{"id":1969,"date":"2012-03-09T14:25:55","date_gmt":"2012-03-09T14:25:55","guid":{"rendered":"http:\/\/www.theweekinimaging.com\/?p=1969"},"modified":"2012-03-09T14:25:55","modified_gmt":"2012-03-09T14:25:55","slug":"lexington-and-conquered-lexmark-still-looks-like-a-contender","status":"publish","type":"post","link":"https:\/\/www.enxmag.com\/twii\/feature-articles\/2012\/03\/lexington-and-conquered-lexmark-still-looks-like-a-contender\/","title":{"rendered":"Lexington and Conquered: Lexmark Still Looks Like a Contender"},"content":{"rendered":"
\"\"<\/a>

Lexmark's Printing & Solutions Showcase<\/p><\/div>\n

Last week I had the good fortune to travel to Lexington, Kentucky for a Lexmark press\/analyst briefing. In case you\u2019re not aware I fit squarely into the press category and that\u2019s the way I like it.<\/p>\n

There weren\u2019t any major revelations as far as new products introductions, but the day included an update on Lexmark\u2019s dealer program, a review of the company\u2019s solutions, a tour of Lexmark\u2019s Printing & Solutions Showcase, and overviews of the company\u2019s MPS strategy and U.S. channel focus.<\/p>\n

The briefing began with Chairman and CEO Paul Rooke\u2019s update on Lexmark\u2019s financial performance, the company\u2019s global objectives, and its growth in the SMB market.<\/p>\n

The past year was a challenging one that saw flat revenues as the company was down one percent overall. \u201cWe had economies that were rather stagnant by most indicators, particularly in North America and Europe,\u201d states Rooke.<\/p>\n

There was some growth, however, in Latin America and Asia. Although overall revenue was down one percent, the company\u2019s core business (laser, business inkjet, MPS, solutions) grew about 7 percent in 2011. \u201cThat was encouraging for us in an imaging market that by all indicators declined in 2011,\u201d notes Rooke.<\/p>\n

It came as no surprise that Lexmark will continue to focus on its core business, particularly laser even more in 2012 as it drifts further away from its legacy business\u2014consumer inkjet, a segment they\u2019re no longer participating in. Additionally, Rooke reports the company\u2019s inkjet business with the OfficeEdge line is poised for growth. He describes these products as \u201crobust, solid, network solutions, MPS-capable inkjets, nothing like our previous inkjets.\u201d<\/p>\n

Rooke further emphasized the importance of the company\u2019s fleet management tools and the continued investment in solutions. \u201cWe\u2019re growing our solutions capability to provide more end-to-end solutions capability for our customers.\u201d<\/p>\n

Those end-to-end solutions encompass hardware, software and services.<\/p>\n

The copier channel represents the fastest growing channel for Lexmark. As a result Lexmark is ramping up its dealer programs to emulate what the traditional copier companies offer their dealers.<\/p>\n

\"\"<\/a>

Phil Boatman<\/p><\/div>\n

\u201cBecause of the growth of our dealer program there\u2019s a concerted effort between us, this channel team, and our large account team to leverage the dealer network to drive as much business as possible,\u201d reports Phil Boatman, manager, North America Channel Business Development. \u201cThere\u2019s an obvious recognition of our large account team\u2019s part of the success and power of the independent dealer and the value they bring to the table from the ability to service the account from top to bottom to the local relationships, flexibility, their overall care of the customer. It\u2019s been a big win for us all around as we\u2019ve driven more of our dealers into all sorts of accounts from mid market to large.\u201d<\/p>\n

What\u2019s different in 2012 are growth incentives for dealers rather than the one-size-fits-all approach Lexmark had in the past. \u201cWe\u2019ve been able to drive growth year after year and to continue to grow we need to make our program richer,\u201d acknowledges Boatman.<\/p>\n

More importantly, Lexmark continues to welcomes input from their dealers.<\/p>\n

\u201cWe\u2019re very intent on listening and learning from our dealers,\u201d states Boatman.<\/p>\n

It\u2019s not just the dealer principles who Lexmark wants to hear from either and Boatman says that input from dealer sales reps in the field is equally important.<\/p>\n

If you\u2019re keeping track, Lexmark has about 250 dealers and is looking to grow that number. But they\u2019re not bringing on just anybody.<\/p>\n

