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Q & A With Scott Slack From Cranel Imaging and Versitec
July 16, 2009
We see a significant opportunity for traditional ECM resellers to expand their service businesses beyond standard scanner maintenance contracts. For every scanner a VAR installs at an end user location, a significant number of peripheral devices are also installed. Multifunctional peripherals, printers, PCs, servers, storage, etc. each have maintenance contract requirements where solid contract management practices can net substantial profits for resellers while providing end users with a much improved contract management experience.
1. In today’s slow economy, how is Cranel working to support its VAR partners?
We made many key sales resource investments in local territories across the nation in 2008 prior to the economic down turn. These investments were made to allow a much stronger focus on the development of business locally with our VAR partners. We now have the country divided into 21 districts, each with a district sales manager in market, backed by a set of inside sales specialists for product, new service, renewal service, and parts. With this breadth of sales resources available to our VAR partners, we have dramatically improved business communications and overall relationships. Our fundamental understanding of each VAR’s unique business model, what’s important to them, and how they prefer to work with a true VAR, is better than it has ever been. With this improved understanding, we are able to better identify joint business opportunities and help VARs position both product and services within their business model. Our premium service offerings are of keen interest to resellers that are serious about growing their service annuity business. The reseller community is also utilizing our financial alternatives, which have been in place for many years, in a more proactive manner more than ever.
2. How can having a distribution partner help a VAR when the market slows down such as it has over the past six months?
In these difficult economic times, VARs need a distributor to be more than a phone-based fulfillment specialist. They should expect more. VARs need a true partner that understands their specific business challenges and one that works hard to complement their business model appropriately. While VARs share many similarities, each is truly unique in terms of its go-to-market approach. Some are vertical specialists with a heavy software focus. Others are regional players with a more horizontal market approach. Some focus heavily on service bureau work. Some offer a very focused set of technologies. Others carry broader portfolios. At Cranel, we pride ourselves in understanding the VAR’s business and help to position appropriate technologies, service, and business programs that will help to make the reseller more profitable and more competitive. We serve as an extension to the VARs we support.
3. Are there any technology trends in the ECM space that you have identified and are working with your VARs to explore?
The convergence of MFP-based capture technology with both production and distributed scanners continues to evolve. Our resellers are getting more and more involved in situations where existing MFPs are being used for smaller, departmental scanning requirements. Technologies from companies like eCopy and NSi are being considered regularly to enable the integration of these devices into imaging-based applications. Network-based scanners are also included in this convergence. With the technologies converging, so are the traditional providers in these markets. Traditional ECM VARs are now finding themselves competing with dealer resellers that have typically focused their efforts in the office products arena.
4. Are there any mandates (such as the planned federal EMR legislation) that you expect to impact the ECM space in the next 12-18 months?
The EMR legislation is probably the single largest mandate and related opportunity impacting resellers in the ECM space. Most of the medical resellers we work with are tracking this legislation closely and responding in a very proactive manner to the market. Our involvement tends to be oriented more toward complementing their efforts, ensuring any revenue opportunity is maximized for the VAR throughout the life of the equipment.
5. Where do you see the next area of growth within the ECM market?
We see a significant opportunity for traditional ECM resellers to expand their service businesses beyond standard scanner maintenance contracts. For every scanner a VAR installs at an end user location, a significant number of peripheral devices are also installed. Multifunctional peripherals, printers, PCs, servers, storage, etc. each have maintenance contract requirements where solid contract management practices can net substantial profits for resellers while providing end users with a much improved contract management experience. Cranel has enhanced its service portfolio to include a much broader range of equipment we can write service contracts on, allowing VARs to broaden their business and improve their control within accounts. We are having success working jointly with resellers to introduce these expanded service offerings.
Author: Scott Slack
Source: BusinessSolutions
Category: Service Management