Posted on Fri, Jul 23, 2010
I mentioned this last year but it’s worth repeating: this town gets it. They live by the adage ‘Work Hard Play Hard’…and both were on display last week as I spent a couple days in Calgary.
Our Alberta customers represent some of the largest and most progressive companies in Canada. They focus on continuous improvement and work in partnership with their vendors to make this happen. We had some great meetings & were excited to discuss the latest advancements within our service and support operations. Based on my knowledge across the MPS space, I believe LaserNetworks has the most advanced capabilities of any provider in North America. The advancements were well received by our clients…as was our 4th Annual Stampede Party at Ranchman’s.
The other half of the Work Hard Play Hard motto got going as our Pre Stampede Party kicked off 10 days of events across the city of Calgary. We had a great turnout (about 100 guests) on a perfect night for a party. Oh, and my form on the bull-riding was significantly improved this year!
I’d like to thank everyone for coming out & looking forward to our 5th Annual next July. Until then, it’s back to working hard!

Posted on Wed, Jul 07, 2010
This is one of those difficult & polarizing questions. Watching Kobe lead his team to another Championship this past week, I’m tempted to say that experience matters. Then, on the other side of the fence & only three days later, 30-yr old Graeme McDowell wins the US Open at Pebble Beach. I guess he’s been playing golf for 25 years so maybe he does have experience??? And how about those Blackhawks…young team led by 22yr old Jonathan Toews winning the Stanley Cup. Then again, Toews was on the Gold Medal winning Canadian Olympic Team. Hmmm…I’m still not sure if experience matters.
So now the natural transition from athletics to Managed Print Services. There are many companies promoting their abilities to deliver significant value in the MPS space. For smaller customers with limited complexity, I would agree that significant experience may not be an absolute requirement. There are off-the-shelf software and reporting packages available to support basic fleet reporting and billing. However, when customer demands span multiple buildings, city, & countries. When requirements include both on-site resources and the need to leverage your partner network. When the customer has a commitment to transform their print environment and workflow methodologies. And when they believe a cultural shift in print behaviour must occur, I believe experience is critical. If not, the inexperienced vendor may suggest they have the capabilities (and on paper, they may). Unfortunately, when it comes time to execute, the result may not be what the customer has expected to receive, leaving both the customer & the vendor feeling uncomfortable about the result.
As a recap as to whether experience matters…and I truly have gone back & forth, this was the clincher for me. A modest demolition company, in operation for about 3 years, felt they had the capabilities (and presumably the experience) to remove this building…and even after the ‘takedown’ went sideways, they stood by their processes saying that all safety measures were in place.
http://r32argent.blogspot.com/2010/06/global-excavation-and-demolition.html
For me, I’ll continue to err on the side of caution & select the company with a proven track record of delivering on both small & large complex projects.
Posted on Mon, May 31, 2010
Has anyone been following Facebook & their recent challenges around protecting the privacy of their more than 200 million active users? At last count, there were more than 30,000 users committed to ‘quitting' Facebook.
As always, this situation has me thinking about the parallels with printers, copiers, and the privacy that should be protecting these devices.
'Assuming' Facebook was properly managing your security has turned out to be questionable. Similarly, assuming your MPS Provider is treating your confidential data in a secure way may also lead to problems down the road. Printers and MFP's are incredibly sophisticated and if not properly managed, can pose a serious threat to the security of the business. They deliver and communicate data, store information on hard drives and have direct network access. That being said, it's no surprise that there is a lot of buzz nowadays around security.
We've talked about arbitrarily removing personal devices in the effort to save a few dollars. Beyond the potential loss of productivity, this product transition can also result in significant risks to personal and corporate information if not managed with an appropriate focus on privacy and security.
There are a few things to consider when thinking about your print security strategy. I would recommend your supplier(s) (MPS provider, hardware, software, etc) must be able to properly address all of the below:
- How is data stored and ultimately removed from device hard drives?
- How is sensitive information accessed?
- Who has access to information stored?
- Is encryption required?
- Should jobs be tracked?
- Are sensitive documents printed left unsupervised in public spaces?
- What happens to documents that are left behind or forgotten?
- What types of documents are being printed and where?
