News Article

KONICA MINOLTA LOOKS TO STRENGHTEN TIES WITH DEALERS AT VISION 2009

 

January 21, 2009 - In his keynote speech at Konica Minolta’s dealer conference, Geoff Colvin, senior editor at large with Fortune, who recently published his latest book, Talent is Overrated: What Really Separates World-Class Performers from Everybody Else, said that there are four things that the best leaders should do in an economic crisis: Make themselves seen in the public’s eye, be in control, even if they are not, be decisive and be fearless. Rick Taylor, senior executive vice president and chief operating officer of Konica Minolta Business Solutions U.S.A. Inc. (KMBS), seemed to fulfill Colvin’s criteria. A charismatic speaker with a propensity for jokes, Taylor opened the session explaining the dealer show’s theme, One Company, One Vision, One Voice.

 

Taylor said that when he joined KMBS less than a year ago, he saw some fissures and conflicts that required a remedy. He acknowledged that the company is still trying to maximize the merger of the two former separate companies. But the particular conflict he referred to was the one between the KMBS direct sales channels and dealers. He made a joke about it, and the crowd, made up of mostly dealers, let out a subdued chuckle. While Taylor was candid about the sometimes rocky relationship between KMBS and its dealers, he also emphasized the steps the company is taking to build a more fruitful relationship.

 

Making Progress

 

“I recently read a letter published in an industry newsletter by an anonymous KMBS dealer who wrote that since the management shakeup last year, progress has been ‘painfully slow,’” Taylor said. “I looked as hard as I could to locate the dealer’s name so that I could talk with him, but to no avail.” Adding that he understands the frustrations of dealers because he used to be one, he also said that when two parties are in a business relationship, complaining should not be a one-way street. “I wanted to write a letter to the newsletter and complain about my frustrations with Dealer A or Dealer B.”

 

The crowd of dealers seemed to welcome the candor, giving a strong and loud applause to some of the programs and achievements the company has achieved in the last year. The loudest applause may have been saved for when Taylor announced that KMBS will now offer an 80 percent yield guarantee on all imaging units. It was previously 20 percent, which even Taylor acknowledged was too low. In addition, the company announced that it is extending warranties for chip boards, hard drives and print heads to three years.

 

To help resolve conflict between KMBS direct and its dealers, Taylor also talked about the dealer council that was created last year, which is made up of representatives from different size dealers. According to Taylor, when the council receives a complaint from a dealer that KMBS direct sales is impinging upon a dealer’s customer or is unfairly competing by offering a lower cost-per-copy contract, the council will review the complaint and offer a solution.

 

Another rousing applause went up when Taylor announced that KMBS direct sales will not sell to dealers’ existing accounts, and that Direct will compete only for new business and the price offered to the customer will not be lower than its dealers. Adding teeth to his words, Taylor said that KMBS will discipline any employee who violates that agreement and even terminate an employee depending upon the severity of the infraction.

 

Taylor also announced that to help dealers finance equipment in these difficult economic times, KMBS launched Konica Minolta Premier Finance, which is being managed by US Bank and CIT. And to further assuage dealers’ fears, Taylor said that the company will not access a dealer’s customer data when a dealer applies for financing under the program.

 

To further illustrate KMBS’ commitment to strengthening its performance in the marketplace and relationship with dealers, KMBS Vice President Alan Nielsen talked about the company’s extensive restructuring. “There are four new geographic regions [East, South, Mid West and West], each headed by four vice presidents. Under the vice presidents in their respective regions are district sales mangers [DSMs], who support up to 15 dealers each and are responsible for resolving any conflicts among dealers or between a dealer and direct.” Other new positions announced include a document solution consultant (DSC), who must be CDIA and A+ certified, a specialty products manager, who must be expert in wide-format and production print technology. In addition, the number of national account managers (NAMs) has been increased from three to four. The NAM position is important because a NAM is responsible for establishing contracts with enterprise organizations.

 

To target the government market, Nielsen noted that the company has also established the Konica Minolta Alliance Program Plus (KMAP), which is, as the name suggests, an alliance between KMBS and its dealers to share the revenue derived from government work. In fact, Taylor said that Direct has bid for two state contracts under a dealer’s name. Also, Nielsen said, under the aegis of KMAP, the company has won a five-year federal government contract, as well as contracts with the University of Kent, Maricopa County, Arizona and Trelleborg, a Swedish engineering group.

