By West McDonald, Vice President of Business Development, Print Audit
On December 17, 1903, the Wright brothers did something that most people said was impossible. They took a myriad of wood, cloth, and cables and became the first human beings to take flight. 66 years later Neil Armstrong and Buzz Aldrin set foot on the moon. Today we have a myriad of satellites and rovers giving us a historically unparalleled understanding of the planets in our outer solar system. Isn’t it incredible just what we can accomplish once the spark of innovation is lit?
Although not quite as exciting as interplanetary exploration, the world of office imaging has certainly seen it’s share of notable innovation. Since the introduction of the first plain paper copier, the Xerox 914 in 1959, we have grown the Imaging & Print industry to be a thriving $650 billion dollar a year power house. The laser printer, inkjets, production and digital printing are all common place and have helped us to share information in a way that was unheard of before the first copied page.
The trouble (and wonder) of innovation is that once it starts it never stops. Another giant leap forward is upon us, only this time it is entirely digital. Some things that people used to print are now accessed on a cacophony of HD digital screens. Tablets & smart phones are ever present and changing the way people share and distribute information. Documents are now quite “portable” without ever having to hit the “print” or “copy” buttons. Many industry analysts think that we are now in the age of flat or declining page growth. I have heard estimates of 2% to 5% volume decline per user for at least the next 5 years. And there are some that would say we could see even larger volume decreases as Millennials take over the modern office space.
At Print Audit we’ve been paying attention to this trend of digital innovation because we think it brings with it a massive opportunity. We’ve noticed a good deal of convergence starting to happen with our industry and those of Managed Services and Managed IT services. And in the Managed Services world they are undergoing their own transformation by billing for services in a “Seat Based” or “Per Seat” model. Also known as “Value Based Billing”, there is a dramatic shift in focus away from time and materials style invoicing in favor of more subscription based models. Something big is going on here, and we know that getting in early is where we make the money.
Innovation starts with something simple. Print Audit has developed an E-guide that compiles and explores the concept of Seat Based Billing (SBB) for Managed Print. As pages per user decline we think it might be good to at least explore a new way to contract for imaging and print that better aligns with these changes. We know that customers are looking for new ways to engage with the us as the digital office evolves and that we may need to examine what and how we are trying to sell to them. With the Managed Services and Managed Print sectors set on a collision course it may be prudent to, at very least, be thinking of some innovative new ways to profit and prosper from all this innovation.
The E-book on Seat Based Billing (SBB) for Managed Print is a humble start. We hope it inspires some strong conversation and earnest debate. We hope it helps you to understand that in the world of office imaging and print there is still room for innovation and growth even in the face of declining pages. And for those brave souls willing to lead the charge we hope that this guide helps you to get ahead of the pack as you boldly chart the future course of Managed Print.
One small step by all of us can lead to a giant leap forward for the industry as a whole. We look forward to your comments and discussions around Seat Based Billing for Managed Print, no matter which side of the fence you sit.
Click here to download the free E-book!