Reduce Costs Through Printer Consolidation

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Most organizations are unaware of the savings potential of printer consolidation. Most have no aggregate view of the total costs and no one responsible for managing it. Without this visibility it is difficult to muster exectuive commitment and support.

Reduce Costs Through Printer Consolidation

  1. 1. Practical IT Research that Drives Measurable ResultsReduce Costs through Printer Consolidation Info-Tech Research Group 1
  2. 2. Introduction• Printer Consolidation (PrC) is a process that will optimize the printer fleet to decrease the cost of hardware, consumables (paper, ink, toner), electricity, and maintenance.• Strategies for consolidation include: – elimination of inkjet or high-cost printers – sharing of workgroup printers, – use of multi-function devices• Info-Tech Research Group has found that PrC is an initiative not widely implemented despite its cost-saving potential.• To understand why this is the case, Info-Tech conducted a series of interviews with clients of various industries and sizes who recently underwent, or are currently undergoing PrC. The findings are summarized in this Storyboard. Understand Benefits & Implement Printer Manage On-going Print Barriers Consolidation Devices Control Info-Tech Research Group 2
  3. 3. Executive Summary• Organizations can save as much as 65% of total printing costs through printer consolidation (PrC) efforts, making this a very compelling savings initiative.• However, most organizations are unaware of the savings potential of PrC. – Many organizations have no aggregate view of the total cost of printing and no one responsible for managing it – PrC is often an unpopular initiative with end-users – Without this visibility, it is difficult to muster executive commitment and support for PrC• To achieve savings and overcome barriers: – Assign accountability for tracking printer costs to a single department/stakeholder group – Prepare an inventory of printing devices and a profile of usage, requirements, and costs – Identify areas to eliminate or reduce the number of devices to calculate potential savings – Educate and communicate the benefits of PrC to executives to gain buy-in and support – Anticipate and plan for end-user resistance Info-Tech Research Group 3
  4. 4. Nobody has ever died from a paper cut: Understand PrC benefits and barriers.Understand Benefits: Both Kinds of Green Barriers: Why No One Cares PrC Identify Create Prepare the Make the Manage End-UserImplement Accountability Inventory Savings Business Case Resistance Opportunities Manage Mid-Term Strategies Long-Term Strategies Info-Tech Research Group 4
  5. 5. Every desktop printer eliminated from the fleet can save you approximately $500 per year. Poorly controlled print environments breed unnecessary print costs. Consider the following three examples of Info-Tech clients who realized significant cost-savings from their PrC initiatives:A small manufacturing firm A small not-for-profit firm 1.A large public healthcare firm identified $40K in annual reduced their TCO for realized $285,000 in annual cost- cost savings from printers by 50% by savings by eliminating 1,016 eliminating 70 non- eliminating 16 out of 35 devices and replacing them withnetworked desktop printers standalone printers. 721 more efficient devices thatfrom their environment and have a lower $/page cost. That moving fully to networked has resulted in almost $1,000 MFPs. saved per eliminated device. 95% 100% 100% Print device 100% 80% hardware costs are just the tip of the See all in-depth iceberg 60% case studies here. 40% 20% 5% Source: Info-Tech Research Group 0% Hardware Cost Operating Cost Total Cost Info-Tech Research Group 5
  6. 6. Do not ignore the cost-saving potential of PrC. These cost-savings can be realized with Device the following actions: Purchases • Elimination of cost-inefficient inkjet desktop printers • Elimination of high- Consumables Electricity cost, inefficient, or underutilized printers • Sharing of workgroup printers between an optimal number of end- users Maintenance Replacing separate • printers, scanners, copiers, and fax machines with multi-function devicesThe more aggressive the organization’s PrC initiative, the greater the cost-savings potential Medium Pain Low Pain Initiative High Pain Initiative Initiative Cost-savings ~ $30 $60 - $75 ~ $200 ($/user/year) Passive strategy to eliminate Moderately eliminate and Actively eliminate and Initiative devices through attrition consolidate according to usage consolidate devices, and use Description and duty cycles aggressive print strategies (chargeback, outsourcing, etc.) * Source: Interviews with Info-Tech clients Info-Tech Research Group 6
  7. 7. PrC saves more than capital expenses.By any metric enterprises use, cost-based or otherwise,PrC initiatives are overwhelmingly successful: Non-monetary benefits met or exceeded expectations in over 75% of initiatives Operating expenses were reduced in over 80% of initiatives Source: Info-Tech Research Group N=96 Info-Tech Research Group 7
  8. 8. PrC presents organizations with an opportunity to become greener.Consolidating and eliminating Green not only benefits the environment, butdevices in the printer fleet allows can also help the bottom line.organizations to reduce their carbon “footprint and save costs in the [CEO] would be very supportive, but it can’t befollowing ways: money spent for green based solely on green. … [We have] to come up with something that [can]•Reduced electricity consumption save me money and be green at the same time. …But because the cost of electricity is leveling•Reduced use of consumables (paper, “ out throughout the United States, it has nowink, toner) become a business initiative at a higher level to be much more concerned about energy usage.•Reduced hazardous waste from – CIO, Health Servicesconsumables and devices “ Better green practices can align with increasing revenues. … everybody used to think that corporate social responsibility was equal to spending money on programs that was [going “ to] actually hurt your bottom line, but I think that’s not the case with being green. I think if you align it right, it can definitely help you. – IT Manager, Public Healthcare Info-Tech Research Group 8
  9. 9. Four barriers commonly prevent many organizations from recognizing the cost-savings opportunity of PrC.1 Executives Executives frequently question whether it is a worth-while initiative due to a unclear idea of the savings potential and the prospect of end-user backlash. 2 Accountability Printer cost tracking responsibility is not assigned, or wrongly assigned to multiple groups. This leads to out of control costs without the organization even realizing it. 3 Process Opacity Organizations often lack the tools and data needed to uncover the cost-savings potential. 4 End-Users The initiative faces extreme end-user resistance that inhibits successful implementation.Printer costs Potentially Executives are PrC drops on do not get Cost-saving significant not compelled the priority tracked and opportunities cost-saving to sponsor or list, and IT has become of PrC are not opportunities support the no incentive tounknowingly realized are unknown initiatives push it forwardout of control Info-Tech Research Group 9
  10. 10. 1 Executives are not convinced that PrC is worthwhile. • Executives often see PrC as a lower priority issue since PrC cost-saving opportunities only seem significant when aggregated – which rarely happens. • Cost-savings seem insufficient for the required effort, especially given limited IT resources. • Executives face a trade-off: cost-savings versus end-user satisfaction. The challenge and grief associated with end-user resistance and backlash tends to outweigh perceived benefits. • Unless the fleet of printers is large (and significantly underutilized) or old (resulting in high maintenance and cost per page) these initiatives may roll up under other asset management projects which are low on the priority list. Marketing Sales Printing Printing HR Operations Finance Printing Printing Printing vs. Printing HR + Finance + Marketing + Sales + Operations Info-Tech Research Group 10
