Copiers Digital Advantages

Today's digital, high-speed, black-and-white copiers provide advanced capabilities at a fraction of the cost of previous analog workhorse models.

by JEFF SMITH

The line between office and production equipment continues to become less and less distinct. "Distribute-then-print" has effectively replaced "print-then-distribute" for most applications in most environments.

One of the primary causes of this shift in print distribution is the coming of age of digital office copiers, which, along with faster network printers, have provided an effective means to print electronically distributed documents.

Today's digital, high-speed, office and production copiers are providing advanced capabilities to in-plants at a fraction of the cost of previous analog workhorse models. And the number of industry players capable of producing such equipment has increased dramatically in that time span.

Xerox's domination of high-end placements in the mid-1990s has been supplanted by an oligopoly of manufacturers including Canon, Heidelberg, Ricoh and Konica. Whereas just two years ago, only two manufacturers offered production-class equipment faster than 100-page-per-minute (ppm), that number has now doubled, providing in-plant managers with options never before available.

Similar advancements have occurred with office copiers (segments 1, 2 and 3) over the past few years. For example, two of the top four analog producers in the 1990s have lost significant ground to leading digital copier manufacturers such as Canon, Ricoh and Konica.

In the past year:

• The copier division of Pitney Bowes spun off into a separate operating entity.

• Minolta and Konica announced a joint manufacturing venture.

• Ricoh purchased Lanier.

• Xerox outsourced its manufacturing facilities to Flextronics.

The production of analog copiers ground to a halt for virtually all the manufacturers, as expected, in 2001.

Rumors abound that a major copier manufacturer will be exiting the business this year. Will it happen? Probably not. No doubt, however, more changes in marketing and manufacturing partners will be announced. We are hearing strong rumors that one or more of the major independent dealer organizations will be bought, perhaps by its manufacturing partner.

Product Trends

The negative impact of having advanced connected digital output devices configured decentrally can be significant to an internal central reproductions department (CRD). Saddle-stitched booklets can, in some cases, obviate the need for thermal-bound booklets created on a DocuTech in the in-plant. Forms storage on a digital copier/printer can negatively impact the need for centralized printing, as well.

Just how far has today's digital copying equipment come? We think quite far.

One critical advance since the first generation of these models has been the continued refinement of the basic concept of multifunctionality, making this new generation of output device much more usable in higher-volume environments than before.

The primary advances this past year in the copying industry involve not so much the hardware but what are called the "software solutions." These solutions include network scanning, scanning to e-mail, bar-code job scanning and recall, fax to e-mail and e-forms printing.

The reality is that not enough buyers have successfully transitioned to digital copiers yet (not to mention that the solutions themselves are in an immature developmental stage). So we believe that trying to sell or install solutions is putting the cart before the horse. Rather, a phase-in strategy for these ancillary services should be developed.

Much of the manufacturer's talk about "solutions" results from the product manufacturers' desire to not let the industry turn into a commodity-based price war. To keep prices and profits high, they seek to differentiate their products from each other as much as possible. Luckily (perhaps intentionally?) for the manufacturers, digital copiers remain heavily service-intensive, so the differences between servicing organizations remain of crucial importance to the buyer.

Software-based utilities introduced in the past year that are making life easier for in-plant managers involve setup and administrative network functionality. For example, a major software-based advancement is the utilization of a common print driver across most product lines. No longer do users have to install a different driver for each output device on each user's workstation.

Another clear product trend that became apparent in 2001 was the incorporation of print controlling functions inside digital copiers. This type of print controller is referred to as "embedded."

The 20-bin stapler sorters of the analog copying world are severely limited compared to the advanced finishing functionality of the new generation of digital copiers. Now-commonplace features, even among mid-volume copier/printers, include on-line saddle stitching and hole-punching. These are some of the major advances that digital copiers offer over their analog predecessors.

Higher Reliability: Myth Or Reality?

Low and mid-volume equipment (segments 1, 2 and 3; under 40 ppm) were the last areas of refinement for most equipment manufacturers, but much progress was made in the past year. Since many copier manufacturers are also printer engine manufacturers, virtually all of the digital copiers under 40 ppm are based on modified printer engines. This reveals one of the major improvements in "copiers" over the past several years: increased reliability.

Lower-speed digital copiers for the office are more reliable than their analog predecessors. But are consumers seeing cost savings because of the decreased servicing requirements for this lower-speed equipment? And, are higher-speed (above 40 ppm) units, those not based on network printer engine designs, showing the same increase in reliability compared to their analog predecessors? It is still too early to tell.

Don't let the hype of the copier industry overwhelm a patient and sensible approach to acquiring new equipment. Considering the sweeping changes highlighted in this article, the need for expert impartial advice to buyers of convenience and production copiers is greater than ever.

In-plant managers should work with their purchasing and IT departments to effectively create a win/win/win document management strategy.

Jeff Smith, with over 20 years of experience in the copying and printing industries, runs a consulting company, Pro Buyers LLC, that provides advisory and logistical support to public and private enterprises in the process of acquiring office equipment. Mr. Smith can be reached by phoning (973) 709-9084 or by e-mailing:

JSmith@ProBuyersLLC.com