Auxiliary Services Optimization Managed Print Services

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1 Auxiliary Services Optimization Managed Print Services MCP Presented By: Bernard Newman NAE Sales & Business Development Managed Print Optimization & Cost control strategy

2 Why you should consider Managed Print Services Key benefits are: Identify and Reduce your Total Cost of Ownership for managing output and devices Improved cost accountability and output productivity Increase management control over print output and devices through a centralized and optimized Managed Print Services program As Auxiliary Services professionals, you are tasked with generating revenue Managed Print Services programs can capture revenue through pages billed (cost per copy plans)

3 Higher Education faces significant economic challenges

4 Trends Higher Education faces significant business and economic challenges Facts In 2012, state and local support declined to $81.2 billion down 7 percent from Fiscal pressures that will affect the delivery of core programs and services. New technologies that will have a long-lasting impact on the delivery of learning and the future of brick and mortar institutions Increased calls for accountability from key stakeholders 2013 MCP All Rights Reserved.

5 Trends Higher Education faces significant business and economic challenges Excerpts A "new normal" in higher education finance. Even with the recovery of endowments, the effects of the recession will be long-lasting. "We must be realistic that even when state economies return to pre-2008 levels, the level of support for higher education will not return, "The fear is that we'll end up with the worst of both worlds, - cuts in funding and more intervention by government." Molly Corbett Broad, President of the American Council on Education (ACE) 2013 MCP All Rights Reserved.

6 Economic Impact of Print Management According to the Gartner Group, office printing consumes 1-3% of a company s annual revenue. A company with revenues of $10 million will spend between $100,000 and $300,000 on document output each year. 3% of revenue = $300,000* *Paper *Print output *Asset management *Help Desk Statistics Average office employee spends $15,000 annually on document output.** Increased printer activity demands internal support-from the IT department. *Service & maintenance contracts *Procurement costs: (RFI s, RFP s), Proposal Reviews *Nonnetworked device support *Print cartridges Labor IT support Uncontrolled, purchases of printers and related supplies parts leads to increased costs. *Source: All Associates **Source: The Gartner Group Copyright MCP 2013 All Rights Reserved. Revenue of $10,000,000* 6

7 Trends Enterprise Print Costs as a percentage of revenue for the Commercial sector averages 6.1% 2013 MCP All Rights Reserved.

8 Trends Document Output costs are 9.94% for Higher Education - 3.8% greater than Commercial sector enterprises Spend Factors: Decentralized device management leads to limited control of total devices and number of vendors to manage Higher Education Document output costs are 3.8% greater than in the Commercial sector Procurement of devices is siloed Limited Supply management for consumables; paper, toner & cartridges results in higher costs IT Infrastructure & Help Desk Support Demands are greater 2013 MCP All Rights Reserved.

9 Spend as % of Revenue True costs of enterprise printing Every $1 spent on putting marks on paper involves another $9 to manage it Office Production Commercial 10% 10% 12% Cost of putting marks on paper 15% 14% 13% Spend by Segment (Commercial, Production, Office) Federal Government 13.41% of Payroll Expense 90% 90% 88% + Burdened costs of managing document lifecycle 12% 11% 10% 9% Higher Education 9.94% of Annual Budget Document Management End-user Interaction IT Support & Infrastructure Fulfillment & Distribution Facilities & Labor Document & Content Design Fulfillment & Distribution Facilities & Labor Document & Content Design 8% 7% 6% 5% 4% K-12 School Districts 6.2% of Annual Current Expenditure County/City Government 4.1% of Annual Budget Administration & Procurement IT Support & Infrastructure Administration & Procurement 3% 2% State Government 2.25% of General Expenditure Facilities Administration & Procurement IT Support & Infrastructure 1% Source: ALL Associates Group

10 Fragmented burdened office costs Visible hard costs (5 7 ) Hardware; consumables; maintenance; paper and power Document management Document storage and archival; document retrieval; document distribution; document capture and indexing Burdened costs % 10% 5% 5% 5% 28% IS support End user; device management; output management; network management IS infrastructure Network; application programming and maintenance; software and licensing Administration, purchasing, and facilities Facilities costs; product/service acquisition processes; contract and billing processes; internal service delivery End-user time Computer interaction; output equipment interaction; preparation, collection, and finishing; problems, errors, and mistakes Total office document costs per page 10

