Here in the office printing analyst community, few forecast drum beats can be heard as loudly as claims of the imminent consolidation of copier vendors and the looming obsolescence of the A3 format. These forecasts have gained increasing clout during the last year as the floundering economy expedited Oce’s path to acquisition and the emergence of new A4 MFPs, such as Sharp’s Frontier series, prompted analysts to proclaim that A3s were finally on their way out. Although there is very justifiable evidence behind each of these forecasts, one of the most compelling arguments that both have come to fruition occurred in February when Panasonic announced that it was finally exiting the A3 MFP-Copier market to capitalize on the growth opportunities that lie in the A4 space.
From a 10,000-foot view it seemed pretty clear. With one announcement, Panasonic encapsulated two of the most common theories surrounding the office printing space and became the first milestone in a pair of major transitions that are set to change the office printing market forever. However, as with many apparently clear harbingers of change, the closer you look at Panasonic’s announced transition, the less straightforward the motivations behind it are.
Although Panasonic was never a copier market powerhouse, the manufacturer’s investment into the A3 space was clearly waning for the last five years before reaching its official nadir earlier this year.
On the product side, Panasonic’s actions did not reflect those of a company with intentions of growing within the copier market. Panasonic launched just 12 new A3 MFPs between 2007 and 2010, all of which were closely based on their predecessors and provided no notable specification or feature improvements. To put that into context, since December 2009 Xerox, Canon, and Ricoh have launched 13, 12, and 6 new A3 systems, respectively, and Ricoh is expected to launch another four MFPs in the coming months. Additionally, Panasonic resisted expansion into departmental segments, sat as a spectator as vendors migrated to the light production arena, and never launched a true third party development platform.
Panasonic’s Old A3s
Panasonic appears to have invested even less into the marketing and distribution of its copiers and actually adopted almost the exact opposite channel strategy of the current market leaders. In 2005, Panasonic bucked the growing trend of direct sales expansion by selling-off its 13 direct branches, in a cost cutting move that was positioned as an attempt to reduce competition with its channel partners. During the following years, Panasonic’s limited emphasis behind its A3 business resulted in the manufacturer losing a large number of its authorized dealers, almost all mid-market and major enterprise clients, and its entire government sales presence beyond the municipal level. Perhaps the most telling sign of Panasonic’s lack of commitment to the copier market came in February 2009 when the vendor announced that it would transition its 60 remaining authorized dealers to reseller status.
One year before making it official, Panasonic had essentially ended development of new A3 MFPs and was the only copier manufacturer without a direct sales or an authorized dealer presence. To put it plainly, Panasonic’s exit two months ago came as no surprise to those that were paying attention.
One thing that may surprise folks in the A3 obsolescence crowed is that Panasonic is not shifting its focus to the type of A4s that will theoretically replace copiers. Instead the vendor is planning to expand its current SOHO lineup, launching a variety of new desktop models that will sell through IT resellers, its Panafax channel, and will even reportedly include a substantial retail channel push (and they thought direct sales were expensive!).
Panasonic’s New A4s
Given the market share race and manufacturing scale pressures that face current A3 MFP manufacturers and the hardware cost advantages of A4 MFPs, it is almost certain that vendor consolidation and an engine format shift will continue. However, Panasonic’s exit from the copier space and increased commitment to A4 printers should in no way be viewed as a move from a company that really had a choice. Going forward there are certainly a handful of A3 vendors with low enough market shares and limited enough manufacturing scale that their future may be in doubt, but none are anywhere close to where Panasonic was in 2005 (nevermind 2010), so its safe to expect a substantial slowdown in vendor consolidation until the next recession. Meanwhile, the expected transition to A4 MFPs is already occurring, but it will likely take the form of more balanced A3 and A4 product and fleet lineups as manufacturers look to provide the right hardware solutions for their clients’ needs. It will not be in any way as abrupt as Panasonic’s recent transition – especially not until A4s can rival A3 systems’ usage costs, speeds, and high volume capabilities.
