Managed Print Services Within The Copier Industry

Managed Print Services Within Our Industry

Fred BergerPresidentDocument Technology Solutions Consultingwww.documenttechnologysolutions.com

“Partnering with Dealers to Reach the Next Level”

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Agenda

• DTS Consulting Introduction• Key Industry Trends• Changing Demands of our Customers• Changing Landscape of Solution Providers• Benefits of Managed Print Services:

– For Your Customers– For Your Sales Reps– For Your Dealership

• Keys for Success• Summary • Next Steps • Questions

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DTS Consulting

• An Independent Industry Consulting Firm dedicated to “Partnering with Dealers to Reach the Next Level” • 35 years experience helping companies grow and improve

overall performance through change and innovation• Access to Alliance Partners representing some of the best

expertise in the industry• President of the 4th largest Sharp Dealership in the country• COO of a $20 million Dealership• Vice President Danka Acquisitions• Vice President of Ricoh Business Systems - Ricoh’s Direct

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Key Industry Trends

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Copier Industry• Speeds and

Feeds

Digital Revolution• Paradigm Shift

Explosion in Color

Technology-Driven Solutions• Managed Print

Services• Electronic Document

Management• Scanning (capture)• Processing (manage)• Integration (making

software work)• Routing

(storage/retrieval

Defining MPS

Active management of the organizationsentire hard copy fleet, document processes,and hardcopy strategy. This is more than justa financial / CPC arrangement. It typically(but not always) includes outsourcing thismanagement and support to an externalvendor.

Photizo Group

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Key Industry Trends

Managed Print Services is growing at a 27%

compounded annual growth rate

Customers are evolving as they gain experience

Best Practices still being defined

By 2013, up to 50% of resellers in North America

will be acquired or go out of business due in a large part

to their inability to be successful with MPS

The MPS market will exceed $32 billion for 2010

Of the 25+ software platforms available, at least

25% will be absorbed or consolidated into larger

packages and companies

Only 10% of Dealers consider MPS a core part of their

business

Within 5 Years: 40% of Devices under MPS states

HP!

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Our customers are looking to partner with vendors who can meet their changing demands

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Customer Needs

Reduce operating costs

Manage their assets

Reduce their IT distractions

Outsource printer help desk, training

and support

Provide one vendor solutions

Reduce their carbon footprint

(green)

Changing Landscape of Solution Providers

Solution Providers

Traditional Copier Dealers

IT Companies

Value Added Resellers ( VARS)

Supply Vendors

Super Stores

Internet Companies

Hybrid Copier Dealers

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Benefits for Your Customers

Increased Productivity of IT Employees• IT no longer supports printer helpdesk, training, and support• 40% fewer IT help desk calls• Eliminates burden of sourcing and managing their output fleet• Only one vendor to deal with• Reduces IT distractions

Increased Productivity of all Employees• Printers are retired and/or redeployed for maximum productivity• Workflows and Floor Plans are analyzed insure proper device allocation

Reduces Cost for Companies• 25% lower consumable costs• 5% lower acquisition costs• 10% - 40% overall cost reductions

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Benefits for Your Customers

Improved Efficiency • Provides one source for all service calls• Provides automated supply replenishment• Eliminated closet and obsolete supply inventory

Centralizes Asset Control• Fleet is optimized centrally based on workflow assessment• IT regains control over printer purchases and costs

Supports Corporate “Green” Initiatives• Replacement of old or high energy consumption devices• Creates responsible disposal options for consumables and printers• Recycle program for empty supply cores

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Benefits for Your Sales Reps

Greater Pipelines• Customers wiliness to reduce costs, increase productivity, increase profit• Companies spend between 1% and 3% of revenue on document output• Companies will spend to support their “Green” initiatives• For every MFP there are 4-10 printers

Help vs. Hurt to Customer• IT does not want to deal with Printer issues• Helps IT increase employee productivity and morale • Business consultant vs. sales rep

Creates Customer Open Door Policy• Meet and align with all employees to discuss document workflows• End result…Increased credibility and trust from employees

IT Spending up 4.6% in 2010• $3.4 trillion will be spent• Document Management in top ten spending categories• Touch budget not usually available

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Benefits for Your Sales RepsGenerates Higher Revenue

• Incremental business opportunity• Average transaction is much greater

Generates Higher Gross Margins• Not a commodity item• Less competition

Generates Higher Commissions• More revenue• Higher gross profit

Repeatable Solution• Vertical market solutions• Horizontal market solutions• Best Practices

Less Competition/Increased Differentiation

• Not all dealers market/understand

Not a Commodity Sale/ROI Sale

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Benefits for Your DealershipIT Spending up 4.6% in 2010

• $3.4 trillion to be spent in 2010• Companies spend between 1% and 3% of revenue on document output• Companies are willing/must spend $$$

Less Impacted by Economy

• Weaker economy creates more cost reduction opportunities, stronger economy creates more upgrade opportunities• IT departments looking to outsource “non” IT functions

