Lith: In the document management Outsourcing market card position

In the competitive printing and photocopying market success card position, so that Lith from the low-margin equipment retailers into a highly profitable office information system service provider. Ding Yalin/Article in Citic International cooperation company IT manager Wu Xufang's IT expenditure bill, the company's annual printing and photocopying business is a very good cost. In the first quarter of 2009, CITIC International cooperated with the printing and photocopying of the printed copies of the design drawings, which cost only thousands of yuan.　　Since the end of 2007, Wu Printing and photocopying business to the Beijing Li-Chen Technology Co., Ltd., CITIC International cooperation Company in this expenditure on the savings of at least 300,000 yuan. "We saved money on the print copy business, and we've already purchased the initial fixed assets of all print copiers more than two years ago, and the equipment money has been earned."　　"Wu Xufang thinks the cooperation with Lith Chen is very cost-effective." At present, Li-Chen has entered the Air China, Sinopec, CNOOC and other large enterprises and institutions, its founder and chairman of the Chi Yanming to persuade customers the reason is: "Your printing and photocopying of fixed assets stripped out, by Li-Chen to provide professional equipment and services, and fully take over the operation of the later maintenance, according to Zhang Fee, Maximize the cost of printing and copying. "In the printing and photocopying market, lined with Hewlett-Packard, Fuji Xerox and other large enterprises, they are production to sales and services, the integration of suppliers, Chen is a horizontal cut into the industrial chain of a local enterprise, by providing customers with equipment and professional document printing and photocopying management,　　Lith is the largest document outsourcing service provider in the local enterprises.　　In Lith, through a set of perfect service resource management system, management to provide customers with more than 4,000 printing copiers, whether the supplies are about to run out, or a part is about to reach the service life, Li-Chen's system can be timely warning, its service team in the door-to-door service will be prepared accordingly. For customers, if the previous printing of a A4 paper is a comprehensive cost of 0.4 yuan, and outsourced to Lith Chen, the latter to 0.2 yuan per sheet price to provide customers.　　Despite lower prices, Lith is able to kill more than 20% of the Maori space from the market, which distributes only 3% of the printing and photocopying equipment. To do all this, in Ulith-Chen transformation for the document management outsourcing service provider a series of cards.　　2008, Li Chen's sales revenue of 268 million yuan, in the past 3 years, its composite growth rate of more than 50%, ran over 30% of the average market growth.　　Transition to Service Although entrepreneurship has been 20 years, looking back on the road of entrepreneurship, Chi Yanming that 2004 from the printing and photocopying equipment retailer transformation into a new office information system service provider, is the most important step in recent years. Chi Yanming's first bucket of gold dates back to 1988, when he studied at Tsinghua University and had a copy club at school with several students.　　Shortly after graduating, Chi Yanming started a copy society. In the early 90, printing and photocopying business springing up in China, coincides with 1993Toshiba copier in the domestic development agents, Chi Yanming seized the opportunity to become one of Toshiba's domestic agents, with painstaking, Li-Chen become Toshiba copier biggest agent. Later, Li-Chen signed more brands, including the U.S. Leili (Lanier) copier in China business. In the process of cooperation with Leili, Chi Yanming's harvest is serious--Leili in the Great China Area operation, service and even pricing power to Lith Chen, Chi Yanming to and his management team to operate the Leili service system, product promotion and price strategy and other market operations, which also accumulated a lot of service experience and professional skills,　　For the transformation after the foreshadowing. Although business is growing, Chi Yanming is often distressed.　　As a printing and photocopying equipment distributor, and does not occupy the core position of the industry value chain, because there is no high value-added services, printing service equipment distribution of profit margin between the 5%~7%, to 2000 years later, the entire industry's profit margin further decline, hovering around 3%. At that time, Chi Yanming often go abroad and Leili talk about cooperation, he found that in the United States market, the enterprise's printing and photocopying business has been popular document management outsourcing mode, that is, the enterprise will print services to professional service providers, "on-demand printing, fee-per-sheet", enterprises do not need to purchase　　and professional service providers through a series of technical means, monitoring all equipment, providing comprehensive equipment operation management, to help enterprises save costs and improve efficiency. Chi Yanming immediately inspected the domestic market, when only the world's top 500 multinational companies in the habit of using headquarters, the implementation of document management outsourcing.　　He thinks the market in this field has potential, so in 2004, Li-Chen began to transition to document management outsourcing service provider. How to find the first customer? This is not easy for Chi Yanming.　　In the domestic market at that time, the Chinese branch of multinational corporation is usually the same as headquarters, using HP, Fuji Xerox and other European and American suppliers, and domestic enterprises still can not accept the concept of document management outsourcing. Chi Yanming not admit defeat. has been a channel agent for many years, Li-Chen is located in the value chain than the large brands closer to customers, and therefore more understanding of market demand. Zhongguancun from the time to "Move the box" agent transformation for service providers, Li-Chen used a more flexible strategy, that is, as a relatively independent third-party service providers, to provide customers with the best combination of various well-known brands of printing and photocopying equipment.　　