Race to the Future: Multi-Functional Printer Markets

A p r i l 2013

Race to the Future: Multi-Functional Printer Markets | April 2013

TABLE OF CONTENTS

Abstract ...... 3

Abbreviations ...... 4

Trends in the MFP Industry ...... 5

Differentiators for MFP Leaders ...... 6

MFP Market Drivers ...... 7

MFP Market Enablers ...... 9

Summary ...... 16

References ...... 17

Author Info ...... 21

Race to the Future: Multi-Functional Printer Markets | April 2013

Abstract To retain leadership positions and break through the clustering in the leadership zone, MFP leaders have been busy aggressively working on various strategies. What are the key differentiating factors that MFP leaders need to focus on in order to move ahead in today‟s clustered leadership positioning? In this whitepaper, the key market enablers that provide the key differentiators of the market-driving factors for MFP leaders to lead far ahead of their competition have been analyzed.

Race to the Future: Multi-Functional Printer Markets | April 2013

Abbreviations

Sl. Acronyms (Page No.) Full Form No.

1 MFP (All pages from 6-22) Multifunction Printer

2 OEM (6,7,8,13) Original Equipment Manufacturer

3 MPS (8,9,10,15) Managed Print Services

4 TCO (11) Total Cost of Ownership

5 SMB (12,14) Small to Medium-sized Business

Race to the Future: Multi-Functional Printer Markets | April 2013

1. There are many leaders, and Trends in the MFP Industry they begin to show clustering 2. Almost the entire MFP market is The globally-diversified MFP industry‟s OEMs rely on a combination serviced only with leaders and the next level major players or of in-house production and outsourced manufacturing. While the challengers or strong developed nations focus on innovations and research and performers. There are no new development, the labor-intensive MFP manufacturing has been players. primarily moved to the low-cost nations. As the workgroups in

developed nations have become saturated with MFPs, OEMs in these countries have looked to expand sales into developing markets. The worldwide hardcopy peripherals market was $15 Billion in Q4 2008, with shipments of 32.6 million units by the 13 printers and photocopy machine OEMs as the market players. The ratio of the market share held by the top five industry leaders has shown marginal fluctuations, and worldwide shipments have remained almost constant, with any fluctuations due to the world economic Source: Multifunction Products - United States International Trade Commission ITS-03, December 2009. scenario. With a close look at the matured MFP market analysis through Gartner‟s magic quadrants, IDC and Forrester‟s observations over the last five years, we come across two interesting key observations: 1. There are many leaders, and they begin to show clustering 2. Almost the entire MFP market is serviced only by leaders and the next level major players or challengers or strong performers. There are no new players. In July 2012, IDC noted, “As such, we don't typically observe wild fluctuations in market shares and shipment activity. Instead, much Source: Multifunction Products - United States International Trade Commission ITS-03, December 2009. of the market opportunity is based on an established landscape.” There is too much market clustering and a lack of differentiators; In January 2013, Walters & Shutwell questioned the analysts, “If we were all suffering from „marketing myopia‟?” It is very true that the market is suffering from marketing myopia. An emerging market like Vietnam posted 32% growth in Q4 2012. The analysts forecast the MFP business, from the changes observed in the developed nation‟s perspective though emerging markets, is the future market space for MFP makers. Other vibrant trends include:  Less innovation seen in the industry has reduced differentiators

 Smart devices, mobility and the cloud have forced rapid Source: IDC Reports adaption to market usage requirements Worldwide Hardcopy Peripherals Market  The highly demanding ECO-driven corporate policies of the

Vendors 4Q08 4Q09 4Q10 4Q11 4Q12 end customers and various customer/industry-specific

1. HP 41.0% 41.4% 42.5% 39.4% 38.5% applications needs drive the managed print services.  Will the strategy of acquiring or partnering with channels work 2. Canon 18.7% 19.4% 18.8% 18.7% 22.4% in emerging nations? 3. Epson 15.4% 15.9% 15.2% 16.9% 14.4%  Preferences toward low-end MFPs due to low cost and 4. 6.2% 5.1% 5.1% 5.8% 6.9% Brother improved printing performance 5. 5.0% 4.8% 5.3% 4.6%  Preference toward color MFPs due to low cost and better Samsung 5. 4.7% image quality Lexmark Others 14.0% 13.2% 13.7% 14.1% 13.1% TOTAL 100% 100% 100% 100% 100% Source: IDC Reports

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Market drivers are business Differentiators for MFP Leaders verticals of the future MFP market. They include managed The MFP market does see a significant change and it poses a print services, advancement in significant challenge for MFP leaders. With the changes in the customer service, and adoption global economic scenarios significantly impacting profit, along with to emerging markets stiff market competition, end customer‟s diverse need of workflow integrations and security needs, advancement in the technologies The market drivers are supported and user preferences toward smart devices and green technologies, by the market enablers that the shift toward the new market space in the east where the MFP include mobility and the cloud, leaders are going compete in future, MFP leaders have too much to globalization of the MFP tackle in order to retain their market positions. In this whitepaper, development process, and the future MFP market is predicted in the figure below. innovations in MFP technology

