{"id":11459,"date":"2015-02-27T08:14:23","date_gmt":"2015-02-27T16:14:23","guid":{"rendered":"http:\/\/www.enxmag.com\/twii\/?p=11459"},"modified":"2016-09-15T10:00:38","modified_gmt":"2016-09-15T17:00:38","slug":"meet-the-new-konica-minolta-not-the-same-as-the-old-konica-minolta","status":"publish","type":"post","link":"https:\/\/www.enxmag.com\/twii\/the-week-in-imaging-twii\/2015\/02\/meet-the-new-konica-minolta-not-the-same-as-the-old-konica-minolta\/","title":{"rendered":"Meet the New Konica Minolta, Not the Same as the Old Konica Minolta"},"content":{"rendered":"<p><img loading=\"lazy\" class=\"alignleft size-medium wp-image-11485\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2015\/02\/IMG133-300x225.jpg\" alt=\"IMG133\" width=\"300\" height=\"225\" \/>Last week in Los Angeles Konica Minolta Business Solutions (KMBS) held its annual dealer meeting. After sitting through the general sessions, witnessing the variety of educational sessions available, and walking the showroom floor as well as reading between the lines, it\u2019s safe to say that KMBS continues in its transformation into a company intently focused on solutions and services, that, oh by the way, sells hardware too.<\/p>\n<p>That may run counterintuitive to some OEMs whose mission is still moving boxes. But let\u2019s not assume for a second that\u2019s not important to KMBS even as management within the organization here in the U.S. and the home office in Japan have come to the realization that the only way to survive and prosper in the future document imaging environment is to think outside the traditional box.<\/p>\n<p>And thinking outside the traditional box could just as easily have been the theme of the meeting as \u201cThe Art of Disruption,\u201d the actual theme of the event and a theme that some of my peers in the press and analyst community have gone gaga about over on Twitter. You\u2019d think they\u2019d never heard or used the word \u201cdisruption\u201d before even if it is an analyst\u2019s go-to word when talking about emerging technologies, services, and solutions. <em>\u201cOh, what\u00a0a disruptive technology!\u201d<\/em><\/p>\n<p>I\u2019ll stay away from the disruptive hype for now and focus instead on what I observed along with what a few dealers and exhibitors also observed at this event.<\/p>\n<p><strong>A New Strategic Alliance<\/strong><\/p>\n<p>Let\u2019s start with a couple of the big announcements made last week, announcements that have already hit the media, including <em>ENX\/The Week in Imaging<\/em>. One of the big announcements was Konica Minolta\u2019s strategic alliance with MWAi to bring the AP FORZA ERP to its dealer channel.<\/p>\n<p>This relationship allows Konica Minolta to offer the first and only open-architecture, true ERP solution, MWAi FORZA, a solution designed specifically for the imaging channel. According to the press release, \u201cMWAi FORZA with SAP Business One provides a single sign-on, single database business-management platform designed for office dealers and resellers. The system is designed to help dealerships unify, manage, and control their entire business across financials, sales, customers, and operations.\u201d<\/p>\n<p>According to MWAi President Mike Stramaglio, dealers seem to like the fact that it\u2019s a true ERP and integrates not only with Konica Minolta, but other data points such as the leasing companies, for example. \u201cIt\u2019s a true robust working system,\u201d he told me. \u201cBig data works, it\u2019s more cost effective, and it\u2019s truly automated. So when you start talking about meters, it\u2019s automated. It\u2019s not a flat file, it\u2019s actually built in.\u201d<\/p>\n<p>This solution has been embraced by some big dealers although Stramaglio added that it can easily benefit dealers of any size.<\/p>\n<p>MWAi is also signing up dealers to resell this solution to their customer base as part of their network services offerings. \u201cIt\u2019s a revenue generator and a significant business model change,\u201d added Stramaglio.<\/p>\n<p><strong>Additional Announcements<\/strong><\/p>\n<p>Another big announcement coming out of Los Angeles was an expanded relationship between EFI and Konica Minolta. Under the expanded agreement, Konica Minolta and its authorized dealer network will service and sell EFI Wide Format LED and UV inkjet printers. The non-exclusive agreement expands the market presence for EFI to KMBS\u2019s customer base of North American digital-printing providers. EFI\u2019s hybrid roll\/flatbed wide-format printer, the <a href=\"http:\/\/globenewswire.com\/Tracker?data=C2PMoiVXcQ97kHdETSTGMiWVm-SUGE_HdoynPJj9mOVJLUT-ueS-9JN2hzinkqygLTaHxx5Jqtl_gppTuxwFh0I9a899Uh-_WgyFQxgBLoA%3D\">EFI H1625 LED<\/a>, will be\u00a0the first printer available in KMBS sales channels through the new agreement.<\/p>\n<p>Earlier this week I spoke with Charles Grace, vice president of sales for EFI for another article I\u2019m writing, who told me that this wide format machine and Konica Minolta are a good fit. \u201cThat\u2019s our lights out machine in wide format and we\u2019ve sold out of this product for three quarters in a row,\u201d he says. \u201cNow we\u2019re picking up Konica Minolta and that\u2019s just going to be a win-win all the way around. I can\u2019t remember if there\u2019s been anything this revolutionary in this segment of the market. It\u2019s a big deal.