october 2009 office technology
DESCRIPTION
Office Technology magazine is the magazine of the Business Technology Association, an association of copier/MFP dealers.TRANSCRIPT
Cover Oct 09:Cover Oct 09 10/6/09 3:33 PM Page 1
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SOMEWHERE BETWEEN A ROCK AND A HARD PLACE…
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A Buyer’s Market
The timing is right
to make an acquisitionby Chip MiceliDes Plaines Office EquipmentDespite the current sluggish econo-my, that old adage, “You have to spend money tomake money,” could be right on the money for officetechnology dealers by way of the acquisition ofother companies.
Running on Biodiesel
Atlanta dealership adopts
eco-friendly approachby Elizabeth MarvelOffice Technology MagazineImagine running your dealership’svehicle fleet without having to buya cent of traditional gasoline. One Atlanta, Ga.-baseddealership, BTA member Gordon Document Pro-ducts, is doing just that. As the price of gasoline rose,John Gordon, president of the dealership, began look-ing for solutions to this ever-growing problem. Andthanks to his son, Spencer, Gordon found a solution— biodiesel fuel.
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CONTENTS
2009 Software Buyer’s Guide
Helping you find the
right vendor partnersCompiled by Brent HoskinsOffice Technology MagazineAlthough there is a seemingly end-less number of independent soft-ware vendors (ISVs) whose prod-ucts work to further enhance the use of MFPs, dealersare generally advised to select and market only a few ofthese products. Become the local expert and source forthe software products that best serve the needs of yourcustomer base. To help dealers better understand thecapabilities of the various software products now avail-able, Office Technology invited a number of vendors tosubmit brief overviews of their products.
Volume 16 � No. 4
20
10
F E A T U R E A R T I C L E S
24 Severance Agreements
Present a properly prepared
release to employeesby Robert C. GoldbergBTA General CounselEmployee reductions and termina-tions have been an unfortunate result of the currenteconomic downturn. Even in good times it is impor-tant to review your employees and determine theircontribution and value to the company.
P R I N C I P A L I S S U E S
Are You Pursuing MPS?
If not, time may be running
out to enter the spaceby Tom CallinanStrategy DevelopmentI believe it is a lot more fun to get intoa growth industry than it is to enter a mature indus-try. Today, MPS is a growth industry, but that will notlast. Now is the time to launch a well-conceived MPSstrategy or to fix what you have already launched.
29
D E P A R T M E N T S
6
8
30
Executive Director’s Page
BTA President’s Message
Advertiser Index
26
22 Sharp’s Align ’09
Manufacturer hosts
national dealer meetingby Brent HoskinsOffice Technology MagazineAt its recent national dealer meet-ing, with the theme “Align ’09,” thecomments of Sharp Imaging and Information Companyof America (SIICA) officials focused, in part, on thecompany’s recent strides along with an emphasis on theimportance of more dealers pursuing the A4 opportuni-ty. The meeting, which drew approximately 800 atten-dees, was held Aug. 31-Sept. 3 at the Gaylord NationalHotel & Convention Center near Washington, D.C.
C O U R T S & C A P I T O L S
Business Technology Association� BTA Highlights25
M P S S T R A T E G I E S
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Executive Director/BTAEditor/Office Technology
Brent [email protected]
(816) 303-4040
Associate EditorElizabeth Marvel
[email protected](816) 303-4060
Contributing WritersTom Callinan, Strategy Development
www.strategydevelopment.org
Robert C. Goldberg, General Counsel Business Technology Association
Chip Miceli, Des Plaines Office Equipmentwww.dpoe.com
Business Technology Association12411 Wornall Road
Kansas City, MO 64145(816) 941-3100
www.bta.org
Member Services: (800) 505-2821BTA Legal Hotline: (800) 869-6688
Valerie BrisenoMembership & Marketing Manager
Mary HopkinsDatabase Administrator
Teresa LeerarBookkeeper
Brian SmithMembership Sales Representative
©2009 by the Business Technology Association. All RightsReserved. No part of this publication may be reproduced by anymeans without the written permission of the publisher. Everyeffort is made to ensure the accuracy of published material.However, the publisher assumes no liability for errors in articlesnor are opinions expressed necessarily those of the publisher.
EXECUTIVE DIRECTOR’S PAGE
Ihad the privilege of
attending the re-
cent Office Docu-
m ent Strat eg y Con-
ference, held Sept. 30-
Oct. 1 in Boston, hosted
by InfoTrends (www.
infotrends.com), the
market research firm. There were many
great sessions presented by InfoTrends ana-
lysts and several guest speakers. Of partic-
ular interest to me was a session titled
“Office Document Technology — Current
State of the Independent Dealers.” The
session was presented by Jon Reardon, a
group director with InfoTrends.
In his presentation, Jon shared some
recently gathered information from
InfoTrends’ database regarding 1,504 inde-
pendent dealerships from across the United
States, representing 2,750 physical locations.
It is with Jon’s permission that I share some
of that information in this space. You may
find that it includes a few surprises.
� Number of hardware brands actively
promoted: single brand only, 33.1 percent;
two to three brands, 41.8 percent; four to
five brands, 18.7 percent; six to seven
brands, 5.3 percent; and eight or more
brands, 1.1 percent.
� Number of dealership main office/
branch locations: 1,131 have one to four
locations; 321 have two to five locations; 42
have six to nine locations; seven have 10-14
locations; and three have 15-plus locations.
� 7.2 percent of the 1,504 dealerships
actively promote managed print services
(MPS); 16.1 percent of all 2,750 physical
locations represented by the dealerships
promote MPS. (Note: In a conversation with
Jon, he emphasized that these numbers
indicate that the dealerships that are larger
in size [i.e., those with multiple locations]
are those that are more often actively pro-
moting MPS, hence 7.2 percent of the dis-
crete dealerships promoting MPS represent
16.1 percent of all the 2,750 locations. This
same connection to dealership size would
be true with the numbers listed below.)
� 11.1 percent of the dealerships actively
promote that they provide customers with
assessment/consulting services; 20.8 per-
cent of all locations represented by the deal-
erships do so.
� 2.9 percent of the dealerships actively
promote that they use device remote moni-
toring products; 5.4 percent of all locations
represented by the dealerships promote
that they use remote monitoring.
� 11.4 percent of the dealerships actively
promote that they offer document manage-
ment products; 22.4 percent of all locations
represented by the dealerships promote
such products.
� 5.2 percent of the dealerships actively
promote that they are providing market
solutions vertically, such as a promoting a
focus on the healthcare industry or govern-
ment; 13 percent of all locations repre-
sented by the dealerships do so.
Do you see any surprises? For example,
would you have expected that only 7.2
percent of the 1,504 U.S. dealerships from
across the United States in InfoTrends’
database are actively promoting that they
offer MPS to their customers? I suppose my
question reveals my surprise at this particu-
larly low percentage. It would be interesting
to see how this number changes in the
coming year. In any case, thanks again, Jon,
for sharing your database information. �
— Brent Hoskins
Dealer Data RevealsInteresting Numbers
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BTA PRESIDENT’S MESSAGE
As a long-time resi-
dent of the New
O rleans area , I
always enjoy a good bowl
of gumbo. What makes
gumbo special, of course,
is not any one ingredient
but the sum of all of its
ingredients. Beyond the shrimp or sausage,
you usually find celery, onions and green
peppers. Most gumbos also use two distinc-
tive ingredients to thicken and flavor them:
roux and either okra or filé powder.