Managed Advanced Emerging Print Customer Market

Services and Service Adoption Solutions

Mobility and Cloud Market MFP Development Globalization Enablers Innovations in MFP Technology

Market Drivers

Future MFP Market Differentiators

Market drivers are business verticals of the future MFP market. They include: 1. Managed print services and solutions 2. Advancement in customer service 3. Adoption to emerging markets The market drivers are supported by the market enablers that include: 1. Mobility and cloud 2. Globalization of the MFP development process 3. Innovations in MFP technology As the factors above are inter-connected with emerging markets acting as the future playing field, the MFP market will undergo a revolutionary change in its business model. The leadership clustering will unfold itself to the sustenance established by the MFP makers through their respective disruptive innovations. In this whitepaper, we will deeply discuss market enablers and the differentiations they can provide to the market driver verticals of MFP leaders.

Race to the Future: Multi-Functional Printer Markets | April 2013

MFP Market Drivers The MFP market drivers managed print services, advancement in customer service and adoption to emerging markets will act as the key pillars of revenue business models for the MFP market. In this section, we will look at the importance of the key market drivers.

Managed Print Services and Solutions In 2013, MPS is expected to account for 35 percent of total revenues in the global MFP industry. Over the years, huge R&D investments by the MFP makers will flow into MPS. In 2011, the industry witnessed a disruption over the sales of the Xerox ColorQube with its solid ink technology and pricing strategy, which provided huge merits by measuring pixel cost of value of color from the traditional cost of color usage per page. Each of the leading MFP machine manufacturers offers software development kits that allow independent software vendors to create applications that are integrated into the machine‟s hardware and connect to a company‟s network. Most of these solutions are oriented toward securing information stored on smart MFPs, which is especially important for workgroups in the government, healthcare, education, and legal industries.

Industry-Focused MFPs, Printers and Applications As the healthcare industry is undergoing a major change with the evolution of smart medical devices, it has received a lot of attention from MFP makers, with a few like RICOH releasing healthcare- specific MFPs, while other MFP makers provide comprehensive workflow integration solutions. MFP makers have addressed only a handful of the healthcare needs. More Industry focused MFPs & solutions can play key roles in managing the documents in a variety of other sectors, including healthcare, education, and the government. This potential is still completely unexplored.

Advancement in Customer Service Despite the merger of the printer and photocopy machine industries into the MFP industry, the original pattern of print industry distribution through retailers of office equipment and photocopy machines from authorized dealers has remained relatively unchanged. Sales of low-end devices generate little profit for OEMs, and photocopy machines are most often leased from independent dealers or directly from the OEM due to their high cost of ownership. OEMs have been acquiring / partnering with independent dealerships to increase market footage. This consolidation of MFP distribution channels is proving to be significant, because larger OEMs may further increase their influence within the industry at the expense of their smaller competitors. Most importantly, it provides a direct connect with end customers and their needs.

Increased Customer Ease: Most of the MFP makers have an established customer service ecosystem through remote monitoring of the devices to reduce device downtime. They support auto

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detection of toner replacements; proactive analysis of the machine MFP Emerging failure. Enablement of mobility will be a key driving factor. If the Establishment Maker Country service engineers can be notified of system failures or monitor the Epson India 1982 data over a mobile, it will increase the remote maintenance service. The mobile enablement will act as a key differentiator, as they will Xerox India 1983 play a big factor in reducing the total cost for remote maintenance HP India 1988 through the use of cloud services. RICOH India 1993 Canon India 1997 Channel Support and Marketing: As photocopy machines are most often leased from independent dealers, an important part of Sharp India 2005 making a successful product for an MFP leader is to get a “buy-in” Kyocera India 2008 or acceptance from its channel partners. Xerox‟s ink-based platform Mita Konica with a multi-tiered pricing model for color pages is invested up front India 2010 Minolta to train, and educates its channel which rewards excellent results. Brother India Data n/a As the MFPs are used in a wide range of industries, the market

Source: MFP Maker’s Website needs will vary by specific industries. A close channel support and marketing the right needs to an end customer need will emerge as a differentiator. Further, it will emerge as a key differentiator and/or will become the de facto in emerging markets.

Customer Connect: As there is a huge clustering in the MFP leadership market space, customers see little differentiation. A marginal differentiation in terms of a handy feature specific to the end customer‟s industry or market does impact the decision-making factor. In recent years, many of the MFP leaders have focused heavily on the MPS market to improve their sales. Due to the economic slowdown and reduced R&D spending, the market has seen fewer innovations. MFP leaders will need to race toward two more specific areas of focus to mark their differentiations:  Reduce the huge pile of customer request backlogs and establish a quick response model  Increase product intelligence through customer experiences

Adoption to the Emerging Markets Canon established their India software development center in 1999, followed by a center of excellence in 2004 and a design center in 2008; Xerox established its India R&D center in 2009; Ricoh established its India R&D center in 2012. The objective of these organizations is to develop products suitable for the emerging markets. Emerging markets are still the market of the future, and still unexplored. The market needs and the business models the MFP makers deployed in the developed nations may undergo a complete change, and the industry may observe a new business which will suit the emerging markets. Focus toward emerging markets is not specific to the MFP market – there are many industries which try to focus on emerging markets. The MFP market can gain insight from other industries for a successful leap.

