06.13 | vol1, no2

page 20

page 26

Transform Global 2013, Highlights from Scottsdale

page 6

Canon Solutions America: Stronger Together

page 30

The Profile of a Digital Workflow Pioneer snapshotsmps

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3 io360 | June 2013

in this issueeditor’s notes .................................................. 05

360 news.......................................................... 06Canon Solutions America:Stronger Together .............................................06

hardware ............................................................8Konica Minolta Releases bizhub 4700P Monochrome Laser Printer Series .................... 8

Ricoh Continues MFP Updatesfor Healthcare ................................................... 10

Toshiba Launches First e-BRIDGE™-Ready Color A4 Models ...............................................11

services ............................................................14The Cost of Ignoring Security in Print Environments? Try $450M ...............................14

Mobile Printing Advances with PrinterOn Enterprise 2.0 ................................................... 16

supplies ............................................................18Aftermarket Supplies: Opportunities in Adversity ........................................................... 18

mps snapshots ............................................... 20MPS Review: In-Map Software ....................... 20

MPS Snapshot: NetaphorSiteAudit Software ........................................... 21

MPS Review: Print Tracker Pro and Print Tracker Admin .................................................. 21

MPS Review: Print Audit Premier ................... 22

MPS Review: PretonSaver .............................. 22

MPS Snapshot: PrintFleet ............................... 23

MPS Snapshot: FMAudit ................................. 23

MPS Snapshot: Genius Bytes ........................ 24

transform global 2013 ................................... 26Day 1 Review ................................................... 26

Day 2 Review ................................................... 27

AIIM Workshop: How to Sell Document Management Solutions ................................... 28

digital workflow transformation .................. 30Photizo’s 2013 U.S. Office Worker Survey Reveals Shift from Paper-Based to Electronic Business Processes ........................................ 30

context charts ................................................ 32

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editor’s notes

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5 io360 | June 2013

SApril Madness Brings May… Conferences?Sitting near our director of conferences and events, Terri Crowley, I’ve learned quickly what April madness really looks like. The area surrounding our desks is askew with suitcases, golf towels, nametags, and printed materials, all getting ready to head to Scottsdale next week for our Transform 2013 conference.

While in Scottsdale, I get the privilege of golfing (taking one for the team there), writing a ton of articles for the io360, and meeting several industry folks who I’ve spoken with or emailed over the past months. It’s the latter I’m especially looking forward too. There will also be a couple of fun announcements at Transform and a contest I wish I could compete in. If you download the Transform app, you can check in at the various events and sessions at the conference to earn points (just like Foursquare). The top scorer wins an iPad mini. I can’t win, but I still plan on being at the top of the leaderboard.

A few of the sessions I plan to check into include:

• Surviving the Rapidly Changing Printer Market by Larry Jamieson;

• Products as Platforms: Building Solutions into Products by Ed McLaughlin;

• Aftermarket Imaging Supplies Business by Luke Goldberg; and

• The Future of Data Driven MPS Solutions by Gordon Snider.

Over the month of May, the io360 will be featuring articles from Transform 2013 as well as a wrap up of the third party managed print services (MPS) software providers introduced

last month. Be watching for those articles as well as information about the io360-specific announcement coming at Transform.

If you haven’t registered yet, io360 subscribers can utilize the promotional code IO36025 to get 25 percent off registration. Go to global2013.photizogroup.com

I’ll see you in Scottsdale!

6 io360 | June 2013

360 newsCanon Solutions America: Stronger Together

By Abbie Mantor | Photizo Group

Since Canon first announced its acquisition of Océ in 2010, Canon Business Solutions, Inc., Océ North America, Inc., and Océ Imagistics, Inc. have worked together to serve general office, production print, and large-format markets in the United States. On January 1 of this year, Canon announced a new name for this organization, Canon Solutions America, Inc., but chose to save the official briefing for earlier this month.

In a briefing on May 2, Canon Solutions America leadership laid out the firm’s structure and future plans under the mantra “Stronger Together.” Toyo Kuwamura, president of Canon Solutions America, briefly shared his 30-year history with Canon where he humbly started as a trainee in the Copier Division of Canon USA. Kuwamura also oversees Canon Solutions America’s Enterprise Services and Solutions (ESS) business unit and is joined by Mal Baboyian, executive vice president at Canon Solutions America, who oversees the two additional business units of Canon Solutions America, Large Format Solutions (LFS) and Production Print Solutions (PPS). Canon Solutions America implemented the new senior management team on January 1 (see org chart on next page) under the direction of Joe Adachi, president and CEO of Canon USA, and chairman of Canon Solutions America.

“We are doing very well because we are already working together as one company, stronger together,” Kuwamura stated.

Canon Solutions America expanded its footprint in the United States to include 136 offices divided into 13 regions and four zones, each managed by a vice president reporting to Kuwamura (see org chart). The newly formed organization is headquartered in the new Canon Americas Headquarters in Melville, NY.

“We have worked very hard these past three years to make sure our goal of creating the overall leading presence in the imaging industry will be realized,” Adachi said earlier this year. “Canon Solutions America and

the other companies formed by the integration will be better positioned to meet the growing demands of customers locally, regionally, and nationally by capitalizing on the strengths of each company and maintaining the superior service levels that customers require.”

Business UnitsCanon Solutions America consists of three business units to gain traction in each of the primary markets in which the new organization desires to focus.

The ESS business unit focuses on retail and general business-to-business (B2B) office environments utilizing Canon’s imageRUNNER ADVANCE technology and uniFLOW solution to advance efficiencies within multifunction printer (MFP) fleets. The ESS unit saw unit sales growth of six percent year over year and exceeded revenue budgets for 2012 and the first quarter of 2013.

The LFS business works with reprographers, architecture/engineering/construction (AEC) firms, and automotive and aerospace manufacturing companies utilizing Océ’s large-format printers. According to Canon Solutions America, the LFS business unit had a 39 percent share of the technical document systems market in 2012 and saw revenue growth of six percent.