In some ways, the Business Technology
Association (BTA) is like a gumbo. It has
always taken the full “ingredients” to make
it special. Start with our Dealer, Vendor and
Service Associate members. Add to that our
hard-working, knowledgeable staff. Pour in
the champions and supporters of BTA like
our general counsel, Bob Goldberg. And, top
it off with the “magical” ingredient that
truly makes BTA the special organization
that it is today — our volunteers. These are
the men and women who have given of
their time and knowledge to lead BTA.
Recently, at the BTA East “Grand Slam”
event in White Plains, N.Y., I had the oppor-
tunity to share this analogy with the atten-
dees. I did so, in part, to recognize an
individual who is a part of that volunteer
ingredient, someone who has truly distin-
guished herself among her peers — my
predecessor, Ronelle Ingram, who served as
2008-09 national president of BTA.
While you will recall Ronelle’s service as
national president, you probably have also
seen her among the presenters at district or
national BTA events. There is also a good
chance that you or someone in your dealer-
ship has attended the association’s “FIX: Cost
Management for Service Workshop,” for which
Ronelle has served as an instructor since 1983,
and as the sole instructor since 1999. In fact,
she has taught or co-taught more than 125
FIX workshops over the past 26 years.
Given Ronelle’s commitment to helping
others, it came as no surprise when I heard
that she wanted no money spent on a gift for
her as our way of thanking her for her year of
service in the national presidency. That leads
me to a second topic that is near and dear to
my heart — the BTA Scholarship Foundation.
Perhaps you are not fully familiar with this
member benefit. Each year, the association
awards $1,000 or $1,500 scholarships to a
number of the sons and daughters of full-time
employees of member dealerships. These
scholarships are awarded based on inde-
pendent, objective evaluations of the applica-
tions. For the current 2009-2010 school year,
the association awarded 21 scholarships.
Given her desire to help others, I an-
nounced in White Plains a $1,000 contribu-
tion to the BTA Scholarship Foundation by
BTA for a scholarship to be presented for the
2010-2011 school year in Ronelle’s honor. I
was also the first to make a personal contri-
bution to this cause. Will you join me in hon-
oring Ronelle? Ideally, we will be able to
create a perpetual scholarship in her honor.
You may send your tax deductible contribu-
tion to: BTA Scholarship Foundation, Busi-
ness Technology Association, 12411 Wornall
Road, Kansas City, MO 64145.
Incidentally, you can see photos of many
of the recent BTA scholarship winners on
the association’s Web site, www.bta.org.
Click on “Member Benefits” and then “BTA
Scholarship Foundation” in the left-hand
column of the home page. �
— Bill James
Join Me in HonoringBTA’s Ronelle Ingram
®
2009-2010 Board of Directors
PresidentBill James
WJS Enterprises Inc.3315 Ridgelake DriveMetairie, LA 70002
President-ElectRock Janecek
Burtronics Business Systems Inc.216 S. Arrowhead Ave.
San Bernardino, CA [email protected]
Vice PresidentTom Ouellette
Budget Document Technology251 Goddard Road
Lewiston, ME [email protected]
BTA EastTodd J. Fitzsimons
Network Imaging LLC122 Spring St.
Southington, CT [email protected]
BTA Mid-AmericaRon Hulett
U.S. Business Systems Inc.3221 Southview Drive
Elkhart, IN [email protected]
BTA SoutheastTerry Chapman
Business Electronics Corp.219 Oxmoor Circle
Birmingham, AL [email protected]
BTA WestLokke PatrickDocutxt Corp.
11110 E. Artesia Blvd., Ste. BCerritos, CA [email protected]
Ex-Officio/ImmediatePast President
Ronelle IngramSteven Enterprises Inc.
17952 Sky Park Circle, Ste. EIrvine, CA 92614
Ex-Officio/General CounselRobert C. Goldberg
Schoenberg Finkel Newman & Rosenberg LLC222 S. Riverside Plaza, Ste. 2100
Chicago, IL [email protected]
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Compiled by: Brent Hoskins, Office Technology Magazine
2009 Software Buyer’s GuideHelping you find the right vendor partners
Although there is a seem-
ingly endless number of
independent software
vendors (ISVs) whose products
work to further enhance the use
of MFPs, dealers are generally
advised to select and market only
a few of these products. Become
the local expert and source for the
software products that best serve
the needs of your customer base.
To help dealers better under-
stand the capabilities of the
various software products now
available, Office Technology invited
a number of vendors to submit
brief overviews of their products.
Most offer software for the end-
user’s use. Some offer software for
use within the dealership. Perhaps
it is time to further enhance your
product offerings or use a new
software product to improve your internal processes.
A2iA www.a2ia.com
A2iA is a cursive extraction and recognition software
company proven to reduce data-entry costs and improve
automation. For nearly 20 years, A2iA’s proprietary toolkits
have automatically processed, structured and unstructured
documents in the payment, mail and forms processing
markets. A2iA’s toolkits are available in versions for 23 coun-
tries and six languages.
ABBYY www.abbyy.com
ABBYY is a provider of document recognition, data
capture and language software. Its products include the
FineReader line of OCR applica-
tions, FlexiCapture line of data
capture solutions, Lingvo dic-
tionary software and develop-
ment tools. The company li-
censes and OEMs its solutions to
industry leaders including Can-
on, EMC/Captiva, Epson, Fujitsu,
Fuji Xerox, Hewlett-Packard,
Microsoft, Panasonic, Samsung
Electronics , Toshiba , Xerox
and more.
American PrintWare Inc. www.apwi.com
APWI has been servicing the
network and high-volume print
market for more than a decade,
offering a broad range of soft-
ware products and custom engi-
neered solutions that manage a
broad array of printing needs.
APWI products effectively manage print networks, lowering
end-user cost, increasing employee productivity and
increasing dealer revenues. It provides free technical
support to its authorized dealer partners.
Apago Inc. www.apagoinc.com
Apago Inc. is an innovative software technology company
changing how people use and profit from electronic docu-
ments. Consumers and businesses of all sizes use Apago’s
workflow tools to transform, optimize and automate elec-
tronic documents for print-on-demand, publishing, rich
media and archiving. The company provides retail products,
custom development, OEM solutions and consulting serv-
ices to industry leaders, including Hallmark Cards, Crane &
Cover Story Oct 09:Cover Story Oct 09 10/7/09 8:41 AM Page 10
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Co., Hewlett-Packard, Bondi Digital, MOD-PAC Corp.,
OneVision and Pindar.
Artsyl Technologies www.artsyltech.com
Artsyl Technologies™ develops a full range of document
capture software that reduces the cost of processing forms
as well as the storage, search and retrieval of documents for
customer service and regulatory compliance. Artsyl’s Sim-
pleCapture and docAlpha applications integrate with a wide
range of scanners, MFPs and fax servers.
