Quick Start Guide to Managed Print Services. May 2015

(1)

Quick Start Guide to

Managed Print Services

(2)

(3)

(4)

Today’s Agenda:

§ 

The Opportunity

–  MPS—A Deﬁni;on

–  Market Size, growth

–  Customer beneﬁts

–  You as the trusted advisor

§ 

Compe;;ve Threats

–  Channels

–  Services-‐based model

§ 

Seven Steps to Success

§ 

How to Get Started

(5)

MPS—A Deﬁni;on

Managed Print Services is most commonly deﬁned as: “The ac;ve

management and op;miza;on of document output devices and related

business processes.”

§ 

Typical components include:

–  Data Collec;on soYware

–  Supplies replenishment (toner/ink)

–  Printer maintenance (scheduled and break/ﬁx)

§ 

Addi;onal components may include:

–  Financed equipment

–  Document workﬂow soYware

§ 

Usually billed as a cost per page

–  By device or

–  In aggregate

(1)_InfoTrends

(2)_{Research
and
Markets} (3)_Gartner

(6)

Market Opportunity

§ 

Overall document output ﬂat to declining, but:

§ 

MPS is expected to be $28 Billion market worldwide by 2017

(1)

§ 

MPS will con;nue to be a growing category—10.75% CAGR—20012-‐2016

(2)

Why?

§ 

The Customer Opportunity

–  Large customer spend:

§  Up to 6% of revenue spent on prin;ng, par;cularly paper intensive ver;cals(1)

§  $300 to $800 per employee annually(3)

–  Most customers don’t know what they spend for prin;ng

–  Customers can save up to 30% with MPS strategy(3)

§ 

Your Company Opportunity

–  Higher revenue and gross margin

–  Become the Trusted Advisor

(1)_InfoTrends

(2)_{Research
and
Markets} (3)_Gartner

(7)

Become the Trusted Advisor—Why?

§ 

Customers can’t keep up with prin;ng trends

–  Rarely aware of key trends

–  Don’t understand impact on their costs and opera;onal eﬃciencies

§ 

This is not their core competency

–  Running their business is their core competency

–  No resources to manage these costs

–  Costs scakered throughout the company

–  Leverages your outsourced IT Services value proposi5on

§ 

Customers focus on op;mizing the components, not the system

–  Maintenance, printer replacements, supplies, etc. oYen bid out at lowest cost

–  Internal, proac;ve monitoring and management of printers not common

–  Decisions made at lower levels against budget, not on a system-‐based ROI-‐

(8)

Compe;;ve Threats

§ 

Reseller channels—from co-‐exis;ng to compe;ng

–  Transac;onal selling of prin;ng/copying

§  Oﬃce equipment, oﬃce products, IT supplies, and other print/copy resellers

§  All looking for more share of customer spend on bids, RFQs

–  Selling Managed Print Services

§  Contracted business (1 to 5 years, depending on complexity)

§  Aggregates customer spend on print

§  Locks out compe;tors

§ 

MPS-‐focused resellers expanding services-‐based oﬀering

–  Access to customer C-‐level via MPS engagement

–  Enables other services-‐based oﬀerings-‐-‐IT Services

(9)

Seven Steps to Success

1. 

Determine Your MPS Oﬀering

2. 

Develop Alliances/Partnerships

3. 

Write a Business Plan

4. 

Determine the Sales Approach

5. 

Stra;fy Your Customer Base

6. 

Build a Consistent Sales Funnel

7. 

Ac;vely Manage Your MPS Client

(10)

1. Determine Your MPS Oﬀering

§ 

Level One—Walk in, Take Over (WITO) exis;ng ﬂeet

–  No assessment, no cost analysis

–  Bundle, per page, aggregated billing op;ons

§ 

Level Two—Assess, Op;mize exis;ng ﬂeet

–  Assessment, walk throughs, cost analysis

–  Per page and aggregate billing op;ons

–  Move/remove devices to op;mize costs and document workﬂow

§ 

Level Three—Assess, Op;mize the print environment

–  Assessment, walk throughs, cost analysis

–  Per page and aggregate billing op;ons

–  Add/move/remove devices to op;mize costs and document workﬂow

§ 

Level Four—Assess, Op;mize plus End User behavior

–  Level Three, plus soYware to analyze, reduce wasteful, unnecessary user

prin;ng

IT, Purchasing Access

(11)

2. Develop Alliances/Partnerships

For the level(s) of MPS selected:

§  What assets(1) and competencies(2) are necessary for success?