  11. 11. 2 Managers in many organizations wrongly assume that since IT manages the printer devices, they also manage costs.• Printer costs (paper, ink, toner, electricity, Organization-wide printer usage policies are maintenance) are often budgeted and rarely enforced with any strictness. tracked by each department, not aggregated into an overall budget category.• The different categories of costs are often tracked by different groups: – Consumables and one-off leases are line of business items tracked by Supplies/Facilities – Depreciation expenses are tracked by Finance (sometimes IT) – Maintenance expenses are tracked by IT• No stakeholder‟s performance (i.e. IT) is measured against the controlling of printer costs, so there is no incentive to track and reduce it.• End-users order printer devices and Source: Info-Tech Research Group N=187 supplies through the Supplies/Facilities department which bypasses any budget Without systematic policy enforcement, end- approval process, or through IT, which user print behavior becomes frivolous and does not have the authority or incentive to generates massive printing costs. restrict requests. Info-Tech Research Group 11
  12. 12. 3 The road to uncovering cost-savings opportunities isn’t smooth.• The process to identify the entire fleet, assess • Asset management in most organizations is requirements, and uncover printer costs neglected. Printers are typically last priority for requires significant tracking and managing after servers, desktops/laptops, and documentation tasks, which are laborious and licensed software. difficult for FTE-constrained IT departments. • Tools available for tracking printer utilization are• Non-networked desktop printers are often lacking. Asset management vendors (e.g. Web used without the knowledge of IT, and are JetAdmin, Netaphor, etc.) provide tools that do not notoriously difficult to track. necessarily integrate, report consistent data, or capture non-networked devices such as inkjet desktops. 73% of organizations do not have print management software that can uncover cost- savings N=44 Source: Info-Tech Research Group Info-Tech Research Group 12
  13. 13. 4 End-user resistance is a large barrier to effective PrC. PrC is a cultural change. Two thirds of organizations found end-user resistance to be a significant barrier. Lax device procurement policies foster a climate of end-user entitlement to their own desktop printers: End-users often cite that their personal printers are… • Required to perform duties; necessary for productivity, workflow, ergonomic reasons • More convenient than walking to network Multi-function Printers (MFPs) and waiting in queue for print jobs • More secure; not believing in biometric/password-release functions on MFPs Source: Info-Tech Research Group N=44 “ Printing policies are difficult to enforce. End-users tend to avoid them, or work around Desktop printers were purchased them, especially if senior executives are not fully on company cards… users think on-board and do not lead by example. they are entitled to them. … No one wants to be responsible for physically People are resistant… it’s the convenience of walking no steps “ confiscating desktop printers – especially from versus walking ten. executives. – IT Director, Manufacturing Info-Tech Research Group 13
  14. 14. With proper management, barriers were not significant and did not prevent attainment of benefits. Organizations which conducted PrC initiatives were able toovercome barriers N=108 Source: Info-Tech Research Group Info-Tech Research Group 14
  15. 15. Don’t cry over spilled ink: Implement PrC.Understand Benefits: Both Kinds of Green Barriers: Why No One Cares PrC Identify Create Prepare the Make the Manage End-UserImplement Accountability Inventory Savings Business Case Resistance Opportunities Manage Mid-Term Strategies Long-Term Strategies
  16. 16. To achieve savings and overcome barriers, follow Info-Tech’s four-stage approach: 2. Identify 3. Gain executive 4. Educate1. Track printing consolidation end-users buy-in costs under IT opportunities Create aggregate print accountability to track and Use aggregate cost inventory print data in conjunction Leverage executive devices, determining with usage, buy-in to educate end aggregate print requirements, and users and influence Present cost saving costs. cost to uncover cost changes in their print opportunities to saving opportunities. behavior with executives to gain minimal resistance. their buy-in. Info-Tech Research Group 16
  17. 17. Gain high-level executive buy-in to set the tone for PrC. • Communicate the benefits of PrC to Cautionary Case Study: executives: – Cost-savings benefits Scenario: – Green benefits Print policies are not being strictly enforced. • Cost tracking and reporting to management are iterative: Case Study: Public administration firm has over 80 – Executives provide covering fire, but non-networked desktop printers require proof that the initiative is deployed and is currently worthwhile consolidating, but doubtful of success – Plan for multiple management check-ins due to low executive buy-in. through each step of the process • Do not attempt to undertake PrC initiatives without alerting executives “ [Printer Consolidation] needs to be driven from the top which is why we need to make the business case ““ [The executive team] understand “ for it. costs. They’re an easier sell than the – IT Manager, Government end-users. – CTO, Media & Entertainment Read the in-depth case study here. Info-Tech Research Group 17
  18. 18. Recommend that the responsibility to track print device costs be allocated to IT. Aggregate Responsibility If printer costs (paper, ink, toner, electricity, maintenance, lease expense, etc.) are spread across the budgets of various silos or departments, recommend to executives that all printer costs be aggregated under IT‟s budget, and tracked by IT staff. These changes requires no new costs making them easy sells to hesitant executives. Assign Accountability Although supplies (paper, ink, toner) may continually be procured by the organization‟s Supplies/Facilities department, monthly usage/costs (by departments) should be tracked by IT. Enforce Policy Recommend that IT be empowered with the ability to enforce a strict procurement policy that ensures all devices in the printer environment are approved models and under IT‟s control. This eliminates having unknown devices in the printer fleet along with associated costs; and, allows for economies of scale to be realized from purchasing standardized printer supplies. Track Metrics IT should establish metrics to measure and control each department‟s printer usage, and flag departments that exceed their acceptable usage amounts (as determined by IT). Reporting these figures to the executive team will provide incentives to reduce usage. Use these metrics to gain further executive buy-in.“ [Printing] utilization figures for each department are openly published and viewed from the top. … If costs are higher than expected, the executives will flag it. Managers don’t want to see highlighted cells when they get their statements back, “ so they have incentive to control it. - IT Manager, Tech Services Info-Tech Research Group 18
  19. 19. Prepare a baseline inventory of printing devices and costs to identify potential savings.1. Take an 2. Assess 3. Assess 4. Solicit inventory of the fleet the fleet costs end-user input the fleet requirementsRefer to automateddiscovery tools, network Understand the Determine the costs of Interview or surveymapping, and do a application & each device: purchase end-users to understandphysical walk-around to network, platform, security/priv price, consumables their requirementsunderstand what acy, (paper, ink, toner), and identifydevices are in the and supply requirements maintenance, lease/ problematic devices.printer environment. of each device. depreciation expense, and downtime costs. 5. Identify the opportunities for improvement Use the results from the previous four steps to identify devices that can be eliminated and areas where devices can be consolidated without harming workflow and productivity. Refer to the addendum, “Uncovering the Cost-savings of Printer Consolidation: Process Roadmap” for a more detailed step-by-step guide Info-Tech Research Group 19
