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THECANNATAREPORT (ISSN: 0889-5880) is published twelve times yearly by Marketing Research Consultants LLC, P.O. Box 180 Hamburg, New Jersey 07419. Phone: (973) 823-6314; Fax: (973) 823-6316; email: FGCannata@CannataReport.com. Editor and Publisher, Frank G. Cannata. All rights reserved. No part of this periodical may be reproduced in any manner in any language without the consent of THECANNATAREPORT. The information set forth herein and on its complementary website,TheCannataReport.com, has been obtained from sources believed to be reliable but is not guaranteed by THECANNATAREPORT and may be incomplete. THECANNATAREPORT’s expressed views and opinions are based on the foregoing and should be viewed in this context. Printed in the U.S.A. SUBSCRIPTION RATE for THECANNATAREPORT and TheCannataReport.com is $495 for one year. Subscribe at TheCannataReport.com/Register. POSTMASTER: Please email address changes to CJCannata@CannataReport.com.

EDITORIAL AND PUBLISHING

Frank G. Cannata President, Editor-In-Chief and Publisher

Charles J. CannataSVP, Brand Strategy and Development

Carol C. CannataSVP, Client and Creative Services

Doreen Borghoff Design Director

Sharon Tosto Esker Story and Features Editor

Walter Geer III Executive Director, Digital Strategy

Bob Ingoglia Chief Marketing Correspondent

Bob Sostilio Chief Technology Correspondent

Tetsuo Kubo Japanese Correspondent

Karen Stewart Executive Producer, Digital Video

Charlene Piro Executive Producer, Print

Cathy O’BrienSenior Public Relations Consultant

Matt Stauble Events Photographer

EDITORIAL ADVISORY BOARD

Keith AllisonCEO, Systel Business Equipment

Paul HannaPresident, Blue Technologies

Steve Reding President, C.A. Reding

Andrew RitschelPresident, Electronic Office Systems

Barry Simon President, Datamax

Mark SteadmanCEO, Stan’s Office Technologies

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THECANNATAREPORT

TheCannataReport.com

Visit TheCannataReport.comNovember 2015

This Month “More idiots should just shut their mouth.”

– Chris MartinEnglish musician, singer, songwriter, and lead vocalist and co-founder of Coldplay

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COVER STORY

19 I Graph Expo 2015Inkjet Technology Addresses Highest Vol-umes and Specialty Product Segments

FEATURES

26 I SGIA Surprise2015 Event Redefines the Meaning of Success in Specialty Printing

DEPARTMENTS

6 I Hard CopyNo. 18: The Premier Event for Production and Industrial PrintFrank Cannata Explores the Assumptions About Online Research

12 I Japanese HeadlinesMitarai Breaks Down BordersCanon Chairman Emphasizes Partner-ships with World-Renowned Firms

14 I Out of the Box: Software & SolutionsLexmark’s Soft SideSoftware and MPS Have Grown to Represent 40% of Overall Revenue

17 I Op-Ed: Frankly SpeakingImage MakeoverInnovation and Opportunities in Print Continue to Move Outside the Office

28 I Woman InfluencersXerox’s Improved PerspectiveToni Clayton-Hine Brings Wealth of Ex-perience to Help Partners Succeed with Xerox

32 I Veteran’s WayToday’s Titans of TerrorISIS Perpetuates Its Deadly Agenda in Paris and San Bernardino

34 I Conflict Avoidance Track Key Industry Meetings, as well as the Cannata Travel Schedule to Date

8 I INK: The Jillian Fund’s Second Annual Big Night Out Gala Draws Substantial Support from Industry Influencers and Raises over $200,000

KMBS Confirms Dealer Viabili-ty in Industrial Print

Value of Display Graphics Exceeds $80 Billion

VIDEO

THIS MONTH ON

Graph Expo 2015: Frank Cannata

Printing News Chief Editor Mark Vruno interviews Frank Cannata following our industrial print event, “The New Frontier,” at Graph Expo 2015. Cannata speaks candidly about industrial print as the most viable growth opportu-nity for dealers in imaging, citing EFI’s unique success story in that segment, the relevance of shows like Graph Expo and other key insights on this topic.

TheCannataReport.com

Check out these features and more in “This Week,” “Live Wire,” and “Video” at: TheCannataReport.com

NEW

S MACHINE

Visual Edge Technologies’ Acquisition Mode

PRODUCTION

Presented by

DEALERS

SGIA Expo 2015

Sharp Dealer Relationships@Work During the Sharp 2015 Dealer Meeting, “Relation-ships@Work,” SVP Sales, Laura Blackmer conducted a comprehensive and compelling panel with the manufac-turer’s new dealer council. Watch The Cannata Report video series edited into shorts by topic at TheCanna-taReport.com/Video and look out for our cover story and INK item covering the event next month.

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No. 18: The Premier Event for Production and Industrial PrintToday, all expositions and conferences are under substantial pressure. Along with the Internet came the assumption that access to so much information would negate the need to travel to such a show in order to learn a little more. Yes, plenty of information is out there. However, how many dealers spend the hours necessary, surfing the net to read all the latest press releases, articles, summaries and opinions of experts? My guess is not many. Even if they did, the notion that you can find everything you need to know on the Internet is a false one.

Graph Expo is the premier event for commercial printers and those interested in production print. It is also the last bastion that we know of where a dealer can attend and see not only what his or her manufacturer is offering but also everyone else’s. When did learning about the competition become an unnecessary aspect of business intelligence? Of even greater importance is the question of where the technology is taking us. CJ and I had 14 appointments over a two-day period and learned a great deal. We saw the latest in industrial printing with the ability to print on fabric (textiles) to go with printing on wood, glass, plastic, metal and ceramic tile. This is the last frontier for printing, and one that will continue to evolve and provide opportunities for those early adopters who have already joined in the fray.

At Graph Expo, dealers had a chance to see products from very familiar manufacturers, including Canon, EFI, HP, Konica Minolta and Ricoh. In our analysis of industrial printing, we have determined that there are currently approximately 150 dealers who have the resources and capabilities to sell a series of products that start at $125,000 and go to $1 million and more. That is not to say dealers on the cusp cannot migrate their businesses to handle industrial printers. We just believe it will be a slow and very difficult process. It will just take them much longer to get there. In the meantime, manufacturers need to sell them now. Dealers have options, but they will never know what is best for them unless they attend a show like Graph Expo. Are they going to wait until someone calls for an appointment and walks in their door to sell them a particular line? What will they use for a comparison? And how will they gauge the relative position of the offering versus the competition?

As CJ Cannata covered in our October Special Survey Issue (Part II)’s Graph Expo Preview Story, “Industrial Print: The New Frontier,” we conducted a seminar on industrial printing at Graph Expo and were fortunate enough to have Frank Romano, Chairman Emeritus at RIT and guru of the high-volume print world, deliver a keynote for our audience. We followed with a rationale for dealers, supported by creative financing vehicles presented by Everbank’s VP of Equipment Finance, Fred Carollo. BTA Legal Council Bob Goldberg closed out the session by giving dealers some perspective on the need for a separate dealer agreement when taking these products on.

In case you haven’t read that story, dealer attendees at our special session represented nearly $900 million in aggregate 2014 annual revenue. In addition, senior management from Canon U.S.A. (Canon), EFI, Konica Minolta Business Solutions U.S.A., Inc. (Konica Minolta) and Ricoh Americas Corporation (Ricoh) joined us, along with executives from companies representing other key segments of the industry. They all attended to assess how dealers reacted to our event. Their consensus? It was time well spent.

To reiterate, Graph Expo is the place to be if you want to learn about the most significant growth opportunity in high-volume printing. To be sure, there were many dealers who attended, but nowhere near the number that should have been there.

There is a finite group of dealers that are capable of taking on these very special high-volume printers. Manufacturers, of necessity, will offer competitive dealers these products where they do not have either a direct presence or one of their own dealers.