\u201d<\/p>\n<p>Getting back to how KMBS is moving beyond the box, look no further than the continued expansion of its All Covered network as well as its acquisitions of ECM companies (Look for an interview with All Covered\u2019s Nick Pegley next month). That doesn\u2019t sound like a box mover does it? Rhetorical question aside, it sounds more like a company that is making itself increasingly relevant in a changing document imaging environment.<\/p>\n<p>At KMBS\u2019s 2014 dealer meeting they alluded to a prospective partnership with 3D Systems. That partnership became a reality the end of last year. This year 3D printing was front and center in the \u00a0General Session presentations, in the breakout sessions, and on the showroom floor, underscoring the relevance of 3D printers to the traditional office technology dealer channel.<\/p>\n<div id=\"attachment_11513\" style=\"width: 160px\" class=\"wp-caption alignleft\"><img aria-describedby=\"caption-attachment-11513\" loading=\"lazy\" class=\"size-thumbnail wp-image-11513\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2015\/02\/Loffler-e1425063715872-150x150.jpg\" alt=\"JIm Loffler\" width=\"150\" height=\"150\" \/><p id=\"caption-attachment-11513\" class=\"wp-caption-text\">JIm Loffler<\/p><\/div>\n<p>Konica Minolta\u2019s dealers are taking notice.<\/p>\n<p>Jim Loffler, president of Loffler Industries in MN, was impressed by the investments Konica Minolta is making into the business for their dealers. \u201cTake 3D for example, \u201che says, \u201cit\u2019s been on our radar for a couple of years and we\u2019ve done deep dives on it. They\u2019re putting together a program that will enable a dealer a dealer to get into the business. You almost need an engineer or a high-end technical person to do that business. They\u2019re helping dealers along the way. We\u2019re bigger than most and are capable of doing it ourselves, but it\u2019s nice when you have a partner that can help.\u201d<\/p>\n<p>KMBS\u2019s 3D printing initiatives also made an impression on Becky Offutt of Komax Business Systems in West Virginia. \u201cWe were impressed with the 3D Printing Opportunity discussion and are looking forward to more information,\u201d she says.<\/p>\n<p>She and her business partner Bob Maxwell also found the seminars on educational, legal and healthcare vertical markets helpful.<\/p>\n<p>Two other strategic alliances of note announced at the meeting include one with Clover Technologies, focusing on recycling and remanufacturing of consumable imaging supplies. Plus, to support the relationship with Clover, KMBS has made a major investment with Ariba to provide order entry, processing, and tracking.<\/p>\n<p>If you can judge a person by the company they keep, you can do that with a company like Konica Minolta as well. And when you look at some of the partnerships they\u2019re engaged in along with the new acquisitions they\u2019re making in the Managed Services and ECM segments, they seem to be making all the right moves to maintain their perch in the upper echelon of OEMs. And when you look at some of the dealers in attendance, they\u2019ve got some elite ones there as well.<\/p>\n<p><img loading=\"lazy\" class=\"alignleft size-medium wp-image-11487\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2015\/02\/IMG134-300x225.jpg\" alt=\"IMG134\" width=\"300\" height=\"225\" srcset=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2015\/02\/IMG134-300x225.jpg 300w, https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2015\/02\/IMG134-1024x768.jpg 1024w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>No wonder they\u2019re doing so well from a financial perspective. It\u2019s difficult not to be impressed by the company\u2019s performance over the past year and when things are going well, that\u2019s heavily touted in the General Session. When not, it\u2019s often ignored or buried behind hyperbole.<\/p>\n<p><strong>By the Numbers and More<\/strong><\/p>\n<p>During the Monday General Session, President and COO Rick Taylor reported that Konica Minolta with the help of its dealers had another extremely successful year. \u201cWe have substantially grown our revenue, profits, units, and page volume in our core business.\u201d<\/p>\n<p>He added that KMBS\u2019s production print and enterprise print business continue to grow dramatically and new businesses are flourishing. \u201cAll Covered will bill $200 million in Managed Network Services revenue this year,\u201d said Taylor. \u201cAnd the new Enterprise Content Management practice will reach $40 million in the coming year.\u201d<\/p>\n<p>Taylor expressed how proud he is of growing Konica Minolta\u2019s revenue by $800 million over the last six years. \u201cJust our growth in total revenue exceeds the total revenue of three of our competitors in the MFP business in the U.S. in their entire history,\u201d he observed.