- What sort of credentials are required for scanning and sending?
- How can printers be accessed outside the firewalls? Inside?
- Are there potential threats around outsourced managed services providers with access?
The list continues but the point is any printer with network access (even ones locally attached) should be treated like any other network device, and vulnerabilities should be addressed. Software solutions can address several issues around secure workflow. However, where the software stops, a strong Managed Services company must step in. Can a hacker get to your printer? What happens to information stored on your devices if they are returned when the lease is up? What did that service technician do with the faulty hard drive he just replaced? I would even challenge you to go take a look at what's sitting in that printer outside your office waiting to be picked up.
We have seen an explosion around MPS over the past 2-3 years, with many new companies (including OEM manufacturers) suggesting they are fully capable of deploying a complete MPS solution. Through my eyes, it's not that basic as MPS is far from being a ‘Me Too' commodity industry. Without significant experience and outstanding processes, the risk exists that when one of the above questions is asked, the Provider may not have the needed experience. Worse still: the Provider is unaware of the security risk of the above & sensitive data escapes into the public domain. Further, if you're considering moving some components of your print environment into the ‘Cloud' one day, these questions will become even more important.
As technology continues to advance, so should expectations around your MPS Provider. While both the direct cost of printing documents and managing workflow should be part of any customer decision, don't stop there. Add security as a critical component to your vendor selection and you'll greatly reduce the risk of personal or corporate information getting into the wrong hands.
Posted on Sat, May 15, 2010
The 2010 MPS Conference in San Antonio confirms the industry is growing. It's also very interesting to see where all of these participants line up on the MPS curve.
The attendance was great, with more than double the participants from the 2009 event. In addition, of these attendees, more than 75% have been providing an MPS solution for fewer than five years. This includes manufacturers revising their go-to-market strategies (Ricoh, HP, Canon, OKI, Xerox, etc.), IT Providers, traditional Copier Resellers, Toner/Supply Remanufacturers, and Workflow Solution Providers. With such a diverse group seeking a better understanding of what it means to provide a true Managed Print solution (and how to provide that solution), the Conference was split into multiple tracks to provide this support for the new entrants into the MPS space. There was also a track for end-user customers that provided some additional research around industry solutions and best practices.
As one of the pioneers of Managed Print Services, and the largest independent MPS provider in North America, LaserNetworks participated in several of these discussions around Best Practices. We also led a session around the environment and how a well-deployed MPS solution can provide customers with a significant reduction in their carbon footprint. Beyond being recognized as one of the Top 5 Green IT Solution Providers in Canada, LaserNetworks' commitment to the environment, and specifically to the reduction of carbon emissions has long been a core value of the company. Below was the kickoff slide from my presentation, showing the near perfect correlation between the increase in global temperatues and the increase in CO2 emissions.
You'll also note the significant ‘hockey stick' over the past few decades as industrialization and emissions have increased at an alarming rate. In terms of MPS, I believe a properly deployed solution, focused on maximizing user productivity & the useful life of assets, will drive down this carbon footprint. There was also a very interesting discussion around the footprint calculation associated with the manufacturing of a device. Often the energy calculations presented to customers shows energy savings afforded by switching to the newer technology. This is absolutely true & is good for the environment when the device must be upgraded due to SLA or technology changes. However, the footprint associated with manufacturing a new machine should also be captured somewhere in the analysis. This was also an opinion shared by Dr. David Suzuki, a leader voice on climate change. (See my previous post)
Unfortunately (to date), I have not been able to find any statistics on the carbon footprint associated with the manufacturing of a new copier, printer, or MFP. The closest I have come is a study by Toyota on the manufacturing footprint of the Toyota Prius, which came in at 28%. So, would the impact of an MFP be greater because it doesn't use gas & oil to power its operation...or would the impact be less because it uses paper (can have a significant footprint) and the toner cartridges are often used only once before being sent for recycling? If anyone has info on this manufacturing footprint, it would be greatly appreciated if you could provide us with some additional insight.
Note: for anyone that would like to discuss the presentation or learn more about LaserNetworks and the initiatives we've undertaken to minimize our carbon footprint, please email me at bstevenson@lasernetworks.com.