To our independent dealer readers, I pose one simple question: Do you want to make the decision to enter the industrial printer market or do you want your leading manufacturer to make it for you?

Sincerely,

Frank G. CannataEditor-in-Chief and Publisher

HARDCOPY From the Editor’s Desk

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JENNA STRAMAGLIO AND GEORGE GORMAN

Led by Chief Ambassador George Gor-man, Executive Dealer Business Man-ager at Ricoh Americas Corporation, and Chairman Bill McLaughlin, CIO of Atlantic, Tomorrow’s Office, The Jillian Fund hosted its second annual Big Night Out Gala on November 11 at the Venetian in Garfield, New Jersey.

The Jillian Fund is dedicated to provid-ing financial support to parents with chil-dren who are suffering life-threatening

illnesses requiring critical care; awarding academic scholarships to young women who demonstrate extraordinary faith and leadership within their communities; op-erating in an effective, efficient and trans-parent manner; and honoring the financial and professional contributions made by individual and corporate partners.

This year’s affair drew 425 attendees and raised over $200,000 for the charity, rep-resenting increases of 28% and 135%, re-spectively, over last year’s event.

Premiere Gala Sponsors for the second year in a row and since the event’s incep-tion included Larry Weiss, CEO of Atlan-tic, Tomorrow’s Office (Atlantic) and his wife Linda. Along with Gorman and Mc-Laughlin, they have brought tremendous attention to the cause. Attendees included Atlantic GM Adam Weiss and General Council Jason Weiss; DeLage Laden Fi-nancial Solutions (DLL) District Manag-

er Joe Sclafani; Konica Minolta Business Solutions U.S.A., Inc. (Konica Minolta) VP of Dealer Sales Sal Camilleri and VP of Premier Finance Bill Glos; MT Business Technologies President Chuck Rounds; MWAi CMO Jenna Stramaglio; Ricoh Americas Corporation VP of Deal-er Division Jim Corridi and VP of Sales, East Region, Vince Roma; Toshiba Amer-icas Business Solutions, Inc. (Toshiba) Director of National Account Sales Mar-tin Quinn and Regional Sales Manager William Imbesi.

Event Silver Sponsor DLL, Konica Mi-nolta, Ricoh and Toshiba also each pur-chased full tables of 10 in support of the charities 2nd annual gala.

The event featured several highlights, in-cluding specialty cocktails and a dessert bar. An extensive silent auction chaired by Linda Weiss incorporated a wide va-riety of items, including a 3D printer, beauty products, Broadway tickets, a cus-

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INDUSTRY AWARDS, ACKNOWLEDGMENTS & SIGHTINGS

The Jillian Fund’s Second Annual Big Night Out Gala Scores Support from Industry Influencers and Raises over $200,000

I N KBY CJ CANNATA

AERIAL VIEW OF EVENT

CLOCKWISE FROM BOTTOM RIGHT: SAL CAMILLERI, LINDA WEISS, TARYN ROISTACHER, ADAM WEISS, JASON WEISS, NICOLE WEISS, LARRY WEISS

Editor’s Note: This month we dedicate our entire INK col-umn’s coverage to the authen-tic and sincere fundraising ef-forts of Bill McLaughlin and the Weiss family of Atlantic, Tomor-row’s Office, as well as the un-paralleled inspiration, commit-ment and strength personified by Ricoh’s George Gorman.

©2015 Toshiba America Business Solutions, Inc. Electronic Imaging Division. All rights reserved.

Join ourwinning team

What’s our winning secret? It’s simple. We put our dealers �rst. With Toshiba, you’re partnering with an award-winning team committed to helping our dealers succeed.

• 14-time BTA Channel Choice award winner for Superior Performance • Awarded “Best in Class” Manufacturer by Marketing Research Consultants• Manufacturing Leadership 100 Award Winner - honored for “Global Value Chain Mastery”

For more information, please visit us at business.toshiba.com/dealer or call 949-462-6201

• 10 •

I NK

tom suit, luxury fashion accessories, get-aways, golf gear, music and sports memo-rabilia, travel gear, wine and much more. Raffle prizes included a 55” Toshiba HDTV and New York Jets suite tickets.

Lastly, Jenna Stramaglio announced MWAi’s 2016 “Ride for Jillian” to re-sounding applause.

MWAi annually participates in the Roll-ing Thunder Ride whereby Mike Strama-glio, President and CEO, and other par-ticipants from the business technologies industry and imaging channel ride from Scottsdale, Arizona, to Washington, D.C., in honor of our veterans and to raise do-nations for a specific charity. Next year, MWAi will organize and host a ride in memory of Jillian Gorman for the Jillian Fund. Sponsors to date include Clover Imaging Group–which will donate a cus-tom-built Harley Davidson for raffle–and Industry Analysts, Inc.

Get to Know Jillian

Jillian Lauren Gorman was a typical teenager: independent, fun loving and adventurous. In 2009, at age 16, Jillian was diagnosed with an aggressive form of blood cancer with a five-year surviv-al rate of less than 50% for children. The news was devastating. Jillian and her family endured three and half years of grueling treatments: continuous rounds of chemotherapy, three bone marrow transplants, one kidney trans-plant, two full years of dialysis and lengthy hospital stays. Despite three hopeful periods of remission, Jillian eventually lost her valiant battle with the disease on March 3, 2013. George Gorman, Jillian’s father, was fortunate enough to have a support structure to spend endless hours with Jillian during her time in the PICU (Pediatric Inten-sive Care Unit).

Unfortunately, many children’s families didn’t have the ability to do so, and not

by choice. Jillian had a vision that once better, to start a program to enable the families of these children to be with them in a critical time of need. Since its inception, The Jillian Fund has raised over $350,000 and has provided financial assistance to over 20 families with funding currently allocated to assist an additional 40 this upcoming year. As a result, these fami-lies have had the opportunity to spend precious time being with and caring for their children that they otherwise might not have had. Unfortunately, five children of the families the Fund has assisted have passed away. Being able to provide the opportunity for parents to be with their children, especially during the most difficult times, is the reason The Jillian Fund exists. Many families struggle to make ends meet, and every day, some of those same families receive the devastating news that their child has a life-threat-

ening illness. The emotional and financial challenges can be difficult to handle alone, especially when a parent needs to stop working in order to care for a critically ill son or daughter. Our objective is simple: provide financial support during a time of crisis to allow family members to better focus on sup-porting their sick child. Our network of social workers and our dedicated review committee evaluate and verify each request for financial need, and payments are made directly to service providers such as mortgage companies, utilities and more.

For more information, visit us at the-jillianfund.org or donate to the 2016 MWA Intelligence (MWAi) Ride for Jillian, organized by MWAi CEO Mike Stramaglio and sponsored by Clover Imaging Group and Industry Analysts, Inc. at ride.mwaintel.com.

Bill McLaughlinChairman, The Jillian Fund

CJ CANNATA AND FRANK CANNATA

RAFFLE PRIZE: 55” TOSHIBA HDTV

AUCTION ITEM: GUITAR SIGNED BY MEMBERS OF MAROON 5

JENNA STRAMAGLIO AND BILL McLAUGHLIN

• 12 •

Canon’s Chairman, President and CEO Fujio Mitarai delivered a keynote speech on November 5,

during the Canon EXPO 2015 Tokyo at the Tokyo International Forum. During his presentation, Mitarai addressed the outlook of the global economy and the innovations accompanying the Internet of Things (IoT).

To conclude his speech, which spanned a length of over 40 minutes, Mitarai said, “We would like to show you in 2020 the totally new reborn Canon by partnering with a world-renowned firm(s) and wel-coming top-rated companies with secure technologies into the group, in addition to these activities.”

Indeed, Canon’s past acquisition of Océ has become a big driving force in global expansion for Canon’s production print-ing business.

Canon EXPO 2015 Tokyo had its sights set on Tokyo in 2020 and displayed prod-ucts and systems under development that are expected to become available over the next five years.