Race to the Future: Multi-Functional Printer Markets | April 2013

MFP Market Enablers

Mobility & Customer

Cloud Care

Solutions

MPS Architec Big ture Data SCM Anal Emergingytics Market

Innovation Automation

Influencing Factors in the MFP Market Space

If we consider the influence of MPS, mobility and the cloud, along with factors like the modular architecture and automation required in the MFP architecture, the market influencing factors affect the various phases of the MFP development lifecycle phases as identified in the diagram above. As the MPS impacts sales, the customer care solutions bring supply chain management integration and also provide the big data for analysis to derive product intelligence. The mobility and cloud in turn impact the customer care solutions. The architectural change and automation adapts the MFP maker to the changing needs of the market. Further, innovations and adoption to emerging markets will drive today‟s MFP leaders far ahead of their competitors.

Mobility and the Cloud From 2011 onward, there is a great market momentum that can be observed within the MFP market, where MFP leaders have been busy enabling their MFPs to work with Google/PIXMA Cloud Printing services. Basic mobile apps, which include printing, photos, images, etc., target the customer market and the enterprise mobile apps will target the printing of business documents like PDF, Microsoft Office Suite, etc., with integration of the enterprise works flow, security policies, etc. These apps are software applications built on high-end mobile OS like Android, BlackBerry, iOS, Symbian, webOS, Windows Mobile, Windows Phone 7, Bada OS, Tizen OS, Firefox OS, etc.

Bring Your Own Device (BYOD) BYOD is driving mobility, and employees will have an increased business need to access their enterprise resources from their own iPhone, iPad or Android-based Smartphone and tablets. As the mobile workforce increases, the need for corporate/enterprise apps

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will increase insignificantly. MFP leaders have enabled their initial step toward enterprise mobile apps, where the current enterprise apps aim to identify an MFP over the network, enable document printing through the cloud or receive a scanned document on a mobile device As the enterprise applications increase, each MFP maker will provide customized apps to various industrial sectors. The key challenges they encounter include:  The need to upgrade these mobile apps for the latest versions of the mobile OS  Every single enterprise app should be executable for a variety of mobile OS  The feature extendibility of the mobile apps will evolve as another competitive factor As more open source OS for the mobile platforms evolve, and with more low-cost smart phones and tablet hitting the market, the need for mobile apps to be interoperable with all these mobile OS becomes a basic need. As these mobile OS-based devices are targeted toward the emerging markets, the MFP leaders need to adapt quickly to the change. This directly projects the complexity ahead for the mobile apps of the future, and it also identifies the continuously-evolving market around which mobility will impact the MFP market‟s future. Hence, the ability to sustain and adapt to mobile market changes will act as a key differentiator for MFP leaders.

Thin MFP The evolution of mobility, the cloud which can be utilized for batch processing like image rendering, analyzing huge data using the Hadoop framework, and performing high-performance computing will certainly lead to a drastic transformation in the way MFP is utilized today. The huge set of software and hardware embedded into the MFP can be offloaded onto the cloud, thus trimming the MFP unit cost drastically. This can lead to a thin MFP, which can be the future MFP market where the TCO is heavily reduced. A few use cases which can create the disruption are:  A panel-less MFP, where the entire panel software is moved as a mobile app  High-performance computing for image rendering and data transformation algorithms embedded in the MFP firmware applications; hardware boards can be offloaded to the cloud  The multi-language OCR support offloaded to the cloud to generate editable office documents  Offloading the smart device connectivity on the MFP through a single mobility interface As the advancement in mobility and cloud will drive further changes, the concept of trimming the MFP unit cost by offloading the optional usage on to the cloud will be a turning factor for the emerging market. To achieve this goal, the MFP leaders will have to make their MFP architecture modular, where both the software and hardware can be selected based on the customer‟s business needs.

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Make your own MFP App Today, the end customers need an open architecture platform where they can create their own applications and integrate the MFP usage into their organization workflows. Such needs are huge and require MFP makers to provide a platform where the end user can create his own application and execute the MFP from a smart device or a web browser. The MFP software development approach which the customers or the developers adopt is the embedded approach or the Web service approach. Every MFP maker has tried to provide a customizable platform where the end customers can develop their own custom applications and run them on the MFP. The extent of customization is still limited, as the current MFP architectures of the MFP makers possess a huge scope of modularization. The ability of the MFP makers to unleash such deep customizable platforms would drive as a market differentiator.

