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Issue 16 • September 2008
Quarterly insights from IDC's Hardcopy Peripherals Solutions team of experts
 

In This Issue:

HIGHLIGHTS: Opportunities to Support Corporate Rebranding -- A3 Versus A4 -- Hardcopy is Immune from U.S. Economic Downturn -- Key Factors Impacting Production Printing Market
Scanning Usage Opportunities Revealed Within Eight Industries
Analyst Perspective on Inkjet MFP Growth
Optimal Channels Revealed for Hardcopy Peripheral Vendors and
Other Multiclient Studies
Upcoming Research and Program Change
Recent Research including EMEA
Hear and Meet IDC's Experts
Contact Information

Highlights

Opportunities Exist for Hardcopy Vendors and their Partners to Support Corporate Rebranding Initiatives

Developing and executing new company brands provides corporations with an opportunity to evaluate the number and types of documents that are used to run the business. During the execution phase of a rebranding activity, companies need to know in detail which customer-facing and internal documents will be impacted by the brand change and, most important, the costs associated with it. IDC believes most firms are ill prepared to execute on an enterprisewide brand change, and hardcopy vendors along with their partners have the opportunity to provide support to such initiatives.

Key Processes that Can Help with Rebranding Initiatives

  • Conduct a document audit of all documents, both internal and external.
  • Develop an enterprisewide document taxonomy that identifies key metrics about documents.
  • Implement a document database that maintains and administers the document taxonomy.
  • Provide an integration between the document database and specific internal systems in order to track costs associated with the document.

Uncover IDC's Branding Execution Analysis Case: Xerox

IDC had the opportunity to discuss the operational steps that Xerox went through in executing its most recent rebranding. Find out how the process was accomplished for Xerox in IDC's study, Complex Business Process Series: Brand Changes and Their Impact on Managing Documents Within an Enterprise (Doc # 213499).


A3 Versus A4: Making Copier Vendors Nervous 

The most excitement in the U.S. hardcopy industry between A3 and A4 takes place in the MFP market. The workgroup segments of the color and monochrome MFP markets show a coexistence of A3 and A4 products throughout the forecast period (2008-2012), but A4 is projected to make a substantial inroad over the same period. Indeed, the U.S. MFP market, with its legacy in the A3 copier world, has increased interest from printer vendors who desire to bring a lower cost MFP option than what has traditionally been available. Also, IDC user research has confirmed that many customers have an overabundance of A3 machines in use versus their actual A3 output requirements. IDC believes that as users become increasingly aware of this situation, more of them will begin to consider A4 configurations as a lower cost alternative. As a result, stronger growth for A4 overall, particularly in the MFP market, is anticipated.

The A3/A4 Battle Summarized With a Few Numbers

  • A4 color MFPs show the highest growth opportunity
  • A4 monochrome is the biggest unit opportunity
  • A3 printers are a niche market
  • A3 MFPs are a legacy market, but facing A4 MFP competition

Learn More about Opportunities for Vendors

Read IDC study, A3/A4 Forecasts in the U.S. Hardcopy Market (Doc # 213649), which highlights the interest in A3 (11x17) and A4 (8.5x11) machines, both monochrome and color. The presentation discusses customers’ views of these machine types as well as IDC’s U.S. forecast projections for these machines through 2012.
 


IDC's QuickPoll Suggests that Hardcopy is Immune from U.S. Economic Downturn

IDC's QuickPoll results suggest that the opportunity for hardcopy vendors remains hopeful, even in a challenged U.S. economy, and that hardcopy vendors can approach the market with guarded optimism. The poll does demonstrate IT and line-of-business managers' cautiousness when considering hardcopy budgets and spending. However, the responses do reveal that the challenging economy presents attractive prospects for hardcopy business, especially for those products/services that focus on efficiency and cost effectiveness. Hardcopy vendors who provide their customers with such solutions have the greatest opportunity for revenue and profits in this competitive marketplace.

Key Highlights

  • Budgets for hardcopy equipment are primarily unaffected by the current economic status.
  • A shift from personal desktop devices to shared workgroup devices is evident.
  • There is interest from IT and line-of-business managers for simple tools that can help address hardcopy costs and usage.
  • The U.S. economy is projected to rebound within a year.

Gain Details by Company Size, Respondent Type and Role in Organization

Read IDC Quick Poll Suggests That Hardcopy Is Immune from U.S. Economic Downturn (Doc # 212687). This online QuickPoll was conducted in May 2008. The responses are segmented by total, company size, respondent type (line-of-business manager and IT), title, and U.S./non-U.S. respondents, and are represented by several industries.
 


