"An effective print output environment cannot be based on hardware any more than a building is just bricks, mortar, wood and metal.

These raw materials provide an effective working or living environment only when some architecture and design are applied."

Copyright 2009 Business Communications Group, L.L.C.

Monday, May 11, 2009

MPS – A Contrarian Viewpoint?

First off, let me acknowledge that some of the following assertions and observations are generalizations but that is germane to this posting.

It appears to me that the majority of participants in this industry equate managed print services with cost-per-page or device (fleet) management programs which include supplies, fix/repair services and some degree of usage reporting. If this observation is correct then my view of MPS is contrary to the industry in general.

I have been arguing for some time that MPS is actually a collection of service offerings designed to help clients design, implement and manage a digital document output environment rather than just manage output devices. Further, I would outline the MPS roadmap as follows:

  • Assessment services
  • RFP & bid management
  • Supply sourcing and management
  • Fix/Repair services
  • Technical support
  • Hardware placement
  • Workflow design & implementation
  • Strategic management services
The question you should be asking is “why is this important to me or my clients.”

While CPP or device management programs may reduce end-user client expenses they do not necessarily solve the underlying problems – a lack of environmental management. A comprehensive MPS engagement on the other hand will address these causative factors and deliver additional benefits such as efficiency, productivity, sustainability and additional savings.

If, as a service provider, you ignore the MPS components other than device management you are not only short-changing your own business but your client(s) as well.

Maybe even more important is the following question:

“As device management services mature, what will be my differentiator other than the cost of my services; will I be able to compete with other service providers who offer more robust managed print services?”

We have seen margins decline in both traditional MFD and printer markets; what makes us think that competition will not bring the same results to device management services?

I realize that every dealer may not have the resources to enter this market with a full set of managed print services but at least you should be aware of the long-term prospects so you can plan accordingly. Enter the market now with what you can do but plan your offerings to fit into a larger professional services practice or develop partnerships to supplement your capabilities.

A case in point is the practice of providing free print assessments to capture the supply and service revenue from network printers. If you are investing the time why not execute them with enough value to charge a reasonable fee? If margins do decline will you be able to continue to bear the costs associated with assessments? The rush to free assessments reminds me of the rush to provide free copier trials as that industry matured or no-charge networking support for MFDs: where did that get us all?

MPS services provide value to the client if executed with their best interest in mind and most reasonable clients expect to pay for services which deliver measureable benefits to their organization.

It seems to me that providing MPS components free of charge indicates you are trying to sell services using a hardware (or supplies) sales model rather than the appropriate model for a professional services offering.

I invite you to view my version of the MPS Roadmap on my LinkedIn profile at http://www.linkedin.com/profile?viewProfile=&key=3614067&trk=tab_pro

4 comments:

  1. You raise some valid points here. I think the definition of MPS is quickly becoming similar to people's definition of Document Management. It means different things to different people.

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  2. Very salient. I have come to a conclusion that I feel it rather pointless to define MPS any more, as Max suggests. I certainly side with you in the grander evolution of things, but MPS is exactly a hardware driven sales ploy in many instances. This is not always bad if the motivations are to pay the bills by selling hardware, while maintaining a more agnostic approach to client deployments - AND - you are up front with your clients about where you make your money.

    As long as our paths are traveling in a mutual direction then so be it.

    Warmest Regards,
    Ken Stewart

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  3. I think that it is quite valid that there SHOULD be different approaches and solutions in the MPS space. After all, some people might only need hardware approaches, some people might only need software approaches, many people might need hardware/software approaches, and a few might even benefit from pushing much of their decentralized print back to a centralized environment, where the cost per page is very cheap.

    To me, the MPS is handicapped in the user space by a majority of users not even being willing to admit that they have a problem, and the MPS space should encourage multiple solutions in multiple areas in order to make sure that it encompasses the largest swath of interest parties.

    William J. 'Bill' McCalpin

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  4. In the case of MPS, definition is not as critical as consummation! In other words...how well you meet your customer's needs is more important than what you call it or how you package/sell it. As hardware and software offerings mature I believe the ultimate differentiator in MPS is two key areas that are critical to success...but often ignored. Change Management and Behavior Management.

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