Printing as a Service, a win-win innovation for HP and customers

Text by Yang Song

The “subscription system” of hardware products has swept into the field of printers.

HP is a global leader in the field of print imaging.

In recent years, HP has further innovated on the basis of the traditional “buyout” sales model, and launched a contract model for a wider customer group – printing as a service .

“We bundle printers, consumables, and services together. The one-stop contract model allows customers to see a service-oriented product.”

Wang Guotao, general manager of HP Greater China Consumables Division and General Manager of Greater China Printing Services and Solutions Products Department, said that for customers, the new model has reduced the tedious links such as costly purchase of printers, management of consumables, and maintenance. Increase productivity.

This is equivalent to directly hitting the essence of customer needs – the ultimate purpose of purchasing a printer is to obtain printing services.

Under the contract model, customers only need to pay a certain fee and get the service directly, which is not much different from buying other goods online.

From selling printers to providing one-stop service, HP has made customers’ printing costs more transparent and greatly improved their experience through innovative business models.

Standardized service

In 1996, Wang Guotao joined HP. In the past 26 years, he has experienced the development and growth of HP printing in the domestic market and has profound insights into the entire industry.

“The transition from buyout to service must be a trend, not just in China, but all over the world.”

Wang Guotao said that HP, as a leader in the printing industry, wants to gain a foothold in the fiercely competitive environment, and must have forward-looking predictions and be able to see the industry trends in the next three years.

Based on the analysis of industry trends, HP developed new products early and strengthened the integration of software and hardware. This is a standardized intelligent printing service product. Customers do not need to build their own IT team, etc., and can obtain a complete set of services through online “subscription” .

Taking printing A4 paper as an example, the 407nk model is used, 1000 sheets are printed per month, the package contract period is 36 months, and the monthly price is 149 yuan.

If the printing volume of the package is not used up in the current month, the remaining pages can be carried over to the next month, and the remaining printing volume of the previous month will be used preferentially in the next month.

Hewlett-Packard can launch standard printing service products, is “the right place and the right people, together.”

Wang Guotao said that “time” refers to the fact that the Internet technology is becoming more and more mature, which can realize the automatic dispatch of consumables.

According to the data, “Huiyin” is based on IoT technology, and provides active consumables delivery and active on-site maintenance services based on intelligent algorithms through an integrated digital business platform, closely coordinated operation management, and a data-driven efficient supply chain .

“Location”, is that HP has a rich product line. Including hardware printers, original consumables, as well as a large maintenance team and a complete industrial chain such as recycling.

Huiyin provides customers with a convenient and high-quality service experience by integrating and providing a complete solution that integrates services, software, hardware and supply.

“People and people” means that customers have a strong demand for experience upgrades. Wang Guotao, for example, customers are accustomed to using smartphone apps for office work, but in the field of printers, they do not have a complete software team and do not know how to solve the problem.

Through the integration of its resources, HP Printing launched a one-stop intelligent printing service solution to directly address customer pain points.

transparent cost

For printer customers, the cost of contract-based standardized products is transparent.

Deterministic spending, in an uncertain market environment, means that business management operations become more efficient and agile.

Wang Guotao took the chain printing shops as an example. These enterprises mainly face two major management problems, “one is front-end procurement, and the other is back-end management and operation”.

Wang Guotao, General Manager of HP Greater China Consumables Business Unit, and General Manager of HP Greater China Printing Services and Solutions Product Department

In terms of procurement, companies need to invest a huge one-time cost to open a store as a fixed asset investment. For customers, in the process of investment, there is the risk of capital occupation, and the return period is long.

In addition, when the printer is purchased, the administrative expenses are not a small expense.

If the customer purchases 1,000 printers, the procurement and storage of consumables, as well as the subsequent replacement and recycling management, also need to hire specialized personnel.

For print shop owners, a large number of printers are scattered in different storefronts. Even if there are operation and maintenance personnel, it is difficult to grasp the operation status of the printers in real time, and it is impossible to supervise whether there is any waste in the printing process of employees.

“There will be a lot of hidden costs of management and costs that may be wasted.” Wang Guotao said that for those “invisible costs” pain points, customers need complete printing solutions.

Huiyin Smart Printing Service is an enterprise-focused smart printing service based on the IoT Internet architecture. It can help customers transform from print management 1.0 to print management 2.0, making print management transparent and stable, and more efficient for business.

· The equipment purchase plan is flexible, and the service plan can be adapted as needed.

· In terms of product management, the mobile phone can monitor in real time, and the printing situation can be seen at a glance.

· Decentralized equipment management, unified original factory gold service door-to-door, saving time and effort, professional and thoughtful and more secure.

· Cost and procurement are unified and standardized, intelligent settlement is more transparent, color printing costs are more controllable, and automatic delivery reduces waiting time.

· The equipment is maintained in the later stage, the service is escorted throughout the whole process, and the status is fully qualified in real time.

“The whole process from the investment of fixed assets in the early stage, the procurement of consumables, maintenance services, to the management at the back is clearly visible, and it can be seen on the App.”

Wang Guotao said that Huiyin turned the large one-time investment of customers into “daily expenses”; the “confused accounts” managed by Zengmen printers became clearer and real-time feedback on the App, thus saving a lot of money for enterprises hidden costs.

A win-win innovation model

Under the contract model, it also contributes to HP printer internal service innovation.

“Customers received ‘Three Original’ products – Original HP Printers, Original Consumables, and Original HP Gold Care.”

Wang Guotao said that HP packs all products into a service package, which is a brand new experience for customers, and HP has a stronger stickiness with them. “We have a two-way choice and win-win situation with our customers.”

In the past year, the HP Printer China team has been exploring new models and continuously improving products until they can promote nodes on a large scale in the market.

Wang Guotao said that Huiyin can apply a variety of scenarios to provide customized service solutions and suggested printer models for enterprises in different industries, including hospital outpatient clinics, retail branch offices, corporate headquarters, as well as financial insurance and public offices. Service counter, hotel office, Internet office, etc.

With the rapid development of cloud computing and Internet of Things technologies, the contract model has become the general trend.

According to IDC data, 45% of the world’s office printing equipment in 2021 will be shipped through the “printing service” contract model.

The contract model has greater potential for development in the Chinese market. “The adoption and acceptance of new technologies is faster than in foreign countries.”

A iiMedia Research survey shows that there is a significant trend in Chinese companies using digital systems.

Nearly 70% of enterprises have a strong desire for digital transformation. Digital office is the starting point and foundation of digital transformation . Enterprises have huge demand for efficient intelligent office equipment.

According to Wang Guotao, customers who use Huiyin in the early days have a high rate of contract renewals after expiration, and they are also more satisfied with the quality of printing services.

“After the customer experience, the speed of acceptance and dissemination should be very fast.” She said that HP is optimistic about the prospects of the service printing business model, and believes that it is a “blue ocean” market.

HP will continue to promote the printing innovation business and accelerate the market penetration rate.

Wang Guotao believes that as long as customers feel that the new model saves management costs and enjoys first-class service, the market share of HP printers will naturally be consolidated and enhanced.

Image credit: HP Printing