67% The Goal Standard How Companies Leverage Document Management to Help Meet Their Top Business Goals. of executives claim a positive impact of MPS
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1 Document Process Management SURVEY REPORT 67% of executives claim a positive impact of MPS The Goal Standard How Companies Leverage Document Management to Help Meet Their Top Business Goals This report examines how organizations are leveraging document management activities to help meet their top business goals in 2011 and into This includes assessing the positive business impact and budget plans for document management processes, such as print/ copy center management, managed print services, document imaging and others. This report also spotlights document processes that represent an opportunity for enterprises to gain a competitive advantage in today s challenging economy.
2 The Gold Standard How Companies Leverage Document Management to Help Meet Their Top Business Goals Table of Contents Introduction Survey Profile Executive Summary Key Findings Conclusion
3 Introduction While this report spotlights a variety of document management industry trends, one direction is clear, according to executives surveyed. In 2011 and into 2012, enterprises want to cut costs and improve operational efficiency; and they believe that the document management activities included in this report can help them reach these goals. These activities include print/copy center management, managed print services (MPS), mail/ shipping, records management and document imaging. Executives say that their companies recognize the business benefits of document management programs and are planning to maintain or increase budgets to maximize the value these solutions offer. The Gold Standard examines several key ways organizations are using document management best practices to help meet their most important priorities. These objectives range from reducing costs to concentrating better on core business activities. The report spotlights specific document management activities companies have implemented, the extent to which these activities are having a positive impact on the business and whether companies are managing these activities internally or on an outsourced basis and why. The survey also spotlights areas in which some organizations can tap hidden opportunities to maximize the value of their document management programs. SURVEY PROFILE During June 2011 and July 2011, a total of 105 online surveys were completed by executives responsible for document management processes. These include C-level officers, as well as directors and managers of facilities, procurement, administrative services and operations. A cross-section of industries is represented, including business services, manufacturing, financial services, insurance, legal, technology and others. Among respondents, 45 percent work at organizations with annual revenue less than $100 million, 40 percent have revenue between $100 million and $5 billion and 15 percent have revenue more than $5 billion. Respondents were guaranteed absolute confidentiality. 3
4 Executive Summary In addition to other document management industry trends, The Gold Standard: How Companies Leverage Document Management to Help Meet Their Top Business Goals spotlights five key findings: 1. Organizations want to reduce costs and improve efficiency for Executives specified that their organization s top business goal for 2011 is to reduce costs. Beyond that major concern, companies are looking to increase revenue and improve operational efficiency. 2. many companies recognize the value of document management activities. Many organizations are tapping the benefits of document management in order to support their top goals for 2011 and Survey respondents indicate that their company is maintaining or increasing its 2012 budget for all of the document management activities highlighted in the survey. The strongest areas for spending, according to a strong majority of survey participants, are document imaging (91%) and records management (88%). One factor that may be driving this focus on document management is that enterprises recognize the value it provides. Executives assert that every document management activity covered in the survey has a solid impact on their organization s business goals for Once again, this is particularly the case with records management (71%) and document imaging (70%). 3. Enterprises outsource document management processes for several key reasons. More than a third of the organizations surveyed outsource some or all of the document management activities included in this report. The strongest area for outsourcing is mail/shipping management (45%) followed by MPS (40%), document imaging (37%), records management (35%) and print/copy center management (35%). The key drivers behind why organizations outsource vary by document management category. For print/copy center management, companies outsource in order to reduce the cost of print/copy activities and to concentrate more time and resources on their core business. Other outsourcing reasons: MPS (optimize the utilization of document output equipment), mail/shipping management (consolidate mail/ shipping activities to increase efficiency and reduce costs) and records management (deploy a more fully implemented records management program). According to survey findings, there are two top reasons, equally important, why organizations outsource document imaging: to provide faster access to data and to improve the efficiency of customer service. 4
