Managed Print Services: the Theory, the Tools, and the Targets (Part 1 of 3)
Today we start our three part series on Managed Print Services: the Theory, the Tools, and the Targets.
Managed Print Services, or MPS as it is referred to, is as much art as it is science. As of yet, customers do not fully understand it, and the scary thing is that there are very few solutions providers that do either.
According to pundits and neophytes alike, MPS has garnered a special place among those in the output industry. Everyone hails it as the next ‘big thing’ that will yield buckets full of money in an industry marked with year over year declines in margins.
Indeed, properly managed right-sizing initiatives can be very profitable and save a customer a good deal of money over alternatives. How can someone deliver on revenue for one while showing savings for another?
Let us examine some of the theory behind why a company would venture into review of MPS in the first place.
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The traditional copier fleet has found its way on to the wire and the space for document output has become crowded in a “me-too” frenzy of ’speeds and feeds’ (and industry term used to describe a cost-minus sales approach).
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There is a huge collision between the space of the traditional copier/mfp manufacturers of the world (Xerox, Canon, Sharp, Ricoh, Konica, Kyocera, etc.) and the printer manufacturers of the world (HP, Lexmark, etc.).
Given these dynamics and the complexity of these devices’ feature sets, more and more often IT is being asked to manage the device fleet. And what does IT do better than almost any other organization within the business - identify and implement processes through standardization.
…stud[ies] shows that decision making for MPS agreements is driven by the IT organization over 60% of the time. In many cases, the traditional copier decision makers (purchasing, facilities management, and operations) are ‘losing out’ in the internal struggle to control the hard copy device fleet (the collective group of copiers, printers, and MFP’s which reside in most organizations). - Ed Crowley, CEO of The Photizo Group
Savvy “copier dealers” and “printing VARs” alike are rushing headlong into their version of MPS - trying to put their spin, trying to evangelize customers, trying to win the land grab!
What makes a sound partner yesterday still makes a sound partner today:
Managing printers is not a new thing. IT has been doing it for decades now - and HP has been helping customers do it some fashion or another. The trend now is to right-size your fleet of output devices and lower operating costs across the board.
Many statistics point to the majority of document costs being in the related costs area - not in the fleet acquisition or actual realization of the document on the output device. One big area network administrators can speak to is the rampant number of calls they receive on printing related issues, for instance. I know I can.
With trends in outsourcing over the last decade, CFO’s and CIO’s alike are looking for ways to help their balance sheet. Does offloading an unattractive portion of the P&L to a strategic partner make sense? Couple this with the ability to refresh the technology, control your costs, and throw in an economic downturn, now you have a boiling pot of water ready for the chef. It’s what they call a classic ‘win-win’.
Strategy not tragedy:
However, many customers remain uneducated on what they are spending and what a properly equipped partner can bring to the table.
As with any opportunity there are many “fly-by-night” operations, and it behooves the client to educate themselves on options, and just what their prospective partner’s definition of MPS actually is. As they say, “The Devil is in the details.”
Customers can avoid many unpleasant situations by simply reading the contract and asking pointed questions. Crowley also points out that many organizations go through phases of learning what they want, so there appears to be some education in the negotiations as well:
Another finding from the study relates to how the components of MPS contracts tend to change as decision makers gain more experience. This is driven by changing expectations as decision makers gain experience with MPS and begin to raise their expectations beyond simply gaining control of the fleet to actually optimizing the fleet, and eventually, enhancing the firm’s business processes by adding new fleet and document management / workflow capabilities.
With all of that said, a blossoming opportunity remains on the forefront of both vendor and customer alike.
Up Next: we discuss the various software tools used in helping companies manage their fleets.
Update: Read the entire series.
Ken Stewart’s blog, ChangeForge.com, focuses on the collision between the constantly changing worlds of business and technology. Ken is also the Director of Technology at Kearns Business Solutions.
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ChangeForge... a catalyst to affect the paradigm by Ken Stewart is licensed under a Creative Commons Attribution-Share Alike 3.0 United States License.
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June 19, 2008 at 12:07 am
[...] Read Part 1 [...]