In addition, Chi Yanming also believes that the development of the market should be from the top down, from all sectors of high-end large customers, through the large customer Word-of-mouth and brand effect to other enterprises and institutions infiltration. Lith signed the first single government agency unit, with the first successful case, after the signing more smoothly.　　2007, Air China has also become a Lith-chen document management outsourcing services customers. In the past, Air China headquarters of more than 400 printing copiers throughout the department, the annual occurrence of nearly 5 million pieces of printing, supplies procurement and equipment depreciation is always Shing. HatAviation cooperation, Li Chen acquired all the equipment of Air China, the equivalent of Air China will print copies of the fixed assets stripped out. According to the printing and photocopying demand of Air China, Li-Chen for its matching more suitable equipment, and the deployment of self-developed Domas file output management system, at present, Li-Chen management of Air China's all printing and photocopying equipment, and set up a professional service support team, from equipment maintenance, supplementary paper to the replacement of supplies and other work,　　By Li-Chen commitment, greatly improve the efficiency of printing and photocopying, but also save manpower.　　At the same time, for Air China, Li-Chen's document output management system can also help air China to accurately account for each department or even each employee's print copy volume and cost, when the staff to print copies, the need to brush their own work cards, so as to achieve "press the fee, on-demand printing. Compared with the channel business, the core value of Li-Chen has undergone a qualitative leap, from the former Sales equipment transformation to provide services, and its core competitiveness is through the service resource management system and document management system, management and operation of the location in the customer's work site printing and photocopying equipment, its professional service team is stationed in the customer company or nearby,　　In order to respond to a variety of emergencies in a timely manner, which makes the printing and photocopying business of its customers more efficient and saves a lot of office costs. Extending the service value chain to the service provider's transformation is the first time for Li-Chen's success. In the past, as a device retailer, Li-Chen and the customer's relationship is equivalent to "one-time", that is, the equipment after the sale of less contact, and as a service provider, Li-Chen is equivalent to the extension of the life cycle of orders, can continue to tap the customer value.　　Usually a file management order cycle of 3-5 years, often after the expiration of the contract, the customer still has stickiness, the order may continue to be extended.　　Under the economic downturn, the document management outsourcing service is more "occasional", for CIOs, the budget of a large amount of IT equipment procurement funds can be split into annual expenses, the report will become "good-looking" some. The transformation of Lith's gross margin from Single-digit to double-digit, 2008 sales income of 268 million yuan.　　Statistics show that China's document management outsourcing services market has entered the start-up period, 2008 sales of 1.391 billion yuan, the annual increase of 30%, Chi Yanming that the market has great potential. Logically speaking, Li-Chen's most "heavy" asset is its more than 4,000 printing and photocopying equipment, but its fixed assets accounted for only about 15% of sales revenue.　　Lith Chen is how to operate, can not bear heavy fixed asset procurement pressure?　　In fact, Li-Chen's own investment equipment accounted for only 1/3 of the total equipment, and a part of the equipment is operated through financial means, by Third-party leasing companies to buy equipment, and then lease to Lith Chen, thereby reducing the Lith-Chen fixed asset investment pressure. On the value chain of the customer---------------------------------------Lith the value chain. Compared with leasing companies, the value of Li-chenIt lies in the professional service ability and the assurance to the customer demand, thus can enlarge the profit pool of the service.　　In addition, the operation of light assets at the same time, Li-Chen also brought value to the partners-and the customer's long-term signature, so that leasing companies also have a sustained and stable income.　　In Lith's total service income, about 30% of the revenue is the purchase of equipment and rental interest, the other 70% of the income from parts, supplies, services, personnel costs and so on.　　The first time after the success of the card, Chi Yanming will focus on the service market to the deep, and strive in the service market for the second card position, the extension of service value chain. Chi Yanming found that many customers in the document printing and photocopying, after the process and management chaos, and for many enterprises, file archiving, storage, retrieval, circulation, distribution and other work is equally important. Therefore Chi Yanming expects to extend the document management value chain to the post service market.　　In the past, Li-Chen's file Management outsourcing service is only to manage the document printing and photocopying output process, and Chi Yanming is committed to the document to leave the printing machine after the process is also incorporated into the Management Service system. In Lith's file Lifecycle management solution, by scanning the paper documents electronically, Li-Chen can realize the effective control of the storage, classification and retrieval of documents. In the subsequent electronic flow of documents, Li-Chen through technical means, can be retrieved on the file, call and other operations to authorize and encrypt control, and have a detailed log tracking.　　At present, 3 customers have adopted the Lith File Lifecycle Management Service. Now, Chi Yanming is trying to copy the file Management outsourcing model to another area of the company, the corporate video conferencing market, and he believes that the investment and application requirements of video conferencing equipment are similar to that of the document management market, and Li-Chen can also be cut into the market by providing outsourced management services for equipment. Chi Yanming in the Daily life Love chess, now, he will take a step to see the three-step thinking in the enterprise development.