An Odd Case of Mistaken MPS Identity

--by Rob Sethre, Photizo Group, Sr. Consultant

A curious press statement released this week by the Printing Industries of America Association (PIA) was cause for some confusion and discussion. The trigger event was a routine announcement by Hewlett Packard regarding their MPS activities.

See the entire announcement here:

http://www.hp.com/hpinfo/newsroom/press/2009/090713b.html

PIA took obvious offense at this announcement and issued a stern statement in response.

Here is a sample of the tone of the announcement:

“It is with disappointment, therefore, that Printing Industries of America learned of HP's latest offering -- managed print services, which was advertised with great fanfare in this morning's Wall Street Journal. ‘We are always concerned when a major vendor in our industry deviates from its core offerings to venture into managing print solutions, which the private sector has competitively provided for hundreds of years,’ notes Michael Makin, President and CEO of Printing Industries of America.”

See the entire statement here:

http://www.piworld.com/article/pia-issues-statement-regarding-hp-managed-printservices-pi-news-409734_1.html

Most readers will be somewhat puzzled when trying to put the pieces together. Hundreds of years? Deviating from their core offerings? Less polite commentators will probably have their comments and criticisms at the ready to expose the association’s [choose your own extreme descriptor].

But actually all we have here is a case of mistaken identity.

In past years, there were certainly different perceptions and definitions surrounding the topic of Managed Print Services. Even today, discussions are ongoing to achieve a (more or less) uniform understanding of the MPS concept. We may not have reached that final goal yet, but most industry participants would presumably agree that we are getting close. In spite of a lively ongoing discussion, most of the differences involve nuances as opposed to totally different understandings of the MPS concept.

Or so we thought . . . . Just when we had achieved some recent progress, this new event reminds us how far we are from a generally accepted definition for MPS. Possibly even more surprising, there appear to be even two completely separate and independent areas of usage by two groups that are hardly known to each other.

On the one side, we have the printer/MPF vendors and channel partners. Managed Print Services, as mentioned, has evolved into an increasingly uniform definition to cover print consulting, hardware, consumables, services, applications, fleet monitoring and continuous improvement of document output flows.

On the other side, we have the world of commercial printers. While the key trend here is the transition from analogue to digital print job management, the same MPS phrase has emerged, yet with a totally different meaning. Complementing the traditional print providers, companies like Innerworkings, WorkflowOne and NewlineNoosh provide virtual print procurement, production and fulfillment. And these offerings have also been labeled Managed Print Services.

Providers of Managed Print and Promotional Marketing Services

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PITNEY BOWES FORMS STRATEGIC ALLIANCE WITH NEWLINENOOSH TO EXPAND MANAGED SERVICES FOR PRINT

-- Relationship Leverages Companies' Managed Services Expertise --

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And now the real source of discontent: MarketSplash (http://www.marketsplash.com/res/home.html).

This is a service introduced by HP not too long ago that enables web-based print job submission, production and fulfillment. Following the launch of the MarketSplash service there was a great deal of discussion among industry players as well as between them and HP. The concern was that the production and fulfillment segments would be increasingly monopolized by HP, to the detriment of the independent printers.

The MarketSplash initiative has been viewed with a high level of skepticism by the commercial printing industry. Whether the concern is justified or downright paranoid is difficult to judge, but obviously that experience raised the level of sensitivity in that sector. So when a new HP initiative involving MPS was announced, they felt it was necessary to make a clear statement and address the issue. But the issue addressed was actually not at all related to MarketSplash, the commercial printing industry or their separate definition of MPS.

That is the nature of mistaken identities. They may have realized their mistake by now, but nonetheless the event draws attention to the need for clarification.

Blame the industry for not coordinating their concepts and definitions. In our own perspective and opinion, the MPS concept that is gaining strong momentum currently is the task of managing decentralized printer/MFP fleets. I wager that this will most likely be the future common understanding and definition. The commercial printing sector can choose their phrases as they wish, and without meaning any ill, that parallel concept and definition of MPS will presumably have to be redefined or at least renamed.

The Photizo Group

Insight, Perspective, and Success for the Managed Print Services Market

And Now There are Three

During the course of our business we hold discussions with many global IT managers and CIO's. During these discussions, the question frequently comes up as to who can provide a true global MPS program with consistent support, infrastructure, and delivery. Until recently there were only two companies that could provide a consistent level of global support for a Managed Print Services program, Hewlett Packard and Xerox. However, recent increasingly make it clear that there is an emerging third option.