  20. 20. Ensure visible executive support to achieve higher cost savings and lower end-user resistance.Use the cost figures from identifiedopportunities for improvement to sell the Scenario:initiative to executives. End users are hesitant to give up their desktop printers.• Visible support and buy-in of the executive team creates cost-savings above .01% of total Case Study: revenue for the organization. Public healthcare organization that supports 8,000 end-users realized one- time savings of $450,000 and an annual $285,000 in cost savings… “ The first person to get rid of their desktop inkjet was the CEO. All executives had desktops removed “ from their offices. – IT Manager, Public Healthcare Read the in-depth case study here.Source: Info-Tech Research Group N=23 Info-Tech Research Group 20
  21. 21. Centralize, consolidate, and replace.Centralize and network all possible devices. Scenario: High print cost/page; no• When making equipment and supply decisions, standardization. always remember that equipment typically makes up only 5 to 10% of the total cost of ownership. Case Study I:• Operation of printers, including supplies, Media & entertainment firm reduced maintenance, and repairs, represents the rest, so $/page by 50% by consolidating and costs are further decreased when only a few types of standardizing their printer fleet. printers need servicing and supplies. Better deals could be negotiated with printer, toner, and paper vendors.Whenever possible, consolidate to as fewmodels as feasible. Case Study II: Tech firm consolidates and• Choose MFPs over standalone printers whenever standardizes to two device types has possible. decreased TCO by 20%.• MFPs costing three times more than a mid-range “ laser printer may be a wise purchase if the device We had so many printers all “ is less costly to operate on a per-page basis.• At high printing volumes, upfront purchase price over the place… there was no pales in comparison to savings from efficient toner standardization whatsoever. and supply use. - VP of IT, Media & Entertainment• This not only allows for elimination of redundant devices such as fax machines and scanners, but Read in-depth case study one here. also lowers TCO, since cost-per-page is typically 50% lower than with dedicated laser printers. Read in-depth case study two here. Info-Tech Research Group 21
  22. 22. Explain PrC rationale to color end-user reaction.Behavioral changes are painful, with a high hassle factor.• Do not underestimate the difficulty of getting users to change their behaviors.• Most of the time, there is no need to print in color or on a single side of the paper, but users don‟t like what they aren‟t used to.Communicate costs Solicit users early Explain the tradeoff Enforce policies • Inform users of the • Consider their input • Educate end users • Use strict and true cost structure when making device on the high consistent print associated with decisions aggregate price of policies to control printing • Communicate IT‟s frivolous printing end user print • Hardware, justification for the behavior behavior • Consumables initiative • MFPs bring new • Do not tolerate • Electricity • Prepare responses advantages, renegade print to typical end user including green practices • Maintenance benefits concerns Info-Tech Insight:Print services can be politically sensitive. Prepare for strong end-user pushback by securing a seniorbusiness sponsor. In smaller organizations, this is ideally a President, CEO, or Chief Operations Officer.
  23. 23. Communicate that personal printer costs aren’t peripheral.TCO for desktop printers is not trivial: Scenario: Desktop printers are rampant.Most desktop printers are ink-jets that are extremelycostly – $/page cost is almost four times amount for Case Study:laser toners used in workgroups and MFPs 70 of 200 users had desktop printers, printing a total of 20,000Hardware refreshes are required more frequently for pages. $40K in cost-savings isdesktop printers since their useful lifetime is shorter discovered from aggregating desktop printer costs and enforcing stricterHaving multiple models of desktop printers in the print policies.fleet does not allow for bulk purchasing of supplies – “cannot realize economies of scale due to a lack of Ink is too expensive for thestandardization “ desktop printers – that’s all youEach desktop printer, regardless of utilization rates, need to know. It’s a no brainer.increases energy consumption and costs – IT Director, ManufacturingUsage of desktop printers is difficult to track andoftentimes employee induced theft/shrinkage occurs Read the in-depth case study here. Paper, Total Hardware Ink, Electricity Maintenance Printer Toner Cost
  24. 24. Bring end-users into the process early to identify cost-savings opportunities and minimize complaints.• Solicit the input of end-users through the surveys, and review their comments• Consider their input when making elimination and consolidation decisions• Require end-users to sign-off on consolidation decisions, revised floor plans, and printer policiesCommunicate IT’s justification for each end-user’s argument to keep their desktop printers: End-user Argument/Concern IT Argument ““I don‟t trust network storage. I Explain security and benefits of People did notwant physical copies.” content management systems. understand how“I use my desktop a lot. I need it.”  Users should be printing on much this costs. cheaper network MFPs …Printing is an“I don‟t use it a lot, so it‟s not  Waste of money to maintain and 80s or 90s habit.costly.” power under-utilized devices People are“I need security and  MFPs have biometric/password- addicted to it…confidentiality.” release functions you need to break“I don‟t have time to wait.”  Print jobs in queue are released this habit. when users are at the device – IT Manager, Tech“I don‟t want to walk that far.”  Devices will typically be within 50 Services feet - not far
  25. 25. Explain the tradeoff between printing privileges and other cost-cutting opportunities. Issue Talking PointEducate end-users on the aggregate costs of “What would you do if it were your company? Cutprinting, and communicate that the cost- costs or cut jobs?”savings are not petty.Communicate the green benefits. “Decrease the amount of consumables, energy, and hardware used. Do your part to be green.”Enhanced features and functionalities of “The new MFPs are equipped with special featuresMFPs. that will increase your ease of use, output speed, and improve the security of documents.”Educate users on avoiding printing cost culprits.Don’t print “dense” documents.Avoid printing documents with many graphics or dark-color backgrounds.Print jobs with page coverage of 5% (e.g.: a text e-mail) cost one to five cents per page, while jobs withcoverage of 40% cost up to forty cents per page.Use print area wisely.For draft documents, such as presentations, users can print multiple pages on single sheets.Enable aggressive energy savings settings.Enable energy savings on all printers, so they do not sit idle, consuming energy
  26. 26. Ensure printing policies are black and white.Do not allow desktop printers in the printer environment. • Create a procurement policy whereby all device requests must have valid justification and be approved by department managers and IT. • Senior executives must not be an exception to this rule. • Legitimate exceptions, e,g,: end-users with physical disabilities preventing MFP access, are acceptable and must go through a review/approval process.IT should discontinue supporting desktop printers and other non-approved/non-networked devices. • Enforce policy compliance for end-users and use standardized devices. • IT staff should be reprimanded for providing support or administrative rights to renegade end-users.Set printers to double-sided and monochrome by default. • Double-sided documents are often adequate for internal business. • The cost of color printing is up to ten times that of monochrome printing.Send print jobs to lowest-cost devices by default. • Make lowest cost-per-page devices the default for nearby users. • New MFPs have a cost-per-page of around half that of older network-attached laser printers.Info-Tech Research:Use Info-Tech’s Printer Policy template as a starting point for developing a comprehensiveenterprise printing governance policy.