The PPS division specializes in solutions for data centers, service bureaus, direct mail companies, book printers, and commercial printers with several Océ production hardware lines, including the JetStream and ColorStream, and Canon’s imagePRESS line. In the briefing, Baboyian spelled out the market and application focus of PPS, a business unit in which Canon Solutions America intends to experience large growth (see diagram on next page). The PPS unit achieved 111 percent of its projected revenue

7 io360 | June 2013

360 news

in the first quarter of this year and was recently named the “company to watch” by Inkjet Summit attendees.

Our ViewWhen initially announced at the beginning of the year, Canon’s goal in the new structure was to “gain a leading presence in the imaging industry” through leveraging the strengths of each company. From the acquisition of Océ in 2010 to the formation of Canon Solutions America, Canon appears to be taking steps towards becoming a services-led business, even if those steps come slowly. This calculated decision making process is seen in other Japanese manufacturers and has been cited by some as the reason eight out of the top twelve OEMs are Japanese. However, successful services-led businesses typically see 20 to 30 percent of profits from services, which could prove challenging for Canon (and other Japanese manufacturers) with large executive teams and slow decision-making processes.

The next step for Canon will be integrating its software solutions, like uniFLOW, deeper into business workflow, thus making the firm’s hardware a more integral part of critical business processes. Canon has always shown itself a company focused on excellence and up to any challenge and Océ has fit nicely into that culture.

8 io360 | June 2013

R

Konica Minolta Releases bizhub 4700P Monochrome Laser Printer SeriesBy Abbie Mantor | Photizo Group

Recently released, the Konica Minolta bizhub 4700P series, including the bizhub 3300P, 4000P, and 4700P, features increased print speeds and memory capabilities over the predecessor models, the bizhub 20P, pagepro 4650EN, and pagepro 5650EN, respectively. The monochrome laser printers offer optional wireless connectivity, automatic duplex printing, and expandable media capacity to meet the needs of small-office/home-office (SOHO) users or enterprises needing desktop printing.

The bizhub 3300P device offers a 35 ppm output speed, a 50,000-page duty cycle, and an 850-sheet maximum media capacity for a $340 suggested retail price (see chart below). With a $970 suggested retail price, the bizhub 4000P offers a 42 ppm output speed, 2,000-page maximum media capacity, and an 80,000-page duty cycle. Finally, the bizhub 4700P features a 50 ppm output speed, a 100,000-page duty cycle, and 2,300-sheet maximum media capacity at a suggested retail price of $1,450.

All three models ship with a starter Return Cartridge Program toner

hardware

9 io360 | June 2013

hardware

cartridge, a program where users can return cartridges to Konica Minolta free of charge for recycling. Customers participating in the Return Cartridge Program receive a discount on consumables (see chart below). If the Return Cartridge Program sounds familiar, it is. Thanks to the Lexmark pedigree of the bizhub 4700P series, Konica Minolta is matching the supplies offerings of its OEM supplier.

Our ViewIn another nod to its Lexmark origins, the Konica Minolta bizhub 4700P

monochrome laser printer series offers healthcare providers with additional security features for prescription printing that are compliant with requirements set forth by the Centers for Medicare and Medicaid Services (CMS). Konica Minolta’s commitment to this vertical shows a small step toward becoming a services-led company as the firm works to meet the individual needs of its customers. In 2012, printers in these segments (Small Workgroup and A4 Workgroup) experienced declines in worldwide unit shipments and revenue due, in part, to low-cost MFPs and color printers. Konica Minolta’s new releases will help prop up sales in these segements.

10 io360 | June 2013

hardware

By Abbie Mantor | Photizo Group

Earlier this year Ricoh announced eight new printers and multifunction printers (MFPs) designed specifically for the healthcare vertical (see Ricoh Penetrates Healthcare Vertical with Release of New MFPs and Printers). Just recently, the firm released two additional devices, the MP C300HW and MP C300HT. These MFPs utilize Ricoh’s base MP C300 model and incorporate healthcare-specific upgrades, including wristband printing and patient record scanning functionality.

The MP C300HW and MP C300HT allow healthcare organizations to scan directly to patient electronic medical records. Additionally, new Teflon-coated paper trays accommodate heavy wristband stock and other specialty papers while minimizing misfeeds. An optional media tray for the MP C300HW can print on media as narrow as 3.25 inches, further increasing office efficiency. The additional capabilities cause the MP C300HW to cost $6,570 while the MP C300HT costs $6,260.

Both MFPs offer the security options that organizations need to remain

HIPPA compliant, including lock print technology, which requires a password to release print jobs; hard drive encryption to protect data saved on the hard drive; and the DataOverWriteSecuritySystem (DOSS), which overwrites digital images on the hard drive.

The specs of the new devices match that of their parent device with a 32-ppm print speed, 1,200 x 1,200 dpi copy resolution, and 1.5 GB of standard memory. The MP C300HW offers a 2,000-sheet maximum media capacity, while the MPC300HW accommodates an additional 300 pages. The devices utilize the same toner as the MP C300, an 8,300-page black toner cartridge and 10,000-page cyan, magenta, and yellow toner cartridges.

Our ViewThese new color devices add functionality to Ricoh’s healthcare offerings, as a majority of the earlier releases were monochrome printers or MFPs. Photizo has seen an increase in companies transitioning from monochrome to color devices in recent years, making these additions beneficial to increasing Ricoh’s positioning within the market.

Ricoh Continues MFP Updates for Healthcare

11 io360 | June 2013

hardware

By Abbie Mantor | Photizo Group

A three-year tradition continues at Toshiba America Business Solutions, Inc. with the now seemingly annual late-spring announcement of additions to the firm’s color multifunction products (MFPs) line of e-STUDIO™ devices. This year Toshiba announced the e-STUDIO407cs series comprised of three A4 models, the e-STUDIO287cs, e-STUDIO347cs, and e-STUDIO407cs. These are the first color A4 models in the e-STUDIO series (for last year’s announcement see Beneath the Surface of Toshiba’s New B-Sized Color MFPs), but continue to offer the solid feature set at a lower price point for which Toshiba’s late-spring e-STUDIO announcements are known.

