In this series, “Dressed Up and Ready to Compete - What Do You Think?” we'll look at some "MPS" indicators and market directions so that we can address the questions... or at least be aware of what's taking place.
Just one more sign that the OEM's are pushing down stream.
"Xerox Exec: Our Managed Print Margins Beat HP's"
"Xerox (NYSE:XRX) North America President Russell Peacock said VARs that partner with Xerox can make better margins on managed print services than those that partner with HP. And despite HP's market dominance in printing and imaging, he said, Xerox is the one leading the way on managed print services and the software and annuity models that will define the market going forward.........." Read Morehttp://www.crn.com/managed-services/224700858
So last week, in Part V of this series, “What Do You Think; How Will You Respond”, we continued our discussion about MPS, switching our attention to HP and their latest announcement. Well, there’s a debate brewing on the horizon as to which OEM would represent the best MPS solution for the channel. So what’s your stance; which way you leaning? Do you want to go fourth waving the HP “MPS” flag or sell Xerox’s “MPS” solution?
For me, it’s a simple question to answer; neither. I know a few people that have been down this road a time or two and they have always wound up on the short end of the stick. You’re always part of a strategic "go to market" strategy, until you’re not. Given the options present in the "MPS" space today, why take that level of risk; you just don’t have to and you’ll be a lot better off if you don’t.
As I’ve heard so many say, you have to get this MPS thing right; because getting it right is critical to the process; I couldn’t agree more. So what’s "getting it right" and when’s the right time to movin? I would argue that right now is the time to serious about your solution and getting it right is implementing it on your own terms. So is getting it right buying into the Xerox or HP model; or any other OEM's model for that matter? Possibly getting it right is making sure that you own your solution and you’re "go to market" strategy; independent of the manufacturers.
Do you need to own the entire delivery model or is that also your decision? Can you change your mind along the way and still own the process of delivering “MPS” to your customers; who should get to decide? Should you jump on a complete distribution model where others get to decide the direction of your “MPS” solution. I'm goanna argue no and I'm goanna bet I'm right. So, what to do? We'll how about options; how about leveraging the geographic reach of others.
The MPS space is changing, shaping up...whatever you want to call it and we all need to be aware of the moves; positioning taking place with the big boys and how we're each positioning our own companies.
Be excited about all the new opportunity and take control of your solution. But please, if you’re an HP dealer, Xerox channel dealer or whoever chammel partner, do not get caught up in their solution; own your own process. As they continue to redefine their channels stay independent and have your own direction.
HP, like Xerox, like Dell and the others have all come to play. The "channel" will be redefined and each will have aggressive divisions going direct. This is not going to make things easier for us Independents. But here's the truth...and a great one at that. There is "Strength in Numbers", distributed reach and leveraged expansion? Remember, it’s the Power of the Independent: Local Dealers - National Solutions.
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2 comments:
Eddie, do you see a "federation" mentality required to survive the onslaught of the directs? While I like to think the "big players" can deliver higher-end expertise, there is also the component of aggressive price competition to obtain market share.
This model is very difficult to sustain, and requires a laser-focused value proposition. However, I relish talking to the nimble and the creative independents, as they hold with my ideals of solving the problem by taking care of the customer (even when the customer doesn't know they are broken).
So, to wrap back around, is federation the model to survive (e.g. group healthcare, buying groups, etc.), or are there other ways to thrive and not just survive?
Warmest Regards,
Ken Stewart
ChangeForge
Ken,
Interesting word choice “federation” but, I can certainly play off that. I do see a future “federation” of independent Service Providers, being brought to the table and part of the Global MPS solution. It was the independent that formed this industry; brought toner and cartridge sales to the market through protected distribution channels. When the device broke, they were there to fix them and through them was birthed the compatible market; talk about a green initiative.
I don’t know if I would necessarily draw a direct parallel to “buying groups” or “group healthcare” (all good things that have proven effective), rather, more organizational structure to service delivery, one that helps foster best practices, removes current inefficiencies by forcing compliance to a process (a managed print process). This will inherently help the dealer compete at any level while improving internal operational efficiencies; more streamlined and efficient at delivering MPS (real world on the job training).
I think “federation” is more about providing the independents with leveraged systems and processes that help automate service delivery; one that fosters complete data transparency and one where each controls their own buying decisions. If collectively, some wish to ban their resources together to effect better purchasing options, then it will serve that purpose as well; nothing new there.
As a side note, I find it interesting just how many Companies are afraid to bring the OEM’s into their own accounts; these are the OEM’s very “channel partners”. Yes, the “big boys” are taking their solutions to the street; direct and the Channel isn’t exactly feeling the warm and fuzzies’ about it. So I think it’s more about leveling the playing field and letting good people, running good companies not survive, but thrive. These are great times and MPS has created tremendous opportunity and the reality is…..there is strength in numbers and yes, a local dealer knows his market and can deliver value cost effectively; and given the right tools and leveraged resources, they can individually and jointly be a power to reckon with.
Always appreciate your insight,
Eddie
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