01732 759725
MPS
20
specific pockets of opportunity.
The first is a challenge they have
publicly set themselves to achieve a market
share in A3 printers (where HP’s presence
is currently almost negligible) comparable
to the dominant position that they have in
A4 printers. To achieve this, HP dropped
a very strong hint (actually showing an
A3 printhead at the event) that they will
be launching A3 versions of the highly
successful PageWide Office Jet Pro X inkjet
products and, in doing so, disrupt the
market with superior economics, as they
have already done in the A4 market.
However, HP will not focus solely on
Ink in the business market. They recognise
that some customers continue to prefer
laser and will therefore go to market with
a balanced portfolio, including the new
Jet Intelligence products, with the recently
announced soft shell toner technology,
which makes it possible for new laser
printers to be significantly smaller, faster
and more energy efficient. Initial results for
both new technologies are very promising,
and if HP can achieve anything like its A4
market share in A3, it will grow its total
business very significantly.
More engaging
Next was a clear recognition of the trend
towards contractual sales and MPS and
a strong commitment both to grow HP’s
share and revenue in this sector and to
‘move up the stack’ with more value-
added solutions. HP acknowledged that
they were currently only second in the
MPS sector (behind Xerox). However, they
have set themselves the target to be No.
1 within a relatively short time-frame. The
new products will help with this, but HP
knows that in addition to selling large MPS
contracts to its direct Enterprise clients, it
needs to engage its channel partners much
more effectively in selling and delivering
HP MPS solutions to smaller Enterprise and
SMB clients.
The third pocket of growth in business
printing is in the MPS-related area of
document solutions. Although smaller than
the first two opportunities, this one has
much the fastest growth. To help maximise
the opportunity to increase sales, HP
announced that some of the Autonomy
assets relating to content management
will reside in HP Inc., rather than in
Hewlett Packard Enterprise. In addition,
HP demonstrated a number of interesting
vertical market workflow solutions,
integrating PC and printer solutions with
content management and process-related
software.
Ten times the size
As if that were not enough, HP identified
two further opportunities for huge growth,
beyond consumer and office printing. These
are:
1
Graphics, which is ten times the size
of office printing and still dominated by
traditional analogue printing presses. Here,
HP has a big opportunity to grow market
share, riding on the trend towards digital
print and exploiting its wide array ink-jet
printing across a range of formats and
applications as diverse as books, packaging
and car wraps.
2
3D printing, where HP has
leveraged PageWide inkjet printing
technology in its new HP Multi Jet Fusion
concept. The products will be in prototype
by 2016 and ready for launch by 2017. The
concept promises better, faster, stronger,
more cost-effective 3D printing. If HP can
deliver on this, in a market which is still
in its early stages and highly fragmented,
then the growth potential could be truly
transformative for the company.
IDeAs Comment
Many of the strategies and new product
ideas presented by the new HP Inc. were
very exciting and held out the prospect of
major growth potential. As ever, with HP,
the key issue will be whether the execution
and delivery can live up to the dream.
For example, in the area of MPS, HP will
need to pay special attention to ensuring
continuity and support for its channel
partners, if it is to achieve its growth
ambition. This implies real attention to
detail – not just looking at the big picture
– and being willing to seek outside help
where needed.
One final observation. While the
restructuring and split into two companies
appears to have released significant new
energy, ideas and commitment, was it
really necessary to divide the company
to achieve this? Could it have been done
within a more autonomous PPS Division
under an integrated HP structure? Or is
there another logic driving the split?
Steven Swift is co-founder of IDeAs, a
European network of consultants advising
and helping companies make the change
to a service-based business model in the
Printing and Imaging industry.
IDeAs works with many of the leading
names in the industry, including OEMs,
channel partners, software and supplies
companies, and also leads IMPSGA – an
alliance of independent MPS providers
across Europe.
Steven has over 20 years experience
in the Printing and Imaging industry, and
has been involved with the development
of MPS since its earliest days. He has seen
this from several different perspectives,
including senior roles at leading
manufacturer Ricoh, consultancy with MPS
software provider NewField IT, and industry
analysis with Photizo Group. Steven’s most
recent experience at IDeAs has included a
lot of work helping the channel to adapt to
the new service-based business model.
The third
pocket of
growth in
business
printing is
in the MPS-
related area
of document
solutions
...continued
Baby brother: HP
hinted it would
be launching an
A3 version of its
Officejet Pro X
business inkjets
