160 REBATE COLOR LASERJET M553N........................................$120 REBATE COLOR LASERJET M553X........................................$240 REBATE
DEAL!
SD375
$899
REBATE AFTER REBATE
Multifunctions
60ppm Color Scanner for PC & MAC
$
BIG
$620
ALL REBATES ARE VALID THROUGH OCTOBER 31, 2017
DOCUMENT SCANNER Fi-7160
• 30 pages per minute
$699
2-Panel Electronic Color White Boards
DOCUMENT SCANNERS
SALE!
MX-C250
150
• 30 pages per minute
58ppm B&W Duplex, Network-Ready Printer
REBATE AFTER REBATE
UB-5835
BIG SALE!
MX-C300W
$470
2-Panel Electronic White Boards w/ Integrated Printer
BUY
MX-B402
$
• 26ppm BW/Color (2616N) • 31ppm BW/Color (3116N) • 600 x 600 dpi Resolution • 600-Sheet Paper Capacity • 100-Sheet RSPF • 3GB Memory + 320GB HDD
58ppm B&W Duplex, Network-Ready Printer
White Boards w/ Integrated Printer
GREAT
SALE!
$
MX-2616N MX-3116N
LASERJET M605DN LASERJET M605X
$499
$399 $459
MC210P
Hi Speed Laser Fax
Color Multifunction
MFPs MX-M266N MX-M316N MX-M354N
LASERJET PRINTERS & MFPS
ALL REBATES ARE VALID WHILE SUPPLIES LAST!
$645
BIG SALE! UB-5335 2-Panel Electronic
MFC-9330CDW
MONOCHROME & COLOR
MULTIFUNCTIONS PRINTERS FAXES PANABOARDS Hi Speed Laser Fax
High Speed Laser Fax
Same Day Shipping
CT-S801
BIG
SALE!
300mm/s/384K Mem.
Rebate
(IPF 770MFP)
400
$
Rebate
825 $800
$
Rebate
Rebate
(IPF PRO4000) (IPF PRO4000S)
IPF680/685 24-INCH LARGE FORMAT PRINTERS.......$360/$400R IPF780/785 36-INCH LARGE FORMAT PRINTERS......up to $1100R IPF830/840/850 44-INCH LF PRINTERS..................up to $1625R IPF PRO6000S 60-INCH LF PRINTER...................$1300 REBATE IPF815MFP 44-INCH LARGE FORMAT PRINTER.....$2916 REBATE
Parts Order Hotline: 562.977.4949
All prices, rebates, and availability are subject to change without notice. Please call us to confirm.
Nuworld is not responsible for typographical errors or inaccurate specifications. Registered trademarks are properties of their respective owners.
NBS / ENX | November 2017
Since 1985
Your Prime Source T EL: 800.729.8320
FAX: 800.829.0292
INSTANT REBATE SALE! ALL INSTANT REBATE PROMOS ARE VALID THROUGH DECEMBER 31, 2017 TO CANON PREMIER PARTNERS OR WHILE SUPPLIES LAST!
• PRINT • COPY • SCAN • FAX
MF236N MF247DW MF249DW
85
65
$
$
MF414DW MF416DW
• PRINT • COPY • SCAN • FAX
• 35ppm • 250 Shts, 50-Sht MPT • 33.6 Kbps Fax Super G3 • PS (MF416DW)
REBATE MF249DW
MF419DW MF515DW
• PRINT • COPY • SCAN • 35ppm (419DW) • FAX • 42ppm (515DW) • 500 Shts + 100-Sht MPT • Duplex Versatility, W-Ntwrk Both models can only be sold to 3P Authorized Dealers!
Both models can only be sold to 3P Authorized Dealers!
125 200
$
$
REBATE
REBATE
MF414DW
MF416DW
LBP251DW LBP253DW
B&W Laser Duplex Printers with Wireless Network • 30ppm (LBP251DW) • 35ppm (LBP253DW)
$
75 125 $
REBATE
REBATE
MF419DW
MF515DW
LBP312DN
B&W Laser Duplex Printer with Network • 45 pages per minute • 550 Sheets + 100-Sheet Multipurpose Tray
75
$
REBATE
60
REBATE
LBP251DW LBP253DW
• Up to 35 pages per minute • 256MB Memory • 500 Sheets + 50-Sheet MPT • Duplex Versatility • 33.6 Kbps Fax Super G3 (D1550)
125
$
REBATE
250 175 $REBATE
$
REBATE D1520
375 200 $REBATE
$
810CDN
820CDN
$
125 $135
REBATE
REBATE
MF634CDW MF731CW
Color Laser Duplex Printer with Wireless Network • 28/28ppm (BW/Color) • 250 Sheets + 50-Sheet Multipurpose Tray
B&W Laser Duplex Printers with Network
210 175 $REBATE
$
REBATE
REBATE
LBP351DN LBP352DN
• 33.6Kbps • 19ppm Print (L100) • 26ppm Print (L190)
• Duplex (L190)
Image Shown: FAXPHONE L190
LBP654CDW
LBP351DN LBP352DN
Both models can only be sold to 3P Authorized Dealers!
120 165 $REBATE
MF733CDW MF735CDW
• 19/19ppm • SCAN (BW/Color) • FAX (MF634CDW) • 28/28ppm (BW/Color) (MF731CDW) • Wireless Network
• PRINT • COPY • SCAN • FAX
REBATE
$
FAXPHONE L100 MF634CDW FAXPHONE L190 MF731CW •• PRINT COPY LASER FAX BASED MFPS
• 26ppm (BW/Color (MF810Cdn) • 36ppm (BW/Color (MF820Cdn) • 550 Sheets + 1-Sheet Multipurpose Tray • Duplex Versatility MF820CDN can only be sold to 3P Authorized Dealers!
• 28/28ppm (BW/Color) • 1200 x 1200 dpi Resolution (Print) • 250-Sheet Cassette, 50-Sheet Multipurpose Tray • 50-Sheet Duplex DF • 1GB Memory (Copy/Print) • UFR II (Host-Based), PCL 5c/6, Adobe PS (MF735CDW) • Duplex, Wireless Network • 33.6 Kbps Fax Speed
D1550
MF810CDN MF820CDN
• 58ppm (LBP351DN) • 65ppm (LBP352DN) • 500 Sheets + 100-Sheet Multipurpose Tray • 1GB Memory
LBP253DW can only be sold to 3P Authorized Dealers!
$
MF733CDW MF735CDW
D1520 D1550 • PRINT • COPY • SCAN • FAX
• 24ppm (MF236N) • 28ppm (MF247DW, MF249DW) • 600 x 600 dpi Resolution • 250-Sheet Cassette + 1-Sheet Multipurpose Tray • 512MB Memory (Copy/Print) • Duplex, Wireless Network (MF247DW, REBATE MF249DW) MF236N
• PRINT • COPY • SCAN • FAX
95
$
REBATE
70
$
$
75
REBATE
REBATE
L100
L190
LBP712DN
Color Laser Duplex Printer with Network • 40/40ppm (BW/Color) • 550 Sheets + 100-Sheet Multipurpose Tray
80
$
REBATE
All supplies & Parts available for prompt delivery! ENX Magazine | www.enxmag.com
All prices, rebates, and availability are subject to change without notice. Please call us to confirm.
Nuworld is not responsible for typographical errors or inaccurate specifications. Registered trademarks are properties of their respective owners.
Copiers • Printers • MFPs • Faxes • Scanners E m a il: info @ n u w o rld in c.co m
Order Online! www.nuworldinc.com
Blind Drop Shipping
Same Day Shipping
AUTHORIZED PRINTER
PARTNER PROGRAM ALL INSTANT REBATE PROMOS ARE VALID THROUGH DECEMBER 31, 2017 OR WHILE SUPPLIES LAST!