Bull Valley Software www.bullvalleysoftware.com
Scalable for organizations of any size, DocumentLOK
from Bull Valley Software combines secure document and
content management, compliance management and busi-
ness process management in one application, and inte-
grates with virtually any Windows or Web-based application
to provide immediate, single-click access to documents and
electronic content from within an organization’s primary
business application(s).
ColumbiaSoft www.documentlocator.com
ColumbiaSoft is a provider of enterprise document man-
agement solutions deeply integrated with Microsoft Windows
and Office applications. Users can capture, manage and share
electronic and paper documents, e-mail and faxes to improve
efficiency and collaboration, and reduce risk by meeting
higher standards of compliance and business continuity.
Compass Sales Solutions www.compasscontact.net
Compass Sales Solutions offers advanced sales-force
automation, solution selling and fleet management software
systems, along with in-depth consultative services provided
by industry-recognized experts. Designed from a sales per-
spective, Compass merges the abilities to manage your
prospective database, complete detailed TCO analysis, price
service contracts, generate thorough, professional proposals
and sales paperwork, all at the touch of a button. Compass
offers complete integration with your ERP and Outlook.
Computhink www.computhink.com
Located in Chicago, Ill., Computhink Inc. provides docu-
ment management/content management solutions for
secure information sharing and compliance, targeting small
and medium-sized organizations. Computhink’s ViewWise®streamlines business processes, improves customer service,
reduces costs and ensures compliance.
Digital Gateway www.digitalgateway.com
Digital Gateway is a leader in dealer management soft-
ware. Its flagship product, e-automate, empowers dealers to
more profitably manage common business processes like
sales, service, accounting, commissions, inventory and more.
The recent release of e-automate Managed Print Suite pro-
vides a complete end-to-end MPS solution that gives dealers
every tool and integration needed to gain and maintain
pages under contract. Digital Gateway’s e-automate system
gives dealers the visibility, connectivity and automation tools
to give independence back to independent dealers.
docSTAR www.docstar.com
docSTAR has delivered document management products
for the past 13 years. Eclipse by docSTAR leverages MFP
sales, delivering competitive advantage and builds an
impressive recurring revenue engine. docSTAR 3ten is the
latest version of docSTAR with redesigned workflows, an
intuitive user experience and enhanced OCR capabilities.
docSTAR’s comprehensive reseller success plan helps
resellers quickly add document management to their
existing offerings.
DocuLex www.doculex.com
Inc or p orat ed in 1996, Wint er Haven , Fl a . -based
DocuLex creates non-proprietary enterprise content man-
agement software. Through an extensive worldwide
reseller channel, the company offers network-enabled doc-
ument capture and image processing software for use with
multifunctional copiers/MFPs, production scanners, fac-
simile and wide format units. DocuLex also provides
browser-based document and content management pro-
grams for collaboration, e-mail archiving and compliance,
knowledge management, workflow and records retention,
offered as Archive Studio. Archive Studio is easy-to-use,
productive electronic document management software for
any business environment seeking secure instant docu-
ment access.
DocuWare www.docuware.com
DocuWare’s integrated document management solutions
help you improve customer service, increase productivity
w hi le control l ing costs and increase cash f low by
automating daily business processes through electronically
managing and sharing documents, regardless of their format
or source. Whether personnel are at headquarters, across
town or across the globe, instant access to information is
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easy and secure via the Web. DocuWare, available in 15 lan-
guages, is known for easy installation, integration, adminis-
tration and usage, as well as an exceptionally low total cost
of ownership.
ECi www.ecisolutions.com
For more than 25 years, ECi has specialized in dealer
management software solutions that fuel the efficiency and
profitability of office equipment dealers. Whether your deal-
ership is managing toner usage, tracking meter clicks or
wanting to operate a profitable service department, ECi has
the right solution for you. Fifty of Office Dealer magazine’s
Elite Dealers use ECi software.
eCopy www.ecopy.com
eCopy is a provider of document imaging software that
easily integrates paper-bound information into existing
business processes and applications. Office workers can use
eCopy ShareScan® and eCopy PaperWorks™ and their MFPs
or scanners to quickly incorporate paper documents into
their existing electronic workflows.
emFAST Inc. www.emfast.com
emFAST Inc. is an industry pioneer in network fax com-
munication. Its FACSys® fax messaging suite of products
ranges from easy-to-install appliances through enterprise-
class fax messaging software. FACSys® fully integrates into
areas requiring communication capabilities including MFPs,
business process workflows and major ECM and resource
planning systems.
Equitrac www.equitrac.com
Equitrac Office® is an intelligent print management and
document cost control software solution that enables com-
panies to minimize printing expenses and maximize effi-
ciency from every printer, copier or MFD (multifunction
device) while eliminating waste and boosting their bottom
lines. Equitrac Office tracking and reporting capabilities
give organizations the information they need to understand
their true output expense and make informed print manage-
ment decisions.
FabSoft www.fabsoft.com
FabSoft’s Reform streamlines workflow by automating
the output, capture and distribution of documents. Reform
will capture scanned images, print streams or user data
from any operating system, application or device. Reform
enhances the capture information and intelligently distrib-
utes to printers, fax, e-mail and archive systems.
Falcon Technology Solutionswww.efalcontech.com
Falcon Technology offers the Soaring suite of SQL server-
based sales and business management software designed
specifically for the office equipment industry. With more
than 7,000 users, Soaring Sales is a leading sales force
automation program in the copier industry. Soaring Busi-
ness Management is a complete ERP software program
encompassing accounting, dispatch and field service, inven-
tory management, contract management, managed print
services and online tools.
FMAudit www.fmaudit.com
FMAudit provides software technology to enable dealers
to profitably compete in managed print services. Today,
FMAudit helps more than 900 dealers manage more than 2.5
million devices monthly. FMAudit’s software is easy to
deploy and maintain, collects data from both networked
and local devices, integrates with e-automate, OMD and La
Crosse for automated meter billing, and provides consum-
able level monitoring, service alert filtering and complete
TCO analysis.
Hyland Software www.onbase.com
One of the largest independent software vendors in the
world of enterprise content management (ECM), Hyland Soft-
ware is the developer of OnBase. A suite of document manage-
ment and content management solutions, OnBase has a
proven record of solving problems resulting from time con-
suming, costly and error-plagued manual tasks.
InfoDynamics www.infodynamics.com
InfoDynamics is the author of a line of document-centric
applications for organizations of every size. The company has
been creating powerful, robust and user-friendly document
management systems since 1989. Intact SMART is feature-
rich and includes broad scanning support, barcode and zone
recognition, application integration, advanced searching in
and out of Intact SMART, version control and much more.
Intact SMART can work with desktop scanners and has MFP
control panel integration as well. It is directly tied in with the
top accounting systems for small to mid-enterprise. Cus-
tomers can view their documents and relationships directly
from their accounting system and have the full functionality
of a complete document management system.
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Cover Story Oct 09:Cover Story Oct 09 10/7/09 8:41 AM Page 12
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16 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | O c t o b e r 2 0 0 9
KnowledgeLake Inc. www.knowledgelake.com
KnowledgeLake Inc. develops document imaging,
document capture and workflow products and solutions for
Microsoft SharePoint. KnowledgeLake extends the electronic
content management (ECM) capabilities of SharePoint,
enabling businesses to reduce mailing costs, streamline
operations and achieve regulatory compliance using
familiar Microsoft products that most businesses already
own and use.