5 4. companies change outsourcing providers primarily to reduce costs. Some organizations surveyed have changed outsourcing service providers within the past five years, particularly in the print/copy center arena (39%). The number one reason for changing providers in all document management categories was the same reason that organizations outsource to begin with to reduce cost. Two other important reasons for switching are to find a provider that can better meet established performance requirements and that can deliver the breadth of services required to get the job done. 5. Some document management activities offer hidden opportunities. Because MPS and document imaging rated highly in terms of positive business impact, our report highlights some program implementation trends for each of these areas. Twenty-seven percent of organizations surveyed include a print/copy needs assessment in their MPS program, while 22 percent include professional management of their entire print/copy/fax fleet. Companies have implemented asset management, electronic monitoring of equipment and user support to a lesser degree, indicating that these program elements might represent an opportunity for companies to gain more value from their MPS program. Forty-two percent of survey respondents said that their company has implemented document imaging on a department level, such as deploying an accounts payable or human resources solution. Thirty-six percent of organizations covered in the survey have implemented imaging on an enterprise-wide level, while 22 percent deploy imaging on a division level, such as manufacturing. These findings indicate that expanding imaging activities across the enterprise or on a division level might represent an opportunity for some companies to gain more business value from their imaging initiatives. Given today s challenging economy and competitive business environment, every organization looks for an edge. Many executives agree that leveraging advanced document process management, whether internal, outsourced or a combination of the two, is one way to gain that edge. While this message has been clear throughout our survey during the past four years, it has never been stronger. Organizations assert that every document management process covered in this report offers significant business value; and, because of this value, companies are maintaining or increasing budgets for these activities in 2011 and into Outsourcing also plays a key role in maximizing the benefits of document management best practices. The following pages highlight these and other important trends in more detail. 5
6 Key Findings 1. When asked what their organization s top three business goals were for 2011, a significant number of executives surveyed said that increasing revenue and improving operational performance are the key objectives for the rest of this year. In choosing their top business goal for 2011, the highest number of respondents (34%) said that reducing costs was at the top of their list. This was closely followed by increasing revenue (28%) and improving operational efficiency (16%). What are your top three business goals, in order of importance, for 2011? Top Business Goals for 2011 Reduce Costs Increase Revenue Improve Operational Efficiency Improve Customer Service Enhance Regulatory Compliance Increase Competitive Advantage Achieve Faster Time to Market 34% 28% 16% 10% 5% 4% 3% 2. Print/copy center activities have a solid business impact on business goals. We asked survey respondents to indicate the extent to which print/copy center activities support their company s top business goals. A strong 67 percent specified that these processes have a moderately to strongly positive impact, while 27 percent said print/copy center operations have yielded some positive impact. What impact do you believe print/copy center activities have had on supporting your organization s top business goals? Print/Copy Center Impact Moderately Positive Impact Strongly Positive Impact Some Positive Impact No Positive Impact 36% 31% 27% 6% 6
7 3. a significant number of organizations outsource some or all of their print/ copy center activities. When it comes to managing their print/copy center activities, a majority of organizations (53%) either outsource or use a combination of internal and outsourced management for their print/copy center processes. Forty-seven percent of respondents specified that their company manages print/copy center activities internally. The top reasons for outsourcing were to reduce the cost of print/copy activities (46%) and to concentrate more time and resources on the organization s core business (36%). Additional reasons for outsourcing, according to respondents, include better supporting key business processes (10%) and obtaining access to more advanced technology (8%). How does your organization manage its print/copy center activities? Print/Copy Center Management Outsource Some or All Activities Internally 53% 47% Why does your organization outsource some or all of its print/copy center activities? Reasons for Print/Copy Center Outsourcing Reduce the Cost of Print/Copy Activities Concentrate More on Core Business Better Support Key Business Processes Obtain Access to More Advanced Technology 46% 36% 10% 8% 7