<\/p>\n<div id=\"attachment_650\" style=\"width: 160px\" class=\"wp-caption alignleft\"><img aria-describedby=\"caption-attachment-650\" loading=\"lazy\" class=\"size-thumbnail wp-image-650\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2011\/04\/Rick-Taylor-1-e1425063764707-150x150.jpg\" alt=\"Rick Taylor\" width=\"150\" height=\"150\" \/><p id=\"caption-attachment-650\" class=\"wp-caption-text\">Rick Taylor<\/p><\/div>\n<p>The company clearly takes pride in disrupting the market as well as disrupting the comfort zones of its dealers, many of whom are willing to embrace that challenge. \u201cWith such clearly documented success, why look for any disruptive change?\u201d Taylor asked his dealers. \u201cBecause disruptive innovation is how we\u2019ve grown at such an impressive pace. Our choice today is to disrupt or be disrupted. Because our core business is changing, the infrastructure, workflow, technology, and workforce are demanding that we adapt with them. Today, the riskiest thing we can do is play it safe. We will successfully disrupt our market by investing and exploiting opportunities that others don\u2019t see the results will be exponentially greater returns.\u201d<\/p>\n<p><strong>What&#8217;s New?<\/strong><\/p>\n<p>During the two-day event Konica Minolta unveiled new products, software, and services that Taylor said \u201cwill create change today and into the distant future.\u201d<\/p>\n<p>Focusing on traditional technology, Konica Minolta introduced scalable firmware architecture that was displayed at 72 workstations in the showroom, compared to 43 last year. \u201cThat shows how far we progressed in vertical markets and solutions,\u201d noted Kevin Kern, senior vice president marketing.<\/p>\n<p>Konica Minolta now offers greater mobility support with capabilities to support iOS and Android print, AirPrint, Google Cloud Print to go along with Konica Minolta\u2019s own PageScope mobile app that\u2019s had \u00a0more than a quarter million downloads to end users so far. Meanwhile, coming this summer is Near Field Communication Print and Bluetooth LE (Low Energy) to allow for printing and authentication with authentication transmitted from a phone to the printing device.<\/p>\n<p>The new scalable firmware architecture will be common to Konica Minolta\u2019s A3 and A4 products over the next 18 months. \u201cThis means every product is running a version of the same software,\u201d said Kern. \u201cThe second benefit is internal Web services and API support will now be standard. No more separate kits to install the APIs or internal Web services.\u201d<\/p>\n<p>Dealers can expect to see new products with this architecture this summer, including new 30- and 36-ppm color devices. Also on tap are new Segment 2 and 3 A3 offerings, both in color and mono.<\/p>\n<p>Kern explained that these products fill the gap between higher end A4 and entry level A3 products. Key features include the new firmware architecture, a 7-inch touch screen, and the same solutions capabilities as higher end products in the line. Also standard are Inter-Web services support of API and a more compact engine design. \u00a0The first products are 22- and 28-ppm monochrome devices that will be sold in parallel with 28- and 36-ppm bizhub-e Series products. Between late this year and early 2016, new products based on the same concept, sold with upgrade D series color products are scheduled for release.<\/p>\n<p>Kern also reported that Konica Minolta\u2019s A4 sales are growing and that the company will add new products that fill the gap in the product line, notably the bizhub C3850FS. This device includes a standard 50-sheet stapling inner finisher for customers who require light stapling capability.<\/p>\n<p>When one talks about production printing of late, Konica Minolta is becoming increasingly part of that discussion. \u00a0Consider that its Segment 5 and 6 sales are up 22 percent over the prior year as is its growth in color aftermarket sales. Worth noting as well is that Konica Minolta is the only manufacturer providing EFI and Creo controllers on its new generation products. Whereas other manufacturers have dropped the Creo, Konica Minolta continues to meet the needs of those customers who still see value in the Creo controller.<\/p>\n<p>At the high end of the production segment is the KM1, an inkjet press developed by Konica Minolta and Komori. The first prototype was displayed at Graph Expo in 2014. It\u2019s a B2 size press that does six up, letter size in a single pass. \u201cWhat\u2019s exciting about this product, going to beta test in first half of year in U.S. and limited sales later this year,\u201d reported Kern.<\/p>\n<p>Konica Minolta dealers will have access to this product once available.<\/p>\n<p><strong>Science Not-So Fiction<\/strong><\/p>\n<p>Looking beyond the traditional productions, solutions, and services, KMBS is on the verge of getting all Blade Runner. With the document imaging industry\u2019s focus on security, KMBS is taking that to the next level by adding EyeLock identification to its MFPs. This replaces passwords and access cards with retinal scans, which offer, not so surprisingly, greater security.