Award-Winning Samsung Products
CLX-8640ND / CLX-8650ND
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$300 $500 REBATE
SL-C1860FW SL-C2670FW
Color Duplex, Copy, Print, Scan, Fax, Wireless Network • 19/19ppm (BW/Color) (C1860FW) • 27/27ppm (BW/Color) (C2670FW) SL-C2670FW
$70 REBATE
SL-M3370FD
B&W Duplex, Copy, Print, Color Scan, Fax, Network • 35 pages per minute • 250-Sheet Input Capacity • 50-Sheet ADF • 33.6 Kbps Fax
BIG SALE! CLP-775ND
Color Laser Printer with Network • 35/35ppm (BW/Color) • 500-Sheet Input Capacity • 9600 x 600 dpi Resolution
$185 REBATE
SCX-5935NX SSpaelec!ial • 35 pages per minute • 500 Sheets $ Input, AFTER 50 $ Sheets MPT REBATE
599
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Erik Cagle
State of the Industry
Smartphone Generation Driving Hardware Innovation in UI, App Integration
T
he lease on a customer’s copier or multifunctional device is about to expire. Does the client accept the next iteration in an OEM’s line, or has its business needs evolved to the extent that it’s necessary to move in another direction? To that end, what are the drivers that are dictating a customer’s changed approach to hardware? When speeds and feeds no longer dominate the conversation, but cost-per-page is still a primary talking point, the question becomes what attributes will sway a customer’s decision process? Well, we don’t have a crystal ball or a qualified Tarot card reader, but we’ve rounded up a panel of industry analysts and dealers who have provided their insights as to how manufacturer hardware offerings are reflecting the changing needs of customers. In particular, our panel discusses what features guide customers in their decision-making processes. Andy Slawetsky is a well-traveled and familiar figure on the conference, trade show, manufacturer event and dealer meeting circuit. The president and owner of Industry Analysts believes the greatest trend driving the new age of copier/MFP development is the evolution of the user interface towards easier, less intimidating models. In the past, screens inundated the user with a myriad of options, which proved frustrating for those looking to execute meat-and-potatoes functions such as copying and scanning. Now that the iPhone has celebrated 10 years of revolutionizing the way people use cells phones— with the calling function almost becoming an afterthought—iOS and its Android cousin have effectively educated the population with a common user
TOSHIBA HAS A GREAT VERTICAL PLATFORM WITH ELEVATE THAT WE’VE HAD SUCCESS WITHIN THE MEDICAL AND LAW SPACE. THE ABILITY TO CUSTOMIZE THE TOUCH SCREEN FOR INDIVIDUAL CLIENTS GIVES THEM A GREAT USER EXPERIENCE. T.J. DeBello, Stargel Office Solutions
A 13-YEAR-OLD DEVICE ON YOUR NETWORK IS A MASSIVE SECURITY RISK, BUT CUSTOMERS DON’T SEEM TO GRASP THAT CONCEPT. Debra Dellaposta, Doing Better Business interface. “Manufacturers are developing their user interfaces to emulate that look,” Slawetsky said. “Some do it better than others, and certain manufacturers are taking a completely Android approach. Samsung put the Android UI on its copier, while Xerox, Sharp and others have taken the app approach. Users understand how to slide back and forth between screens. Manufacturers aren’t overloading people with all the functions and features the machine has right on the front screen.” Slawetsky noted that OEMs such as Xerox and Samsung allow for app integration by dealers and, invariably, end users. This opens up a world of possibilities. He pointed out that during a Xerox event earlier this year, a dealer demonstrated an app that allowed the device to run the Amazon Echo. The world’s best-known, voice-controlled virtual assistant, Alexa, can now be asked to make copies. “It’s early stage artificial intelligence, but the more manufacturers enable integration, the more potential exists,” he said. “You literally have a personal assistant built into your copier. As AI takes off, Xerox will be a little ahead of the pack.” Stargel Office Solutions of Houston is seeing strong demand from customers who want access to data quickly and from multiple devices, notes T.J. DeBello, vice president of sales. Many end users have instant access from their mobile devices to connect with Microsoft 365, Dropbox or Google Drive, and having access to these platforms on their MFPs have dominated sales discussions and led to successful engagements. From an OEM standpoint, Stargel has enjoyed much success with the HP A3 line, led by its continued on page 18
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www.enxmag.com | November 2017
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Smartphone Generation Driving Hardware Innovation in UI, App Integration security features and PageWide technology. “HP has done a fantastic job marketing their security enhancements, and it plays well with larger clients that spend resources on securing their environments,” DeBello said. “The PageWide has fit into some smaller environments that are more price conscious but need reliable color output. “Toshiba has a great vertical platform with ELEVATE that we’ve had success within the medical and law space. The ability to customize the touch screen for individual clients gives them a great user experience, leading to more productive use of the MFP’s vast features.”
The Need to Educate
Many dealers feel the onus to educate their customers on the importance of various issues, especially security, but still find themselves confronted with the requirements to have a unit that is cost effective, backed by quality service and meets the client’s basic needs. Debra Dellaposta, president of Altoona, PA-based Doing Better Business, notes the conversation still tends to be dictated by cost. “There are still many old-fashioned purchases taking place,” she said. “Our role is to educate, but it’s tough to get people to understand that security is a huge factor. A 13-year-old device on your network is a massive security risk, but customers don’t seem to grasp that concept. Our staff is also concerned with how we can integrate all of the cloud applications into our customers’ current software in a way that is cost-effective—whether it’s apps or connector keys. Unless the customer understands the value, it is difficult to sell those services.”
THE MORE CUSTOMIZED MANUFACTURERS CAN MAKE THEIR MACHINES FOR A PARTICULAR END USER, THE MORE OF A PREMIUM THEY CAN GET FOR IT. Charles Brewer, Actionable Intelligence
Actionable Intelligence, led by President Charles Brewer, provides tactical market research and custom consulting related to the markets for digital printer, copier and MFP hardware and toner/inkjet supplies. Brewer sees a trend toward machines that have a smaller footprint, while on the supplies side, manufacturers are moving away from using base materials such as styrene acrylic resins to more polyester-based toners, which have lower melting points. Brewer echoed Slawetsky’s sentiments regarding the larger, friendlier user interface screens, which have grown in size. But some of the greater value-added tools go beyond the machine itself, addressing workflow and document management. 18
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THE HARDWARE ENHANCEMENTS THAT HAVE THE BEST CHANCE OF CONVINCING CUSTOMERS TO UPGRADE ARE REALLY JUST SPECIFIC TO THEIR VERTICAL MARKET. Ken VandenHaute, Meritech “The more customized manufacturers can make their machines for a particular end user, the more of a premium they can get for it,” Brewer said. “In terms of speeds and feeds, you don’t hear hardware manufacturers talking about specs like resolution and print speed, which is kind of antiquated now. The way some manufacturers try to add value is by bringing the operating costs of the machines down. KYOCERA, for example, was able to come in at pretty low cost-per-page prices, and Ricoh now is using some of their print engines to offer the same low cost points.” With the move to cloud computing and the need for mobile printing, managing a client’s entire network is becoming critical for a dealer such as Cleveland-based Meritech. Aging networks and declining server space has dictated a need for customers to grow and evolve, notes Ken VandenHaute, vice president of sales for Meritech. These factors are putting IT support on a plane with hardware management. He notes many clients are also moving to Microsoft Office 365.
The Vertical Slant
The growth in apps for the devices can be pinpointed to a client’s vertical and that space’s particular needs, according to VandenHaute. The legal vertical seeks out bates stamping features, while both legal and medical want the ability to scan documents and turn them into searchable and editable PDFs on the back end. On the education side, there’s an app for KYOCERA machines (among others) that replicates the old Scantron machine for test-taking forms, grading the forms and providing customizable reports. “We’re seeing a lot of apps being developed to connect directly to Google Drive,” he said. “The hardware enhancements that have the best chance of convincing customers to upgrade are really just specific to their vertical market. “One of the things we say when do a demo is, this copier is going to do everything you expect—double-sided, duplex; we can program the machine to force double siding. Speeds and feeds really don’t matter to an end user, though speed might if it’s a high-volume environment. As for the rest of it, it’s pretty generic, like a car. Everything across the automotive industry has become very generic.” Vertical markets offer the opportunity for OEMs to take a more granular approach in their offerings, according to Brewer. continued on page 20
We Saw It In ENX Magazine
Smartphone Generation Driving Hardware Innovation in UI, App Integration Both Konica Minolta and Xerox partnered with health care information exchange specialist Kno2 to incorporate a “Share Patient Information” button on their vertical-specific MFP, using a standardized format that eliminates the need for faxing. Beyond that, the MFPs and copiers can be tailored for specific units within a hospital or care facility. “A nursing station might have a low-end printer, while billing or the central office with all the backroom functions will have a bigger device. Admittance will have different needs, like printing wrist bands,” Brewer said. “All these machines are running similar software packages that pull it all together and it’s tailored toward the hospital environment.” Slawetsky also sees the charge toward app-driven device verticalization gathering more momentum. It only enhances a pitch when the sales rep can showcase vertical-specific apps or connectors programmed into the workflow software. The race for OEMs is to ensure the vertical approach is taken across all their lines, not just specific models.
TWO OR THREE YEARS FROM NOW, EVERYONE’S GOING TO HAVE A VERTICAL COPIER AND IT WON’T BE AN ADVANTAGE TO ANYBODY. BUT I DO THINK IT MAKES IT EASIER TO SELL TO SPECIFIC VERTICALS. Andy Slawetsky, Industry Analysts “Customization is key,” Slawetsky said. “Two or three years from now, everyone’s going to have a vertical copier and it won’t be an advantage to anybody. But I do think it makes it easier to sell to specific verticals.” The vertical sale is not an easy one when it comes to pitching segment-specific feature sets, according to Doing Better Business’ Dellaposta. Lockable trays, for example, do not resonate with health care systems, and the dealer has enjoyed little traction on the education side. The open architecture offered by Sharp and Ricoh for integrating into existing software is a major plus, but she feels the ship has sailed when it comes to developing new software. “Most verticals have developed their own software, even the smaller verticals,” Dellaposta said. “They’ve already figured out how to run their business—we have to figure out how to hook into it and help them do it more efficiently without making any software changes for them, because they’re not willing to reinvest.”
The Inkjet Plane
Beyond copiers and MFPs lies a hardware land that has promise, but whether it can gain traction in the office dealer channel remains to be seen. Production inkjet presses have flourished on the commercial printing end. While web and 20
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sheetfed offset still dominates that segment, inkjet remains the fastest-growing hardware segment. But the office environment is a different animal. HP, for one, is banking on its PageWide technology to have an impact at the office level. “PageWide is still early in production, but we have found a lot of success in smaller work group environments that need reliable color and an economic price point,” Stargel’s DeBello noted. “In many environments, we are able to place a PageWide and remove smaller, more costly non-networked inkjets and stand-alone printers.” Stargel offers Toshiba thermal label printers, but has not enjoyed much success to date: many customers opt to source their labels online, rather than taking on a machine with a maintenance plan. The dealer has explored an all-inclusive costper-label model to help build an annuity stream, which has been mildly successful, but DeBello feels the margins aren’t viable enough to support a large investment in training to grow that portion of the business. Meritech’s VandenHaute isn’t convinced inkjet has a bright future in the office. He sees more customers transitioning to toner-based product, opting for the technology and color quality of color multifunctional devices. The ability to perform Pantone color matching on an MFP makes it the preferred choice, in his experience. The MFP has also been a viable output device for churning out labels and variable data printing, and it fits the needs of Meritech’s client base. Doing Better Business offers digital displays, including the Sharp Aquos Board and Ricoh’s Unified Communication System, which includes the Interactive Whiteboard with Watson. Dellaposta notes it is a challenging sell, because dealers will have to provide the educational component for customers that aren’t as IT savvy, but she is optimistic about its long-term success. Slawetsky is quite bullish on the future of inkjet printing in the office, pointing out that it is affordable, produces higher quality output, uses less energy and has a smaller carbon footprint. It’s fighting an image problem; many people recall the home inkjet devices with uber-expensive cartridges that were gradually replaced by toner models. HP, Brother and Epson all have A3 inkjet units, and other manufacturers like Konica Minolta, Ricoh and Canon produce the industrial models. The PageWide, with its copier-type footprint and finishing capabilities, could well be a catalyst for the future of inkjet in the office. “It’s coming and I feel like dealers would be foolish not to look at inkjet and think about the different ways that they could possibly bring that into their product mix,” Slawetsky said. “There are real strong attributes about inkjet and one of the best areas to use it is to manage print. The yields on these things are pretty good now. The cost-per-page is very aggressive, and there’s ink-saving technology that will really allow you to bump those yields up. In the next two or three years, I think ink will initially take away some of the low-end business from laser, then eventually some of the high-end work as well.” ♦ We Saw It In ENX Magazine
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FOR FURTHER INFORMATION CONTACT CUSTOMER SERVICE TODAY Sales: 1 (818) 837-8100 | Tech Support: 1 (800) 466-0246 | Email: info@fgimaging.com | Website: www.fgimaging.com © 2001 – 2017, Mitsubishi Chemical Imaging Corporation dba Future Graphics. All rights reserved. Future Graphics is a distributor of compatible replacement parts for imaging equipment. None of Future Graphics’ products are genuine OEM replacement parts and no affiliation or sponsorship is to be implied between Future Graphics and any OEM. Trademarks and brand names are the properties of their respective owners and used for descriptive purposes only.
