Quick Start Guide to Managed Print Services. May 2015
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1 Quick Start Guide to Managed Print Services May 2015
2 CompTia Overview 2
3 CompTia Communi;es 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 Close 4
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 5
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 (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 6
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- focused strategy 7
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 Further aggregate/consolidate contracts/vendors 8
9 Seven Steps to Success 1. Determine Your MPS Offering 2. Develop Alliances/Partnerships 3. Write a Business Plan 4. Determine the Sales Approach MPS 5. Stra;fy Your Customer Base 6. Build a Consistent Sales Funnel 7. Ac;vely Manage Your MPS Client 9
10 1. Determine Your MPS Offering IT, Purchasing Access Level One Walk in, Take Over (WITO) exis;ng fleet No assessment, no cost analysis Bundle, per page, aggregated billing op;ons C- Level Access 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 10
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 Software Providers CRM Software! Distributors OEMs 3 rd Party Financing Etc. Consultants Etc. Etc. 11
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 First year plan, including financial projec;ons by quarter 12
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 sales process and customer engagement 13
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) Sales approach (team or MPS Specialist) 14
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 Revenue/margin opportunity for you big enough to invest ;me/effort Copyright (c) 2014 CompTIA Proper;es, LLC. All Rights Reserved. CompTIA.org 15
16 Customer Matrix Level of Relationship Buyer Office Manager Purchasing Mgr. IT Manager Purchasing Mgr. IT Manager CFO CIO CEO No MPS No Contract Selling MPS trained Contract Exp. Broad skills MPS trained Contract Exp. Consulting/SLE Level 1 Level 1, 2* Level 1, 2* No Level 1, 2 Level 1, 2, 3, 4 CFO CIO CEO No Level 2 Level 2, 3, 4 *IF contact can affect budgets 16
17 6. Build a Consistent Sales Funnel Getting the Appointment Conducting the Appointment Measure ac;vity at each step weekly The Proposal Adjust the sales funnel process and steps to fit your MPS offering and internal capabili;es Client Management Determine who will manage the client ayer the contract is signed Deal Implementa;on
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 Rewrite, extend the contract 18
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 Be pa;ent 19
20 Addi;onal CompTia Resources List resources for MPS here, including maybe a slide or two on Trustmark. 20
21 Thank you.
22 Asset/Competency Matrix * Recommended, not required 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 A ERP system to manage SKU and service conversion to pages * 22 C ability to execute change management plan with customer
23 Asset/Competency Matrix- - Exercise Program Level: 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 C ability to execute change management plan with customer 23
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 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 Program Summary: Summarize the program offerings you will take to your customers (ie. Service/supplies only, with equipment, etc.) Key Partnerships: Partner Services/Activities Covered
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