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Practical IT Research that Drives Measurable Results
Reduce Costs through Printer Consolidation
1Info-Tech Research Group
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.
2Info-Tech Research Group
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
3Info-Tech Research Group
Nobody has ever died from a paper cut:
Understand PrC benefits and barriers.
4Info-Tech Research Group
Understand
PrC
Benefits: Both Kinds of Green Barriers: Why No One Cares
Implement
Create
Accountabilit
y
Prepare the
Inventory
Identify
Savings
Opportunities
Make the
Business Case
Manage End-User
Resistance
Manage Mid-Term Strategies Long-Term Strategies
Consider the following three examples of Info-Tech clients who realized significant cost-savings from
their PrC initiatives:
Every desktop printer eliminated from the fleet
can save you approximately $500 per year.
5Info-Tech Research Group
0%
20%
40%
60%
80%
100%
Hardware Cost Operating Cost Total Cost
5%
95%
100%Print device
hardware costs are
just the tip of the
iceberg
Source: Info-Tech Research Group
See all in-depth
case studies here.
100%
Poorly controlled print environments breed unnecessary print costs.
1.A large public healthcare firm
realized $285,000 in annual cost-
savings by eliminating 1,016
devices and replacing them with
721 more efficient devices that
have a lower $/page cost. That
has resulted in almost $1,000
saved per eliminated device.
A small manufacturing firm
identified $40K in annual
cost savings from
eliminating 70 non-
networked desktop printers
from their environment and
moving fully to networked
MFPs.
A small not-for-profit firm
reduced their TCO for
printers by 50% by
eliminating 16 out of 35
standalone printers.
These cost-savings can be realized
with the following actions:
• Elimination of cost-inefficient inkjet
desktop printers
• Elimination of high-cost, inefficient,
or underutilized printers
• Sharing of workgroup printers
between an optimal number of end-
users
• Replacing separate printers,
scanners, copiers, and fax machines
with multi-function devices
Do not ignore the cost-saving potential of PrC.
6Info-Tech Research Group* Source: Interviews with Info-Tech clients
Low Pain Initiative
Medium Pain
Initiative
High Pain Initiative
Cost-savings
($/user/year)
~ $30 $60 - $75 ~ $200
Initiative
Description
Passive strategy to eliminate
devices through attrition
Moderately eliminate and
consolidate according to usage
and duty cycles
Actively eliminate and
consolidate devices, and use
aggressive print strategies
(chargeback, outsourcing, etc.)
Device
Purchases
Electricity
Maintenance
Consumables
The more aggressive the organization’s PrC initiative, the greater the cost-savings potential
PrC saves more than capital expenses.
Info-Tech Research Group 7
Source: Info-Tech Research Group
N=96
Non-monetary
benefits met or
exceeded
expectations in
over 75% of
initiatives
By any metric enterprises use, cost-based or otherwise,
PrC initiatives are overwhelmingly successful:
Operating
expenses were
reduced in over
80% of initiatives
PrC presents organizations with an opportunity
to become greener.
8Info-Tech Research Group
[CEO] would be very supportive, but it can’t be
money spent for green based solely on green. …
[We have] to come up with something that
[can] save me money and be green at the same
time. …But because the cost of electricity is
leveling out throughout the United States, it has
now become a business initiative at a higher
level to be much more concerned about energy
usage.
– CIO, Health Services
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
Consolidating and eliminating
devices in the printer fleet allows
organizations to reduce their carbon
footprint and save costs in the
following ways:
•Reduced electricity consumption
•Reduced use of consumables (paper,
ink, toner)
•Reduced hazardous waste from
consumables and devices
Green not only benefits the environment, but
can also help the bottom line.
“
“
“
“
Four barriers commonly prevent many organizations from
recognizing the cost-savings opportunity of PrC.
9Info-Tech Research Group
1
2
3
4
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.
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.
Process Opacity
Organizations often lack the tools and data needed to uncover the cost-savings potential.
End-Users
The initiative faces extreme end-user resistance that inhibits successful
implementation.
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.
10Info-Tech Research Group
Finance
Printing
vs.vs.
1
Printing
HR + Finance + Marketing +
Sales + Operations
HR
Printing
Marketing
Printing
Operations
Printing
Sales
Printing
Managers in many organizations wrongly assume that since
IT manages the printer devices, they also manage costs.
• Printer costs (paper, ink, toner, electricity,
maintenance) are often budgeted and
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
supplies through the Supplies/Facilities
department which bypasses any budget
approval process, or through IT, which
does not have the authority or incentive to
restrict requests.
11Info-Tech Research Group
N=187
Organization-wide printer usage policies are
rarely enforced with any strictness.
Source: Info-Tech Research Group
2
Without systematic policy enforcement, end-
user print behavior becomes frivolous and
generates massive printing costs.
The road to uncovering cost-savings opportunities
isn’t smooth.
• The process to identify the entire fleet, assess
requirements, and uncover printer costs
requires significant tracking and
documentation tasks, which are laborious and
difficult for FTE-constrained IT departments.
• Non-networked desktop printers are often
used without the knowledge of IT, and are
notoriously difficult to track.
12Info-Tech Research Group
3
• Asset management in most organizations is
neglected. Printers are typically last priority for
managing after servers, desktops/laptops, and
licensed software.
• Tools available for tracking printer utilization are
lacking. Asset management vendors (e.g. Web
JetAdmin, Netaphor, etc.) provide tools that do not
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
Source: Info-Tech Research GroupN=44
End-user resistance is a large barrier to effective PrC.
PrC is a cultural change.
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
Printing policies are difficult to enforce. End-users
tend to avoid them, or work around them,
especially if senior executives are not fully on-
board and do not lead by example.
No one wants to be responsible for physically
confiscating desktop printers – especially from
executives.
13Info-Tech Research Group
Desktop printers were purchased
on company cards… users think
they are entitled to them. …
People are resistant… it’s the
convenience of walking no steps
versus walking ten.
– IT Director, Manufacturing
4
Source: Info-Tech Research Group N=44
“
“
Two thirds of organizations found end-user
resistance to be a significant barrier.
With proper management, barriers were not significant
and did not prevent attainment of benefits.
Info-Tech Research Group 14
Source: Info-Tech Research GroupN=108
Organizations
which conducted
PrC initiatives
were able to
overcome barriers
Don’t cry over spilled ink:
Implement PrC.
Understand
PrC
Benefits: Both Kinds of Green Barriers: Why No One Cares
Implement
Create
Accountabilit
y
Prepare the
Inventory
Identify
Savings
Opportunities
Make the
Business Case
Manage End-User
Resistance
Manage Mid-Term Strategies Long-Term Strategies
To achieve savings and overcome barriers,
follow Info-Tech’s four-stage approach:
3. Gain executive
buy-in
4. Educate
end-users1. Track printing
costs under IT
2. Identify
consolidation
opportunities
16Info-Tech Research Group
Leverage executive
buy-in to educate
end users and
influence changes in
their print behavior
with minimal
resistance.
