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Office system marketing and distribution strategies in Europe
be tapped easily "by anyone with a dish". Only good encryption of the satellite-transmitted data can provide any measure of security. In the access protection sector of the security market, the use of cardcontrolled access into computer rooms is already widespread in medium and large corporations. The study indicates that the main growth in this part of the market will be for biometric systems, which provide positive identification by measuring aspects of a person's morphology that are not susceptible to duplication - - fingerprints, blood vessel patterns in the retinal wall, voiceprint, and so on. These systems have error rates that are too high and ergonomic problems as well (how many people are comfortable subjecting their eyes to an infrared
scan?), but significant headway is expected to be made in these areas over the next ten years. Thus, the report projects that revenues derived from the sales of biometric systems will total $320 M by 1997, up from an anticipated $8 M in 1987. Prevention of electronic access, by capturing and decoding radiofrequency emissions, is a 'hot' market, according to the report. Spurred by government purchases of 'Tempest' equipment, which is shielded to prevent emissions, this market had bounded ahead over the past three years. IBM, Wang and Zenith/Inteq are doing very well in this segment, the report indicates, along with some some smaller companies such as Systematics which have focused on this class of product.
Office system marketing and distribution strategies in Europe Frost and Sullivan, USA (1987) $2450, 400 pp According to this report, today's electronic office equipment market in Europe is a market in a state of flux. The spectacular sales growth of 1980-85 continues in some sectors and is levelling off in others. Meanwhile, technological improvements keep increasing equipment performance, making it more featureheavy, more versatile, more portable. At the same time, unit prices keep falling. Everywhere, too, there is an emphasis on networks and systems - - not just a better mousetrap, but a better mousetrap that fits, that connects. With these trends have emerged new and more complex marketing distribution patterns. The report focuses on electronic typewriters, word processors, office personal computer, and copiers. Among the marketing/distribution changes identified in the report; direct selling is diminishing and will continue to diminish for all but the largest accounts. In today's European market, the costs of direct selling to
vol 10 no 4 august 1987
any but major accounts are prohibitive. OEM marketing agreements will continue to proliferate. Many companies have stopped trying to reinvent the wheel, choosing instead to supplement their own product lines with equipment from outside sources. Even IBM signed an agreement to market a Japanese desktop scanner rather than produce their own. Lines between the different types of organizations profiled in the report are becoming blurred. Is a company like Olivetti, which purchases large elements of its product lines from outside, a manufacturer, a distributor, or a systems integrator? It is now all of these. Personal computers continue their impressive growth, from no European office market at all in 1980 to 936 000 units sold in 198,5 ($3600 revenue), with a forecast of 4 100 000 units in 1990 ($6300 M revenue). The new personal computers, with more powerful microprocessors, are
Several security market segments are concerned with recovery after a fire or other disaster to the computer centre itself. Solutions for this type of problem involve having provisions for replacement computers at remote sites, while also making sure that backup data files are maintained away from the potential disaster scene. While this part of the market has done well over the past few years, it is a segment which is 'stimulated by headlines'. Although the trend toward distributed processing is expected to be a limiting factor, so far this has been a fairly successful business, and it is expected to continue to grow. (International Resource Development Inc., 6 Prowitt Street, Norwalk CT 06855, USA. Tel: (203) 866 7800, Telex: 64 3452) []
destined for new uses - - with network links giving multiple capabilities to persons at a single workstation, from running 'expert system,' based on artificial intelligence software; to accessing internal and external database files; to scanning, composition and printing. An estimated 25% of the European white collar workforce will have an electronic workstation by 1990. The market for copiers, though largely a replacement market, continues to grow at a rate of 10-15% peryear. Forecast: from 805 000 units in 1985 ($6300 revenue)to 1 202 000 units in 1990 ($6900 revenue). Word processor sales will increase from 89 000 units in 1985 ($386 M revenue) to 162000 units in 1990 ($430m revenue). But dedicated word processors are being squeezed in the marketplace between electronic publishing systems at one end and, at the other end, display typewriters as well as personal computers with word-processing software. They are destined for extinction in the new systems environment-- along with office equipment dealers who cannnot add value to their products. (Frost & Sullivan Inc., q 106 Fulton Street, New York, NY 10038, USA. Tel: 212233-1080, Telex: 235986) []
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scan?), but significant headway is expected to be made in these areas over the next ten years. Thus, the report projects that revenues derived from the sales of biometric systems will total $320 M by 1997, up from an anticipated $8 M in 1987. Prevention of electronic access, by capturing and decoding radiofrequency emissions, is a 'hot' market, according to the report. Spurred by government purchases of 'Tempest' equipment, which is shielded to prevent emissions, this market had bounded ahead over the past three years. IBM, Wang and Zenith/Inteq are doing very well in this segment, the report indicates, along with some some smaller companies such as Systematics which have focused on this class of product.
