developing a managed services strategy
DESCRIPTION
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.TRANSCRIPT
Managed ServicesA Proven Overhead Expense Control Strategy
The Desired Outcome
Control expenses– Manage the environment– Optimize the infrastructure– Improve workflow
Boost productivity– Do more with less– Focus on core business
Environmental
Productivity
Financial
IT ResourcesImpa
cts
of D
ocum
ent O
utpu
t
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
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
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
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
Minimize Carbon Footprint
BoostProductivity
ManageExpenses
Free UpIT Resources
A S
ensi
ble
Str
ateg
y
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
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
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
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
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
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
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