§  What do you have today?

§  What are you willing to invest in?

The right partnerships and alliances:

§  Complement your current capabili;es

§  Enable you to “bridge” to your long term capabili;es strategy

§  Enable you to scale and grow your MPS oﬀering over ;me

§  Provide exper;se and knowledge to stay current on market dynamics

(1)_{Assets—Tools,
resources,
systems} (2)_{Competencies—Skills,
knowledge} OEMs Distributors CRM Software!

Consultants

Software Providers Etc. Etc. Etc. 3rd Party Financing

(12)

3. Write a Business Plan

Purpose

§ 

Internal/External alignment on strategy and plans

§ 

Sets context for good decision making

Key Steps

§ 

Purpose, 3 year objec;ves

§ 

Target markets, customers

§ 

Key compe;tors

§ 

Your MPS oﬀering, capabili;es needed for success

§ 

Partnerships and alliances

(13)

4. Determine the Sales Approach

§ 

MPS Specialist

–  Leads/performs tasks for each step of sales cycle

–  Broad skill set (execu;ve selling, analy;cs, etc.)

–  Can be diﬃcult to source/train/retain

§ 

Team Approach

–  Tasks delegated to team (or partner/alliance)

based on skill set

–  Mee;ngs with C-‐level customer oYen conducted

by your execu;ves/owners –  Minimal upfront investment

–  Requires close coordina;on to ensure smooth

(14)

5. Stra;fy Your Customer Base

Key Factors

§ 

The Customer

–  Level of rela;onship you have today (dept. head, func;onal, C-‐level)

–  Type of rela;onship (transac;onal, services-‐based)

–  Quality of rela;onship

–  Size of the account

–  Geography

§ 

Your Company

–  MPS level(s) oﬀered

–  Current MPS knowledge/experience

–  Current organiza;on capabili;es (assets/competencies)

(15)

Ideal Customer Target

§ 

Your MPS oﬀering determines:

–  “Share of spend” opportunity

–  Complexity, length (cost) of sales process

§ 

Customer factors

–  Level of rela;onship

–  Paper intensive ver;cal

–  Likelihood to outsource services

§ 

Alignment—you and the customer

–  Don’t “overreach” your capabili;es

–  Customer impact large enough to cause them to change

(16)

Customer Matrix

Level of Relationship • No MPS • No Contract Selling •  MPS trained •  Contract Exp. •  Broad skills • MPS trained • Contract Exp. • Consulting/SLE •  Buyer •  Office Manager •  Purchasing Mgr. •  IT Manager

Level 1

Level 1, 2*

•  Purchasing Mgr. •  IT Manager •  CFO •  CIO •  CEO

No

Level 1, 2

Level 1, 2, 3, 4

•  CFO •  CIO

•  CEO

No

Level 2

Level 2, 3, 4

(17)

6. Build a Consistent Sales Funnel

T_h e Pr o p_o sa_l Getting the Appointment

Deal Imp_lemen

ta;on Clie nt _Ma na ge_m en_t Conducting the Appointment

§ 

Measure ac;vity at each step

weekly

§ 

Adjust the sales funnel

process and steps to ﬁt your

MPS oﬀering and internal

capabili;es

§ 

Determine who will manage

the client aYer the contract is

signed

(18)

7. Ac;vely Manage Your MPS Client

§ 

Quarterly business reviews

–  Reinforce progress toward savings goals

–  Highlight performance against SLAs

–  Discuss changes in environment

–  Proposals (if applicable) to make changes

§ 

Annual business review

–  With original decision maker (if diﬀerent than QBR audience)

–  Year-‐over-‐year performance

§  Cost

§  SLAs

–  Listen to their plans for upcoming year

–  Return with proposed ini;a;ves

(19)

How To Get Started

§ 

Take ;me to understand, internalize the seven steps

§ 

Thoroughly evaluate partnerships and alliances based on your needs

§ 

Iden;fy customers in your base

–  Paper intensive ver;cals

–  Right level and high quality rela;onships

–  Large enough in size (based on MPS oﬀering level)

§ 

Be involved in selling the ﬁrst engagements

–  Beker understand workﬂow

–  Access talent, skill sets

–  Map deal ﬁnancials to ini;al projec;ons

§ 

Stay focused

(20)

Addi;onal CompTia Resources

(21)

Thank you.