  27. 27. Use print management software to reap on-going benefits from PrC.Understand Benefits: Both Kinds of Green Barriers: Why No One Cares PrC Identify Create Prepare the Make the Manage End-UserImplement Accountability Inventory Savings Business Case Resistance Opportunities Manage Mid-Term Strategies Long-Term Strategies
  28. 28. Organizations that conduct one-time consolidation initiatives are leaving money on the table. On-going initiatives achieve an average of 41% greater annual cost savings than one-time initiativesOn-going savings result from changes in enduser print behavior.Altering user behavior is difficult and requireslonger-term strategyConsider the following options for controllingbehavior-related print costs: Source: Info-Tech Research Group• Print Management Software N=40• Print Outsourcing• Chargeback Printing Model Mid-term strategies that require fewer behavioral changes can beWhile software price points vary considerably, implemented more rapidly:most solutions typically enable the following:• Granular cost control • Enable print roaming and ID• Streamlined printer management verification• Behavior management • Set up user quotas • Renegotiate print serviceAutomating print management can effectively contractsreduce frivolous printing and associated costs • Train users on self-support Info-Tech Research Group 28
  29. 29. Mid-term strategies require time and investment, but require few changes to user behavior and print strategy.Use a management console to enable print roaming and identity verification. • Require user-queued print jobs to be authenticated at a printer. • This prevents errant print jobs which are lost or not picked up. • The average cost of a wasted page is about six cents, and the average employee wastes about 1,400 pages a year (around $85 per user) • Creates additional security and privacy, by requiring user authorizing.Set up user accounting or quotas. • Provide usage records to business managers so they can understand the true cost of users‟ printing. • Set up printing quotas for each user. • This may create short-term pushback, but causes users to ask themselves whether a particular print job is really necessary.Renegotiate and consolidate printer service contracts. • Revisit contract terms and shop them around to ensure pricing is competitive. • Leverage size and centralization by consolidating to a single vendor, and use the printing needs of the entire enterprise to decrease pricing and place limitations on future contractual obligations.Train users on hardware self-support to reduce vendor or help desk costs. • Train users to remedy paper jams and move paper in and out of paper trays (e.g.: create laminated cards). • Keep in mind that toner replacement and paper refills may need to be conducted by IT or the supplier to prevent expensive user errors. Info-Tech Research Group 29
  30. 30. Determine if your organization is a complex print environment.Ask Yourself… Do I require rigorous cost control (containment and/or avoidance)? E.g.: My firm is suffering from the downturn and is aggressively containing costs. How critical is information security to my environment (IP and privacy protection)? E.g.: My law firm prints confidential documents Do I need to make use of cost allocation for either internal chargeback or actual client billing? E.g.: My design firm bills clients for high printing volumes for their projects Are green initiatives significant to my operations, as mandated either internally or by externalregulations? E.g.: I am LEED certified and must comply Security Allocation Complexity Cost Compliance Control Info-Tech Research Group 30
  31. 31. Adopt print management software appropriate to printer fleet size and print need complexity. Investigate the following solutions based on the profile • Printer management solutions range of your organization: from tools bundled with ink-jet printers that track consumables status to software suites that track data for thousands of print devices. Full Large Mid-level • Software included with print devices Manage (OEM) can pool print jobs, secure access, and centralize jobFleet Size administration. • Mid-level software can track costs, generate reports, and centralize management. Small OEM Mid-level • Full Manage software allows for absolute enforcement of print policies and fully control of printing Understand the tools available, Low High identify enterprise needs, and pursue acquisition through Complexity dealer or industry channels. Info-Tech Research Group 31
  32. 32. Mid-level Full Manage Vendor-provided solutions are adequate control forOEM Mid- level small organizations with simple printing environments. Cost Savings Tools Vendors Profile Opportunity You’ll Need and Suites• Small enterprises • Setting simple • Basic Print • HP - Web• <100 users default print Tracking JetAdmin• Basic print settings to • Print • Canon NetSpot, management reduce print Monitoring • Lexmark environment jobs and cost to • Simple MarkVision• No need for print Reporting • Xerox chargeback • Pool print jobs • Centralized CentreWare strategy and secure Management Web, Job• Dealing with access Tracking complex sales • Centralize job channels for third administration party vendors is likely a waste of resources Info-Tech Research Group 32
  33. 33. SMBs with greater print control needs can leverageMid- Fulllevel ManageOEM Mid- level mid-level solutions to manage behavior. Cost Savings Tools Vendors Profile Opportunity You’ll Need and Suites• Small-mid-sized • Move to a utility • Print Tracking • CZ - Print enterprises printing model • Print Job Tracker• <500 users and charge each Monitoring • PaperCut -• Low print needs department for its • Analysis & ChargeBack and complexity printing costs to Reporting • CapellaTech -• Law firms, make managers • Centralized Megatrack professional accountable for Management • Alagus Print firms, accounting, costs • Document Admin design, research • Control document control • Antamedia• Solutions start flow for more • Basic Print around $500, but efficient chargeback Manager require additional compliance • Client billing per device costs. • Client billing • Manage high security documents Info-Tech Research Group 33
  34. 34. Mid-level Full Manage Larger organizations without high print control needsOEM Mid- level can get away with mid-level software to meet needs. Cost Savings Tools Vendors Profile Opportunity You’ll Need and Suites• Mid-sized • Single pane of • Print Tracking • Brooks enterprises glass display • Print Internet• 100-1000 users allows for Monitoring Software -• High print needs proactive cost • Analysis & Remote and complexity control Reporting Print• Business & • Track costs by • Centralized Manager Education user and Management • CZ - Print• Solutions start generate reports Job Tracker around $500, but on usage and • PaperCut - require additional consumables to NG per device costs. conduct • Nagios informed, recurr • Ringdale ing reviews of FollowMe print needs Info-Tech Research Group 34
  35. 35. Mid-level Full Manage Full control solutions will only attract largeOEM Mid- level organizations with a mature print strategy. Cost Savings Tools Vendors Profile Opportunity You’ll Need and Suites• Large enterprises • Absolute • Advanced Print • Canon -• >500 users enforcement of Tracking and imageWARE• Complex print policies and Monitoring Enterprise environment with restrictions to • Analysis & Management high needs ensure printing Reporting Console• Mature print optimization • Centralized • Netaphor - strategy • Quotas at user, Management SiteAudit• Government, job, type level, • Client Billing • Print Audit education, redirect • Inventory listing • Pharos engineering, • Define common • Restrictions Uniprint and architecture usage patterns • Printer Redirect BluePrint• Expect to spend and have • Usage • Dell thousands for a software Scheduling OpenManage tailored solution intervene when that will save time settings aren‟t and guide cost- optimized savings. Info-Tech Research Group 35