The e-STUDIO470cs series is built on Toshiba’s e-BRIDGE technology, which allows consistency across the e-STUDIO color line within small- to medium-sized businesses (SMBs). In fact, according to Toshiba, the new e-STUDIO407cs and previously announced e-STUDIO3550c A3 color MFP are 90 percent common in platform and components, making the new devices easier to learn and service. A 9-inch tiltable color LCD touch-panel display and customer replaceable consumables (CRU) make the new devices easy to transition into a work environment.

Toshiba currently offers HP and Lexmark A4 color devices to customers, but after hearing requests for an A4 device featuring e-BRIDGE compatibility, the company chose to step out with its own offering in the market. The e-STUDIO407cs series is targeted toward customers currently utilizing Toshiba A3 devices, SMBs who could not previously afford color, and verticals such as education, healthcare, and banking requiring compact color alternatives.

By the numbers, the e-STUDIO287cs offers print and copy speeds of 30 ppm, while the e-STUDIO347cs prints in color at 35 ppm and in monochrome at 37 ppm, and the e-STUDIO407cs tops out the series at

42 ppm (see chart on page 12). All three devices provide flexible paper-handling options with a maximum capacity of 2,630 pages. Additionally, a 100-sheet reverse automatic document feeder is standard on all models as well as auto duplexing. Color quality was not sacrificed in the new e-STUDIO devices, which offer high-gloss output, PostScript Overprint, and spot-on color matching. Toshiba does not publish supplies costs or cost-per-page figures.

The e-BRIDGE universal print driver with plug ins offers one driver for all users, standard tandem print, job replicator, job build, and job separator features for improved workflow. The new devices feature an open API platform; cloud, Internet, and mobile printing options; and Toshiba’s unique self-encrypting drive for added flexibility and security. The latter feature renders hard drive data useless if removed or stolen from the MFP.

LED technology makes the new e-STUDIO devices reliable, compact, and easy to use and maintain, according to Toshiba. The short distance between the light source and drum unit give the devices smaller footprints. The simple structure of the printing head allows strong paper weight support and allows easier removal of paper jams. Toner cartridges are sold separately from drum units as the mono component development system requires no developer.

Our ViewToshiba admits developing its own A4 color models was not inexpensive or without risk, especially as the firm continues to sell comparable Lexmark and HP devices. Taking its e-BRIDGE technology to new customers provides greater opportunity for Toshiba to gain market share in Segments 2-4 (21-30 ppm, 31-40 ppm, and 41-69 ppm, respectively). Photizo expects each of these segments to experience worldwide unit shipment growth through 2016 making this a good market for Toshiba to invest in, particularly as SMBs and small workgroups replace low-end MFPs and monochrome devices. (Printer chart on next page.)

Toshiba Launches First e-BRIDGE™-Ready Color A4 Models

12 io360 | June 2013

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14 io360 | June 2013

Oservices

Mobile Printing Advances with PrinterOn Enterprise 2.0

By Abbie Mantor | Photizo Group

Ontario-based software solutions provider, PrinterOn first developed cloud-based printing in 2000, long before the enterprise market saw its value. At the time, the company focused on public cloud printing (SaaS) in hotels, airports, and libraries. PrinterOn branched out to the higher education vertical as it continued to add features and security to its technology. When private cloud-based printing for businesses began to emerge, PrinterOn jumped at the change to bring an official offering to enterprises and higher-end small and medium-sized business (SMBs) in 2012.

PrinterOn Enterprise 2.0 is an on-premise mobile printing platform that enables documents to be printed and managed within the private cloud regardless of device, printer, network, or geographic location. Within a few hours, the solution can be installed in any size business (on either a private or public cloud) and configured for any level of security. IT managers can set parameters for users or devices and can manually add remote devices onto the network for near real-time, secure printing to remote locations. PrinterOn Enterprise 2.0 currently supports English as well as most European languages, with plans to release several Asian languages and Brazilian Portuguese next quarter.

Our ViewBring your own device (BYOD) and remote office environments are increasing in popularity in the enterprise and SMB space. While Photizo forecasts don’t indicate mobile printing will increase page volume, pages printed from mobile devices will become an essential piece of business workflow. Technologies like PrinterOn Enterprise 2.0 will ensure companies can easily accommodate mobile workers and guests within their offices.

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16 io360 | June 2013

EEnterprises face staggering—and escalat-ing—vulnerabilities.A 2013 study of the Global 2000 companies by Ponemon projects an average loss of $450M per organization due to network attacks in the U.S. Globally it’s [a mere] $398M.

I know most of you are thinking two things. First, “What does this have to do with ‘print’?” and second, “I don’t work with [or “I’m not one of] the Global 2000 companies, so why should I care?” That’s precisely what the bad guys count on you thinking.

In today’s hyper-networked world, the “Internet of Everything” radically transforms who can impact our lives simply by what we’re connected to. While it may have been “hip” to be within six degrees of Kevin Bacon 30 years ago, today nearly everyone is within 2 or 3 degrees—whether willingly or not—of almost everyone else on the planet. This can be cool or catastrophic, but prudence tells us to hope for the best while preparing for the worst. One major, $450M breach of a Global 2000 organization would send shock-waves around the earth. If more than one were hit with any sort of sequential proximity, regional and local economies would be devas-tated. It’s a domino effect with real-life repercussions that wipe out real-life people. In other words, the network innovations that make today’s world more convenient have, in many cases, exhausted the infrastructure designed to keep it safe. Never before have so many targets of hacker opportunity had so much impact on other organi-zations or, for that matter, so many network back doors to exploit. The closest of these is sitting at the end of your desk waiting for your next print job.