Create aggregate
print accountability
to track and inventory
print devices,
determining
aggregate print 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.
Gain high-level executive buy-in to set the tone for PrC.
• Communicate the benefits of PrC to
executives:
– Cost-savings benefits
– Green benefits
• Cost tracking and reporting to management
are iterative:
– Executives provide covering fire, but
require proof that the initiative is
worthwhile
– Plan for multiple management check-ins
through each step of the process
• Do not attempt to undertake PrC initiatives
without alerting executives
17Info-Tech Research Group
[Printer Consolidation] needs to be
driven from the top which is why
we need to make the business case
for it.
– IT Manager, Government
[The executive team] understand
costs. They’re an easier sell than the
end-users.
– CTO, Media & Entertainment
Scenario:
Print policies are not being strictly
enforced.
Case Study:
Public administration firm has over 80
non-networked desktop printers
deployed and is currently
consolidating, but doubtful of success
due to low executive buy-in.
Read the in-depth case study here.
Cautionary Case Study:
“ “
“
“
Recommend that the responsibility to track
print device costs be allocated to IT.
18Info-Tech Research Group
[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
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.
“ “
Prepare a baseline inventory of printing devices and costs to
identify potential savings.
5. Identify the opportunities for improvement
1. Take an
inventory of
the fleet
Refer to automated
discovery tools, network
mapping, and do a
physical walk-around to
understand what
devices are in the
printer environment.
2. Assess
the fleet
requirements
Understand the
application & network,
platform, security/privacy,
and supply requirements
of each device.
3. Assess
the fleet costs
Determine the costs of
each device: purchase
price,
consumables
(paper, ink, toner),
maintenance, lease/
depreciation expense,
and downtime costs.
4. Solicit
end-user input
Interview or survey
end-users to understand
their requirements
and identify
problematic devices.
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.
19Info-Tech Research Group
Refer to the addendum, “Uncovering the Cost-savings of Printer Consolidation: Process Roadmap”
for a more detailed step-by-step guide
Ensure visible executive support to achieve
higher cost savings and lower end-user resistance.
Use the cost figures from identified
opportunities for improvement to sell the
initiative to executives.
• Visible support and buy-in of the executive
team creates cost-savings above .01% of total
revenue for the organization.
20Info-Tech Research Group
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
Scenario:
End users are hesitant to give up their
desktop printers.
Case Study:
Public healthcare organization that
supports 8,000 end-users realized one-
time savings of $450,000 and an
annual $285,000 in cost savings…
Read the in-depth case study here.
Source: Info-Tech Research Group N=23
“ “
Centralize, consolidate, and replace.
Info-Tech Research Group 21
Whenever possible, consolidate to as few
models as feasible.
•Choose MFPs over standalone printers whenever
possible.
•MFPs costing three times more than a mid-range laser
printer may be a wise purchase if the device is less
costly to operate on a per-page basis.
•At high printing volumes, upfront purchase price pales
in comparison to savings from efficient toner and
supply use.
•This not only allows for elimination of redundant
devices such as fax machines and scanners, but also
lowers TCO, since cost-per-page is typically 50% lower
than with dedicated laser printers.
Centralize and network all possible devices.
• When making equipment and supply decisions,
always remember that equipment typically makes
up only 5 to 10% of the total cost of ownership.
• Operation of printers, including supplies,
maintenance, and repairs, represents the rest, so
costs are further decreased when only a few types of
printers need servicing and supplies.
Scenario:
High print cost/page; no
standardization.
Case Study I:
Media & entertainment firm reduced
$/page by 50% by consolidating and
standardizing their printer fleet.
Better deals could be negotiated with
printer, toner, and paper vendors.
Case Study II:
Tech firm consolidates and
standardizes to two device types has
decreased TCO by 20%.
Read in-depth case study one here.
We had so many printers all
over the place… there was no
standardization whatsoever.
- VP of IT, Media & Entertainment
Read in-depth case study two here.
“ “
Explain PrC rationale to color end-user reaction.
Enforce policiesSolicit users early Explain the tradeoffCommunicate costs
Info-Tech Insight:
Print services can be politically sensitive. Prepare for strong end-user pushback by securing a senior
business sponsor. In smaller organizations, this is ideally a President, CEO, or Chief Operations
Officer.
• Inform users of the
true cost structure
associated with
printing
• Hardware,
• Consumables
• Electricity
• Maintenance
• Educate end users
on the high
aggregate price of
frivolous printing
behavior
• MFPs bring new
advantages,
including green
benefits
• Consider their input
when making device
decisions
• Communicate IT’s
justification for the
initiative
• Prepare responses
to typical end user
concerns
• Use strict and
consistent print
policies to control
end user print
behavior
• Do not tolerate
renegade print
practices
Communicate that personal printer costs aren’t peripheral.
TCO for desktop printers is not trivial:
Most desktop printers are ink-jets that are extremely
costly – $/page cost is almost four times amount for
laser toners used in workgroups and MFPs
Hardware refreshes are required more frequently for
desktop printers since their useful lifetime is shorter
Having multiple models of desktop printers in the
fleet does not allow for bulk purchasing of supplies –
cannot realize economies of scale due to a lack of
standardization
Each desktop printer, regardless of utilization rates,
increases energy consumption and costs
Usage of desktop printers is difficult to track and
oftentimes employee induced theft/shrinkage occurs
Scenario:
Desktop printers are rampant.
Case Study:
70 of 200 users had desktop printers,
printing a total of 20,000 pages. $40K
in cost-savings is discovered from
aggregating desktop printer costs and
enforcing stricter print policies.
Read the in-depth case study here.
Ink is too expensive for the
desktop printers – that’s all you
need to know. It’s a no brainer.
– IT Director, Manufacturing
“ “
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 policies
Communicate 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
want physical copies.”
Explain security and benefits of
content management systems.
“I use my desktop a lot. I need it.”  Users should be printing on
cheaper network MFPs
“I don’t use it a lot, so it’s not
costly.”
 Waste of money to maintain and
power under-utilized devices
“I need security and
confidentiality.”
 MFPs have biometric/password-
release functions
“I don’t have time to wait.”  Print jobs in queue are released
when users are at the device
“I don’t want to walk that far.”  Devices will typically be within 50
feet - not far
People did not
understand how
much this costs. …
Printing is an 80s
or 90s habit.
People are
addicted to it…
you need to break
this habit.
– IT Manager, Tech
Services
“
Explain the tradeoff between printing privileges
and other cost-cutting opportunities.
Issue Talking Point
Educate end-users on the aggregate costs of
printing, and communicate that the cost-
savings are not petty.
“What would you do if it were your company? Cut
costs or cut jobs?”
