A professional presentation prepared by Info-Tech Research Group about the benefits of consolidating printers in medium to large-sized organizations. Benefits include reduced costs, workflow efficiencies and improved productivity.
Very few organizations have an aggregate view of their printing costs.
Not surprisingly, printing has become a large hidden and uncontrollable IT expense. Getting buy-in to control printing costs and consolidate printers is tricky, with pushback from end users and senior management.
Critical Insight
- Discovering how much the company is currently spending on printing is the first step to achieving management buy-in for printer consolidation.
- Visible management support is important to help drive a printing-aware culture.
- Simply changing your managed print services pay model can result in large cost savings.
Impact and Result
- Determine your current printing costs to justify a printer consolidation project to senior management and obtain visible buy-in.
- Consolidate your printers and re-assess your managed print service model to reduce printing costs.
Managed Print Services (MPS) goes beyond cost savings, transforming your organization in surprising new ways. Hereâs 26 telltale signs that an MPS assessment can help your business.
Reduce Costs Through Printer ConsolidationLarry Levine
Â
Most organizations are unaware of the savings potential of printer consolidation. Most have no aggregate view of the total costs and no one responsible for managing it. Without this visibility it is difficult to muster exectuive commitment and support.
Very few organizations have an aggregate view of their printing costs.
Not surprisingly, printing has become a large hidden and uncontrollable IT expense. Getting buy-in to control printing costs and consolidate printers is tricky, with pushback from end users and senior management.
Critical Insight
- Discovering how much the company is currently spending on printing is the first step to achieving management buy-in for printer consolidation.
- Visible management support is important to help drive a printing-aware culture.
- Simply changing your managed print services pay model can result in large cost savings.
Impact and Result
- Determine your current printing costs to justify a printer consolidation project to senior management and obtain visible buy-in.
- Consolidate your printers and re-assess your managed print service model to reduce printing costs.
Managed Print Services (MPS) goes beyond cost savings, transforming your organization in surprising new ways. Hereâs 26 telltale signs that an MPS assessment can help your business.
Reduce Costs Through Printer ConsolidationLarry Levine
Â
Most organizations are unaware of the savings potential of printer consolidation. Most have no aggregate view of the total costs and no one responsible for managing it. Without this visibility it is difficult to muster exectuive commitment and support.
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IJRET : International Journal of Research in Engineering and Technology is an international peer reviewed, online journal published by eSAT Publishing House for the enhancement of research in various disciplines of Engineering and Technology. The aim and scope of the journal is to provide an academic medium and an important reference for the advancement and dissemination of research results that support high-level learning, teaching and research in the fields of Engineering and Technology. We bring together Scientists, Academician, Field Engineers, Scholars and Students of related fields of Engineering and Technology
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Predictive analytics is a process of using statistical and data mining techniques to analyze historic and current data sets, create rules and predict future events. This paper outlines a game plan for effective implementation of predictive analytics.
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Extreme volumes of machine data, such as process control logs, asset inspection records and part quality data are created each day. Companies must analyze patterns and interactions within this data to create a total view of their operational processes.
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Our webinar covered an introduction to predictive maintenance, analytics use cases for asset management, and IBM Maximo integration with analytics solutions.
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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:
â elimination of inkjet or high-cost printers
â sharing of workgroup printers,
â 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.
â Many organizations have no aggregate view of the total cost of printing and no one
responsible for managing it
â PrC is often an unpopular initiative with end-users
â Without this visibility, it is difficult to muster executive commitment and support for PrC
⢠To achieve savings and overcome barriers:
â Assign accountability for tracking printer costs to a single department/stakeholder group
â Prepare an inventory of printing devices and a profile of usage, requirements, and costs
â Identify areas to eliminate or reduce the number of devices to calculate potential savings
â Educate and communicate the benefits of PrC to executives to gain buy-in and support
â 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 organizationâs 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 canât be
money spent for green based solely on green. âŚ
[We have] to come up with something that
[can] save me money and be green at the same
time. âŚBut 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.
â 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 thatâs not the case with being green. I
think if you align it right, it can definitely help
you.
â 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:
â˘Reduced electricity consumption
â˘Reduced use of consumables (paper,
ink, toner)
â˘Reduced hazardous waste from
consumables and devices
Green not only benefits the environment, but
can also help the bottom line.
â
â
â
â
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 â 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:
â Consumables and one-off leases are line of
business items tracked by
Supplies/Facilities
â Depreciation expenses are tracked by
Finance (sometimes IT)
â Maintenance expenses are tracked by IT
⢠No stakeholderâs 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
isnât 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
areâŚ
⢠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 â especially from
executives.
13Info-Tech Research Group
Desktop printers were purchased
on company cards⌠users think
they are entitled to them. âŚ
People are resistant⌠itâs the
convenience of walking no steps
versus walking ten.