Office system marketing and distribution strategies in Europe Frost and Sullivan, USA (1987) $2450, 400 pp According to this report, today's electronic office equipment market in Europe is a market in a state of flux. The spectacular sales growth of 1980-85 continues in some sectors and is levelling off in others. Meanwhile, technological improvements keep increasing equipment performance, making it more featureheavy, more versatile, more portable. At the same time, unit prices keep falling. Everywhere, too, there is an emphasis on networks and systems - - not just a better mousetrap, but a better mousetrap that fits, that connects. With these trends have emerged new and more complex marketing distribution patterns. The report focuses on electronic typewriters, word processors, office personal computer, and copiers. Among the marketing/distribution changes identified in the report; direct selling is diminishing and will continue to diminish for all but the largest accounts. In today's European market, the costs of direct selling to
vol 10 no 4 august 1987
any but major accounts are prohibitive. OEM marketing agreements will continue to proliferate. Many companies have stopped trying to reinvent the wheel, choosing instead to supplement their own product lines with equipment from outside sources. Even IBM signed an agreement to market a Japanese desktop scanner rather than produce their own. Lines between the different types of organizations profiled in the report are becoming blurred. Is a company like Olivetti, which purchases large elements of its product lines from outside, a manufacturer, a distributor, or a systems integrator? It is now all of these. Personal computers continue their impressive growth, from no European office market at all in 1980 to 936 000 units sold in 198,5 ($3600 revenue), with a forecast of 4 100 000 units in 1990 ($6300 M revenue). The new personal computers, with more powerful microprocessors, are
Several security market segments are concerned with recovery after a fire or other disaster to the computer centre itself. Solutions for this type of problem involve having provisions for replacement computers at remote sites, while also making sure that backup data files are maintained away from the potential disaster scene. While this part of the market has done well over the past few years, it is a segment which is 'stimulated by headlines'. Although the trend toward distributed processing is expected to be a limiting factor, so far this has been a fairly successful business, and it is expected to continue to grow. (International Resource Development Inc., 6 Prowitt Street, Norwalk CT 06855, USA. Tel: (203) 866 7800, Telex: 64 3452) []
destined for new uses - - with network links giving multiple capabilities to persons at a single workstation, from running 'expert system,' based on artificial intelligence software; to accessing internal and external database files; to scanning, composition and printing. An estimated 25% of the European white collar workforce will have an electronic workstation by 1990. The market for copiers, though largely a replacement market, continues to grow at a rate of 10-15% peryear. Forecast: from 805 000 units in 1985 ($6300 revenue)to 1 202 000 units in 1990 ($6900 revenue). Word processor sales will increase from 89 000 units in 1985 ($386 M revenue) to 162000 units in 1990 ($430m revenue). But dedicated word processors are being squeezed in the marketplace between electronic publishing systems at one end and, at the other end, display typewriters as well as personal computers with word-processing software. They are destined for extinction in the new systems environment-- along with office equipment dealers who cannnot add value to their products. (Frost & Sullivan Inc., q 106 Fulton Street, New York, NY 10038, USA. Tel: 212233-1080, Telex: 235986) []
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