I N D U S T R Y D E V E L O P M E N T S A N D M O D E L S. I D C M a t u r i t y M o d e l : P r i n t a n d D o c u m e n t M a n a g e m e n t

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1 Global Headquarters: 5 Speen Street Framingham, MA USA P F E X C E R P T I N D U S T R Y D E V E L O P M E N T S A N D M O D E L S I D C M a t u r i t y M o d e l : P r i n t a n d D o c u m e n t M a n a g e m e n t Holly Muscolino Angèle Boyd I N T H I S E X C E R P T The content for this paper is excerpted from the IDC Maturity Model: Print and Document Management by Holly Muscolino and Angele Boyd, (Doc # ). All or parts of the following sections are included in this Excerpt: IDC Opinion, In This Study, Future Outlook, Essential Guidance, Learn More and Synopsis. Table 1 and 3 are also included. I D C O P I N I O N As the global economic recovery inches ahead, organizations continue to look for operational efficiencies and cost savings. The savvy organization also seeks opportunities to boost revenue growth. As part of this, organizations seek to develop or acquire new competencies related to print and electronic document infrastructure and workflows. Cloud-based applications, mobile devices, and the increasing socialization of business applications are contributing to rapid changes in requirements for imaging and output. These forces are also driving the evolution of device architecture and capabilities as well as print management, content management, and mobile print and scan offerings. These technologies facilitate changes that go beyond streamlining existing processes to transformed business models and competitive advantage. However, organizations must have a good understanding of what has been achieved and a strategy and road map to advance forward. IDC's Print and Document Management (PDM) Maturity Model provides a framework to support organizations that seek to optimize their imaging and printing infrastructure and document-intensive business processes. The effort may be instituted internally, though IDC recommends outsourcing to a third-party provider with print and document management (PDM) technology and expertise. This maturity model enables an organization to: Assess its print and document management maturity Uncover maturity gaps across business units Use the baseline to define short- and long-term goals and plan for improvements Prioritize managed print and document service engagements and/or print and document management technology, staffing, and other related investment decisions Evaluate managed print and document services providers and offerings Filing Information: June 2013, IDC #241441e, Volume: 1 BuyerPulse Analysis: Managed Print and Document Services: Industry Developments and Models

2 Managed print and document services (MPDS) was a $28 billion worldwide market in 2012 and is expected to grow to just over $31 billion in 2013 at a compound annual growth rate (CAGR) just shy of 12%. Nonetheless, the market is beginning to mature, especially in developed regions and in the enterprise segment. As MPDS contracts go through multiple renewal cycles, end users look to their outsourcing partners to provide sustained value in the form of additional efficiencies, cost savings, growth opportunities, and innovation. I N T H I S S T U D Y In this study, we describe IDC's Print and Document Management Maturity Model framework, which identifies the stages, critical measures, business outcomes, and actions required for organizations to effectively develop PDM competency. We also provide guidance for organizations of all sizes interested in advancing along the five maturity stages of the framework to maximize benefits derived from PDM. IDC's PDM Maturity Model supports organizations interested in understanding the strategic impact that a print and document management strategy can have on their enterprise. This model assists an enterprise that wishes to take the necessary actions to move forward in this area. It can be used by organizations that undertake to manage print and document infrastructure and workflows internally as well as those that decide to outsource this task to a third-party outsourced document services provider. IDC's PDM Maturity Model enables an organization to assess its print and document management competency and maturity' uncover maturity gaps among business units, use the baseline to define short- and long-term goals and plan for improvements, prioritize technology, staffing, outsourcing, and other related investment decisions. Organizations use IDC's PDM Maturity Model to develop a strategy to achieve increased efficiencies and cost savings and to meet productivity and sustainability goals. Additionally, organizations use this maturity model as a tool to encourage and improve intra- and inter-group collaboration in defining and executing a print and document management strategy and in extending the benefits of that strategy throughout the enterprise. Finally, the maturity model provides a framework for structuring agreements with document outsourcing providers and provides a road map for ongoing value-added services. 2 #241441e 2013 IDC

