Managed Print Service

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Learn what your document cost are and how to control them.

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  • © 2007 DocuAudit International, Inc. In working with customers we find an interesting phenomenon. While most companies track their assets and expenses, we find that they rarely know how many document output devices that they have, how these devices are being used, and what these devices and the resulting documents truly cost. With the growth of the printed documents projected to continue for at least the next twenty years, it is very important that companies first understand the impacts and costs of their current situation. The next step is to create a strategy to better manage the existing print assets and control the rising costs.
  • © 2007 DocuAudit International, Inc. The trends that we see impacting document technology decisions are as follows: Companies have more document output devices then ever before and more are being added every year. With more document output devices, it is no surprise that printing volumes are continuing to rise. The increasing volume is resulting in an increased cost related to usage, management and administration of the fleet of output technology. Today, I would like to take a few minutes to explain some steps that have proven to help control the rising costs while reducing your burden for managing the output fleet.
  • © 2007 DocuAudit International, Inc. The growth of document output devices is continuing to be fueled by the growth of the printed document. The volume of documents is increasing by 11% annually with paper use expected to grow for another twenty years. The impacts of this increased volume is putting more pressure on IT and on the aging fleet of devices. The volume of printed pages is also evident in the amount of printer related network traffic and help desk calls to IT. With an ongoing 11% annual increase in output, the strain on network and human resources will continue to grow. With over 60% of all documents originating at printers and with half of the printers being over five years old, the result is that more IT time is required to deal with printer issues.
  • © 2007 DocuAudit International, Inc. Most customers don’t realize the age of the printers in their office or even on their desk. Generally, older printer technology lacks the features and capabilities of state of the art printers, and the devices tend to have higher operating costs compared to newer devices. While customers tell me that they still have an old printer because it is owned and it still works, we often discover that the cost of operating and maintaining the older device is more expensive than acquiring a new printer with service and supplies.
  • © 2007 DocuAudit International, Inc. The cost of managing and administering the fleet is continuing to grow and driving up the total cost of ownership. More output devices of different models create the need for more specific supply items to manage. Traditionally, we have found that it is difficult for customers to effectively manage this supply inventory. For example, additional supplies are often purchased because the in-stock supplies could not easily be located, or because the user was unaware that the inventory existed, resulting in unnecessary costs. In addition, many companies purchase printers, services, and supplies from multiple vendors, further complicating purchasing issues and the administration of the fleet by not having one accountable source. More models leads to more drivers required, as well as more updating of drivers. These additional requirements create another burden on IT staff that ultimately pulls them away from their core initiatives.
  • © 2007 DocuAudit International, Inc. While this picture represents a better managed supply inventory then I normally see, it is important to note the amount of dollars tied up in supply inventory for managing this small fleet of printers (21 devices). The bigger issue is the continuing addition of different models requiring even more distinct supply items. We have seen many times how difficult it is for customers to have the right supply items in the right place and the right time. The end result is excess inventory.
  • © 2007 DocuAudit International, Inc. Copy volume is decreasing over 1% per year with printer pages growing at 11% per year. The net effect is more output devices are producing more pages. It doesn’t look like we are going paperless anytime soon, so it is crucial that there is a strategy for dealing with the issues created by the increase of devices and paper output.
  • © 2007 DocuAudit International, Inc. A strategy that has proven to control costs is managed print services. Rather then companies buying print devices, the supplies, and the services separately and then trying to manage it themselves, the recommendation is to buy the end result which is the printed pages. One monthly invoice for the pages printed reduces the number of purchase transactions and administration of the fleet. A managed print services program needs to provide for proactive maintenance by trained technicians, reducing IT’s requirement to support the printers and protecting the capital investments. Further, reducing IT’s involvement with printers allows them to focus on the department’s core initiatives and reduce the cost of completing IT projects.
  • © 2007 DocuAudit International, Inc. Today there is remote monitoring software provides for management and administration of the output fleet without customer involvement. Remote monitoring of devices allows for instant identification of status and error alerts and for identification of failures and required parts so repair is completed in a timely and efficient manner. Supplies can be managed by monitoring toner levels of each device and generating a reorder in sufficient time before the toner runs out. Reporting meter readings for billing purposes is a great annoyance to companies. Remote collection of this information removes the customer from this activity and ensures more accurate billing Having the ability to track the usage of consumable items and the cycle for preventative maintenance means replacement of these items will be done on a scheduled versus an emergency basis, reducing downtime.
  • © 2007 DocuAudit International, Inc. There are four steps for creating a managed print strategy First, there needs to be and understanding of your objectives to determine how we might best help remove the challenges in meeting those goals. Our focus will be to collaborate with you to determine if implementation of a managed print strategy would be beneficial. As a managed print specialist, I will explain my role in helping people like yourself facilitate this process.
  • © 2007 DocuAudit International, Inc. The second step is to conduct an assessment of the output devices and applications that will define: Number and type of output devices Locations The monthly volumes that are generated The total cost of ownership Service & support issues Supply inventory
  • © 2007 DocuAudit International, Inc. Once the discovery of the current situation is complete, the next step is to develop the managed print strategy. The focus of the strategy will to offer solutions to the identified problems while controlling the total cost of ownership. Additionally the strategy will clearly demonstrate how a managed print plan will reduce your involvement with managing and administering the fleet while providing a higher degree of service to your end users. The end result is that managing print will no longer distract you and your employees from your company’s the core initiatives.
  • © 2007 DocuAudit International, Inc. Finally, there is the implementation of the strategy. Implementation is the beginning of this relationship. We will report the results of the managed print plan implementation after the first ninety days and then conduct an account review with you every six months to assure that we consistently help you achieve the desired results. Based on what you have heard, can you see how engaging with us to help you develop a managed print strategy would enefit to you and your company.
  • Managed Print Service