<\/p>\n<p>Delving deeper into the disruptive theme is a partnership with Robin Powered, a company focused on sensor-based technologies and workplace automation. The company\u2019s aim is to build a smart office, and among its software\u2019s features are shared calendars and responsive conference rooms that sense an employee\u2019s arrival and \u201cpush\u201d that information to fellow employees (a team member who may have forgotten a meeting, for example). The company has products in development that range from an employee\u2019s favorite song playing when they walk into a room, to the practical, such as specific-to-a-person phone chargers popping out of desks when the person arrives in the office.<\/p>\n<p>What\u2019s also interesting in a progressive way are potential partnerships with other tech companies. One is Knightscope, a company that makes robots that can reportedly see, hear, feel and smell and \u201cwatch over\u201d corporate campuses and neighborhoods. The robots are fully autonomous, and are used to predict crimes in schools, businesses, and neighborhoods. The K5 robot detects crime using a variety of sensors including video camera, thermal-imaging sensors, laser-range finder, radar, air-quality sensors, and a microphone. If the K5 robot detects abnormal noise and temperature change, or known criminals, it will alert local authorities. Although you may not be seeing KMBS dealers selling these alongside traditional MFPs just yet, Taylor pointed out that somebody will have to be responsible for servicing this technology some day. What channel is better equipped to do that than the office technology dealer channel?<\/p>\n<p>More innovation is happening at KMBS\u2019s Stanford Innovation Center that will also be finding its way into future products and as new products and solutions, but that\u2019s a story for another time. However, that, along with 3D printing, most impressed David Scibetta of Copier Fax Business Technologies in Buffalo, NY, one of the younger, progressive dealers at the meeting who has no hesitation about embracing new opportunities.<\/p>\n<p>This is science not so fiction and a long-time successful dealer like Jim Loffler certainly understands the importance of embracing new opportunities. He\u2019s keeping an open mind about these outside of the box opportunities that may present themselves to the Konica Minolta dealer channel down the road. \u201cWe always have to be investing in the future,\u201d acknowledges Loffler. \u201cWe\u2019re over the top of the bell curve on imaging. People are starting to print less and it\u2019s still an amazing business and we\u2019re growing like crazy, but what are we going to replace that with? It\u2019s hard to be an early adopter; the pioneers, they\u2019re the ones with all the arrows in their back.\u201d<\/p>\n<p>I\u2019ve only scratched the surface on what went down at the KMBS dealer meeting last week. Expect to read more about what KMBS is doing, or should I say how they are \u201cdisrupting\u201d the document imaging industry throughout the year in ENX and ENX\/The Week in Imaging.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Last week in Los Angeles Konica Minolta Business Solutions (KMBS) held its annual dealer meeting. After sitting through the general sessions, witnessing the variety of educational sessions available, and walking the showroom floor as well as reading between the lines, it\u2019s safe to say that KMBS continues in its transformation into a company intently focused on solutions and services, that, oh by the way, sells hardware too. That may run counterintuitive to some OEMs whose mission is still moving boxes. But let\u2019s not assume for a second that\u2019s not important to KMBS even as management within the organization here in the U.S. and the home office in Japan have come to the realization that the only way to survive and prosper in the future document imaging environment is to think outside the traditional box. And thinking outside the traditional box could just as easily have been the theme of the meeting as \u201cThe Art of Disruption,\u201d the actual theme of the event and a theme that some of my peers in the press and analyst community have gone gaga about over on Twitter. You\u2019d think they\u2019d never heard or used the word \u201cdisruption\u201d before even if it is an analyst\u2019s go-to word when talking about emerging technologies, services, and solutions. \u201cOh, what\u00a0a disruptive technology!\u201d I\u2019ll stay away from the disruptive hype for now and focus instead on what I observed along with what a few dealers and exhibitors also observed at this event. A New Strategic Alliance Let\u2019s start with a couple of the big announcements made last week, announcements that have already hit the media, including ENX\/The Week in Imaging. One of the big announcements was Konica Minolta\u2019s strategic alliance with MWAi to bring the AP FORZA ERP to its dealer channel. This relationship allows Konica Minolta to offer the first and only open-architecture, true ERP solution, MWAi FORZA, a solution designed specifically for the imaging channel. According to the press release, \u201cMWAi FORZA with SAP Business One provides a single sign-on, single database business-management platform designed for office dealers and resellers. The system is designed to help dealerships unify, manage, and control their entire business across financials, sales, customers, and operations.