11 Managed Print Services Cost Components Office Document Components Cost Visible Hard Costs hardware, toner and inks, paper (plain and special), click charges, services and maintenance, power, etc. 5 to 7 IS Support and Infrastructure help desks, second level support, installation and setup, asset management, assessment, testing, local support staff, training, print servers, network connections, mainframe conversions, print formatting software, pre-processing equipment, etc. 5 to 7 Administration and Purchasing product and services selection, internal requisitions, orders, billing, RFP s, storage, restocking, supplies service centers, inventory management, vendor relationship management, etc. 2.5 to 3.5 Document Production end user production time and energy, futzing and waiting time, and intervention activity, hand finishing, walking to copiers, fax machine interaction, etc. 15 to 20 Document Management the before and after costs and processes, including filing, storage, indexing, microfiche, COLD, scanning (and not scanning), binding, folders, retrieval, postage, enveloping and distribution, mailroom, preprinted forms, electronic forms, document creation, waste disposal, etc. 25 to 33 It is important during this time of transition to not overlook your high-potential (HIPO) employees. Managers should make it a priority to Total continually Burdened remind Cost high-potential of Office employees Documents that the organization is committed to their growth and development so that 52 these to employees MCP stay All Rights engaged Reserved. and do not seek other employment. Source: Copyright ALL Associates Limited. All rights reserved.

12 Why you should consider Managed Print Services According to IDC research, key benefits are: 40% Fewer help desk calls 25% Reduction in cost of consumables 20% Unscheduled maintenance cost reduction 10% Cost reductions in installation and upgrades 23% Average Savings through centralized management

13 Let s start with some questions How much do you spend on equipment how about supplies? When you thought about supplies, did you consider inventory carrying costs? Did you consider the time it takes to find the part number and order it? How about shipping? And what about color? Don t know how much it costs, just that it s expensive? Don t know the answers? Good news: You are not alone. A typical business spends up to 6% of annual revenues on document management. 90% of all companies do not know what they are currently spending on internal desktop and network printing.

14 Trend Data: Managed Print Services in Higher Education 2013 MCP All Rights Reserved.

15 Trend Data: Managed Print Services in Higher Education 2013 MCP All Rights Reserved.

16 Where does all the money go? Excess supplies Unscheduled maintenance Drive installation and upgrades Help desk

17 Analysis Cost to file a document to find a misfiled document to reproduce a lost document of all documents get lost. productivity time spent looking for files. MPS is part of a broader Document Management Strategy According to estimates by Gartner Group, businesses spend 1-3% of their total annual revenue producing documents. Businesses dramatically underestimate their total document related expenses and needs (total cost of ownership) or TCO all the while failing to implement measurable cost and management controls. By managing document requirements effectively, your organization can save up to 30% on your total in-house document related costs. Key Benefits: Developing a total document management strategy can increase productivity, drive efficiency and reduce operational costs and TCO. Statistics: Gartner Group, ecopy and Laserfiche MCP All Rights Reserved.

18 Key enterprise trends Industry perspective cost Average annual document costs are 5 15% of revenue. IDC Most companies could reduce their printing costs by 10 30%. Hard visible costs are only about 10% of the total document cost. Gartner All Associates 18 90% of all companies do not track printing costs. Buyer s Laboratory Bottom line Significant cost reduction opportunities exist for all organizations. Companies can lower their printing costs by up to 30%. IDC 53% of help-desk calls are printer related. IDC IT spends 15% of their time on printing-related issues. IDC Companies spend 1 3% of their revenue per year on output fleet management. Gartner

19 Key enterprise trends Productivity challenges The average worker: Information explosion information doubles every 18 months Spends 40% of their time looking for information Spends 150 hours/year seeking incorrectly filed documents Makes 19 copies of every document Loses 1 out of 20 documents Spends 25 hours recreating lost documents 19 Source: Fujitsu and PriceWaterhouseCoopers

20 Key enterprise trends Environmental Green IT is #1 on Gartner s list of the top 10 technologies and trends. 67% of enterprises are implementing environmental programs. 30% of infrastructure purchasing decisions is based on environmental factors. 80% of enterprise RFQs evaluate suppliers environmental aspects. By 2010, about half of the Forbes Global 2000 will spend more on energy than on hardware.* 20 *Source: Gartner

21 The Desired Outcome Control expenses Manage the environment Optimize the infrastructure Improve workflow Boost productivity Do more with less Focus on core business

22 What have we learned from our customers? Opportunity Utilize new technologies and convergence. Consolidate devices Save costs and optimize fleet Complexity Harmony? Printer, Copier Decision making Unmanaged environment Utility model Address security and compliance Productivity MFPs becoming productivity tools On/off ramps into the network (with user interface) Streamline paper-based processes 22