Globalization of the MFP Development Process The MFP market has seen a global approach in the past over cost reductions by moving to low-cost emerging nations for the labor- intensive manufacturing process. The current tide of market demand due to mobility and the cloud, the market moving toward the emerging nations, the increased need for innovative MPS and the need for market innovations toward MFP operational technology compel the next phase of globalization in the MFP development process. By 2005, the MFP majors had started focusing on the emerging nations through their captive center establishments, initiating development outsourcing, sales office establishments, channel acquisitions and internal market analyses. Globalization of the MFP development process could add tremendous potential for the MFP makers toward their market capitalizations. Some of the leading thought processes which have driven the MFP makers to move toward globalization of the development process include: 1. Outsourcing non-core modules 2. Outsourcing market request and localization 3. Test process outsourcing

MFP Rollout through a Single Development Process As the preference for A4 MFP printers has increased comparatively over A3 MFPs, the SMB unit shows a hugely increased need to have A4 printers with the rich features of A3 printers. The MFP functionality like print, scan, copy and fax hold a multiplex relationship to the hardware units to achieve the functionality. A copy function uses scan and print hardware units, and the fax function needs scan, print and network hardware units. Many MFP makers today who evolved due to the merger of the photocopy and printer industry developed the multi-functionality of the MFP with an integrated firmware, an embedded application on top of the hardware and microcontrollers. As the number of features that need to be supported by the MFP firmware increases, the complexity of

Race to the Future: Multi-Functional Printer Markets | April 2013

accommodating new features today involves huge time and cost. Further, it has become costly to maintain such an integrated architecture firmware. The MFP makers today are pushed toward making modularized firmware architecture. The ability to establish modularized firmware architecture will provide multifold advantages to the MFP leaders  Less maintenance cost  Early rollout of A3 and A4 printers through a combination of the modular components  Streamline the development process globally, where each modular component can be developed in a suitable Geo based on factors like skill, cost and availability  Quick customization  Incorporate addition of new features  Optimize the performance and runtime memory requirements. Only a few MFP makers have achieved cost reductions and matured over the experiences toward their outsourcing strategies; much is still to be explored in the globalization of the development process. As the current development process between the core and non-core modules are tightly coupled, the MFP makers have a hard time establishing a smooth development process outsourcing. Further, with the focus on emerging markets, the modularization of MFP‟s firmware development will enable MFP makers to clearly define the core and non-core functional modules, and thereby enable more streamlined development and business support models for better cost merit and increased responsiveness.

Quick Development Rollout Early release of a product with latest technologies always provides initial market capitalization advantages. Concurrent product engineering: Like the Zen-in system of FujiXerox which enabled product development in less than a year. The ability to effectively manage concurrent product engineering with a global team is a key differentiator. Modular Architecture: Like the GW architecture of RICOH, the ability to roll out A3 and A4 MFPs through modular architecture will generate untapped market scenarios. Automation in Development: Automate the development process at various phases and reduce the total development time by introducing more parallel tracks in the development process. Some of the key automations which the MFP makers can incorporate in their development process to reduce their time to market include: 1. Device-independent test automation suite 2. Development of simulators 3. Design tools 4. Integrated product management tools

Increased Customer Connect Through a Globalized Process Every MFP maker tries to address major customer needs and high opportunity requests, and they hold a huge backlogged pile of unprocessed customer requests. In a clustered MFP market, the leaders can make marginal differentiation with these backlog

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clearances. New ideas may spring from these requests which can Rank Patent Assignee Country be disruptive. It would make sense for MFP OEMs to move their Grants Name incremental feature additions and backlog clearance out of the Samsung developed nations and offload them to a more value-creating 2 5081 Electronics Korea partner in nations like India. The modular MFP architecture would Co Ltd KR Canon K K enable them realize the same smoothly. This move would create 3 3174 Japan JP three-fold benefits to the MFP leaders: Panasonic  A marginal benefit through backlog clearance 5 2769 Japan Corp JP  An experienced workforce in developed nations to focus on Toshiba Corp 7 2447 Japan disruptive innovations JP Seiko Epson  Gain capabilities in emerging nations to speed customer 12 1461 Japan Corp JP request processing Ricoh Co Ltd 14 1410 Japan JP Innovations in MFP Technology Hewlett- Packard United 15 1394 The R&D capabilities result in patents. Canon has maintained its Development States Co L P ranking among the top five patented companies in the US for the last 25 years, and is a leader in terms of patents within the MFP 24 1118 Sharp K K JP Japan industry. MFP makers make it onto the list of the top 50 US patents United 25 1050 Xerox Corp States awarded year on year. Brother 28 1012 Kogyo K K Japan Eco-Focused Solutions JP Fuji Xerox Toshiba‟s MFP that can erase texts and images on a print, and HP‟s 45 686 Japan Co Ltd JP world‟s-fastest desktop color printer for SMB with 50% less energy Source: IFI CLAIMS and waste are a few current trends. The MFP leaders are looking at ECO solutions aiming for the entire product lifecycle. The major areas where industry leaders are focused are in use of recycled materials, reduction of power consumption and the end-of-life ecosystem. However, the cost-driven emerging markets have diverse needs which further drive the need for future innovations.