You see a printer. A hacker sees a flashing neon “Open for Business” sign.Printers have traditionally been viewed within organizations as little

more than the source of periodic headaches [for IT and end users alike] when they fail. This is also what makes them the perfect at-tack vector. The bad guys know that most organizations are “printer heavy” and do a poor job of maintaining device accountability on their networks. They also know that there is a human element to network exploits that manifests itself through printer performance issues. Finally, hackers have shown us through a range of activity that printers are their preferred target...and ultimately the “crown jewel” in the $450M threat exposure of U.S. enterprises. When it comes to printers, our collective ignorance has made business steady, reliable, and all-too-easy for anyone who would like to do us harm. Combatting this, although counter to conventional wisdom, starts with understanding the three fundamental realities of printer exploits:

Reality 1: That which doesn’t kill you ... eventually will.“Knowing what’s on your network” means more than just having a physical inventory of your devices. It means having a real-time, self-updating knowledge of authorized, unauthorized, and unat-tended devices, and the connectivity characteristics of each to every network node. While time consuming and complex, knowing the terrain of the battlefield you’re fighting on is always crucially important, which is why it’s the first of 20 Critical Security Controls (CSC’s) outlined by the Center for Strategic and International Studies (CSIS), the SANS Institute, and a consortium of security-focused organizations like the NSA, Departments of State and Homeland Security and several bureaus from the UK. (http://www.sans.org/critical-security-controls/)

The importance of this step cannot be overstated. Think of hackers as a pack of wolves and your printers as a herd the wolves are hunt-ing. The pack works together to move the herd, culling its ranks so

The Cost of Ignoring Security in Print Environments?

Try $450M.By Dave Westlake | President, Print Command, LLC

dave@print-command.com

17 io360 | June 2013

that the young or old, weak or lame start to fall out of the protection of the group and become easy prey. If you don’t know with certainty what devices are where, how they interact, how they’re configured, and who they’re talking to, then you’ve already thinned your herd for the wolves. The only thing they have to do now is go in for the kill. And to them, that’s fun.

Reality 2: The Human-Printer relationship isn’t ‘Love-Hate’. It’s ‘Hate-Hate More’.When the best case scenario that a technology asset can provide is “perform as expected,” then failure and disappointment are im-minent. Such is the case with printers. That is, you’re FAR more likely to hear echoes of end users complaining about jams, lost print jobs, low toner, spots on pages, etc., than you’re ever to hear them rave about the “blow-your-hair-back” perfor-mance a printer delivered when rendering a page of 12-point, Times New Roman text. End users want printers to do what they’re supposed to do: print well. Any exception to this creates what we affectionately call “grief,” and grief, like plutonium, must be carefully controlled because it’s radioactive and will cause organizational cancer with prolonged exposure.

The most obvious side effect of grief, naturally, is lost productivity. However, the impact of failing to conduct good lifecycle management practices and targeted inventory refresh activity (which help prevent grief) extends through the human element into the heart of cybersecurity. Intuitively, we know that end user compliance with security policies rapidly degrades as workplace satisfaction deteriorates. We also know that one of the leading contributors to end user complaints is poorly functioning print devices. A healthy print environment, therefore, directly correlates to avoiding a number of the human initiated vulnerabilities (like phishing campaigns) that can bring networks—and networks of networks—to their knees. Consider-ing that many of the destructive malware strains contained in these attacks propagate throughout networks via print device processors or known vulnerabilities in OS print spoolers (ref: Stuxnet, Duqu, Flame), it’s more than just good form for organizations to improve their “human-printer” dynamic. It may be—in a very real sense—a matter of survival.

Reality 3: It’s not a printer. It’s a hacker welcoming committee ... that prints.Network-based attacks on printers, although often misunderstood, have a long and sordid track record across both public and private domains. While such attacks typically present themselves as print

job replicator or reverse-IP proxy breaches (providing hackers with unauthorized copies of printed files or hacked communication protocols that provide full access to network resources, respectively) recent activity of other exploits are also headlining network disas-ters. Neglect-borne naivety has given rise to an alarming number of printer-based SSH hijacks (compromising security of, among other things, transactions over the Internet) and DDoS attacks (which can completely stop and hold hostage normal business operations), both of which make any organization in any industry a prime target, but are of particular concern in healthcare, financial services, insurance, and public verticals.

Enabling these exploits is the print device architecture itself. Even while embedded in a network environment, printers are almost

universally configured to communicate over the Internet with OEM servers, independent of firewalls and

other perimeter security measures. This means that the very nature of their design makes

them immune to the benefits of intru-sion prevention systems and creates an exploitable back door for network hack-ing and malware injections. If printers are digitally signed by the OEM prior to shipment from the factory, managing certificate validity typically terminates at

the end of the assembly line. This means that a non-managed, permanent network

trust relationship could give hackers “circle of trust” access to your data. Think it can’t happen

to you? Well, it’s happened to the Pentagon, a Depart-ment of Navy weapons lab, the U.S. Chamber of Commerce,

and, according to a Quocirca study, 63% of the companies in Germany, France, and the UK.

“There is no security on this earth; there is only opportunity.”General Douglas MacArthur shared this insight as an unconven-tional war was developing in Korea. Now, in a separate, yet parallel, unconventional war—a cyberwar—the quote gains new applicabil-ity. It’s a timeless reminder that security requirements evolve with innovation and require constant vigilance and adaptability. Whether considering the impact a breach on your network periphery has on you directly, quantifying your physical threat profile in cyberspace, mitigating the cultural conflicts printers cause within an organiza-tion, or protecting print devices from cyberattacks, it’s irrefutable that printers play a key, but misunderstood, role in cybersecurity. The choice is yours: take the opportunity to secure your print envi-ronment and potentially avoid devastation in the future...or take the chance that it won’t happen to you. What’s at risk? Try $450M.

And remember—the bad guys already know what you’re thinking.

services

18 io360 | June 2013

SBy Abbie Mantor | Photizo Group

Several factors have generated challenges in the aftermarket supplies industry, each of which create a new environment where companies must adapt in order to gain market share. New mold products produced overseas have saturated the market and lowered prices, recent litigation surrounding patent infringements leaves dealers skeptical to purchase aftermarket products, and color print-ing remains a highly untapped market for aftermarket suppliers. According to Luke Goldberg, senior vice president at MSE Global, and Gil Wazana, vice president of sales in the Americas at MSE Global, these challenges actually create opportunities for aftermar-ket manufacturers.

