NAGASA - The Compass - Summer 2000 Feature Article

Summer 2000
Feature Article

Navigating the Channel

Several exist. Through computers and allied technologies we have access to more information today than ever before. By "information" I mean to include both "data," which are the numbers or facts, and "knowledge," which is the application of our experience and understanding to these numbers and facts in order to make better decisions. Thus, this easier access to greater amounts of information has allowed us to do a better job of controlling our inventories, communicating with customers and suppliers, and keeping up with many day-to-day aspects of our business.

The channel has also considerably broadened the range of products and services offered to end-users. This expansion has been in two directions. First, we’ve been in the vanguard of helping our customers learn about, implement, and optimize a vast array of digital technologies that have and are entering the marketplace. In some ways we should refer to our business as the "digital arts" instead of the "graphic arts!" Second, dealers in today’s marketplace are providing an increasing array of services to customers, beginning with equipment and product service and extending to business functions such as financing and to operations functions such as training and process improvement consulting.

Dealers have also been successful in integrating their business processes with the processes of their business partners, including customers and manufacturers. I see less arms-length relationships and "Us/Them" thinking and more "Us/Us" strategies and efforts to pursue mutually beneficial business relationships. There are, of course, instances when this does not happen, but many successful business leaders have recognized that this is the direction in which companies must head, and those who have not yet done so should we think hard about cooperative efforts with specific trading partners.

I also think it’s important that we document these and other successes and communicate them. We often get tied up with a problem of today and forget to share, as part of our corporate and channel marketing efforts, the tremendous advancements we’ve made in a relatively short period of time.

What are some of the top challenges confronting the channel?

In my opinion customer consolidation is the biggest challenge since this affects many other channel processes – including dealer and manufacturer consolidation trends.

A second challenge is continuing change taking place in all facets of graphic arts technology, including imaging methods, equipment, and supplies. On this point there is good news and not-so-good news: the good news is that technical evolution appears to be taking place at the same pace that we’ve seen over the last few years. However, the pace of this change has been rapid, demanding that dealers and their manufacturer partners spend dollar and people resources in bringing these developments to market successfully, and in an appropriate and thoughtful manner. A good recent example of this phenomenon is Computer-to-Plate (CTP) technology. Following its introduction about four years ago, we’ve seen many important developments take place with the equipment, the software, the plates, and the workflows associated with this technology in parallel with a widening implementation of this process by increasing numbers of end-users. Dealers have been involved with and supported this migration all along.

A third challenge is the development of other channels entering the graphic arts distribution process, and for this reason it’s important that dealers and manufacturers continue to work together to provide high value to our mutual customers.

How do you see these challenges impacting NAGASA?

As the channel adapts, so must NAGASA. This is one reason why I’m exited about the recent Board resolution authorizing the organization to pursue additional activities that can help members successfully make the jump to a "bricks and clicks" business model. It’s also important to recognize that membership is – and will be – affected by consolidation in the channel. Although this trend seems to be slowing, I believe it is far from finished. The key is that as an association we must stay abreast of the industry and through member leadership and input, adjust our programs.

What should/could dealers do to continue their successes and/or address these challenges?

I believe that businesses must be led from the top. The owner, president, and management team must be involved every day in the business. These leaders must be in touch on a regular basis with the voice of their customers, the voice of their employees, and the voice of their suppliers since all three stakeholders have an important role to play in the success of the dealership. On top of this, these leaders must be in tune with technological developments, current and pending, since these changes can have a tremendous impact on the longer-term success of the business.

What role does NAGASA play in supporting these efforts?

Through its publications, conferences, committees, web site, and other activities NAGASA provides a wealth of useful and important knowledge that all segments of the channel can draw upon to continue being successful. Linked to this is the need for dealers in particular, to get involved with NAGASA and take advantage of these efforts. The Return On Investment (ROI) associated with participation in NAGASA is quick and big!

Do you have any overall comments about the coming year?

Drawing on nautical terminology I see the next year as being "steady as she goes" for the channel. I assess that we’ll see a similar rate of technology change and continued consolidation by end-users, dealers, and manufacturers albeit at a slower pace. I expect manufacturers to continue to be spirited competitors during this time frame because of changing market conditions, some of which I’ve already mentioned. With regards to this, printers appear to be making significant capital investments in especially digital technologies as one means of improving their quality and productivity. With DRUPA taking place in late May I expect a real flurry of activity over the coming months.