Glenn Laverty, president and CEO of Ricoh Canada, said his company will be advancing its channel direction but will still sell predominantly direct.
Ricoh Canada has recognized that managed document services has become a global trend and that customers are looking for a single trusted advisor who can do more and build print solutions around a mobile strategy. Laverty said that this is a “huge change” in the market and that Ricoh will be working on broadening its capabilities from a delivery standpoint.
Recently, Ricoh committed $300 million towards expanding its managed document services offering, which will include a solution for mobile print services. In Canada, that investment will be in people who have expertise in this area and to shore up technical services. Laverty said that he expects to have close to 500 people working in this division for Ricoh Canada.
With that Laverty is attempting to broaden its channel direction. He admitted that Ricoh Canada has a “heavily-laden direct business and that strategy would continue, but he does want to boost the dealer channel currently in place. “I am looking at how to deploy more relationships with Direct Market Resellers and VARs who are partners and alliance partners. The one thing that has been going on is Ricoh is evolving to be an organization that is very much open to partnerships that are strategic and general,” he said.
CDN interviewed Laverty about its channel direction and also about its standing on the National Master Standing Offer list. The following is an edited transcript.
CDN: How are things on the home base in Japan?
Glenn Laverty: The fact is we’re in a similar situation with a lot of other big manufacturers. We have a number of facilities in North-Eastern Japan and we’re in daily communications with them. So far, so good. Some employees have not been reached and we hope they’re in shelters and there are no casualties. Our factories have some minor impact and we’re still assessing the damage. We expect there will be a productivity impact for another two to three months. One of the big tasks is much as we think the world is a small place is when the power goes down you have a view of how small world is; and its really a world away.
CDN: About three years ago Ricoh Canada make a big splash by getting into the national master standing offer for monochrome standalone printers bumping off incumbents such as HP. But in the latest NMSO list you are out. How much of a step back is that?
G.L.: We enjoyed being on it and we will continue to look to be on it in the future. The reality of it is that there is still opportunity for us in government and we may seek any number of situations. The standing offer is a natural tool used by the government and it did not stop our competitors from selling to the government when they weren’t on it. Those things come up and it’s not a question of missing out on an opportunity, but it’s just for now and our commitment to that market and its customers is strong in every respect. We shall be fine.
CDN: Ricoh recently announced that its investing about $300 million to expand its managed document services offerings, included in that is mobile printing services. Why the change in direction?
G.L.: We’re recognized across the globe and as an organization we look to separate the weak from the chafe and when you look at that market you say who can come in and do more for me. Be that trusted advisor and execute the strategy? There is huge change coming and where will people be working is an issue with mobility. This is a common issue in Canada and throughout North America to be in a home moving to number of offices in a framework of organizations. We are broadening our capabilities from a delivery standpoint with our services. MSA for us reps a broad offering and I would say the broadest is in Canada. Part of the $300 million will be invested in Canada on people who have the expertise and can shore up technology and services. We’ll have close to 500 people under that umbrella.
CDN: Do you see your channel direction changing in any way because of this?
G.L.: We’re looking to broaden. We are a fairly heavily laden direct company, but we have a dealer channel and we want to look into how to improve our relationships with Direct Market Resellers and VARs who are partners and alliance partners of ours. The one thing that has been going on is evolving to be an organization that is very much open to partnerships that are strategic and general. We do want to partner and to be part of an overall delivery mechanism to customers.
CDN: How do you see the managed print services market shaking out in Canada? There seems to be a lot of mergers and acquisitions in the U.S. But not so much in Canada. Is that coming?
G.L.: I don’t see that happening. The size of most of the organizations in Canada preclude them from doing so. There is no question we look at a few and maybe one or two other players. Most from the traditional side of the business are in a position to make a sizable acquisition and some of that we have seen will have global elements to it whereby the size of those organizations have impact in Canada, but so far that’s not been the case.
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