Reduction of Power Consumption Every MFP maker is vesting their R&D strength in power reduction. Konica Minolta‟s induction heating fusing technology reduces consumption by 30%. Xerox's emulsion aggregation (EA) technology requires around 25% less energy. Emerging market not only has the need for low power machines, but they also suffer from power fluctuations in their supply. Today there is an indirect cost involved with the deployment of stabilizers. Further, sudden power drops affect the system in use, leading to some damage in the unit and MFP down time. A battery-powered MFP, an MFP with a built-in stabilizer, or an MFP with a built-in inverter may be a disruptive idea for these markets. Similar ideas have received a good response in emerging markets for other industry manufacturers. A solar chargeable unit can be customized so that an MFP can be operational for business even during blackouts. There is a huge potential for MFP leaders to explore these untested markets and significantly differentiate themselves.

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Durability, Service Lifetime and Usage of Recyclable Materials Ricoh MFP‟s 100% recycled steel, Konica Minolta‟s recycled plastic with required strength and high fire-retardant properties, and Canon and Toray‟s bio-based plastic are few innovation trends. Further innovations are needed in the areas of eco-friendly solutions for the MFP so they can be deployed in non-air-conditioned environments or the high dust/smoke environment of emerging nations. These will act as key differentiators for the MFP leaders. Konica Minolta focuses on technology to extend the service life of the imaging unit, increase durability of the photoconductor, and increase the durability of the developer unit. Though this is a method toward an eco solution, it serves as a business proposition in the emerging market which is driven by the unit cost and usage lifetime. Innovations in the areas of increasing the durability of the MFP subsystems and technologies that would increase the service lifetime of the MFP subsystems would be a differentiator for market leaders. Usage costs act as a big decision factor in the emerging markets toward the decision to choose an MFP.

End-of-Life Ecosystem Most of the MFP makers have started deploying an ecosystem where the collection and recycle process of toners and ink cartridges is established. Epson, RICOH and a few other MFP makers have a proposition for the collection of used machines for recycling then taking the recycled machine back to the market. This model is evolving, and would give the MFP maker a more effective knowledge about the wear and tear on the MFP parts.  MFP makers can outsource to low-cost nations  Deploy a system to extract product intelligence to identify the most damaged parts across the recycled MFPs, and many other factors to further drive research and development Innovation-driven end-of-life ecosystem will help MFP leaders to develop a more robust MFP with long service lifetimes. This will lead the differentiation for MFP leaders.

Innovation through Customer Experience Extracting intelligence from the huge data gathered from remote monitoring systems, with the product under real time tests at various industries, would provide differentiators for the MFP makers. This is still an untapped potential for many MFP leaders. Product intelligence capabilities and the construction of a robust ecosystem will enable a better understanding of the emerging markets and will certainly provide key differentiators for MFP leaders in the future. Will a direct market approach prove disruptive to serve customers better?  It could be a disruptive idea for the MFP leaders to establish their own MFP kiosks and increase the user experience with the MFP. It will increase the penetration into every household, which is a very big market in the emerging nations.  Like ATMs revolutionized the emerging countries banking systems, establishment of refilling stations across various

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convenient locations where the customers can refill their cartridge and toners through an automatic process will be disruptive. This could be a new revenue model similar to the MPS which was experienced in the developed nations.

Product Reengineering to Emerging Markets Predominantly the emerging markets pose a different customer work environment, business works style, cost and energy considerations. As a first step, the MFP makers can look into reengineering the product to suit the emerging market usage environments.  The MFP‟s durability during prolonged usage in a dusty environment  Rough usage needs robustness of chassis, clutches in paper feeding units, etc.  MFP adoption to low-quality print media, as this is a need in emerging markets  MFP features which can be included/customized to enable better MFP adoption into customer workflow needs can be explored (like remote monitoring enablement over a mobile network which is more cost effective then landline or internet). Further, a complete value analysis and value engineering of the old MFP models can be done so as to improve the design with the latest technologies that have evolved over a period of time, and reduce the total BOM cost of the MFP parts so the same MFP can be sold at a lower price in emerging markets. Since this kind of activity impacts ongoing research, the MFP makers can offload this analysis and engineering work in the emerging nations, thereby achieving the objective with less development cost.

Reverse Innovation Globalization emerged initially whereby a product feature is trimmed down for the emerging market to sell the product an affordable price. As other industry leaders have seen a failure in this approach, the concept of reverse innovation has become widely successful in other industries. Today, global majors try to develop the product under stiff market conditions in emerging markets, which will bring further disruptive ideas and innovations to meet market needs. The same product developed for the emerging nations can be introduced into the developed market under a new untapped business potential. Reverse innovation will be a big differentiator for MFP leaders. A few MFP leaders have initiated steps toward this, and their successful outcomes will define the market leaders of the future.

Race to the Future: Multi-Functional Printer Markets | April 2013

Summary

The market drivers and market enablers are inter-connected, with emerging markets acting as the future playing field. The MFP market will undergo a revolutionary change in its business model. The leadership clustering will unfold itself to the sustenance established by the MFP makers through their respective disruptive innovations.