Production Printing Markets: End User Perspectives and Their Impact on the Future of Print

The Production Printing Markets: End-User Perspectives and Their Impact on the Future of Print presentation examines key trends that are taking place within the production printing market place. In addition to analyzing trends within a broad range of customer segments, the study encompasses several product categories, ranging from light- to full-production, cutsheet to continuous form and monochrome to full process color. Topics of discussion address multiple areas, including trends for print volumes by customer segments and print environment, as well as challenges impacting production print.

Key Factors Impacting Production Print Volumes

  • 80% of in-plants/CRDs indicate that offset transfer is driving double digit increases in digital volume. Note, a third of in-plants state that digital print is increasing at rates greater than 25%.
  • Print service providers are also seeing increases in digital volume, driven by offset transfer. 68% of respondents stated digital print is increasing or substantially increasing as a result of offset transfer. In fact, only 11% of respondents indicate no increase in volume due to offset transfer.
  • 46% of print establishment respondents have adopted VDP services. Moreover, another 15% of those not providing VDP do plan on offering such services in the future.

Although Current Adoption of TransPromo Applications is Low Now, Demand will Increase

Only 10% of in-house print establishments (Data centers and In-plants), who print transactional documents, currently have adopted and are up and running with trans-promotional applications. However, 11% of print establishment respondents are currently implementing a trans-promo application, but are not yet up and running. Furthermore, another 25% are currently considering adoption. Of course not all considering will transition to adoption, but it is reasonable to believe that a percentage will. 58% of all print establishment respondents – in-house and print service providers – agree that demand for trans-promotional print applications will increase.

Learn More

Read IDC's presentation survey, Production Printing Markets: End-User Perspectives and Their Impact on the Future of Print (Doc # 213235). The study is based on a U.S. end user survey of production printing environments as well as line-of-business, marketing, operations and IT executives responsible for high volume customer communications that are printed and mailed. Summary thoughts are provided, relating market trends and customer challenges to customer product and services needs. 

Scanning Usage Opportunities Revealed Within Eight Industries

Scanning use in the United States continues to accelerate, according to a special research study published by IDC. This study – based on survey data from over 1,800 end user, IT and facilities/operations/purchasing respondents in eight key document-intensive industries – points out that 52% of all respondents indicated that they have increased their scanning use over the past two years and that 57% expect a scanning usage increase over the next two years. This represents a solid opportunity for hardcopy device manufacturers (particularly MFP vendors) that offer scanning as an integral piece of their overall solution. In addition, the opportunity is not  just limited to hardware, but also opens up even more revenue potential within the increasingly lucrative software and services business related to the scanning ecosystem.

Eight Key Document-Intensive Industries Researched

The research was designed to uncover specific scanning opportunities within key document-intensive industries. Vendors seeking to target scanning business within these industries would benefit from IDC's study. The industries researched for this study include:

  • Banking
  • Insurance
  • Manufacturing
  • Health care
  • Retail/wholesale
  • Legal
  • Education
  • Government

Most importantly, the study also points out similarities and differences between the eight industries analyzed. It also identifies particularly strong scanning opportunities within each industry.

Learn More

IDC's upcoming special study, Document Intensive Business Processes and Scanning, 2008 (IDC #213889) offers a comprehensive analysis of the U.S. scanning opportunity based on survey data from end user, IT and facilities/operations/purchasing respondents. 

For more information, contact Keith Kmetz.


Analyst Perspective on Inkjet MFP Growth

"Inkjet MFPs are expected to show a positive CAGR through 2012. There have been no surprises in this expectation over the past one year. However, what has changed is the gradual evolution of three key areas that could define inkjet MFP growth in the near term. First, the strong growth of 4-in-1 devices in the $100-$299 price band segment. The need for fax capability in inkjets, especially from SMB, has fueled this segment. Further, declining prices on standard fax systems with network capability have led to a widening of an already huge price delta between comparable 4-in-1 color laser devices. Second, the emergence of enhanced photo capabilities in inkjet MFPs. As vendors develop more and more intuitive photo features on an MFP, photo capability has nearly become an industry standard for inkjet MFPs. Nearly 80% of all inkjet MFPs today offer standard photo-direct capability. Third, the gradual climb of in-built wireless devices. With growing wi-fi in homes, the need for more than one print device for multiple PC households has decreased to some extent. However, as more and more options of wireless MFPs are becoming available to the home user, we can expect this to be a trigger point for growth in the near and long terms. Functionality that appeals to SMBs is important as this market has a strong preference for laser, and some major vendors are reporting softness in the home inkjet market due to wireless enabled sharing." -  Sahaja Sarathy, Senior Research Analyst, Hardcopy Solutions.

Multiclient Studies:

Limited Time Offer on Optimizing U.S. Hardcopy Peripheral Channels !