Erik Cagle
Channel Insight
Canon BISG’s Hiro Imamura Provides Insight into AI and the Future of Work Landscape
W
hen the term artificial intelligence is bandied about, it conjures images of free-moving robots taking the place of humans, summoning the need for actor Will Smith to save the day. OK, so maybe Hollywood has the penchant for embellishing reality, but AI and the Internet of Things are becoming increasingly prevalent in the lives of consumers (see Amazon Echo or Google Home). Not only that, but the future of workflow enhancements in the business environment also offers an endless array of tools designed to improve processes beyond mere voice commands. ENX Magazine sat down with Hiro Imamura, senior vice president and general manager of Canon U.S.A.’s Business Imaging Solutions Group, to clarify the role that artificial intelligence will play in the company’s Future of Work environment, detailing key partnerships in fostering integrated workflow technologies, as well as emphasizing the need for greater security tools. Imamura also examines the role millennials are playing in increasingly mobileenabled technologies, along with Canon’s advisory role in helping end users and office technology dealerships map out their Future of Work game plan. Tell us about your career path leading up to your current position at Canon BISG. IMAMURA: I began my career in 1985 with Canon Inc. in Tokyo
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Hiro Imamura, Canon Business Imaging Solutions Group
before joining Canon U.S.A. Inc. in 1992, working in a strategic planning management role in the Graphic Systems Division. After a brief return to Canon Inc. in 1997, I rejoined Canon U.S.A. in 2000, where I have held a variety of management positions within the Business Imaging Solutions Group over the past 17 years. In my current role as senior vice president and general manager of marketing for the Business Imaging Solutions Group of Canon U.S.A., I oversee all marketing activities for enterprise, desktop and production solutions, as well as strategic solutions, aftermarket products, and integrated marketing and marketing shared-services. There has been much talk about the future of the office and the role that artificial intelligence will play in automating certain functions, alleviating employees to focus more on their core roles. What is Canon Business Imaging Solutions Group’s view of the movement toward AI? IMAMURA: AI is at the nexus of global business growth. We Saw It In ENX Magazine
Investments in AI continue to pave new growth paths for global business. There is a fear that AI will detract from the human element in business – that the technology will replace people and their jobs. That is not the case. AI and the technological innovations that come from its capabilities will continue to make business processes easier, streamlining workflows so that employees can spend more time focusing on helping end users make smarter decisions faster. AI will also be crucial in helping to mine data and assess risks and opportunities. Is there a need to strike a balance between people and technology in the approach OEMs and software solutions providers take in crafting future workplace automation tools? IMAMURA: Yes. The biggest striking point will be improving how people interact with the new technology. Natural language processing and cognitive advances will make it possible for users to “command” their office tools to drive specific tasks. Eventually, through cognitive capabilities and AI, these tools will grow smarter and more efficient, helping drive proficiency and efficiency. In essence, we want our devices and equipment to learn the ways in which a particular user works in order to simplify the interaction over time and get the job done faster. What tack is Canon BISG taking with its product and service offerings to address the needs of the Future of Work landscape?
continued on page 24
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Canon BISG’s Hiro Imamura Provides Insight into AI and the Future of Work Landscape IMAMURA: Integrating workflow technologies that can simplify communication and help to keep confidential information secure is a top priority for many businesses, including our own. Canon’s recent partnership with Box and mxHero is an example in which the company augmented existing solutions to offer customers cloud-based capabilities that address security and accessibility – two hot button features of the office of the future.
Security, specifically, is a top priority for Canon, as evident through our uniFLOW platform and imageWARE Secure Audit Manager Express module. The uniFLOW platform is an endto-end printing, scanning, and device management solution that can help improve the control and efficiency of the imageRUNNER ADVANCE and other compatible multifunctional printer devices. Its Secure Print functionality allows users to send sensitive documents to network printers from desktops and compatible mobile devices. When using this function, regardless of how users submit a print job, documents only print when the user is physically standing at the device and authenticates. Additionally, the imageWARE Secure Audit Manager Express module, available as an optional component within uniFLOW, is a network device security solution that delivers detailed oversight of an organization’s documentrelated activities on compatible devices. It can capture, archive and audit the activities and images that occur on Canon solutions, including compatible imageRUNNER ADVANCE devices, to ultimately enhance an organization’s document security. With the millennial generation growing its influence within the office, how is Canon positioning itself to incorporate the growing need for mobile enhancements to access not only common office equipment 24
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such as copiers and MFPs, but also workflow systems? IMAMURA: Canon is continuously improving its office solutions to answers the call for mobility and consumerization, and help optimize business processes for today’s workforce. There has been an increased demand for flexibility, customization, and convenience in the workplace, and providing a virtually seamless experience can be critical to helping achieve optimal productivity and results. For instance, we recently received and successfully executed a customer request to deliver our uniFLOW mobile printing app through enterprise mobility services company MobileIron’s MDM platform. Canon and NTware quickly and efficiently responded upon receiving the software development kit to build and deliver the mobile solution to meet the customer’s requirements. It is examples such as this that showcase how, as we further advance our offerings, we will continue to look to provide solutions that strike a balance between the unique needs of the modern workers and the larger business organization. In an age of rampant data breaches, how is Canon approaching the continued need for security containment as the connectivity and networking of more and more devices grows? IMAMURA: MFPs are the heart of an office. If they are not built with capabilities to help protect a business’ confidential information, the business is already at great risk. We help customers identify and combat potential pitfalls in the security chain by helping businesses build solutions portfolios that will provide multilayered security capabilities where they need it most. Our solutions incorporate features such as user authentication, usage tracking, device fleet management tools, and centralized network security management settings into our connected devices. Canon was recently awarded with a BLI PaceSetter Award from Keypoint Intelligence, in the Document Imaging Security category, for the user authentication schemas in Canon’s latest imageRUNNER ADVANCE MFPs, as well as its uniFLOW platforms.
www.enxmag.com | November 2017
Talk a little about Canon’s role as an advisor and coach in laying out a technological blueprint for office technology dealerships and end users to follow as they embark on the future of work. IMAMURA: Businesses today are looking for smart technology and less hassles. They want the most uptime possible out of their connected devices, because this ultimately bolsters employee efficiencies and productivity. Canon, therefore, is taking great initiative to embrace a preventative maintenance business model, developing a portfolio of solutions that are smart enough to detect when something is going wrong internally, before it even does. Our service and support team works closely with our product engineers and developers to proactively provide our dealers and businesses with the technical guidance and support tools necessary to navigate the automated world, or the office of the future, with minimal constraints. Back in March of this year, we introduced a new offering to our dealer channel to assist them in growing their solution participation rates by providing them access to Canon’s own top tier engineering resources during installation to learn best practices, gain confidence and contribute to the dealer’s professional services revenue opportunities. What are your goals heading into 2018? IMAMURA: Canon will continue to listen to its customers in order to bring to market innovative enterprise solutions that address the new demands of modern workflows. Employees seek seamless experiences in the workforce. And they can better accomplish that by working with office solutions that promote flexibility, productivity and convenience. Canon takes great care in designing and implementing enterprise workflow solutions, as well as expanding its relationships with like-minded and forward-thinking channel and alliance partners to help today’s offices stay on the pulse of innovation. ♦
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Erik Cagle
DealerBriefing Spotlight News
Culture Overhaul, Extension into Managed Network Services Mark Evolution of AIS
N
ot many office technology dealerships are willing to make a deep, thoughtful evaluation of the way they do business, and fewer still are willing to make significant changes to their product and service offering and company culture. Then again, not many dealers boast the aggressive growth initiative put forward by Las Vegas-based Advanced Imaging Solutions (AIS). With California offices in San Diego, Palm Desert and Corona, AIS is on track to amass $23 million in sales. A single-line provider of KYOCERA equipment, AIS counts education, legal, medical and manufacturing among its core of clients in the southern portion of Nevada and California.
Six years ago, the company implemented several changes that evolved the company from a copier-sales mindset to a technology services provider. AIS entered the world of managed network services and added 3D printing to its menu. But perhaps its biggest evolution was the establishment of its core values, which now permeate every facet of how AIS does business. ENX Magazine sat down with Gary Harouff, AIS president, and Dave Clark, vice president of sales and marketing, to learn how these changes have impacted the company and its quest to go from its current level of $23 million in sales to $100 million through organic growth and acquisition within the next eight years. What does AIS pride itself on?