Race to the Future: Multi-Functional Printer Markets | April 2013

References

1. Multifunction Products - United States International Trade Commission ITS-03, December 2009. v 2. MFP Architecture: The New Frontier, Published by IDC in Dec 2012 3. IDC MarketScape: U.S. Shared, Networked Multifunction Peripherals for the Distributed Office 2012 Vendor Analysis Published by IDC in Jul 2012. 4. Magic Quadrants published by Gartner on the MFP market from 2008 to 2012. 5. Ricoh Group Sustainability Report 2012. Accessed the site early March 2013. http://www.ricoh.com/about/sustainability/report/pdf2012/all.pdf 6. To achieve the goals in the 17th MTP – RICOH. Accessed the site early March 2013. http://www.ricoh.com/about/sustainability/topinterview/03.html 7. Simultaneously achieving "business creation and integration" and "restructuring". Accessed the site early March 2013. http://www.ricoh.com/about/sustainability/topinterview/02.html 8. Creating Innovation :- http://www.ricoh.com/about/sustainability/topics/innovation/01_01 .html 9. Global Technology Development System. Accessed the site early March 2013. http://www.ricoh.com/about/sustainability/topics/innovation/02_01 .html 10. Vendor Landscape: Multifunction Printers by Infotech Research Group in August 2012. http://www.infotech.com/research/ss/it- vendor-landscape-multifunction-printers 11. Vendor Landscape Storyboard: Multifunction Printer by Infotech Research Group in August 2012. http://www.infotech.com/research/it-vendor-landscape-storyboard- multifunction-printers 12. Multifunction Printer Champions Invest in Innovation to Keep Up with Modern Work Environments by Infotech Research Group in August 2011. http://www.infotech.com/research/it-multifunction- printer-champions-invest-in-innovation-to-keep-up-with-modern- work-environments 13. Xerox ColorQube: Breaking New Ground in Office Color Printing by Infotrends in April 2011. http://www.office.xerox.com/latest/Q93AR-01U.PDF 14. PrInteract, Xerox Remote Services Overview. http://www.support.xerox.com/docu/xerox120_cd/nuvera_7_0_ugt a/english/rs.pdf 15. Xerox’s GIS Acquires Konica Minolta/Kyocera Dealer. http://industryanalysts.com/w/2012/12/10/xeroxs-gis-acquires- konica-minoltakyocera-dealer/ 16. Konica Minolta Acquires Ricoh Dealer http://industryanalysts.com/w/2013/01/08/konica-minolta-acquires-

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ricoh-dealer/ 17. Kyocera Mita India acquires copier division of Kilburn http://www.thehindubusinessline.com/industry-and-economy/infotech/kyocera-mita-india-acquires-copier-division-of- kilburn/article2362923.ece 18. Printers and copiers market grows 7 percent: Gartner by Press Trust of India, September 21, 2012 19. Samsung Solutions for all Vertical Markets. http://www.samsung.com/us/it_solutions/business/_pdf/Solutions% 20for%20all%20Verticals.pdf 20. MFP Network Printing Productivity. http://www.office.xerox.com/latest/NETWP-01.PDF 21. Affordable Color MFPs for the Office. http://pcworld.about.net/news/Apr052005id120217.htm 22. MFP Security Overview. http://www.samsung.com/us/it_solutions/healthcare/_pdf/5_MFP% 20Security%20Overview%20Rev0A.pdf 23. Ricoh Unveils MFPs and Printers Engineered for Healthcare. http://industryanalysts.com/w/2013/03/04/ricoh-unveils-mfps-and- printers-engineered-for-healthcare/ 24. Multifunctional Products and Printers for Healthcare. http://www.ricoh- usa.com/products/docs/pdf/brochures/healthcare_optimized/Health CareOptimized.pdf 25. Sharp’s Health Care - MFPs & Printers. http://www.sharpusa.com/ForBusiness/GovernmentAndCommerci alMarkets/Healthcare/MFPsPrinters.aspx 26. Konica Minolta to Exhibit EnvisionIT Healthcare Solutions at HIMSS 2013 http://www.buyerslab.com/Solutions/News/February- 2013/Konica-Minolta-to-Exhibit-EnvisionIT-Healthcare-So 27. Konica Minolta’s Vertical Sales Sheet – Healthcare Industry http://www.biz.konicaminolta.com/solutions/uds/pdf/Vertical_Sales _Sheet_Healthcare.pdf 28. Konica minolta’s healthcare applications. http://kmbs.konicaminolta.us/wps/wcm/connect/47635d4d-0a3c- 418e-92bc- 2b9af83871a4/FaxPress_Healthcare_Vertical_Market_Brochure.pd f?MOD=AJPERES&CACHEID=47635d4d-0a3c-418e-92bc- 2b9af83871a4 29. Lexmark Clinical Assistant. http://www.systemconcepts.com/pdf/ca_overview.pdf 30. HP Imaging and Printing Solutions for Healthcare http://www.hp.com/large/ipg/gateway/pdfs/ipg_solutions_brochure .pdf 31. DMS LINK 4.0 FOR HEALTHCARE http://www.4theoffice.net/images/DMS_20Link_Healthcare_datash eet.pdf 32. Toshiba Launches World's First Eco-Friendly MFP System That Can Erase Images and Text on the Prints. http://www.businesswire.com/news/home/20121205005612/en/Tos hiba-Launches-Worlds-Eco-Friendly-MFP-System-Erase 33. Konica Minolta Wins “Eco Mark Award 2012” Bronze Prize.