Other Multiclients Status Contact
Optimizing U.S. Hardcopy Peripheral Channels - A Customer and Channel Analysis Available - Check out our special offer Angèle Boyd
U.S. Hardcopy Industry Analysis Available Keith Kmetz, Alyson Frasco
Next Generation Office Hardcopy Technology – A Customer Conjoint and Opportunity Analysis for Ink Vs. Laser Research Underway Angèle Boyd, Keith Kmetz

Upcoming Research and Program Change

Upcoming Research - Tentative Title Analyst
Ricoh Acquires IKON - What This Means For Them, Competitors And The Industry
Angèle Boyd
Are Higher Commodity Prices Trickling Down to Hardcopy Peripheral End-users?
Angèle Boyd
U.S. and Worldwide Document Outsourcing 2008-2012 Forecast and Analysis
Michael Orasin
Security and Hardcopy
Michael Orasin
Adobe Conference Review 
Michael Orasin
Toshiba Conference Review
Michael Orasin 
Print on Demand Forecast and Analysis
Riley McNulty
Ricoh Go-to-market Profile
Keith Kmetz
Samsung Go-to-market Profile
Keith Kmetz
The Future of Print: Focus Group Series with Young Professionals Keith Kmetz
Worldwide Printer Forecast and Analysis Akia Ramsay
U.S. Printer Forecast Update Akia Ramsay
Worldwide MFP Forecast and Analysis Sahaja Sarathy
U.S. MFP Forecast Update Sahaja Sarathy
Wireless Printing Sahaja Sarathy
U.S. Printer and MFP User Segmentation Forecast and Analysis Alyson Frasco


Program Change

"Hardcopy Peripherals: Document Solutions" Program Becomes "Hardcopy Peripherals: Software and Services"

Why? To Reflect Market Changes and Provide Clearer Insights

As the nature of the hardcopy peripherals market is evolving toward a more solutions focused market, vendors are moving beyond just supplying hardware to offering business solutions that include software and services, and thus delivering additional value to their customers. While the word solutions has many interpretations in the market, IDC believes that the assessment of software and services from a functionality perspective can provide clearer insights into the re-purposing of offerings from vendors to customers. Software and services can be combined to address multiple problems within customers' document infrastructure.

Benefits to IDC Subscribers: Bringing Hardcopy Devices and Document Processing Software/Services Together

  • Gain insights into the embedded programming capabilities and associated software sold today with MFP devices. These capabilities are dramatically changing the inherent value of the hardware that vendors are bringing to the market.
  • Understand how software will be a key enabler to making devices more "active" in the complex document processes of today's enterprise. Beyond just being an output device, MFP's are now becoming active participants in business processes, thus adding value.
  • Optimize your services offering which can vary from assessment of complex document processes to fully outsourced document processing. Services are becoming more and more important to hardcopy peripheral vendors looking to fill the role of trusted document consultant to their clients.

Learn More

Recent Research Including EMEA

Hardcopy Peripherals: Software and Services

  • Complex Business Process Series: Brand Changes and Their Impact on Managing Documents Within an Enterprise - Doc # 213499
  • Equitrac Shares Growth Strategies with Industry Analysts - Doc # 212717
  • HP IPG - Document Services & Solutions Snapshot - Doc # 212638
  • HP and Xerox Working to "Green" the Office - Doc # 212668
  • U.S. Scan-Enabled MFP and Document Capture 2008-2012 Forecast - Doc # 212408
  • U.S. Scanning Solutions 2008-2012 Forecast - Doc # 212352
  • HP and the EDS Acquisition from the Hardcopy Perspective - Doc # 212415

Hardcopy Peripherals: Overview

  • Impact of IDC Hardcopy Peripherals Forecasts Moving to A4 Speed Bands - Doc # 213535
  • U.S. Aftermarket Supplies and Consumables Market Overview - Doc # 213608
  • The Sub-$1,000 U.S. Hardcopy Market: Inkjet and Laser Battle for Supremacy - Doc # 213672
  • IDC's Latest View of the A3/A4 Battle in the U.S. Hardcopy Market - Doc # 213649
  • U.S. Monochrome Laser A3/A4 2008-2012 Forecast - Doc # 212865
  • U.S. Color Laser A3 and A4 2008-2012 Forecast - Doc # 212826
  • HP’s Imaging and Printing Group Reorganizes: A Necessary Step in IPG’s Transformation Journey - IDC Link # lcUS21301208
  • HP's Imaging and Printing Group - Market Share Trends and Technologies in Key Segments - Doc # 212644
  • HP's Imaging and Printing Group - An IDC SWOT Analysis - Doc # 212574