Ricoh USA Announcement
On June 9th, Ricoh announced new and expanded business services in North America. Ricoh-USA now has a number of outsourcing offerings, including defining two major 'categories' of services: Managed Print Services and Managed Document Services.

The Ricoh Managed Print Services program includes four basic phases:

• Assess: Provide current-state costs and workflows, plus device maps
• Design: Recommend ways to improve productivity, TCO, sustainability and security
• Implement: Executes the plan to realize these benefits
• Manage: Achieve project cost savings and productivity gains

The Managed Document Services program utilizes extensive assessments to result in the: "Transformation of an old workflow system of a business to a new and improved version that introduces more evolved technologies which reduces risks, enhances efficiency and makes document management easier for the end user." (This is the third stage of Ricoh's 4 stage process.) This follow's the April 4th announcement of expanded Managed Print Services offerings by Ricoh-Europe.

A consistent theme for all of these programs is that Ricoh is moving beyond basic 'fleet management' to offer services that address the third stage of the Photizo Group customer adoption model for Managed Print Services (the first two stages primarily focus on fleet / infrastructure management, while the third stage focuses on business process improvement). This statement clearly defines Ricoh's intentions: "Further, Ricoh's support services do more than simply answer questions, troubleshoot problems and install supplies; they work with businesses to change output practices across their entire organization." Ricoh is targeting the 'third stage' of customer MPS adoption by offering consulting and solutions which are targeted at enhancing business processes, not just managing the fleet.

Assessment

Since 1995 Ricoh has acquired a number of firms (Lanier, Gestetner, Nashuatech, IKON, Danka Europe, and InfoPrint) which have dramatically expanded its service capabilities, direct sales force coverage, and geographic reach. While Ricoh is far from being one smoothly integrated organization, they are clearly building a very impressive organization and the framework for one of the most far reaching organizations in the imaging industry (in fact, in terms of imaging industry revenues, Ricoh has moved into the number two position as of the first quarter of 2009, behind HP).

This announcement has, in my view, put Ricoh one step closer to offering a global MPS offering which effectively competes with HP and Xerox. The firm still has challenges. It's not easy turning a large number of independent organizations into a single Managed Services delivery organization. However, they are clearly making great strides in this direction.

To Learn More

In-depth corporate profiles are available from the Photizo Group for MPS Global Advisory Service and MPS Market Watch clients. A limited number of reports are also available for purchase at the Photizo Group's Online Store.

The MPS Insights Journal is another source of vendor profiles and best practices for corporate decision makers who are developing or managing MPS programs, resellers who are offering these programs, and the MPS vendor community at large.

Finally, the firms MPS Conference series is a great way to learn about Managed Print Services and to network with the key industry participants and influencers. The next conference is in Amsterdam on October 21-23rd. There is a pre-conference workshop specifically focused on learning the 'ins and outs' of Managed Print Services. Join us for the 2009 MPS Europe Conference.

The Photizo Group

Insight, Perspective, and Success for the Managed Print Services Market

Six Things You Should Know About Managed Print Services

1. On average, companies save $1M (30% of total hardcopy cost), reduce hardcopy (printer, copier, and MFP) carbon emissions by 60%, and free up 10% of their IT staff who were previously devoted to supporting printers by implementing a Managed Print Services strategy. Firms of all sizes are seeing significant benefits from implementing an MPS strategy. By outsourcing the entire ‘document production’ process including the hardcopy devices, document workflow strategy, and support services, customers are able to achieve a significant reduction in cost while achieving significant environmental benefits.

Source: The Photizo Group’s analysis of 105 Managed Print Service engagements using pre-and post-MPS engagement data. Justifying MPS Webinar – February 2009

2. Managed Print Services is more than just Cost Per Copy or providing an assessment to right size the fleet. Managed Print Services (MPS) entails the outsourcing of the fleet and document strategy to ensure the customer’s business process optimization goals are met. In order to do this, an MPS provider must act as a professional services firm which offers multiple services in order to meet the customers requirements. In fact, over 70% of all MPS engagements include all of the following components:
• Vendor returns service call in 2 hours
• Understanding color print/copy requirements
• Same day service (4-hr response)
• Device installation
• Help desk services
• Assessment provided for the initial MPS agreement
• End user training
• Parts depot close to user sites
• 24x7 customer service line
• Recommendations on device deployment
• Remote or on-site monitoring of devices

Source: The Photizo Group’s on-going study of Managed Print Service engagements in North America and Western Europe. The firm collects data from over 700 MPS decision makers each year.

