Monday, February 9, 2009

Ricoh + Ikon + IBM, hmm. . . .

Anyone else seeing a pattern out there?
I wonder how close their SG&A is to the Wal-Mart standard of 16+%. Do they give dividends? Notice I don't give a hoot about the stock price.

Maybe they will get in touch so I can lay out the steps to reinvent in the textbook industry? I will, of course, charge them whatever the traffic will bear.

Or . . . if anyone wants me to post it here. Comment as anon. Say "more." And I'll do a series of posts describing what I think will work, on this blog, for free!

read the PR release

"Ricoh Completes Acquisition of IKON Office Solutions

WEST CALDWELL, N.J., Oct. 31 /PRNewswire-FirstCall/ -- Ricoh Company, Ltd. (TSE: 7752, 'RICOH' President & CEO: Shiro Kondo) today announced that it has completed its previously announced $1.6 billion acquisition of IKON Office Solutions, Inc. through RICOH's wholly owned U.S. distribution subsidiary, Ricoh Americas Corporation. As a result of the merger, IKON is now a wholly owned subsidiary of Ricoh Americas Corporation."

"Content Specific Workbooks" are the leading edge to reinvent textbooks

Ok, so don't call it textbooks. We call it "content specific on demand workbooks." The real name should be space/time specific workbooks, but no one will know what that means.

At any rate, "supplementary materials" and "standards based workbooks" usually falls below the radar of the Textbook Oligopoly.

But a rose still smells, no matter what name you give it.

It's not a matter of inventing it. It's a matter of getting on a train that is starting to get ready to move out of the station. Whoever jumps aboard first gets the window seats.

Textbooks, anyone?

read @Innovation in College Media:
"This question focuses on the sharing of content and data among colleges locally and nationwide. For example, if textbook prices are outrageous at your school, should you be able to go to a database maintained by other college newspapers and see what kinds of stats they have on textbook prices?

The New York Times and ProPublica are looking into doing something similar through DocumentCloud, which would be a place for reporters to store documents they gather during reporting for other newsrooms to use."

HP seems to be getting closer to MFP to Internet

read at it-direcotr.com
"HP recently invited European analysts for its first Halo telepresence briefing, a departure from its usual format and demonstrating the use of its own technology which is now installed at 30 offices across HP, aimed at reducing travel and the associated financial and environmental costs. Along with Halo, which is part of its Imaging and Printing Group (IPG) business, HP discussed its strategy for its consumer, SMB and enterprise markets and its goal of capturing colour or 'value' pages across all segments, whilst minimising the environmental impact of printing."
And some cut and paste:
. . . Meanwhile, to capture incremental pages in the highly mobile and connected consumer market, HP has developed software such as iPrint and Cloud Print. iPrint is a freely downloadable software application to print photos from an Apple iPhone or iPod Touch on most HP networked WiFi printers

. . .Its ambitious plans are to capture a 51% market share by expanding its MFP product portfolio.
It's that "Google it. Find it. Print it. Anywhere." thing again.
Inkjet and Web Solutions Business
LaserJet and Enterprise Solutions Business
Graphic Solutions Business

Each group has profit and loss responsibility for hardware, supplies, services and software solutions.
It would probably be worth considering giving our divisions separate Profit and Loss responsibility. It will help us to figure out who's making money and who isn't. Then instead of having long meetings to figure out who to fire, we can fire, sell, or spin off the folks who aren't adding to the pie.

Then we can focus "like a laser beam" on our core strengths and network with SAP or IBM or Kodak or Ricoh or one of our own spinoffs or whoever comes up with the latest invention or open source solution on the net.
HP has $4.2 billion under MPS contract worldwide, and MPS revenue grew by 70% in 2008 compared to 2007.
Meanwhile on June 2, 2008 2:37 PM EDT
Hewlett-Packard (NYSE: HPQ) today announced that it has signed a multimillion dollar agreement with Consolidated Graphics Inc. (NYSE: CGX) for the installation of as many as 36 HP Indigo digital presses - including multiple HP Indigo 7000 Digital Presses - at facilities in the United States and the Czech Republic this year.
Textbooks, anyone?