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My new “All Time Favorite Picture” was just recently posted on NASA’s Goddard Photo and Video Flikr account. Captured by the Mars Exploration Rover Unit Spirit One from the surface of that distant planet, it is the first recorded image of Earth from a planet beyond the moon. I doubt that Buzz Aldrin could have held a camera so steady, even if he placed it on the lunar module.
I love this picture because it shows just how small we truly are and triggers curiosity on what really may be out there. Make no mistake, I am certainly not suggesting that space aliens are booking Star Destroyer tickets to visit us any time soon, but I have to admit that if I were sitting next to Spirit One and gazed at that teeny little light up there – I would bet the farm that nothing could possibly live on it.
For me, if anything, this picture puts us all into proper perspective.I don’t’ think that I am going to get too upset when my tomatoes don’t grow this year or if my favorite hockey team falls short of the Stanley Cup (again…).
Almost one year ago today I wrote a blog piece about gap intelligence’s new experiment on health insurance. gap intelligence, like millions of other small companies across the country, kept a very close eye on expenses as the global economy came to a grinding halt. Health insurance was one of our biggest expenses and we were challenged to find a way to reduce our overall health care costs while maintaining the same level of coverage for the team.
After deliberating for several months, most insurance brokers suggested that we adopt a new approach to health care that was growing exponentially in popularity – a Health Savings Account (or HSA for short). In its most simplistic form, a HSA is a bank account that is really no different than a personal checking account – you receive a debit card to withdraw funds to pay medical bills and you get a monthly statement showing your balance. The HSA account is then supported by a very high deductible health insurance plan, which is in our case provided by Blue Shield of California. Through the plan, 100% of the deductible (several thousand dollars) is paid by the employee, who uses the pre-tax funds collected in their HSA accounts. After the deductible had been reached, 100% of every dollar thereafter would be covered by Blue Shield of California. Given that gap intelligence is a relatively young company and whose employees would presumably need minimal medical attention, the HSA plan seemed then (and to an extent is today) an ideal solution to ease our budget. Our health insurance premiums would decrease substantially, our employees could save on taxes and keep a medical fund for life, and everyone would be covered in case of a dire emergency.
This May is our annual renewal of our health insurance policy and to celebrate or first anniversary, Blue Shield of California raised our premiums by 58%. You read that right – 58%.A premium that cost us $100 a month in April will cost $158 in May (underline that). Blue Shield’s reasoning behind the massive rate increase was that diabetics, who require expensive insulin medication to stay alive, quickly gobbled up their high deductibles and then enjoyed 100% coverage of every dollar thereafter.*** In other words, people were actually using their health insurance.
Though “it’s the diabetics” was the reason given for our rate increase, the underlying reasons may be do to health care reform, the astronomical costs of medicine in the US, a national shortage of doctors (and medical schools), malpractice insurance, malpractice fraud, and so on…..
With few viable options presented to us, gap intelligence is going to stick out the HSA program one more year. Blue Shield was forthright enough to warn us that its policy to cover 100% of costs after the deductible was reached will end in 2011, when it will then fall to 80%. Between now and then, we’ll look at other health care options, either through Blue Shield or other providers (Blue Shield may cut us after this blog), but I did want to share some of the challenges of being a small business and perhaps show an example of how health care impacts us all (without getting on either side of the political fence).
If you’d like to make plans with me it will have to wait till September. My jet-setting began in February and will continue all the way through August.I have planned nine trips over seven months!My travels include the following cities in this order: San Francisco, Napa, Las Vegas, Palm Springs, Lake Tahoe, Sacramento, San Jose, Santa Barbara, and Santa Cruz.
Why so many trips?Well, I traveled to San Francisco to visit my best friend from college.My trip to Napa was a family vacation that brought lots of wine and yummy food.My adventures in Las Vegas and Palm Springs were both tied to the wedding of a dear friend.Lake Tahoe was a special birthday party for my darling niece who turned one year old.
In the next four months I head to Sacramento to host a bridal shower for my best friend from high school. Following that trip, I will be traveling to my home town, San Jose, to host a wild 30th Birthday party for my big brother.In July, I will be heading to Santa Barbara for a bachelorette party followed by a wedding in August in Santa Cruz.