Gary Harouff, AIS President 26
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CLARK: We’ve positioned ourselves as a technology provider. Six years ago, we decided we were no longer just going be a copier company, because that is a race down to zero cents per copy and profitability was continuing to decline. So we diversified our business into managed network services/IT services, 3D printing and other professional services applications to really increase our productivity. We also wanted to be a total services offering to our customers. Instead of customers needing three or four vendors to meet all of their technology needs, they can contract with us and have one throat to choke. We do this by having a very strong back-end support system that We Saw It In ENX Magazine
monitors everything we do to ensure we’re delivering one-time call responsiveness, that we do accurate invoicing and monitor our internal processes to make sure that we’re delivering to our customers. Your company is on track for 14 percent year-over-year growth. What has fueled this success? CLARK: We’ve enjoyed 216 percent growth with our managed network services year over year. We’ve had a dramatic increase this year in our IT services, which is a servicesbased, recurring revenue-type contract. Five years ago, we were around $13-$14 million dollars, so to increase revenues by $9 million in less than five years is pretty impressive. HAROUFF: This year we’ve done this completely through organic growth, with no acquisitions. In a time when equipment MSRPs continue to decline, along with service and supplies CBCs, you have to sell considerably more every year to hit your same revenue target. We did two acquisitions two years ago and we’re in the middle of one now that, if it does take place, won’t roll into our facility until 2018. During the BTA event in Las Vegas, you spoke about the culture change AIS experienced. How would you characterize this evolution? HAROUFF: Roughly five years ago, we decided that we weren’t going to be just known as copier guys, because it’s turning into
continued on page 28
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Culture Overhaul, Extension into Managed Network Services Mark Evolution of AIS a commodity. We wanted to be more of a service organization, so we decided to provide deeper services inside our client’s offices. Often, our devices are on a network where if there is an issue with the printer, it may not relate to the device itself, but to the customer’s IT services or something else involving another vendor. We decided to take ownership of that problem and be more of a service provider to our customers. We had to convince our clients that we are now a technology company, which was easy to do as we were already touching their networks and doing things related to technology. The hard part was convincing our internal staff, and it made us aware that while we might be hiring people for the right skill set, maybe culture was the missing piece. We were having a hard time with them adapting and it took us about three years before everything sunk in with our staff. Previously, we hired people based on skill sets, but we would discover they were not the right fit because they didn’t mesh with our culture, which we never identified or talked about. In the last two years, we’ve established that culture and who we are as AIS. The first thing we did was identify our best staff members through the ideal qualities they had, then established some other characteristics we felt were important to us. We made
that our culture piece of AIS and set it in stone. Now, we interview to those culture attributes to make sure candidates fit those traits as well as offer the necessary skill sets. It’s elevated the people that we’re attracting to our company. The last six or seven hires that we have done have been among our finest ever. I attribute it 100 percent to the fact that we promote culture and hire to it. CLARK: Our core values motto is “We adapt and never lose our integrity to surpass expectations. We are AIS NOW.” Each core value is as follows: Adapt, Integrity, Surpass, Nurturing, Optimism and delivering a “Wow” experience. We talk about our processes and what we expect of our employees. We have a platform within AIS called “You Earned It,” which allows each of our team members to give and receive recognition from each other when exuding any of those core values. It challenges and encourages the entire team to live and carry out their duties by the qualities that we believe will make us successful. Nowadays, applicants are looking for a company that has direction as well as solid core values and a great culture. It’s more than just what products they carry. It really has been well adopted within AIS. HAROUFF: With the “You Earned It” program, our team receives “points” every quarter that they get to give to other
AIS employees cut loose with members of the rock band Warrant, which performed in concert at the dealer's customer appreciation event 28
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Dave Clark, Vice President of Sales and Marketing
employees when they see them going above and beyond as well as exuding any of our core values. As we have multiple offices, it’s hard for people to see that there are fabulous things going on in our company every day. This platform allows them to see that and reward fellow employees. The employees can exchange the points for gift cards, unique experiences or a day off work. What are some of your newer areas of business? Is it going the way you hoped? HAROUFF: Managed network services has taken us longer to get up and running than we anticipated. By December, though, we’ll be turning a profit for the first time. That is a huge win, because it is highly profitable service revenue. We would probably need about 20 copier sales to equal what we would get from a typical managed network service contract. This area is of a critical importance to the company going forward. Some dealers don’t want to get into that market because they don’t believe they can make money. But even as a copier dealer, we weren’t making money when we first got into the market; it took us three years and we knew what we were doing. So if you expect to make money in managed network services right away, you’re fool-
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Culture Overhaul, Extension into Managed Network Services Mark Evolution of AIS
ing yourself. It was somewhat of a defensive move, because we were losing to IT companies who were encroaching on our space. Every MNS account that we have buys additional products and services from us. They trust us so much with the keys to the kingdom of IT that when they want to add a phone system or a printer, they just do it. It’s really a game changer for us. The 3D area is where we haven’t done as well. We’re looking at 3D as more of a Trojan horse. What it allows us to do is start conversations and hopefully expand into other services that we offer. If people see you’re doing 3D, they’re going to think of you as a leading-edge tech company. We’ve installed 82 units in five years. It’s a department that by itself is still making revenue, but it still loses money every month. We’ve already put in the work required to become a 3D dealer and take it to the next level, so when the new vendor comes out and 3D gets more standardized, we’ll be the first one approached. I wouldn’t recommend 3D to any dealer unless they have managed network services in place. Is there a product or solution that you are looking to add in the near future? CLARK: We do a lot of document management, applications and workflow, but the area we haven’t had a lot of focus on is high-end EMR systems and ECM, the million-dollar-plus software implementations that offer us recurring revenue as well as professional services dollars up front. In working with our Fortune 1000, government, educational and legal customers, it has really 30
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helped them with long-term, large-scale document management solutions. What was your dealership’s most significant accomplishment or biggest win last year? HAROUFF: We’ve focused on making AIS a fun place to work. Two years ago, we implemented volunteer time off to make sure that we’re giving back to the community. We give everyone up to three days paid time off to volunteer for a charity. Our goal for this year is to achieve at least 300 hours of donated time, but we’ll be close to 500 by year’s end. We also updated every office to make it look more like a technology company, to be more warm and inviting. Soda, water and snacks are all free to employees. It’s like a mini Google or Facebook environment to help attract more millennials as well. CLARK: We’ve seen a measurable increase in performance and have exceeded KPIs in each of our departments. It directly relates to doing the culture piece. We’ve had five major wins this year, which were $500,000$700,000 deals. A majority of our revenue comes from up and down the street, which is profitable. The Clark County School District is a very large portion of our pie, and we have a lot of placements, close to 30,000 devices. What was your biggest challenge in the past year? CLARK: What comes with changing technology offerings and core values is adjusting the processes that measure up with our cultural transformation. One of the hardest to change is the
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sales department. If you have sales reps who make $200,000 or $300,000 a year and they’re successful, getting them to assimilate to that change is difficult. You’re trying to make them understand that the customer is looking for something different now. They want somebody who can identify what their business challenges are and provide solutions that can solve their needs. With our sales reps, we have them ask the customer eight simple questions that allow us to analyze what they could possibly be interested in or qualify for from all the solutions that we offer. The conversation revolves around asking about the customer’s business for the next six months, next year or next five years, and how we can help them achieve their goals. It’s getting better but it’s nowhere near where we want it to be. HAROUFF: We’re trying to get our reps to use more social media to do research on their clients through Facebook and LinkedIn, and that’s been a hard process. In the past, we were trying to do business the old-fashioned way by setting appointments over the phone, when for the most part, our customers are doing research online. Seventy percent of the buying cycle is completed before they call us. We’ve really put a lot of work into social media as well as our website, and we’ve been constantly redefining it to improve our online presence. At the same time, we’re trying to make sure that when people are coming to our website, they’re getting the relevant content they need to make them comfortable enough to call us. We have a game plan laid out for the next 12 months that’s really pushing more to the online experiences of the customers and prospects. We write 12-15 blogs every month and they were fun pieces. For example, we wrote about how we were the official copiers for the last presidential debate held here in Las Vegas. What we’re working on now is thinking about every question a customer would think about asking and writing content that speaks to it. So when the customers are doing online research, we’re going to create
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increase through organic growth. Over the next eight years, our plan is to hit $100 million. To do that, we need a strategic acquisition every other year and 14 percent growth. If we can do both of those, we can hit our $100 million target. Outside of work, what do you like to do for fun?
content to get people to think of us as the authority. Who do you see as your biggest competition, and how do you differentiate your company from them? CLARK: The true copier dealership is no longer our competition. The biggest threat to our market is the IT companies. IT and solutions firms are figuring out ways to capture the equipment that goes along with the solutions that they offer. More and more, we’re finding consultants, technology companies and IT providers that are playing in our space that
traditionally did not. With the manufacturers in general, we usually beat them because we have a way of delivering to our customers that they don’t, and we have a way to measure it that they don’t, which has to do with their size. Though there are a few manufacturers like Konica Minolta who have started to acquire the companies, talent and expertise to level the playing field. What are your goals heading into 2018? HAROUFF: We’d like to do a strategic acquisition, which I think will happen, and we’re looking at another 14 percent We Saw It In ENX Magazine
HAROUFF: Travel and concerts are my biggest two reliefs from stress. I have pretty diverse musical tastes; the last concert I saw was Britney Spears, and before that it was Def Leppard and the King of the Mic tour. We had a customer appreciation event a few years ago where we put on a full-blown concert with the 1980s band Warrant. We had t-shirts printed up that said AIS-Warrant Tour, Sold Out. It was a really fun event. CLARK: Travel is definitely one way to let off steam and focus. I have older and younger kids that bring me enjoyment in different ways. Seeing my older ones grow up, get married and have kids has been fantastic. I love watching the younger ones develop and experience the wonders of learning new things. ♦
November 2017 | www.enxmag.com
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Charles Lamb
Managed Services
Adding Managed Services Sales: What Not to Do Everyone has their own idea on how to successfully transform a sales organization to achieve success. I’ve seen hundreds of attempts at transformation that were not successful, and they all shared one common element: the lack of a plan. Without a strategy, transformation fails.