3. Managed Print Services is the fastest growing segment of the imaging industry. In fact, the MPS market is growing at a compound annual growth rate of over 25% a year. In fact, the market will reach over $45B annually by 2013. By 2013 Managed Print Services will represent over 35% of the total imaging market and over 35% of all business print devices will be under a Managed Print Services contract.

Source: The Photizo Group’s 2009 MPS Market Size, Share, and Forecast Report.

4. There are three stages which customers go through in the adoption of Managed Print Services. The first stage is to gain control of the fleet. 29% of all MPS engagements are at this stage. 47% of all MPS engagements are at the second stage, the stage of optimizing the fleet to ensure devices are deployed in the most efficient and effective manner. 23% of all MPS engagements are at the third stage of MPS, enhancing the business process. The third stage is about enhancing business processes by engaging document workflow and document management solutions.

Source: The Photizo Group’s on-going study of Managed Print Service engagements in North America and Western Europe. The firm collects data from over 700 MPS decision makers each year.

5. IT is typically the department responsible for managing the Managed Print Services engagement. In fact, 60% of the time, the IT department manages the MPS engagement.

Source: The Photizo Group’s on-going study of Managed Print Service engagements in North America and Western Europe. The firm collects data from over 700 MPS decision makers each year.

6. Hybrid dealers will dominate the Managed Print Services market. Hybrid dealers are those resellers (both dealers and IT VARs) who have transitioned from a hardware centric business model to a professional services business model based on delivering Managed Print Services. Hybrid dealers and ‘committed’ dealers (dealers who are committed to making this business model transition) make up less than 25% of all resellers and dealers. Fence sitting and ‘testing’ resellers (traditional hardware centric resellers) make up over 75% of all resellers. The Photizo Group predicts that half of these traditional resellers will be out of business within the next five years as they fail to make the transition to the new business model.

Source: The Photizo Group’s Hybrid Dealer Report (Published January 2009)

The Photizo Group believes that Managed Print Services represents a disruptive business model which will affect all aspects of the value chain, including manufacturers, distribution channels, and other service providers. Firms that make the transition to a professional services led business model will achieve a significant competitive advantage over firm’s which retain the traditional hardware centric business model. Understanding the evolution of this new business model is critical to all participants in the industry, including end users.

Excerpts from this article may be used as long as the Photizo Group is credited as the source.

The Photizo Group is the leading research and consulting firm in Managed Print Services, and the only research and consulting firm, which derives a majority of its revenue from the Managed Print Services market. The firm provides research, consulting, and market insights to customers, resellers, and manufacturers.

Phone: (859) 873-4518

Web: www.managed-print-services.com

MPS Conference Web Site: www.mpsconference.com

MPS Leadership Awards

By: Misty Hamel, Photizo Group Media Relations

Winners of the first Managed Print Services Leadership Awards were announced yesterday at the MPS Conference in San Antonio, Texas.  This is the first time MPS innovators have been honored with awards dedicated to excellence in Managed Print Services.

The winners were selected by a diverse panel, representing a broad spectrum of the industry. Judges were Ken Stewart (Sharp Business Systems), Greg VanDeWalker (Great America Leasing), Greg Walters (SigmaNet), Kiran Sanghi (IT Executive), Gunnar Lundgren (former HP executive), and panel chairman, Doug Johnson, (former Print Inc. executive, Red Sage Consulting). The awards are based on a rating system of MPS best practices and business benefits.

The Awards:

       Corporate MPS Implementation - Nationwide Insurance

This category was designed for organizations that have implemented a MPS program using an external vendor to manage the hardcopy fleet.

Justin West and Josh Feathers, Nationwide Insurance Consultants

 

MPS Vendor - LaserNetworks

This award honors a dealer or manufacturer who provides MPS services directly to corporations.

 Chris Stoate, President, LaserNetworks

Infrastructure Component Provider - Print Fleet

This award is for companies providing a combination of software, training, services, or hardware for MPS engagements. 

Norm McConkey, President & CEO, Print Fleet

 MPS Infrastructure Provider - Supplies Network

This award is for companies providing a combination of software, training, services, or hardware for MPS engagements. 

 Barney Kister, Vice President of Sales, Supplies Network

Photizo Group would like to thank everyone who participated on the awards panel for all the hard work they put into making this awards ceremony successful and all the applicants. We encourage everyone to apply next year.

Samsung Launches MPS in U.S.

By: Misty Hamel, Photizo Group Media Relations

Today Samsung used the MPS conference as a platform to announce its launch of managed print services in the United States. It will be a complete package for resellers to offer a managed print services program.

Samsung will be the first vendor to offer mps without doing any direct business, using only a partner-based strategy. This allows them to cut the competition between themselves and dealers/sellers, creating a more secure relationship with their partners.