Laserfiche www.laserfiche.com
Laserfiche® creates enterprise content management
(ECM) solutions that help organizations run smarter. Since
1987, more than 27,000 organizations worldwide —
including government agencies and Fortune 1,000 compa-
nies — have used Laserfiche software to streamline docu-
ments, records and business process management.
Laserfiche provides central control over information infra-
structure, including standards, security and auditing, while
offering flexibility to business units. Laserfiche is built upon
Microsoft technologies to simplify system administration. It
supports Microsoft SQL and Oracle platforms and features a
seamless integration with Microsoft Office applications and
a two-way integration with SharePoint.
Meadows Publishing Solutionswww.meadowsps.com
The DesignMerge Professional Bundle is a suite software
module for Adobe InDesign and QuarkXPress that provides
sophisticated variable data printing and data publishing
features. The software works within the application for ease
of use and is compatible with most popular VDP output
formats. Used by professionals worldwide, it simplifies mar-
keting personalization for both the novice and expert.
Miracle Service www.miracleservice.com
Optimize your service operation with this complete
dealer software solution. Features include: service calls and
technician scheduling; service contracts; inventory; meter
billing; preventative maintenance; management reporting;
QuickBooks and other accounting integration; print man-
agement integration; Web and wireless access; and a whole
lot more. It is easy to use, flexible and affordable.
MWA Intelligence Inc. www.mwaintel.com
MWA Intelligence Inc. (MWAi) delivers enterprise-class
and leading-edge M2M (machine-to-machine) and M2P
(machine-to-people) solutions. The enterprise class solution
is designed to manage a fleet of imaging devices whether
they are networked, locally connected or un-connected. The
MWAi solution automates meter collection, consumables,
and service alerts. MWAi also offers an integrated pre-sale
managed print service (MPS) tool for easy auditing of end-
user networks. MWAi literally connects the people who
service and sell the assets with the actual machines and ERP
systems. Solutions include: Intelligent Service Management,
Intelligent Managed Print Services, IntelliDashboard and
Intelligent Device Management.
nQueue Billback www.nqueue.com
nQueue Billback provides software-based information
accountability, expense management and cost recovery
solutions to more than 30 percent of the 250 largest law
firms in the United States and five of the top 10 globally. The
company assists firms by enhancing the automation and
processing of any operational and administrative expenses
on an extremely powerful platform.
Objectif Lune www.objectiflune.com
Objectif Lune creates software solutions to help organiza-
tions develop, maintain and renew their business by maxi-
mizing the value of their documents. Driven by a passion for
creativity and innovation, Objectif Lune’s state-of-the-art
solutions help create new business by adding the power of
personalization to promotional documents and they
increase revenues gained from existing customer bases by
simplifying and optimizing the creation, production and
delivery of high quality targeted business documents.
Omtool Ltd. www.omtool.com
Omtool Ltd. is a provider of document capture and han-
dling solutions that simplify the integration of paper and
electronic documents into enterprise information manage-
ment systems. Its flagship product, AccuRoute®, streamlines
document capture, conversion compression and communi-
cation processes, and is accessible from any desktop com-
puter or network-enabled scanning device (including MFPs).
Pharos Systems www.pharos.com
Pharos Blueprint Enterprise is a solution for managing
print and copy that enables companies to save money,
reduce waste and easily secure devices and documents. It
incorporates discovery, tracking and accounting technology
that provides a complete picture of print/copy across the
enterprise down to the user level. Blueprint is integrated
Cover Story Oct 09:Cover Story Oct 09 10/7/09 8:41 AM Page 13
with more than 125 multifunction printers from leading
equipment manufacturers.
Print Audit www.printaudit.com
Print Audit develops print management solutions that
enable office equipment dealers to sell more hardware and
increase their post-sales revenue. Last year, Print Audit redi-
rected half a billion pages from high-cost printers to low-
cost MFPs and, to date, the company has helped dealers sell
more than $450 million in additional hardware.
PrintFleet Inc. www.printfleet.com
PrintFleet is an independent software vendor special-
izing in the development of print management software
solutions, training and support programs for dealers and
distributors in the imaging industry. More than 1,000
dealers use PrintFleet software and support services to
manage more than 800,000 devices and 2.5 billion monthly
page counts worldwide.
PrintMIB LLC www.printmib.com
PrintMIB LLC is a provider for managed print services that
provides precise data collection from printers, digital copiers
and MFPs. PrintMIB collects and reports its data to a USB key
or server-based software database. Data can be merged into
backend software or a total cost of ownership calculator.
Prism Software www.prismsoftware.com
Prism Software is a one-stop shop for electronic docu-
ment software solutions. Prism’s products are richly fea-
tured, highly competitive and low cost. Prism’s four
advanced software products are: DocSystem for printing
and document workflow; DocRecord for document manage-
ment; DocForm for variable data communications; and Doc-
Transform for print and data stream transformation.
Red Cheetah www.redcheetah.com
Red Cheetah is a full e-commerce solution and a complete
wholesaler-enabled ordering system designed exclusively for
Unique solutions for dictation, transcription and speech recognition.
Healthcare and Legal markets.
Good dealer margins, marketing support, service contracts.
Call Today for Dealership Opportunities.
800-878-7828 x 167 www.Dolbey.com/dealer
w w w . o f f i c e t e c h n o l o g y m a g . c o m | O c t o b e r 2 0 0 9 | 17
Cover Story Oct 09:Cover Story Oct 09 10/7/09 8:41 AM Page 14
the office products and technology consumables industry.
Red Cheetah’s Savanna Suite combines the sleek e-commerce
of Outpost with the robust backend functionality of Home
Range to bring dealerships a powerful, easy-to-use system.
Ribstone Systems Inc. www.ribstoneusa.com
Ribstone Systems Inc. is a copier-based scanning and
printing software provider with solutions tailored for the
legal profession. Sold with Canon, Xerox, Konica Minolta and
Ricoh copiers, Ribstone has advanced document workflow
for this market with intuitive solutions at a reasonable price.
Rochester Software Associates www.rocsoft.com
Since 1986, Rochester Software Associates (RSA) has
enhanced the print workflow of thousands of enterprises.
RSA delivers on the promise of convergence and an auto-
mated print center through electronic and hardcopy job
submission (WebCRD, QDirect.SCAN), legacy datastream
transform (M.I.S. Print, IPDSPrint, RDOPrint), enterprise
output management (QDirect) and legal solutions (Bates-
Print, CDPrint).
Sagem-Interstar www.sagem-interstar.com
Sagem-Interstar Inc. provides advanced fax server solu-
tions for IP networks. Its scalable XMediusFAX™ T.38 Fax
over IP (FoIP) solutions leverage IP telephony and unified
communications (UC) systems to enhance productivity, col-
laboration and ROI by integrating fax on the desktops of
enterprise and service provider sites worldwide.