Communicate the green benefits. “Decrease the amount of consumables, energy, and
hardware used. Do your part to be green.”
Enhanced features and functionalities of
MFPs.
“The new MFPs are equipped with special features
that will increase your ease of use, output speed,
and improve the security of documents.”
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
with coverage 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
Educate users on avoiding printing cost culprits.
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 comprehensive
enterprise printing governance policy.
Use print management software
to reap on-going benefits from PrC.
Understand
PrC
Benefits: Both Kinds of Green Barriers: Why No One Cares
Implement
Create
Accountabilit
y
Prepare the
Inventory
Identify
Savings
Opportunities
Make the
Business Case
Manage End-User
Resistance
Manage Mid-Term Strategies Long-Term Strategies
Organizations that conduct one-time consolidation
initiatives are leaving money on the table.
Info-Tech Research Group 28
On-going savings result from changes in end
user print behavior.
Altering user behavior is difficult and requires
longer-term strategy
Consider the following options for controlling
behavior-related print costs:
•Print Management Software
•Print Outsourcing
•Chargeback Printing Model
While software price points vary considerably,
most solutions typically enable the following:
• Granular cost control
• Streamlined printer management
• Behavior management
Automating print management can effectively
reduce frivolous printing and associated costs
Mid-term strategies that require
fewer behavioral changes can be
implemented more rapidly:
•Enable print roaming and ID
verification
•Set up user quotas
•Renegotiate print service contracts
•Train users on self-support
On-going initiatives achieve an average of
41% greater annual cost savings than one-time initiatives
Source: Info-Tech Research Group N=40
Mid-term strategies require time and investment, but
require few changes to user behavior and print strategy.
Info-Tech Research Group 29
Determine if your organization is a
complex print environment.
Info-Tech Research Group 30
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 external
regulations?
E.g.: I am LEED certified and must comply
Adopt print management software appropriate
to printer fleet size and print need complexity.
Info-Tech Research Group 31
Complexity
FleetSize
Large
Small
Low High
• Printer management solutions range
from tools bundled with ink-jet
printers that track consumables
status to software suites that track
data for thousands of print devices.
• Software included with print devices
(OEM) can pool print jobs, secure
access, and centralize job
administration.
• Mid-level software can track costs,
generate reports, and centralize
management.
• Full Manage software allows for
absolute enforcement of print
policies and fully control of printing
Investigate the following solutions based on the profile
of your organization:
Understand the tools available,
identify enterprise needs,
and pursue acquisition through
dealer or industry channels.
Vendor-provided solutions are adequate control for
small organizations with simple printing environments.
Info-Tech Research Group 32
Profile
• Basic Print
Tracking
• Print
Monitoring
• Simple
Reporting
• Centralized
Management
•HP - Web
JetAdmin
•Canon NetSpot
,
•Lexmark
MarkVision
•Xerox
CentreWare
Web, Job
Tracking
•Small enterprises
•<100 users
•Basic print
management
environment
•No need for
chargeback strategy
•Dealing with
complex sales
channels for third
party vendors is
likely a waste of
resources
• Setting simple
default print
settings to reduce
print jobs and
cost to print
• Pool print jobs
and secure access
• Centralize job
administration
Cost Savings
Opportunity
Tools
You’ll Need
Vendors
and Suites
SMBs with greater print control needs can leverage
mid-level solutions to manage behavior.
Info-Tech Research Group 33
Profile
• Print Tracking
• Print
Monitoring
• Analysis &
Reporting
• Centralized
Management
• Document
control
• Basic
chargeback
• Client billing
•Small-mid-sized
enterprises
•<500 users
•Low print needs and
complexity
•Law firms,
professional firms,
accounting, design,
research
•Solutions start
around $500, but
require additional
per device costs.
• Move to a utility
printing model
and charge each
department for
its printing
costs to make
managers
accountable for
costs
• Control
document flow
for more
efficient
compliance
• Client billing
• Manage high
security
documents
• CZ - Print
Job Tracker
• PaperCut -
ChargeBack
• CapellaTech -
Megatrack
• Alagus Print
Admin
• Antamedia
Print
Manager
Cost Savings
Opportunity
Tools
You’ll Need
Vendors
and Suites
Larger organizations without high print control needs
can get away with mid-level software to meet needs.
Info-Tech Research Group 34
Profile
• Print Tracking
• Print
Monitoring
• Analysis &
Reporting
• Centralized
Management
•Mid-sized
enterprises
•100-1000 users
•High print needs
and complexity
•Business &
Education
•Solutions start
around $500, but
require additional
per device costs.
• Single pane of
glass display
allows for
proactive cost
control
• Track costs by
user and
generate reports
on usage and
consumables to
conduct
informed,
recurring
reviews of print
needs
• Brooks
Internet
Software
-Remote
Print
Manager
• CZ - Print
Job Tracker
• PaperCut -
NG
• Nagios
• Ringdale
FollowMe
Cost Savings
Opportunity
Tools
You’ll Need
Vendors
and Suites
Full control solutions will only attract large
organizations with a mature print strategy.
Info-Tech Research Group 35
Profile
• Advanced Print
Tracking and
Monitoring
• Analysis &
Reporting
• Centralized
Management
• Client Billing
• Inventory listing
• Restrictions
• Printer Redirect
• Usage
Scheduling
•Canon
- imageWARE
Enterprise
Management
Console
•Netaphor
- SiteAudit
•Print Audit
•Pharos
Uniprint and
BluePrint
•Dell
OpenManage
•Large enterprises
•>500 users
•Complex print
environment with
high needs
•Mature print
strategy
•Government,
education,
engineering,
architecture
•Expect to spend
thousands for a
tailored solution that
will save time and
guide cost-savings.
• Absolute
enforcement of
policies and
restrictions to
ensure printing
optimization
• Quotas at user,
job, type level,
redirect
• Define common
usage patterns
and have
software
intervene when
settings aren’t
optimized
Cost Savings
Opportunity
Tools
You’ll Need
Vendors
and Suites
Outsourcers can often take care of some or all printing needs
for a total cost that IT cannot match in-house.
Info-Tech Research Group 36
Outsource highest-cost print services.
•Outsourcing print services is most appropriate for:
• Organizations engaging in high-volume,
high-quality print jobs, with growing
levels of output.
• Organizations with many customer-facing
print jobs that include mailing.
•Print outsourcing is a long-term tactic, requiring an
assessment of in-house printing costs compared with
the cost for a similar level of service provided by an
outside party.
•When end-to-end costs are factored in, printing,
managing, mailing, and tracking high-quality
customer deliverables can be up to $5 per unit.
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.
Outsourcing Scenario:
My firm requires very high print
volume and I need to recover the
costs.
Case Study:
Architectural engineering firm with
3,800 end-users has realized annual
cost-savings of over $10 million by
outsourcing their printing and
recovering 65% of costs by
implementing a chargeback model to
clients
Read the in-depth case study here.
