'For SMBs, bundling is the right strategy for MFDs'

The top vendors are cashing in on the multi-functional device wave and Canon India is no exception. In a chat with Bhaswati Chakravorty of Dataquest, Som Gangopadhyay, senior manager of marketing for office system solutions at Canon India, talks about how Canon is addressing key security concerns in the MFD space, its growth strategy, and how it intends to position the MFD in the SMB segment.

How are you addressing security issues with respect to MFDs?



Every time some data transformation happens, there is a possibility of security leak. That refers to even a simple operation like sending a print command. Information flow may happen from one secure system to another, but this does not guarantee complete security during transfer. We have tried to build software solutions that facilitate a secure multifunctional hub by integrating these solutions with the MFDs. Our MFD-based document systems have been provided with inbuilt secure functions like secure print, which is password-enabled. Enterprises can also control usage through authorization through department Ids, which can also be used to monitor print activities quantitatively. 

In addition, there is an add-on security module that allows for the creation of encrypted PDFs, which can also be made password secure. We also provide image runner security kits for high-capacity machines. However, most enterprises do not place document management system security on priority.

Can you elaborate on Canon's strategy to increase MFD penetration in India?



The size of the MFD market is currently valued at around Rs 500 crore. And it's increasing at 25% annually. The value proposition, however, exists in the sub-Rs 1 lakh category. We have put together a composite strategy to create awareness and facilitate communication. We are trying to take up CIO concerns and create solutions around these issues. We also have a focused strategy for our channel partners on the delivery front. 

Do you have an SMB-specific strategy?



SMBs are a significant part of our target market and Canon plans to focus on this segment in 2006. We need to customize our existing strategy to reach the SMB market and that is what we are working towards. Costing and positioning are critical aspects of this strategy. We would be offering two-tier solutions for the SMEs-enterprise version and departmental version, which is not be web-enabled. We are currently focusing on building a departmental portfolio for

SMEs. 

Secondly, in case of MFDs, the hardware is expensive while the software is comparatively much cheaper. The best strategy is to bundle the hardware and software cost in such a manner that the price is just right for the SMB segment. That is what we have worked at and I believe that currently we a in a position to offer the best price. Canon is also creating a direct sales force focused on SMEs because our experience tells us that this is one segment where direct reach is critical to increase reach.