8 4. Organizations change print/copy outsourcing providers for two key reasons. Within the past five years, more than a third of survey respondents (39%) said that their company changed its print/copy outsourcing provider. There were two key reasons for this: companies wanted to reduce cost (49%) and obtain better performance (20%). Other factors included securing a wider breadth of services (17%) and better technology and innovation from their provider (14%). Did your organization change its print/copy outsourcing service provider(s) in the past five years? Changed Outsourcing Provider(s) Within Past Five Years No Yes 61% 39% Why did your organization change its print/copy outsourcing provider? Reasons for Changing Print/Copy Outsourcing Provider To Reduce Cost Provider Did Not Meet Established Performance Requirements Provider Did Not Provide Breadth of Services Required Provider Did Not Deliver the Technology and Innovation We Required 49% 20% 17% 14% 5. Similar to print/copy center activities, MPS yields a solid business impact. We also asked survey respondents about how the other key element in a complete enterprise-wide print program, MPS, supported their company s top business goals. Sixty-seven percent said that MPS has a moderately to strongly positive impact, while 25 percent said MPS has yielded some positive impact. What impact do you believe MPS activities have had on supporting your organization s top business goals? MPS Program Impact Moderately Positive Impact Strongly Positive Impact Some Positive Impact No Positive Impact 37% 30% 25% 8% 8
9 6. many companies outsource their MPS activities to gain business advantages. Survey respondents indicated that a significant number of organizations are outsourcing their MPS operation (40%), while 60 percent manage MPS internally. The strongest business driver for outsourcing MPS is to reduce print/copy costs (49%); two other reasons include optimizing the utilization of document output equipment (30%) and improving operating efficiency (21%). How does your organization manage its MPS program (i.e., manage decentralized print/copy fleet equipment)? MPS Program Management Internally Outsource Some or All Activities 60% 40% Why does your organization outsource some or all of its MPS activities? Reasons for MPS Outsourcing Reduce Print/Copy Costs Optimize Utilization of Document Output Equipment Improve Operating Efficiency 49% 30% 21% 7. companies are leveraging a range of tools and processes in their MPS programs. We asked survey respondents to indicate which key elements are included in their MPS program. Among five choices, implementing a print/copy assessment came out on top (27%), which was closely followed by deploying professional management for the entire print/copy/fax fleet (22%). Companies have implemented asset management, electronic monitoring of equipment and implementing user support (e.g., call center) to a lesser degree, indicating that these program elements might represent an opportunity for some. Which of the following are included in your organization s MPS program? MPS Program Elements Print/Copy Needs Assessment Professional Management of Entire Print/Copy/Fax Fleet Electronic Monitoring of Equipment User Support (e.g., Call Center) Asset Management 27% 22% 18% 18% 15% 9
10 8. mail/shipping activities help drive organizational goals. Because mail is a gateway to many business processes, our survey investigated some of the ways in which organizations are managing their mail/shipping operations. One finding is that a majority of respondents (60%) said that mail management operations had a moderately or strongly positive impact on their company s top business goals; 27 percent indicated that mail management activities had some positive impact. Most likely due to this positive impact, findings indicate that mail management will continue to be a priority for 2012: 85 percent of respondents assert that their organization will maintain or increase spending in What impact do you believe mail/shipping activities have had on supporting your organization s top business goals? Mail/Shipping Impact Moderately Positive Impact Strongly Positive Impact Some Positive Impact No Positive Impact 32% 28% 27% 13% Do you anticipate your organization s spending for mail/shipping management activities will increase, decrease or remain the same for 2012? Mail/Shipping Spending for 2012 Remain the Same Increase Decrease 58% 27% 15% 10
11 9. Enterprises are outsourcing some or all of their mail/shipping operation in order to consolidate activities, increase efficiency and cut costs. Another key finding related to mail management is that a solid 45 percent of companies outsource some or all of their mail management processes, while 55 percent manage the process internally. Survey respondents asserted that the key business driver for outsourcing mail activities was to consolidate mail/shipping activities in order to increase operational efficiency and reduce costs (54%). Two other reasons include accessing professional industry expertise (30%) and improving service to company employees and departments (16%). How does your organization manage its mail/shipping operations? Mail/Shipping Management Internally Outsource Some or All Activities 55% 45% Why does your organization manage all or some mail/shipping activities on an outsourced basis? Reasons for Mail/Shipping Outsourcing Consolidate Mail/Shipping Activities to Increase Operational Efficiency and Reduce Costs Access Professional Industry Expertise in Order to Obtain Greater Postal and Shipping Discounts, Reduce Volume of Returned Mail Improve Service to Company Employees and Departments 54% 30% 16% 11