Summary
Info-Tech Research Group 37
• 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
Appendix
Info-Tech Research Group 38
1.Take an inventory
of the fleet
5.Identify the
opportunities
Description of
process:
Identify what devices exist in all office locations, and gather the following information:
* 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)
An inventory provides the baseline information
for PrC analysis.
39Info-Tech Research Group
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
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”.
Information for the inventory will come from
a variety of sources – be thorough.
40Info-Tech Research Group
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
1.Take an inventory
of the fleet
5.Identify the
opportunities
“
“
2.Assess the fleet
requirements
Description of
process:
Determine what function each device serves and how
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
Analysis begins with understanding
how each device is being used.
5.Identify the
opportunities
41Info-Tech Research Group
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”.
Involve departmental input to determine
how each printer is used.
42Info-Tech Research Group
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
2.Assess the fleet
requirements
5.Identify the
opportunities
“ “
3.Assess the
fleet costs
Description of
process:
Determine the total cost of ownership of the printer fleet:
•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)
Estimate the total cost of printing.
5.Identify the
opportunities
43Info-Tech Research Group
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
“ “
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 costs
Stakeholders: 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”.
Include the costs of supplies and paper.
44Info-Tech Research Group
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
3.Assess the
fleet costs
5.Identify the
opportunities
“ “
4.Solicit end-
user input
Description of
process:
Understand end-user satisfaction with each device’s performance:
•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
Involve the end-users in understanding particular
requirements and concerns.
5.Identify the
opportunities
45Info-Tech Research Group
Customers’ reflection of what’s needed is
different from the technical view.
– IT Manager, Public Administration
“
“
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 scores
Stakeholders: 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”.
A survey can be used to identify problem areas
and validate findings so far.
46Info-Tech Research Group
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
4.Solicit end-
user input
5.Identify the
opportunities
“ “
Description of
process:
Identify opportunities for improvement to support the business case:
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
Identify which printers can be eliminated
to estimate potential savings.
47Info-Tech Research Group
Align inventory with needs… Making decisions
based on what’s needed and where.
– IT Manager, Public Administration
5.Identify the
opportunities
“
“
Description of
process:
Identify opportunities for improvement to support the business case:
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
Consider end-user and ‘Green’ implications.
48Info-Tech Research Group
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
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 fleet
Stakeholders: 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”.
Present cost-saving opportunities to executives
to gain approval.
49Info-Tech Research Group
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
5.Identify the
opportunities
“
“
Follow Info-Tech’s process roadmap
to start realizing cost-savings.
50Info-Tech Research Group
Case Studies Table of Contents
* Source: Interviews with Info-Tech clients
Click on the ‘#’ or ‘Industry’ of a case study to view its contents: situation, opportunities, and results.
51Info-Tech Research Group
# Industry End-users Printer Consolidation Strategy Cost-savings
1 Public Healthcare 8,000 Eliminated 27% of fleet and replaced 90% of
remaining devices with more efficient ones
$450,000 (one-
time)
$285,000 (annual)
2 Non-profit 150 Eliminated 46% of fleet based on utilization $7,500+ (annual)
3 Media &
Entertainment
1,300 Consolidated and standardized devices 50% reduction of
$/page
4 Manufacturing 200 Eliminating all non-networked devices $40,000 (annual)
5 Architecture 3,800 Completely outsourced printing,
implemented chargeback model
$10,000,000
(annual)
6 Technology
Services
2,100 Consolidated and standardized devices 20% of TCO
7 Market Research 700 Outsourced to asset management vendor TBD
8 Public
Administration
500 Attrition of old devices TBD
9 Manufacturing 800 Consolidating into a new building TBD
Back to Deck
Situation:
• 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.”
Elimination Scenario:
I need to switch to MFPs for features and functionality.
52Info-Tech Research Group
Industry Public Healthcare End-Users 8,000
Role CIO, IT Manager Savings $450,000 + $285,000 annually
Strategy: Eliminated a quarter of fleet and replaced remaining devices
Back to Deck
Situation:
• 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.
Strategy: Eliminated almost half their printer fleet based on utilization
53Info-Tech Research Group
Consolidation Scenario:
I need to get better utilization out of my printers.
Industry Not-for-Profit End-Users 150
Role IT Manager Savings $7,500-$9,000 annually
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.
Strategy: Consolidated and standardized the printer fleet.
54Info-Tech Research Group
Standardization Scenario:
My consumables costs are out of control.
Industry Media & Entertainment End-Users 1,300
Role VP of IT Savings $/page reduced by 50%
Back to Deck
Situation:
• 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.
Elimination Scenario:
I have too many desktop printers in the workplace.
55Info-Tech Research Group
Industry Manufacturing End-Users 8,000
Role IT Director Savings $40,000 annually
Strategy: Eliminated all non-networked devices and enforce print policies
Back to Deck
Situation:
• 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.
Outsource/Chargeback Scenario:
I need to reduce costs from high volume and quality needs.
56Info-Tech Research Group
Industry Architecture End-Users 3,800
Role VP of IT Savings $10 million annually
Strategy: Outsource printing and recover 65% through client chargeback
Back to Deck
Situation:
• 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.”
Standardize & Track Scenario:
I need to control printing without hurting workflow.
57Info-Tech Research Group
Industry Technology Services End-Users 2,100
Role IT Manager Savings To be determined
Strategy: Consolidated and standardized devices, shift edcost responsibility to department managers
Back to Deck
Situation:
• 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.
Vendor Consulting Scenario:
I don’t have the resources to uncover my print costs.
58Info-Tech Research Group
Industry Market Research End-Users 700
Role CIO Savings To be determined
Strategy: Outsourced to asset management vendor
Situation:
• 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.
Passive Attrition Scenario:
I want to consolidate but have limited support from execs.
59Info-Tech Research Group
Industry Public Administration End-Users 500
Role IT Director Savings To be determined
Strategy: Attrition, due to low executive buy-in
Back to Deck
Situation:
• Organization is looking to eliminate two office sites and move into a newly built, more efficient office building.
• CIO is looking to consolidate and reduce their printer fleet from the two offices as part of the larger initiative to move
into the new office. He is attempting to reduce the costs of consumables and maintenance.
• Currently, there is no purchase approval process. Devices are expensed by end-users, by-passing IT, but then
considered capital investments under IT’s budget.
• Consumables are captured as 'Computer Supplies' under Office Services department budget. Supplies are ordered in
bulk according to regular usage patterns, and users go to supply closet when they need it and there is no control. “I’m
not comfortable saying, ‘No, you can’t print that,’ if it’s necessary for their job.”
Opportunity:
• Gradually phase out some of the 35 desktops and 33 workgroups as they reach their end of life, and strategically spread
out the remaining devices in the new office.