Again, I thought the conference was excellent & the topics were relevant. News that the Managed Print Services Association now has over 1,000 members (yeah, a bit of a plug for the Association as I am a Board Member representing the MPS Providers) further cements the growth in Managed Print.
One area I'd like to see the Conference add to its agenda next year is around security. Whether it's hardcopy, electronic workflow, old images that may reside on hard drives, or what complications may reside in the cloud, many of our customers are very concerned with this topic.
Congratulations to San Antonio for hosting a great conference (and my birthday!) & looking forward to seeing our European counterparts in Barcelona this November.
Posted on Wed, Apr 28, 2010
On the road to the MPS Conference in San Antonio via Las Vegas. A few notes from the HP Americas Partner Conference:
Mark Hurd took the stage yesterday, presenting to the largest HP partners across North and South America. A great speaker, Hurd made it clear HP is all about the economics...and the P&L performance of HP suggests he's delivering on that objective! While he didn't spend much time on HP's Imaging & Printing Group, he was very clear about HP's focus on growing their networking business. The data presented suggested 67% of CIOs have been mandated to reduce their carbon footprint within their IT group. HP says the new networking solutions are significantly more energy efficient that provide twice the capability, with a 30%-60% savings over previous technology. Sounds quite a bit like MPS doesn't it?!
Hurd discussed the capabilities and size of HP, in both a positive and negative light. From a positive, HP has a very integrated platform covering everything from the network to pcs to servers to printers. Oh, and HP just announced they're buying Palm...just another billion dollar ‘tuck in'! http://www.cbc.ca/money/story/2010/04/28/hp-buys-palm.html
On the other side, he acknowledged the need to work on streamlining the vast operations within HP, understanding that many processes are simply too complicated & take far too long to get an answer on ‘anything'. They also discussed the significant learning they've been going through with their MPS program and the issues around constrained product. They were very clear on the ‘thank you' to their key partners for ‘sticking with' HP during this cycle.
On the whole, it was an excellent update from HP...now hitting the road to the Managed Print Services Conference in San Antonio. Looking forward to hearing the fresh insight from Photizo on their view of the market & where MPS now sits on the Hype curve.
Posted on Wed, Apr 21, 2010
Can you imagine we have been celebrating Earth Day for the past 40 years? Wow...time flies. Seems like only yesterday the US government proposed legally binding restrictions on the use of ozone-depleting chemicals (btw, that was 1987). In any event, I'm sure like most of us, you are contemplating your personal and/or professional impact on the environment today.
From my perspective, it's good to see more companies establishing green mandates and purchasing policies, and that's good news for the environment. In fact, it could be argued that business and individuals alike have been pushing the ‘green movement' with far more success than our global governments. One is Cisco's One Million Acts of Green. Another area that is working to reduce waste is Managed Print Services (MPS) and we should all be proud of the strides were making in the reduction of waste.
The first step to reducing impact is having a full understanding of resources and processes. That's where Stage 1 of MPS comes in. Stage 2 begins with the consolidation and selection of responsible vendors, selecting supplies and devices that are efficient and responsible and then looking to improve workflow by turning paper processes into electronic ones leads us into Stage 3. A good MPS consultant works with the customer to reduce waste while maximizing the useful life of existing devices, and that's good for the environment...and also a customer's bottom line.
For LaserNetworks, the environment has long been a pillar of both our culture and our vision. This year, we are helping our customers become ‘Print Neutral' during Earth Month. In reviewing some of the facts, we will be planting almost 3,000 trees to off set one month of our customers office printing...and these 5,000 trees simply come from twenty of our largest customers.
Next month at the MPS Conference in San Antonio I will be giving a presentation on Green IT and how you can utilize MPS to support your customer's green initiatives. Until then, here's a list of Printing Tips to reduce your environmental impact.
Posted on Mon, Apr 05, 2010
Does it really cost you 7 cents every time you print/copy a page in an unmanaged print environment? Well, over the years, and as recently as a Gartner presentation last month, I have been hearing claims that suggest the average operating cost per page for print devices are in the range of $0.05 - $0.07 per page.
