Cutting Through the Chatter and Confusion of MPS Humankind has long faced the reality of worldly chaos and confusion, and we characteristically define ourselves by our victory against adversity. It is these adversities which create and drive need, evolving into gaps for innovators to bloom. This is where we find ourselves playing at that game of change in our business; as we survey our business environment, we find ourselves trying to see whether the benefits of managed print services (MPS) is a myth or reality: Impacting my business, ‘my’ view of ‘my’ market and even ‘me’, personally. I wonder if cutting through all of this chatter and confusion surrounding MPS is frustrating for you? For a moment, forget definitions, programs and promises; let’s even put aside what we assume, believe and feel about the label of MPS, for just a bit. Step back to 1908 and the introduction of the Ford Model T, generally held as the first affordable automobile marketed to the middle class. Mass-produced with interchangeable parts, the ‘Tin Lizzie’ offered a normal family the opportunity to travel as never before. Many may argue whether the innovations in manufacturing, sensitivity to price-point and bullish marketing focus were the crucial success factor in making the Model T a disruptive innovation, which creates a new and unexpected market by changing the rules of play. As beneficiaries we enjoy the upside, but as competitors we can be blindsided by how quickly we perceive one market explodes and another withers. Can one market suddenly implode? I would suggest that we often allow ourselves the luxury of believing a market, once flush with business, might suddenly run dry. However, a closer look behind the curtain of any market downturn will unavoidably reveal a series of signs leading to the intersection of a failure to address a market need and innovation, organic or imposed. For instance, the automobile was not a disruptive innovation, itself. Karl Benz created the first automobile in 1885, 13 years before Ford’s Model T went into production. So the automobile was a transformational innovation to the horse-drawn carriage, creating a new market through solving customers’ problems in a radically different way. However, it was the low-price Model T that offered a visionary answer to the problem of cost-effective and expedient transit, heralding the end of the horse-drawn carriage’s widespread use. Well-established markets often suffer the most when disruptive innovations are introduced. These types of innovations are often not seen as mainstream to core competencies, and can be extremely hard to identify. Even worse, as the proverbial “buzz” builds, confusion results in frustration. Information alone cannot help organizational leadership bridge the gap between knowing and doing. So, is MPS a disruptive innovation, or simply an evolutionary innovation to a tried and true business model? I encourage you to strip out fact from fiction and encourage fierce debate amongst your trusted advisors. Look to the key indicators of a disruptive change, such as loss of key accounts, a negative trend in your win-loss ratio, declining profitability, or simply a stagnant business portfolio, in order to build a decision based on equal parts vision and relevant data. With those answers, closely evaluate what new product or service vehicle you will embrace – ideally giving your organization 18-24 months of planned, closely monitored field-testing against a rigorous scorecard. Lastly, and perhaps most importantly, stay informed and laser-focused on things that directly and indirectly impact your core business; this will afford you the opportunity to gauge whether it is time to stay your hand or to decisively transition your core business into your growth offerings. The most costly mistake the leadership of a mature business makes is emotionally tying their identity to their portfolio of offerings, which blinds them to diversification and long-term, strategic growth opportunities. Remember, your product and services portfolio is simply a method to drive profitable growth – a tool to be leveraged in protecting and promoting your position in times of disruptive innovation, while aiding you in cutting through the chatter and confusion. As a senior consultant with the Photizo Group, Ken Stewart comes from and works directly with channel providers in the managed services space, developing educational tools and resources to promote lasting business transformation. Ken also owns and operates an industry-niche blog, ChangeForge, focusing upon the collision between the constantly changing worlds of business and technology in an information-centric world. He is also a board member on the Managed Print Services Association, and writes a weekly column on www.MPSInsights.com   every Tuesday.