(22)

Asset/Competency Matrix

Step Asset or Competency Level 1 Level 2 Level 3 Level 4

Getting the Appointment A—effective lead generation for target customers ✔* ✔ ✔ ✔

C—effective communication of your company’s MPS V.P. ✔ ✔ ✔ ✔

A—SFA/CRM tool to manage MPS sales funnel ✔* ✔ ✔ ✔ Conducting the Appointment C—Consultative sales approach, selling VALUE, not cost ✔* ✔ ✔ ✔

C—executive-level selling ability ✔* ✔ ✔ Assessment/Cost Consensus A—data collection software ✔ ✔ ✔ ✔

A—end user data collection software ✔

C—technical knowledge to install/manage data collection software ✔ ✔ ✔ ✔

C—ability to conduct thorough customer walkthroughs, collect costs ✔ ✔ ✔

C—ability to organize, analyze data, build case for environment costs ✔ ✔ ✔

A—tools to organize, analyze costs and data collection software ✔ ✔ ✔ Proposal and Contract C—ability to develop customized strategies based on environment analysis ✔* ✔ ✔

C—strong financial skills to build proposal with financing partner ✔ ✔

A—tool to build effective proposals and contracts ✔ ✔ ✔ ✔

A—finance partner with in-depth understanding of MPS financial model ✔ ✔ Deal Implementation C—ability to manage effective deal installation ✔ ✔

C—effective equipment installation and training ✔ ✔

A—project management tools ✔* ✔ ✔ Client Management C—ability to manage billing and reconciliation of pages ✔* ✔ ✔ ✔

C—ability to manage a cost-effective MPS service organization ✔ ✔ ✔ ✔

C—ability to analyze supplies and service cost variables ✔ ✔ ✔ ✔

(23)

Asset/Competency Matrix-‐-‐Exercise

23

Step Asset or Competency In-House Outsource

Getting the Appointment A—effective lead generation for target customers C—effective communication of your company’s MPS V.P. A—SFA/CRM tool to manage MPS sales funnel

Conducting the Appointment C—Consultative sales approach, selling VALUE, not cost C—executive-level selling ability

Assessment/Cost Consensus A—data collection software

A—end user data collection software

C—technical knowledge to install/manage data collection software C—ability to conduct thorough customer walkthroughs, collect costs C—ability to organize, analyze data, build case for environment costs A—tools to organize, analyze costs and data collection software

Proposal and Contract C—ability to develop customized strategies based on environment analysis C—strong financial skills to build proposal with financing partner

A—tool to build effective proposals and contracts

A—finance partner with in-depth understanding of MPS financial model

Deal Implementation C—ability to manage effective deal installation C—effective equipment installation and training A—project management tools

Client Management C—ability to manage billing and reconciliation of pages C—ability to manage a cost-effective MPS service organization C—ability to analyze supplies and service cost variables

A—ERP system to manage SKU and service conversion to pages

(24)

Business Plan Outline

Business Purpose:

Summarize the purpose of engaging in a Managed Print Services model in one or two sentences. Clearly describe the relationship of this effort to your current business model.

Three Year Objectives:

1. Objective number one 2. Objective number two 3. Objective number three

Consider financial objectives, pages under contract, customers under contract, etc.

Target Customers:

List out the top 10 or more customers you will target with your MPS program(s) here.

1. 6. 2. 7. 3. 8. 4. 9. 5. 10. Program Summary:

Summarize the program offerings you will take to your customers (ie. Service/supplies only, with equipment, etc.)

First Year Financial Goals

Quarter 1 = financials, pages under contract Quarter 2 = financials, pages under contract Quarter 3 = financials, pages under contract Quarter 4 = financials, pages under contract

Key Partnerships:

Partner Services/Activities Covered

1. 2. 3. 4. 5.

Quick Start Guide to Managed Print Services. May 2015