12 10. Survey respondents make a strong case for the benefits of records management. Of the document management processes we surveyed, records management reportedly has the highest positive impact on supporting top business goals. Records management is a document process that spans key areas such as organizational efficiency, compliance and litigation readiness. Most likely due to these and other advantages in today s challenging business environment, a very high number of survey respondents (71%) specified that records management has a moderately to strongly positive impact on supporting their organization s top business goals. That finding, combined with the 20 percent of respondents who say records management has some positive impact on supporting their company s top priorities, translates into a strong case for the benefits of records management. Similar to mail management, findings show that records management will be a budget priority for 2012: 88 percent of respondents assert that their organization will maintain or increase spending in What impact do you believe records management activities have had on supporting your organization s top business goals? Records Management Impact Moderately Positive Impact Strongly Positive Impact Some Positive Impact No Positive Impact 36% 35% 20% 9% Do you anticipate your organization s spending for records management activities will increase, decrease or remain the same for 2012? Records Management Spending for 2012 Remain the Same Increase Decrease 46% 42% 12% 12
13 11. more than a third of the organizations surveyed outsource some or all of their records management activities. Records management is outside the core competency of many organizations. According to our survey finding, 45 percent of organizations outsource some or all of their records management program activities. The top two reasons are to deploy a more fully implemented records management program (35%) and to control program costs (27%). Another important factor is the need to improve legal discovery preparedness (16%). How does your organization manage its records management program? Records Management Internally Outsource Some or All Activities 55% 45% Why does your organization outsource some or all of its records management program activities? Reasons for Records Management Outsourcing Deploy a More Fully Implemented Records Management Program Control Program Costs Improve Legal Discovery Preparedness Gain Access to Accredited Experts Enhance Regulatory Compliance 35% 27% 16% 14% 8% 13
14 12. Document imaging rates highly as a key records management program component. The strong case for records management also applies to a key component of a comprehensive records management program: document imaging. Survey respondents rated the benefits of document imaging very highly: 70 percent assert that document imaging has a moderately to strongly positive impact on supporting top business objectives, while 24 percent report that document imaging has some positive impact. This value will evidently drive budgets for 2012: 91 percent of executives say that their organization will maintain or increase spending for document imaging initiatives in What impact do you believe document imaging activities have had on supporting your organization s top business goals? Document Management Impact Strongly Positive Impact Moderately Impact Some Positive Impact No Positive Impact 38% 32% 24% 6% Do you anticipate your organization s spending for document imaging activities will increase, decrease or remain the same for 2012? Document Imaging Spending for 2012 Remain the Same Increase Decrease 53% 38% 9% 14
15 13. Organizations outsource imaging to obtain faster and more efficient access to data. Thirty-seven percent of executives surveyed said that their organization outsources some or all of its document imaging activities. The top two reasons for outsourcing, equally important, are to provide faster and more efficient access to data (34%) and to improve the speed and efficiency of customer service (34%). Another important factor is the need to reduce storage costs (18%). How does your organization manage its document imaging activities? Document Imaging Management Internally Outsource Some or All Activities 63% 37% Why does your organization outsource some or all of its document imaging activities? Reasons for Document Imaging Outsourcing Provide Faster/More Efficient Access to Data Improve the Speed and Efficiency of Customer Service Reduce Storage Costs Improve Electronic Discovery Readiness Enhance Regulatory Compliance 34% 34% 18% 8% 6% 14. a high number of organizations have implemented document imaging on an enterprise-wide level. Because document imaging rated so high in terms of business value, we investigated some of the areas in which organizations have implemented imaging. While 42 percent of executives report that their company has deployed imaging on a departmental level (e.g., accounts payable application), a significant number (36%) report that their company has implemented imaging throughout the enterprise (e.g., a company policy throughout all or most of the organization). Twenty-two percent of respondents said that their organization utilized imaging on a division level (e.g., manufacturing division). On what level(s) has your organization implemented document imaging? Document Imaging Implementation On a Department Level On an Enterprise Wide Level On a Division Level 42% 36% 22% 15
16 Conclusion Executives participating in our survey indicate that a strong majority of organizations is looking to reduce costs and boost operational efficiency in 2011 and into The executives also assert that because it is projected to have a solid positive impact on their organization s ability to meet these goals, document process management has a seat at the table. Spending for document management activities is expected to remain level or increase during the next 12 months. Areas of Opportunity: MPS Our survey also uncovered several opportunities. These include two document processes that were very highly rated in terms of their positive business impact: managed print services (MPS) and document imaging. Regarding the former, 67 percent of executives surveyed say that MPS has a moderately to strongly positive impact on helping the organization reach its top business goals. For this and other reasons, organizations increasingly are planning or implementing MPS initiatives. These organizations realize that centralizing print/copy responsibility