Brief History of the Supplies AftermarketThe aftermarket supplies industry was born in the early 1980’s when Lasercharge, in Austin, TX began refilling original equipment

manufacturer (OEM) cartridges. In the early 1990’s, companies began transitioning from refilling cartridges to a process called remanufacturing that involved inspected empty cartridges and replaced inadequate parts. This change began to bring professional-ism and technology advances to an industry previously plagued with quality issues.

In the mid-2000’s, Chinese companies emerged with new mold or clone cartridges that were not remanufactured or refilled but rather designed to work like an OEM product at significantly lower costs. These new products raised red flags for OEMs and aftermarket remanufacturers alike. OEMs began filing intellectual property (IP) infringement lawsuits against new mold companies as prices and profit margins dropped. Epson and HP saw early victories in the fight against these companies, and Lexmark and Canon are among other OEMs in the battle.

The struggles between OEMs and remanufacturers and between

Aftermarket Supplies: Opportunities in Adversity

supplies

19 io360 | June 2013

new mold manufacturers and the rest of the industry seem to paint a dim picture of the aftermarket supplies industry, and yet Goldberg and Wazana continue to be optimistic about the future.

“We are now at a crossroads in a mature, 27-year-old business,” says Goldberg. “We actually find alignment between OEMs and legitimate aftermarket manufacturers and are seeking to provide fair competition to the OEMs by offering consumers quality alternative products. We see tremendous growth opportunities in capturing our fair share of the overall $80 billion consumables revenue pie and the growing color opportunity. We believe we can help empower dealers to do this with a quality product and marketing tools that will also allow them to price their products as a proud OEM alternative versus a low price/low quality product.”

Opportunities for the Aftermarket Supplies IndustryColor Toner

The aftermarket supplies industry has great growth potential because currently the collective industry has such a small market share of the supplies market. According to Photizo, worldwide toner revenue in 2012 was $52 billion and is projected to increase through 2015, mostly due to increased color printing. Of the $26 billion color toner market, the aftermarket only contributes seven percent of worldwide revenue. Aftermarket supply companies have tremendous opportunity to increase their market share in this space. What has prohibited this growth thus far?

According to Wazana, quality of product prevents aftermarket sup-pliers from gaining traction in the color toner space. “The industry has hit a plateau,” he states, “due largely to the inferior quality of color aftermarket toner our industry produces. MSE has developed several patents that allow us to overcome industry-wide challenges with aftermarket color and thus allow our dealer partners the ability to capture a much larger share of this lucrative pie.”

Managed Print Services

Another opportunity for the aftermarket supplies industry is man-aged print services (MPS). The original message of MPS was leave the over-commoditized printer pricing war behind and enter the services market. Ironically, the pricing war shifted to page clicks and MPS providers find themselves once again competing with the lowest price provider. When faced with lower bidders, MPS dealers either lose the sale or are forced to lower their own prices.

The largest cost in an MPS engagement is consumables – as much as 70-80 percent of the cost per page. Aftermarket consumables are typically up to 40 percent lower than compatible OEM products, but provide cost savings only if quality is maintained. According to Goldberg, OEMs are capitalizing on the commoditization of the MPS world. In general, OEMs cannot offer the lowest cost supplies and have learned to sell MPS engagements based on quality of product and services. “And they are winning,” Goldberg states.

When the consumables are not carefully selected for quality, the

provider is at risk of reducing profits and losing clients. Inferior products cost dealers more in the long run due to lower yields and/or high maintenance costs when cartridges fail. High quality after-market supplies manufacturers can offer a suitable middle ground for dealers – a lower-cost, quality product.

“It is incumbent on dealers to do their due diligence in qualifying a supplies partner,” states Wazana. “Visit the manufacturing facility, kick the tires and look under the hood before you make a decision that will greatly impact the success of your program.”

Aftermarket supply manufacturers also play a key role in increasing market share.

“As an industry,” said Wazana, “If we make higher quality products, we will all sell more of them. As long as there are inferior products the entire aftermarket industry will suffer.”

Litigation Against New Mold Manufacturers

Recent litigation surrounding overseas new mold supplies is another opportunity for the aftermarket community. OEMs are increasingly taking action against aftermarket suppliers to protect their IP rights (see Industry Perspectives on the Supplies Aftermarket and Intellectual Property Rights). Earlier this year United States Inter-national Trade Commission (USITC) Administrative Law Judge David P. Shaw recommended to “the Commission” a general exclusion order (GEO) for infringing products in Canon’s case against various aftermarket supply manufacturers (for more information on the USITC see Intellectual Property Rights, a Look At the United States International Trade Commission).

According to Goldberg, overseas new mold suppliers can offer prod-ucts at price points far below remanufactured cartridges. The reduc-tion in cartridge pricing has caused legitimate aftermarket suppliers to, in some cases, link arms with OEMs to reduce the impact these new molds have on the overall market. Although typically competi-tors, OEMs and aftermarket suppliers benefit when these “grey market” products become unavailable. Domestic manufacturers will become a viable destination to fill the void.

Our ViewThe black eye of low-quality products remains the greatest chal-lenge facing the aftermarket supplies industry. Companies within the market must differentiate themselves from grey market manufac-turers, not on cost, but quality. Fair competition within the supplies market between OEMs and the aftermarket is good for all parties involved, including the end user who gains from the research and development of both parties and competitive pricing.

Aftermarket manufacturers have a unique opportunity to make headway into OEM share of the market through color toner, MPS engagements, and in light of recent IP rulings. The remaining ques-tion is “will they?” How each supplier adapts to the current market conditions will determine their growth potential in the supplies aftermarket.

20 io360 | June 2013

MPS Review: In-Map Software

Launched in 2005 as DocuAudit, In-Map is a two-year-old cloud-based managed print (MPS) mapping solution. The relatively new software allows MPS dealers to import company floor plans, segment by departments, and place imaging devices onto a user-friendly interface. When integrated with any of the major fleet management software tools, the map becomes interactive; allowing dealers to track total cost of ownership (TCO) and plan future MPS strategies. In-Map recently released an iPad version of the software that allows on-site layout even while offline. The system uses a Bluetooth barcode reader to quickly scan and place devices quickly and efficiently.