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he responsibility for a successful transformation is on the business owner, but often that responsibility is pushed off onto lower levels. Many attempts also fail because the “HOW TO” plan hasn’t been thought through or implemented. Still others believe that if you just throw managed services in the sales bag, it will sell. Some manufacturers and NOC venders also believe that as well. But if it were that simple, you probably wouldn’t be reading this article. Just having the back-end capabilities doesn’t guarantee success. Someone still has to figure out who will sell it, how to sell it, who will buy it, how to make money at it and so on. But first, you need to answer this: how do you properly merge managed services into an active sales organization? The destination should be well-defined and include a complete picture of what success would look like, both for the short and long term. Implementation involves the merging of two business models. It’s not just adding a product, so you must be crystal-clear on how things will proceed.
The Starting Point
What do I mean by the starting point? Successful transformation never happens without intent. You have to define what your company is today and what changes must happen to assure success for tomorrow. Every successful go-to-market plan begins with a true assessment of your company’s current capabilities. Without the assessment, you will most likely overlook segments of your plan that may contribute to a positive outcome. 32
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Ten years ago, I started analyzing sales teams and made the discovery that not just any sales organization can effectively sell managed services. This is especially true for those that have historically sold hardware or equipment. Just because it’s thrown into the sales bag doesn’t mean they’ll know how to sell it or who to sell it to. However, there are folks who don’t share this opinion. It’s difficult to achieve success in managed service sales if the underlying transactional business continually pulls their attention back to hardware. If the majority of your sales team struggles to produce quota today (which is pretty common) and managed services are pushed onto your best hardware sales reps, watch out! Most companies count on their best reps to bring in today’s revenue, and if they’re pushed into managed services without a great plan (especially with the longer sales cycle) it may weaken the company’s current performance and inbound revenue stream. I’ve witnessed this happen time and again. For example, an owner might believe they’re falling behind, so they quickly add managed services to their solution set because, after all, with someone handling the backend (i.e. NOC vendors) it makes it so easy and increases your competitive advantage, right? We also see the demand for managed services come from sales reps who believe that having more to sell will automatically make them more money. Regardless of the reasons behind the decision to sell managed services, make sure that before you hit “GO” you’ve thought everything through.
www.enxmag.com | November 2017
Cash Flow During Your Transformation
A very common failure point for managed service transformation is when the new focus on managed services causes the legacy sales side to drop. Then, leadership demands a full-court press to get everyone back to closing legacy (hardware) sales, thus the failure to transform. Just like every plan, you need adequate funds to assure success. A business can only go through a couple of failing months before everyone is so scared to try again that they give up. Many people try to prevent this by building a separate sales team for managed services, leaving the legacy reps focused on hardware. But just watch a managed service rep try to enter an account owned by a legacy rep: it’s not going to happen! Of course, you could split commissions on any managed service deal, but one side or the other is going to ask, “Why would I spend my time on anything paying half commission?” This is yet another failure point.
The Right Sales Team Model
You have to understand that times are changing and you’re NOT just adding more products to the sales bag—you’re changing the way your company goes to market. Isn’t it possible that as the decline of printing hardware continues, managed services could take the front position as your primary value to clients? It starts with your company’s go-tomarket plan, which defines the type of sales rep you want, how they’ll make money and what you expect from them. Test your current sales reps today by asking them to recite the “elevator pitch”
We Saw It In ENX Magazine
continued on page 34
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Adding Managed Services Sales: What Not to Do they’ll use for managed services. This will be eye opening, and if you haven’t trained them to understand and present your value proposition for managed services, they’ll fail. I think you’ll find that they’re more comfortable with sharing the value of their legacy products. Most sales reps don’t deliver (or understand for that matter) the value for managed services well. Whose fault is that? Even sales managers I’ve challenged with this have had a difficult time sharing the value of managed service deliverables. Why is that? Most likely, because they don’t have to know it! The question remains, if your value proposition to the entire world is going to include or be centered on managed services (ultimately), you should design your sales team model to support that plan. It’s not an add-on service, it’s the future! 34
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As you approach any new prospect, your top sales reps will need to completely understand and present your values to a higher-level target (mostly CFOs and owners). More importantly, they need to understand the target and be extremely comfortable articulating managed services’ value in the target’s language. Sales reps who are not properly prepared to deliver high-value presentations are a big failure point. Most MFP reps don’t understand outsourcing at all and thus won’t be able to share the senior level values of managed services to a new prospect without proper preparation and training.
Accountability
Another common, completely avoidable set-up for failure is not setting requirements or quotas for managed service sales. In other words, the reps
www.enxmag.com | November 2017
can survive without selling managed services. Where is the incentive? We’ve all heard the expression “The tail wagging the dog” but this isn’t that. In this case, since the company has not fully committed to selling managed services, no one is committed. The reason sales reps ignore managed services is because they can! I’ve said it before, many sales reps are coinoperated, and if they can make enough coin on the easier legacy solutions, they will. Sure, many owners will tell you they are in the managed services business. But the actual choice TO SELL or NOT TO SELL managed services is completely left up to the sales reps. My question is, “Why would you build a plan to transform your company’s future that no one is expected to follow?” ♦
We Saw It In ENX Magazine
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Erik Cagle
Business Profile
Nectron International Uses Superior Products to Gain Competitive Edge in Price-Driven Aftermarket Supplies Landscape In an industry where change is a constant companion and new technology threatens to completely erase time-tested ways of doing business, Mark Kardoush seeks to be a beacon of consistency by offering nothing but the highest-quality products to his customer base.
E
xperience is working in his favor. With more than 25 years under Kardoush’s belt, the president of Sugar Land, TX-based Nectron International has watched as technology has steamrolled through the business environment. The company hung its shingle in 1980 as a regional distributor of compatible typewriter and printer ribbon sales, but it wouldn’t be long before the word processor and personal computers would effectively put the kibosh on typewriter goods. Technology changes notwithstanding, Nectron desired to become a national distributor of competitively-priced, superior printing supplies. The company looked east for its answers, reaching into Asia for its product sourcing in the late 1980s to develop into a leader in the aftermarket supplies industry. With pricing such a fundamental driver in this space, Kardoush has parlayed the twin attributes of quality and consistency to carve out a sizeable portion of market share.
“With today’s competitive landscape and so many choices, it’s the commitment to offering the highest quality products that is our point of differentiation,” he said. “We’re actively involved with our suppliers. Many of the products they manufacture for us have our bill of material requirement. We dictate a lot of the powder they use, the OPCs, the firmware—that’s where we put a lot of focus and that is our value proposition. “It’s all about consistency. What [customers] bought from us yesterday, that’s what they can expect to get from us today and tomorrow. We won’t bounce between suppliers just for price, but rather work with our long-term suppliers to develop the highest-quality products at very competitive pricing. We’ve gained a reputation for consistency and our dealers have come to trust and expect it.” Nectron International currently offers a comprehensive menu of products including laser toner, inkjet, copier, fax, POS and desktop printer cartridges for
Mark Kardoush, President 36
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both office equipment dealers and large, private label customers. Located outside of Houston, Nectron relies on UPS Ground shipping to reach a majority of customers within one to three days, with guaranteed same-day shipping of all orders placed by 6 PM Central Time.
Culture of Loyalty
The company’s staff ranges between 25 and 30 employees, many of whom have been with the company 15-25 years or more. There’s also been an influx of younger, qualified personnel joining the fold over the last few years. The staff has fostered a family-like atmosphere at Nectron International, rich in loyalty, with honesty, integrity and hard work marking the corporate culture. Kardoush ensures that loyalty is reciprocated via competitive compensation and great benefits, which has been critical to staff retention. “Customers can rely on our sales force to provide impeccable service, along with the support of our CSR team and operations team,” Kardoush said. “The internal infrastructure at Nectron International is strong and well oiled.” Technical proficiency has long been a hallmark for Nectron International. Kardoush recognizes that a business model constructed solely around price is not sustainable long term, thus the company earns its customer stickiness via its thorough knowledge of the products. Nectron International only deals with tier one factories in Asia, and its collective knowledge base has resulted in a return rate of less than 1 percent. continued on page 38
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sales@nectron.com • 800-456-4678 725 Park Two Drive, Sugar Land, TX 77478
Nectron International Uses Superior Products to Gain Competitive Edge in Price-Driven Aftermarket Supplies Landscape
With a major infusion of printers constantly introduced to the market, Nectron International takes a methodical, measured approach to bringing aftermarket supplies solutions to its clients. Too often, Kardoush has watched other providers rush release of aftermarket supplies in the wake of new printer introductions, to disastrous results. While the goal is to be quick to market, Nectron International’s priority is to ensure all of its products are fully tested. “Unless we’re 100 percent certain that it’s going to perform perfectly, it won’t be introduced before then,” he said. “It must be confirmed to perform to the highest quality standards.” Confidentiality is a critical key for Nectron International’s success, with more than half of its business consisting of blind drop-ship orders for their dealer and e-commerce retailers. This includes MPS fulfillment orders. “Our commitment to maintain longterm business relationships with our customers is paramount, and it all starts with trust,” Kardoush said.
Growth Through E-Commerce
E-commerce is providing one of the strongest areas for growth beyond Nectron International’s core of office technology dealers and private-label customers. To that end, Kardoush has invested in an electronic data interchange (EDI) solution to facilitate growth. EDI provides accelerated and accurate data exchange and provides benefits including streamlined administration, accurate accounting and improved inventory management, all while lowering costs. “EDI was big for us,” he said. “Nectron was historically a traditionalminded distributor. EDI has helped us 38
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grow tremendously the last year or so. It was a big learning curve for us and our team. We’ve partnered with a couple of great EDI providers who can really give us a 100 percent agnostic solution with our clients. “We want to capture orders in the most efficient way possible. Investing in that technology is really the future for us. We’re excited about the ability to capture business from our clients in a host of various, efficient ways.” Color product has been an area of significant growth for Nectron International, thanks in large part to the dwindling costs of color laser printers. Kardoush remembers when a top-of-theline color laser device carried a price tag of $1,500. Now they can be obtained for as little as $300. That cost reduction has sparked increased sales to existing and net-new clients. Getting the word out about Nectron International hasn’t been a problem for Kardoush, who enjoys significant word-of-mouth referrals. That growth has been augmented by a talented sales team that is constantly cultivating new prospects. The company also relies on email marketing via blasts, but much of the success has come through expanding relationships with existing clients. “As the product mix continues to deepen, we’re able to grow our current clients exponentially so,” he said. “We’re a very nimble company that is able to adapt to customer needs, which is critical.”