Race to the Future: Multi-Functional Printer Markets | April 2013

http://www.konicaminolta.com/about/releases/2013/0111_01_01.ht ml 34. Eco Vision 2050 and the Medium-Term Environmental Plan 2015 http://www.konicaminolta.com/about/csr/environment/report/2009/ pdf/e2009_e_04-07.pdf 35. bizhub ECO Guide http://www.konicaminolta.be/fileadmin/CONTENT_local/bizhub_ ECO_Guide_A5_150dpi.pdf 36. Induction Heating Fusing Technology. http://www.konicaminolta.com/about/research/env- technology/index.html 37. Simitri Toner http://www.konicaminolta.com/about/research/env- technology/toner.html 38. Epson: Exceeding in Sustainability Environmental Vision 2050 http://content.epson-europe.com/environment/environmental- vision/ 39. Xerox: Energy Efficiency Initiatives for Reaching a 2012 GHG Reduction Goal. http://www.epa.gov/climateleadership/documents/xerox.pdf 40. Canon’s Environmental Technologies. http://www.canon.com/technology/canon_tech/explanation/env.htm l 41. 3 kinds of ECO which RICOH offers. http://www.ricoh.com/tgos/detail2_3.html 42. The Mobile Business Printing Landscape: Assessing the Opportunity. http://www.office.xerox.com/latest/SOLWP-06U.pdf 43. Konica Minolta Delivers Updated Version of its Free App for Android Mobile Devices to Connect with Cloud Services or Existing File Servers http://www.konicaminolta.com/about/releases/2013/0218_01_01.ht ml 44. KYOCERA DOCUMENT SOLUTIONS INTRODUCES MOBILE PRINT APP http://www.kyoceradocumentsolutions.co.uk/index/about_us/press/ press_releases/press_releases_detail.L3ByaW50ZXJfbXVsdGlmd W5jdGlvbmFscy9uZXdzLzIwMTIva3lvY2VyYV9kb2N1bWVudF 9zb2x1dGlvbnMy.html 45. Xerox Mobile Print. http://www.office.xerox.com/software- solutions/xerox-mobile-print-solution/enus.html 46. Brother’s Google Cloud Print.http://download.brother.com/welcome/doc002896/cv_eng_gc p.pdf 47. HP’s MagCloud. http://www.magcloud.com/learn 48. Cloud Printing Alliance. http://www.cloud-printing- alliance.com/en/menu/Home.aspx 49. Why MFPs Matter to IT- part1. http://www.office.xerox.com/latest/YNWWP-02.PDF 50. Why MFPs Matter to IT- part II http://www.xerox.com/downloads/usa/en/i/IT_Part2_WhyMFPsMa tterIT_Environment.pdf 51. Why MFPs Matter to IT- part III http://www.xerox.com/downloads/usa/en/i/IT_Part3_WhyMFPsMa

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tterIT_BusinessProcesses.pdf 52. Why MFPs Matter to IT- part IV http://www.xerox.com/downloads/usa/en/i/IT_Part4_WhyMFPsMa tterIT_Security.pdf 53. OCR Connector. http://www.ambersoft.net/download/brochure_OCRConnector.pdf 54. Taking MFP Applications in the Office to the Next Level. http://www.biz.konicaminolta.com/technologies/best/pdf/bEST_W hitepaper.pdf 55. A Generation-Selection Process of Product Architecture. http://www.gbrc.jp/journal/abas/pdf/ABAS7-1.pdf 56. HP PageWide Technology. http://www.hp.com/united- states/campaigns/officejet-pro- x/media/HP_PageWide_Technology_Whitepaper.pdf 57. History of Computer Printers. http://gadgets.softpedia.com/news/History-of-Computer-Printers- 032-01.html 58. A 15-year history of Digital Printing technology. http://www.wilhelm-research.com/ist/WIR_IST_2006_09_HW.pdf 59. National Innovation Strategy Study. http://innovation.my/pdf/innovating_formulation_of_nis/Stimulatin g%20Innovation.pdf 60. Canon Captures Overall Brand Leader Ranking for the Past 13 Years. http://usa.canon.com/CUSA/assets/app/html/market_share/copier_ MarketShare_Brochure_HiRes.pdf 61. IFI CLAIMS® 2012 Top 50 US Patent Assignees. http://ificlaims.com/index.php?page=misc_top_50_2012 62. Canon group 10-year summary. http://www.canon.com/about/business/outline/10years_group.html 63. Research and Development Q&A. https://www.ricoh.com/about/company/technology/qa/ 64. From Sashimi to Zen-in：The Evolution of Concurrent Engineering at Fuji Xerox. http://www.jaist.ac.jp/ks/labs/umemoto/Fuji-Xerox.pdf 65. Brother Industries, Ltd and consolidated subsidiaries Year ended March 31, 2012. http://www.brother.co.jp/pub/investor/annual/pdf/2012/notes_to_co nsolidated_financial_statements.pdf 66. New Mid-term Business Strategy "CS B2105" Launched by Brother Group. http://www.brother.co.jp/pub/investor/annual/pdf/2011/special_feat ure.pdf 67. Konica Minolta Group Medium Term Business Plan. http://www.konicaminolta.com/about/investors/pdf/plan/plan_2013 .pdf 68. Worldwide Hardcopy Peripherals Market Declined 4.5% in the Fourth Quarter But Maintains Positive Growth for 2011, According to IDC http://www.idc.com/getdoc.jsp?containerId=prUS23322412 #.UVoK26K9m-k