Our ViewIn-Map is a little piece of software getting big props right now. Positioned squarely in a niche market, the company has a unique opportunity to integrate with a variety of fleet management software to expand its market share. The firm’s greatest challenge will, like most small software companies, be marketing its product to the masses.

MPSSnapshotsBy Abbie Mantor | Photizo Group

21 io360 | June 2013

MPS Snapshot: Netaphor SiteAudit Software

Continuing with our snapshot of third-party MPS software is Netaphor’s SiteAudit asset management tool, originally launched in 2006. Now in its fifth release, the MPS tool comes with three options: onsite, hosted, or compact, depending on the users’ needs. Each configuration includes device discovery and remote monitoring and management (RMM). The onsite and hosted options also capture print data, allowing for the ongoing management of devices. SiteAudit collects output counts, page costs, error statistics, and hundreds of other data options.

Our ViewBy utilizing Microsoft Windows components, SiteAudit allows dealers and IT managers to monitor devices without individual installations on each device hosting a printer, a helpful tool in busy offices. Additionally, the product can be used in any size environment and does not require multiple licenses. With only a dozen employees, Netaphor is small enough to be adaptable, but will struggle to compete with the “big dogs” in the highly competitive Stage 1 (Control) MPS environment.

MPS Review: Print Tracker Pro and Print Tracker Admin

Established in 2004, Boise, ID-based Print Tracker, LLC is the designer of the managed print services (MPS) solutions Print Tracker Pro and Print Tracker Admin. Pro is installed at the end user’s site, discovers all network devices, and sends imaging device meter and service reports back to the dealer via email. Pro can also be used directly by an end user without a deal in which case reports would be delivered to an administrator. With a size of less than 4 MB, Pro can be downloaded and installed directly from a dealer’s website and send reports within 15 minutes.

Print Tracker Admin is an MPS solution to help each department within a dealership manage MPS clients. Account managers can review device utilization and determine life expectancy of devices as part of an equipment recommendation and proposals. Billing staff can efficiently track usage for monthly invoicing.

Our ViewWith less than ten employees, Print Tracker, LLC is more nimble than larger organizations in software development and customer service. For example, the firm utilizes self-reliant framework rather than Microsoft.net, a feature that is a function of Print Tracker’s autonomy. Despite its size, the firm partners with big-name companies including Ricoh, Toshiba, and Xerox, making them a formidable contender in the third-party MPS market.

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MPS Review: Print Audit Premier

Print Audit Premier is a suite of managed print services (MPS) software solutions from Calgary-based Print Audit. Now in version 6, the software includes device management and print management. In March of last year, Print Audit announced it was changing its pricing model from a per-license approach to a subscription-based membership program. Now with 150 subscribers, Print Audit Premier provides a steady revenue stream to the firm’s office equipment dealers who have, in turn, already seen double to triple their profit over the previous model, according to Print Audit.

Our ViewPrint Audit made a great step last year as it transitioned to a subscription-based membership plan. The marketing of dealer success under the new business model will enable Print Audit to gain traction in the market, addressing the primary challenge faced by other small third-party MPS software providers. Additionally, Print Audit’s ability to offer device management and print management position it ahead of most other competitors.

MPS Review: PretonSaver

Preton’s Pixel Optimizer technology reduces ink or toner consumption in print jobs by identifying and deleting overlapping pixels. According Preton, companies can reduce consumption by as much as 35 percent without creating a noticeable difference in quality. Additionally, PretonSaver identifies network printers, collects usage data, and can be set to implement user-, department-, or application-based rules. When incorporated into a managed print service (MPS) engagement, dealers can reduce toner cost and therefore increase profits.

Our ViewTo remain successful in an increasingly commoditized MPS market, dealers must have real data to make wise business decisions. PretonSaver lowers costs for dealers through its pixel optimization technology and also provides key data for end-users to reduce printing waste. The only remaining hurdle for Israeli-based Preton is ongoing integration into the North America market.

23 io360 | June 2013

MPS Snapshot: PrintFleet

PrintFleet remotely gathers critical device data providing IT departments and managers with critical data such as supply levels, meter count, and service alerts. Dealers can set up alerts based on frequency of error code to provide timely service to customers. Other features included with PrintFleet include device location and mapping capabilities and customizable reports. PrintFleet partners with most OEMs and a large list of MPS software companies to integrate with various solutions.

Other offerings from PrintFleet include PrintFleet Suite PRO USB key that allows dealers to take a snapshot of a potential client’s devices to assist sales teams and PrintFleet RemoteTech that allows Canon dealers bidirectional communication with Canon imageRUNNER devices.

Our ViewPrintFleet continues to show its strength not just in its product, but in its partnerships, bringing the term brand agnostic to a higher level. Instead of developing software for more advanced MPS offerings, PrintFleet has chosen to partner with companies that provide such software, a strategy that continues to prove fruitful for the firm.

MPS Snapshot: FMAudit

FMAudit assists managed print service (MPS) dealers operate their businesses with solutions for processes such as invoicing, supply management, and total cost of ownership (TCO). Specifically for device capture, the Missouri-based solution provider relies on four unique offerings to collect data from end users. Each of these solutions integrates back into the overall FMAudit software automatically.

WebAudits collects meter readings via the Internet without installing any software. Dealers simply e-mail clients a link that, when opened, automatically identifies devices and collects needed data. In environments where IT managers allow software installation, FMAudit’s Onsite solution automatically collects and sends meter data at set intervals. The Viewer USB solution collects print assessments during the sales process via a USB key on a local PC. Finally, the Local Agent software installs on PC(s) containing a local printer, allowing the monitoring of non-network devices.

Our ViewFMAudit’s variety of data capture options is a win/win for dealers and clients. Dealers can provide exceptional customer service by catering to the unique specifications of each client, and clients do not need to adjust business processes or preferences to enter MPS engagements. Additionally, ECI’s acquisition of the firm in 2011 provides strength and diversification to FMAudit’s offerings.