As a company that manages thousands of these printers, I can confirm that your Cost Per Page contract, when managed as a collective whole, falls significantly below this figure. In fact, the best managed environments often result in the printer-based devices being LESS expensive than the less efficient copier-based devices. Therefore, in an effort to review these claims, I've done some analysis on a typical printer, using the ‘old' way of procurement. Supplies purchased through a contract stationer and parts/service purchased through a Service Pack / Care Pack. Thought we'd look at both a high-volume device & a low-volume personal device (you know, the one everyone wants to get rid of!). Here were the findings:
High Volume device: HP 4250
Low Volume device: Samsung 4826
Example A: High Volume HP4250
Step 1: Consumables: Toner & Maintenance Kit (MK)
Price: Toner @ $310 (Office Depot) & Maintenance Kit @ $390 (Grand & Toy)
Manufacturer Suggested Yield: Toner @ 20,000 pages & MK @ 225,000 pages
Manufacturer Suggested Average Coverage/Page: 5%
Based on the above, the consumables for the HP4250 would cost:
OEM Toner @ $0.0155/page + MK @ $0.0017...or $0.0172 per page.
The competing argument will suggest you don't receive 100% yield on toner...and I would agree. From our experience, the average toner yield is approximately 75% of the OEM Suggested Yield, thus resulting in a consumable cost of approximately $0.0224.
Step 2: Annual Service Contract $218 (based on HP Care Pack, supporting a ‘next business day' level of service). Based on an annual volume of 36,000 (3,000pgs/mth), this results in a further $0.0061/page for next day product support.
Adding the two steps shows:
Step 1: Consumables - $0.0224
Step 2: Service/Parts - $0.0061
Total Cost - $0.0285
Based on this math, it appears the industry assumptions may be exaggerating their cost estimates by up to 40% - 60%...OR possibly they're only speaking about the personal devices? Let's run Part II of this test.
Example B: Samsung 4826
Step 1: OEM Toner @ $75.99 (Bluedogink)
Manufacturer Suggested Yield: Toner @ 3,000 pages
Manufacturer Suggested Average Coverage/Page: 5%
Using a 75% toner yield, the total consumable is $0.0338/page.
Step 2: Annual Service Contract $49 (based on the Samsung Service Pack, supporting a ‘next business day' level of service). Based on 500 pages/mth, this results in a per page service rate of $0.0082/page.
Adding the two steps for the personal device:
Step 1: Consumables - $0.0338
Step 2: Service/Parts - $0.0082
Total Cost - $0.0420
Even with the higher cost of personal devices, the rate per page still remains far below the industry suggested $0.07/page...and the productivity gains realized through the personal devices are hard to dispute (read my blog on personal printers).
So as a recap: a high volume device in an unmanaged program will cost a company just under $0.03/page and a low volume device in an unmanaged program will be just over $0.04. The analysts also suggest that companies can save approximately 30%-40% leveraging a managed environment (or a Managed Print Service agreement). That savings creates a pricing model that looks closer to $0.02/page on the high volume devices & $0.03/page on the low volume/personal printers.
When you look at the above Managed Print pricing, the lower acquisition costs of these devices, and the need to improve business productivity (http://www.cbc.ca/money/story/2010/03/16/productivity-gains.html), it becomes very clear why the industry has shifted to a decentralized & distributed print environment. In fact, according to Lyra Research, total pages printed on distributed (A4) MFP devices has almost doubled over the past two years, while centralized copiers have seen a significant decline in both unit sales and average copy/print volumes on those devices.
I hope the above information equips you with better knowledge the next time you hear $0.07/page! A few basic reminders:
- drill into those statements about the cost of print.
- go to a MANAGED PRINT environment. Even without including the ‘soft cost' benefits, the financial costs will be approximately 30% less than an unmanaged environment.
- Research both the productivity and financial savings available in a distributed print environment vs. the centralized model. You'll be surprised that you can have your cake AND eat it too!
Posted on Fri, Mar 12, 2010
There are some things in life you must experience if given the opportunity...and last week, that opportunity was an invitation to attend the 2010 Winter Olympics. The province of British Columbia, often recognized as one of the most beautiful places in the world, laid out the red carpet & welcomed fans, families, and 5,000 athletes from more than 80 countries across the globe. Admittedly, it didn't start out well but as the Games went along, Vancouver - and Canada - didn't disappoint.