\u201cWe want committed, proactive dealers that understand it\u2019s not just about the box,\u201d says Boatman. \u201cWe want a dealer who has a balanced A3\/A4 attack, understands managed print services is here to stay, understands the power of solutions and changing that conversation with their customer and understands that whole picture and moving the conversation to a different level.\u201d<\/p>\n

With that in mind solutions are critical to Lexmark\u2019s growth and viability in the channel and the company isn\u2019t ignoring this area either. Sean Endicott, senior manager, North American Channel Business Development, outlined the various solutions offerings from the company, emphasizing acquisitions such as Perceptive Software and Pallas Athena along with key opportunities such as distributed capture at the MFP, mobility, workflow, and the cloud, plus managing all content not just content residing in databases.<\/p>\n

\u201cThere\u2019s still a lot of paper-based workflow processes out there we can solve,\u201d says Endicott. \u201cWe want the Lexmark device to be the central focus point for capturing [information].\u201d<\/p>\n

As Endicott further emphasized, Lexmark wants to help its dealers with the entire document life cycle. \u201cWe want them to have a piece of that no matter where they are in the value chain,\u201d he says.<\/p>\n

Lexmark views solutions in a couple of different ways, including fleet management via smart MFPs that can solve problems for customers along with single-function devices that provide those capabilities as well. Being able to manage those devices effectively requires what Endicott says is world class service and tools to help the dealer be more intelligent and have confidence in what they are delivering to their customers.<\/p>\n

\u201cFrom capturing to accessing to managing that content whether it\u2019s a Lexmark solution or a third-party device we want to be easy to work with from a dealer\u2019s perspective,\u201d says Endicott.<\/p>\n

The bottom line is Lexmark is looking to drive the dealer\u2019s incremental revenue stream that comes with the software. Also of note for the dealer channel is Lexmark\u2019s focus on embedded solutions such as the smart MFPs with the eTask interface that places the solution on the device itself.<\/p>\n

\u201cIt\u2019s more economical and there\u2019s less barrier to entry,\u201d says Endicott. \u201cOftentimes, you don\u2019t need a detailed IT discussion. These are things that bode very well for the dealer sales rep and what they like about our solutions. They\u2019re easy compared to more server-based applications. The embedded vehicle allows us to bring solutions more often to the customer.\u201d<\/p>\n

\"\"<\/a>

Lexmark's Business Development Manager Solutions, Doug Frazier in the Printing & Solutions Showcase<\/p><\/div>\n

Following Endicott\u2019s presentation, press and analysts took a tour of Lexmark\u2019s Printing & Solutions Showcase where devices and solutions are demonstrated in vertical environments such as education, healthcare, and manufacturing.<\/p>\n

Lexmark may not have been the first on the block to unveil a MPS strategy for the dealer channel, but they\u2019ve got some experience in that area at the enterprise level and have fashioned that into a solid MPS strategy for their dealer channel. \u201cWe want our dealers to know we are leaders in our thinking, our strategy, and our vision for managed print services,\u201d states Boatman. \u201cWe\u2019re translating the successes we\u2019re having in the enterprise space into the midmarket space. I think dealers appreciate that.\u201d<\/p>\n

Lexmark Fleet Manager 2.0 is the name of the company\u2019s toolset for MPS. Originally introduced in 2010, it\u2019s expected to be a key component in Lexmark dealer\u2019s MPS arsenal. Further validation for Fleet Manager 2.0 comes from Toshiba who has selected it as their main go-to-market toolset.<\/p>\n

\u201cWe are getting a lot of success out of that partnership and we\u2019re leveraging that in the rest of our independent dealer space,\u201d reports Boatman.<\/p>\n

Lexmark views MPS as more than a cost-per-page program.<\/p>\n

\u201cWe see it as an opportunity to tie in solutions, proactive management of devices and consumables and the businesses processes, driving the output to those devices,\u201d explains Boatman.<\/p>\n

Part of that is acknowledging that paper is more than storage and communicating, understanding there are other ways to collaborate and share information, and understanding the ability to consolidate paper-based processes and help customers understand and manage their costs this is the direction Lexmark is driving their dealers towards.<\/p>\n

\u201cIt\u2019s not just about device optimization,\u201d contends Boatman.<\/p>\n

That\u2019s only a sampling of what Boatman had to say about MPS. Based on his presentation any dealer aligned with Lexmark is in an excellent position to leverage the tools and expertise the company provides to get a foothold in MPS. And based on the comments of Lexmark executives throughout the day, Lexmark has every intention of ensuring that their dealers can deliver the MPS goods.<\/p>\n