24 io360 | June 2013

MPS Snapshot: Genius Bytes

Genius Bytes offers a full line of business software solutions for managed print services (MPS), business process management (BPM), and document conversion services. MyMFP is the firm’s main offering and provides pull printing, secure printing, device monitoring, and increased scanning options. This solution is compatible with select Kyocera, Lexmark, Ricoh, Samsung, and Xerox MFPs. MyBPM streamlines basic workflow with frequently used documents. This solution integrates with MyDMS, a server based solution that stores all documents in a secure, centralized location.

The German-based firm also offers remote access to a variety of devices through its My Client solution and various customizable solutions in its My Module solution.

Our ViewGenius Bytes entered the MPS software scene 13 years ago and has managed to create customizable solutions for offices. Few firms in this market offer the wide variety of solutions Genius Bytes does on such a global scale.

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26 io360 | June 2013

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GLOBAL

2013

Day 1 ReviewBy Abbie Mantor | Photizo Group

Photizo’s annual Transform Global conference is underway at the Scottsdale Resort and Conference Center, a business meeting destination filled with southwestern charm. Each year Photizo hosts three such conferences across the globe as a resource for imaging industry representatives to learn and network in this rapidly changing environment. This year’s event attracted over 300 attendees from OEMs, vendors, and dealerships. Below are a few key highlights from several of Tuesday’s sessions.

Keynote Speaker, Ryan EstisEstis addressed an issue everyone in the imaging industry knows well, embracing change. Among other compelling statistics and stories centered around creating dynamic cultures and understanding your value proposition was a case study on the Mayo Clinic in Rochester, MN. While conducting interviews with the Mayo staff several years ago Ryan was skeptical of the number of people that used the phrase, “the needs of the patient come first.” Assuming they had been coached, he pushed into one security officer who used the same terminology. Erv, the guard, responded with, “the people that come to Mayo are not where they want to be in life. It’s my job to make sure they feel safe and secure while we help them get

back to where they want to be.”

Mayo is a great example of an organization that envisions their employees with the core values that matter most

and empowers them to operate within them. For the imaging industry, effective change will

mean helping your employees (from the top down) understand your company’s core

values. They want to know why their work matters. No, they won’t be

saving lives at the Mayo Clinic, but help them understand how your solutions benefit the end user and empower

them to provide the best service possible.

Surviving a Rapidly Changing Printer MarketThe hardware and supplies track, called “The Core,” comes from the days of the Lyra Symposium and was well attended by conference attenders. Photizo’s Larry Jamieson started off the day with a look at recent trends in the hardware market. One interesting trend he spoke about was the transition to mobile devices in the workplace. Mobile printing is still in its infancy and Jamison believes print capabilities and content generation in mobile devices will become more sophisticated in the coming years. He even suggested PCs might become far less prevalent, focusing on niche markets, in the not-to-distant future.

Pragmatic MPS – Maximize Savings / Enhance Productivity Marvin Reem, CIO of Bob Jones University (BJU), provided an excellent case study for MPS based on his experience in the trenches. BJU launched its first MPS engagement in 2006 with what is now Sharp Business Solutions. The key factors in choosing Sharp included integration with its current network, cost, and simple implementation. Through the first engagement BJU saw a 40 percent reduction in student printing and lowered its IT headcount by outsourcing service work. As an organization, BJU is just now beginning to understand the greater value of deeper MPS engagements; ones that provide more granular print tracking and asset lifecycle management (ALCM). Based on his presentation, Reems has done an excellent job as a manager integrating the university’s core values into IT decisions while balancing the budget constraints given to him. A key learning for the imaging industry is understanding the long term benefit of end-user relationships. Sharp Business Solutions dedicated years to educating BJU on the benefits of, not just MPS, but the greater possibilities of higher-level MPS.

The conference continues on Wednesday with a keynote session by Photizo CEO Ed Crowley, additional breakout sessions, and round table discussions.

27 io360 | June 2013

TDay 2 ReviewBy Abbie Mantor | Photizo Group

Transform Global 2013, Photizo Group’s annual imaging industry conference, continued yesterday with another round of sessions and networking opportunities. Held at the Scottsdale Resort and Conference Center in Scottsdale, AZ, the conference comprised of OEMs, dealers, software companies, aftermarket firms, and various industry-related representatives.

Photizo CEO Ed Crowley kicked off the morning with a keynote session entitled “Beyond Services” that discussed the transition from basic MPS (collecting device information) to the more sophisticated Stages 3 and 4 MPS engagements that include business process optimization (BPO). Crowley suggested that end users he’s spoken with are desiring to engage with an organization that can help them overcome the business process inefficiencies they face, but MPS providers are, in general, not optimizing this opportunity, focusing instead on the lower-level engagements that are quickly becoming commoditized in the market.

To make this transition Crowley suggested several steps for MPS providers to take to ramp up to these new offerings. Overall, companies will need to embrace change, a services-led business model, and be willing to dedicate resources to BPO development.

Executive PanelAs has become tradition, Crowley invited to the stage with him several OEM executives for a panel discussion on the trends and future of MPS. In this year’s panel were Jeff Bane of HP, Tim Brien of OKI Data Americas, John Schon of Konica Minolta, Paul Birkett of Xerox, and Terri Campbell of Ricoh Americas Corporation. The greatest win of this session was seeing the collaboration and shared desire to learn and grow among competing companies. Although biased towards their own offerings, each OEM took the time to share with attendees lessons from the trenches and best practices for implementing MPS programs.

Gen Y’s IdiosyncrasiesTerrie Campbell, vice president of strategic marketing at Ricoh America’s Corporation, did a fantastic job explaining to attendees the differences

among the three primary generations in the workforce (Baby Boomers, Gen X, and Gen Y) in her session. According to Campbell, Gen Y is vastly different in almost every way from Baby Boomers and will comprise of 50 percent of the workforce within the next three years. Campbell spend a bulk of her time explaining that companies must assess the knowledge distribution of their organization and create a plan to translate the information and experience carried in the mind of Baby Boomers into a broader concept Gen Y-ers can digest and implement before the former generation retires.