Traveling can be slightly overwhelming at times and I must admit that a weekend at home seems like a luxury these days.I joke that my dent in Tyrone (yes, I named my couch Tyrone) is losing its shape.Though all this traveling may be starting to wear on me a bit it is worth it.I love spending time with my friends and family more than anything else in this world.Being around those you love is such a treat.
A constant on all of my trips is a discussion about my exciting new job here at Gap.I have found that explaining what we do here at Gap seems to only invite more questions.Everyone is happy for me despite not quite understanding what exactly I do all day as a Sys Ops team member.
Here at Gap I am the data gate keeper for digital cameras.As a sort of newbie this is an on going learning process of course.I am slowly but surely becoming an expert when it comes to cameras and I couldn’t be more excited about this.It’s rather fitting that in my inner circle I am known as the paparazzi.I bring my Canon PowerShot everywhere I go.Friends of mine joke that they can leave their camera at home if I am coming to an event because they know I will have the picture taking duties covered.
Lately I have found that I notice cameras everywhere I go.I was at a wedding recently and I couldn’t help but take second looks at the cameras that were snapping away as the happy couple said their “I Do’s”.I found myself noting model numbers to myself.As pictures began to circulate after the wedding it was quite apparent that certain cameras took a better picture than others, but I won’t disclose which!
So, if you need any travel advice, I’m your gal. For instance, large round earrings look like ninja stars to security x-ray technicians so it’s better to pack those on top of your bag (not packed away deep in your suitcase). I learned the hard way to avoid sitting near small children on flights. Children aren’t much fun on planes.Also, if you own an iPhone, the Southwest Airlines travel App is a must.Not only does this app alert me when cheap tickets are available but it allows me to check into my flight on my iPhone!Oh technology!
I hope all of your future travels go smoothly.If you need any recommendations on where you should travel next I have a large list of suggestions.Traveling is a privilege and I am so blessed to have so many reasons to grab a suitcase and go.No matter where my travels take me though I always feel lucky to come home to San Diego.Happy traveling everyone!
The first half of our birthday started with a company kick-off meeting. We discussed who Gap Intelligence is, how we can get stronger, and some of the exciting stuff in the pipeline (DCV3, the Gap iPhone App for retail collectors, and new categories). We move fast as a company and it’s always cool to reflect on how much we’ve grown, even within the last several months.
When I was a kid, turning 7 meant that I got my first pair of roller blades and a new ninja turtles VHS. But most importantly, it meant I was allowed to invite friends over for all-you-can-eat pizza, fruit snacks, juice boxes, and a trip to the arcade! As it turns out, there is an arcade for “grown-ups” today and we got to celebrate Gap’s birthday in style. After the company meeting, we went to Dave and Busters, which has awesome food and all the arcade staples: Mrs. Pac-Man, Skee-Ball, mini basketball, and air hockey.
There were only two things that reminded me that I wasn’t a kid: I had a beer instead of a juice box and the air hockey puck kept flying off the table. I guess it’s a good sign that I’m now slightly stronger than I was in first grade. Overall, it was a good time and a fun way to welcome the new Gapsters to the team.
It’s no secret that the most successful retailers have the best knowledge of their products, their supply chain, and their customers. The faster and more consistently a chain can process and respond to changes in these areas, the more competitive they are likely to be. Conventional inventory management relies on line-of-sight tracking; an employee must visually identify a product in order to account for it. It is both costly and time-consuming to have employees routinely do this, so this is where RFID technology can provide a solution.
RFID or radio frequency identification works by using radio waves to transmit information between a small label and a reader. The technology is applied through a variety of mediums, including credit cards, passports, loyalty cards, and even the pass cards for buses running by Gap’s office in San Diego. In retail, putting RFID tags on products and packaging can have huge benefits for the manufacturer down to the end-user.
