Recapping the 2018 One Canon Event

Company Is Well Positioned for Growth

02/26/2018

 

Canon U.S.A. held its annual One Canon Event for press and analysts in mid-February to profile the company and announce several initiatives for 2018. The event provided many insights about the company and opportunities to network with Canon executives and managers.

 

Canon U.S.A. Growing

Toyo Kuwamura, Executive Vice President and General Manager of the Business Imaging Solutions Group (BISG) and Chief Executive Officer of Canon Solutions America (CSA), noted that Canon Inc. worldwide revenue was up 20% thanks to a combination of organic growth and acquisitions (Toshiba Medical Systems). Among Canon’s four major business segments printing and office equipment and solutions account for approximately 45% of the company’s sales.

 

Toyo Kuwamura opened the event with stats about revenue for Canon Inc. as a whole and BISG in particular.

Drilling into the BISG unit, Kuwamura noted that 2017 revenue for the division showed 1% growth in a shrinking market, with year-over-year unit gains in the enterprise segment (A3/A4 printers and MFPs) of 2%, production printing (up 7%) and commercial printing (up 20%, albeit on a smaller base).

 

Production Printing Systems and Large Format Solutions

Canon highlighted its recent success with production inkjet printing systems and large format printers, including:

 

  • 2017 high-speed inkjet placements were up 22% for the ColorStream and 52% for the VarioPrint i300 (a total of 84 devices installed in the US)
    • New Chromera inks installed in 48 ColorStream systems

 

  • Installed the first ProStream 1000—a 22" wide roll-fed press running at 262 feet per minute at 1200 dpi—in the US at Darwill in the Chicago area earlier this year and will install a second device in February

 

  • Canon expects to install four additional ProStream devices in the first half of 2018 in the U.S.

 

  • 32 installs of the new VarioPrint 6000 Titan black & white toner press in 2017 (52% increase in MIF)

 

  • Confirmed a September 2018 launch for its “Voyager” high-end B2 sheet-fed inkjet press; the press will reportedly run at speeds up to 3,000 sheets per hour at 2,400 dpi

 

  • Canon now has over 200 customers for the Colorado 1640, a 64" roll-to-roll large-format printer based on its UVgel technology
    • Canon intimated it will debut a 10-foot wide device based on the Colorado by year’s end

 

  • Achieved 140% growth in low-volume CAD units, and 5% growth in overall CAD units in 2017 versus 2016 primarily based on the success of its TX line

 

  • Arizona units continue to sell well with a 68% increase in placements in 2017 vs. 2016

 

Channel Success

Mason Olds, Senior Vice President and GM BISG, was upbeat about Canon’s success selling through the U.S. office equipment dealer channel, citing seven consecutive years of growth.

 

  • Almost $1 billion of sales through the office equipment dealer channel in 2017, up 3% from 2016

 

  • Around $300 million of sales through retailers including Amazon, Staples, Office Depot

 

  • A total of 28% growth in dealer channel sales from 2011 to 2017, especially among the top 50 dealers

 

Canon noted the fierce competition in keeping top dealers and challenges of driving incremental sales through the channel. Ryan Jones, the General Manager from long-time Canon dealer American Business Machines out of Bakersfield, CA, indicated the company is now competing in larger deals by selling Canon’s uniFLOW scan and print management software. He also stated the company had expanded into security by carrying the Axis Communications (a Canon company) line of cameras and video management software.

 

Global Managed Services

John Reilly, Senior Vice President, announced the formation of the Global Managed Services (GMS) business unit. GMS combines the BISG Global Services Division and the CSA Enterprise Managed Services Division. The objective is to do what is best for Canon and potential customers as opposed to what’s best for each direct-sales business unit. Canon is focused on “tearing down walls” to allow dealers to go after major accounts directly and partner with Canon where it makes sense.

 

This announcement was fitting under the theme of “One Canon,” although we view it as a first step toward a truly integrated global offering. With Canon Business Process Services (a wholly-owned subsidiary of Canon and sometimes a competitor to GMS in North America) as well as the Business Services team in EMEA operating outside of this Global Managed Services umbrella, there is room for further integration in the future.

 

Canon Ups the Ante for Document Security

Pete Kowalczuk, President, Canon Solutions America, unveiled two significant partnerships to expand device and document security:

 

Vera Security, Inc.

  • The Vera platform enables customers to secure any kind of data (documents, email, video, images, etc.) and then track, audit, and manage access in real-time, no matter where the data travels.

 

  • CSA has an exclusive relationship in the print/document market to resell Vera’s data security platform in North America.

 

  • Canon is planning to integrate the Vera security engine with Canon’s uniFLOW and Therefore solutions, as well as to develop an MFP-embedded MEAP application.

 

Agile Cybersecurity Solutions, LLC

  • CSA has instituted a referral partnership with Agile Cybersecurity Solutions (ACS), which provides a wide range of security consulting services including vulnerability assessments, penetration testing, and incidence response if a breach has occurred.

 

  • Agile also offers virtual CISO (Chief Information Security Officer) services billed on an hourly basis as needed for organizations that require some C-level support but that cannot justify the expense of a full-time CISO.

 

  • ACS can also help clients meet data compliance regulations (e.g. HIPAA, GDPR).

 

 

Canon has a large and growing presence in many key segments of the office and production printing industry. The company has a deep product line based on proprietary technology that it continues to invest heavily in. Canon also has a strong brand and go-to-market assets including direct sales, professional services, robust dealer channel, and presence in retail and on-line channels. The company has made important acquisitions (Axis Communications, 2015; Toshiba Medical Systems, 2016) to diversify beyond its core imaging and office equipment business and remains well positioned for growth.