The day concluded with comments from Ron Binkauskas, VP & GM, Global Channel Sales & Marketing, who discussed the company\u2019s U.S. channel focus, revealing that 2012 will see the company\u2019s most significant investments in terms of resources to that channel. We also learned that he\u2019s got a thing for A4.<\/p>\n

\u201cI\u2019m passionate about A4. I believe the future is A4.\u201d<\/p>\n

The traditional copier world is in the midst of an evolution and Binkauskas opines that the requirement of A3 nowhere near matches the actual production of A3. Many analysts would say he\u2019s dead on in those comments. If that\u2019s the case, Lexmark is looking to take advantage of this shift.<\/p>\n

\u201cWe are going to leverage our capabilities with our partners in the copier dealer channel very heavily,\u201d says Binkauskas. \u201cUp to this point we\u2019ve been in a complimentary relationship. A3 is still the primary product being rolled out to the copier dealer channel clients and A4 is being placed around the A3 devices. I think there\u2019s a better model, the A4 model.\u201d<\/p>\n

He further emphasized that it\u2019s not about the device anymore. Using a cell phone analogy, Binkauskas explains, \u201cIf it doesn\u2019t enable workflow and your personal productivity you don\u2019t want it. An output device is no different. It\u2019s not about the hardware it\u2019s about the services and capabilities you wrap around that hardware. Business size doesn\u2019t matter; you\u2019re looking for these devices to enable productivity and efficiency and at the same time drive cost out of your business. That\u2019s where Lexmark can provide the greatest value.\u201d<\/p>\n

He continued with the theme of the day regarding the importance of the dealer channel to embrace new ways of doing business.<\/p>\n

\u201cI believe our partners in the copier dealer channel will continue to embrace that more and more. We are looking to be the prime versus the complimentary offering, that\u2019s my ultimate goal.\u201d<\/p>\n

Incidentally, Binkauskas joined Lexmark to launch the MPS business so he\u2019s accustomed to changing mindsets.<\/p>\n

\u201cWe had to change direction of market and I believe Lexmark can change the direction of this market by promoting our capabilities and value add to our customers, which is the customer, our \u00a0dealer channel and grow their business at a faster pace than if they maintain the status quo. I can\u2019t wait for the market, I need to provide direction that accelerates the change in the market. If I wait for A3 to progress out of the marketplace before A4 assumes the prime position, I don\u2019t believe I have that much time left.\u201d<\/p>\n

Time will tell, but what we have here is a company that shows no failure to communicate its strategy to the press, to the analysts, and to the dealer channel. I don\u2019t think it\u2019s overreaching to say Lexmark is a viable contender not only for dealers looking to fill in gaps in their product line, but for dealers looking to move into MPS and partner with an organization that truly understands the value of the independent dealer channel and isn\u2019t afraid to ask questions and take the necessary steps to better serve that channel. If anyone has the potential to conquer the A4 and MPS worlds, you\u2019d have to place the company based in Lexington on that short list right now.<\/p>\n","protected":false},"excerpt":{"rendered":"