Although Mitarai’s statements were made looking into 2020, it would be hard to be-lieve that they were solely based on wish-ful thinking. It is more natural to imagine that behind the scenes, negotiations for partnerships and acquisitions are already underway.

This provokes speculation for potential partners that would match or even surpass Océ and as to which companies Mitarai may be referring to as the “world-re-nowned firm(s)” Canon would form new partnerships with by 2020.

In addition to addressing the partnership and acquisition of prominent companies in his keynote, Mitarai also indicated Canon’s goals to pursue future growth with the imaging business at its core, expressing that “Canon is looking ahead to the IoT age and further refining its im-aging technology to build a bright future with you all.”

It seems like the world-renowned firms are part of the imaging industry.

In his keynote speech at Canon EXPO 2010 five years ago, Mitarai announced the company’s direction was to focus on new business, having stated, “We will make 1) medical, 2) industrial equipment and 3) security and safety as the three new pillars for business growth, while expand-ing the traditional imaging business.”

Currently, Canon is exercising its efforts to benefit the medical business and is actively exploring 3D printing develop-ment, which are both aligned with the objectives Mitarai announced during his keynote speech five years ago at Can-on’s EXPO 2010 Tokyo. However, it is thought that Chairman, President and CEO Mitarai’s new statements express his plan to redirect investments to their core imaging business from here on out.

Canon will surely be under a larger spot-light in the imaging industry for the next five years.

Mitarai Breaks Down BoardersCanon Chairman Emphasizes Partnerships with World-Renowned Firms

JAPANESE HEADLINES BY TETSUO KUBO

CR

Questions About This Story? Contact CJ Cannata

Phone: (917) 514-9501

Email: CJCannata@CannataReport.com

Fujio Mitarai, Chairman, President and CEO,

Canon, Inc.

• 14 •

Lexmark’s Soft SideSoftware and MPS Have Grown to Represent 40% of Overall RevenueBy Frank G. Cannata

For the past five years, we have been traveling to visit Lexmark in Lexington, Kentucky, and I must

say we think it’s about the worst place to travel to for business. However, once you get there, nobody treats you better or makes you feel more welcome than the folks at Lexmark. It is a combination of southern hospitality and a true desire to get feedback from those of us who cover the industry.

This year, we received the traditional overview of the company. (Bear in mind, this was before we received the news that its Board was advising Lexmark to explore selling the company. The October

23 press release did not say much, except to say the company was not interested in entertaining any questions from us.)

Lexmark’s leading comments included that software and MPS grew to represent 40% of overall revenue. From 2010 to 2015, Lexmark has been in an acquisition frenzy that has led the company to purchase 14 software companies, with the underlying strategy being to transform Lexmark into a solutions company.

Kofax was the latest buy in May 2015, costing Lexmark $1 billion, and it will obviously be a big contributor to the company’s strong growth in software and

MPS. Lexmark’s reasoning for all this software activity is its fundamental belief that 80% of all data is unstructured.

According to Lexmark, out of 170 billion business transactions, 90 percent utilized paper-based invoices at a cost to businesses of approximately $10 per invoice. This is the opportunity that Lexmark believes its dealers can exploit. The company sees 200,000 businesses in the mid-market where dealers are the strongest.

Lexmark is aware that dealers earn 85% of their revenue from their A3 devices in the SMB space. Nonetheless, this company continues to promote whaA4

Software & SolutionsOUTBOX:

of the

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We’re grateful to be rated number one 6 of the last 7 years in THE CANNATA REPORT Annual Dealer Survey.

Software & Solutions

• 16 •

MFPS can do for dealers, beginning with the opinion that A4 placements get twice the pages from competition versus A3. The assumption is that A4 is being loaded with software that addresses the basic challenges businesses face today, particularly in accounts payable.

Lexmark also reported its units were up 14% and revenue 7%, with color as a percentage of revenue at 25%. Solutions revenue was up 250%, and supplies growth increased by 30%.

Lexmark channel partners comprise 260 to 270 dealers, which has been fairly constant over the last four years. Unquestionably, this is where Lexmark has done an outstanding job. Over a 10-year period, the company has built a dealer distribution based on quality, not quantity. Lexmark has not been overly concerned with accumulating high numbers of dealers, but rather accruing dealers who would give the company the best possible chance for success. And Lexmark has done it.

Frankly Speaking

From my vantage point, this company has done well, but still faces an enormous uphill challenge. Of necessity, this A4-only company is concentrated in the SMB space, an area that has the greatest

deterioration of price and pages. With A4, you are addressing the old Segments 1 to 2 ½, which is not where the page volume is.

Companies that sell both A3 and A4 devices can deduce the average of their unit placements by combining A4 and A3 MFPs from products that sell from $2,000 to those that sell for $60,000. It is easy to understand why Lexmark is experiencing headwinds. That does not mean Lexmark cannot win, but it will be difficult. At an annual revenue of less than $ billion, perhaps Lexmark’s biggest challenge is its size as it competes with Canon, Konica Minolta, Ricoh and Sharp. Lexmark has partnered with Toshiba, which has worked well for both companies. Then, the industry has KYOCERA, the most successful manufacturer in the A4 base within the independent dealer community. For more data on the A4 market segment, please refer back to October 2015’s Dealer Survey Issue (Part II).

For now, we’ll have to wait and see if anyone does acquire Lexmark. Regardless of who that potential buyer is, we believe it will prove to be a very wise decision.

CR

Questions About This Story? Contact Frank G. Cannata

Phone: (860) 614-5711

Email: FGCannata@CannataReport.com

Chaos to order digital storyboard

“Lexi the Robot” (remote mobile participant platform)

On Tuesday, November 3, the annual Power of Print seminar was held in London’s historic Stationer’s Hall. A total of160 guests heard from

leading industry speakers from the U.K. about the future of print media in a multi-channel world.

We’d like to thank Angela Derbyshire for

writing such a fine article about this partic-ular conference, which I use here as a basis for a discussion on print. Her article, first published on Content Desk (Desk.thecon-tentcloud.net), gives a more global view on the question of print. It was very satisfying to read an article that came up with a con-clusion that we have supported for the last few years, “print isn’t dead—just evolving.”

After attending two extremely significant print expositions, Graph Expo 2015 and SGIA 2015, we are totally convinced that print is far from dead. While Graph Expo experienced marginal attendance, SGIA was bursting at the seams with over 23,000 attendees.

As I discuss in my article detailing the

OP-ED: FRANKLY SPEAKING

IMAGE MAKEOVERInnovation and Opportunities in Print Continue to Move Outside the Office By Frank G. Cannata

• 17 •

z Graph Expo 2015

z Canon Expo 2015

z HP Analyst Summit 2015

conference, Graph Expo suffered from multiple scheduling conflicts. If it weren’t for overlapping with the Jewish holidays, Ricoh’s incentive dealer trip and Canon’s EXPO, I believe the event would have en-joyed a much larger attendance.

If you’re still convinced print is dead, then look beyond the office space, which is showing signs of regeneration with the use of mobile-print applications. Those who are stuck in the “print is dead” mind-set are narrowing their focus on print in the office and are not considering the facts. Yes, print is certainly declining, but it is far from dead.

Simply look at high-volume and special-ty printing, all of which are projected to enjoy banner years in 2016. The London conference made the point that no one can deny that print is struggling, so print needs to get smarter, more integrated and adapt to the changing media environment.

It was not lost on the presenters at this U.K. conference that print needs to evolve to accommodate the quickly shifting landscape. In fact, companies are using a great deal of innovation in their use of current technology. A very good example of this is Coca Cola, which is employing HP technology to produce over a 1,000 different names on its bottles, inviting consumers to search the store shelves or refrigerator for a bottle with their names on it and then posting the obligatory Ins-tagram picture. (To read more about this particular application, along with HP’s partnership with Coca-Cola, read “High Stakes: Discover 2015 Exposes HP’s Big Gambles” from 2015’s June/July Young Influencers issue and TheCannataReport.com by CJ Cannata.)