23 COST / PRODUCTIVITY MCP s approach to Enterprise Print Management Improve business outcomes Improve Workflow Streamline workflows and increase compliance Improve IT and business efficiencies Manage Environment Increase IT productivity and system availability Reduce cost Optimize Infrastructure Balance productivity and cost Customer needs Customer benefit ROI 23

24 Managed Print Services Optimization The Impacts of Printing MCP

25 Financial Impact Printing Cost total 1-3% of annual revenues * Print Volume is declining at 1-2% per year** Related Costs For every $1 spent on printing it takes another $9 to manage it*** The Cost Equation If revenues and profits don t increase at the same rate as the rising cost of documents, the result is eroding profits Annual Revenue Average Annual Print Spend $10 million $100K to $300K * Gartner Group ** IDC *** All Associates Group

26 Environmental Impact Paper, Toner and Power One case of paper (10 reams) uses approximately 60% of a tree* Production of 50 lbs. (5,000 pages/1 case) of copy paper produces 143 lbs. of green house gases* Three quarts of oil are consumed in the production of a single new toner cartridge and they take over 1,000 years to decompose** Millions of square feet of landfill space is consumed with used toner cartridges, paper, and printers that could be recycled.** *printgreen.com ** State of California Office Employees Pages per Year Trees per Year Greenhouse Gas Emissions million ,000 lbs

27 Productivity Impact Work Flow Old drivers not compatible with new applications Materials not in stock Broken Devices Documents not delivered Delays Customer responsible for having materials available

28 IT Impact Maintenance Burden 15% of their time on printer related issues* Required driver updates for multiple models/brands of printers Not trained as printer technician Pulls them away from projects requiring their expertise * IDC

29 Managed Print Services Optimization A Sensible Strategy MCP

30 Manage Expenses Outsource Management of the Printers Reduce the high cost of IT s involvement with printers Reduce administration of the fleet with one vendor providing one invoice a month for the pages printed Reduce wasted materials Reduce downtime Protect the technology investment

31 Minimize Carbon Footprint Green Printing Recycle toner cartridges, paper, and printers diverts millions of cubic feet of material from landfills The recovery and reuse of toner cartridges and paper saves power through less manufacturing* Use post consumer recycled paper Reduce materials inventory and the associated waste Utilize alternative inks to laser that have less environmental impact Approximately 50% less energy is used by one multifunction printer than the combined annual consumption of the individual products it replaces * State of California

32 Boost Productivity Improve Workflow Integrate document workflow software into your departments to improve business processes Proactive service and supplies maintenance increases output device uptime and increase user satisfaction Having the right materials and devices in the right locations improves document output productivity Multifunction devices (print/copy/scan/fax) High-speed production printers Color

33 Free Up IT Resources Reduce the printer burden Remote monitoring software reports device status and errors reducing IT help desk calls Outsourced service eliminates IT from spending time on issues not requiring their expertise Up to 50% of IT help desk calls are printer related IT help desk

34 Summary Managed Print Services Implementing the Strategy MCP

35 device including networked and non-networked devices. Implement a full-service MPS program Assess Design Implement Manage Strategic Approach 4 Step Business Process Technology Integration Brand Agnostic MFP/Printers Production Devices Optimization Focused Full service: Ongoing Assessments Device to Employee Ratios Best Practices Help Desk Support Acquisition/Replacement Management Reports

36 Stop Buying Without knowing what you have, what you are doing with those devices, and what those devices are costing, adding more devices generally does not solve the problems or reduce the costs related to printer fleets Discovery Due Diligence Conduct an assessment of print devices resulting in a report that details the current usage, costs, and issues related to the fleet of printers

37 Outsource the Printer Management Without remote monitoring technology and an expertise in printers, companies are best served by outsourcing this non-core maintenance and management function to a qualified partner Optimize the Infrastructure With reporting of usage trends informed decisions can be made regarding the consolidation of print assets, the strategic placement of MFP s to increase productivity and software solutions to improve user productivity

38 Take Action! Assess the Current Environment What devices do you have? How much are the devices used? What is the true total cost of your current printing? Better Information for Better Decisions Factual Information Implementation steps Semi-annual account reviews

39 Thank you! Questions?

40 MCP Contact Details Bernard Newman, NAE MCP Business Solutions Sales, Marketing & Business Development Corporate HQ ext. 318 (M) Thank you

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