According to Campbell, partnering the two generations together within your organization is a great way to pass along knowledge from more experienced workers to younger employees. One key for businesses will be to understand the Gen Y-ers come with a different way to learn, communicate, and utilize technology. These differences will change the way employees work as well as how companies interact with clients in the coming years.

Transform Global 2013 concluded last night with a charity dinner hosted by the Photizo Foundation. To date, the foundation has raised over $14,000 for charities such as the American Cancer Society and Casas por Cristos. Guests participated in a putting contest, heard a presentation by Shannon Levante of the Phoenix area American Cancer Society, and bid on a framed, original photograph by Mike Lamothe of Office Document Consulting, Inc.

The next Photizo conference will be held in Tokyo, Japan on July 9, 2013. Visit the conference website for more information.

28 io360 | June 2013

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AIIM Workshop: How to Sell Document Management SolutionsBy Ann Priede | Photizo Group

A one-day workshop conducted by AIIM followed the Transform 2013 Global conference on May 9. Titled, “How to Sell Document Management Solutions,” the course was a natural extension of the conference’s Tomorrow track that included sessions on digital workflow and its impact on the printing and imaging industry. Led by Jesse Wilkins, director of research and development for AIIM, who also has a laundry list of certification acronyms after his name, the workshop was designed to apply what attendees know about sales to document management and content management solutions to change how they may normally sell. The class also helped provide a foundational understanding of where the document management market is today, supplemented by research by the Corporate Executive Board.

Enterprise content management (ECM) consists of various components, including document management, record management, business process management workflow, search capability, web content management, capture and scanning functionality, publishing, and archiving. According to the AIIM State of the ECM Industry 2011 report, 80 percent of young professionals find it easier to find information on the web than on their own intranet, and the average employee spends 51 minutes a day looking for documents, which translates into a huge cost for employers.The increased use of collaboration is only complicating matters further, and the mobility trend underscores the need for the productivity gains enabled by robust ECM. According to Wilkins, streamlining processes using automated data capture can increase productivity by 33 percent, a figure that is amplified by the need for mobile remote workers to go back to the office to turn in paperwork. Other concerns addressed by content management include legal and regulatory requirements and data accuracy and accessibility.

Clearly times are changing, and talking to businesses about their content management processes requires a multi-faceted approach. Customers aren’t interested in a lot of features. Rather they want a solution that’s easy to use and manages all of the complexity at the back end. Customers are increasingly “qualifying” themselves using social media, as they air their problems on Facebook, LinkedIn, and Twitter. The consumerization of IT is putting much of IT spending in the hands of business managers, as they work to fix business problems, often without the knowledge or approval of IT. The ability to mobile enable everything is mandatory as even the poorest regions in the world have access to mobile phones, while businesses continue to push forward with requests for cloud solutions that are flexible and minimize their upfront investment.

Our ViewCorporate Executive Board research stats (slide) show that customers complete nearly 60 percent of a typical purchasing decision—researching solutions, ranking options, setting requirements, and benchmarking prices—before talking to suppliers, which means that dealers and resellers have to take a more proactive approach and start the sales process earlier, so that they are out in front of an RFP or can avoid an RFP altogether. It’s important to have a story to tell customers so that suppliers are not competing on price, rather they provoke customers to start thinking about their business in a different way. Dealers and resellers are then in a position to help customers cross the chasm into the next big thing.

Note that AIIM conducts research on its own or on behalf of its sponsors and vendors. This independent third-party research is statistically valid and free to use, even for nonmembers. Visit www.aiim.org for more information.

JAPAN

2013

Coming to TokyoJuly 9

Transform Japan 2013 is a unique conference that allows our diverse imaging industry to network and receive hands down, the most cutting-edge education available for those who are interested in taking their business to the next level.

Edward CrowleyPhotizo Group

Marc HaesenIBM

Presentations will be simultaneously interpreted from English to Japanese

KEYNOTE

Office Products Transformation and

Opportunities

Visit japan2013.photizogroup.com/ for more details

30 io360 | June 2013

Photizo’s 2013 U.S. Office Worker Survey Reveals Shift from Paper-Based to Electronic Business ProcessesBy Ann Priede | Photizo Group

On the first day of Photizo’s recent Global 2013 Transform conference (click here for our review article), Ann Priede, vice president of services and publications for Photizo Group, presented on the changing world of digital workflow. In her session titled, “Putting a Face with a Name: Who Are the Digital Workflow Pioneers?,” Priede explored the impact of smartphones and tablets on today’s business processes. While the increased use of mobile devices does not tell the entire tale regarding digital workflow, smartphones and tablets are playing an increasingly important role in how business workflows are changing to meet the needs of untethered employees, customers, and other stakeholders.

The 2013 U.S. Office Worker Survey that Photizo just completed for its Digital Workflow Transformation Advisory Service found that mobile devices are having a very real impact on historically paper-intensive workflows (see infographic above). Specifically, workers are using their smartphones and tablets to create and consume documents, which could have a serious impact on how, when, and why documents are printed. While nearly one-half of respondents still print due to a variety of issues, the survey also revealed that more than one-third of office workers do not know how to print from a smartphone or tablet—a deficiency that should

concern the imaging industry as more business processes shift from desktop to mobile devices.

For example, approximately one-half of customer support and communication applications are now electronic, with accounts receivable/invoicing, payroll/time systems, training, and human resources/employee on-boarding applications also moving from paper-based to electronic workflows. Moreover, many typical office documents now printed have the potential to be viewed on a smartphone or tablet as technology advancements address issues like security, storage, and regulations that keep hard copy the preferred choice for some office workers and applications.

Our ViewWith more than 1 billion people (out of a population of about 7 billion) now owning smartphones—by 2015, forecasters predict that number will be 2 billion—there is no question that mobile devices have radically altered the relationship between computing and printing, with the balance of power shifting from printed to digital documents. While paper will never disappear entirely, the use of paper will continue to decrease as paper’s share of information content continues to fall. The key to survival for the imaging industry is to focus on the place where paper and digital meet, an area that few companies are currently addressing.

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context charts

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context charts: street prices

context charts: unit market share

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context charts: cost per page

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36 io360 | June 2013

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