Print.IT Reseller - issue 53

01732 759725 MPS 36 margins and better long-term revenue prospects. So, what are businesses looking for from MPS providers? Unsurprisingly service quality comes top, but priorities vary depending on organisation size. Larger SMBs are more likely to value a proactive service to support digital transformation, while security expertise is valued more highly by the smaller SMBs. Security is an opportunity for MPS providers with the expertise and technology to deliver secure print hardware, services and solutions, skills which SMBs typically lack. As line- of-business (LOB) decision-makers become more influential in technology purchasing, channel partners must expand their sphere of influence beyond IT managers. Almost half 45 per cent of larger SMBs say that being a strategic partner to both IT and LOB is a top requirement for a print supplier. For channel organisations, building an MPS business requires careful planning. Moving too fast can impact cash flow, but not moving at all can impact growth and new business. A successful MPS can help build more predictable, recurring revenue streams, augment recurring revenue streams from managed services, and open doors to new customers. Need to build competencies Consequently, channel organisations will need to build competencies beyond their traditional expertise. Remaining focused on a single product or service is not the route to being accepted as a long- term trusted partner. To maximise their potential in the market, and overcome challenges during the transition, channel organisations should consider the following: n Adapt to the changing market. Channel organisations must retool to shift from the outdated reselling model and embrace a new role as trusted and strategic advisors to customers. As businesses turn to the channel for guidance and support in addressing challenges, channel organisations will need to be able to deliver consultative- lad services. This also means tapping into adjacencies such as digitisation and security, which are increasingly a necessary part of the print proposition. n Establish strong vendor relationships. It’s important for channel organisations to establish strong and successful relationships with vendors. They should not only look at the mechanics of an MPS platform or programme, but also evaluate a vendor’s ability to engage and develop the partner relationship. Broad support from vendors for lead generation, PR, content creation and more are all necessary to ensure channel is fully equipped to find and win in MPS. n Specialise by industry or application. The shift to margin-rich services means developing industry specific expertise. Investment should be made in the skills needed to deploy and connect a range of technologies to specific industry sectors. n Focus on selling business outcomes. As digital transformation initiatives become further engrained in businesses, channel organisations will need to position offerings as supporting digitisation and digital workflows with both Line of Business and IT departments. For larger businesses, the channel needs to focus on building skills in selling business outcomes to LOB buyers, while retaining a strong relationship with the IT department. n Partner with other service providers. Partnering with providers that offer complementary skills or products helps develop a broader portfolio and provides accessing to new expertise. This is particularly important for channel organisations that want to position themselves beyond print as more general managed IT service providers. n Monetise. Channel organisations that invest in software development resources to expand their offerings should consider monetising and building IP through custom built applications. Building a portfolio of wrapped around the MPS business can lead to new opportunities. Consider including assessment or consulting services as well as integration services. With MPS adoption still low in some segments, there is an opportunity to develop a phased approach to MPS expansion. Step outside the comfort zone Traditional print channel partners must be willing to step outside their comfort zone to capitalise on the opportunities. Channel MPS programmes are failing to deliver in key areas. Top areas in which vendors are failing to deliver are margin retention, response times, lead generation and vertical market support. Overall, 77 per cent of channel organisations rate margin retention as an important factor in choosing their MPS programme, but just 47 per cent are satisfied with this. 67 per cent rate short response times as important, but only 48 per cent are satisfied. Just 39 per cent are satisfied with lead generation, compared to 55 per cent who rate it as important. 72 per cent rate vertical expertise highly yet only 49 per cent are satisfied. While MPS is viewed as the biggest opportunity today, by 2020, channel partners expect that vertical workflow applications and security solutions will offer the greatest opportunities. Partners believe that vertical market expertise will be key to profitability by 2020. The clear majority (91 per cent) of channel organisations agree that they need to expand their vertical expertise by 2020. To this end 72 per cent plan to expand their product portfolios, 68 per cent plan to offer new software products and 64 per cent are looking to acquire another channel organisation. Rapidly evolving technology landscape The rapidly evolving technology landscape demands that channel organisations move quickly towards a services-led model. With the right strategy and execution, the channel can navigate disruptive market changes and remain relevant and competitive. If a channel MPS provider can successfully reshape one part of its customer’s business, with the right expertise and services, it can expand its influence – particularly as more SMBs look to accelerate digital transformation. www.print2025.com Traditional print channel partners must be willing to step outside their comfort zone to capitalise on the opportunities ...continued Global Market Insight Study The future of print in the digital workplace Executive Summary www.print2025.com Evolution or revolution?