SalesChain www.saleschain.com
SalesChain is a provider of sales management software
for office equipment dealers. Its Sales Dispatch workflow
automation programs help dealers to increase customer
retention, improve leased asset upgrade ratios and cus-
tomer base growth by targeting competitor displacement.
SalesChain is the preferred partner for Digital Gateway and
ECi OMD and La Crosse. Its industry experience and dedica-
tion to customer support and sales rep training delivers fun-
damental value for dealers across the country, including
premier dealers like Gordon Flesch, Northern Business
(Mass.) and Blue Technologies (Ohio).
Solimar Systems Inc. www.solimarsystems.com
Solimar Systems Inc. is a developer of enterprise output
management solutions for digital document creation, produc-
tion and distribution environments. Installed in thousands of
worldwide sites, including nearly 40 percent of the Fortune
100, Solimar solutions offer integrated connectivity, datas-
tream transforms, print optimizations, document re-engi-
neering/repurposing and sophisticated print queue man-
agement with secure Web-based document presentment,
distribution and tracking.
Square 9 Softworks www.square-9.com
Square 9 Softworks is a developer of software solutions
for the office equipment industry, including the Smart-
Search Content Management Suite. Square 9 Softworks
designs solutions built on the .NET platform using open
architecture and cutting-edge technologies. With solutions
that are affordable, powerful and easy to use and support,
Square 9 helps dealers to win more of the document man-
agement opportunities they compete in.
Technesis www.technesis.com
Technesis Print Control System is a single solution deliv-
ering three value propositions: automated print assess-
ments, rules-based messaging promoting efficient printing
and cost accounting for MFPs and plotters. Technesis has
API/embedded solutions for Xerox, Ricoh, HP, Canon, KIP
and Océ output devices.
Westbrook Technologies Inc. www.westbrooktech.comServing more than 13,600 customers worldwide, West-
brook Technologies’ Fortis document management software
provides lifecycle management for paper and electronic
documents from capture, indexing and archiving to Web-
based retrieval and automated purging. With Fortis, your
organization gets fully searchable documents and images,
automated workflow and effortless integration with other
business applications.
Xythos Software www.xythos.com
Xythos Software is a subsidiary of Blackboard Inc. and a
leading developer of document management and collabora-
tion software. Its online services and products are licensed
to millions of users at commercial, education and govern-
ment organizations around the world for managing and
sharing content throughout its lifecycle. �Brent Hoskins, executive director of
the Business Technology Association,
is editor of Office Technology magazine.
He can be reached at [email protected]
or (816) 303-4040.
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Cover Story Oct 09:Cover Story Oct 09 10/7/09 8:41 AM Page 15
BEI Pros ad Oct 09:Layout 1 9/14/09 12:27 PM Page 1
20 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | O c t o b e r 2 0 0 9
by: Elizabeth Marvel, Office Technology Magazine
Running on BiodieselAtlanta dealership adopts eco-friendly approach
Imagine running your dealership’s vehicle fleet without
having to buy a cent of traditional gasoline. One Atlanta,
Ga.-based dealership, BTA member Gordon Document
Products, is doing just that. As the price of gasoline rose,
John Gordon, president of the dealership, began looking for
solutions to this ever-growing problem. And thanks to the
knowledge and encouragement of his son, Spencer, Gordon
found a solution — biodiesel fuel.
“ Well , I first heard about it [biodiesel] when I sent
Spencer to college,” says Gordon. “I found out he became a
tree hugger and he started talking to me about this new
concept called ‘biodiesel.’ I tried to be polite, but I gently told
him that I didn’t have the time or inclination to get involved
in biodiesel and he just kept harping on me to read about it.
So, begrudgingly, I went on the Internet and I looked up the
term ‘biodiesel’ and found a wealth of information. And
then, my disinterest suddenly turned to interest, which then
turned to intrigue. And the rest is history.”
Gordon now fuels his five-vehicle fleet (two delivery trucks,
two passenger vehicles and a pickup truck) with biodiesel
created by Perfect Circle Renewable Energy LLC, the biodiesel
processing company he and his son founded two years ago.
Biodiesel is defined by the National Biodiesel Board (NBB)
as “a domestic, renewable fuel for diesel engines derived from
natural oils like soybean oil.” Gordon adds to this definition,
saying that biodiesel is usually created from not only soy-
beans, but from rapeseed oil and waste vegetable oil .
“Biodiesel burns 75 percent cleaner than fossil fuel, helps
reduce our dependance on foreign oil and extends the life of
engines because it has better lubricating qualities,” he says.
“Any diesel engine will accept biodiesel and run better on it
than with regular diesel fuel. The diesel engine was originally
designed to run on cottonseed oil, and so it’s really back to
the future now that we’re producing a fuel that runs on waste
vegetable oil. It requires no conversion, and there are only
benefits both to the engine and the environment.” The only
downside he has found is that it is difficult to find affordable,
adequate supplies of “feed stock,” the raw vegetable oil that is
used to create biodiesel.
“For the most part, restaurants give it (waste vegetable
oil) to us for free because they need to get rid of it,” says
Gordon. “For the large producers, we pay them a nominal
amount. But the real cost (of creating biodiesel) is in the
pickup and the infrastructure, and then your distribution
back to the end users.”
So how is Gordon’s biodiesel made? First, waste vegetable
oil is collected from local restaurants and it is then taken
back to Perfect Circle’s plant for processing. The process of
creating biodiesel from vegetable oil involves several steps
and chemical reactions to refine the oil and rid it of impuri-
ties so that it can be used in vehicles with diesel engines. It
takes about six to eight hours to refine one batch (200
gallons) of biodiesel, and the company can make two batches
a day, on average. Gordon then uses the biodiesel in his
vehicle fleet, as well as sells the surplus to local consumers at
Staff members of Gordon Document Products stand in front of
their biodiesel vehicle fleet. From left: Vincent Smith, deliveries,
Chris Benton, director of service, John Gordon, president and
partner, Perfect Circle Renewable Energy LLC, Spencer Gordon,
partner, Perfect Circle, and Helen Gordon.
Marvel Oct 09:Marvel Oct 09 10/6/09 12:50 PM Page 10
the pump price for traditional diesel fuel.
While the use of biodiesel has not yet
helped Gordon’s dealership save money,
he says that once the initial costs for
creating the infrastructure of Perfect
Circle are paid for, the dealership should
save a significant amount on fuel costs.
In addition to the use of biodiesel, the
dealership has also adopted other envi-
ronmentally friendly habits. Gordon
finds that the use of biodiesel in his fleet has helped to set an
example for the rest of the dealership. “We’re into recycling
and conservation,” says Gordon. “I ’ve noticed that our
employees turn lights out and turn the air conditioning off
before they leave. We have various efforts to recapture car-
tridges and dispose of them in an environmentally friendly
manner, and we also utilize an equipment recycler that
reclaims equipment and assures an environmentally friendly
disposal of the remaining parts of the machine. It [the use of
biodiesel] has made a difference in the
way people think about ecology and con-
servation in our company.”
And while Gordon has not always
been a champion of green initiatives, he
now finds that small changes in be-
havior can make a difference.