According to Derbyshire’s article about the London conference, another appli-cation was revealed, one we had no pri-or knowledge of. Skincare manufacturer Nivea recently launched a beach cam-paign in Brazil where magazines were released with a removable wristband containing an RFID chip that sets off an alarm on your phone if your child wan-ders outside a safe zone.

Pernod Ricard, a well-known brand of alcoholic beverage, has also used HP technology. In this instance, the company released special edition whiskey bottles for those who wanted to give dear old dad something special for Father’s Day. Cus-tomers could buy the bottle, go online and upload a personalized message to their dads. Then, they received, free of charge, a new label with their message to stick on the bottle.

What is abundantly clear is that brands like HP who get print and use it smartly really see the benefits.

Managing Director Mark Davies of Whis-tl (formerly, TNT Post), who presented at the London conference, pointed out that we need to utilize data to be truly effec-tive. I was happy to read his follow-up statement that he thinks of Big Data as something everyone is talking about, but nobody is really taking advantage of the tools to manage or utilize it.

Without question, those who do leverage data effectively can yield some stunning results. Look at direct mail (DM) as an example. It is the second biggest media channel driver of purchases (31%), sec-ond only to TV. Highly targeted demo-graphic mailings are hugely successful.

The charity sector, in particular, is com-ing back to DM. Spend in the U.K. is up £50 million in 2014, compared with 2005 figures. Davies referred to the “zero mo-ment of truth,” where a consumer recog-nizes a need that first drives them online to search for a product or service. The point here is that print advertising/DM is a key driver of awareness.

In a presentation entitled “The Resurrec-tion of Print” by Richard Hale, Paterfa-milias at Google, Hale showcased some potentially world-changing stuff. For the 2014 World Health Day, ad agency Leo Burnett teamed up with Sri Lankan news-paper Mawbima to saturate its inks with citronella, acting as a mosquito repel-lent to help protect against malaria. The company sold 30% more papers that day, and increased subscriptions by 300,000.

Austrian magazine Vanguardist used inks with HIV-positive blood in them to raise awareness of the rise in HIV infection amongst young people.

For those concerned about the ecologi-cal consequences of harvesting so many trees, there was a response. Martin Wright of magazine Green Futures pointed out that while forest cover is increasing, wa-ter use in print is reducing, and there is a significant decrease in chemical use across the whole supply chain. Data, in fact, is using more natural resources than ever. The Internet represents 10% of the world’s energy use.

What this London conference did not appear to address was the substrates and media, in general, that are expanding the use of wide-format inkjet technology. To-day, you can print on wood, glass, vinyl and plastic up to two inches thick. Indus-trial printing, led by POP, represents a po-tential U.S. market of $32 billion.

Instead of thinking exclusively of print-ing on paper, think of the all materials that commercial printers can adapt their busi-ness to. Even more exciting is printing on fabric—producing short runs at a very low cost is a boon to the design industry and was amply demonstrated by EFI at both Graph Expo and SGIA.

In closing her very informative article, Angela Derbyshire included the follow-ing thought: “So, next time you pick up a piece of paper, which will probably be within the next few hours, it’s worth paus-ing to consider: Is print really dead, or is it very much alive and kicking?”

I’d also add: The next time you pick up a milk bottle made out of paper, think about how it was made.

Print is certainly not dead, it’s simply in the process of a major image makeover.

• 18 •

CR

Questions About This Story? Contact Frank G. Cannata

Phone: (860) 614-5711

Email: FGCannata@CannataReport.com

• 19 •

Commencing on Sunday Septem-ber 13, 2015, Graph Expo 15 opened its doors at McCormick

Place in Chicago, Illinois. While dealer meeting and other select conference atten-dance has experienced increases this year, we are sorry to report that Graph Expo continues to be one of several events un-der pressure with falling attendance and exhibitor participation.

For Graph Expo 2015, scheduling con-flicts abounded on just about every single front. To begin with, the conference dates coincided with Jewish holidays. The week before Graph Expo 2015, Canon U.S.A. (Canon) held its meeting, where Canon dealers from all over North and South America had an opportunity to see the latest production print equipment, as well as demonstrations of all recent Can-on technological developments. In addi-tion to that, Ricoh Americas Corporation

(Ricoh) hosted its dealer incentive trip during the exact same time period.

Adding to these conflicts, the transition from offset to digital presses has taken its toll on Graph Expo. Companies such as Heidelberg that once took up huge booth spaces on the floor no longer choose to show their wares here. Today, Graph Expo has become a digital press show place.

Despite these hurdles, Graph Expo 2015 welcomed a total of 17,941 verified par-ticipants, which included exhibitors and attendees, as well as 11,534 actual verified attendee/buyers who came from among 12 key industry segments, to see and to learn about the future of print. According to exhibitors, these decision-makers rep-resented 6,758 unique buyer companies and came equipped to examine, compare and invest in the latest graphic communi-cations technologies.

If we had to isolate the most salient point of Graph Expo, it would be the grow-ing use of inkjet to address the highest volumes and specialty products spaces. Employed in a digital, on-demand envi-ronment, inkjet is proving to be the mech-anism that enables manufacturers to build presses that can print on virtually any substrate up to two inches thick. At the same time, we also found the use of ink-jet in cut-sheet applications that operate at speeds of up to 300 pages-per-minute.

If you have any interest in learning about the current and future developments in the world of digital presses, Graph Expo is where you want to be. I don’t know if there is anything more important for dealers than addressing production print. High-volume printing represents 21% of the total revenue in the world of print.

At the same time, even though services

GRAPH EXPO 2015 Inkjet Technology Addresses Highest Volumes and Specialty Product Segments By Frank G. Cannata

(MPS and MNS) have emerged as equally important, the sale of hardware is essen-tial, necessitating at least 50 percent of an overall dealer revenue.

Perhaps the greatest relevancy of Graph Expo is the fact that it provides an agnos-tic forum where dealers can attend, see and evaluate products from every major manufacturer.

Dealers capable of addressing the op-portunities that exist in high-volume print represent less than 10% of the en-tire channel. In some cases, their primary A3 manufacturer may want to favor its own direct operation. In that situation, we would strongly urge dealers to take a long hard look at EFI and HP Inc. (HP) as companies with outstanding product offerings and an overwhelming interest in selling to and through dealers.

As we have in the past, we urge our deal-er subscribers to recognize this very im-portant segment of the business, and we consider Graph Expo a must for dealers looking to stay on top of color produc-tion print. Print in the office is a declining business and to maintain viability, dealers must seek out any and all opportunities to increase their click counts. Of necessi-ty, dealers must seek products that allow them to transition their businesses from the office to the industrial space.

According to InfoTrends, the high-end digital production color market will ex-pand from its current volume of 60 bil-lion pages to 87 billion pages globally by 2018. If that kind of substantial market expansion is predicted to occur in what amounts to a high-speed digital press, then dealers had best take advantage of it, as there is no other similar growth capa-bility in the entire print world, except in industrial printing.

Canon correctly assessed where it need-ed to go next after the C7000VP Series. It took the company a little longer than it should have, but we believe Canon has it right with its follow-up product. The col-or digital press line for Canon is now con-siderably deeper than it was at last year’s

Graph Expo 14. It appears that much of what the company promised last year is now available.

Canon leveraged Graph Expo 2015 to launch the imagePRESS C10000VP Se-ries. This press is designed to run a range of media types and weights and to support a monthly duty cycle of up to 1.5 million letter images.

Canon’s new imagePRESS Series features print speeds of up to 100 letter images per minute with the imagePRESS C10000VP, and 80 letter images per minute with the imagePRESS C8000VP, on all supported media weights up to 350 gsm. The imagePRESS C10000VP Series also includes a number of features:

• A resolution of 2400x2400 dpi, auto-matic color control and adjustments, accurate calibration using new inline spectrophotometric sensors and a Gloss Optimization technology to help match gloss levels of the printed image to the substrate it is printed on.

