The End of a Cost Centre - Transform Enterprise Printing into Competitive Advantage

Transcription

1 The End of a Cost Centre - Transform Enterprise Printing into Competitive Advantage Xerox Event, Riyadh, 14 May 2012 Tobias Kleu Research Manager Imaging and Hardcopy Peripherals, Print Services & Document Solutions Copyright 2012 IDC. Reproduction is forbidden unless authorized. All rights reserved.

2 IDC Overview IDC is the premier independent global market intelligence, events, and advisory firm for information technology, telecommunications, and consumer technology markets (ICT) More than 1,000 IDC analysts, including in-house statisticians and economists, provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries - of those, majority in emerging geographies IDC has been delivering IT intelligence, industry analysis, market data, and strategic guidance since its 1964 founding by Patrick McGovern Our multilingual, multicultural workforce surveys over 300,000 technology users and decision makers annually, delivering unrivaled coverage IDC is a subsidiary of IDG, the world's leading technology media, events and research company

3 AGENDA Requirements of Today s IT Organization Challenges of Document & Printing Infrastructure Managed Print Services (MPS): What is it about? Components of a reliable MPS What drivers end users to adopt MPS? Feedback of Middle East end users experience with MPS What benefits MPS brings? Implementing MPS Transformation stages Next steps to innovation Engaging an MPS provider IDC Independent Assessment of Xerox as MPS Provider

4 Requirements of Today s IT Organization Opportunities and Challenges

5 The Balancing Act Q. Looking out over the next 12 months, what do you think will be your organization's top strategic initiatives? (multiple responses) 93% 53% 61% 53% Operational Efficiency Cost Optimization Customer Relationship Enhancement Innovation Is ALL IT aligned to execute these strategic initiatives? 5 Source: IDC s Middle East CIO Survey (Jan-Feb 2012) N=88

6 ... Clash With Reduced Budgets Worldwide IT Spending Growth by Technology (%) 20% 15% 10% 5% % CIOs have more demands but fewer resources Reduced numbers of computing graduates, rising costs in offshore locations contribute to the difficulty of getting skilled staff CIOs need to free up budget and innovate so their people resources are used efficiently Source: IDC Worldwide Blackbook Q4 2011

7 The CIO Challenge: Growing Demands for Innovation... IT Budget Distribution Pure Maintainance Routine Upgrade Supporting Projects Innovation/New Initiatives Approximately 80% of budget is spent on ensuring that infrastructure and existing investments are supported. This spending crowds out spending on innovation. CEOs are pressing CIOs to go further, but do you have the time, money and people resources? 7

8 Renewed Focus on Innovation Alignment of IT to business still tops the personal agenda of the majority of CIOs CIOs recognize the need for more business engagement and the adoption of integrated business services via the cloud CIOs expect their innovation budget will grow from 23% to 28% in the next 3 years investing in cloud, mobile, social, and big data/analytics) to realize business innovation Major goal for many CIO s in 2012 is to foster a culture within IT that drives more innovation 67% of CIOs tell IDC I see the role of CIO evolving to be Chief Innovation Officer Strongly Agree Agree Neither Agree or Disagree Disagree Strongly Disagree 0% 20% 40% 60% n= 85 8 Source: IDC CIO Agenda Survey. November-December, 2011

9 Spotlight on IT-Business Alignment Q. How will each of the following factors represent ICT expenditure at your organization over the next 12 months? Streamlining of internal business processes Increased availability and/or performance of IT infrastructure supporting our business systems Improved security of information and information systems Alignment of applications to specific business metrics Standardization of technology infrastructure, applications and processes 5 points scale: 1 = lowest priority 5 = highest priority What can advanced technologies in printing and imaging contribute? 9 Source: IDC s Middle East CIO Survey (Jan-Feb 2012) N=88

10 Challenges of Printing Infrastructure Today Printing Issues & The Consequences of Unmanaged Environments

11 Inefficiencies in Every Company Employee Productivity 40% of an average worker time is spent on information search 15 is the average labor cost to file a document 89 is the cost of labor searching for one misfiled document 150hrs is spent a year per labor searching incorrectly filed documents Operational Efficiency 50% of helpdesk calls are related to printing problems 25hrs is needed to re-create a lost document 25hrs is needed to re-create a lost document Document creation, production and distribution accounts for 15% of IT spend in some industries Waste 30% higher energy cost due to inefficient printing infrastructure 24% of printed documents are not collected Security & Compliance 5% of documents are lost 24% of printed documents are not collected.and the list goes on do companies know how much they spend?