High Talent Standards
In its quest for growth, Nectron International seeks to make further investments in talented personnel, expanding its sales team and network. The company has high expectations and
www.enxmag.com | November 2017
Nectron’s Value Proposition:
• Guaranteed same-day shipping • Blind drop-shipping • Private labeling • Custom branding • Superior customer service • Highest quality products – overall defect rate less than 1 percent • EDI ordering – 100 percent agnostic • Huge inventory on hand and ready to ship qualifications for client-facing employees and utilizes an extensive training program to increase their knowledge of the products and components. Maintaining customer confidence in the caliber of the product while delivering exemplary knowledge and service will go a long way toward ensuring growth for Nectron International. The ability to expand the product base with a measured approach—not rushing to be the first-tomarket but rather the best-to-market— and improving the new e-commerce route via EDI will all play a role in the long-term viability of Nectron International. “Our focus was never to go from zero to 100 miles per hour in a short time, but rather to take a more methodical approach to growth,” Kardoush said. “Our commitment to support our current customer base with the highest levels of professionalism, service, deep product mix and competitive pricing is our main focus to maintain steady growth. Along with our steady marketing efforts to bring on new business, this is our long-term strategy. Everything Nectron International has earned and become over its long history in the marketplace was organically grown and never by acquisition. It’s this approach that keeps us committed to continue to attract clients with similar strategies.” ♦ Contact information: Nectron International 725 Park Two Dr. Sugar Land, TX 77478 www.nectron.com (800) 456-4678
We Saw It In ENX Magazine
Erik Cagle
OEM Roundtable
Customization, Security Top Agenda for Manufacturers’ Approach to New Hardware Landscape
T
copiers and MFPs are being developed? What types of platform upgrades are proving most popular with end users?
In general, what trends are influencing the manner in which
COFFEY: As technology is accelerating more quickly, extended gaps between hardware upgrades become problematic. To keep up with the increasingly fast pace of technology and mobile workforce trends, it is important to develop copiers and MFPs as a platform with the capacity to evolve through firmware upgrades. PAGLIARELLO: Customized product is important. One of the things we’re doing is continuing to develop applications utilizing the Konica Minolta Marketplace, where we’re offering customized apps for individual customers to have a more streamlined workflow. For example, some customers want to simplify their control panel, so we can offer one that has a very simple look and feel. By utilizing a product called Chameleon, we can configure the control panels to meet their needs. CHAVERS: Security of the device, basic and wireless connectivity, cloud-based solutions capabilities and, as always, total cost of ownership are the key trends driving design decisions here at Lexmark. This focus allow us to build high quality yet affordable devices that deliver the most value to the customer. Many of these upgrades are becoming standard, along with OCR capabilities
he copier and multifunction printing device continues to grow and evolve to the point where end users are not as concerned with the specifications of a model as much as they are whether it can be tweaked to meet their individual needs. OEMs have raised the bar on speeds and feeds, and printing quality is not the concern it once was for users. So when all the basic needs are provided by a copier/MFP, where else can manufacturers elevate their offerings to set themselves apart from the rest of the pack? We’ve assembled an esteemed panel to answer some of the more compelling questions regarding hardware in the office environment. The panel consists of Shane Coffey, associate vice president, product management for Document Systems Products at Sharp Imaging & Information Company of America; Dino Pagliarello, vice president, product management and planning at Konica Minolta Business Solutions; Greg Chavers, vice president, North American Business Channels and SMB for Lexmark; Bill Melo, chief marketing executive for Toshiba America Business Solutions and Toshiba Global Commerce Solutions; and Hiro Imamura, senior vice president and general manager, Business Imaging Solutions Group at Canon U.S.A.
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Bill Melo, Toshiba
and print release functionality. The trend is to move these capabilities to the cloud to make implementation and delivery easier and more affordable, and to provide increased function and value over time. MELO: The types of experiences that we have with technology in our everyday lives with products like smartphones, virtual and augmented reality and cloud applications (including content streaming services such as Hulu and Netflix) create a set of heightened expectations about products in all categories, including business technology. For us, this means creating products that customers can personalize, that can be serviced instantly from the cloud and augmented on demand. Customers expect that their business machines provide a lot of the same benefits that the technology in their personal lives does. We want our customers to have a meaningful connection to continued on page 42
Customization, Security Top Agenda for Manufacturers’ Approach to New Hardware Landscape
Hiro Imamura, Canon
our devices in the same way that you do with your smartphone. The MFP needs to be an indispensable part of the office. The most popular hardware upgrades are dual-sided document feeders, stapling finishers and extra paper capacity. These days, virtually all devices are connected to a network, so the software enhancements are often geared toward scanning to a workflow or a shared destination on the network. IMAMURA: An increase of data and content security breaches are impacting companies on a global scale. Today’s MFPs play an integral role in the larger, connected landscape and, as such, MFPs must incorporate an array of advanced security features to safeguard sensitive business information, help ensure employee and customer privacy, and assist in providing regulatory compliance. At Canon, the process to design and manufacture office products with advanced security features starts early and is continuous. We practice proper utilization of in-house security resources and use independent security consultants in the development and testing of connected office equipment to ensure our MFPs are equipped with an abundance of built-in cybersecurity features. How are manufacturer updates to existing copier/MFP lines enhancing these devices while adding value? IMAMURA: Smart technology is more prevalent than ever, with the use of smartphones and smart home devices.
Expectations now exist that the technology device a customer purchases today will continue to evolve throughout its life with updates to operating systems and firmware. With the latest generation imageRUNNER ADVANCE platform, we bring this same “smart” concept to MFPs with the Unified Firmware Platform (UFP). Canon regularly releases a new version of the firmware that can be applied across the product line. This allows for updated firmware across the latest imageRUNNER ADVANCE line that may address vulnerabilities and add new functionality, including security features. UFP allows for continuous improvement and additional value-add throughout the life of the product. It also provides consistency across the product line for fleet environments. For example, an MFP that was purchased last year can be upgraded to include features introduced with the most current model. MELO: Our focus is on three areas: rapid customization, on-demand feature upgrades and remote management and repair. Our approach is to make the MFP a perfect and unique fit for each customer. We understand that every business uses their MFP differently. They have a unique language and utilize business applications and processes that are their own. We don’t believe in the one-size-fits-all commodity products that have been the norm in our industry. We want to deliver products that fit the way that you work, that can be enhanced or modified on-demand, that offer proactive service capability and can be addressed remotely for configuration, diagnosis and repair. PAGLIARELLO: We continue to be a leader in the security business. We offer three versions of bizhub Secure: Classic, Healthcare and Platinum. Platinum, the latest version, allows for the highest level of security against the highest level of ISO standards that exist: ISO 15408 is the standard for security and we comply 100 percent with it. We’re able to offer the ability from a professional services perspective to work with the customer during installation to configure
Dino Pagliarello, Konica Minolta Business Solutions
the product to their liking, behind the firewall, offering protection from internal and external threats. CHAVERS: The MFP platform continues to evolve to be a much more valuable asset to organizations in terms of cutting costs by printing less, improving their efficiencies through scanning capability, and helping protect small and medium businesses with enterprise-class security. COFFEY: In the past, manufacturer updates were implemented to keep up with bugs, new certifications or the newest operating system. Traditionally, a customer would need to purchase a new machine in order to obtain the latest features. Now, a simple firmware upgrade can provide your year-old MFP with a variety of powerful new capabilities. On our most recent Sharp firmware upgrade we added features such as support for box cloud storage, Sharepoint enhancements, 365 Exchange online, Sharpdesk Mobile, etc. This provides additional value to customer purchases, since you are able to get significant feature upgrades during the life of the hardware without the need to replace devices. Some manufacturers have established a vertical trend in hardware being configured to address the needs of specific industries. Can we expect to see more of this and why? CHAVERS: Lexmark has a long history of implementing vertical solutions based on our deep industry expertise. In fact, industry analysts point to this as one of
continued on page 44
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We Saw It In ENX Magazine
Customization, Security Top Agenda for Manufacturers’ Approach to New Hardware Landscape
Greg Chavers, Lexmark
our strengths. Our years of experience in an industry allows us to effectively tailor products to solve industry-specific problems. We’ve announced a number of new industry solutions this year, including Lexmark Smart Document Capture for Banking and the In-Store Capture Solution for Retail. COFFEY: We find that the needs of the customer are too diverse to try to make “fixed” vertical models. That is the value that our dealers add to our business model. By combining hardware, software and services tailored to meet the unique needs of a particular customer in a given market, our dealers can better tailor specific solutions to each type of customer, as opposed to pre-fixed offerings. IMAMURA: This trend toward vertically-driven solutions will continue, and we should see increased penetration into the small- and medium-sized business areas. Many of the key vertical markets still have critical documentintensive processes that are prime candidates for optimization through a combination of MFP hardware and software. These solutions can help streamline and improve operational efficiencies, reduce costs, and improve
customer outcomes, whether for patients in a health care settings, students and faculty in school systems, or clients in legal or financial services. PAGLIARELLO: Every vertical market has a unique need, which we can address with the utilization of our customized control panel and third-party software. RightFax is a server-based fax solution that can be combined with the MFP on a third-party server, which in a legal environment allows for the distribution of faxes electronically throughout an organization. Another example is health care, which through our relationship with third-party vendor Kno2, allows us to customize the control panel for the transmission of medical information. MELO: I think that every manufacturer is dealing with reduced page volume and an increasingly distributed office place by looking to differentiate their products and thereby increase their value to the customer. The focus on vertical markets is an effort to provide additional value by creating a good fit between the solution and the unique needs of the customer. While I think this trend will continue, companies are going about it in very different ways. Inkjet has made significant inroads within the commercial printing space. How do you see it playing out in the office technology sector? IMAMURA: While inkjet technology is a proven game-changer for the commercial printing space for its ease of use, convenience and cost-effectiveness, the adoption challenges are even greater in the office technology sector due to long-held biases for laser technology. Ultimately, the technology will need to demonstrate it can yield tangible advantages while keeping on par with existing technology with respect
WHILE INKJET TECHNOLOGY IS A PROVEN GAME-CHANGER FOR THE COMMERCIAL PRINTING SPACE...THE ADOPTION CHALLENGES ARE EVEN GREATER IN THE OFFICE TECHNOLOGY SECTOR DUE TO LONG-HELD BIASES FOR LASER TECHNOLOGY.