    1. 1. Simile Imaging Solutions The Importance of a Managed Print Strategy Practical Cost Reduction and Process Improvement Strategy
    2. 2. Trends Impacting Document Technology Decisions Growing Output Fleets Increased Paper Usage Administrative Burden Corporate Cost Cutting Initiatives
    3. 3. Growing Costs Aging Fleets Heavy IT Burden <ul><li>Printer Volumes Increasing at 11%** </li></ul><ul><ul><li>9% Black & White </li></ul></ul><ul><ul><li>and 19% color </li></ul></ul><ul><li>Paper Use is Expected </li></ul><ul><li>to Grow for the Next </li></ul><ul><li>20 Years </li></ul><ul><li>55% of Network Traffic Printer-Related* </li></ul><ul><li>25-30% of Help Desk Calls Printer-Related* </li></ul><ul><li>60% of Documents Originate at Printers* </li></ul><ul><li>50% of Fleets Over 5 Years Old </li></ul><ul><li>Excessive Repair Time by IT Department </li></ul>Growing Output Fleets * Gartner Group ** IDC
    4. 4. Growing Fleet of Aging Devices HP Confidential LaserJet IID Aug 1989 LaserJet 5L Mar 1996 LaserJet IIIsi Oct 1989 LaserJet 4 Nov 1993 LaserJet IIID Jul 1991 Older Printers Cost More to Operate
    5. 5. SUPPLIES Managing the broad variety of required supply items to have them in the right place at the right time is difficult and expensive. VENDORS Multiple vendors for supplies and repair service reduce accountability and increase the administration of the output fleet. INFORMATION TECHNOLOGY Multiple drivers are required to support all models in the fleet, adding to IT’s burden to provide updates and maintenance. MANAGEMENT COSTS Increasing Number of Models
    6. 6. Inventory of Costly Supply Items $184 $269 $184 $184 $129 $129 $169 $169 $109 $109 $109 $129 $59 $59 $59 $89 $107 $107 $107 $59 $59 $169 $169 $169 $169 $309 $309 $109 $109 $169 $309 $184 $109 $109 $129 $134 $199 $199 $134 $269 $269 $269 $269 $269 $269
    7. 7. Increasing Paper Usage Billions of Pages
    8. 8. COST SAVINGS Buying pages can save 20%-50% over buying devices, related service contracts, and supplies individually.* One invoice for the actual pages printed monthly reduces the purchase transactions and the administration of the printer fleet. LIFE CYCLE EXTENSION Proactive maintenance by trained technicians protects the capital investment, ensuring reliability. IT MANAGMENT Allows IT to focus on their core initiatives, increasing available time to complete projects. OPPORTUNITIES Opportunity for Managed Print Services * Gartner Group
    9. 9. Enabling Technologies <ul><li>REMOTE MONITORING </li></ul><ul><li>Real time reporting of device status </li></ul><ul><li>Error alert reporting </li></ul><ul><li>Supply level tracking and auto reordering </li></ul><ul><li>Auto meter read reporting </li></ul><ul><li>Proactive preventative maintenance </li></ul>
    10. 10. Developing a Managed Print Strategy CUSTOMER ISSUES Goals & Motivations <ul><li>Customer’s Issues </li></ul><ul><li>Objectives & Challenges </li></ul><ul><ul><li>C-level </li></ul></ul><ul><ul><li>IT </li></ul></ul><ul><li>Motivations to Change </li></ul>ASSESSMENT Total Cost of Ownership IMPLEMENTATION Schedule MANAGED PRINT Strategy for Cost Control
    11. 11. Developing a Managed Print Strategy IMPLEMENTATION Schedule <ul><li>Current Environment </li></ul><ul><li>Device Inventory </li></ul><ul><ul><li>Population </li></ul></ul><ul><ul><li>Locations </li></ul></ul><ul><li>Total Cost of Ownership </li></ul><ul><ul><li>Volumes </li></ul></ul><ul><ul><li>Operating Cost </li></ul></ul><ul><li>Service & Support </li></ul><ul><li>Supply Inventory </li></ul>ASSESSMENT Total Cost of Ownership CUSTOMER ISSUES Goals & Motivations MANAGED PRINT Strategy for Cost Control
    12. 12. Developing a Managed Print Strategy ASSESSMENT Total Cost of Ownership <ul><li>Managed Print Strategy </li></ul><ul><li>Total cost of ownership comparison </li></ul><ul><ul><li>Direct costs </li></ul></ul><ul><ul><li>Related costs </li></ul></ul><ul><li>Supporting documentation </li></ul><ul><ul><li>Detail device inventory </li></ul></ul><ul><ul><li>Cost details </li></ul></ul><ul><ul><li>Cost assumptions </li></ul></ul><ul><li>Areas for improvement </li></ul><ul><li>Suggested Solutions </li></ul>MANAGED PRINT Strategy for Cost Control IMPLEMENTATION Schedule CUSTOMER ISSUES Goals & Motivations
    13. 13. Developing a Managed Print Strategy <ul><li>Ongoing Relationship </li></ul><ul><li>Implementation Plan </li></ul><ul><ul><li>Schedule </li></ul></ul><ul><ul><li>Results reporting </li></ul></ul>ASSESSMENT Total Cost of Ownership MANAGED PRINT Strategy for Cost Control IMPLEMENTATION Schedule CUSTOMER ISSUES Goals & Motivations

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