â IT Director, Manufacturing
4
Source: Info-Tech Research Group N=44
â
â
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. Donât 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-Techâs 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:
â Cost-savings benefits
â Green benefits
⢠Cost tracking and reporting to management
are iterative:
â Executives provide covering fire, but
require proof that the initiative is
worthwhile
â 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.
â IT Manager, Government
[The executive team] understand
costs. Theyâre an easier sell than the
end-users.
â 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:
â â
â
â
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 donât 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 ITâs 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 organizationâs 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 ITâs 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 departmentâs 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.
â â
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, âUncovering the Cost-savings of Printer Consolidation: Process Roadmapâ
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.
â 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 savingsâŚ
Read the in-depth case study here.
Source: Info-Tech Research Group N=23
â â
21. Centralize, consolidate, and replace.
Info-Tech Research Group 21
Whenever possible, consolidate to as few
models as feasible.
â˘Choose MFPs over standalone printers whenever
possible.
â˘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.
â˘At high printing volumes, upfront purchase price pales
in comparison to savings from efficient toner and
supply use.
â˘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.
â â
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 ITâs
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 arenât peripheral.
TCO for desktop printers is not trivial:
Most desktop printers are ink-jets that are extremely
costly â $/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 â
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 â thatâs all you
need to know. Itâs a no brainer.
â IT Director, Manufacturing
â â
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 ITâs justification for each end-userâs argument to keep their desktop printers:
End-user Argument/Concern IT Argument
âI donât trust network storage. I
want physical copies.â
ď§Explain security and benefits of
content management systems.
âI use my desktop a lot. I need it.â ď§ Users should be printing on
cheaper network MFPs
âI donât use it a lot, so itâs not
costly.â
ď§ Waste of money to maintain and
power under-utilized devices
âI need security and
confidentiality.â
ď§ MFPs have biometric/password-
release functions
âI donât have time to wait.â ď§ Print jobs in queue are released
when users are at the device
âI donât want to walk that far.â ď§ Devices will typically be within 50
feet - not far
People did not
understand how
much this costs. âŚ
Printing is an 80s
or 90s habit.
People are
addicted to itâŚ
you need to break
this habit.
â IT Manager, Tech
Services
â
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.
âWhat would you do if it were your company? Cut
costs or cut jobs?â
Communicate the green benefits. âDecrease the amount of consumables, energy, and
hardware used. Do your part to be green.â
Enhanced features and functionalities of
MFPs.
âThe new MFPs are equipped with special features
that will increase your ease of use, output speed,
and improve the security of documents.â
Donât print âdenseâ 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-Techâs 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:
â˘Print Management Software
â˘Print Outsourcing
â˘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:
â˘Enable print roaming and ID
verification
â˘Set up user quotas
â˘Renegotiate print service contracts
â˘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 YourselfâŚ
ďą Do I require rigorous cost control (containment and/or avoidance)?
ďąE.g.: My firm is suffering from the downturn and is aggressively containing costs.
ďą How critical is information security to my environment (IP and privacy protection)?
ďąE.g.: My law firm prints confidential documents
ďą Do I need to make use of cost allocation for either internal chargeback or actual client billing?
ďąE.g.: My design firm bills clients for high printing volumes for their projects
ďą Are green initiatives significant to my operations, as mandated either internally or by external
regulations?
ďąE.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
â˘HP - Web
JetAdmin
â˘Canon NetSpot
,
â˘Lexmark
MarkVision
â˘Xerox
CentreWare
Web, Job
Tracking
â˘Small enterprises
â˘<100 users
â˘Basic print
management
environment
â˘No need for
chargeback strategy
â˘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
Youâll 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
â˘Small-mid-sized
enterprises
â˘<500 users
â˘Low print needs and
complexity
â˘Law firms,
professional firms,
accounting, design,
research
â˘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
Youâll 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
â˘Mid-sized
enterprises
â˘100-1000 users
â˘High print needs
and complexity
â˘Business &
Education
â˘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
Youâll 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
â˘Canon
- imageWARE
Enterprise
Management
Console
â˘Netaphor
- SiteAudit
â˘Print Audit
â˘Pharos
Uniprint and
BluePrint
â˘Dell
OpenManage
â˘Large enterprises
â˘>500 users
â˘Complex print
environment with
high needs
â˘Mature print
strategy
â˘Government,
education,
engineering,
architecture
â˘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 arenât
optimized
Cost Savings
Opportunity
Tools
Youâll 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.
â˘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.
â˘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.
â˘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:
ď§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.
â˘Device type (printer, copier, fax, scanner)
â˘Network vs. non-network
â˘Make, model, serial number
â˘Location in office
â˘Device owner (personal desktop, IT, lease, etc.)
