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MPS
dropped a very strong hint (actually
showing an A3 printhead at the
event) that they will be launching
A3 versions of the highly successful
PageWide Office Jet Pro X inkjet
products and, in doing so, disrupt the
market with superior economics, as
they have already done in the
A4 market.
However, HP will not focus solely
on Ink in the business market. They
recognise that some customers
continue to prefer laser and will
therefore go to market with a
balanced portfolio, including the
new Jet Intelligence products, with
their recently announced soft shell
toner technology, which makes it
possible for new laser printers to be
significantly smaller, faster and more
energy efficient. Initial results for both
new technologies are very promising,
and if HP can achieve anything like its
A4 market share in A3, it will grow its
total business very significantly.
More engaging
Next was a clear recognition of the
trend towards contractual sales and
MPS and a strong commitment both
to grow HP’s share and revenue
in this sector and to ‘move up
the stack’ with more value-added
solutions. HP acknowledged that
they were currently only second
in the MPS sector (behind Xerox).
However, they have set themselves
the target to be No. 1 within a
relatively short time-frame. The new
products will help with this, but HP
knows that in addition to selling
large MPS contracts to its direct
Enterprise clients, it needs to engage
its channel partners much more
effectively in selling and delivering
HP MPS solutions to smaller
Enterprise and SMB clients.
The third pocket of growth in
business printing is in the MPS-
related area of document solutions.
Although smaller than the first
two opportunities, this one has
much the fastest growth. To help
maximise the opportunity to increase
sales, HP announced that some
of the Autonomy assets relating to
content management will reside
in HP Inc., rather than in Hewlett
Packard Enterprise. In addition,
HP demonstrated a number of
interesting vertical market workflow
solutions, integrating PC and printer
solutions with content management
and process-related software.
Ten times the size
As if that were not enough, HP
identified two further opportunities
for huge growth, beyond consumer
and office printing. These are:
1
Graphics,
which is ten times
the size of office printing and still
dominated by traditional analogue
printing presses. Here, HP has a big
opportunity to grow market share,
riding on the trend towards digital
print and exploiting its wide array
ink-jet printing across a range of
formats and applications as diverse
as books, packaging and car wraps.
2
3D printing,
where HP has
leveraged PageWide inkjet printing
technology in its new HP Multi Jet
Fusion concept. The products will
be in prototype by 2016 and ready
for launch by 2017. The concept
promises better, faster, stronger,
more cost-effective 3D printing. If
HP can deliver on this, in a market
which is still in its early stages
and highly fragmented, then the
growth potential could be truly
transformative for the company.
IDeAs Comment
Many of the strategies and new
product ideas presented by the new
HP Inc. were very exciting and held
out the prospect of major growth
potential. As ever, with HP, the key
issue will be whether the execution
and delivery can live up to the
dream. For example, in the area of
MPS, HP will need to pay special
attention to ensuring continuity and
support for its channel partners, if it
is to achieve its growth ambition. This
implies real attention to detail – not
just looking at the big picture – and
being willing to seek outside help
where needed.
The third
pocket of
growth in
business
printing is
in the MPS
related
area
of document
solutions
One final observation. While
the restructuring and split into two
companies appears to have released
significant new energy, ideas and
commitment, was it really necessary
to divide the company to achieve
this? Could it have been done within
a more autonomous PPS Division
under an integrated HP structure?
Or is there another logic driving the
split?
Steven Swift is co-founder of IDeAs,
a European network of consultants
advising and helping companies
make the change to a service-based
business model in the Printing and
Imaging industry.
IDeAs works with many of the
leading names in the industry,
including OEMs, channel partners,
software and supplies companies,
and also leads IMPSGA – an alliance
of independent MPS providers
across Europe.
Steven has over 20 years
experience in the Printing and
Imaging industry, and has been
involved with the development of
MPS since its earliest days. He has
seen this from several different
perspectives, including senior roles
at leading manufacturer Ricoh,
consultancy with MPS software
provider NewField IT, and industry
analysis with Photizo Group. Steven’s
most recent experience at IDeAs has
included a lot of work helping the
channel to adapt to the new service-
based business model.
...continued
Baby brother:
HP hinted
it would be
launching an
A3 version of
its Officejet
Pro X business
inkjets
Steven Swift