  36. 36. Outsourcers can often take care of some or all printing needs for a total cost that IT cannot match in-house. Outsource highest-cost print services. Outsourcing Scenario: • Outsourcing print services is most appropriate My firm requires very high print for: volume and I need to recover the • Organizations engaging in high-volume, costs. high-quality print jobs, with growing levels of output. Case Study: • Organizations with many customer-facing Architectural engineering firm with print jobs that include mailing. 3,800 end-users has realized annual cost-savings of over $10 million by • Print outsourcing is a long-term tactic, outsourcing their printing and requiring an assessment of in-house printing recovering 65% of costs by costs compared with the cost for a similar level implementing a chargeback model to of service provided by an outside party. clients • When end-to-end costs are factored in, printing, managing, mailing, and tracking high-quality customer deliverables can be up to $5 per unit. Read the in-depth case study here. Info-Tech Insight: Companies with more than 2,000 outbound mailings per month can realize savings of 30% to 60% by outsourcing the printing process. Info-Tech Research Group 36
  37. 37. Summary• PrC is an often overlooked initiative despite its compelling cost saving potential and green, non-monetary benefits• Successfully implementing PrC requires a structured approach to overcoming barriers: • Create aggregate print accountability to track and inventory print devices, determining aggregate printing costs • Use aggregate cost data in conjunction with usage, requirements, and cost to uncover cost saving opportunities • Present cost saving opportunities to executives to gain their buy-in • Leverage executive buy-in to educate end users and influence changes in their print behavior with minimal resistance• Enterprises that conduct one-time initiatives are leaving money on the table • Deploy print management software proportionate to enterprise size and needs of the print environment to achieve on-going cost savings • Consider print outsourcing if your enterprise has high volume/high quality printing needs Info-Tech Research Group 37
  38. 38. AppendixInfo-Tech Research Group 38
  39. 39. An inventory provides the baseline information for PrC analysis.1.Take an inventory 5. Identify the of the fleet opportunities Description of Identify what devices exist in all office locations, and gather the following information: process: * Please note that this is an exhaustive list of data inputs that is recommended to fully uncover the cost-saving potential of PrC, but all inputs are not required for a rough estimate of cost-savings. •Device type (printer, copier, fax, scanner) •Network vs. non-network •Make, model, serial number •Location in office •Device owner (personal desktop, IT, lease, etc.) •Number of users supported •Monthly duty cycle (capacity) •Page count to date (# pgs printed) •Device age (in months) •Estimated remaining useful life (in months)“ We did a walk-around of the 75,000 square foot office twice … and I looked at specific users to see if they hooked up printers that weren’t on the network. … I know all the nooks and crannies, and I think we captured “ them all. - IT Director, Manufacturing Back to Deck Info-Tech Research Group 39
  40. 40. Information for the inventory will come from a variety of sources – be thorough. 1.Take an inventory 5. Identify the of the fleet opportunities How-to: Refer to purchase receipts, statements, service records, etc. Automated discovery tools and network mapping Do a physical walk-around of facility/office site to ensure all non-networked devices are uncovered (may be hiding in offices or cubicles) Stakeholders: IT Director leads and oversees  1-2 IT staff at each office site takes inventory •Depending on organization size, a team of IT FTEs can be resourced to the task •Organizations with limited IT FTEs but sufficient budget can use consultants •Print/Asset management vendors offer this service free of charge using their software in hopes that the organization will purchase the solution in the end Accounting and Supplies department provide additional information as needed Tool: Refer to tab, ‘1. Inventory’ in the “Reduce Costs through Printer Consolidation: Tool”.“ We outsourced the process to a vendor that offered to collect the data for free … It will require a couple of sit-downs with managers of various departments, but it’s great … it saves time and money. “ – CIO, Market Research Info-Tech Research Group 40
  41. 41. Analysis begins with understanding how each device is being used. 2.Assess the fleet 5. Identify the requirements opportunitiesDescription of Determine what function each device serves and how process: Application & Network: •Identify the device as networked or non-networked •Identify the device as a desktop, workgroup, or MFP •Determine what the device is being used for (internal documents, external documents, high-quality graphics/color, scheduled, ad hoc/on-demand) •Determine its place in the organization’s workflow – its dependencies (applications, processes, people) and its criticality of uptime •Determine needed features (color printing, scanning to e-mail, stapling, etc.) Platform: •Determine whether devices are compatible with Vista/Windows 7 or with the direction of the future IT strategy Security/Privacy: •Determine the device’s need to output secure documents and its required security features (release function, software, etc.) •Note compliance frameworks that must be adhered to (PrCI, ITAR, HIPAA, etc.) Supplies: •Paper (size, quality), ink (color, black), toner Info-Tech Research Group 41
  42. 42. Involve departmental input to determine how each printer is used. 2.Assess the fleet 5. Identify the requirements opportunities How-to: Ask department managers for input to understand the printer’s role in workflow Stakeholders: IT Director leads and oversees  1 IT staff at each office, or allocated team visits each office site, or vendor Departmental managers for input on device dependencies and requirements Tool: Refer to tab, ‘2. Requirements’ in ITA Premium, “Reduce Costs through Printer Consolidation: Tool”.“ I quickly identified the need for only three types of devices: departmental networked color printers, departmental networked black and white printers, and personal printers that are locally connected. … We had “ so many printers all over the place… there was no standardization whatsoever. - VP of IT, Media & Entertainment Info-Tech Research Group 42
