MULTI-FUNCTION DEVICES: Multiplying Business

The multi-function devices (MFDs) no longer resembled its avatar of
yesteryear. During the year, the device gradually became an important component
of the workflow process rather than just a device that could do more things than
one.

Also MFDs managed to dispel the common myth that if one of their functions go
down, the entire unit stops working.

GOING GREAT GUNS

Among other reasons, good purchases from corporate houses and the government
too contributed in making MFDs a much sought-after product. Even SME and SOHO
segments were seen adopting this product with vigor. Offering the reason,
Gurjeet Singh, Director, OA Compserve, says, "This is because of the
integration that the device offers and the low initial cost of
acquisition."

EYE-CATCHING ACTION Single-point solution  Ease of use  Increase in productivity Simpler processes (for instance, fax directly from a PC)

While smaller workgroups typically went for the inkjet variety, bigger
organizations opted the laser version. Therefore it came no surprise that the
inkjet variety outsold the laser version by a huge margin.

An important factor for inkjet’s success was also its low initial cost of
acquisition. Its ease of maintenance and the fact that color printing could be
offered as against the predominantly black and white laser printing also worked
in the former’s favor.

EVOLVING MFDS

During 2002-03, market saw new MFD models being rolled out. These had the
capabilities to e-mail, send faxes over the Internet or i-fax, and were equipped
with virtual mail boxes for users. Says M Lakshmi Narayan Rao, Assistant
Director-Marketing, OSS Value, Canon India, "The MFD evolved to be the
communication hub and emerged as a device handling the entire data communication
in an office."

Most devices that were rolled out in the the market came with some level of
redundancy built in, which meant that if one function of the machine went down,
would still continue to perform other tasks.

Vendors in the MFD space too went into in an overdrive to ensure that the
value proposition of the product was communicated well to the end-customer and
the channel.

CRITICALITY OF SUPPORT

Since the MFDs evolved to take up the more mission-critical tasks under its
fold, the need for instant service and support also became prominently
highlighted. The challenging task for both vendors and partners in building an
effective support infrastructure was to enable the service engineers to make a
transition from a copier mindset to an IT mindset.

With the MFDs becoming more complex, partners realized that sales was only
possible through the understanding of the business applications that the machine
could deliver.

IDC expects a growth of 150% for the inkjet and over 70% for laser MFDs in
the year ahead. And this sure should bring in a feel-good factor for those
dealing in MFDs.