developing a managed services strategy

15
Managed Services A Proven Overhead Expense Control Strategy

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In working with customers we find an interesting phenomenon. While most companies track their assets and expenses, we find that they rarely know how many output technology devices they have, how these devices are being used, and what they truly cost. It is very important that companies first understand the impacts, costs and issues with their current situation. The next step is to create a strategy to better manage the existing assets and control costs.

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Page 1: Developing a Managed Services Strategy

Managed ServicesA Proven Overhead Expense Control Strategy

Page 2: Developing a Managed Services Strategy

The Desired Outcome

Control expenses– Manage the environment– Optimize the infrastructure– Improve workflow

Boost productivity– Do more with less– Focus on core business

Page 3: Developing a Managed Services Strategy

Environmental

Productivity

Financial

IT ResourcesImpa

cts

of D

ocum

ent O

utpu

t

Page 4: Developing a Managed Services Strategy

Financial Impact

Document output cost total 1-

3% of annual revenues*

Related Costs– For every $1 spent on output

documents, it takes another $9 to manage it**

The Cost Equation– If revenues and profits don’t

increase at the same rate as the rising cost of documents, the result is eroding profits

Annual Revenue

Average Annual Print Spend

$10 million

$100K to $300K

* Gartner Group ** All Associates Group

Page 5: Developing a Managed Services Strategy

Environmental Impact Paper, Toner and Power

– One case of paper (10 reams) uses approximately 60% of a tree*

– Production of 50 lbs. (5,000 pages/1 case) of copy paper produces 143 lbs. of green house gases*

– Three quarts of oil are consumed in the production of a single new toner cartridge and they take over 1,000 years to decompose**

– Millions of square feet of landfill space is consumed with used toner cartridges, paper, and printers that could be recycled.**

Office Employee

s

Pages per Year

Trees

per Yea

r

Greenhouse Gas

Emissions

1001

million120 28,600 lbs.

*printgreen.com ** State of California

Page 6: Developing a Managed Services Strategy

Productivity Impact Work Flow

– Inventorying the correct mix of supplies so materials are in stock when needed

– Administrative burden of ordering and paying for multiple times a month for related items

– Old drivers not compatible with new applications

Broken Devices– Documents not delivered– Delays– Increased costs

Page 7: Developing a Managed Services Strategy

IT Impact Maintenance Burden

– 15% of their time on output technology related issues*

– Required driver updates for multiple models/brands of devices

– Not trained as device technician

– Pulls them away from projects requiring their expertise

* IDC

Page 8: Developing a Managed Services Strategy

Minimize Carbon Footprint

BoostProductivity

ManageExpenses

Free UpIT Resources

A S

ensi

ble

Str

ateg

y

Page 9: Developing a Managed Services Strategy

Manage Expenses Outsource Management of the Devices

– Reduce the high cost of IT’s involvement with output technology

– Reduce administration of the fleet with one partner managing the required services and materials

– Reduce wasted materials– Reduce downtime– Protect the technology investment

Minimize Carbon Footprint

Boost Productivity

ManageExpenses

Free UpIT Resources

Page 10: Developing a Managed Services Strategy

Minimize Carbon Footprint Green Printing

– Recycling the materials and technology diverts millions of cubic feet of material from landfills*

– The recovery and reuse of the related materials saves power through less manufacturing*

– Reduce materials inventory and the associated waste

Alternative ink technologies have less environmental impact

Approximately 50% less energy is used by one multifunction output device than the combined annual consumption of the individual products it replaces

Minimize Carbon Footprint

Boost Productivity

ManageExpenses

Free UpIT Resources

* State of California

Page 11: Developing a Managed Services Strategy

Boost Productivity Improve Workflow

– Utilization of a smart device monitoring application that proactively identifies and orders supplies and service when needed

– Having the right materials and devices in the right locations at the right time eliminates delays in producing needed documents

– Maintenance by properly trained technicians increases availability of required devices

Minimize Carbon Footprint

Boost Productivity

ManageExpenses

Free UpIT Resources

Page 12: Developing a Managed Services Strategy

Free Up IT Resources Reduce the burden

– Remote monitoring software reports device status and errors reducing help desk calls.

– Outsourced service eliminates IT from spending time on issues not requiring their expertise.

Minimize Carbon Footprint

Boost Productivity

ManageExpenses

Free UpIT Resources

Page 13: Developing a Managed Services Strategy

Implementing the Strategy Stop Buying

– Without knowing what you have, what you are doing with those devices, and what those devices are costing, adding more devices generally does not solve current problems or reduce the costs related to printer fleets.

Discovery– Conduct an assessment of output

technology resulting in a report that details the current usage, costs, and related issues.

Discover

Outsource Printers

Stop Buying

Optimize the Fleet

Page 14: Developing a Managed Services Strategy

Outsource the Device Management – Without remote monitoring technology and an

expertise in printers, companies are best served by outsourcing this non-core maintenance and management function to a qualified partner

Optimize the Infrastructure– With reporting of usage trends, informed

decisions can be made regarding the consolidation of output technology assets, the strategic placement of devices to increase overall productivity and applications to improve user productivity.

Discover

Outsource Printers

Stop Buying

Optimize the Fleet

Implementing the Strategy

Page 15: Developing a Managed Services Strategy

Take Action Assess the Current Environment

– What devices you have– How much the devices are used– Supplies inventory– The true total cost of printing pages

Better Information for Better Decisions– Factual Information– Implementation steps– Semi-annual account reviews