Are You In Transition, Or Are You In Trouble?

Dear Colleagues,

It used to be that a "KODAK moment" meant that split second capture of life or family that was an affirmation of all that's right with the world, like a small scene in Disney's Magic Kingdom. It was as American as apple pie. No more. After years of struggle, KODAK filed chapter 11 bankruptcy, a victim of technological advance and ossified management.

An aspiring Harvard MBA could undoubtedly find a treasure trove of thesis material in the story of the KODAK death spiral, but for our purpose we will focus on the one most elemental reason for their demise.

THEY LOST THEIR RELEVANCE TO THEIR CUSTOMERS!

They never made an effective transition from the world of film to the world of digital cameras. They were fixed too long in their own KODAK moment. Now, in all likelihood, they are gone. Some might say "shuttered."

I received the inspiration for today's article from a TV documentary entitled BEST BUY – The Big Box Fights Back!

In case you haven't noticed, "Big Box" stores have encountered problems lately. Think Circuit City and Borders - they're gone - or Sears and Barnes & Noble - they're struggling. They all have a common problem best articulated by one analyst. "They know how to do business with our parents, but not our children." Need I make an analogy to our distributorships and the buyers of today?

But, let's get back to Best Buy, because they focused on several useful strategies to resuscitate sales that we can employ in our own companies. So, what strategies did they adopt?

• FOCUS ON THE CHANGING NEEDS OF OUR CUSTOMERS
• STAY RELEVANT TO OUR NEXT GENERATION OF CUSTOMERS

Best Buy acquired the Geek Squad. They not only sell electronic products, but install, repair and warranty those products. They broadened their product lines and increased their services. They were first in their industry to introduce non-commissioned salespersons. They learned to work with lower margins. They employed technology, so today you can purchase Best Buy products at their Big Box stores, online, or using mobile apps.

In an interview, their CEO outlined Best Buy's new maxim for their sales force.

• DO NOT ASK CUSTOMERS WHAT THEY WANT TO BUY!
• ASK CUSTOMERS WHAT THEY WANT TO DO!

Goodness, could that be solutions rather than product selling? Where have we heard that before? But most interesting were their conclusions on where the future of Best Buy's customer focus should reside: namely, Home Automation and Connectivity.

In the fast moving world of consumer electronics, Best Buy wants to become "The Connecting Store." Best Buy want to offer customers a single source to sell and connect all our electronic devices - TV's, computers, smart phones, pods, pads, stereos, speakers, and appliances.

So where does this "connect" with our Print Services Industry? Well, it sure sounds like the electronics version of "global supply chain solutions" to me.

Leading distributors in our industry sell by asking clients what they want to accomplish and then crafting solutions to achieve that goal. And, today's solutions generally require connectivity: transparency between vendors and clients, online ordering, shared data bases, exportable and importable reporting, logistical interfaces, online accessibility of data, marketing services, data mining, data analytics, integrated mailing lists. In short, leading distributors have become "The Connecting Print Services Providers."

All these products, services and technologies may be required for you to remain relevant to YOUR clients. The good news is that you can find product, service and technology vendors in our Industry that can provide all these to you. But, it requires YOUR effort to remain relevant. Embrace the challenge of transition!

Otherwise, enjoy your KODAK moment.

Sincerely,



Ross Barker

P.S. A GREAT WAY to prepare for transition trends is to attend e-Quantum's national conference. Mark your calendars for e-Quantum's 2012 International Client Conference on April 30th - May 2nd at the new Cosmopolitan Resort in Las Vegas! You don't want to miss this conference if you're seeking insight on how to increase revenue through creative software solutions. You can look forward to a remarkable educational and networking experience! See you in Las Vegas!


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