They will be able to bring joint offerings to the market at a commodity price for the fraction of the cost and by doing so capture market share.

Enterprise Marketing Director Robert Simmons said the goal for Samsung is to become number two in the provider market, following Hewlett-Packard, but in 2012 Samsung's CEO has mandated that they will be number one.

Already experiencing success in the Korean MPS market, Samsung launched their European MPS earlier this year and intend to launch in Latin America following the U.S. launch.

This is a further validation of a maturing industry and Samsung will be a significant competitor in the U.S. market said Ed Crowley, founder and CEO of the Photizo Group.

First MPS Conference, so far…Great!

By: Misty Hamel, Photizo Group Media Relations

When the Photizo Group first announced the conference in August of 2008, they targeted attendance to be at 100. As the economy continued to spiral downhill the outlook on this conference and attendance dampened. Yet, at no time has managed print services been more vital to organization’s sustainability than it is now, when costs are being cut from every corner. Surpassing our target, with almost 150 attendees (travelling as far as India and Dubai) and 21 sponsors and exhibitors, the strength of the industry and value to vendors and dealers has been validated. 

The conference began with a great kickoff reception sponsored by OKI. Among the mixing and mingling dealers and resellers, analyst, manufacturers, vendors, end users, and consultants have expressed their excitement about the turn out for this conference and where the future of this industry is headed.

This morning Vice President and General Manager of the North American Enterprise Print Services business for Xerox Global Services, Ashby Lowry addressed attendees, covering key elements of MPS agreements, the importance of cost savings and how to drive cost savings in the short and long term, effective partnerships, and effective solutions.

From there presenters have included Ken Roche of Print Operations Group, Robert Simmons from Samsung, Linda Jellicoe from
the Canadian Government, George Browne from Konica Minolta, Edward Crowley from Photizo Group, and Barney Kister from Supplies Network. Topics have ranged from Best Practices to MPS Solution Bundles to Making a Green Impression. Panels made up of competitors have allowed for interesting conversation and a little competitive tension that have drawn an audience that outnumbers the seats.

“This conference has been absolutely phenomenal, far exceeding my expectations. The presentations were great, well focused and content is exceptional, the amount of companies here is exceptional,” said CEO and President of MWA Intelligence, Inc., Michael T. Stramaglio. “This is one big validation for MPS! Next year you better be prepared for a much larger audience.”

Reseller and Dealer Panel

The Photizo Group has launched a dealer panel to begin collecting data on key trends associated with the dealer adoption of Managed Print Services. The panel, is a collection of dealers, VARs, and IT resellers who participate in periodic surveys (no more than one per monthy. This select group of resellers represents a cross section of the sales channels for imaging products such as copiers, MFP's, Faxes, Supplies, and Managed Services.

Dealers and resellers who are selected for this panel are occasionally asked to receive surveys regarding the MPS market and their adoption of MPS. In return for participating in this panel, dealers will periodically receive the results of surveys on topics such as: how many dealers are adopting MPS? Where are dealers on the MPS adoption firm?

In addition to receiving results of surveys, panel members will be entered into a free drawing for a subscription to the MPS Insights Journal - a $1,000 value.

The Photizo Group also provides a 'quick assessment' through it's web site to help dealers determine where they are on the MPS Hybrid Dealer adoption curve. (You can learn more about this via the free webinar on our web site.) I hope you will visit our site to take advantage of these resources. These resources are available to all resellers globally.

Apply for the dealer panel: Click Here to take survey

Take the quick assessment: Dealer Quick Assessment

Learn more about "hybrid" dealers (free webinar): Hybrid Dealer Webinar

News on the Upcoming 2009 MPS Conference

-- by Scott Hornbuckle, Market Analyst, Photizo Group

With every news channel, radio station and economic pundit telling of the current financial struggle, it's nice to hear some good news. During a time when organizations are cutting back or eliminating travel budgets, there are individuals, dealers and vendor representatives from around the world heading to San Antonio, TX at the end of this month for the first ever annual MPS Conference.

The MPS industry is growing rapidly, despite the down-turned economy, and more and more organizations are getting on board as they realize the financial, staffing and environmental benefits possible through managed print services. Xerox and Samsung have signed on as Platinum sponsors, and Okidata has become Gold sponsor. PrintFleet and Print Audit are Silver sponsors, and there are several other individual sponsors as well as exhibitors. The current economic condition has not seemed to restrict attendance, and we are looking forward to a successful conference filled with vital information and key insights for the MPS community.


For more information on the upcoming 2009 MPS Conference, click here.