• Placement of remaining devices will be determined by matching utilization with capacity.
• CIO is putting purchase policy in place: all hardware will require a PO that must go through IT using an electronic
purchase requisition system. POs will be approved by CIO, if over $10K then CFO, if over $20K then CEO.
• Looking to acquire print software to monitor/track printer costs. Will help make the business case for management.
• Looking at aggregate costs of supplies will convey a more convincing message to leadership team.
Results:
• Pilot will be considered successful if projected cost-savings across all seven locations would yield at least $20-50K.
• Cost-savings realized are still to be determined.
Spacing Scenario:
I need to reduce the amount of space occupied by printers.
60Info-Tech Research Group
Industry Manufacturing End-Users 800
Role IT Director Savings To be determined
Strategy: Piloting PrC in two office sites that are set to move into a new office building.

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Reduce Costs Through Printer Consolidation

  • 1. Practical IT Research that Drives Measurable Results Reduce Costs through Printer Consolidation 1Info-Tech Research Group
  • 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. 2Info-Tech Research Group
  • 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 3Info-Tech Research Group
  • 4. Nobody has ever died from a paper cut: Understand PrC benefits and barriers. 4Info-Tech Research Group Understand PrC Benefits: Both Kinds of Green Barriers: Why No One Cares Implement Create Accountabilit y Prepare the Inventory Identify Savings Opportunities Make the Business Case Manage End-User Resistance Manage Mid-Term Strategies Long-Term Strategies
  • 5. Consider the following three examples of Info-Tech clients who realized significant cost-savings from their PrC initiatives: Every desktop printer eliminated from the fleet can save you approximately $500 per year. 5Info-Tech Research Group 0% 20% 40% 60% 80% 100% Hardware Cost Operating Cost Total Cost 5% 95% 100%Print device hardware costs are just the tip of the iceberg Source: Info-Tech Research Group See all in-depth case studies here. 100% Poorly controlled print environments breed unnecessary print costs. 1.A large public healthcare firm realized $285,000 in annual cost- savings by eliminating 1,016 devices and replacing them with 721 more efficient devices that have a lower $/page cost. That has resulted in almost $1,000 saved per eliminated device. A small manufacturing firm identified $40K in annual cost savings from eliminating 70 non- networked desktop printers from their environment and moving fully to networked MFPs. A small not-for-profit firm reduced their TCO for printers by 50% by eliminating 16 out of 35 standalone printers.
  • 6. These cost-savings can be realized with the following actions: • Elimination of cost-inefficient inkjet desktop printers • Elimination of high-cost, inefficient, or underutilized printers • Sharing of workgroup printers between an optimal number of end- users • Replacing separate printers, scanners, copiers, and fax machines with multi-function devices Do not ignore the cost-saving potential of PrC. 6Info-Tech Research Group* Source: Interviews with Info-Tech clients Low Pain Initiative Medium Pain Initiative High Pain Initiative Cost-savings ($/user/year) ~ $30 $60 - $75 ~ $200 Initiative Description Passive strategy to eliminate devices through attrition Moderately eliminate and consolidate according to usage and duty cycles Actively eliminate and consolidate devices, and use aggressive print strategies (chargeback, outsourcing, etc.) Device Purchases Electricity Maintenance Consumables The more aggressive the organization’s PrC initiative, the greater the cost-savings potential
  • 7. PrC saves more than capital expenses. Info-Tech Research Group 7 Source: Info-Tech Research Group N=96 Non-monetary benefits met or exceeded expectations in over 75% of initiatives By any metric enterprises use, cost-based or otherwise, PrC initiatives are overwhelmingly successful: Operating expenses were reduced in over 80% of initiatives
  • 8. PrC presents organizations with an opportunity to become greener. 8Info-Tech Research Group [CEO] would be very supportive, but it can’t be money spent for green based solely on green. … [We have] to come up with something that [can] save me money and be green at the same time. …But because the cost of electricity is leveling out throughout the United States, it has now become a business initiative at a higher level to be much more concerned about energy usage. – CIO, Health Services 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 Consolidating and eliminating devices in the printer fleet allows organizations to reduce their carbon footprint and save costs in the following ways: •Reduced electricity consumption •Reduced use of consumables (paper, ink, toner) •Reduced hazardous waste from consumables and devices Green not only benefits the environment, but can also help the bottom line. “ “ “ “
  • 9. Four barriers commonly prevent many organizations from recognizing the cost-savings opportunity of PrC. 9Info-Tech Research Group 1 2 3 4 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. 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. Process Opacity Organizations often lack the tools and data needed to uncover the cost-savings potential. End-Users The initiative faces extreme end-user resistance that inhibits successful implementation.
  • 10. 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. 10Info-Tech Research Group Finance Printing vs.vs. 1 Printing HR + Finance + Marketing + Sales + Operations HR Printing Marketing Printing Operations Printing Sales Printing
  • 11. Managers in many organizations wrongly assume that since IT manages the printer devices, they also manage costs. • Printer costs (paper, ink, toner, electricity, maintenance) are often budgeted and 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 supplies through the Supplies/Facilities department which bypasses any budget approval process, or through IT, which does not have the authority or incentive to restrict requests. 11Info-Tech Research Group N=187 Organization-wide printer usage policies are rarely enforced with any strictness. Source: Info-Tech Research Group 2 Without systematic policy enforcement, end- user print behavior becomes frivolous and generates massive printing costs.
  • 12. The road to uncovering cost-savings opportunities isn’t smooth. • The process to identify the entire fleet, assess requirements, and uncover printer costs requires significant tracking and documentation tasks, which are laborious and difficult for FTE-constrained IT departments. • Non-networked desktop printers are often used without the knowledge of IT, and are notoriously difficult to track. 12Info-Tech Research Group 3 • Asset management in most organizations is neglected. Printers are typically last priority for managing after servers, desktops/laptops, and licensed software. • Tools available for tracking printer utilization are lacking. Asset management vendors (e.g. Web JetAdmin, Netaphor, etc.) provide tools that do not 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 Source: Info-Tech Research GroupN=44
  • 13. End-user resistance is a large barrier to effective PrC. PrC is a cultural change. 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 Printing policies are difficult to enforce. End-users tend to avoid them, or work around them, especially if senior executives are not fully on- board and do not lead by example. No one wants to be responsible for physically confiscating desktop printers – especially from executives. 13Info-Tech Research Group Desktop printers were purchased on company cards… users think they are entitled to them. … People are resistant… it’s the convenience of walking no steps versus walking ten. – IT Director, Manufacturing 4 Source: Info-Tech Research Group N=44 “ “ Two thirds of organizations found end-user resistance to be a significant barrier.