RFID tags can store information and can be read from up to a several feet away, without line-of-sight, so they are especially helpful for inventory management and security. Manufacturers who put RFID tags on their products can add information about individual items, such as when it was made, how, and by whom. Pallets of goods can be equipped with RFID tags to improve shipping accuracy and cut costs. Once a product reaches a retailer’s shelf it can be accounted for faster and more effectively using the same RFID technology, reducing labor costs and inventory issues. Retailers and manufacturers can even use RFID to track promotions more effectively. RFID technology is already a proven solution for limiting retail shrinkage-it can reduce human error in the supply chain and double as a theft deterrent. Additionally, tags programmed with a manufacturer’s identification can assure consumers that they have purchased a genuine product.
Standard size for retail, some are even smaller
Despite all the benefits of RFID, there are plenty of security and privacy concerns. A retailer can track a shopper throughout a store utilizing loyalty cards that the person is carrying or an RFID tag implanted in clothing. And who’s to say a person can’t steal your credit card information using an RFID reader a few yards away. From a retailer’s perspective, there are risks associated with using RFID. There have already been a few incidents where individuals have compromised RFID-enabled inventories using their own RFID reader. These concerns have to be addressed before retailers or customers will feel totally comfortable with implementing RFID.
For now RFID tag costs are still pretty high, ranging between 5 and 50 cents depending on order volume, so you’ll probably only see them on higher-priced products right now. However, as usage increases and costs continue to drop, RFID technology is expected to migrate toward lower cost products. In-house RFID printers are becoming less expensive as well, making it possible for businesses to create their own RFID solutions. I think there’s a huge opportunity for these little tags to improve identification and tracking for businesses, who in turn can use it to enhance the shopper experience and create value for customers. Next time you’re opening a DVD case or tearing into your new electronic goody take a peek inside the package and look for an RFID label; they’re in more places than you may realize!
I am easily impressed. Here I was, watching the NCAA tournament online, thinking, “This is brilliant, I can watch live basketball without having cable.” All because of my magical broadband connection provided by Cox Communications. Of course, the game looked like it was being played by pixilated Lego-men, but I didn’t care. All I cared about was being able to watch my beloved Kentucky Wildcats without Greg Gumble and the CBS crew switching back and forth between games as if a squirrely 3 year-old was holding the remote.
However, when I recently received my bill for my broadband services I decided not to just blindly pay the balance. I wanted to understand the brilliance for which I was paying. Cox lists its fastest broadband service for $58.95 on its website. That is about $9.75 more than the national average, according to the OECD (Organization for Economic Co-Operation and Development). This did not strike me as odd because I live in San Diego, where everything is three times more expensive. As I dug deeper, what I found frustrated me to no end, and after you read this you just might be as frustrated as I am!
First, Americans pay an average of $49.25 for broadband service. This ranks 20th out of the 30 countries that are members of the OECD. Greece has the cheapest broadband with an average monthly service costing the consumer $27.72, while Turkey is the most expensive with an average of $135.36. Fifteen countries have averages of less than $40.00. Relative to the developed world, broadband is expensive in America.
Don’t mistake cost for quality because the US ranks 23rd in advertised broadband speed. The average advertised download speed in the States is around 14618kbs/s. That number is very misleading because the FCC estimates that households are lucky to get half of the advertised speed. Half! That means we are downloading at around 7000kbs/s. That number ranks 29th, just ahead of Mexico (2514kbs/s) and just behind the Irish (6008kbs/s). There are select places in this country that have broadband speeds of 51200kbs/s (50mbs/s), similar to those found in most countries. However, that costs the consumer about $145 a month in the US. That would make it the most expensive internet in the world! This is when I started getting frustrated.
Is this even broadband anymore? FCC regulations dictate that in order for something to be considered broadband it must have a download speed of 768kbs/s. So as long as you are getting that, a company and call it broadband, and charge you accordingly. Dial up internet speeds max out at 56kbs/s, but since the service can be bought for under $5.00 a month it is cheaper per kb of speed in a lot of places.