3 E x e c u t i v e S u m m a r y As the global economic recovery continues, even organizations that already have a print and document management initiative are looking for additional operational efficiencies and cost savings as those initiatives mature. The savvy organization will also seek opportunities to boost growth. One such opportunity is the acquisition or development of new competencies related to both print and electronic document infrastructure and workflows. Cloud-based applications, mobile devices, and the increasing socialization of business applications are contributing to rapid changes in requirements for imaging and output. These forces are also driving the evolution of device architecture and capabilities as well as print management, content management, and mobile print and scan offerings. By leveraging these trends, organizations may not only achieve gains in efficiencies, cost savings, and employee productivity but also leapfrog competitors in terms of process improvements and process innovations. To do this, an organization must have a strong understanding of its current needs, strengths, and challenges along with the organization's projected requirements and the systems, staffing, partners, and business transitions necessary to meet these requirements. Organizations must have a good understanding of what has been achieved and a strategy and road map to advance forward. IDC's PDM Maturity Model enables organizations to assess their current PDM capabilities and evaluate technology gaps and/or process bottlenecks and enables them to reach higher levels of print and document management maturity and competence thus obtaining the additional cost savings, efficiency, and productivity advantages associated with that achievement. IDC's Print and Document Management Maturity Model identifies five stages of PDM maturity and outcomes and actions that will enable an organization to derive maximum benefit from its approach to PDM. Table 1 depicts a summary of the five maturity stages as well as their key characteristics, goals, and business benefits of each stage IDC #241441e 3

4 T A B L E 1 I D C ' s P r i n t a n d D o c u m e n t M a n a g e m e n t M a t u r i t y M o d e l : O v e r v i e w o f M a t u r i t y S t a g e s Ad Hoc Opportunistic Repeatable Managed Optimized Key characteristic Fragmented print management Responsibility distributed among procurement, IT, LOBs Ad hoc, siloed initiatives No spending baseline Individual or small group effort Devices and print volume tracked Centralized, initiative involving multiple groups Device monitoring technology deployed Proactive maintenance Spending baseline established Devices optimized while considering end-user requirements/ workflow as well as device capabilities Governance structure and/or change management implemented Ongoing analysis for continuous improvement PDM extends throughout enterprise Includes home, remote, branch, mobile, and satellite workers Support for mobile devices May include centralized production facilities and/or external print procurement Nascent initiatives to convert paperbased workflows to digital workflows Reengineering and transformation of LOB and/or vertical documentintensive workflows New systems of engagement for stakeholders Tighter integration with enterprise systems Goal Fundamental business operations Increased control and visibility Greater cost savings, efficiency, productivity Holistic control of print/documents Support strategic business objectives Outcome Technology supports business New knowledge value associated with pilot/local projects Increased visibility and control Knowledge value grows, business value opportunities visible Cost savings sustainability, security goals are met Business value is realized Benefits extended throughout enterprise Boundaries expanded outside enterprise walls Sustained competitive advantage Previously unattainable business value realized Source: IDC, #241441e 2013 IDC

5 F U T U R E O U T L O O K The concepts of print and document management are not new, and many organizations have undertaken initiatives to track and control printing costs and inefficiencies. This is particularly true for large enterprises (i.e., those with 1,000+ employees) and especially in industries that are heavily dependent on documents, such as financial services, healthcare, and education. IDC research finds that in the United States, penetration of managed print services has reached as high as 60% in large enterprises in document-intensive market segments. However, IDC research with MPS customers finds that a large number of outsourced MPS contracts are at the early stages of the PDM maturity model, with most at level 2 (opportunistic) or level 3 (repeatable) and a very small percentage at higher levels. There are several reasons for this: The initial focus of print management initiatives has been on hardcopy devices. Both organizations and providers are now realizing the importance of the workflow and human elements in the optimization formula. Recent versions of print management technology and methodologies are now incorporating the ability to capture workflow and user behavior data. The increasing mobility of the knowledge worker and the growing use of smartphones and tablets are rapidly changing how and where these individuals create, access, and produce documents. IT departments are struggling to keep up with this new workforce paradigm and the management and security risks posed. This is driving the urgency to migrate to higher levels of PDM maturity. As managed print services contracts go through second and third renewal cycles, organizations are looking to providers to offer new value beyond the hardcopy device infrastructure. T h e V a l u e o f O u t s o u r c i n g The most effective way for an organization to evaluate current print and document maturity and grow to higher levels of maturity is in partnership with a managed print services provider. Outsourcing provides access to current and ongoing technology and print and document domain expertise that may not be resident within an organization. In addition, outsourcing reduces the administrative costs associated with managing a program internally, including management of multiple vendors. An MPS provider will: Evaluate the current state: MPS providers can deploy state-of-the-art technology to measure hardcopy device usage and performance over time at a very granular level. They have access to the most current device TCO data. And they can leverage their document domain expertise to effectively conduct site and end-user surveys. Design the future state: Technology can also be used to create multiple scenarios for a future state design. Experienced providers collaborate closely 2013 IDC #241441e 5