â˘Number of users supported
â˘Monthly duty cycle (capacity)
â˘Page count to date (# pgs printed)
â˘Device age (in months)
â˘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 werenât on
the network. ⌠I know all the nooks and crannies, and I think we captured
them all.
- IT Director, Manufacturing
â â
Back to Deck
40. How-to: ď§Refer to purchase receipts, statements, service records, etc.
ď§Automated discovery tools and network mapping
ď§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: ď§IT Director leads and oversees
ď§ 1-2 IT staff at each office site takes inventory
â˘Depending on organization size, a team of IT FTEs can be resourced to the task
â˘Organizations with limited IT FTEs but sufficient budget can use consultants
â˘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
ď§Accounting and Supplies department provide additional information as needed
Tool: ď§Refer to tab, â1. Inventoryâ in the âReduce Costs through Printer Consolidation: Toolâ.
Information for the inventory will come from
a variety of sources â 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 itâs great ⌠it saves time and money.
â CIO, Market Research
1.Take an inventory
of the fleet
5.Identify the
opportunities
â
â
41. 2.Assess the fleet
requirements
Description of
process:
ď§Determine what function each device serves and how
ď§Application & Network:
â˘Identify the device as networked or non-networked
â˘Identify the device as a desktop, workgroup, or MFP
â˘Determine what the device is being used for (internal documents, external
documents, high-quality graphics/color, scheduled, ad hoc/on-demand)
â˘Determine its place in the organizationâs workflow â its dependencies
(applications, processes, people) and its criticality of uptime
â˘Determine needed features (color printing, scanning to e-mail, stapling, etc.)
ď§Platform:
â˘Determine whether devices are compatible with Vista/Windows 7 or with the
direction of the future IT strategy
ď§Security/Privacy:
â˘Determine the deviceâs need to output secure documents and its required
security features (release function, software, etc.)
â˘Note compliance frameworks that must be adhered to (PrCI, ITAR, HIPAA, etc.)
ď§Supplies:
â˘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: ď§Ask department managers for input to understand the printerâs role in workflow
Stakeholders: ď§IT Director leads and oversees
ď§ 1 IT staff at each office, or allocated team visits each office site, or vendor
ď§Departmental managers for input on device dependencies and requirements
Tool: ď§Refer to tab, â2. Requirementsâ in ITA Premium, âReduce Costs through Printer
Consolidation: Toolâ.
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
â â
43. 3.Assess the
fleet costs
Description of
process:
ď§Determine the total cost of ownership of the printer fleet:
â˘Purchase price or lease expense of each device (whichever is applicable)
â˘Cost of consumables: paper, ink, toner, etc. (if not included in lease agreements)
â˘Depreciation expense (if applicable)
â˘Cost of maintenance: per-call service, retainer service, on-site contracts,
included in $/page contracts
â˘Calculate downtime costs (# outages, loss of productivity, etc.)
ď Use the ITA Premium âDowntime Cost Calculatorâ.
â˘Overall $/page cost
ď§Determine cost of external printing at third-party companies:
â˘High-quality, color, bulk, etc. print jobs at print houses (i.e.: Kinkoâs)
Estimate the total cost of printing.
5.Identify the
opportunities
43Info-Tech Research Group
Printers were [procured ]corporately ⌠so [IT] didnât 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 âOffice Suppliesâ. ⌠I
didnât realize so much color copying was being outsourced until we looked at
the invoices.
- VP of IT, Architecture
â â
44. How-to: ď§Assign a IT FTE to track/monitor the costs of the printer fleet over a set time period
(at least 3 months is recommended)
ď§Calculate the costs for each device (identified on previous slide)
ď If devices do not have page counters, measure consumption costs by tracking paper,
ink, or toner purchases through the Supplies department
ď§Analyze help desk tickets or outage tracking systems to determine maintenance and
downtime costs
Stakeholders: ď§IT Director leads and oversees
ď§1-2 IT staff or vendor tracks costs from each department and aggregates totals
ď§Accounting/Supplies department provides purchase receipts from devices and
consumables
Tool: ď§Refer to tab, â3. Costsâ in the ITA Premium, âReduce Costs through Printer
Consolidation: Toolâ.
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
â â
45. 4.Solicit end-
user input
Description of
process:
ď§Understand end-user satisfaction with each deviceâs performance:
â˘Quality of output
â˘Ease of use
â˘Speed of printing
â˘Need for special features and its performance (print release functions, etc.)
â˘Availability, frequency of downtime
â˘Performance of service providers (maintenance time)
ď§Understand why certain devices have low satisfaction scores. Determine the cause:
â˘Insufficient user training
â˘Overloaded device (output > duty cycles)
â˘Lacking required features
â˘Vendor does not provide adequate service
Involve the end-users in understanding particular
requirements and concerns.
5.Identify the
opportunities
45Info-Tech Research Group
Customersâ reflection of whatâs needed is
different from the technical view.