 

Moving Into Managed Print Services

 

KMBS also announced opt-WORKFLO, a managed print services (MPS) solution. According to George Brown, a vice president in the company’s services and solutions group, KMBS was a little late in offering an MPS solution because it did not want to offer “a cookie cutter approach.” “We wanted to make sure that the solution was modular and a complete turn-key solution,” he said.

 

Opt-WORKFLO is scalable, as KMBS dealers can purchase one component at a time as they become more familiar with and confident in implementing a managed print solution. According to KMBS, the program includes automated supplies replenishment, recycling of depleted print cartridges, access to KMBS customer support and Web-based management tools.

 

Four components make up opt-WORKFLO. opt-MONITOR enables dealers to assess a customer’s current printing environment. Dealers can purchase either a USB Rapid Assessment Key (RAK) that allows them to collect data from individual networked devices or a Document Collection Agent, which is software installed on a server and collects data from multiple devices simultaneously. opt-ANALYZE enables dealers to create a cost-per print plan (consumables and service) for customers. opt-VISUALIZE allows dealers to develop a comprehensive floor plan that illustrates hardware replacement. opt-MANAGE helps customers to manage their workflow process. The most expensive package offered by KMBS is approximately $54,000, which includes a server and all of opt-WORKFLO’s components and which gives dealers the option to house the infrastructure in their location.  

 

Introducing bEST

 

KMBS also announced the new bEST (bizhub Extended Solutions Technology) Program, which allows a variety of software developers to create workflow and document management solutions that integrate with Konica Minolta’s MFPs. Solutions on display included Prism Software Corporation’s DocRecord, a document management solution; DocSystem, a workflow process solution; and DocForm, software for form creation and variable data printing. eCopy also presented a new integrated solution that should be available in the second quarter that will allow users to access eCopy solutions at the control panels of Konica Minolta’s MFPs. According to KMBS, software developers and integrators that achieve bEST certification will be able to display the bEST Certified logo on their products to assure customers that their products integrate smoothly with KMBS bizhub products. In addition, certified software developer products will be listed on KMBS’ public Web site.

 

What’s All The Hubbub, bizhub?

 

Kevin Kern, vice president of marketing for KMBS, announced the new bizhub C452, C552 and C652, which feature a number of improvements over their predecessor models, the bizhub C450, C550 and C650, respectively. The new units’ processors are faster, and memory and paper-feed capacities have increased. In addition, users will be able to update the engines’ firmware via a USB flash drive. Rather than offer three separate finishing options, the new units feature a finisher shell and users can add a bookmaking or hole-punching into the shell. The new units also feature a redesigned user interface, 12" x 18" large-capacity tray option, corner stapling from the main menu, reduced energy consumption and separate drum and toner.

 

New monochrome models include the bizhub 751/601 Series, which is replacing the bizhub 750/600 Series. Improvements include InfoLine status reporting with new LED lights, scan-to-WebDAV and USB memory, IPv6 support, advanced user box editing and user box thumbnail preview, encrypted network password printing and print-from-USB memory. Also on display at the conference were the bizhub 282 and bizhub 222, which will be available later in the year.

 

Monochrome and color production units were also on display, including the bizhub Pro 2500, which is based on the Océ VarioPrint 6250 engine, bizhub Pro 1200, bizhub Pro 950e and the bizhub Pro C65hc (high chroma). According to Bill Milde, a production print manager for KMBS, the bizhub Pro C65hc will be targeted to commercial users who require very detailed color output.

 

Also on display were four new color laser printers, which Todd Smith, product manager for printer products at KMBS, said were the smallest and lowest-cost color laser printers to date for KMBS. All four units have the same speed (5 ppm color and 20 ppm black), same cost-per-page (16.1¢ for color and almost 3¢ for black) and the toner cartridges are interchangeable. The single-function magicolor 1600W, replacing the magicolor 2530, is priced at $229 and is connected via USB only. The magicolor 1650EN (replacing the magicolor 2550) for $329, supports PCL and PostScript and features an Emperon controller, PhotoArt Pantone color and is ENERGY STAR-certified. The magicolor 1680MF, priced at $379, is replacing the magicolor 2480. It’s an all-in-one device (print, scan and copy) that features GDI printing for both Mac and Windows, TWAIN scan drivers and letter-size scanning on the platen. The magicolor 1690MF replaces the magicolor 2590MF and features print, copy, scan and fax capability, a 35-sheet document feeder, scan-to-USB and optional 500-sheet paper draw.