Hiro Imamura
to durability, serviceability, uptime performance and total cost of ownership. MELO: High speed, quick-drying inkjet has been available commercially for a long time. The PageWide products from HP have been well received and have a place in low-volume environments, but I don’t see them as a threat to us or other A3 manufacturers.
Shane Coffey, Sharp
COFFEY: There are still issues with speed and quality. There’s always a tradeoff between those two – if you want to print at optimal speed via inkjet, you still end up with draft print quality. Conversely, if you want optimal image quality, it is significantly less productive and requires special paper types. When printing on plain paper, the weaknesses are amplified, and even more so when printing on both sides of the paper with heavy saturation colors, such as those used for PowerPoint backgrounds or brochures. CHAVERS: We believe inkjet is a legitimate part of the market to monitor, but there are inherent differences between inkjet and laser technology that makes us believe the majority of the distributed output market will continue to be laser based. The quality of inkjet output and its limited capability is a major issue in the office technology sector. Moving forward, what variables will play a role in dictating the design and manufacture of copiers and MFPs?
continued on page 46
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We Saw It In ENX Magazine
Customization, Security Top Agenda for Manufacturers’ Approach to New Hardware Landscape MELO: We are always looking to enhance customer value by providing products with improved functionality, better usability and increased reliability. The current generation of e-STUDIO products, for example, greatly surpasses their predecessors in all three of these categories. We will continue to build better products that offer superior performance and exceptional value. CHAVERS: Variables that play a role include connectivity with wireless and mobile solutions, making sure there are highend scanning capabilities to drive workflow to the MFP, and ensuring the device is secure. It will become increasingly important to block malicious activity, whether that be internal or external – with a renewed emphasis on internal. COFFEY: The nomadic workforce, artificial intelligence (AI) and big data will all play a significant role. For instance, in order to sift through big data, you need AI. A good example of how you can use AI with MFPs is Sharp’s Machine Intelligence Call Avoidance System, or MICAS. This is an electronics troubleshooting/ monitoring technology that is currently installed on more than 100,000 Sharp MFP units sold to our customers. It monitors every sensor, motor and PCU in a device in real time. MICAS can proactively communicate to a service group to alert technicians to any potential problems. In essence, by parsing through and translating the big data, MICAS is able to help our dealers save on service costs and ultimately make them more profitable and cost effective. IMAMURA: Some variables include the need for increased 46
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network and device security in a connected world, cloud computing and accessibility. Today’s workers crave flexibility and ease of use, while today’s employers seek the ability to safeguard confidential information as work becomes increasingly mobile. MFPs and copiers, therefore, need to meet both demands, and incorporate capabilities that support such advanced features through cloud workflow and storage solutions. These include our Therefore Online solution and integrations through our partners like Box, as well as network and device security. Manufacturers may also show a renewed focus on serviceability, stressing solutions’ machine-learning capabilities to ensure that their equipment has the most uptime possible, as well as using predictive maintenance to try to pinpoint and address any potential issues before they even arise. PAGLIARELLO: Environmentally-conscious solutions is certainly one of the top variables for us. Konica Minolta has a long-term environmental strategy that goes out to 2050. Every year we work towards the strategy of lowering our CO2 emissions. Our environmental strategies include recycled plastics, making sure that we have a low typical electrical consumption value and utilizing organic substances in our toner technologies. We continue to utilize less power and raw materials in order to produce our toner. Another area is accessibility, manufacturing product that keeps people with disabilities in mind, from the handles on the trays to clear windows that allow you to clearly see paper levels. ♦
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Tim Votapka
Business Management
Creativity is Becoming a Matter of Policy in Company Manuals
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ight, so there is this item called an employee handbook or policy manual and it should be on your radar because it is the document of ethics and standards that drives your organization forward and insulates it from any actions or behaviors that block progress. And if your current manual is in a format that isn’t engaging, enlightening or even exciting to your staff, then a change is certainly due. Company leaders today have different motivations for confronting the issue of policy manuals. Some have reached the headcount numbers that they feel warrant a more formal publication of company rules. Others have heard some incredible horror stories about what other business owners have had to confront in their camps. You may have already started the project by harvesting some relevant content from your network of helpful advisors and/or the wonderful world of websites (WWW).
Times Roman font with a cover sheet that looks like your middle school book report. No offense, but that homework assignment didn’t look all that interesting then, so why would an even thicker stack of paper be any more appealing to review, much less digest? Typography, layout and design are wonderful tools. With a professional eye and handler, they can be applied to a publication that puts your company image in a far greater light among your own people. like vacation time, cell phone expenses and use of company vehicles and property. And there are also the rules and regulations governing employee behavior (or lack thereof at times), conduct, ethics and so on, all of which add up to a document aimed at delivering some form of legal protection to the organization. Yet the other major purpose for an employee manual is to get your staff on the same page and even excited to be a part of the action. So the manual itself
IT HAS TO DO WITH HOW WELL YOU PACKAGE THIS MATERIAL AND HOW WELL IT IS RECEIVED AND UNDERSTOOD BY A VERY IMPORTANT TARGET AUDIENCE — YOUR STAFF. But your next move is crucial. And it has nothing to do with legal jargon or state employment law. It has to do with how well you package this material and how well it is received and understood by a very important target audience — your staff. Keep two purposes in mind when creating a new employee manual or handbook. Of course, you want to clear up things 48
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must be viewed as a resource for your business and its employees as well, and to do that you really need to breathe some life into the document and treat it well. Here are a few thoughts to get that process on the right track:
Change It!
Get out of the standard practice of cobbling up a long, dry series of pages in default
Be Creative.
Employee handbooks go through one of the three scenarios once they are released. They may sit in a desk drawer without seeing another day’s worth of fluorescent light. They could gather dust on a shelf alongside some old unused coffee mugs and family portraits. And if they are digital, well that’s a realm of desktop icons we can’t even begin to imagine. Many employers have escaped this outcome by putting some creativity into their policy manuals, adding a conversational writing style that can make a policy booklet fresh, readable and engaging. Other firms are even using video or digital formats with page-to-page navigation and graphics, bringing real creativity to the piece. I have even seen interesting examples that borrowed the charm and fun of a children’s book in order to integrate a goal-oriented theme. Being creative is not out of line at all!
Spot Check Your Staff.
Now THIS is where the fun can really take shape, especially if you have the personality and sense of gamesmanship
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We Saw It In ENX Magazine
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YET THE OTHER MAJOR PURPOSE FOR AN EMPLOYEE MANUAL IS TO GET YOUR STAFF ON THE SAME PAGE AND EVEN EXCITED TO BE A PART OF THE ACTION. needed to be a leader. Employee manuals can be loaded with terminology that pleases lawyers and labor court judges while leaving your typical staff member in a perpetual state of yawn. No one does well when they encounter a term, phrase or symbol they do not understand, or something they have a partial understanding of at best. So once in a while, walk over to one of your employees and ask them to pull out their copy of the company manual. Open up any random page, pick a word and ask that staffer for its definition. Ask them to use it in a sentence. Do this for a few words throughout the booklet. If they falter,
hem or haw for any reason you should take this as a sign of a misunderstood word. When you spot this, have the employee look it up in a dictionary and go through each available definition of the word until they have a complete understanding of the term and how it is used in the context of the policy manual. Back this up by having your employees create sentences that demonstrate they can apply what they know. This little practice, when done with the right spirit of play, can create an amazing effect among your team and it is very likely they will keep the manuals in a better place in their minds moving ahead. ♦ We Saw It In ENX Magazine
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Ken Edmonds
Service Management News Briefing
Creating a Uniform Process for Your Business: How to Do It and Why
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Imagine you are traveling and decide to stop for lunch in a town you have never visited before. You are hungry for a burger and you have two choices: a local place and McDonalds. Which do you choose? Most people choose McDonalds. Why? Because they know what to expect, and they always get what they’re expecting.
ow does McDonalds achieve this level of consistency? By having a well-documented process to produce any menu item. Each team member is trained to make everything the exact same way every other team member makes it.
having the required signatures and paperwork when bringing in a sales order. Then, when the equipment is delivered, it’s often missing options the client expected. For instance, it might not have a network connection when the client needed the device to be networked.
What Is a Uniform Process?
How Do You Create a Uniform Process?
A uniform process is a series of steps or actions taken to achieve a specific goal or result. For our discussion, we will talk about the series of steps taken to accomplish a specific task in your company. When technicians follow the process closely, you can expect a consistent result. A process is like a recipe. You need to follow the recipe if you want to achieve uniform results.
Why Do You Need One?
During my career, I’ve had several experiences that have driven home the need to develop specific mandatory processes. When I started my own company, initially problems came up fairly frequently. Some were minor, and some not. I quickly realized that many of the issues occurred because we were making it up as we went along. For example, a customer might need a loaner while we were waiting on parts. The tech would come to the office to get permission to take the loaner out, but no paperwork was ever completed. Sometime later, we would need that loaner for another client, but we wouldn’t know where it was. In other cases, a customer would bring a device in for an estimate, decide not to repair it, and we would be left with the device and no legal way to dispose of it. Another common issue in most dealerships is sales representative not 50
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After you identify a task that you want to standardize, there are several steps to create a viable process. For our example, we will develop a process for conducting service calls.
