(Norwell, MA) January 8, 2003… A successful shift to selling and deploying software-based solutions and services will be a critical factor in determining the future viability of a number of office equipment vendors. To remain profitable, channels must evolve to a distribution structure that is focused on capturing revenue beyond the placement of office equipment.
Many factors are currently moving office equipment vendors away from their hardware-centric roots and toward a solutions focus. Four of the most critical factors are the shift in customer interest toward complete document solutions, the decrease in hardware margins, increasing competition from the printer industry, and the increased sophistication of current product offerings.
“As hardware differentiation and margins are declining and customer expectations are shifting toward complete solutions, it is becoming increasingly clear that the growing document solutions opportunity offers and attractive path to future growth and profitability,” commented Joel Mazza, a Director at CAP Ventures. “To capture the software and services revenue opportunity, direct sales organizations and dealers need to meet their customers’ total needs by moving into segments of the document lifecycle, beyond printing and finishing.”
To make this challenging transition, vendors need to develop a solutions strategy, gain commitment to the strategy from all levels and functional areas of the company, or create a dedicated organization.
“Because the market is shifting quickly and the transition will take a significant amount of time, resources, and effort, organizations that move quickly toward this new opportunity will have a greater chance for success,” Mazza continued.
CAP Ventures white paper entitled Defining the Evolving Channel for Office Document Solutions examines the rapidly changing Document Solutions Channel. It will discuss the evolution of the office equipment marketplace, the need for a solutions approach, as well as success factors and strategies for transitioning to a solutions-led business and sales model. It outlines key findings from CAP Ventures research, and discusses interviews with several document solutions vendors.
The complete white paper is available immediately to clients of CAP Ventures’ Network Document Solutions Consulting Service. To learn more about the study or to make a purchase, please contact Stewart MacDonald at (781) 871-9000, ext. 175 or [email protected]