â IT Manager, Public Administration
â
â
46. How-to: ď§Create user satisfaction survey to gauge fleet performance
ď§Distribute survey to all end-users
ď§Collect surveys and compile results â take averages of scores
ď§Examine devices that received low scores
Stakeholders: ď§IT Director oversees
ď§One IT staff member administers survey and compiles results
ď§Fair sample size of end-users for each device to avoid bias
Tool: ď§Survey sheets: refer to tabs 4a. through 4c. End-user Survey Analysisâ in âReduce Costs
through Printer Consolidation: Toolâ.
A survey can be used to identify problem areas
and validate findings so far.
46Info-Tech Research Group
It was the help-desk managerâs 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
â â
47. Description of
process:
ď§Identify opportunities for improvement to support the business case:
1.Fleet requirements
â˘Scrutinize all desktops, standalones, or non-networked devices to determine
need and potential to be eliminated
â˘Compare utilization with duty cycles of devices within one department or within
close proximity of each other to determine consolidation opportunities
â˘Identify devices that can or should be eliminated due to their nearing end of life,
or lacking application, platform, security requirements
2.Fleet costs
â˘Identify cost-saving opportunities from eliminating all non-networked devices,
desktop devices (i.e.: costly ink-jet printers)
â˘Identify devices that are cost-inefficient (maintenance, supplies, downtime, etc.)
â˘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 whatâs needed and where.
â IT Manager, Public Administration
5.Identify the
opportunities
â
â
48. Description of
process:
ď§Identify opportunities for improvement to support the business case:
3.End-user satisfaction
â˘Consider scores and responses from end-user satisfaction surveys and how
relocation/consolidation/elimination of certain devices would impact user
productivity and satisfaction
â˘Note: End-user responses may be biased in order to keep their printers
4.Green benefits
â˘Highlight the opportunity to reduce the organizationâs environmental footprint
through reduced use of consumables such as paper, ink, toner
â˘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 âGreenâ implications.
48Info-Tech Research Group
Weâre a law firm so we generate a lots of paper. ⌠[weâre] 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. ⌠weâve
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
â â
49. How-to: ď§Use the results from the previous four steps to identify areas for improvement
ď§Commission a third-party environmental auditor to measure impacts of printer fleet
Stakeholders: ď§IT staff/team makes preliminary recommendations from findings
ď§IT Director examines findings and makes overall recommendations to senior
management
Tool: ď§Refer to tab, â5. Opportunitiesâ in the âReduce Costs through Printer Consolidation:
Toolâ.
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 âŚended up retiring printers that were cheap to
buy but costly to maintain versus getting slightly more costly but robust
machines. âŚ
It was important to reduce unnecessary costs NOT to hurt flow
of work.
â CIO, Market Research
5.Identify the
opportunities
â
â
51. Case Studies Table of Contents
* Source: Interviews with Info-Tech clients
Click on the â#â or âIndustryâ 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 â 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 FTEâs 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 ITâs budget and usage gets charged to each department at year-end. IT Director has set
up strict printer policies, âIf you are 50 feet within a printer, youâre not getting another one.â
⢠Key success factor was that the initiative was supported by senior executives. âThe first person to get rid of their
desktop inkjet was the CEO. All executives had desktops removed from their offices.â
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.
⢠âAlthough those savings arenât significant in normal times, itâs something, and itâs worth it right now.â
⢠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 â it does not
factor savings in IT support time from reduced helpdesk tickets.
⢠Printer TCO decreased 40% â 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 â 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 âsupplies expenseâ.
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).âInk is too expensive for the desktop printers â thatâs
all you need to know. Itâs a no brainer.â
⢠Need for stricter IT procurement approval policies. MFPs serve all end-usersâ needs sufficiently, but employees are
used to the entitlement of having printers on their desk. âThey 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. Weâve locked down the
administrative rights, but a coffee here and there [for IT] and eventually they get those printers hooked up.â
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 clientsâ 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 departmentâs 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 didnât negatively affect productivity.
âIt was important to reduce unnecessary costs - not to hurt flow of work.â
⢠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. âWe 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.â
⢠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 departmentâs P/L statement, publicly viewable across organization, and
are reviewed by the executive team. âIf costs are higher than expected, the executives will flag it. Managers donât want
to see highlighted cells when they get their statements back, so they have incentive to control it.â
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. âIâm more concerned about the soft issues. What will happen if we move that printer there?â
⢠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.
⢠âReasonableâ 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 donât 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 â 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. âEven
though every dollar counts, $5000 a year [in cost savings] is not impressive. It needs to be ranked important by
Accounting and other leaders.â
⢠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 ITâs 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. âIâm
not comfortable saying, âNo, you canât print that,â if itâs necessary for their job.â
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.