  • 14. With proper management, barriers were not significant and did not prevent attainment of benefits. Info-Tech Research Group 14 Source: Info-Tech Research GroupN=108 Organizations which conducted PrC initiatives were able to overcome barriers
  • 15. Don’t cry over spilled ink: Implement PrC. Understand PrC Benefits: Both Kinds of Green Barriers: Why No One Cares Implement Create Accountabilit y Prepare the Inventory Identify Savings Opportunities Make the Business Case Manage End-User Resistance Manage Mid-Term Strategies Long-Term Strategies
  • 16. To achieve savings and overcome barriers, follow Info-Tech’s four-stage approach: 3. Gain executive buy-in 4. Educate end-users1. Track printing costs under IT 2. Identify consolidation opportunities 16Info-Tech Research Group Leverage executive buy-in to educate end users and influence changes in their print behavior with minimal resistance. Create aggregate print accountability to track and inventory print devices, determining aggregate print 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.
  • 17. Gain high-level executive buy-in to set the tone for PrC. • Communicate the benefits of PrC to executives: – Cost-savings benefits – Green benefits • Cost tracking and reporting to management are iterative: – Executives provide covering fire, but require proof that the initiative is worthwhile – Plan for multiple management check-ins through each step of the process • Do not attempt to undertake PrC initiatives without alerting executives 17Info-Tech Research Group [Printer Consolidation] needs to be driven from the top which is why we need to make the business case for it. – IT Manager, Government [The executive team] understand costs. They’re an easier sell than the end-users. – CTO, Media & Entertainment Scenario: Print policies are not being strictly enforced. Case Study: Public administration firm has over 80 non-networked desktop printers deployed and is currently consolidating, but doubtful of success due to low executive buy-in. Read the in-depth case study here. Cautionary Case Study: “ “ “ “
  • 18. Recommend that the responsibility to track print device costs be allocated to IT. 18Info-Tech Research Group [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 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. “ “
  • 19. Prepare a baseline inventory of printing devices and costs to identify potential savings. 5. Identify the opportunities for improvement 1. Take an inventory of the fleet Refer to automated discovery tools, network mapping, and do a physical walk-around to understand what devices are in the printer environment. 2. Assess the fleet requirements Understand the application & network, platform, security/privacy, and supply requirements of each device. 3. Assess the fleet costs Determine the costs of each device: purchase price, consumables (paper, ink, toner), maintenance, lease/ depreciation expense, and downtime costs. 4. Solicit end-user input Interview or survey end-users to understand their requirements and identify problematic devices. 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. 19Info-Tech Research Group Refer to the addendum, “Uncovering the Cost-savings of Printer Consolidation: Process Roadmap” for a more detailed step-by-step guide
  • 20. Ensure visible executive support to achieve higher cost savings and lower end-user resistance. Use the cost figures from identified opportunities for improvement to sell the initiative to executives. • Visible support and buy-in of the executive team creates cost-savings above .01% of total revenue for the organization. 20Info-Tech Research Group 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 Scenario: End users are hesitant to give up their desktop printers. Case Study: Public healthcare organization that supports 8,000 end-users realized one- time savings of $450,000 and an annual $285,000 in cost savings… Read the in-depth case study here. Source: Info-Tech Research Group N=23 “ “
  • 21. Centralize, consolidate, and replace. Info-Tech Research Group 21 Whenever possible, consolidate to as few models as feasible. •Choose MFPs over standalone printers whenever possible. •MFPs costing three times more than a mid-range laser printer may be a wise purchase if the device is less costly to operate on a per-page basis. •At high printing volumes, upfront purchase price pales in comparison to savings from efficient toner and supply use. •This not only allows for elimination of redundant devices such as fax machines and scanners, but also lowers TCO, since cost-per-page is typically 50% lower than with dedicated laser printers. Centralize and network all possible devices. • When making equipment and supply decisions, always remember that equipment typically makes up only 5 to 10% of the total cost of ownership. • Operation of printers, including supplies, maintenance, and repairs, represents the rest, so costs are further decreased when only a few types of printers need servicing and supplies. Scenario: High print cost/page; no standardization. Case Study I: Media & entertainment firm reduced $/page by 50% by consolidating and standardizing their printer fleet. Better deals could be negotiated with printer, toner, and paper vendors. Case Study II: Tech firm consolidates and standardizes to two device types has decreased TCO by 20%. Read in-depth case study one here. We had so many printers all over the place… there was no standardization whatsoever. - VP of IT, Media & Entertainment Read in-depth case study two here. “ “
  • 22. Explain PrC rationale to color end-user reaction. Enforce policiesSolicit users early Explain the tradeoffCommunicate costs Info-Tech Insight: Print services can be politically sensitive. Prepare for strong end-user pushback by securing a senior business sponsor. In smaller organizations, this is ideally a President, CEO, or Chief Operations Officer. • Inform users of the true cost structure associated with printing • Hardware, • Consumables • Electricity • Maintenance • Educate end users on the high aggregate price of frivolous printing behavior • MFPs bring new advantages, including green benefits • Consider their input when making device decisions • Communicate IT’s justification for the initiative • Prepare responses to typical end user concerns • Use strict and consistent print policies to control end user print behavior • Do not tolerate renegade print practices
  • 23. Communicate that personal printer costs aren’t peripheral. TCO for desktop printers is not trivial: Most desktop printers are ink-jets that are extremely costly – $/page cost is almost four times amount for laser toners used in workgroups and MFPs Hardware refreshes are required more frequently for desktop printers since their useful lifetime is shorter Having multiple models of desktop printers in the fleet does not allow for bulk purchasing of supplies – cannot realize economies of scale due to a lack of standardization Each desktop printer, regardless of utilization rates, increases energy consumption and costs Usage of desktop printers is difficult to track and oftentimes employee induced theft/shrinkage occurs Scenario: Desktop printers are rampant. Case Study: 70 of 200 users had desktop printers, printing a total of 20,000 pages. $40K in cost-savings is discovered from aggregating desktop printer costs and enforcing stricter print policies. Read the in-depth case study here. Ink is too expensive for the desktop printers – that’s all you need to know. It’s a no brainer. – IT Director, Manufacturing “ “
  • 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 policies Communicate 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 want physical copies.” Explain security and benefits of content management systems. “I use my desktop a lot. I need it.”  Users should be printing on cheaper network MFPs “I don’t use it a lot, so it’s not costly.”  Waste of money to maintain and power under-utilized devices “I need security and confidentiality.”  MFPs have biometric/password- release functions “I don’t have time to wait.”  Print jobs in queue are released when users are at the device “I don’t want to walk that far.”  Devices will typically be within 50 feet - not far People did not understand how much this costs. … Printing is an 80s or 90s habit. People are addicted to it… you need to break this habit. – IT Manager, Tech Services “
  • 25. Explain the tradeoff between printing privileges and other cost-cutting opportunities. Issue Talking Point Educate end-users on the aggregate costs of printing, and communicate that the cost- savings are not petty. “What would you do if it were your company? Cut costs or cut jobs?” Communicate the green benefits. “Decrease the amount of consumables, energy, and hardware used. Do your part to be green.” Enhanced features and functionalities of MFPs. “The new MFPs are equipped with special features that will increase your ease of use, output speed, and improve the security of documents.” 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 with coverage 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 Educate users on avoiding printing cost culprits.