6 with enterprise customers to select the most appropriate design based on organizational objectives and goals and to develop a plan for deployment. Deploy and develop a road map for PDM growth: The provider will deploy the technology, people, and processes required to implement the future state design. The provider and enterprise collaborate to develop plan for ongoing analysis and a road map for reaching higher levels of print and document management maturity. IDC projects that the total worldwide managed print services market will grow from $27.9 billion in 2012 to $48.1 billion in 2017 at a CAGR of 11.5%. Some of this growth will come from additional value-added services as enterprises move up the PDM maturity scale. E S S E N T I A L G U I D A N C E IDC provides the following guidance for organizations utilizing IDC's PDM maturity model: Now: Assess the current state of print and document management maturity across your organization. Evaluate existing internal initiatives and contracts with managed print services providers. Understand what technology is deployed and what types of rules and/or governance structure are used and enforced. Key metrics include spending per employee, employee-to-hardcopy device ratio, and relative volume of color versus black-and-white output. This initiative should include the IT and procurement functions as well as key lines of business. Instead of doing this internally, consider engaging with an MPS provider to perform a detailed and comprehensive assessment of the current state. Next budget cycle and over the next one to two years: Develop a plan to consolidate the organization's print and document management infrastructure under a unified framework with an MPS partner. The plan should include a strategy to bring the entire organization to a common PDM maturity level. Ideally, this is at least the "repeatable" level of the PDM model, providing a foundation for higher maturity levels. Three to five years: Review your progress to date. Ensure that the organization is still functioning at the designated maturity level. Update your assumptions to sync with technology advances. Develop a road map to drive the organization to the "optimized" maturity level. Table 3 presents our guidance specific to the five stages of IDC's Print and Document Management Maturity Model. Regardless of an organization's current stage, it should consider engaging with a print and document management provider to access document domain expertise as well as state-of-the-art assessment and design technologies. IT managers should collaborate with these industry experts as well as line-of-business management to develop transformative print and document management solutions that consider people and processes as well as output devices and associated technology. 6 #241441e 2013 IDC

7 T A B L E 3 I D C ' s P r i n t a n d D o c u m e n t M a n a g e m e n t M a t u r i t y M o d e l G u i d a n c e Stage Ad hoc: Increase the exploration of print management options as well as their contribution to cost savings and employee productivity. Guidance Research data available in industry and mainstream media to establish preliminary business case. Launch a proof-of-concept or pilot project using available resources; include representatives from IT, procurement, and LOB. Investigate print and device management software options; deploy software within the pilot/proof-of-concept initiative. Focus on opportunities to consolidate brands and reduce the total number of devices. Opportunistic: Increase visibility and control. Promote buy-in for a collaborative approach across the organization. Start to track and analyze data for proven cost savings and productivity benefits. Establish a cross-functional team to develop, deploy, and govern a PDM strategy for a department, business unit, site, or division; obtain midmanagement support. Consult with MPS providers and consider issuing an RFI/RFP and formally engaging with an MPS provider. Seek further brand/device consolidation opportunities while ensuring no impact to end-user productivity. Deploy print management software to track and report on device usage. Develop a regular data reporting program IDC #241441e 7