\u201d According to MWAi President Mike Stramaglio, dealers seem to like the fact that it\u2019s a true ERP and integrates not only with Konica Minolta, but other data points such as the leasing companies, for example. \u201cIt\u2019s a true robust working system,\u201d he told me. \u201cBig data works, it\u2019s more cost effective, and it\u2019s truly automated. So when you start talking about meters, it\u2019s automated. It\u2019s not a flat file, it\u2019s actually built in.\u201d This solution has been embraced by some big dealers although Stramaglio added that it can easily benefit dealers of any size. MWAi is also signing up dealers to resell this solution to their customer base as part of their network services offerings. \u201cIt\u2019s a revenue generator and a significant business model change,\u201d added Stramaglio. Additional Announcements Another big announcement coming out of Los Angeles was an expanded relationship between EFI and Konica Minolta. Under the expanded agreement, Konica Minolta and its authorized dealer network will service and sell EFI Wide Format LED and UV inkjet printers. The non-exclusive agreement expands the market presence for EFI to KMBS\u2019s customer base of North American digital-printing providers. EFI\u2019s hybrid roll\/flatbed wide-format printer, the EFI H1625 LED, will be\u00a0the first printer available in KMBS sales channels through the new agreement. Earlier this week I spoke with Charles Grace, vice president of sales for EFI for another article I\u2019m writing, who told me that this wide format machine and Konica Minolta are a good fit. \u201cThat\u2019s our lights out machine in wide format and we\u2019ve sold out of this product for three quarters in a row,\u201d he says. \u201cNow we\u2019re picking up Konica Minolta and that\u2019s just going to be a win-win all the way around. I can\u2019t remember if there\u2019s been anything this revolutionary in this segment of the market. It\u2019s a big deal.\u201d Getting back to how KMBS is moving beyond the box, look no further than the continued expansion of its All Covered network as well as its acquisitions of ECM companies (Look for an interview with All Covered\u2019s Nick Pegley next month). That doesn\u2019t sound like a box mover does it? Rhetorical question aside, it sounds more like a company that is making itself increasingly relevant in a changing document imaging environment. At KMBS\u2019s 2014 dealer meeting they alluded to a prospective partnership with 3D Systems. That partnership became a reality the end of last year. This year 3D printing was front and center in the \u00a0General Session presentations, in the breakout sessions, and on the showroom floor, underscoring the relevance of 3D printers to the traditional office technology dealer channel. Konica Minolta\u2019s dealers are taking notice. Jim Loffler, president of Loffler Industries in MN, was impressed by the investments Konica Minolta is making into the business for their dealers. \u201cTake 3D for example, \u201che says, \u201cit\u2019s been on our radar for a couple of years and we\u2019ve done deep dives on it. They\u2019re putting together a program that will enable a dealer a dealer to get into the business. You almost need an engineer or a high-end technical person to do that business. They\u2019re helping dealers along the way. We\u2019re bigger than most and are capable of doing it ourselves, but it\u2019s nice when you have a partner that can help.\u201d KMBS\u2019s 3D printing initiatives also made an impression on Becky Offutt of Komax Business Systems in West Virginia. \u201cWe were impressed with the 3D Printing Opportunity discussion and are looking forward to more information,\u201d she says. She and her business partner Bob Maxwell also found the seminars on educational, legal and healthcare vertical markets helpful. Two other strategic alliances of note announced at the meeting include one with Clover Technologies, focusing on recycling and remanufacturing of consumable imaging supplies. Plus, to support the relationship with Clover, KMBS has made a major investment with [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":11485,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1638],"tags":[104,2112,750,559,519,224,253,311],"_links":{"self":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/11459"}],"collection":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/comments?post=11459"}],"version-history":[{"count":8,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/11459\/revisions"}],"predecessor-version":[{"id":11516,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/11459\/revisions\/11516"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media\/11485"}],"wp:attachment":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=11459"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=11459"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=11459"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}