  • 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 comprehensive enterprise printing governance policy.
  • 27. Use print management software to reap on-going benefits from PrC. Understand PrC Benefits: Both Kinds of Green Barriers: Why No One Cares Implement Create Accountabilit y Prepare the Inventory Identify Savings Opportunities Make the Business Case Manage End-User Resistance Manage Mid-Term Strategies Long-Term Strategies
  • 28. Organizations that conduct one-time consolidation initiatives are leaving money on the table. Info-Tech Research Group 28 On-going savings result from changes in end user print behavior. Altering user behavior is difficult and requires longer-term strategy Consider the following options for controlling behavior-related print costs: •Print Management Software •Print Outsourcing •Chargeback Printing Model While software price points vary considerably, most solutions typically enable the following: • Granular cost control • Streamlined printer management • Behavior management Automating print management can effectively reduce frivolous printing and associated costs Mid-term strategies that require fewer behavioral changes can be implemented more rapidly: •Enable print roaming and ID verification •Set up user quotas •Renegotiate print service contracts •Train users on self-support On-going initiatives achieve an average of 41% greater annual cost savings than one-time initiatives Source: Info-Tech Research Group N=40
  • 29. Mid-term strategies require time and investment, but require few changes to user behavior and print strategy. Info-Tech Research Group 29
  • 30. Determine if your organization is a complex print environment. Info-Tech Research Group 30 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 external regulations? E.g.: I am LEED certified and must comply
  • 31. Adopt print management software appropriate to printer fleet size and print need complexity. Info-Tech Research Group 31 Complexity FleetSize Large Small Low High • Printer management solutions range from tools bundled with ink-jet printers that track consumables status to software suites that track data for thousands of print devices. • Software included with print devices (OEM) can pool print jobs, secure access, and centralize job administration. • Mid-level software can track costs, generate reports, and centralize management. • Full Manage software allows for absolute enforcement of print policies and fully control of printing Investigate the following solutions based on the profile of your organization: Understand the tools available, identify enterprise needs, and pursue acquisition through dealer or industry channels.
  • 32. Vendor-provided solutions are adequate control for small organizations with simple printing environments. Info-Tech Research Group 32 Profile • Basic Print Tracking • Print Monitoring • Simple Reporting • Centralized Management •HP - Web JetAdmin •Canon NetSpot , •Lexmark MarkVision •Xerox CentreWare Web, Job Tracking •Small enterprises •<100 users •Basic print management environment •No need for chargeback strategy •Dealing with complex sales channels for third party vendors is likely a waste of resources • Setting simple default print settings to reduce print jobs and cost to print • Pool print jobs and secure access • Centralize job administration Cost Savings Opportunity Tools You’ll Need Vendors and Suites
  • 33. SMBs with greater print control needs can leverage mid-level solutions to manage behavior. Info-Tech Research Group 33 Profile • Print Tracking • Print Monitoring • Analysis & Reporting • Centralized Management • Document control • Basic chargeback • Client billing •Small-mid-sized enterprises •<500 users •Low print needs and complexity •Law firms, professional firms, accounting, design, research •Solutions start around $500, but require additional per device costs. • Move to a utility printing model and charge each department for its printing costs to make managers accountable for costs • Control document flow for more efficient compliance • Client billing • Manage high security documents • CZ - Print Job Tracker • PaperCut - ChargeBack • CapellaTech - Megatrack • Alagus Print Admin • Antamedia Print Manager Cost Savings Opportunity Tools You’ll Need Vendors and Suites
  • 34. Larger organizations without high print control needs can get away with mid-level software to meet needs. Info-Tech Research Group 34 Profile • Print Tracking • Print Monitoring • Analysis & Reporting • Centralized Management •Mid-sized enterprises •100-1000 users •High print needs and complexity •Business & Education •Solutions start around $500, but require additional per device costs. • Single pane of glass display allows for proactive cost control • Track costs by user and generate reports on usage and consumables to conduct informed, recurring reviews of print needs • Brooks Internet Software -Remote Print Manager • CZ - Print Job Tracker • PaperCut - NG • Nagios • Ringdale FollowMe Cost Savings Opportunity Tools You’ll Need Vendors and Suites
  • 35. Full control solutions will only attract large organizations with a mature print strategy. Info-Tech Research Group 35 Profile • Advanced Print Tracking and Monitoring • Analysis & Reporting • Centralized Management • Client Billing • Inventory listing • Restrictions • Printer Redirect • Usage Scheduling •Canon - imageWARE Enterprise Management Console •Netaphor - SiteAudit •Print Audit •Pharos Uniprint and BluePrint •Dell OpenManage •Large enterprises •>500 users •Complex print environment with high needs •Mature print strategy •Government, education, engineering, architecture •Expect to spend thousands for a tailored solution that will save time and guide cost-savings. • Absolute enforcement of policies and restrictions to ensure printing optimization • Quotas at user, job, type level, redirect • Define common usage patterns and have software intervene when settings aren’t optimized Cost Savings Opportunity Tools You’ll Need Vendors and Suites
  • 36. Outsourcers can often take care of some or all printing needs for a total cost that IT cannot match in-house. Info-Tech Research Group 36 Outsource highest-cost print services. •Outsourcing print services is most appropriate for: • Organizations engaging in high-volume, high-quality print jobs, with growing levels of output. • Organizations with many customer-facing print jobs that include mailing. •Print outsourcing is a long-term tactic, requiring an assessment of in-house printing costs compared with the cost for a similar level of service provided by an outside party. •When end-to-end costs are factored in, printing, managing, mailing, and tracking high-quality customer deliverables can be up to $5 per unit. 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. Outsourcing Scenario: My firm requires very high print volume and I need to recover the costs. Case Study: Architectural engineering firm with 3,800 end-users has realized annual cost-savings of over $10 million by outsourcing their printing and recovering 65% of costs by implementing a chargeback model to clients Read the in-depth case study here.