Identify areas that need to be documented
When completing a call, there are always going to be actions that cannot be specified because of the variable nature of service calls. Here, however, we will work on documenting those actions that should be the same for every service call.
Work through the action being documented
1. The first activity that occurs on a service call is the technician’s arrival at the account. This can and should be included in the process. The technician needs to check in with the responsible party, the key operator (keyop) or manager. He should make sure that if the machine will be out of commission during the visit, the keyop or manager needs to be made aware of that, and any users should be notified. 2. The next step is to ask who was operating the device when the error occurred and ask to speak to that person. This way, the technician can collect as much information about the issue as possible.
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3. The next phase is to troubleshoot the problem. This step is not something that can be formalized. 4. After identifying the problem and resolving the issue, every function on the machine should be tested. Every service manager I know has had to deal with a customer calling back about some issue right after a technician left. A checklist should be part of the process to help make sure that the technician doesn’t overlook any item. 5. The technician should also make sure that the machine is clean. 6. I would also require the technician to load the machine with paper and empty the waste toner while on site. Failing to do so can cause additional equipment or customer issues. 7. After completing work on the equipment, the technician should check out with the keyop or office manager before leaving. You may also want to verify the toner stock on hand. 8. Finally, the necessary paperwork should be completed and signed by the appropriate contact.
Identify specific actions that might be overlooked
In the service call process, we discussed several items that are easily overlooked: • Talking to the keyop or manager • Cleaning the machine • Testing all functions • Loading paper • Emptying waste toner • Checking toner supply • Checking out with the keyop These areas all need to be specifically identified in your process documentation. Where possible, a checklist should be created and included as part of the service-call paperwork.
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Creating a Uniform Process for Your Business: How to Do It and Why Test the process to make sure it is correct
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The last stage of creating any process is to have it field tested. Have your more reliable technicians work through the process on some service calls and then report back with any suggestions for improvement.
What to Document
Now that we know how to create a uniform process for specific tasks, we need to identify areas we want to document. Think of the issues that disrupt your department’s efficiency and see if you can improve it by developing a process for these things. Here are some suggestions: • Loaner requests
www.enxmag.com | November 2017
• Installation paperwork and site surveys • Service calls • Car stock management • Parts ordering In your case, some or all of these may already be documented, or they may not apply to you. But I’m sure there are other issues not listed that need a process developed. Also remember that processes are not static documents. They should be reviewed and revised on a regular basis.
Inspect What You Expect
All of the above is an exercise in futility if you do not enforce compliance with the process. When visiting We Saw It In ENX Magazine
with service managers, I often hear about technicians failing to follow procedures, or sales personnel failing to give technicians the information they need. All of these are failures of management to inspect and enforce the existing policies and procedures. Once a process is documented, it must be enforced and penalties applied for failing to follow it. Once you start enforcing processes, and impose the penalty for failing to comply, then you will soon reap their benefits, providing a consistent product to your customers and enjoying a more efficient department. ♦
Printer Tech Tip
HP LaserJet M3027, M3035, M4345, M5025 MFP, M5035 MFP, CM3530 MFP, CM6030 MFP, CM6040 MFP - Light copies from ADF or flatbed scanner.
W
ith the above listed HP laser jet MFP printers reaching the age they are, LPI has seen an increase in cases where the copy output is lighter than the original – but yet print jobs are printing perfectly. This is basically do to dirty optics in the lamp within the flatbed scanner. Most cases the lamp is not replaceable other than replacing the entire flatbed scanner assembly. The “DARKNESS” setting can be adjusted from the copy screen for good quality output but this is only for the current copy job and has to be changed for every copy job. To set the default darkness for all copy jobs access the following menu: “ADMINSTRATION”, “DEFAULT JOB OPTIONS”, “IMAGE ADJUSTMENT” and select darkness.
*NOTICE* Selecting a setting of 8 actually results in a lighter copy.
Now if you select the setting of zero, the copy screen will have the darkness at maximum:
Default copy screen with the setting at 8 (default is 4):
In most cases changing to a setting of 3 will produce good quality copy output. ♦ This Printer Tech Tip is contributed by LaserPros (www.laserpros.com). Email any questions to marketing@laserpros.com We Saw It In ENX Magazine
November 2017 | www.enxmag.com
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Britt Horvat
Technical Tips
Xerox 550 & DCP 700: Rebuilding the Second BTR Roll Assemblies (DC250 Style), Part 2 Xerox Docucolor 240, 250, 242, 252, 260, WorkCentre 7655, 7665, 7675, 7655, 7665, 7675, Xerox Color 550/560/570, C60/C70, DCP700/700i/770, Color Press C75/J75
W
elcome back to the lesson in patience which we bravely began two months ago. In that first article, we took the 2nd BTR assembly of a Color 550 almost all the way apart. Not an easy procedure, but doable given enough time and patience. Now we’ll soldier on and finish the procedure, as we lift the core of the unit out and replace the consumable parts within. Afterward, we’ll also talk about the four versions of the units within the DC250 style, with a close eye on what’s the same and what’s different about them. Let’s start where we left off in the procedure. After you extract the pivot shaft through the front end of the unit (step #15 in the previous article, see photo #10), you can now get to the most important components in the assembly, which are usually sold in a kit (DC700BTRK): 2nd BTR Roller, Cleaning Brush, Cleaning Blade, and Wax Bar. Below is how the procedure continues:
550 2nd BTR Assembly 54
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16. Lift the transfer roll and cleaning assembly out of the body of the unit. You can lift the front end up and out first (see photo #11). Be gentle with the fragile foam gasket strip on the front end, which needs to remain intact. Also watch the Mylar recovery blade, which is along the right side of the assembly, next to the transfer roll. 17. Vacuum out the waste toner in the body of the unit. (see photo #12). Again, be gentle
Photo #10: Extract pivot shaft out front end
Photo #11: Lift the transfer roll and cleaning assembly’s front end upward to get the assembly out of the base of the unit. We Saw It In ENX Magazine
with the Mylar recovery blade. 18. Remove the front end cover from the transfer roll and cleaning assembly (1 screw, see photo #13). With this cover off, you can remove the transfer roll, the cleaning brush, and the wax bar assembly from the metal framework of the cleaning blade assembly (see photo #14) 19. Replace the wax bar. The old wax bar’s metal plate is
Photo #12: On the left is the body of the unit where waste toner will be found. On the right is the transfer roll and cleaning assembly.
Photo #13: Remove one screw from front end plate of transfer roll and cleaning assembly continued on page 55
Photo #14: Components of the transfer roll and cleaning assembly
Photo #15: Blade tension springs
Photo #16: Removing the cleaning blade from its metal assembly (1 of 2 screws shown in photo)
adhered to the rest of its framework by double sided tape. You’ll need some tape to stick the new wax bar back in place. Be gentle with this piece: sometimes they crack, which is OK as long as all the pieces remain in place on the metal plate. This wax bar helps lubricate the cleaning brush so that it lasts longer. 20. Remove the tension springs on the cleaning blade assembly (one at the front end and one at the rear end, see photo #15) 21. Pivot the cleaning blade assembly open and remove the 2nd BTR cleaning blade (2 screws, see photo #16) 22. Reassemble everything. Take your time and make sure things fit right against each other, but don’t force anything. There are a few places in this unit (especially near the cam plates of the transfer roll) where delicate parts are in harm’s way. If
something is not quite in the right spot and you push too hard against it, you might damage some of these parts. Refer back to the disassembly procedure and the photos to help see how everything should go. Also make sure to pay attention to which screws go where (which are machine thread and which are plastic thread is important). Now, let’s review the four versions of 2nd BTR assemblies within the DC250 style: • DC250 version: 059K45987 / 059K88420 (for: DC240/ DC242/DC250/DC252/DC260, WC-7655/7665/7675, WC7755/7765/7775) • 550 version: 059K68395 (for 550/560/570, C60/C70) • 700 version: 059K55905 / 059K78323 (for DCP 700/700i/770) • J75 version: 059K79314 (for J75 / C75) The 2nd BTR roller, brush, blade and wax bar are all the same for the 550, DC700, and J75 versions. Only the DC250 version uses different internal parts. Note that the DC5000/7000/8000 are extremely similar to the 700 or J75 version, with the exception of the cleaning blade, which is the only unique piece. The procedure showed a 550 unit, but the job will be similar for all of these, with a few slight deviations. The procedure should suffice to get you through rebuilding a 700 version or a J75. The DC250 version is supposedly easier to take apart. The gears on the rear of the unit include a pair of gears for the transfer roll drive and another pair relating to the cam drive. Below is a list of all the varieties of each of the gears for identification purposes: DC250BTRDG – 2nd BTR Roll Drive Gear 39T (at rear end of roller) (fits all versions) DC250BTRDIG – 2nd BTR Roll Drive Idler Gear (17/43T) (fits DC250 version only) DC700BTRDIG – 2nd BTR Roll Drive Idler Gear (24/44T) (fits DC700, 550, & J75 versions) DC250BTRCG – 2nd BTR Cam Gear (Retract Gear) (67T) (interchangeable across all versions) DC250BTRCIG – 2nd BTR Cam Idler Gear (30/28T, Black) (fits DC250, DC700, & J75 versions) 550BTRCIG – 2nd BTR Cam Idler Gear (30/24T, White) (fits 550 version only) We Saw It In ENX Magazine
For the front end of the unit, we’ll only show the 550 version, as the gear layout is the same for the DC700 and J75 versions (note that the DC250 version has no gears on the front end) DC250BTRFC – 2nd BTR Front Cam / Actuator (fits all versions) DC700BTRG40T – 2nd BTR Front 40T Gear (fits 550, DC700, & J75 versions) DC700BTRG16T – 2nd BTR Front 16T Gear (fits 550, DC700, & J75 versions) That’s a wrap. Hopefully the procedure makes tackling one of these units less intimidating, as well as less time consuming. Happy repairs folks! ♦
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NOVEMBER 2017
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