Newport Beach Dealer Conference Conveys Progressive Strategic Vision and Limitless Opportunities
Above: The Konica Minolta executive “dream team” participates in a Q&A during the General Session.
A day and a half. That’s all it took for Konica Minolta Business Solutions U.S.A. (KMBS) to share its vision with dealers at its most recent dealer meeting, March 3″“4, in Newport Beach, California. We can’t argue with a conference that’s compact and concise but still does an excellent job of laying out the company’s strategic vision.
Konica Minolta’s vision encompassed some of the same old, same old that drove dealers to Konica Minolta in the first place, along with an emphasis on visionary new products and solutions such as the WEBJet, Workplace Hub, Mobotix security solutions, and other technologies with the potential to drive future business opportunities within the channel””at least for the more progressive dealers. Incidentally, when I reference same old, same old, it’s not a knock, but rather a nod to the company’s legacy as a digital imaging pioneer. And it’s safe to say that the company is not abandoning that legacy.
Overall, this was a solid event, packed with a wealth of information and educational opportunities. Looking back on those 36 hours in Newport Beach, here are what I consider the biggest takeaways from this year’s event.
Masterful Time Management. One of the appealing aspects of this event was that the opening day General Session was scheduled for two hours and 45 minutes. It actually ran about 30 minutes longer than that, but who’s complaining? After that, it was time for dinner and entertainment. And who doesn’t love a good party? Konica Minolta’s team certainly understands this and as has historically been the case, they threw a good one both evenings. They also had the foresight to bundle their awards presentations during the opening night dinner, further economizing on time. The second day was devoted to breakout sessions and the product showcase. More on those later.
Facts and figures. Meet a company that isn’t shy about certifying its numbers. KMBS President and CEO Rick Taylor presented the KMI Global companies’ results for April through December 2018. Those companies grew 4% during this time period. Operating profit was up 74%, driven by revenue growth, operational efficiencies, increased color sales, and increased IT sales. In the U.S., revenue growth was up 4%, office MFP sales up 2%, production print up 36%, dealer solutions revenue (software) up 10%, and total print volume up 7.2% year-over-year. Konica Minolta’s profit in the U.S. was up 16%. Taylor reported the company is still growing revenue in the dealer channel and that more than 50% of its units are sold through the dealer channel, making dealers the biggest contributor to unit sales in the U.S.
Learn from direct. Taylor also noted that KMBS has experienced a 16% increase in profit in the direct channel through February 2019. The initiatives that have spurred this growth are some of the same ones KMBS is asking its independent dealers to implement. Those encompass bringing on personnel with new skill sets, changing compensation plans, and investing in managed services, IT services, security, voice, and managed print. The point, as Taylor emphasized, is wrapping services around the core business. “I’m positive this will make a big impact on your customers and businesses,” he said.
Doubling down on acquisitions to support the business. Since its last dealer meeting, Konica Minolta has acquired five new companies, including Macprofessionals, ThoughtTrace, TechLine Communications, VeBridge Holdings, and MWA. These acquisitions have strengthened capabilities in managed IT and ECM, as well as expanded its geographic footprint. The acquisition of MWA and the FORZA ERP will also be key in helping dealers prepare for the next phase of growth, according to Taylor.
Making a case. One of the more effective elements of the General Session was the participation of dealers in the audience who shared their success stories from leveraging All Covered to ramping up their managed IT business, to selling VoIP, to industrial print. The most surprising participant was Mary Ellen Franz, managing partner of Imagine Technology Group, who is not a Konica Minolta dealer, touting the benefits of MWA. You don’t see that happen…ever!
The “Dream Team.” The superhero theme running throughout the General Session may have been a cliché, but that didn’t diminish the message KMBS was sending to attendees about the investments it has made in expanding its executive team to drive various segments of the business. Taylor specifically singled out Vicky Ringwood, senior vice president, human resources; Mark Simons, senior vice president, strategic alliances; and Karl Byrne, director, technology integration, during this segment of the program. When was the last time you attended a dealer meeting where the SVP of human resources was sitting on the stage being interviewed by the company’s president and CEO? That interview fit squarely into a conversation about dealer concerns and insights for capturing the attention of younger talent in a digital world.
Beyond the “Dream Team.” Another interesting announcement was that the company would be hiring digital workplace consultants to help drive its technology and solutions through the dealer channel. At least we found it interesting. Based on the responses to our question during the press briefing, the exact job description for these individuals is still a work in progress. That said, this is a wise move to provide dealers with additional resources who are knowledgeable about the technology, the evolving workplace, and how to best position the company’s offerings in the market.
Plenty of products. While the past two KMBS dealer conferences were light on product, the tables were turned this year and attendees had an opportunity to see some of the hottest products in the company’s portfolio. There were demos of the new iSeries MFPs, label printers, MGI devices, UV wide-format printers, and the WEBJet. The various WorkPlace Hub configurations included one with an MFP footprint (because dealers still love their MFPs) and another as part of a security system with the Mobotix security cameras. Considering the size of some of the production print and industrial print products, KMBS spared no expense in bringing in these devices to win over dealers who are still engaged in an internal debate about investing in production and industrial print.
Workplace Hub is here and now. We’ve written so much about Workplace Hub since we attended its rollout in Berlin, Germany, three years ago, one might think dealers have been selling the device like hotcakes since then. But not so fast. It’s taken some time to get the product ready for prime time and to the dealer channel. That’s not to mention, educating dealers on exactly what it is and what it does. The exhibit area showcased Workplace Hub in action, which should be helpful in erasing any doubts as to the viability of the technology. Any way you cut it, Workplace Hub is a fascinating concept and has the potential to be a “disruptive” technology. That’s not to mention everyone is sold on it or doesn’t have concerns. One dealer expressed his concern about having a server (i.e., Workplace Hub) sitting in the center of the office where anyone could walk in and easily roll it out or pick it up and walk away with it.
So many sessions, so little time. More than 20 different breakout sessions were scheduled on the second day of the conference. I attended two sessions, “Protect the Base! Developing a High-Speed Inkjet Strategy” and “Artificial Intelligence Here and Now.” I would have liked to have attended a session on one of the biggest dealer concerns in our annual survey, “Talent: How to Attract, Engage and Retain It in an Evolving World” presented by Vicky Ringwood, KMBS’ new SVP, human resources, but that conflicted with the inkjet session. The sessions were designed to answer Konica Minolta’s most pressing questions, including whether there is money to be made in inkjet and production and industrial print, as well as security and with Workplace Hub. While the General Session on Monday afternoon was designed to pique dealers’ interest in these opportunities, the breakout sessions offered deeper dives into how dealers can sell and make money with the company’s products and solutions, as well as offer insights into other issues critical to running a business.
Keeping it simple. Whether it’s bolstering its executive team, hiring digital workplace consultants, revamping its programs, making IT simpler for dealers and customers, or enhancing its technology, the one message Taylor wanted dealers to walk away with from this conference is that KMBS is looking to make things simpler for them. “We’re your partner, we want to do it together,” he emphasized, while adding the company is dedicated to making it simpler for customers to buy from the dealer and making it simpler for dealers to transact business with KMBS. And FORZA will be a big part of that latter effort.
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