  43. 43. Estimate the total cost of printing. 3.Assess the 5. Identify the fleet costs opportunities Description of Determine the total cost of ownership of the printer fleet: process: •Purchase price or lease expense of each device (whichever is applicable) •Cost of consumables: paper, ink, toner, etc. (if not included in lease agreements) •Depreciation expense (if applicable) •Cost of maintenance: per-call service, retainer service, on-site contracts, included in $/page contracts •Calculate downtime costs (# outages, loss of productivity, etc.)  Use the ITA Premium “Downtime Cost Calculator”. •Overall $/page cost Determine cost of external printing at third-party companies: •High-quality, color, bulk, etc. print jobs at print houses (i.e.: Kinko’s)“ Printers were [procured ]corporately … so [IT] didn’t know the true costs. ... Copiers had a lot more hidden costs. We had to look at contracts, invoices, consumables, and we looked at the GL under ‘Office Supplies’. … I “ didn’t realize so much color copying was being outsourced until we looked at the invoices. - VP of IT, Architecture Info-Tech Research Group 43
  44. 44. Include the costs of supplies and paper. 3.Assess the 5. Identify the fleet costs opportunities How-to: Assign a IT FTE to track/monitor the costs of the printer fleet over a set time period (at least 3 months is recommended) Calculate the costs for each device (identified on previous slide)  If devices do not have page counters, measure consumption costs by tracking paper, ink, or toner purchases through the Supplies department Analyze help desk tickets or outage tracking systems to determine maintenance and downtime costsStakeholders: IT Director leads and oversees 1-2 IT staff or vendor tracks costs from each department and aggregates totals Accounting/Supplies department provides purchase receipts from devices and consumables Tool: Refer to tab, ‘3. Costs’ in the ITA Premium, “Reduce Costs through Printer Consolidation: Tool”. “ All department costs were spread out. … Consolidating it made it look like costs went up a lot because costs were now aggregated, but the total was less than the previous totals. “ - VP of IT, Architecture Info-Tech Research Group 44
  45. 45. Involve the end-users in understanding particular requirements and concerns. 4.Solicit end- 5. Identify the user input opportunitiesDescription of Understand end-user satisfaction with each device’s performance: process: •Quality of output •Ease of use •Speed of printing •Need for special features and its performance (print release functions, etc.) •Availability, frequency of downtime •Performance of service providers (maintenance time) Understand why certain devices have low satisfaction scores. Determine the cause: •Insufficient user training •Overloaded device (output > duty cycles) •Lacking required features •Vendor does not provide adequate service “ “ Customers’ reflection of what’s needed is different from the technical view. – IT Manager, Public Administration Info-Tech Research Group 45
  46. 46. A survey can be used to identify problem areas and validate findings so far. 4.Solicit end- 5. Identify the user input opportunities How-to: Create user satisfaction survey to gauge fleet performance Distribute survey to all end-users Collect surveys and compile results – take averages of scores Examine devices that received low scoresStakeholders: IT Director oversees One IT staff member administers survey and compiles results Fair sample size of end-users for each device to avoid bias Tool: Survey sheets: refer to tabs 4a. through 4c. End-user Survey Analysis’ in “Reduce Costs through Printer Consolidation: Tool”. “ It was the help-desk manager’s role to schedule quarterly calls with all department heads to assess their satisfaction with service. … We conducted this before and “ after roll-out to see what they liked/disliked about the printer changes. - VP of IT, Media & Entertainment Info-Tech Research Group 46
  47. 47. Identify which printers can be eliminated to estimate potential savings. 5.Identify the opportunitiesDescription of Identify opportunities for improvement to support the business case: process: 1.Fleet requirements •Scrutinize all desktops, standalones, or non-networked devices to determine need and potential to be eliminated •Compare utilization with duty cycles of devices within one department or within close proximity of each other to determine consolidation opportunities •Identify devices that can or should be eliminated due to their nearing end of life, or lacking application, platform, security requirements 2.Fleet costs •Identify cost-saving opportunities from eliminating all non-networked devices, desktop devices (i.e.: costly ink-jet printers) •Identify devices that are cost-inefficient (maintenance, supplies, downtime, etc.) •Consider cost-savings from standardizing device/supplies procurement, enforcing stricter printing policies (double-sided, monochrome settings), ceasing to print at third-party houses, reducing shrinkage of supplies “ “ Align inventory with needs… Making decisions based on what’s needed and where. – IT Manager, Public Administration Info-Tech Research Group 47
  48. 48. Consider end-user and ‘Green’ implications. 5.Identify the opportunities Description of Identify opportunities for improvement to support the business case: process: 3.End-user satisfaction •Consider scores and responses from end-user satisfaction surveys and how relocation/consolidation/elimination of certain devices would impact user productivity and satisfaction •Note: End-user responses may be biased in order to keep their printers 4.Green benefits •Highlight the opportunity to reduce the organization’s environmental footprint through reduced use of consumables such as paper, ink, toner •Consolidating devices also reduces the use of electricity and the need to refresh a large printer fleet in the future thereby reducing hazardous waste“ We’re a law firm so we generate a lots of paper. … [we’re] moving to electronic files, using the large [monitors] and we also enhanced our copiers so … hit a button and scan a document straight to your filing system. … we’ve “ been able to reduce the use of paper and ink and the environmental impact there that grows along with the increases in correspondence. - CIO, Law Firm Info-Tech Research Group 48
  49. 49. Present cost-saving opportunities to executives to gain approval. 5.Identify the opportunities How-to: Use the results from the previous four steps to identify areas for improvement Commission a third-party environmental auditor to measure impacts of printer fleetStakeholders: IT staff/team makes preliminary recommendations from findings IT Director examines findings and makes overall recommendations to senior management Tool: Refer to tab, ‘5. Opportunities’ in the “Reduce Costs through Printer Consolidation: Tool”.“ We looked at our service desk history to track which printers were more problematic and why …ended up retiring printers that were cheap to buy but costly to maintain versus getting slightly more costly but robust machines. … “ It was important to reduce unnecessary costs NOT to hurt flow of work. – CIO, Market Research Info-Tech Research Group 49
  50. 50. Follow Info-Tech’s process roadmap to start realizing cost-savings. Info-Tech Research Group 50
  51. 51. Case Studies Table of Contents Back to Deck Click on the ‘#’ or ‘Industry’ of a case study to view its contents: situation, opportunities, and results. # Industry End-users Printer Consolidation Strategy Cost-savings 1 Public Healthcare 8,000 Eliminated 27% of fleet and replaced 90% of $450,000 (one- remaining devices with more efficient ones time) $285,000 (annual) 2 Non-profit 150 Eliminated 46% of fleet based on utilization $7,500+ (annual) 3 Media & 1,300 Consolidated and standardized devices 50% reduction of Entertainment $/page 4 Manufacturing 200 Eliminating all non-networked devices $40,000 (annual) 5 Architecture 3,800 Completely outsourced printing, $10,000,000 implemented chargeback model (annual) 6 Technology 2,100 Consolidated and standardized devices 20% of TCO Services 7 Market Research 700 Outsourced to asset management vendor TBD 8 Public 500 Attrition of old devices TBD Administration* Source: Interviews with Info-Tech clients 9 Manufacturing 800 Consolidating into a new building TBD Info-Tech Research Group 51