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69. Worldwide Hardcopy Peripherals Market Shipments Grow 7% Year Over Year in 4Q10 to Highest Levels Since 2007, According to IDC. http://www.idc.com/about/viewpressrelease.jsp?containerI d=prUS22734111§ionId=null&elementId=null&pageT ype=SYNOPSIS#.UVoLA6K9m-k 70. Worldwide Hardcopy Peripherals Market Poised to Begin Slow Recovery in 2013 Following Double-Digit Decline in 2012, According to IDC http://www.idg.com/www/pr.nsf/ByID/MBEN-94WQVT 71. Worldwide Hardcopy Peripherals Market Returned to Year-Over- Year Growth in Fourth Quarter, Ending Six Quarters of Decline, According to IDC. http://idg.com/www/pr.nsf/ByID/IDGC- 8MBQPA 72. Worldwide Hardcopy Peripherals Undergo Double-Digit Decline in the Fourth Quarter of 2008, According to IDC. http://www.pressreleasepoint.com/worldwide-hardcopy- peripherals-undergo-doubledigit-decline-fourth-quarter- 2008-according-idc 73. Vietnam Printer and MFPs Recorded 32% Growth 2012 Q4, Continued Growth in 2013 Despite "Lukerwarm" Economy. http://www.idc.com/getdoc.jsp?containerId=prVN23999613 #.UVo526K9m-k

Author Info

Kidambi Narayanan works with HCL Japan, Ltd. in the role of a Solution Expert. He has over 14 years of IT work experience with more than 13 years of experience working with Japanese OEM clients on embedded application and driver/BSP layer development. He has been working with the multi-functional printer industry for the past 5+ years.

Hello, I’m from HCL’s Engineering and R&D Services. We enable technology-led organizations to go to market with innovative products and solutions. We partner with our customers in building world class products and creating associated solution delivery ecosystems to help bring market leadership. We develop engineering products, solutions and platforms across Aerospace and Defense, Automotive, Consumer Electronics, Software, Online, Industrial Manufacturing, Medical Devices, Networking & Telecom, Office Automation, Semiconductor and Servers & Storage for our customers. For more details contact [email protected] Follow us on Twitter: http://twitter.com/hclers Visit our blog: http://www.hcltech.com/blogs/engineering-and-rd- services Visit our website: http://www.hcltech.com/engineering-services/

About HCL About HCL Technologies HCL Technologies is a leading global IT services company, working with clients in the areas that impact and redefine the core of their businesses. Since its inception into the global landscape after its IPO in 1999, HCL focuses on “transformational outsourcing” underlined by innovation and value creation, and offers an integrated portfolio of services including software-led IT solutions, remote infrastructure management, engineering and R&D services and BPO. HCL leverages its extensive global offshore infrastructure and network of offices in 31 countries to provide holistic, multi-service delivery in key industry verticals including Financial Services, Manufacturing, Consumer Services, Public Services and Healthcare. HCL takes pride in its philosophy of “Employees First, Customers Second,” which empowers our 84,403 transformers to create a real value for our customers. HCL Technologies, along with its subsidiaries, has reported consolidated revenues of US$ 4.5 billion (Rs. 24,709 crores), as on TTM ended Mar 31 '13.

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About HCL Enterprise HCL is a $6.3 billion leading global technology and IT enterprise comprising two companies listed in India - HCL Technologies and HCL Infosystems. Founded in 1976, HCL is one of India‟s original IT garage start-ups. A pioneer of modern computing, HCL is a global transformational enterprise today. Its range of offerings includes product engineering, custom and package applications, BPO, IT infrastructure services, IT hardware, systems integration, and distribution of information and communications technology (ICT) products across a wide range of focused industry verticals. The HCL team consists of over 93,000 professionals of diverse nationalities, who operate from 31 countries, including over 500 points of presence in India.

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