Let's face the fact that in the next couple of years a wave of creative destruction is going to sweep through the education business. Wouldn't it be a lot more fun to surf the wave, instead of having to worry about how any reorganization is going to hurt our legacy business? Of course, it's a really hard decision to implement. But that's why C level people get the big bucks.

When you get a chance, google NIMAS.
The NIMAS provision was included in the revised Individuals with Disabilities Education Act (IDEA) 2004. In this legislation a standard NIMAS file format was created for the production of textbooks for the blind and print-disabled students. The result is a common file that will be provided from the publisher to a repository of NIMAS titles stored at the National Instructional Materials Accessibility Center (NIMAC). The NIMAC will then make the files available to both State and Local Education Agencies who will then have them converted into the desired accessible formats such as Braille, large print and digital talking books
So how about we partner with someone in the cottage industry of NIMAS converters and produce customized personalized workbooks for every kid?

Then our network of printers can print them, we get the clicks and everyone buys a little time until the commercial printing industry figures out where it lives in a Google-Mart economy.

RICOH JOINS SAP PRINTER VENDOR PROGRAM | Ricoh Global

read the PR release at Ricoh Global:
"Tokyo – February 2, 2009 - Ricoh Company, Ltd (President & CEO: Shiro Kondo) today announced that it will participate in the SAP Printer Vendor program as a gold -level member.

Through the SAP Printer Vendor program, SAP AG is collaborating with Ricoh and other leading printer manufacturers to develop and deliver high-quality printing solutions that will lead to broader support of printer models in SAP business software applications. The program offers participating vendors, now including Ricoh, access to specific SAP development environments necessary to optimize support for their devices when operating in SAP solution-based environments."
the boilerplate at the bottom of the release:
About Ricoh
A global leader in digital office solutions, Ricoh (www.ricoh.com) creates new value at the interface of people and information, offering a broad range of digital, networked products, including MFPs, printers, fax machines, semiconductor related products and digital cameras. With 83,400 employees worldwide, and $22 billion in revenue, Ricoh is also one of the world’s leading environmentalist companies, committed to sustainable business everywhere.

Note: they are a "global leader in digital office solutions". And they sell " "networked products " In Europe they are hooked into SAP and the United States they are partners with IBM.

Anybody else see a pattern?

I have a theory that businesses in Island nations like the UK and Japan have a much easier time learning how to network so they don't stagnate. Their own markets are just to small to grow. Wonder what Ricoh is doing in India or the Middle East?

Do you think Ricoh gets it that MFP's are the links on the ground between Paper and the Internet? Textbooks, anyone? Reinventing Education?

If it not because it's a way to grow, it might turn out to be a good way to protect our network.

Why is the stock price the way to make business decisions?

from Printing Industry News, Commentary & Analysis, Research and Consulting at WhatTheyThink:

"By: Gail Nickel-Kailing February 9th, 2009 --
The last two years have been a series of ups and downs for Cenveo – mostly downs. 2007 started off with the company’s shares well over $20 each, heading into $25 plus. Even as late as August 2008, more than 18 months later, when the stock price was $9.56, CEO Robert Burton Sr. was still saying he was looking for a stock price of $30
. . . As economic conditions continued to worsen, companies across all industries had to take steps to keep revenues stable, cut costs, and bolster share prices. The last week of September, insider stock purchases were fast and furious.
Further on, Gail quotes Dr Joe Webb,
In November 2007, he wrote “stock buybacks are disappointing, or worse…”

One of the topics that has drawn negative comments in my direction are my concerns about stock buybacks and how they are not in the best interests of shareholders in the long run. This form of price manipulation increases the earnings per share of companies, giving the illusion of improved financial performance to those who might not have the wisdom or ability to dig deeper into the history of the numbers of shares offered.