“I encourage fellow members of BTA
and other dealers to look for ways they
can become part of the solution,” says
Gordon. “None of us are going to be able to solve the
problem individually, but we can all contribute incremen-
tally and have an impact. I think we can all reduce our con-
sumption [of gasoline] and thereby drive
down the price of foreign supplies of fuel
and oil.” �Elizabeth Marvel is associate editor
of Office Technology magazine.
She can be reached at [email protected].
w w w . o f f i c e t e c h n o l o g y m a g . c o m | O c t o b e r 2 0 0 9 | 21
“None of us aregoing to be able tosolve the problem individually, butwe can all contributeincrementally and have an impact.”
Marvel Oct 09:Marvel Oct 09 10/6/09 12:50 PM Page 11
22 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | O c t o b e r 2 0 0 9
by: Brent Hoskins, Office Technology Magazine
Sharp’s Align ‘09Manufacturer hosts national dealer meeting
At its recent national dealer meeting, with the theme
“Align ’09,” the comments of Sharp Imaging and
Information Company of America (SIICA) officials
focused, in part, on the company’s recent strides along with
an emphasis on the importance of more dealers pursuing
the A4 opportunity. The meeting, which drew approximately
800 attendees beyond Sharp staff and related support, was
held Aug. 31-Sept. 3 at the Gaylord National Hotel & Con-
vention Center near Washington, D.C.
“What does ‘Align ’09’ mean?” asked SIICA President Ed
McLaughlin, as the meeting’s opening General Session got
underway. “When we first came up with the name, I started
to look at the definition of the word ‘align’ — ‘to set things in
order, to line things up.’ In short, it is to utilize all of the tools
available to you … We have become more aligned within our
factory, become more in tune with the things we need to do,
and have started listening more and more to end users and
looking at the market to help create the products that we
have today. This is all part of that alignment.”
Hiroshi Kataoka, deputy group general manager of the
Business Solutions Group of Sharp Electronics Corp., SIICA’s
parent company, emphasized the significance of Sharp’s
alignment as well. “The first step was with factory align-
ment,” he said. “Six years ago, we moved from a traditional
narrow focus with factories focused on low-end products,
high-end products, supplies and software to a combined
factory with a unified direction and strategy to share knowl-
edge and technology across all products.”
The result, said Kataoka, were such strides as Sharp’s re-
entry into higher-speed segments, enhancements to Scan2
(allowing a two-sided document to be scanned in a single pass),
improved product security features and the launch of OSA (the
company’s Open System Architecture development platform).
“An additional benefit was our improved understanding of the
market and a closer relationship with our partners in the U.S.
market,” he said. “We were making better and better products,
and the market acceptance was getting stronger and stronger.
That gave us the confidence to take some bold steps.”
One of those bold steps was the launch of the company’s
Frontier A4 product line. “The Frontier line clearly challenges
the status quo for a copier manufacturer, but it represents a
clear understanding of where the next opportunity lies,” said
Kataoka. “Capturing clicks is the key for our business and the
Frontier line enables Sharp dealers to do it like no other manu-
facturer can. The alignment of an A3 line and A4 line designed
Clockwise from top: The Product Showcase, decorated with
Washington, D.C., landmarks, featured Sharp’s new and pre-
viewed MFPs and printers; SIICA President Ed McLaughlin;
and Hiroshi Kataoka, deputy group general manager of the
Business Solutions Group of Sharp Electronics Corp., SIICA’s
parent company.
Sharp Oct 09:Sharp Oct 09 10/6/09 12:53 PM Page 10
for ease of use and ease of support, with
common capabilities, is unprecedented
in our industry. We are very pleased to see
such strong market acceptance.”
Given that strong market acceptance,
McLaughlin encouraged more Sharp
dealers to embrace the Frontier line. “I
am both excited and pleased with the
results of A4, but I would be dishonest
with you if I told you I am completely
happy,” he said. “There are a lot of dealers who have bought
A4, but we are really not as into A4 as we could be. This is the
time to jump on board with this product.”
McLaughlin cited industry statistics that reveal the size of the
A4 opportunity. One slide he shared revealed that the market for
A4 31-page per minute (ppm)-plus monochrome and color
devices grew 535 percent between 2005 and 2008. “Five years
ago, there were not any products in the 31-ppm-and-up area
that were A4 specific,” he added. “Today, that represents 25
percent of all placements across all segments. It is astonishing.”
A4 is not about placing units, but it is about capturing
pages, said McLaughlin, noting that the product category
can assist dealers with their managed
print services (MPS) initiatives. “We are
the only traditional copier company that
is fully committed to a full line of A4
products,” he said. “You need to get on
board and take advantage. We have
found that dealers w ho have ful ly
adopted the A4 philosophy … are out-
performing everybody else by 5 percent.
It doesn’t take money and profit out of
your pocket. It puts money into your pocket.”
During the meeting, Sharp displayed a number of its
products in the event’s Product Showcase, including pre-
views of four new A4 Frontier products — a 40 ppm color
printer and a 40 ppm monochrome printer, coming in the
first quarter of 2010, and two Scan Pro models (one color,
one monochrome), concept scanning-centric devices that
may be released in the second quarter of 2010, depending on
market and dealer demand. �Brent Hoskins, executive director of the Business Technology
Association, is editor of Office Technology magazine.
He can be reached at [email protected].
w w w . o f f i c e t e c h n o l o g y m a g . c o m | O c t o b e r 2 0 0 9 | 23
+
“Five years ago, therewere not any productsin the 31-ppm-and-uparea that were A4 specific. Today, that represents 25 percentof all placements ... “
Sharp Oct 09:Sharp Oct 09 10/6/09 12:53 PM Page 11
Employee reductions and terminations have been an
unfortunate result of the current economic downturn.
Even in good times it is important to review your
employees and determine their contribution and value to the
company. Pay plans for salespeople can reward results,
however, technicians are dependent upon product perform-
ance or lack thereof. Most companies, regardless of the
number of technicians they employ, find themselves with the
need of less than an additional full-time technician. In difficult
economic times, this need can be avoided by authorizing over-
time for other technicians. However, will you be ready when
the economy recovers or your supplier releases a product with
numerous issues?
Since economic problems are current, many dealers may
wish to terminate that additional technician and worry about
future needs tomorrow. Normally, the safest bet is to let the
last technician hired go. Unfortunately, a formula such as this
may retain a less skilled worker. So what should a dealer do?
An employer’s decision to terminate or lay off a certain
employee, while retaining others, may lead the discharged
worker to believe that he (or she) was discriminated against
based upon age, race, sex, national origin, religion or disability.
To minimize the risk of potential litigation, many employers
offer departing employees money or benefits in exchange for a
release or waiver of liability for all claims connected with the
employment relationship. Federal claims are possible under
the Age Discrimination in Employment Act, Title VII of the
Equal Employment Opportunity Act, the Americans with Dis-
abilities Act and the Equal Pay Act. There are state statutes to
consider as well.
A severance agreement is a legal contract that must be sup-
ported by consideration. The consideration must be some-
thing more than unearned vacation pay or pension benefits
that the employee was already entitled to. The employee is
giving up the right to sue and must receive something of value
for this promise. Entering the agreement must be knowing
and voluntary. For this reason, the employee should be advised
to seek counsel and have a period of time to consider the
agreement. Under the Age Discrimination in Employment Act,
the employee must be given at least 21 days to consider the
offer and seven days to revoke an acceptance after it is made.
