ITEX Keynote - Jeff Hayes InfoTrends
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Transcript of ITEX Keynote - Jeff Hayes InfoTrends
1© InfoTrends www.infotrends.com© InfoTrends
Strategic Paths and Superstars
Jeff HayesManaging DirectorMarch 7, 2016
2© InfoTrends www.infotrends.com
Agenda
Industry Trends
Falling Stars and Superstars
Strategic Paths
1
2
3
4 Recommendations
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$0
$10
$20
$30
$40
$50
'10 '11 '12 '13 '14 '15 '16 '17 '18 '19
Office Production
U.S. Office and Production Revenue –Equipment, Supplies & Service ($B)
Includes printers, MFPs, rollfed and cut sheet HS printers
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0
400
800
1,200
1,600
'10 '11 '12 '13 '14 '15 '16 '17 '18 '19
Business IJ Workgroup Toner LV Production HV Production
U.S. Office and Production Print Volume (B)
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U.S. Document Solutions and MPS ($B)
$0
$5
$10
$15
2010 2015 2020
Document Solutions
Managed Print Services
• Value shift from HW to SW and Services
• New business model and skills
• Opens door for new opportunities
• Exposes companies that don’t master
7© InfoTrends www.infotrends.com
Classic Market Development Curve
Market Rapid CompetitiveDevelopment Growth Turbulence Saturation Decline
Sales/ Growth
Time
Fax
MFPsPCs
Managed Services
Security
Mkt Automation
NLPQuantum computing
IoT
3D
Mobile
Big Data
AR
Cloud
R&D, Entrepreneurial Operations, ServiceMarketing, Sales Accounting
WorkflowWFPs Presses
9© InfoTrends www.infotrends.com
"For 240 years it's been a terrible mistake to bet against America,
and now is no time to start."
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0
300
600
900
1,200
1,500
'89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20
Technology Disrupts, Recessions Clarify
U.S. Office Copy and Print Volume (B)
Source: InfoTrends
US Economic recessions
“Company”MFPs Workflow Services
Digital
No recessionforecast
Recessionforecast
We are here
Average Expansion
Longest Expansion
11© InfoTrends www.infotrends.com
Strategic Paths
Innovation Driven
OperationsDriven
Greater
• quality• efficiency• productivity• customer service
New
• services • products
• customers• business models
Continuous investments in …
•technology•business processes •sales & marketing
that lead to …
Lagging
Mainstream
AdvancedSurviving
Striving
12© InfoTrends www.infotrends.com
Where Are You?
OperationsDriven
Fax
Forms SMB
Break/FixA3/A4
Innovation Driven
Workflow
MPS
Production
SecurityBack-up
Predictive
VisualizationMarketing Automation
Analytics
3D
Managed Services
Mobile
Cloud
Figure out the right mix of operations and innovation initiatives
ERP, CRMVerticals
Website
Regions
13© InfoTrends www.infotrends.com
InfoTrends State of the Channel Survey
96 U.S Independent Office Equipment Dealers356 locations across 41 states
$2B in aggregate sales
14© InfoTrends www.infotrends.com
Who We Spoke With
Source: InfoTrends State of the Channel Report
COO, Exec VP,
Sr VP12%
VP, Director
3%
CEO, President, Owner85%
• 97% C-suite respondents
‒ Key operating metrics
‒ Mix of business
‒ Infrastructure
‒ Initiatives & priorities
‒ Challenges
15© InfoTrends www.infotrends.com
Source: InfoTrends State of the Channel Report
Growth MarginRevenue
>$100M
<$1M
50%+
–25%
40%+
–10%
$20.7M 5.1% 12.4%
Profit margin defined as revenue minus cost of goods sold, labor and other operating expenses as a percentage of revenue.
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-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
-30% -20% -10% 0% 10% 20% 30% 40% 50%
Margin
Source: InfoTrends State of the Channel Report
Profit Maximizers
Average5.1% growth
12.4% margin
Superstars
Growth DriversFalling Stars
Revenue Growth
Among the largest dealersHighest service/supplies revenue %Highest recurring revenue %Highest vertical solutions revenue %Highest SMB revenue %Highest sales rep quotasLowest sales rep annual compensation
The largest dealersHighest equipment revenue %Highest % with marketing departmentMost sales reps2nd highest sales rep quotasHighest sales rep annual compensationMost variable comp % for sales reps
The smallest dealersLowest recurring revenue %Lowest Office Tech & Svcs revenue %Major product categoriesLowest revenue per product categoryLowest sales rep quotas2nd lowest sales rep annual comp
Mid-size dealersHighest Office Tech & Svcs revenue %2nd highest recurring revenue %Least likely to offer Managed ITFewest major product categories2nd highest revenue per product categoryAverage sales rep quotas and compensation
20© InfoTrends www.infotrends.com
The Goldilocks Company
Too Hot
Too Cold
Just Right
Porridge Temperature Monitor
22© InfoTrends www.infotrends.com
Recommendations
• Anticipate more disruption and “clarification”
‒ Value shifts and channel consolidation
• Determine your strategic path – and push way out
‒ Operations and innovation
• Be focused, be open
‒ Deep expertise and natural extensions
• Build recurring revenue streams
‒ Service & supplies, “services”, relationships
• Continually improve productivity
‒ Your operations – Sales, Service
‒ Your customers’ work processes