  • 37. Summary Info-Tech Research Group 37 • 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
  • 39. 1.Take an inventory of the fleet 5.Identify the opportunities Description of process: Identify what devices exist in all office locations, and gather the following information: * 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) An inventory provides the baseline information for PrC analysis. 39Info-Tech Research Group 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
  • 40. 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”. Information for the inventory will come from a variety of sources – be thorough. 40Info-Tech Research Group 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 1.Take an inventory of the fleet 5.Identify the opportunities “ “
  • 41. 2.Assess the fleet requirements Description of process: Determine what function each device serves and how 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 Analysis begins with understanding how each device is being used. 5.Identify the opportunities 41Info-Tech Research Group
  • 42. 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”. Involve departmental input to determine how each printer is used. 42Info-Tech Research Group 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 2.Assess the fleet requirements 5.Identify the opportunities “ “
  • 43. 3.Assess the fleet costs Description of process: Determine the total cost of ownership of the printer fleet: •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) Estimate the total cost of printing. 5.Identify the opportunities 43Info-Tech Research Group 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 “ “
  • 44. 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 costs Stakeholders: 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”. Include the costs of supplies and paper. 44Info-Tech Research Group 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 3.Assess the fleet costs 5.Identify the opportunities “ “
  • 45. 4.Solicit end- user input Description of process: Understand end-user satisfaction with each device’s performance: •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 Involve the end-users in understanding particular requirements and concerns. 5.Identify the opportunities 45Info-Tech Research Group Customers’ reflection of what’s needed is different from the technical view. – IT Manager, Public Administration “ “
  • 46. 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 scores Stakeholders: 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”. A survey can be used to identify problem areas and validate findings so far. 46Info-Tech Research Group 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 4.Solicit end- user input 5.Identify the opportunities “ “
  • 47. Description of process: Identify opportunities for improvement to support the business case: 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 Identify which printers can be eliminated to estimate potential savings. 47Info-Tech Research Group Align inventory with needs… Making decisions based on what’s needed and where. – IT Manager, Public Administration 5.Identify the opportunities “ “
  • 48. Description of process: Identify opportunities for improvement to support the business case: 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 Consider end-user and ‘Green’ implications. 48Info-Tech Research Group 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 5.Identify the opportunities “ “
  • 49. 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 fleet Stakeholders: 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”. Present cost-saving opportunities to executives to gain approval. 49Info-Tech Research Group 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 5.Identify the opportunities “ “
  • 50. Follow Info-Tech’s process roadmap to start realizing cost-savings. 50Info-Tech Research Group
  • 51. Case Studies Table of Contents * Source: Interviews with Info-Tech clients Click on the ‘#’ or ‘Industry’ of a case study to view its contents: situation, opportunities, and results. 51Info-Tech Research Group # Industry End-users Printer Consolidation Strategy Cost-savings 1 Public Healthcare 8,000 Eliminated 27% of fleet and replaced 90% of remaining devices with more efficient ones $450,000 (one- time) $285,000 (annual) 2 Non-profit 150 Eliminated 46% of fleet based on utilization $7,500+ (annual) 3 Media & Entertainment 1,300 Consolidated and standardized devices 50% reduction of $/page 4 Manufacturing 200 Eliminating all non-networked devices $40,000 (annual) 5 Architecture 3,800 Completely outsourced printing, implemented chargeback model $10,000,000 (annual) 6 Technology Services 2,100 Consolidated and standardized devices 20% of TCO 7 Market Research 700 Outsourced to asset management vendor TBD 8 Public Administration 500 Attrition of old devices TBD 9 Manufacturing 800 Consolidating into a new building TBD Back to Deck
  • 52. Situation: • 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.” Elimination Scenario: I need to switch to MFPs for features and functionality. 52Info-Tech Research Group Industry Public Healthcare End-Users 8,000 Role CIO, IT Manager Savings $450,000 + $285,000 annually Strategy: Eliminated a quarter of fleet and replaced remaining devices Back to Deck
  • 53. Situation: • 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. Strategy: Eliminated almost half their printer fleet based on utilization 53Info-Tech Research Group Consolidation Scenario: I need to get better utilization out of my printers. Industry Not-for-Profit End-Users 150 Role IT Manager Savings $7,500-$9,000 annually
  • 54. 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. Strategy: Consolidated and standardized the printer fleet. 54Info-Tech Research Group Standardization Scenario: My consumables costs are out of control. Industry Media & Entertainment End-Users 1,300 Role VP of IT Savings $/page reduced by 50% Back to Deck
  • 55. Situation: • 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. Elimination Scenario: I have too many desktop printers in the workplace. 55Info-Tech Research Group Industry Manufacturing End-Users 8,000 Role IT Director Savings $40,000 annually Strategy: Eliminated all non-networked devices and enforce print policies Back to Deck
  • 56. Situation: • 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. Outsource/Chargeback Scenario: I need to reduce costs from high volume and quality needs. 56Info-Tech Research Group Industry Architecture End-Users 3,800 Role VP of IT Savings $10 million annually Strategy: Outsource printing and recover 65% through client chargeback Back to Deck
  • 57. Situation: • 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.” Standardize & Track Scenario: I need to control printing without hurting workflow. 57Info-Tech Research Group Industry Technology Services End-Users 2,100 Role IT Manager Savings To be determined Strategy: Consolidated and standardized devices, shift edcost responsibility to department managers Back to Deck
  • 58. Situation: • 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. Vendor Consulting Scenario: I don’t have the resources to uncover my print costs. 58Info-Tech Research Group Industry Market Research End-Users 700 Role CIO Savings To be determined Strategy: Outsourced to asset management vendor
  • 59. Situation: • 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. Passive Attrition Scenario: I want to consolidate but have limited support from execs. 59Info-Tech Research Group Industry Public Administration End-Users 500 Role IT Director Savings To be determined Strategy: Attrition, due to low executive buy-in Back to Deck
  • 60. Situation: • Organization is looking to eliminate two office sites and move into a newly built, more efficient office building. • CIO is looking to consolidate and reduce their printer fleet from the two offices as part of the larger initiative to move into the new office. He is attempting to reduce the costs of consumables and maintenance. • Currently, there is no purchase approval process. Devices are expensed by end-users, by-passing IT, but then considered capital investments under IT’s budget. • Consumables are captured as 'Computer Supplies' under Office Services department budget. Supplies are ordered in bulk according to regular usage patterns, and users go to supply closet when they need it and there is no control. “I’m not comfortable saying, ‘No, you can’t print that,’ if it’s necessary for their job.” Opportunity: • Gradually phase out some of the 35 desktops and 33 workgroups as they reach their end of life, and strategically spread out the remaining devices in the new office. • Placement of remaining devices will be determined by matching utilization with capacity. • CIO is putting purchase policy in place: all hardware will require a PO that must go through IT using an electronic purchase requisition system. POs will be approved by CIO, if over $10K then CFO, if over $20K then CEO. • Looking to acquire print software to monitor/track printer costs. Will help make the business case for management. • Looking at aggregate costs of supplies will convey a more convincing message to leadership team. Results: • Pilot will be considered successful if projected cost-savings across all seven locations would yield at least $20-50K. • Cost-savings realized are still to be determined. Spacing Scenario: I need to reduce the amount of space occupied by printers. 60Info-Tech Research Group Industry Manufacturing End-Users 800 Role IT Director Savings To be determined Strategy: Piloting PrC in two office sites that are set to move into a new office building.