• Media support from 60 gsm (uncoated) and 70 gsm (coated) up to 350 gsm, de-livering competitive quality output on textured media and vellum, film and synthetic substrates.

• Select third party finishers, including a new creasing module for half folded leaflets and saddle-stitched booklets, and in general, a white-paper-in, fin-ished-product-out workflow.

• Workflow support and integration pow-ered by a choice of the latest PRIS-MAsync Color Print Server and Fi-ery-based imagePRESS Servers with new Fiery FS200 Pro System. All can be integrated with Océ PRISMAprepare make-ready solution, PRISMAdirect job submission, order and workflow management solution, and supported third party workflows.

The Canon imagePRESS C10000VP Se-ries is now available to dealers (MSRP was not available as of press time) and Canon Solutions America. We’d like to specifically note Canon’s press release

• 20 •

CANON

Canon imagePRESS C10000VP

• 22 •

included a cautionary note pertaining to this line that not all accessories will be available at the initial launch.

Moving on, Guy Gecht, CEO of EFI, al-ways conducts a press conference with a great deal of humor. What comes through is that EFI continues to broaden its hard-ware product offerings both organically through its own research and develop-ment and by acquisition. EFI now offers industrial printers that can print on any substrate, including textiles.

At Graph Expo 2015, I focused in on EFI’s VUTEk offerings, which provide entry-level printers that sell for $125,000

and higher-end devices that go up to $1 million. This lineup offers a complete path of devices that a prospective seller can incorporate into his or her inventory, while continuing to develop deeper pene-tration into this space.

The entry-level product is the H1625 LED hybrid printer. This is where we believe dealers should begin looking. The H1625 LED operates at speeds up to 458 square-feet-per-hour with resolutions up to 1200x600 dpi, and offers four-color, plus two channels of white, and single-pass multilayer printing, as well as eight-level variable drop grayscale heads, which EFI claims to provide quality imaging.

On the high end, there is the hybrid roll/flatbed EFI VUETEk GS2000Drop Tech-nology, a two-meter LED inkjet printer, that offers continuous board productiv-ity at 1,000 dpi with eight colors, plus three-layer white ink. A “cool cure” LED ink curing (drying) technology provides a high image quality and adhesion on flex-ible or rigid substrates up to 80 inches and up to two inches in thickness. These flatbed devices can print on wood, glass, vinyl and a host of other substrates. In terms of POP, it can also create wraps for vehicles as large as buses.

What makes this business so interesting is the huge consumption of ink and very good margins. As an example, the sale of ink can equal the cost of the device in the first year. That gives dealers some idea of where this product line can take them.

Excluding HP from a discussion about production print would do our audience a

HP

EFI

EFI VUTEk GS2000Drop technology

great disservice. As expected, the compa-ny was widely present at Graph Expo 15. Frank Romano, the leading expert in the world of production print, rightly consid-ers HP the No. 1 company in that segment of the business.

From the wide format being sold by inde-pendent dealers around the United States to the industrial printers that are exploit-ing the POP or the display-graphics mar-ket, HP delivers a highly competitive product. According HP, production print represents 22.5% of its $60 billion in rev-enue, no small number given the overall size of the company since its recent split.

We believe HP has its sights set on the growing display-graphics market, which is estimated to be $80 billion with 41% being allocated to digital devices, accord-ing to I.T. Strategies, InfoTrends, IDC and EFI Business Intelligence.

In our SGIA article to follow we address one of HP’s new wide-format products, the 110, as we believe it is a product inde-pendent dealers can do a lot with.

Over the course of the last five years, Konica Minolta Business Solutions

U.S.A., Inc. (Konica Minolta) launched the C800 Color Digital Press, Pro 1200, the 1250 black-and-white production print systems, and the Cll00 Color Digital Press. This manufacturer’s line of color products tops out at 100 pages-per-min-ute with a 1 million-page duty cycle. In conversations with several Konica Mi-nolta dealers (who requested to remain anonymous), they responded well to the C1100’s speed, registration, quality and stability of the systems. Specifically, we consistently heard was that this product “runs as advertised.”

Konica Minolta has been steadily expand-ing its production-print and high-volume offerings, and I would not be surprised to see its next iteration of digital presses at the company’s forthcoming dealer meet-ing (scheduled for July 28–31, 2016, in Aspen, Colorado). When we visited with Konica Minolta in Japan last year, the company’s representatives were candid in their assessment of the future. They believe there are many avenues open to Konica Minolta, and the company is ex-ploring all of them.

This initiative was aptly and amply demonstrated at the company’s Febru-ary 2015 dealer meeting in Los Angeles, when Konica Minolta announced its part-nership with 3D Systems, as well as the private labeling of the EFI1625. The latter was subsequently launched successfully, and it is outselling the manufacturer in terms of product placements.

KONICA MINOLTA

Konica Minolta KM-1

A little known fact about Konica Minolta is its KM-1 (yet to be released, but in pre-view for two years). The KM-1 represents a breakthrough in the digital-press seg-ment. This company has been a leader in the piezoelectric inkjet market for years, with its heads and inks being used in ev-erything from commercial products to industrial inkjet and hybrid applications. Over 15 years ago, Konica Minolta re-leased the Nassenger textile inkjet printer, which has been nothing short of revolu-tionary in the short-run textile market.

To exploit this technology, Konica Mi-nolta had two options: the company could have gone after the existing aque-ous inkjet world of low quality web fed or the company could choose to create a high-quality, cut-sheet solution. Konica Minolta opted for the latter in building the KM-1 in cooperation with Komori. We fully expect to see the KM-1 at the next Konica Minolta dealer meeting, where we think it will be the star of the show.

Ricoh also continues to improve its pro-duction print lineup. For dealers, the Ricoh Pro C9100 and Ricoh Pro C9110, which is its newest high speed, produc-tion color digital printer series, have a fairly broad appeal. We can easily envi-sion small to large print service providers looking to transition from offset taking a serious look at some of these products. We first saw the C9110/C9100 over a year ago in Japan. We recognized that Ricoh was doing more just strengthening its

production print offering. The company was aiming to deliver the most complete line of digital presses from color 60 pag-es-per-minute to 130 pages-per-minute.

The new Ricoh Pro C9110/C9100 deliv-ers prints at a resolution of 1200 x4800 dpi with VCSEL image quality. This engine can support paper weights of up to 400gsm in simplex and duplex and offers a maximum sheet size of 13x19.2 inches with a month-ly volume maximum of 1 million pages (based on letter-sized paper) and a duty cy-cle of 1.75 meters. This is another product that we believe dealers can handle and profit with. By moving to the tops of the lines that are offered by Canon, Konica Minolta and Ricoh, dealers will be able to differentiate themselves from mainstream competitors who cannot sustain an effort in this product segment.

Canon, Konica Minolta and Ricoh can more than compete with the rest of the print world, including HP and Xerox.

• 25 •

CR

Questions About This Story? Contact Frank G. Cannata

Phone: (860) 614-5711

Email: FGCannata@CannataReport.com

RICOH

Frankly Speaking

While there was more to report on, these were the main highlights of Graph Expo 15. Over the next few months, we’ll be delivering more information we collected at the conference.

We’d also like to mention our own seminar at Graph Expo, which in-cluded our subscribers and import-ant clients. Thirteen dealerships with a collective total revenue of nearly $900 million in revenue last year were represented at the event.

Our discussion focused on dealers and industrial printers. Based on our follow-up conversations with these dealers, they valued the information we provided, and some are very ex-cited about their future with this product segment.

Looking out to next year, we are planning on providing another sim-ilar seminar at Graph Expo 16 in Orlando, Florida. The dates are Sep-tember 25–28 at the Orange County Convention Center. We urge our in-dependent-dealer readers with any interest in production print to attend this show. Our seminar is free and will include lunch. We will be pro-viding more information as we round into the new year.

