Auxiliary Services Optimization Managed Print Services

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Auxiliary Services Optimization

Managed Print Services

Managed Print

Optimization &

Cost control

strategy

MCP

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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

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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 2011.  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

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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)

Higher Education faces significant business and economic challenges

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Economic Impact of Print Management

3% of revenue = $300,000*

Revenue of $10,000,000*

Labor *Print cartridges *Procurement costs: (RFI’s, RFP’s), Proposal Reviews IT support Statistics

 Average office employee spends $15,000 annually on document output.**

 Increased printer activity demands internal support-from the IT department.

Uncontrolled, purchases of printers and related supplies parts leads to increased costs.

*Source: All Associates **Source: The Gartner Group

*Service & maintenance contracts *Paper *Asset management *Print output *Non-networked device support *Help Desk

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Enterprise Print Costs as a percentage of revenue for the Commercial sector averages 6.1%

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Higher Education Document output costs are 3.8% greater than in the Commercial sector Spend Factors:

•Decentralized device

management leads to limited control of total devices and number of vendors to manage • “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

Document Output costs are 9.94% for Higher Education - 3.8% greater than Commercial sector enterprises

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True costs of enterprise printing

Every $1 spent on putting marks on paper involves another $9 to manage it

90%

10% 10% 12%

90% 88%

Cost of putting marks on paper

+ Burdened costs of managing document lifecycle

Office Production Commercial

Document Management End-user Interaction IT Support & Infrastructure Administration & Procurement Facilities Fulfillment & Distribution Facilities & Labor Document & Content Design IT Support & Infrastructure Administration & Procurement Fulfillment & Distribution Facilities & Labor Document & Content Design Administration & Procurement IT Support & Infrastructure 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% S p e n d a s % o f Rev e n u e

Source: ALL Associates Group 14%

Spend by Segment

(Commercial, Production, Office)

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5% 5% 5% 28% 47% 10%

Fragmented burdened office costs

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Visible hard costs (5–7¢)

•Hardware; consumables; maintenance; paper and power IS support

•End user; device management; output management; network management

Administration, purchasing, and facilities

•Facilities costs; product/service acquisition processes; contract and billing processes; internal service delivery

IS infrastructure

•Network; application programming and maintenance; software and licensing

End-user time

•Computer interaction; output equipment interaction; preparation, collection, and finishing; problems, errors, and mistakes

Document management •Document storage and archival; document retrieval; document distribution; document capture and indexing

Burdened costs

4 7 – 63¢

Total office document costs

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Managed Print Services Cost Components

It is important during this time of transition to not overlook your high-potential (HIPO) employees. Managers should make it a priority to continually remind high-potential employees that the organization is committed to their growth and development so that these employees stay engaged and do not seek other employment.

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¢

Total Burdened Cost of Office Documents 52¢ to 70¢

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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

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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.

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Trend Data: Managed Print Services in Higher

Education

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Trend Data: Managed Print Services in Higher

Education

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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.

MPS is part of a broader Document

Management Strategy

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.

Statistics:

Gartner Group, eCopy and Laserfiche.

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Key enterprise trends

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Bottom line

Significant cost

reduction

opportunities exist for

all organizations.

“Average annual document costs are 5–15% of revenue.”

—IDC

Industry perspective—cost

“90% of all companies do not track printing costs.”

—Buyer’s Laboratory

“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 “Companies can lower their

printing costs by up to 30%.”

—IDC “Hard visible costs are only

about 10% of the total document cost.”

—All Associates

“Most companies could reduce their printing costs by 10–30%.”

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Key enterprise trends

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The average worker:

•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

Productivity challenges

•Information explosion—information doubles every 18 months

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Key enterprise trends

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Environmental

67%

of enterprises are implementing environmental programs.

80%

of enterprise RFQs evaluate suppliers’ environmental aspects.

30%

of infrastructure purchasing decisions is based on environmental factors. “Green IT” is #1 on Gartner’s list of the top 10 technologies and trends.

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The Desired Outcome

Control expenses

• Manage the environment • Optimize the infrastructure • Improve workflow

Boost productivity

• Do more with less

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What have we learned from our customers?

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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

Opportunity

• Utilize new technologies and convergence.

• Consolidate devices

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MCP’s approach to Enterprise Print Management

23 Manage Environment Optimize Infrastructure Improve Workflow Improve business outcomes Improve IT and business efficiencies Reduce cost Customer needs Balance productivity and cost Streamline workflows and increase compliance

Increase IT productivity and system availability

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Managed Print Services Optimization

The Impacts of Printing

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Financial Impact

Annual

Revenue Average Annual Print Spend

$10 million $100K to $300K

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***

*_{Gartner Group ** IDC *** All Associates Group}

The Cost Equation

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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.**

Office

Employees per Year Pages Trees per

Year

Greenhouse Gas Emissions

100 1 million 120 282,000 lbs

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Productivity Impact

Work Flow

• Old drivers not compatible with new applications • Materials not in stock

Broken Devices

• Documents not delivered • Delays

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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

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A Sensible Strategy

Managed Print Services Optimization

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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

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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

* State of California

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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}

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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

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Implementing the Strategy

Managed Print Services

MCP

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Implement a full-service MPS program

device including networked and non-networked devices.

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

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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

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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

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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

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Thank you!

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Contact Details

Bernard Newman, NAE MCP Business Solutions Sales, Marketing & Business Development