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(Weymouth, MA) September 13, 2000…The large format digital printing and electronic display markets have a new tool to fortify the financial bottom-line of both its suppliers and end-users. This tool -- called "Pay-per-Use Products-Services" -- is the focus of a new consulting affiliation between the Visual Communications Technologies Consulting Service (VCT) at CAP Ventures, Inc. and the non-profit OEM Product-Services Institute, Inc. (OPI) of Lewisburg, PA. The term "Product-Services" means that a manufacturer or distributor of goods literally turns their products into a service. This can be done by bundling the sale of the machine, inks and media – or an electronic display -- with such services as field and technical support, installation, training, product and software upgrades and the de-commissioning of obsolete equipment. The "service" in the Product-Service model can be sold on a "pay-for-use" basis, so that end-users enjoy lower upfront capital requirements and market suppliers tap into regular, dependable cash streams that previously were not available to them. "Many of the smart companies in our market are considering options in what we call ‘pay-per- use," said David Williamson, VCT director. "Leading suppliers in the large format printing market, such as Hewlett-Packard, already are experimenting with Pay-per-Use Product-Services programs in Europe." "Our affiliation with OPI gives our clients, who are major suppliers to these markets, the ability to drill down into the hard details of re-orienting their organizations away from the traditional offerings of products and services and moving to delivering innovative and profitable Pay-per-Use Product-Services solutions to their customers." OPI is guided by its executive director, Ron Giuntini, considered one of the world’s leading experts in the pay-per-use business model as successfully implemented today by companies from Boeing to General Electric to Cisco Systems. "The pay-per-use model may not be right for every large format market supplier. But those companies that embrace it will see a considerable positive impact on their revenue growth, profit margins and earnings stability, once they understand the mechanics of executing our strategic insights," Giuntini noted. "Organizations that are early adapters in embracing the pay-per-use model, will experience, over the long run, superior financial performance and customer satisfaction compared to their competitors," Giuntini said. Current VCT clients will be receiving a research paper in October 2000 on "Pay-per-Use: Strategic Insights to Protect Your Position in the Value Chain." Authored by Giuntini and the OPI, Giuntini commented that this research would focus on "the value proposition that a supplier must deliver to an end-user" and would provide a top-line overview on the income statement, balance sheet and cash flow financial impact of pay-per-use upon suppliers and their customers. Also discussed will be new ways to recognize revenue and compensate a company’s sales force. "This affiliation between our VCT consulting practice and OPI is another example of our commitment to anticipating our customers’ requirements," said CAP Ventures managing director, Charles A. Pesko, Jr. " We see the large format market from all sides, and thus, we are in a unique position to help clients navigate the impressive opportunities that come from new business models such as pay-per-use." The Visual Communications Technologies Consulting Service is one of nine service areas now offered by CAP Ventures Inc. VCT currently provides annual retainer packages to clients in two areas: large format digital printing (LFDP) and large format electronic displays (LFED.) For more information on VCT and its market research and consulting services, please contact Scott Phinney via e-mail at . CAP Ventures is a strategic consulting firm for providers and users of business communication technologies and services. We deliver the key research, analysis, forecasting, benchmarking, counsel, training and education and implementation to both leverage market opportunities and make a competitive difference in our clients’ business. Additional information about CAP Ventures is available at www.infotrendsresearch.com OPI (the OEM Product-Services Institute) is in its third year of operation, and is dedicated to the collection and dissemination of knowledge that assists capital goods Original Equipment Manufacturers (OEMs) in evolving into becoming suppliers of Product-Services. More information about OPI is available at www.oemservices.org |