Hardcopy Peripherals: Production and Large Format Markets

  • Ricoh Pro C900 Series: Market Update - Doc # 213792
  • Drupa 2008 - Doc # 212955
  • The Trans-Promo Market: End-User Views of Opportunities, Challenges and the Future of Transactional Communications - Doc # 212188
  • Production Printing Markets: End-User Perspectives and Their Impact on the Future of Print - Doc # 213235
  • Océ Introduces New CrystalPoint Technology and ColorWave 600 for the Wide-Format Market - Doc # 212904

Hardcopy Peripherals: User and Channel Data

  • Ricoh Acquires IKON - What This Means for Them and Competitors - IDC Link # lcUS21402108
  • The Need for "Green" in the U.S. Hardcopy Market - Doc # 213707
  • The U.S. Economy's Impact on Hardcopy Spending: Opportunities Revealed in IDC Survey Studies - Doc # 213618
  • IDC Quick Poll Suggests That Hardcopy Is Immune from U.S. Economic Downturn - Doc # 212687
  • Sharp Heads to the Next Frontier at National Dealer Meeting - Doc # 212490

United States Hardcopy Device Usage Trends

  • 1Q2008 Color Ratio Report - an IDC Hardcopy Usage Analysis Presentation - Doc # 213090


EMEA Research

European Multifunction Peripherals

  • Western Europe MFP Distribution Channel Forecast and Analysis, 2008-2012 - Doc # KM02Q

European Printers

  • Western European Inkjet and Page Printer Installed Base, Page Volume and Supplies Forecast, 2008–2012 - Doc # KM04Q
  • Western European Printers 1Q08 - Doc # KP58Q

Central and Eastern European Hardcopy Peripherals

  • Kazakhstan Hardcopy Peripherals 2008–2012 Forecast and 2007 Vendor Shares - Doc # EH07Q
  • Czech Republic Hardcopy Peripherals 2008–2012 Forecast and 2007 Vendor Shares - Doc # EH05Q
  • Hungary Hardcopy Peripherals 2008–2012 Forecast and 2007 Vendor Shares - Doc # EH06Q
  • Belarus Hardcopy Peripherals 2008–2012 Forecast and 2007 Vendor Shares - Doc # EH02Q
  • Bulgaria Hardcopy Peripherals 2008–2012 Forecast and 2007 Vendor Shares - Doc # EH03Q
  • Poland Hardcopy Peripherals 2008–2012 Forecast and 2007 Vendor Shares - Doc # EH08Q
  • The Baltic States (Estonia, Latvia, and Lithuania) Hardcopy Peripherals 2008–2012 Forecast and 2007 Vendor Shares - Doc # EH01Q
  • Romania Hardcopy Peripherals 2008–2012 Forecast and 2007 Vendor Shares - Doc # EH09Q
  • Slovakia Hardcopy Peripherals 2008–2012 Forecast and 2007 Vendor Shares - Doc # EH12Q
  • Slovenia Hardcopy Peripherals 2008–2012 Forecast and 2007 Vendor Shares - Doc # EH13Q
  • Ukraine Hardcopy Peripherals 2008–2012 Forecast and 2007 Vendor Shares - Doc # EH14Q
  • Croatia Hardcopy Peripherals 2008-2012 Forecast and 2007 Vendor Shares - Doc # EH04Q
  • Russia Hardcopy Peripherals 2008–2012 Forecast and 2007 Vendor Shares - Doc # EH10Q

Middle East and Africa Hardcopy Peripherals

  • Nigeria Hardcopy Peripherals 2008–2012 Forecast and 2007 Vendor Shares - Doc # ZH07Q
  • Egypt Hardcopy Peripherals 2008–2012 Forecast and 2007 Vendor Shares - Doc # ZH02Q
  • United Arab Emirates Hardcopy Peripherals 2008–2012 Forecast and 2007 Vendor Shares - Doc # ZH12Q
  • Kenya Hardcopy Peripherals 2008–2012 Forecast and 2007 Vendor Shares - Doc # ZH04Q
  • Saudi Arabia Hardcopy Peripherals 2008–2012 Forecast and 2007 Vendor Shares - Doc # ZH09Q
  • Turkey Hardcopy Peripherals 2008–2012 Forecast and 2007 Vendor Shares - Doc # ZH11Q

Hear and Meet IDC's Experts

eCopy Paper Connection Forum 2008
October 6-9, 2008
Boston, Massachusetts
Hear Michael Orasin discuss where the MFP market is heading and how you can take full advantage of the market.

2008 Xerox Alliance Partner Conference
October 13-16, 2008
Savannah, Georgia
Meet Michael Orasin who will present the new requirements of customers for MFP embedded software offerings.


Contact Information

Contact Anne-Sophie Dankens at 508-935-4313 or [email protected]

 


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