It must be noted that although an employee may be giving up
his rights to bring an action, it does not prohibit an employee
from filing a claim with the Equal Employment Opportunity
Commission and testifying in those proceedings.
The release cannot include claims that may arise after it is
signed. As an example, an employee over 40 years of age is told
there is a reduction in force due to the economy. One week
after his departure, an employee under 40 is hired for the posi-
tion. A release will not cover this event, as it took place after it
was signed. Additionally, this conduct may constitute fraud if
the company had always intended to fill the position and
merely stated the termination was a result of the economy.
With the payment of any severance benefit, a release is
essential. Presenting a properly prepared release is even more
important to assure claims have been waived as legally
required. The last thing a dealer wants to do is
to provide the retainer fee for the attorney
about to sue him. �Robert C. Goldberg is general counsel
for the Business Technology Association.
He can be reached at [email protected].
by: Robert C. Goldberg, General Counsel for the Business Technology Association
COURTS & CAPITOLS
Severance AgreementsPresent a properly prepared release to employees
24 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | O c t o b e r 2 0 0 9
Goldberg Oct 09:Goldberg Oct 09 10/6/09 12:56 PM Page 26
BTA HIGHLIGHTS
The following new members joined BTA during themonth of August:Dealer MembersAmerican Business Equipment/Columbus,
Columbus, GAAutomated Office Systems Inc., Billings, MTCopy R Office Solutions, Burbank, CADigitech Office Machines, Lafayette, LADocutek Imaging Solutions Inc., Deerfield
Beach, FLElectronic Office Systems, Fairfield, NJImpact Office Products, Beltsville, MDKelley Imaging Systems Inc., Kent, WAMarimon Business Systems Inc., Houston, TXMBG Office Systems, Macon, GAUnited Business Systems, Fairfield, NJ
Service Associate MembersManagedPrintMarketing.com, London,
Ontario, CanadaRelevant Automation Corp., Raleigh, NC
For full contact information of thesenew members, visit www.bta.org.
BTA’s ‘Building My Business’ WebinarsFree to BTA mem-
bers, the “BuildingMy Business” WebinarSeries is designed tohelp dealers improve
the management of their companies, takefull advantage of market opportunities and,ultimately, improve their bottom lines. Formore information on upcoming hour-longwebinars or to register for a webinar, visitwww.bta.org/BuildingMyBusiness.
For more information on BTA member benefits,visit www.bta.org.
For the benefit of its dealer members, eachmonth, BTA features two of its Vendor or ServiceAssociate members in this space.
BTA VendorAssociate memberSquare 9 Softworks is a
developer of business-centric softwaresolutions including the SmartSearch ContentManagement Suite. Located in New Haven,Conn., Square 9 is dedicated to makingcontent management available to organ-izations of all sizes. The company designssolutions built on open architecture andtechnologies that drive efficiency andproductivity across all business applications.Through decades of experience, Square 9 hasacquired a thorough understanding ofdocument-driven business processes.
www.square-9.com
BTA VendorAssociate memberAzerty has been in
business for more than 25 years and is aleading printer imaging technology distributor.The company is a division of United StationersSupply Co. Azerty’s mission is to provide itscustomers value in their efforts through a robustmenu of services including: a comprehensivemanaged print services solution, nationwidenext-day delivery, access to the largest imagingand printer portfolio, a dedicated selling teamand a host of other key tools.
www.azerty.com
A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.
w w w . o f f i c e t e c h n o l o g y m a g . c o m | O c t o b e r 2 0 0 9 | 25
Highlights Oct 09:Highlights Oct 09 10/6/09 12:58 PM Page 25
Despite the current sluggish economy, that old adage,
“You have to spend money to make money,” could be
right on the money for office technology dealers by
way of the acquisition of other companies.
While today’s challenging financial landscape may have
many dealership owners shaking their heads in bewilderment
over the notion of an acquisition, the potential for increased
opportunity can be great — particularly if the acquisition is an
area competitor with a significant client list. Heads of suc-
cessful companies recognize that times of recession open up a
“bargain hunting” field. That may sound opportunistic and
with good reason — it is! The future success of many small to
mid-sized businesses will be determined by the long-term
decisions they make today. It may seem counterintuitive to
spend money while suffering an anemic economy, but those
who do are more likely to come out winners in the future.
Although sometimes the answer to increased business is
the addition of a new product line, that route can be costly and
does not always increase market share. But acquiring compa-
nies ultimately produces gains in market share, through the
elimination of competition through consolidation.
It is unfortunate that a number of struggling office tech-
nology companies exist; it is a sign of the times when industry
publications must devote space to businesses that have filed
for bankruptcy, laid off their staff and are looking to sell off
their customer bases and remaining equipment to the highest,
or sometimes any, bidder. But one company’s misfortune can
prove to be another’s bounty. Being at the right place at the
right time can ultimately lead to paying the right price. And,
beyond the price of the acquisition may come the added
benefit in the opportunity to add some solid talent to your
company, particularly if you bring the former owner or man-
agement team on board.
That timing alignment can also result in a quick sale turn-
around. However, companies interested in acquisitions should
be aware that the typical time between expressed interest and
signing on the dotted line is closer to four months.
But there is more to a good deal than timing and price; an
acquisition must harmonize with your company’s business
strategy and plans for the future.
Regardless of how quick an acquisition proves to be, a
“bargain” is only a bargain if the product line fits into your
business model. For example, managed print services (MPS)
are a strong focus of many office technology dealerships and
from where a significant portion of revenue is derived. Compa-
nies prepared to make one or more acquisitions would be well
served to consider for-sale businesses with MPS programs in
place, as MPS represents a steady stream of revenue and might
nearly pay for the acquisition through annuity business alone.
While a sound MPS program or another significant element
may make an acquisition appealing, it should not be the sole
appeal for acquirement. When it comes to which dealerships
to target for potential acquisition, it is best to keep an open
mind — and to know your competition. Dealerships that are
openly struggling and have put out feelers for buyers are
obvious choices, but it could also be that your most zealous
competitor has an interest in selling. You may be surprised
with the outcome of a conversation with competition; they
may be looking to expand their territory or perhaps are inter-
ested in an exit strategy — either scenario could work in your
favor as a potential buyer.
Be aware, however, that sometimes things are not as they
seem. You may have the chance to buy a company that previ-
ously held a solid reputation, but hard times might have
altered that good standing. Your association with a company
that has hit the skids reputation-wise will not be to your
advantage. And if the potential seller is unable or unwilling to
A Buyer’s MarketThe timing is right to make an acquisition
by: Chip Miceli, Des Plaines Office Equipment
PRINCIPAL ISSUES
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Miceli Oct 09:Miceli Oct 09 10/6/09 2:00 PM Page 26
Do you crunch the numbers, or do the numbers crunch you?
he BTA ProFinance course will teach you how to setthe strategy, track critical performance measures and
manage your assets according to a proven business modeldesigned to improve the profitability of your company.