Americans have little choice in the matter. Most cities have only two broadband providers, the phone company or the cable company, which creates a duopoly, and some homes are not even equipped with the infrastructure to offer both. Yes, that is correct; America doesn’t have the infrastructure to offer competitive broadband prices. Companies in other countries were willing to share the cost of building the required infrastructure while competing for customers. But since the phone companies and cable companies seem to lack any sort of quality customer service I can see why they don’t want to compete.
Being deceived is frustrating, but what really bothers me is the fact that we are missing out on a number of opportunities simply because our internet is too slow. There is a whole host of applications that we cannot use. Remote surgery, video instant messaging, and streaming HDTV are just a few, and I am sure there are many more applications in education, energy management, health care, and public safety that I am not thinking about.
Google wants to know what can be achieved with faster internet. That’s why, in one lucky town, they are going to build an experimental fiber network that supports speeds up to 102400kbs/s, (100mbs/s) just to see what kind of applications can be developed when bandwidth is no longer a constraint. There was no shortage of volunteers, either. 1100 towns applied, and over 200,000 individuals wrote letters to Google explaining why their town should be chosen.
When I read the 2020 estimate, which is in the most recent stimulus bill, I was beyond frustrated and decided to test my own internet connection. My download speed clocked in at a pathetic 4985 kbs/s, and I realized America might have the worst internet in the world. You can check yours here.
I apologize for sounding defeated, but our internet is slow and expensive and there is not a thing we can do about it. The government estimates that by around 2020, 100 million homes will have broadband speeds of 100mbs/s. That’s great; we have to wait a decade to catch up to the rest of the world, and how fast will their internet be by then? My bitterness began to swell, and it got worse when my pixilated Wildcats lost a hard fought game to the West Virginia Mountaineers in the Elite Eight. The video of that game could only be appreciated by the likes of Cubist painters Pablo Picasso or Georges Braque. Ignorance is bliss, and I understand that now. I should have just blindly paid the balance.
Hi everyone! My name is Trisha Weinberg and I just joined the gap intelligence team as an intern. I’m so excited to have found an opportunity like this to work in the field of public relations. I am currently a communication major hoping to transfer to UCSD this fall. If there is one thing I’ve learned so far about finding the perfect career, it’s that the key to success is gaining experience. I’m not sure what I want to do for a living and I don’t quite know when I’ll figure that out, so this internship is an ideal way to help me on my journey.
I’m originally from San Diego, a city I’ve come to love and appreciate so much more as I’ve gotten older. Maybe it’s because the majority of my time in LA for school last year was spent sitting in my car stuck in traffic!All I can say is I’m happy to be home; San Diego has everything I need and more.
In my spare time I like to read, shop, eat, attempt to cook, watch movies, and the list goes on. I have recently discovered the real joys of college thanks to my new favorite class, Wines of the World. I’m nowhere near a true aficionado but I have my hopes up.I also enjoy spending time with my friends and family as well as meeting new people and going new places. I love traveling and would eventually like to set out abroad; I’ll go anywhere at this point (preferably a nation with good wine!)
At this point in my life, I just want to have fun with everything I do and be happy.I am very lucky to have found an internship here at gap intelligence so I only hope I will bring as much to this company as much as it gives me!
Hello everyone, my name is Adrienne Akre and I’m the newest intern here at gap intelligence!I’m excited to be here and looking forward to sinking my teeth into this PR thing.I just started my final quarter at UCSD, where I am majoring in sociology.I know, it seems strange that I’m a sociologist interning for a marketing intelligence company, but after spending four years in the field, I’ve decided to give sociology a break.So basically, I’m still trying to figure out what I want to do in life.
I found gap through UCSD’s Academic Internship Program and instantly thought it sounded like a fantastic opportunity.I am hoping to learn as much as I can and give as much back to gap as possible.
I was born and raised right here in San Diego.After living in Marin County up in Northern California for a year, I realized that my heart was still in SD and I truly am a So-Cal girl.I live in Coronado with my boyfriend, almost six-year-old daughter (wow, time flies), and three crazy dogs.In my spare time, I like to relax with friends and family and try to get to the beach as much as possible, which is a lot when you live on an island.Much to my boyfriend’s dismay, living in Northern California gave me a taste for Indian food, so don’t be surprised if you catch the faint scent of curry as you pass by me!I’ll make sure to gargle after lunch, though!