Ricoh Pro C9110

• 26 •

The Specialty Printing and Imaging Technology Exposition (SGIA) in Atlanta in early November was a

success by any definition I know. It was the first time we have ever attended this event, and I have to say it was well worth the effort. This exposition and conference is ideally suited to explore wide format in all of its configurations from graphics to industrial printing. Why we did not see more of the independent dealers com-munity at this particular show, especially those from the Atlanta area, I don’t know. I’ll take some of the blame for not alert-ing them to what this gathering provides for them.

This year’s SGIA Expo redefined the meaning of success in specialty imaging. We visited the show floor every day, and it was easy to see just how well-attend-ed it was. According to the officially re-leased numbers, more than 23,000 regis-tered attendees walked through the show doors over the event’s three days dura-tion. To provide a comparison, we noted that there were more than 17,000 attend-ees at this year’s Graph Expo in Chicago in mid-September.

EFI’s Textile Textures

EFI showcased some high-margin pro-duction opportunities, possible with efficient, reusable textile soft signage with its newly acquired Reggiani tech-nologies and water-based dye sublima-tion inks.

The EFI Reggiani ONE 180 soft signage printer EFI had on display at SGIA was a 1.8 meter printer for direct-to-textile, or transfer-paper printing. The printer of-fers high speeds up to 3,336 square feet (310 square meters) per hour, four-color printing, resolutions up to 2,400 dpi and four-level grayscale imaging.

This printer gives EFI one more area that it can exploit with its industrial printers. EFI has now added textiles to wood, glass, vinyl, plastic and a host of other substrates to print on. Textile printing is hailed as another growth market and is expected to reach $1.5 billion by 2018.

HP on Top

Since the introduction of HP Latex Printing Technology in 2008, more than 30,000 HP Latex printers have been in-stalled at customer sites worldwide, with third-generation HP Latex devices achiev-ing industry-leading growth in the digital wide-format market. On display were the HP Latex 300 Printer series, which has grown 46% year-over-year.

The HP Latex 360 Printer is ranked as the top-selling printer in its category in the U.S., according to IDC market research from August 2015. This data is specific to the low-volume, digital large-format market, specifically addressing 42” to 44” and 45” to 71”.

We had an opportunity to see the new 110

Latex wide format, and it was impressive, especially given the suggested retail price of $9,600, which is positioned right in a dealer’s wheelhouse.

Wide format can be a growth engine for dealers, and those reluctant to dive in should look at entry-level products such as the 110 and the EFI 1625 being sold by Konica Minolta. They both represent entry-level type products, the HP 100 for latex wide format (outdoor signage) and the EFI 1625 for industrial printers.

OKI Acquires Seiko

On July 8, 2015, OKI Group Company signed an agreement with Seiko Instru-ments, allowing OKI Data Corporation (OKI) to acquire the wide-format printer business from Seiko Infotech, Inc.

Through the Seiko acquisition, OKI brought a portfolio of wide-format inkjet printers for signs and LED graphic plot-ters from into their product line, which also includes the technologies and devel-opment resources, along with the relevant sales channels.

We think this was a good move by OKI, which really had little future with the lim-ited line of products it had. OKI is another one of those $4.5 billion companies trying to compete against HP, Canon and a host of other companies that are far larger than it is. However, size alone does not mean these companies cannot survive. Specifi-cally for OKI, based on our research, the Seiko wide-format line is a good one and gives the OKI organization another arrow in its quiver.

OKI’s future potential in A4 and even A3 printers is limited at best. But wide for-mat is a story of another color. I give OKI credit for its Seiko acquisition.

SGIA Surprise

2015 Event Redefines the Meaning of Success in Specialty Imaging By Frank G. Cannata

This exposition and conference is ideally suited

to explore wide format

in all of its configurations

from graphics to industrial printing.

However, I also believe that while OKI currently engages dealers in the sale of office-oriented devices and products, the company has not pursued the indepen-dent dealer community for the distribu-tion of specialty printers. Instead, these are currently offered to another channel of distribution. That said, this is just as well. There are better places for dealers to spend their money, and one of them is wide format.

OKI’s newly acquired wide-format prod-ucts are listed as the Color Painter Series and are priced in a range that should fit dealers very well. We think they are good products and earned a solid reputation while being offered by Seiko.

CR

Questions About This Story? Contact Frank G. Cannata

Phone: (860) 614-5711

Email: FGCannata@CannataReport.com

SGIA vs. Graph Expo

At SGIA, we visited with Canon and Ricoh, in addition to OKI, HP and EFI, and attended all the press con-ferences on the first day. We missed out on visiting with Xerox, but we’ll be making a greater effort to squeeze that one in next time. We wanted to determine if what these companies were saying was applicable to our readers. Surprisingly, quite a lot did.

To compare, Graph Expo may have been better organized from a press standpoint, and the manufacturers we like to visit were all there. At SGIA, if there was one disappointment, it was that Konica Minolta, a very im-portant manufacturer for us to cover for our readers, wasn’t there.

In our minds, this year’s SGIA was a winner. If you are in the wide-for-mat business, it is definitely one show you shouldn’t miss. The 2016 SGIA Expo is set for Las Vegas, September 14–16. It is already on our calendars.

EFIHP INC.

CANON

EFI

HP INC.

XEROX

RICOH

HP INC.

HP INC.

OKI

• 28 •

When Xerox’s Toni Clayton-Hine, Vice President of Global Marketing and Val-ue Proposition, Channel Partner Oper-ations, joined the company in 2013, she brought with her a career’s worth of prob-lem-solving abilities that are now helping Xerox better penetrate the dealer channel and improve its mind share. As a testa-ment to Xerox’s commitment to helping dealers continue and strengthen their evo-lution to a more consultative approach of selling products and services, the compa-ny shrewdly hired Hine, who honed her experience from the IT side.

“Toni is amazing to work with,” said Xe-rox’s President of Channel Partner Oper-ations and Corporate Vice President John Corley, who has been with Xerox for over 22 years. “In fact, I think she’s one of the company’s best external hires I’ve seen in my career here. She has a wealth of ex-perience that she brings to the table from an indirect channel standpoint. At Xerox, historically, we have grown up as a direct organization and we have evolved, and continue to evolve, to become more agile and nimble to do business with, and be more relevant for our partners.”

Clayton-Hine began her career in the media business in the mid-1990s at The Channel Company (formerly United Business Media). Working from several angles of the business from large account management and brand management to business development and sales manage-ment, Clayton-Hine was able to develop a comprehensive knowledge about selling to the IT channel.

In 2003, Clayton-Hine leveraged her ex-pertise to co-found The Channel Com-pany’s IPED, a portfolio of consulting, education and research to help clients develop strategic, effective and profit-able channel strategies. Hine worked to create IPED’s brand, as well as oversaw the development of the program’s sales, marketing and operations.

In June 2009, she bounced out to CA Technologies (formerly Computer Asso-ciates International), one of the largest independent software firms in the world. Here, Clayton-Hine served as Vice Pres-ident of Worldwide Marketing and was subsequently elevated to Vice President of Global Channel Marketing, where she was responsible for developing indirect channel programs and generating demand for all indirect routes to market, including MSPs, solution providers, service provid-ers and integrators.

Always intrigued about learning more, Clayton-Hine arrived at Xerox two years ago, ready to dive into the hardware busi-ness after spending her career immersed on the software side. She jumped from channel marketing for a $600 million company to a $4 billion overnight. Hav-ing primarily focused on integrators and solution providers who were IT-centric at The Channel Company and CA, Clay-ton-Hine said she was excited to learn more about the dealer channel and how their businesses work.