Instructors John Hanson and John Hey of StrategicBusiness Associates take a holistic approach to theredirection of your business — from sales repcompensation and projecting service revenues toinventory management and an action plan forimplementation — with the short-term goal of achievinga minimum of 14% operating income. You can achievethese results by monitoring 24 key benchmarks andmaking strategic shifts as discussed in the program.
Start planning for improved profitability today! Send allof your strategic decision makers to ProFinance — it’s aninvestment in your company that will help you relieve theend-of-the-month crunch.
To register for ProFinance or get more informationon pricing and quantity discounts, visitwww.bta.org or call BTA at (800) 843-5059.
Upcoming ProFinance course:
November 11-12, 2009 Las Vegas, Nev.
T
ProFinance is designed for owners and executive-level staff who make the critical business decisions that impact your company’s success. Some OEMs reimburse forProFinance tuition through advertising co-op or professional development funds. Check with your OEM.
ProFinance thinker full pg:31OT0406 10/6/09 2:04 PM Page 1
supply comprehensive financial informa-
tion, walk away from the deal swiftly.
Once you have determined that you
have the finances and resources to handle
an acquisition, it is imperative to thor-
oughly examine the company’s financial
statements, client base, industry standing
and employees.
With the list of sellers on the long side
these days, you will likely want to consider
several potential companies before deciding on a purchase. It
can be challenging to conduct the due diligence on more than
one prospective acquisition at a time, but the research will be
well worth it in the end. Ultimately, you want to acquire a
company whose reputation, business model and product line
best fits your own.
The due diligence of an acquisition can be intimidating, but
without it you will not have a clear picture of what you are
acquiring. Fiscal experts recommend examining three to five
years of a company’s financial records —
that includes working capital, inventory,
receivables, capital expenditures, debt
and cash flow.
You will also need to take a number of
other elements into account, perhaps the
most important being customer stability
and payment histories. If you find that a
handful of customers comprise a large
portion of the customer base, it is vital to
speak with them directly and gauge whether they intend to
continue doing business with you, as the new owner of the
acquired company.
Legal issues must also be addressed when heading toward
an acquisition. Become familiar with any contracts, leases,
trademarks, licensing, permits and all other documents that
might have a bearing on the sale. You should also be aware of
any pending litigation against the company.
Another important aspect is the cultural dynamic. It will be
a much easier road if the management style of the company
you are looking to acquire matches with that of your business.
Remember, you are not just acquiring a business — you are
also attaining people whose careers and livelihood will now
be dependent on you and your company.
Once an acquisition has been made, the need for a smooth
transition is fundamental and it all comes down to constant
and honest communication between all parties. If possible, sit
down with each and every employee in the acquired company,
listen to their input, both positive and negative, and be honest
about their place post-sale. Data indicates that roughly 20
percent of employees are either let go or leave of their own
accord following an acquisition, but if you have the need and
they have the desire to stay, the strength of increased per-
sonnel could boost your company ’s performance and
standing within the industry.
An acquisition can prove to be a valuable strategic move,
representing immediate increases in your company’s overall
sales volume and the addition of new product lines and imple-
mentation of additional programs. With today’s increase in the
number of companies interested in selling, now may be the
best time to make this investment in your company’s future. �Chip Miceli is president of Des Plaines Office
Equipment (DPOE), based in Chicago. DPOE is
a leader in the field of print management and
has acquired three companies in the past
three years. Miceli can be reached at
[email protected]. Visit www.dpoe.com.
You will also need totake a number of otherelements into account,perhaps the most important being customer stability andpayment histories.
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There is a little sensationalism in this article’s
headline and subhead. Let’s face it, if you
wanted to start a copier/MFP dealership
today, you could. With year-on-year units sold
declining by 200,000 per year in 2008 and 2009, it may
not be the best use of your capital, but you could
start that dealership. And for years to come you will
be able to start a managed print services (MPS)-
focused dealership or decide that it is time for you
to seriously offer an MPS solution.
I believe it is a lot more fun to get into a growth industry than
it is to enter a mature industry. Today, MPS is a growth industry,
but that will not last. The primary reason it will not last is
because MPS resellers are not selling anything new — they are
simply taking the revenue from other businesses.
Just a short year ago, the consultants at Strategy Develop-
ment rarely ran into a situation in which one of our clients was
in a competitive MPS sale. Today, not a day goes by without a
competitive MPS opportunity. I am not suggesting that they
are all competitive — that is far from the case — but at least
one per day is against a competitor.
The good news is that many companies “selling” MPS are
simply using it as a talking point, but they are muddying up the
waters with prospects. I am not sure it is their fault, as there is
still a good amount of misinformation about MPS in the industry.
Now is the time to launch a well-conceived MPS strategy or
to take a step back and fix what you have already launched,
even if that requires a complete overhaul. The goal is to be effec-
tive at growing a highly profitable new revenue stream and not
to simply update your Web site with an MPS click through with
the same five bullets that your competitor has on its Web site.
How do you know if you are doing okay with your MPS
strategy? The best litmus test is by measuring either how
many devices you have under management or what you are
billing per month in CPP on printers. Sure, you will sell equip-
ment and software into accounts, but measuring what you
control under contract is the clearest snapshot of success.
A single MPS specialist at the end of his (or her) first year
should be billing approximately $25,000 per month in net new
CPP revenue. At the end of his second year, he should be
billing $65,000 per month; this is pure aftermarket — service
and supplies — and does not include equipment
or software. If you measure devices, figure an
average of $25 per device per month — so 1,000
devices at the end of year one. This is for a single
MPS specialist; if you invest in two or three, your
results should reflect a multiple of these figures.
So, at this point you understand you need to get
serious about MPS, that you will run into competi-
tive situations and you have some guidelines of
what success looks like. How do you achieve
success? That is simple. Start with a well-conceived plan and
execute that plan. What will you need to include in the plan?
� Your financial commitment to the new strategy.
� Sales resources; Strategy Development recommends a
company starts with at least two MPS specialists. If you start with
one and he does not make it, you are virtually starting over again.
� Proper selection of specialists. You want conceptual sales
professionals who can handle a complex sale.
� Training for your sales specialists, leadership, administra-
tion (operations) and service personnel.
� An income statement that sets milestones and clearly
demonstrates ramped up revenue, margins, expenses and con-
tribution. You will also want a cash-flow statement that shows
you the required cash investments.
� Vendors; you can learn more about vendors in the BTA
MPS Service & Operations Workshop or you can develop a
checklist on your own.
� Service training on multiple printer lines.
Now is the time to put the plan together, so do not delay. If
you are well trained and focused on driving growth, you will
crush those competitors that simply use MPS as a talking point.
But time is running out because eventually they, too, will be
forced to learn — or maybe they will simply disappear. �Tom Callinan is the founding principal of Strategy Development, a
consulting and advanced sales training firm that developed and
delivers the BTA MPS Sales Workshop and BTA
MPS Service & Operations Workshop to help
dealers enter the lucrative MPS space. He can be
reached at [email protected]
or (610) 527.3317.
Visit www.strategydevelopment.org.
Are You Pursuing MPS?If not, time may be running out to enter the space
by: Tom Callinan, Strategy Development
MPS STRATEGIES
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