It also implies that the company has exhausted its compelling ideas about where to better invest excess cash. If there is so much cash, giving it to shareholders in the form of a special dividend is clear and less open to the fluctuations of the marketplace. In most cases, holding onto the cash for potential acquisitions, future investments in research and development in areas not yet apparent, or to withstand market downturns might be a much better use of funds. Or here's a new idea: increase the regular divided, or establish one, which will inspire long-term investor confidence and better support the stock.

It may placate Wall Street "analysts." But we've seen that most of them are too busy to get it right anyway. Why do we keep trying?

How about if executive comp were tied to dividends instead of stock price? It might get all our incentives aligned.

Sunday, February 8, 2009

The Competition: Ricoh Eco - Why It Matters

viedw the videos at Print4Pay Hotel
"Saturday, February 7, 2009
Ricoh Eco - Why It Matters
This is the first video I had seen of the Ricoh ECO billboard in Times Square, NY. Seems like Ricoh wants to be known as the ECO MFP company of the world. All in all a pretty interesting video:"
Whenever I see Ricoh I think Infoprint. Ricoh + IBM. I'm betting that Ricoh understand that MFPs are the OnRamp to the Cloud.

If MFP's are the On-Ramp to the Cloud . . .

read @ ITWeb.co.za :
Bytes Document Solutions launches cost-effective Xerox MFPs, printer range:
"Johannesburg, 6 February 2009 ] - Bytes Document Solutions, Xerox distributor to 24 African countries, has launched two new low-cost multifunction printers (MFPs) and one laser printer into the South African market.

The new offering includes the Xerox Phaser 3100MFP multifunction printer and the Xerox Phaser 3635MFP multifunction printer, devices that print, copy, scan and fax and the Phaser 3250 monochrome laser printer."

Consider:

1. Bytes Document Solutions has feet on the ground in 24 African countries with great MFP's. (thanks, again engineers)

2. Everyone in Africa is going to need textbook type things because education is so top of the agenda

3. Whatever government money or foreign aid is going to be spent on health and eduction.

4. Doing eduction is being on the side of the angels.

5. MFP's can link Print to the Cloud.

6. Printing content from the Cloud is our sweet spot.

6. More textbook like product means more clicks.

Q: Why don't we catalyze the textbook like business over there and not even have to get into a fight with the American oligopoly, here? . . . until we get it just right over there.

A: ??


Oce has the same "organizing busyness" stratgey

Oce Business Services Introduces CaseData(TM) ASP Document Review System:
"Comprehensive System Provides Advanced Features; Streamlines Identifying and Organizing Case-Relevant Data

NEW YORK, Jan. 13 /PRNewswire/ -- Oce Business Services, Inc., a leader in document process management and electronic discovery, today introduced CaseData(TM), a rebranded and significantly enhanced version of the company's current dataDeliver(TM) ASP document review system."
So, if you were at C level would you call Adobe or whoever the leading players are or would you call Xerox or Oce?

I thought it was the End of Print...

read @ printweek.com
"CDS completes major investment programme at Aylesbury site

Adam Hooker, printweek.com, 06 February 2009

Print and mailing giant Corporate Document Services (CDS) has rounded off a major investment programme at its flagship Aylesbury site with the purchase of a new Morgana DigiCoater.

The Leeds-headquartered 25m-turnover company has added the DigiCoater to two new Oce 6250 Varioprints, a Horizon BQ270 perfect binder and a new EBA programmable guillotine, which were purchased in 2008."

Let's catalyze the reinvention of the textbook business

read at democratandchronicle.com
"But these are the resources our schools do have: My fourth-grader learns hands-on science from professional scientists through the Xerox Science Consulting program. He takes part in literature circles run by volunteers from St. Paul's Episcopal Church, and is enrolled in accelerated math and advanced English/language arts classes."
We are already investing some of our very precious increasingly scarce resources in the public schools in Rochester. That's a very good thing. But while we are doing good, let's help our Printers do well.