  52. 52. Elimination Scenario: Back to Deck I need to switch to MFPs for features and functionality.Strategy: Eliminated a quarter of fleet and replaced remaining devicesIndustry Public Healthcare End-Users 8,000Role CIO, IT Manager Savings $450,000 + $285,000 annuallySituation:• Printer vendor offered to uncover opportunity of PrC free of charge in exchange to be their sole provider for five years.• Director of IT Support was interested in PrC since a shift to MFPs would allow for increased features and functionality.Opportunity:• IT Director realized 62% of the 1,095 fleet was not on the network which resulted in high consumption costs that were not being tracked – especially toner costs.Results:• Eliminating 93% of the fleet resulted in $450,000 cost-savings which was used to finance the leasing of 721 more efficient MFPs (79 devices were salvaged). Did not require a request for additional capital budget.• 96% of 800 devices are now on the network except for 34 devices that are attached to clinical carts. This has resulted in annual savings of $285,000 from reduced consumables cost (mostly ink and toner) and maintenance costs since the lease contract charges $0.04/page and includes a 5-year warrantee. This has saved 1.4 IT FTE‟s time which has been re-allocated to other projects.• Printer vendor provides an on-site technician fully resourced to the hospitals; and, monthly usage reports which allows the IT Director to track costs, notify departments when normal usage rates are exceeded, and optimize the usage of the fleet by re-locating devices.• All printer lease costs fall into IT‟s budget and usage gets charged to each department at year-end. IT Director has set up strict printer policies, “If you are 50 feet within a printer, you‟re not getting another one.”• Key success factor was that the initiative was supported by senior executives. “The first person to get rid of their desktop inkjet was the CEO. All executives had desktops removed from their offices.” Info-Tech Research Group 52
  53. 53. Consolidation Scenario: I need to get better utilization out of my printers.Strategy: Eliminated almost half their printer fleet based on utilizationIndustry Not-for-Profit End-Users 150Role IT Manager Savings $7,500-$9,000 annuallySituation:• CTO was faced with challenge of reducing costs.• Chargeback model had already been in place for 10-15 years (IT charges departments $0.08/page which includes ink/toner, maintenance, energy).Opportunity:• Identified the opportunity to reduce printer fleet of 35 printers/copiers by looking at monthly duty cycles and actual utilization rates.• “Although those savings aren‟t significant in normal times, it‟s something, and it‟s worth it right now.”• Eliminated 16 out of 35 devices based on their utilization, location in the building, and features.Results:• Resulted in $7500 - $9000 annual cost-savings from reduced use of consumables, repairs, and energy – it does not factor savings in IT support time from reduced helpdesk tickets.• Printer TCO decreased 40% – 50% from approximately $18,000 in previous years.• Remaining 19 devices were recognized as necessary to support print volume in those departments (not large enough to lease/purchase MFPs), but chargeback model keeps costs under control.• IT is responsible for tracking all printer/copier costs (except paper which is supplied by each department).• Device requests must be approved by senior leaders and IT. IT then purchases one of the pre-approved list of devices depending on feature requirements – typically mainstream HP devices. Info-Tech Research Group 53
  54. 54. Standardization Scenario: Back to Deck My consumables costs are out of control.Strategy: Consolidated and standardized the printer fleet.Industry Media & Entertainment End-Users 1,300Role VP of IT Savings $/page reduced by 50%Situation:• IT Director reviewed budget line by line as part of an initiative to reduce costs during tough economic times. Identified printer and toner usage as an area of opportunity to cut costs.• Printer purchases are considered a capital item on IT budget, and consumables are considered „supplies expense‟. However, IT was not tracking or controlling costs.• Departments requested devices or supplies from IT and were granted them without approval needed. Printers were purchased as long as there was the budget, and bought models without concern for standardization.Opportunity:• IT Director realized that toner costs were out of control, and maintenance/support fees for printers were annual sunk- costs that could be reduced if printers were consolidated and standardized.• Moved towards standardizing three types of devices: networked color printers, networked B&W printers, and desktop printers.• Eliminated underutilized devices (reduced networked workgroup printers from 400 to 300, reduced desktops by 10%), and replaced inefficient older devices with standardized models.Results:• Savings were realized from eliminating devices reduced toner and support costs which financed purchase of new standardized models. Payback period of new printers was less than 1 year.• Standardization allowed $/page to be reduced by more than 50% ($0.045 to $0.02) since better deals could be negotiated with printer, toner, and paper vendors.• Stricter purchase approval process is now in place. Departmental managers are interviewed to justify need, and approval is granted by IT Director. Info-Tech Research Group 54
  55. 55. Elimination Scenario: Back to Deck I have too many desktop printers in the workplace.Strategy: Eliminated all non-networked devices and enforce print policiesIndustry Manufacturing End-Users 8,000Role IT Director Savings $40,000 annuallySituation:• Despite having 10-12 networked, high-speed MFPs spread evenly across the building, the IT Director discovered 70 out of 200 users had desktop printers.• Furthermore, those 70 users were printing a total of 20,000 pages on the desktop printers despite an all-inclusive contract with a printer vendor that includes the cost of 70,000 printed pages (ink, toner, maintenance included).• This resulted in wasted dollars from the underutilized page quota for the MFPs; as well as the costs incurred to purchase, supply, and support the desktop printers.Opportunity:• IT Director discovered a minimum of $40K in cost-saving opportunity by simply aggregating the costs associated with the non-networked desktop printers (ink, toner, maintenance).“Ink is too expensive for the desktop printers – that‟s all you need to know. It‟s a no brainer.”• Need for stricter IT procurement approval policies. MFPs serve all end-users‟ needs sufficiently, but employees are used to the entitlement of having printers on their desk. “They go out to the nearest Staples, buy a printer for under a hundred dollars, hook it up to their computers, and then expense it to their managers. We‟ve locked down the administrative rights, but a coffee here and there [for IT] and eventually they get those printers hooked up.”Results:• Employees are being urged to go paperless by saving to SharePoint or imaging in other ways. Users are resistant to storing things on the network because of their fear of losing things.• IT is overcoming end-user resistance by communicating cost-saving opportunity and by educating that documents get backed up on SharePoint with little risk of downtime. Info-Tech Research Group 55