One aspect of sport that I find truly amazing is the athletes' incredible ability to focus...or get in ‘the zone'. The pure dominance of Wang Meng (China, Short Track Speed Skating) & Sean White (USA, Snowboard Halfpipe). Lindsey Vonn (USA, Downhill Skiing), still nursing injuries from a crash earlier in the year, blocked out the pain & put together an amazing run to win the gold medal in the Women's Downhill. Joannie Rochette (Canada, Figure Skating), whose mother passed away two days before her competition, was somehow able to manage her emotions and finished with a bronze medal. 37-year old Clara Hughes (Canada, Speed Skating) winning medals in both the Summer Olympics and the Winter and Petra Majdic (Slovenia) winning a bronze medal while competing with four broken ribs & a collapsed lung!
The list of great athletes is extensive but the trait is the same...amazing focus during a heightened level of chaos. As one of our clients noted during Clara Hughes' performance: if you're not in the zone, it's guaranteed to be a train wreck!
I believe there is an undeniable parallel between business and sport, beginning with the acceptance that there is comfort in chaos! Chaos requires you to act & adapt quickly, and the companies that exploit chaos to accelerate change will win more often than companies comfortable with the status quo. This brings us to the ‘new' industry of Managed Print Services. Yes, some of us have been providing this service for the past 15-odd years. However the drastic reduction in copier hardware sales has resulted in many of these copier companies attempting to rebuild their companies as MPS companies. Unfortunately, as we have seen with so many athletes, only the totally committed will be successful. Does anyone remember ‘Eddie the Eagle' from the 1988 Calgary Winter Olympics? Just because you say you're a ski jumper doesn't mean you ARE a ski jumper.
At least he landed safely. The same couldn't be said for the Jamaican Bobsled Team.
To be the best of the best (gold medal winner) in the heart of chaos takes total focus and total commitment. A bit of lipstick isn't enough...and that's why we're starting to hear these copier companies saying MPS wasn't for them. There were only 86 gold medals handed out...or roughly 1.7% of the athletes. It isn't easy...and may even take some luck! However, given the chaos that was 2009, and the shift of the industry toward the distributed print model, it will be interesting to see the next generation of great companies emerging by the time the 2014 Olympics kick-off in Russia. It will also be interesting to see the ones that don't make it that far. Many will get swallowed up while others will simply disappear...think Smith Corona and Circuit City.
Until then, congratulations to the athletes, Vancouver, & Canada for hosting such a great event. It has absolutely reinforced our quest to be one of the top 1.7% of all companies!
As a final note, here's an amazing recap of the Olympics, from Stephen Brunt of the Globe & Mail. He's much better at summing up the experience of being in Vancouver & in Canada during these Olympic Games.
Posted on Wed, Feb 10, 2010
News & Notes. Here were a few more sounds bites that I found interesting from the Lyra Symposium....
- Intel purchases more ‘green' power than any other company in North America. LaserNetworks is proudly ‘green powered' through Bullfrog Power & it's great to see so many companies paying attention to the environment. Congratulations to Brendan Peters & the guys at Intel.
- Second note on Intel...they have MIB technology that could substantially improve the ease & amount of information on a device. Cheers to Canon for picking it up...unfortunately, most of the other manufacturers are dragging their collective heals suggesting their IP is too important. Sounds a bit like Apple-MSFT, until MSFT began to open things up! Hopefully we don't need to wait another 20 years to pass these benefits on to our customers.
- The Managed Print Services Association was established late last year & already has more than 500 members. Congrats to Jim Fitzpatrick who is leading the charge & doing a great job. It's an honour to be a board member representing the Dealer Channel.
- Remanufactured toner for colour printers/MFPs increased at a rate of 35% in 2009 vs. 2008. Three drivers were cited for this growth: price increases from the OEM companies; toner/product constraints; improved technology/reliability of the remanufactured product.
