1. Delivering the Value of Color Malcolm Hancock Principal Analyst Digital Documents and Imaging Group

2. Agenda Color in the office –Buying experiences Technology Battle — Laser vs. inkjet –Cost issues Product Convergence –How does multifunction fit in Recommendations

3. A Management Blind Spot Few know exactly what equipment they have Fewer still monitor supplies or post-acquisition spending Few know what users are operating what equipment and how they are using it Most pay only intermittent attention to output fleets Organizational responsibility is sometimes splintered Fairly low level of concern — not perceived as a serious problem or an opportunity to cut cost

4. Print Technology Use by End-User Category Purchasing

5. Print Technology Use by End-User Category The Problem Workgroup Personal Purchasing — The Wrong Products

6. Color Printing: The Promise/The Problem The Promise Improve communication via enhanced comprehension and persuasion The Problem Difficult to document the productivity benefits of color

7. PaperElectronic Benefit = Value - Cost Value –Readability of document –Accuracy of message –Response to document Cost –Equipment –Toner –Ink –Paper –Downtime –Management –Creation

8. Units (M) Western Europe Is Color Replacing Monochrome in the Office?

9. If you could make one improvement to color printers, what would it be? Faster, Faster, Faster — A Perennial Problem 0% 5% 10% 15% 20% 25% Increase Speed No Improvement Lower Cost of Consumable Supplies Better Quality Lower Hardware Cost Reliability Improve Paper Handling Lower Noise Ease of Use

10. What Is Driving Color Use? (2 Years Ago)

11. What Is Driving Color Use? (Now)

12. Users Moving Into Laser Color — Was Your Most Recently Acquired Printer …

13. Color Laser Takes the Office What Is the Technology of Your Most Recently Acquired Printer?

14. Cost of Ownership Is Important Cost Factors Considered When Purchasing

15. Percentage of Respondents Sharing Color Printers Is Preferred In a Small Workgroup Would You Prefer….

16. Units (M) Western Europe Is Color Replacing Monochrome in the Office?

17. Units (K) Western Europe 4-Pass Single Pass Color Laser for Different Usage Patterns

18. Desktop Color Printers Inexpensive to buy Expensive to run Color is often used to print even draft documents Coming in under the radar of IT departments Put Desktop Printers in Their Place

19. Rising Speeds, Falling Costs

20. Technology Battle — Ink or Laser Small workgroups that need affordable color output should consider business color inkjet printers as a companion to monochrome laser printers Before selecting a color printer, users should know how many color pages they will print each month and calculate the running cost Specialists in device consolidation can help rationalize output from printers, copiers and facsimiles, saving money while providing insight to affordable small-workgroup color printing Consolidation of personal inkjet printers to a small workgroup's business inkjet printer that is shared on the network can provide lower total cost of ownership with improved cost controls

21. Where Does Multifunctionality Fit? Copier vendors rapidly transition to digital technology –All copiers will soon be MFP-capable Inkjet MFPs strike a blow to print-only products –Massive price erosion makes MFPs affordable –Performance improvements –Quality improvements –Ease of use MFPs displace sales of stand-alone printers –Flatbed displaces sheetfed

22. Action Item: Help your customers to understand their needs to achieve the right mix of equipment — this will maximize their savings and productivity benefits. Benefits of MFPs Productivity Fewer mouths to feed (supplies, service and maintenance) Fewer assets to acquire and track Space and power savings Shared finishing and paper supplies Moves documents faster and at lower cost

23. Copier MFPs reduce fleet sizes and operating costs Network Printers Multifunction Systems Copy Print Fax Scan Copiers Printers Fax Machines Scanners Migrating from analog to digital Large fleets that are aging Often sit idle most of the day Often an ignored item Are MFPs the Answer?

24. Is Multifunction Having an Impact in the Office?

25. Millions of Units Explosive Growth for Inkjet MFPs

26. Are Digital Copiers Connected?

27. Comparison Personal vs. Network MFP

28. Technology Battle — Ink, Laser, Print, Copy or MFP Small workgroups that need affordable color output should consider business color inkjet printers as a companion to monochrome laser printers or workgroup and departmental solutions Before selecting a color printer, users should know how many color pages they will print each month and calculate the running cost Specialists in device consolidation can help rationalize output from printers, copiers and facsimiles, saving money while providing insight to affordable small- workgroup color printing

29. Where Does Multifunctionality Fit? Copiers are rapidly transitioning to digital color –All copiers will soon be multifunction-capable, and many will bring affordable color Inkjet multifunction strikes a blow to print-only products –Massive price erosion makes low-end multifunction affordable –Huge performance and quality improvements –Ease of use Workgroup multifunction starting to displace sales of stand-alone printers

30. Leverage MFP Technology Technology Get Ahead of the Color Tidal Wave Eliminate Some Personal Printers Use Assessments for Guidance Use Assessments for Guidance Use Selective Outsourcing to Buy Pages to Buy Pages Use Selective Outsourcing to Buy Pages to Buy Pages Eliminate Aging Equipment Color Fits Well With Fleet Management Initiatives

31. Recommendations Incorporate workgroup print function –Manageability –Network support –Productivity Incorporate departmental copy function –Paper handling (input – output – A3) –Departmental productivity Incorporate consolidation functions –Fax Incorporate new productivity features –Scan to e-mail, workflow

32. Recommendations Think about value –A document’s value should exceed its cost Consolidation of resources –Make the right technology choice Educate users –To think about the types of document creation Color or monochrome Printed or electronic

33. Delivering the Value of Color Malcolm Hancock Principal Analyst Digital Documents and Imaging Group