Consider, everybody -teachers, admins, school boards, students and parents - agree that textbooks are broken. They are too slow, expensive and their one size fits all doesn't in fact fit anyone. There is little doubt, that the Xerox Science Consulting program, which I just found out about from the web, has better, more up to date content than any textbook.

Here's the use case:
Science teacher X is planning a lesson on Y science topic next week. It's been really hard to keep the class on track because that's always the way it is in a real life classroom.

She goes to a website. The content is vetted by our Science Consulting Group, who are presently doing the work anyway.

At the website, she chooses the content that is right for her classes, next Monday.

One of our local Print providers in Rochester prints and delivers 30 booklets - say 16 pages - for the class in a day or two. If the content is aligned with standards and a quiz is included, why wouldn't anyone prefer this to a heavy out of date textbook that you can't write in?

Here's the secret sauce and the next big thing!
The students could be required to highlight - in the physical magazine - the parts they don't understand or find particularly interesting. If a quiz is included, the booklets are collected at the end of the unit. That gives the teacher great guidance on which student gets it and which students don't. It is guidance that can be taken home and mulled over. As opposed to a meaningless test score that can be used for sorting, but is meaningless for feedback to teach.

Given the social capital on which we have already spent a gezillion dollars over many years, why not help our vendors do pretty well, while we are doing very good.

My bet is that much of the social capital that is being destroyed by short sighted decisions to placate the idiots on Wall Street by "cutting staff," could be repurposed in the service of creating even more social capital where you live, in Rochester and the Mid State region that needs lots of investment

Textbooks is an oligopoly market. As such, they command silly legacy profits. They have the same problem we do, legacy overhead that is no longer necessary. As we well know it's a very tough problem. The reason they can't do this is the same reason we can't make fast decisions. Most everyone knows what to do. There are no new ideas. But protecting a legacy overhead is a huge drain that can sooner or later destroy any company.

It's the same problem for the textbook publishers. But that's there problem. We have our problems.

Even as some textbook content drifts to the next Kindle, the teacher in the K-12 classroom needs Print. Mostly for the granular stable information it gives the teacher to better craft their individualized approach for each student.

Meanwhile, as we continue the painful process of eliminating overhead that is no longer producing value, we can help people who no longer fit in our business to monetize their experience in a way that will work for them.

To be clear, this is NOT about setting up even one more overhead item. It is about being the catalyst, to create a new, huge market for digital printing.

If it works in a pilot in Rochester, why wouldn't every school district in the United States do it?
Why wouldn't most of our printers sell it on the ground? If we can get the incentives for referrals to Global Imaging think of the on the ground sales force at $0 extra expense. Given our deep penetration in the education systems, this seems like a no brainer.

Perhaps PARC can become truly income generating without destroying their extraordinary social value by being the "go to" place for appropriate content for tech, engineering and science for every school district in America.

If the plan is to expand in India and the Middle East, why wouldn't we do this? If the plan is to expand in China with our partnership with Fuji, why wouldn't we do that?

No more firing.
Just taking responsibility for the necessary transitions.
It will do wonders for morale, on the day the program is announced.

For shareholders it means an organically growing market.
More clicks for everyone!

If the Wall Street "analysts" don't like that story, let's just do more and more dividends until the next bubble comes along. The problem is speed of response - timing is not only everything, it is the only thing. But I bet that some of our recent retires could get on this tomorrow.

Plus probably many of them have spouses already teaching. Start this pilot program with them. Do not waste valuable time talking to busy people at the top of the pyramid that are facing the same problems that are facing our top management.

Then all we have to do is host some meetings between them and our smart people.

Hosting meetings is value add. The value creator is making links.
Having meetings is legacy overhead. The value destroyer is wasting time.

Since I'm just a blogger,who doesn't go to meetings, I just can't see the hard part.