“I was constantly looking at new ways to approach the problem,” said Clay-

Xerox’s Improved PerspectiveToni Clayton-Hine Brings Wealth of Experience to Help Partners Succeed with XeroxBy Sharon Tosto Esker

ACKNOWLEDGING CONTRIBUTIONS OF

WOMEN ACROSS OUR INDUSTRY

TONI CLAYTON-HINE Xerox’s Vice President of Global Marketing and Value Proposition, Channel Partner Operations

• 29 •

ton-Hine about her career’s progression. “I was in the media business but realized that we used data to help sell media and wanted to turn that data into a new seg-ment of the business. From there, I was able to meet a lot of companies: hard-ware, software, large and small start-ups, and established companies. I was able to see what worked and what didn’t.”

Today, she is now running efforts for Xerox’s Channel Partner Operations, the SMB arm of Xerox, running all of mar-keting, including offering strategy, value proposition, end-customer demand gener-ation and channel marketing.

“At Xerox, we’re in a hardware-dominat-ed world, but there are these components of the software IT world that are real-ly prevalent to where a dealer business wants to go,” said Clayton-Hine.

Xerox’s Efforts with Dealers

When Clayton-Hine arrived at Xerox, she was faced with the challenge of shifting Xerox’s approach to its dealer partners.

“Toni is the pioneer behind a lot of our business-model evolution,” said Corley. “She has brought to our company an ex-ternal viewpoint of developing a route-to-market view on how we go to market, where prior to Toni coming on board, we really classified dealers by what they sold in terms of products, as opposed to their business models or how they make mon-ey. [As a result,] we are now becoming more relevant to a number of partners in the industry.”

“I believe companies have a certain DNA, and they’ve been built up to be successful from the way they’ve grown up, so it’s not always reasonable to ex-pect an IT-centric company to under-stand the benefits of recurring supplies consumables revenue, for example, and it can be difficult for a print-cen-tric company to understand the bene-

fits of connecting back to an IT deci-sion-maker and what that can do to the business,” said Clayton-Hine. “By tak-ing a route-to-market approach, we’re able to then organize our value propo-sition, benefits and requirements based on how the partner goes to market.”

In approaching dealers by focusing on how they are looking to grow their busi-nesses—whether it’s by adding more lines, going upstream in the produc-tion market or connecting to an IT de-cision-maker—Xerox is able to give its dealers more specific, prescriptive solu-tions to help them.

Given this targeted approach, Clay-ton-Hine said Xerox is very diligent about amassing its dealer partners. Xerox is looking to work with the “right” port-folio partners that cater to the small- to mid-size business market, which means being specific about where the compa-ny recruits and insuring its products are not over-distributed. To Clayton-Hine, an ideal dealer partner believes adding Xe-rox in his or her portfolio can help them better capture the $20 billion U.S. market in document technology and services.

“We want our partners to have room to grow and be successful,” said Clay-ton-Hine. “There’s no benefit to us of re-cruiting a partner to then just switch their machines if it doesn’t grow the overall business. We want it to be accretive to both them and to us.”

In Clayton-Hine’s eyes, successful deal-ers have a clear and deep understanding of their local markets and they are selling how a customer wants to buy. These deal-ers also have an incredible understanding of the business challenges of their buy-ers and are able to present solutions and options that map to where each buyer is today—where they are in the buying cy-cles and how they want to buy, in terms of leasing, cost-per-click, contracting, man-aged print, etc.

“We see them [successful dealers] abso-lutely at the forefront of being able to sell value-added solutions, expanding the sale beyond the hardware to add higher-value solutions to create value for their custom-ers,” said Clayton-Hine. “We spend a lot of time talking with our dealers about cre-ating a bridge to IT by improving the flow of work.”

To support dealers and gain mindshare, Clayton-Hine emphasizes quality people, products and incentives. On the ground, Xerox relies on its channel managers to be fluent in the business of dealers, as well as being able to engage and work with dealers. The company also strives to provide appropriate programs and incen-tives that show Xerox can be top of mind when it makes sense.

Also important in advancing mindshare in the dealer community is the company’s effort in portfolio mapping to figure out where Xerox would logically fit in deal-ers’ portfolios to help dealers increase market share.

“We can’t imagine it would be benefi-cial for a partner to add a fourth vendor in the A3 space they’re already selling,” said Clayton-Hine. “But oftentimes, there is a high degree of focus in adding cer-tain light-production or production-type products that can help grow their overall business, or a managed print solution or service to capture more of that as well.”

Xerox Defines Opportunities

When working with its dealers, one of Xerox’s main priorities is trying to help dealers increase the value of the solu-tions they sell. For example, if dealers are selling a scanning app, Xerox is try-ing to work with dealers to show how the company can help them sell a personal-ized scanning workflow solution for their customers that the dealer can then charge them for. Xerox has been building out use cases so partners can create stickiness

• 30 •

with their customers by driving more per-sonalized workflow applications in the customer environment.

To buoy this effort, Xerox recently pub-lished a playbook that goes through 15 dif-ferent scenarios (out of the 50 Xerox has currently collected), shown both by hori-zontal and vertical, highlighting specific situations, for example, in real estate and hospitals, as well as services workflows.

Xerox’s primary goal with the playbook was to specifically map out scenarios to help its dealers recognize a potential op-portunity in one of their existing lines of business and show how the company can help these dealers not only identify the op-portunity, but also provide a personalized, customized solution for their customers and options to monetize those solutions.

The playbook is very specific in detailing the precise steps to take advantage of the opportunity, as well as the professional services dealers would need to have, pro-cure or outsource to another partner, and where Xerox thinks the dealer can make money from it.

“The response has been overwhelming,” said Clayton-Hine. “We’ve really tried to

be honest. We don’t want to say, ‘It’s go-ing to be super easy for you to do all of this.’ We want to be very specific about if you want to drive this as a recurring rev-enue stream to your business, here’s what it would take. Then, map out: You want to build this yourself? Here are the ingredi-ents. Here are the next steps. You want to re-sell the Xerox-branded version? Here’s how you do that. You want to re-sell from one of our other personalized-application builder partners? You can do that, as well. My goal is that we want as much of our partner community developing or selling workflows and solutions that drive recur-ring revenue to them. We believe if they can create that unique experience for their customers, that will drive stickiness for them, and quite frankly, for us.”

Xerox’s Value Proposition

“Our goal is to help our partners ex-pand their sources of profitable revenue by connecting our portfolio–which is the broadest portfolio in the industry–to their unique solutions so we can innovate how SMB can work better,” said Clay-ton-Hine.

From her perspective, Xerox is a strong fit for the right dealers. The brand is well-

known, the portfolio of products is attrac-tive, and the company has a stable of pro-fessionals at the ready to help dealers and support their endeavors.

“We know our partners have choice,” said Clayton-Hine. “And we want to earn their business every day.”

CR

Questions About This Story?Contact Sharon Esker via email:

SEsker@CannataReport.com.

Recognized for Her Own Merit

As a respected woman professional who has succeeded in a predominant-ly male-dominated industry, Clay-ton-Hine said she has been able to carve her path by bringing unique solutions and expertise to her roles.

“As a female being at a table where decisions are made, I never had the sense that it wasn’t about what I knew or what I brought to the table,” said Clayton-Hine. “For me, I think having subject-matter expertise about chan-nel and the diversity of channel really helped drive credibility within the envi-

ronments I was in. In all honesty, both CA and Xerox are relatively new to the channel in terms of different ways to approach it in base and scale. This po-tentially gave me an advantage because of the subject-matter expertise I’ve been able to bring.”

When it comes to developing a suc-cessful career in our industry, Clay-ton-Hine’s advice is simple.

“Keep your eyes out for other ways to solve problems,” said Clayton-Hine. “Chances are the answers are out there, and it may just be looking at the prob-lem in a different way.”

Toni’s Take: Suggested Reading from Xerox’s Toni Clayton-Hine

“Blue Ocean Strategy: How to Create Un-c o n t e s t e d Market Space and Make the Compe-tition Irrele-vant” by W. Chan Kim and Renée Mauborgne

“It helps you think differently about a highly competitive environment.”