12 Cost of Documents End Users Feedback Q: Can you give an estimate of how much your organization spends on maintaining and producing documents per year? No 78% Respondents said No because: Yes 22% We don't have access to this information 41% This information is not available 33% The survey results reveal an alarming situation!!! Source: Medium & large business end user survey, Europe, 2009 (n=516) We don't know 26%

13 Tracked Costs End Users Feedback Which costs associated with printing & copying do you track? Consumables costs Maintenance & Repair Total costs Hardware costs Software costs Help Desk and Support The main costs tracked are the direct visible costs Hardly any respondent is aware of hidden costs, which constitute the majority of the real printing costs Fleet Management Other costs 13 0% 25% 50% 75% n =456 (All Respondents) Source: IDC CEMA Special Study MPS User Survey, 2010

14 The Real Total Cost of Ownership (TCO) Hardware Costs Devices acquisition Upgrades & finishing options Operating Costs Consumables (paper, toner, ink, etc.) Installation/Administration Service/Maintenance Operator intervention Power and infrastructure Fragmented purchase decision making High device variety Hidden Costs High number of aging devices Low device utilization Extra footprint, supplies, and maintenance IT helpdesk and support Reduced employee productivity Document production, distribution & storage Retrieval and document/content repurposing No or insufficient cost control Up to 6% of a company revenue is spent on producing documents Every 1 spent on printing a page, involves another 9 to manage it

15 Managed Print Services (MPS) What is it about? What are the drivers to implement & benefits?

16 Print Service Definitions IDC defines the following three service markets: Managed Print Services (MPS) Assessment Right-sizing Pro-active management On-going optimization Basic Print Services Hardware, supplies service Remote monitoring Combined billing and reporting Support Print Services Break-Fix and Maintenance IDC WW Print Services Definitions 2010

17 MPS proposition and potential value Evolution of Managed Print Services MPS Focus: Cost reduction Consolidation Standardisation What Makes Sense: Hardware and supplies Service and maintenance Usage analysis/ reporting tools Helpdesk support Disposal and recycling MPS Focus: Capability extension Integration Visibility and speed What Makes Sense: Consulting services Hardware infrastructure Doc workflow & mgmt Apps mgmt (higher SLAs) Document security solutions MPS Focus: Business innovation/value creation End-to-end connectivity Business transformation Agility Modernisation key focus Business process efficiency What Makes Sense: Next-gen doc mgmt Business process efficiency (beyond past F&A and HR) Outsourced services Cost Efficiency Process Productivity People Innovation Technology 17

18 MPS Implementation Drivers End Users Feedback Turkey, KSA and UAE Aggregated How important are the following drivers to you for implementing MPS contracts at your organization? Cost Savings MEAN 4.64 Managed Maintenance and Service Cost Control, Transparency, Optimised Workflows Higher Employee Productivity Fleet or Asset Mgt Consolidation of Devices Shortened Repair Times Automatic Supplies Replenishment Fewer Service Partners Not at all important Not Important Neither, nor Important 0% 20% 40% 60% 80% 100% n=301 (MPS Adopters) Key Observations Cost top priority among IT professionals Ease of a managed service, reliability and uptime important factor Optimized workflows increasingly important implementation driver 18 Source: IDC CEMA Special Study MPS User Survey, 2010

19 Aggregated Satisfaction with Components How satisfied are you with your main MPS provider with respect to the components of your MPS contract? Help Desk & Support Document Scanning or Archiving Installation of Devices Assessment (ANALYSIS) Optimisation of Infrastructure Supplies Replenishment Remote Management Break, Fix and Maintenance Asset or Fleet or Life-Cycle Leasing or Ownership of Devices Change Management of Training 0% 20% 40% 60% 80% 100% Not at all satisfied Not Satisfied Neither, nor Satisfied Very satisfied n=301(mps Adopters) In general, the majority of users are either satisfied or very satisfied with their contract components. Particularly components focusing on the ease of IT personnel (Help Desk and Support) as well as document workflows (document scanning and archiving) receive high values. 19 Source: IDC CEMA Special Study MPS User Survey, 2010