Become the IT Partner with Customer

• Act as the IT help desk • Provide end user training and support to IT customers

Wider & Deeper into Present Account Base

• More and larger present customer opportunities• 6-7 printers for every MFP, helpdesk support, printer aftermarket

Stronger Business Model

• Less dependent on economy• Wider/deeper within customers

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Benefits for Your DealershipPull Through Revenue of MFP’s

• Optimization of printer fleet leads to more MFP unit sales• Reduced carbon footprint leads to replacement of older less energy efficient units

Increased Productivity of Sales Reps• More revenue opportunities, customers willing to listen about costs reductions• Long term contracts with replacement opportunities ongoing

Customers Less Likely to Switch Vendors• Become a valued business partner to IT• Cost of switching vendors high

Reduced Competition• Separates your company from traditional copier dealers• Difficult to displace – lead with a more consultative approach

Increased Revenue Opportunities• Increased offerings• Customers looking for one vendor to partner with

Higher Gross Margins• Not a commodity• Higher aftermarket revenue & gross profits

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Keys to SuccessExecutives

Dealer Principal Commitment

• Principal MUST be the driver #1• A Firm Understanding of Managed Print Services

Focus on Change• Must stay focused on change to be successful• Requires proper planning• Can not do part time, must be part on business strategy• Everyday business can not distract from success

Revised Business Strategy

• Mission of company changes• Customer value proposition changes• Goals of the company change

Business Plan

• Need to revise annual business plan – revenue, costs, expenses, etc.• Investment, software, demo room, support, etc.• Vendors, alliance partners, products, outside resources

Plans to include• time lines to accomplish tasks• reviews of progress• status updates• Agreement on vendors and product offerings

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Keys to SuccessSales

Vendor Selections, Alliance Partners, Products

• Printers• What printer line to carry?• Who will be your Printer supplier

Marketing Plan

• Start small• Should include a 4 point strategy –customers, prospects, vertical markets. larger accounts?• Determine program offerings: CPP, supplies inclusive, hardware included, etc• Are Alliance Partners Needed?• Brochures to support managed print services offerings and printers• Web site – must focus on managed print services offerings and printers

Sales Plan & Organization

• Demo’s must focus on MPS software solutions and printers• Lunch & learns focused on MPS software solutions and printers• Team selling – a sales reps can not know everything

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Keys to SuccessSales

Sales Training

• Solution selling vs. box selling• Business partner – rather than a sales rep• Assessments• MPS software knowledge – must be able to talk the talk

Sales Support Organization

• Pre sale support• Post sale support• Specialist?

Activity Tracking

• Need to establish MPS key performance indicators• Demos, appointments, proposals• Assessment engagements

Sales Compensation Plan

• Must include a Managed Print Services component (driver)• Both sales rep and sales managers

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Keys to SuccessSales

More In-Depth Account Reviews

• Must include a MPS workflow review• Team account reviews

Performance Objectives

• Objectives should include: % of MPS revenue, # of Demo’s, # of transactions, # assessments

Key Sales Rep Attributes

• ability to ask probing questions• qualifying abilities to include prospect’s business processes and workflow• Line of Business Knowledge• technology driven

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Keys to SuccessService

Service Readiness

• Service technician training• Technical support

Parts Planning

• Who will be your parts supplier?• Will your supplier perform training?• What parts do you need to stock?

Service Performance Objectives

• How many technicians need training?• How many printers can a technician handle?

Will you offer help desk support?

• Who will handle this• Will you use remote servicing?

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Keys to SuccessOperations

SuccessSupplies• Who will be your supply vendor?• You should choose a supplier that can drop ship FREE• You should choose a Supplier that carries ALL brands• Will you use OEM vs. non- OEM• Will you have your supplies Private Label?

MPS Software

• Do you plan to invest in your own MPS software?• Will use an outside vendor MPS software

Leasing companies/programs

• What leasing companies will you use?• Who will bill customer?• What programs does leasing company offer ie: sale and leaseback?• What leasing programs will you offer?

Demo Room / Show Room Upgrades

• show room equipment must include MPS software 20DTS Consulting

Summary

Technology is Driving Industry Change at a

Rapid Pace

MPS & Electronic Document Management are Critical Components

of this Change

Your Customers are looking for vendors to help the leverage this

change

The opportunity is there to establish a significant

market position which will provide long term revenue

and profitability

Staying ahead of competition requires

a well defined strategy and flawless execution

Create a plan before you

jump in

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Next StepsUnderstand Managed Print Services

What do you plans will you offer?

Discuss Roles & Responsibilities• A

ssign a team and team leader

Evaluate Abilities• D

o you need outside help?

Create/Agree on a Timeline• U

se SMART goals

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Questions ?

For More Information Contact:

Fred BergerPresident

Document Technology Solutions Consulting, Inc.727-403-3936 ©

[email protected] Technology Solutions Consultingwww.documenttechnologysolutions.com

“Partnering with Dealers to Reach the Next Level”

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