- There are many ‘shades of green' when it comes to Corporate Social Responsibility (CSR) around the environment. Many of the larger companies are tracking their results, even when they're not perfect (congrats to HP on this one). Very disappointed that Ricoh published their CSR report...some confusing charts but not a single word about the environment. Wonder if there's a correlation between their lack of environmental awareness & their huge revenue drop in 2009? Excluding Ikon, Ricoh's revenue declines over the past four quarters have been: down 25%, down 30%, down 24%, down 26%.
- In 2009, the biggest companies in the print/copy space were HP @ $24billion (print only), Canon @ $23billion (excludes their Oce acquisition), Ricoh @ $17billion (includes Ikon), and Xerox @ $15billion.
- ‘Danger Zone' companies according to Lyra include Kyocera Mita, Sharp, & Toshiba...small percentage of their company's revenue with declining share and minimal investment in printing/copying R&D.
- Xerox acquisition of ACS is very different from HP's acquisition of EDS. ACS is in Business Process Outsourcing (BPO) where EDS was true IT Outsourcing. ACS will represent approximately 30% of the combined revenue with almost 60% of the total employees.
- Memjet will arrive one day...a very exciting product that could truly impact productivity in the office. This deserves its own blog!
- Lexmark have some great new products & were recently awarded Buyer's Lab Mono MFP Line of The Year. Unfortunately for them, the timing of the global recession & the slowdown in hardware purchases has limited any significant marketshare growth for the company.
Posted on Mon, Feb 01, 2010
Called "The Road to Recovery", the 2010 LYRA Imaging Symposium provided some fresh light into the printing and imaging industry as it moves into the next decade. All of the traditional participants were there. The hardware (Printer & Copier) companies were there. The software companies were there. The analysts were there. The large remanufacturers were there. The USEPA (Environmental Protection Agency) were there. And we were there.
Some great presentations & conversations...and admittedly, a few head-scratchers.
Lyra Snapshop - Part I
Day 1 of the Conference started with a keynote address from Tom Codd, Sr. Marketing Director at HP. Overall, a very good presentation from one of the best companies in the print industry. Tom discussed HP's effort to shift their focus toward selling software & services...or a shift to learning & selling MPS. Other interesting points from Tom's presentation:
*The average worker spends 150hrs/yr seeking filed documents. I've heard this stat from Gartner & it still surprises me when I hear it. However, assuming it's accurate, that's three weeks/year per employee and certainly a reason to consider software & workflow solutions. Although it's important to understand the net time savings being realized under such a solution...and from an environmental perspective, do employees begin reprinting these documents over & over as the access is quick & easy? I expect the benefits are real & substantial but it does require additional data to confirm the actual benefits. LaserNetworks has deployed many software solutions over the past five years & have started to analyze these exact questions.
*HP sees the Enterprise client moving to a single partner with a single point of integration. Tom also suggested these enterprise clients are moving from a Labour-based model (Copier world) to a Technology-based model (Printer world). That does appear true when looking at the continued increase in printed pages as a percentage of total pages (printed and copied). Beyond this step, I had hoped to hear Tom acknowledge the shift from the Technology-based model to the Service-based model (LaserNetworks world), led by providers fully capable of supporting the technology. It's clear that technology can be important...however if you don't put the customer first in terms of service, you just may end up with some nice technology.
*HP acknowledged that a high level of productivity is critical when leaving a recession. This brought up some awesome debate. HP (and the other hardware resellers) make the case it's best to consolidate the number of devices & push culture change into the business...it's called the ‘Rip & Replace' model in the industry. From the competing side, which is the service-based companies, there were questions around how productivity could improve if workers didn't have ready access to the on-ramps & off-ramps...how far is too far to walk and what happens to device reliability with the increased volume pressure on the machines? I need to come clean & state that my position is with the Service group & that a company should maximize the consumption value of a device. This means getting the maximum useful life out of an existing device before recycling the asset. The best Managed Service agreement should not penalize a company with a higher Cost per Copy/Print for having ready access to hardware, and that may include personal printers. Here was an old post that discussed this productivity loss.
Given the Canadian Government's comment earlier this month that Real GDP growth will be stuck around 2%/year through this decade because we can't make workers more productive, let's give them the tools (software) & appropriate access to those tools (printers/MFPs)!!
Lots of other interesting things came up during the conference & will post in the coming days. In the meantime, the trip was great but it's sure nice to be home!!!