ITEX Keynote - Jeff Hayes InfoTrends

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1 © InfoTrends www.infotrends.com © InfoTrends Strategic Paths and Superstars Jeff Hayes Managing Director March 7, 2016

Transcript of ITEX Keynote - Jeff Hayes InfoTrends

1© InfoTrends www.infotrends.com© InfoTrends

Strategic Paths and Superstars

Jeff HayesManaging DirectorMarch 7, 2016

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Agenda

Industry Trends

Falling Stars and Superstars

Strategic Paths

1

2

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4 Recommendations

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September 1, 2015

February 8, 2016

September 1, 2015

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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

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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

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Are You Ready?

23 months

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"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

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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

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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

Email

Website

Regions

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InfoTrends State of the Channel Survey

96 U.S Independent Office Equipment Dealers356 locations across 41 states

$2B in aggregate sales

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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

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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

17© InfoTrends www.infotrends.comSource: Jerry Maguire – TriStar Pictures

Show Me the Money!!

18© InfoTrends www.infotrends.comSource: Glengarry Glen Ross – New Line Cinema

Always Be Closing!

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The Goldilocks Company

Too Hot

Too Cold

Just Right

Porridge Temperature Monitor

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Some of the Superstars

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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

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