Other than that, I’m just so grateful to have been given the opportunity to get my feet wet in the PR and marketing world.I’m thrilled to be here and hope to get to know everyone at gap very soon!
Apple last week launched its much hyped iPad tablet, selling approximately 300,000 units on the first day. The company also announced that at least one book was downloaded within several hours of the purchase of each unit. Several online blogs announced that the iPad would be the eReader market leader and called it the ‘Kindle Killer’. The device may be cool (although I think it is a giant iPod Touch!) and should help people reduce the number of times they switch on their good ole’ PC or notebook for web browsing, the iPad is certainly not a ‘Kindle Killer’. The technical reason for this is the iPad’s panel. The iPad features a 9.7-inch IPS LED display versus the commonly used e-ink panel in most eReaders. If you have not seen an eReader until now, an e-ink panel looks almost exactly the same as a printed page and has no backlight. What this means is that the device does not produce any glare, allowing one to read even in bright sunlight and making the panel easy on their eyes. However, unlike the backlit iPad, eReader users would still need to switch on their reading light if they were to read at night, which they would do anyway if they were reading an actual paper book. The iPad also gains an upper-hand when it comes to reading color e-content. e-ink panels currently lack support for color and only allow users to read in black and white, thus not being the ideal choice for reading magazines. The nascent e-ink technology also lacks the fast processing speed of the iPad. However, companies are working towards developing much improved and faster e-ink panels and these disadvantages are expected to be minimalized by the end of the year.
Can you do this with the iPad?
Other than the lack of an e-ink panel, there are certain other attributes of the iPad that make it less comparable to eReaders. The 24 ounce iPad weighs a good six ounces more than the 9.7-inch Kindle or twice as much as Sony’s Daily Edition. This could lead to increased strain when reading for long hours, while holding the iPad with one hand. At the time of the iPad’s launch, Steve Jobs announced that consumers could take a flight to Japan and use the iPad without recharging it, so an iPad’s battery would last approximately ten hours. Now ten hours sounds great in comparison to a netbook or a laptop, but it is less impressive when compared to 2 weeks or 336 hours of battery life provided by most standard eReaders.
Most recent surveys also confirm that a majority of expected iPad owners are mainly going to use the device for mobile productivity purposes. According to separate surveys from Comscore and ChangeWave Research, only 37 percent of people are going to read books on the iPad, while surveys from CNET and PriceGrabber.com put that number at an even lower 20 and 13 percent, respectively. Although the 300,000 users who have already bought the device and others who are going to buy it will surely help drive e-content, the iPad is expected to be mainly used for web browsing, checking emails, and entertainment purposes. With that said, the ‘cool factor’ associated with the Apple brand, the device’s multifunctional capabilities, and the company’s loyal core consumer base will continue to drive sales for the iPad, while taking some business away from dedicated eReaders.
As mentioned, the iPad offers far more capabilities than a standard eReader and certainly brings diversity to the eReader shelf, thus increasing competition in the still relatively uncompetitive market. Although Amazon has yet to officially release sales figures for its Kindles, the e-commerce giant is estimated to hold a majority share of the eReader market, which is likely to go down in several months due to the imminent diversification of the market. It is difficult to imagine that many consumers who own an iPad, including the 300,000 that purchased the device on Saturday, would also invest in a dedicated ebook reading device. The iPad will likely appeal more to the tech savvy population, people looking to replace netbooks, and the magazine and news reading population, while the ‘Kindle’ will continue to be used by reading enthusiasts. The iPad is the jack of all trades, being able to offer a little bit of everything to consumers, but the Kindles of the world are still the masters for ebook reading. I can best relate this to the cricket world (for those not familiar with cricket, it is similar to American Baseball!). Chris Cairns was the best all-rounder, but batting is still synonymous with Sachin Tendulkar.