8 T A B L E 3 I D C ' s P r i n t a n d D o c u m e n t M a n a g e m e n t M a t u r i t y M o d e l G u i d a n c e Stage Repeatable: Create a robust, local program that demonstrates the cost savings, productivity enhancements, and other goals are realized. Prepare a foundation for companywide deployment. Guidance Assign, train, and hire staff based on the PDM strategy, including those who will directly interface with an MPS provider. Engage an MPS provider to perform a detailed assessment of print output and document workflow that considers end-user requirements as well as device capabilities to establish current state. Establish specific goals for cost savings, sustainability, and security. Design future state based on current state information and cost savings, sustainability, and security goals. Establish business rules and a governance structure with management support. Deploy a change management program to educate, inform, and motivate participation from all end users, including clearly articulated goals and business rules. Ensure that print management software is robust and aligned with business rules and security requirements. Establish methodology for data analysis and ongoing optimization. Managed: Extend benefits throughout the organization and beyond enterprise walls. Assign an executive-level leader to coordinate the development of an enterprisewide PDM strategy. Extend print management infrastructure to support/track remote, home, branch, and mobile workers. Enable document workflows from mobile devices (smartphones, tablets) including both the technology infrastructure and the governance. Optimized: Develop new business value; sustain competitive advantage. Develop cross-functional teams to evaluate and assess document-intensive business processes for bottlenecks, inefficient interfaces, error rates, highly manual tasks, and so forth. Engage technology providers, MPS providers, or other suppliers for required technology/professional services. Consider reengineering efforts that go beyond paper-to-digital conversion; pilot redesigned processes that incorporate new technologies for new ways to conduct business. Stage 5 is not a resting state. Excellence requires incorporating key and emerging technologies, so continue to allocate funds for continued innovation. Source: IDC, #241441e 2013 IDC

9 L E A R N M O R E R e l a t e d R e s e a r c h Buyer Evaluation Framework for managed Print and Document Services Providers (IDC #244469, November 2013) MPDS MarketScape Buyer Decision Patterns (IDC #243934, October 2013) Worldwide and U.S. Managed Print Services and Basic Print Services Forecast Update: Segmentation by Region (IDC #242950, September 2013) IDC MarketScape: Worldwide Managed Print and Document Services 2013 Hardcopy Vendor Analysis (IDC #242217, July 2013) IDC Maturity Model: Print and Document Management (IDC #241441, June 2013) The CIO Agenda for 2012 and Beyond: A Look at CIO Sentiment and Priorities (IDC #233098, February 2012) S y n o p s i s This IDC study describes IDC's Print and Document Management (PDM) Maturity Model framework, which identifies the stages, critical measures, outcomes, and actions required for companies to effectively develop print and document competency and reap its cost savings, productivity, and efficiency benefits. IDC's Print and Document Management Maturity Model is a framework of five stages (ad hoc, opportunistic, repeatable, managed, and optimized), critical measures (intent, technology, people, and process), outcomes, and actions required for organizations to effectively advance along the successive stages of print and document management proficiency. "Our maturity model enables organizations to assess print and document management competency throughout the organization, use the baseline to define short- and long-term goals, and make decisions regarding staff, technology investments, and engagements with managed print services providers," said Holly Muscolino, research director, Document Solutions. "This maturity model can help uncover maturity gaps among business units, thus providing a framework for all the stakeholders to collaborate to advance the organization toward a common goal." 2013 IDC #241441e 9

10 C o p y r i g h t N o t i c e This IDC research document was published as part of an IDC continuous intelligence service, providing written research, analyst interactions, telebriefings, and conferences. Visit to learn more about IDC subscription and consulting services. To view a list of IDC offices worldwide, visit Please contact the IDC Hotline at , ext (or ) or sales@idc.com for information on applying the price of this document toward the purchase of an IDC service or for information on additional copies or Web rights. Copyright 2013 IDC. Reproduction is forbidden unless authorized. All rights reserved. #241441e 2013 IDC