  56. 56. Outsource/Chargeback Scenario: Back to DeckI need to reduce costs from high volume and quality needs.Strategy: Outsource printing and recover 65% through client chargebackIndustry Architecture End-Users 3,800Role VP of IT Savings $10 million annuallySituation:• Prior to outsourcing their printer environment, TCO for 900 printer devices was unknown because it was spread across all departments (insurance, taxes, maintenance, marketing).• Printer and copier costs were massive due to the volume of printing being done for architectural projects. However, true costs were hidden since the supplies and devices themselves were purchased and expensed by each department head under a general office supplies account.Opportunity:• Consulting group identified printers as an area of opportunity within their overall organizational strategy for shared services. After totaling the costs from printer contracts, invoices for consumables, and invoices from outsourcing color copying across all departments, the organization realized a large opportunity for savings.Results:• IT decided to outsource their printing to a vendor (devices are still on-site) and implement a chargeback model.• Each B&W copy costs $0.06, and is being charged to respective departments/projects that it is being printed for.• Project managers are now responsible for tracking their printing costs. Almost 100% of these costs are recoverable since these fees are being charged directly to clients‟ projects.• Printer costs from all departments are now aggregated into one overall account. IT is responsible for monitoring this figure and putting reporting tools in place to track each department‟s spend. Allows for accountability and comparability.• Resulted in over $10M in savings since 65% of printing costs are now being charged to clients and the chargeback model has reduced unnecessary internal printing and color copies.• Reduced printing TCO from almost half of IT budget to less than a third. Info-Tech Research Group 56
  57. 57. Standardize & Track Scenario: Back to Deck I need to control printing without hurting workflow.Strategy: Consolidated and standardized devices, shift edcost responsibility to department managersIndustry Technology Services End-Users 2,100Role IT Manager Savings To be determinedSituation:• Chief Administrative Officer introduced a strategic plan that outlined areas to reduce costs in light of tough economic times. Reducing printer costs was identified as one of these areas.Opportunity:• Sought to eliminate desktop printers and replace with MFPs to the extent that it didn‟t negatively affect productivity. “It was important to reduce unnecessary costs - not to hurt flow of work.”• Referred to service desk history to identify which printers were most problematic and why.• Resulted in retiring printers that were cheap to buy but costly to maintain.• Only devices needed in the fleet are Xerox MFPs (leased), HP ink-jets where absolutely necessary (due to security requirements), and a handful of high-quality color printers for external documents.Results:• Consolidation and standardization to only two device types has resulted in cost-savings from bulk-purchasing of supplies, and less overall end-user printing. “We needed to break the thought pattern that having a printer on your desk is a right of passage. People are in the habit of printing in color every five minutes; but, if you make people walk to a printer, they print less.”• Facilities Team tracks printer costs through supply orders and electronic device procurement system.• Procurement requests for desktops need managerial approval and will not be approved unless deemed essential for workflow. IT will not support devices which are outside of the approved list.• Printer costs show up as a budget item on each department‟s P/L statement, publicly viewable across organization, and are reviewed by the executive team. “If costs are higher than expected, the executives will flag it. Managers don‟t want to see highlighted cells when they get their statements back, so they have incentive to control it.” Info-Tech Research Group 57
  58. 58. Vendor Consulting Scenario: I don’t have the resources to uncover my print costs.Strategy: Outsourced to asset management vendorIndustry Market Research End-Users 700Role CIO Savings To be determinedSituation:• VP of IT Infrastructure has outsourced the process of uncovering their printer costs to an asset management software vendor. Offered as a free service to demonstrate software capabilities.• Current printer fleet consists of workgroup printers shared by groups of users, desktop printers for 3-8% of end-users, and 1-3 copiers per office (34 offices).• Not expecting huge cost-savings from eliminating desktop printers because strict procurement policies has controlled the number of desktops in environment. All purchases need to be approved by him and CIO.Opportunity:• Certain that there is a better way to configure the printer fleet to better serve end-user needs and match duty cycles with utilization rates. “I‟m more concerned about the soft issues. What will happen if we move that printer there?”• Opportunity to better track printing costs. Previously, IT and Facilities split the responsibility of tracking costs. IT owned/tracked printer costs (workgroups and desktops), and Facilities owned/tracked copier costs.Results:• All cost-tracking responsibility has shifted to IT to allow for better management of fleet.• Vendor is monitoring fleet for 60 days (on-going). If report findings reveal a reasonable return, they will purchase software and go ahead with recommendations.• „Reasonable‟ ROI depends on #FTE required to implement initiative. Given their limited number of IT staff (17 people), must weigh available resources with cost-saving opportunity of project. Info-Tech Research Group 58
  59. 59. Passive Attrition Scenario: Back to Deck I want to consolidate but have limited support from execs.Strategy: Attrition, due to low executive buy-inIndustry Public Administration End-Users 500Role IT Director Savings To be determinedSituation:• Organization rents 10 MFPs with a $/page that is charged back to respective departments.• However, 80 desktop printers that are not connected to the network exist in the printer environment. Costs associated with these desktops were unknown since each department purchased their own supplies which got rolled up into general expenses.• Equipment acquisition approval process is in place, but a lack of executive-level support has resulted in a growing number of desktop printers that get approved. IS has no choice but to purchase and provide support to these devices.Opportunity:• IS department is planning to eliminate at least 50% of these desktops through attrition – a passive strategy to reduce unnecessary printing, and costs of consumables, electricity, and maintenance.Results:• Currently consolidating, but doubtful of success due to low executive buy-in, and cost-savings may be minimal.• IT Manager realizes the importance of stakeholder buy-in at all levels driven by the cost-saving opportunity. “Even though every dollar counts, $5000 a year [in cost savings] is not impressive. It needs to be ranked important by Accounting and other leaders.”• Although cost-savings have not yet been realized, help-desk tickets have gone down and there are direct savings with each desktop that is eliminated from the environment. Info-Tech Research Group 59

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