“The Innovator’s Dilemma: The Revolutionary Book That Will Change the Way You Do Business” by Clayton M. Christensen

“This books looks at how you can rethink and relook at a market land-scape based on new entrants com-ing in.”

Harvard Business Review and On-line Case Studies

“I’m constantly looking for ways that other industries solve similar prob-lems and trying to figure how we can take from that and learn from that.”

• 32 •

Today’s Titans of TerrorISIS Perpetuates Its Deadly Agenda in Paris and San Bernardino By Frank G. Cannata

On Sunday, November 15, terrorists un-leashed a slaughter of 129 people killed, while wounding 352. These innocent vic-tims were enjoying a concert, watching a soccer game or having dinner at a café in Paris, France. French President François Hollande described the deadly attacks carried out by ISIS (also known as ISIL or Daesh) as an “act of war.”

The first terrorist to be identified was Is-mail Omar Mostefai. Another unconfirmed participant was said to have been 15-years old. The teenager was thought to have tar-geted the Stade de France, near to where two suicide bombers blew themselves up.

Mostefai, who attacked at the Bataclan con-cert hall, has been formally identified as a 29-year-old French national with Islamic links and was known to French authorities. Mostefai was born in Courcouronnes, a suburb in southern Paris.

Three groups of terrorists were behind the attacks: one at the Stade de France and two others at five other locations.

The scent of gunpowder still lingered in the air on December 2, as San Bernardino California Police Lt. Mike Madden and three other officers approached a confer-ence center where a mass shooting had been reported.

Fourteen people died here and 21 more were wounded. The attack was identified by CNN as “an Islamic extremism-in-spired terrorist attack.” The carnage con-sisted of a mass shooting (and attempted bombing) at the Inland Regional Center in San Bernardino, California, United

States. Syed Rizwan Farook and Tash-feen Malik, a married couple living in the city of Redlands, targeted a San Bernardi-no County Department of Public Health training event and holiday party of about 80 employees in a rented banquet room. Farook was an American-born U.S. citi-zen of Pakistani descent, while his wife was a Pakistani-born legal resident of the U.S. He attended the training event as an employee before the shooting.

Worldwide outrage followed in the af-termath of these horrible events, osten-sibly carried out by ISIS. This terrorist group poses a threat to the entire civilized world. In my way of thinking, the threat encompasses every country on our globe except Iran, Saudi Arabia and Pakistan.

However, the response must be a careful and measured answer to those who have either initiated or supported those actual assailants in these two disparate attempts to goad us into a similar backlash with the entire Islamic community.

The cry from some of our political leaders is for “boots on the ground.” This means the U.S. military will be once again asked to bear the brunt of the attack. Confront-ing ISIS is a complex issue and leaping to judgment on the best course of action can only serve to add to the misery these ter-rorists have already foisted upon all of us.

Saudi Arabia and Pakistan are supposed to be our allies. At the same time, we know that Iran is among the largest sup-porters of terrorism around the world. No matter what action we take, American lives will lead the casualty lists. Both

Great Britain and France pleaded for the U.S. to take a leading role in the wake of Libya’s terrorist bombing of a Berlin discotheque in 1986. After we agreed and got involved, both the U.K. and France suddenly showed less enthusiasm to stay involved in North Africa.

There are two things I ask our audience to consider carefully. The first is to ask you all not to blame Islam, a peaceful re-ligion, for these horrendous acts. These terrorists profess to fight to establish a caliphate (the worst kind of extremism of the Islamic faith) situated in Syria and Iraq. With oil they have taken from Iraq, they have been able export their terrorism to the United States and Western Europe. These so-called Islamic extremists are miscreants of the worst kind. The religion they claim to be fighting for has no tenets, teachings or philosophical views that would support the horrible acts that have been committed in the name of Islam.

Secondly, I ask you to think long and hard before you raise your voice along with those who believe large numbers of Ameri-can military can lead the way in ridding the world of this filth. We have suffered greatly as a nation, but that suffering has been borne by military volunteers who are prepared to give their all to defend our way of life. Bear in mind, we currently have over 250,000 veterans of Iraq and Afghanistan diagnosed with traumatic brain injury. Their youth has been taken from them, and their future has been diminished, for they will never reach the potential or the promise they once had.

You are a bright, well-educated audience, and you are also a reasonably affluent one.

VETERAN’S WAYIN HONOR OF THOSE WHO GAVE

SO MUCH AND RECEIVED SO LITTLE IN RETURN

Presented by U.S. Bank

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You are able to enjoy the benefits of the freedom we currently enjoy. One of those benefits is freedom of choice (including choosing your opinions about how to con-front terrorism).

Our military deserves our support in ev-ery possible way. That may mean raising your voice in their being sent to Syria and Iraq to combat the threat of ISIS.

But, if that’s your position, hold our gov-ernment responsible for not adequately caring for those who have already given so much. The Veterans Administration

still does not recognize PTSD for Viet-nam veterans. Where is the justice in that?

Should our military be committed to ac-tion in significant numbers (in my opin-ion, that would be in division strength, plus support units), then I implore you do what you can to insist these service peo-ple are given the maximum opportunity to execute their mission, and are never abandoned to their own devices when they return home, potentially wounded both physically and mentally.

You have the power to force the political

debate to address these actions. May God bless all those who have served and are serving and may God bless America! *Sources: CNN, the Los Angeles Times and Wikipedia

Is there a veteran in—or close to—the industry we should consider writing about? Email CJCannata@TheCanna-taReport.com.

CR

Questions About This Story?Contact Frank G. Cannata

Email: FGCannata@CannataReport.com

Phone: (860) 614-5711

Konica Minolta’s Bringing Digital Printing to Life*Hilton La Jolla Pines ResortLa Jolla, Calif.January 13–15

EFI Connect 2016*The WynnLas Vegas, Nev.January 19–22

SDG Owners Meeting**Wild Horse Pass Hotel and CasinoChandler, Ariz.February 16–18

MWAi Exec. Connection Summit**Hotel Valley HoScottsdale, Ariz.February 17–19

Canon Solutions America Anniversary Event*Boca Beach ClubWaldorf Astoria Resort Boca Raton, Fla.February 22–24

ITEX 2016*Broward County Convention CenterFt. Lauderdale, Fla.March 8–10

IBPI Regional and Annual Meeting InterContinental HotelNew Orleans, Louis.March 16–18

BTA Southeast “Spring Break”InterContinental HotelNew Orleans, Louis.March 18–19

CDA CEO Meeting**The Ritz CarltonSan Juan, Puerto RicoMarch 18–20

BPCA Spring Best Practices*Atlanta Marriott BuckheadAtlanta, GAMay 9–12

Lexmark 2016 Dealer Meeting*Marriott Harbor BeachFt. Lauderdale, Fla.May 9–11

KYOCERA 2016 Dealer MeetingTBAOrlando, Fla.May 16–18

Toshiba LEAD 2016**Bellagio Hotel and CasinoLas Vegas, Nev.May 16–18

DRUPA 2016*Düsseldorf Exhibition CentreDüsseldorf, GermanyMay 31–June 10

BTA Mid-America/BTA’s 90th Anniv.*InterContinental at the PlazaKansas City, Mo.June 8–10

BTA WestThe MirageLas Vegas, Nev.August 4–5

KMBS Dealer Meeting 2016**TBAAspen, COAugust 28–31

SGIA Expo 2016*Las Vegas Convention CenterLas Vegas, Nev.September 14–16

Graph Expo 2016*Orlando’s Orange County Convention CenterOrlando, Fla.September 25–28

The Cannata Report 31st Annual Awards & Charities Dinner**TBAOctober 6, 2016

BTA Southeast/Fall Colors RetreatTBAAsheville, N.C. Ricoh Dealer Meeting 2016*TBALas Vegas, Nev.October 24–26

Conflict Avoidance

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*Frank Cannata and CJ Cannata to attend. **Frank Cannata, CJ Cannata and Carol Cannata to attend.

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