20 Aggregated Other Benefits Realized What other benefits have you realized since adoption of MPS at your organization? Easier communication with the provider Significantly shortened repair times Better cost control More transparent printing & copying Compliance with internal and external regulations Other benefits realized under the service contracts include: - better communication with service provider - cost control - shortened repair processes Environmental benefits (e.g. lower paper usage) Other benefits These benefits clearly pinpoint the hidden costs of printing and imaging 20 0% 25% 50% 75% n=301 (Multiple Responses; MPS Adopters) Source: IDC CEMA Special Study MPS User Survey, 2010

21 Can MPS Deliver Benefit to Your Organisation? Cost Savings 1. Number 1 driver for MPS 2. Consolidated and optimized infrastructure 3. Chargeback 4. On average up to 30% reduction Productivity & Efficiency 1. Fewer support calls 2. Improve workflow management 3. Improve device utilisation 4. Ensure right users have appropriate resources Security & Compliance 1. Track document distribution 2. Secure delivery 3. Demonstrate to auditors Environment 1. Track usage patterns/create printing rules 2. Reduce waste through followme printing 3. State of the art technology 21

22 MPS User s Today MPS market size in CEMA by business size segment US$ M Employees Employees Employees SMB IT staff efficiency Pay per use Device consolidation and upgrade Large Cost transparency, chargeback Procurement savings Innovation Source: IDC Five Year Market Forecast MPS: Central and Eastern Europe & Middle East and Africa

23 Implementing MPS Transformation Steps Next Stages to Innovation Engaging with MPS Provider

24 Steps to a Managed Print Environment Assessment Revision Optimization Operation Implementation Key to successful MPS deployment is a through assessment of the environment! Full MPS provides a continuous assessment and optimization!

25 Document Management and Outsourcing Solutions for optimized document processes Document Capture Digitize hardcopy documents Capture edit and distribute Archive and index documents Manage documents structured and unstructred data Document Repository and Management Output Management Output from ERP systems and applications Automate distribution to multiple output formats Connect digital and hardcopy document Create and edit forms Forms Processing 25

26 Evolution of Services Delivery Cloud Is The Next Stage to Innovation COMPLEX SERVICES / HIGHER VALUE POINT SERVICES / LOWER VALUE Install & Maintain Packaged Services Solution Oriented Services Managed Services / Outsource Utility / Cloud 0% % of IT Infrastructure Outsourced 100%

27 Advantages of Cloud Delivery Q: What do you consider as main advantages to use cloud services in your organization? Increased flexibility Lower TCO Fast implementation Easier to share resources with partners Lowering costs asociated with IT personnel Lowering complexity of IT systems Transfer IT responsibility to 3rd party Lower initial costs We always work with updated SW version It enforces to use standardized solution No advantage Other 7% 27% 27% 26% 24% 23% 22% 22% 20% 17% 14% 35% 0% 10% 20% 30% 40% IDC IDC N= 1393, Source: CEE IT Buyers Pulse Survey, CEE Countries, 2011

28 Engaging with MPS Provider Vendor Capabilities Offering Capabilities Range of services Alignment to business needs Flexibility and agility in service offerings Modularity of service offerings Delivery Capabilities Assessment of infrastructure Identification of visible and hidden costs Recommend optimise print environment reducing costs and complexity Measure, monitor, guarantee and deliver cost savings across sites and geographies Reporting at regular intervals Customer relationship and service management 28

29 Evolve To Innovate Key Recommendations Infrastructure Services Solutions Use document solutions to solve business challenges (e.g. document management) Add value to infrastructure (e.g. device management and control, fleet optimization, life cycle management) Deploy optimal infrastructure (e.g. color, mid-segment MFP, onboard functionalities) I N N O V A T I O N 29

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