for the entire office can help drive smarter, more cost-effective decisions across the company. One example is a manufacturer that partnered with Canon Business Process Services (CBPS) to launch an MPS program. Goals included lowering the total cost of document output and paper usage, reducing the space taken up by redundant equipment, benefiting the environment and streamlining the company s document management processes. The program, which eliminated many single-function desktop printers and replaced them with networked MFDs (multifunction devices that combine print, copy, scan and fax capabilities), cut costs by approximately $750,000. There were other benefits besides cost savings. One is that the networked MFD environment increased printing security and helped support the company s sustainability initiatives by reducing paper usage. Another advantage is that the program includes new fleet monitoring capabilities that enable CBPS to proactively manage service and supply requests, as well as obtain real-time meter reads. Additionally, by creating a help desk and eliminating redundant equipment, the MPS program has helped ease pressure off the IT department to manage the replenishment of print/copy supplies. 16
17 Areas of Opportunity: Document Imaging In addition to MPS, records management activities particularly document imaging also represent solid opportunities for organizations to contain costs as well as enhance efficiency and compliance. A strong majority of executives surveyed (70%) said that document imaging has a moderately to strongly positive impact on helping their company reach its top business goals. These findings support the strong case for document imaging that was made in our previous survey report, in which executives asserted that imaging provides solid business benefits that include improving operational efficiency and customer service. Organizations also use document imaging to help provide faster, more efficient access to data and to reduce the cost and space associated with storing paper-based documents. The Human Resources (HR) division for a leading technology services provider provides a good example of how imaging can provide these benefits. The company tapped CBPS to implement an imaging program designed to help lower costs, improve its ability to meet industry compliance and audit regulations and support its sustainability initiatives by reducing paper usage. The latter included the goal of creating a more efficient, paperless system to on-board new hires and store their personal and work-related information. Canon Business Process Services digitized records for 12,000 current and past HR employees dating back to At an average of 40 documents per employee, this totals close to 500,000 images. The imaging initiative yielded a host of financial and performance benefits. First, projected savings for the imaging and on-boarding projects will be approximately $200,000 over the next five years. Second, the HR records became digital records, rendering the original paper documents copies that can be destroyed, as dictated by the company s records retention schedule and policy. The physical location of a personnel record is now irrelevant. A record is simply in the repository, and any authorized HR employee with a Web browser can retrieve any document at any time. In addition to efficiency, the new system enhances the value of the company s recent investment in electronic on-boarding software. New employees documents are now stored in the organization s HR records repository rather than as electronic islands in a sea of paper. The Days Ahead According to industry estimates, during the past few years, organizations have been spending approximately 1 to 3 percent of their revenue on activities related to printing, copying, scanning and faxing. Our surveys indicate that while this spending level has not changed, one thing has: Companies are more aware of how better managing these document processes can help them reach their top business goals. Whether they manage document processes internally, on an outsourced basis or both, many enterprises now leverage specific activities, such as document imaging, to attain specific goals, such as enhancing operational efficiency and compliance. For these organizations, document management activities offer an opportunity to gain a competitive edge that will help drive their success in the days ahead. 17
18 Advancing Business Performance to a Higher Level 460 West 34th Street New York, NY Canon Business Process Services, Inc. is a leading provider of managed services and technology that enable organizations to improve operational efficiency while reducing risk and cost. Experts apply quality management principles and tools such as Six Sigma to advance performance to a higher level. The company offers services including BPO, imaging, records management, print, mail and ediscovery, and is an IAOP Global Outsourcing 100 Leader in 2013 for the seventh consecutive year. Based in New York City, Canon Business Process Services is a wholly owned subsidiary of Canon U.S.A., Inc. Parent company Canon Inc. (NYSE:CAJ) ranks third overall in U.S. patents registered in 2012 and is one of Fortune magazine s World s Most Admired Companies in Learn more at CANON, MAXbasic and MAXadvanced are registered trademarks of Canon Inc. in the United States and may also be a registered trademark or trademarks in other countries. All other referenced product, company or service names and marks are trademarks or service marks of their respective owners and are hereby acknowledged Canon Business Process Services, Inc. All rights reserved. Canon Business Process Services, Inc. Print Services Survey Report v2
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