Last week I had the good fortune to travel to Lexington, Kentucky for a Lexmark press\/analyst briefing. In case you\u2019re not aware I fit squarely into the press category and that\u2019s the way I like it. There weren\u2019t any major revelations as far as new products introductions, but the day included an update on Lexmark\u2019s dealer program, a review of the company\u2019s solutions, a tour of Lexmark\u2019s Printing & Solutions Showcase, and overviews of the company\u2019s MPS strategy and U.S. channel focus. The briefing began with Chairman and CEO Paul Rooke\u2019s update on Lexmark\u2019s financial performance, the company\u2019s global objectives, and its growth in the SMB market. The past year was a challenging one that saw flat revenues as the company was down one percent overall. \u201cWe had economies that were rather stagnant by most indicators, particularly in North America and Europe,\u201d states Rooke. There was some growth, however, in Latin America and Asia. Although overall revenue was down one percent, the company\u2019s core business (laser, business inkjet, MPS, solutions) grew about 7 percent in 2011. \u201cThat was encouraging for us in an imaging market that by all indicators declined in 2011,\u201d notes Rooke. It came as no surprise that Lexmark will continue to focus on its core business, particularly laser even more in 2012 as it drifts further away from its legacy business\u2014consumer inkjet, a segment they\u2019re no longer participating in. Additionally, Rooke reports the company\u2019s inkjet business with the OfficeEdge line is poised for growth. He describes these products as \u201crobust, solid, network solutions, MPS-capable inkjets, nothing like our previous inkjets.\u201d Rooke further emphasized the importance of the company\u2019s fleet management tools and the continued investment in solutions. \u201cWe\u2019re growing our solutions capability to provide more end-to-end solutions capability for our customers.\u201d Those end-to-end solutions encompass hardware, software and services. The copier channel represents the fastest growing channel for Lexmark. As a result Lexmark is ramping up its dealer programs to emulate what the traditional copier companies offer their dealers. \u201cBecause of the growth of our dealer program there\u2019s a concerted effort between us, this channel team, and our large account team to leverage the dealer network to drive as much business as possible,\u201d reports Phil Boatman, manager, North America Channel Business Development. \u201cThere\u2019s an obvious recognition of our large account team\u2019s part of the success and power of the independent dealer and the value they bring to the table from the ability to service the account from top to bottom to the local relationships, flexibility, their overall care of the customer. It\u2019s been a big win for us all around as we\u2019ve driven more of our dealers into all sorts of accounts from mid market to large.\u201d What\u2019s different in 2012 are growth incentives for dealers rather than the one-size-fits-all approach Lexmark had in the past. \u201cWe\u2019ve been able to drive growth year after year and to continue to grow we need to make our program richer,\u201d acknowledges Boatman. More importantly, Lexmark continues to welcomes input from their dealers. \u201cWe\u2019re very intent on listening and learning from our dealers,\u201d states Boatman. It\u2019s not just the dealer principles who Lexmark wants to hear from either and Boatman says that input from dealer sales reps in the field is equally important. If you\u2019re keeping track, Lexmark has about 250 dealers and is looking to grow that number. But they\u2019re not bringing on just anybody. \u201cWe want committed, proactive dealers that understand it\u2019s not just about the box,\u201d says Boatman. \u201cWe want a dealer who has a balanced A3\/A4 attack, understands managed print services is here to stay, understands the power of solutions and changing that conversation with their customer and understands that whole picture and moving the conversation to a different level.\u201d With that in mind solutions are critical to Lexmark\u2019s growth and viability in the channel and the company isn\u2019t ignoring this area either. Sean Endicott, senior manager, North American Channel Business Development, outlined the various solutions offerings from the company, emphasizing acquisitions such as Perceptive Software and Pallas Athena along with key opportunities such as distributed capture at the MFP, mobility, workflow, and the cloud, plus managing all content not just content residing in databases. \u201cThere\u2019s still a lot of paper-based workflow processes out there we can solve,\u201d says Endicott. \u201cWe want the Lexmark device to be the central focus point for capturing [information].\u201d As Endicott further emphasized, Lexmark wants to help its dealers with the entire document life cycle. \u201cWe want them to have a piece of that no matter where they are in the value chain,\u201d he says. Lexmark views solutions in a couple of different ways, including fleet management via smart MFPs that can solve problems for customers along with single-function devices that provide those capabilities as well. Being able to manage those devices effectively requires what Endicott says is world class service and tools to help the dealer be more intelligent and have confidence in what they are delivering to their customers. \u201cFrom capturing to accessing to managing that content whether it\u2019s a Lexmark solution or a third-party device we want to be easy to work with from a dealer\u2019s perspective,\u201d says Endicott. The bottom line is Lexmark is looking to drive the dealer\u2019s incremental revenue stream that comes with the software. Also of note for the dealer channel is Lexmark\u2019s focus on embedded solutions such as the smart MFPs with the eTask interface that places the solution on the device itself. \u201cIt\u2019s more economical and there\u2019s less barrier to entry,\u201d says Endicott. \u201cOftentimes, you don\u2019t need a detailed IT discussion. These are things that bode very well for the dealer sales rep and what they like about our solutions. They\u2019re easy compared to more server-based applications. The embedded vehicle allows us to bring solutions more often to the customer.\u201d Following Endicott\u2019s presentation, press and analysts took a tour of Lexmark\u2019s Printing & Solutions Showcase where devices and solutions are demonstrated in vertical environments such as education, healthcare, and manufacturing. Lexmark may not […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[82],"tags":[],"_links":{"self":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/1969"}],"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=1969"}],"version-history":[{"count":0,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/1969\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=1969"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=1969"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=1969"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}