Developing a Managed Services 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.
Developing a Managed Services Strategy
- 1. Managed Services A Proven Overhead Expense Control Strategy
- 2. The Desired Outcome Control expenses Manage the environment Optimize the infrastructure Improve workflow Boost productivity Do more with less Focus on core business
- 3. Impacts of Document Output Financial Environmental Productivity IT Resources
- 4. 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 dont increase at the same rate as the rising cost of documents, the result is eroding profits * Gartner Group ** All Associates Group Annual Average Annual Revenue Print Spend $10 $100K to $300K million
- 5. 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 Pages Trees Greenhouse *printgreen.com ** State of California Employees per Year per Gas Emissions Year 100 1 million 120 28,600 lbs.
- 6. 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
- 7. 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
- 8. Manage Minimize Expenses Carbon Footprint A Sensible Strategy Boost Free Up Productivity IT Resources
- 9. Manage Expenses Manage Expenses Outsource Management of the Devices Minimize Reduce the high cost of ITs involvement Carbon Footprint with output technology Reduce administration of the fleet with one partner managing the required services and materials Boost Productivity Reduce wasted materials Reduce downtime Protect the technology investment Free Up IT Resources
- 10. Manage Expenses Minimize Carbon Footprint Green Printing Recycling the materials and technology diverts millions of cubic feet of material from landfills* Minimize Carbon Footprint The recovery and reuse of the related materials saves power through less manufacturing* Reduce materials inventory and the associated waste Boost Productivity 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 Free Up individual products it replaces IT Resources * State of California
- 11. Manage Expenses Boost Productivity Improve Workflow Utilization of a smart device monitoring Minimize Carbon Footprint 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 Boost Productivity Maintenance by properly trained technicians increases availability of required devices Free Up IT Resources
- 12. Manage Expenses Free Up IT Resources Reduce the burden Remote monitoring software reports Minimize Carbon Footprint device status and errors reducing help desk calls. Outsourced service eliminates IT from spending time on issues not requiring Boost Productivity their expertise. Free Up IT Resources
- 13. Stop Buying Implementing the Strategy Stop Buying Without knowing what you have, what Discover 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. Outsource Printers Discovery Conduct an assessment of output technology resulting in a report that details the current usage, costs, and related issues. Optimize the Fleet
- 14. Stop Buying Implementing the Strategy Outsource the Device Management Without remote monitoring technology and Discover an expertise in printers, companies are best served by outsourcing this non-core maintenance and management function to a qualified partner Outsource Printers Optimize the Infrastructure With reporting of usage trends, informed decisions can be made regarding the consolidation of output technology assets, Optimize the Fleet the strategic placement of devices to increase overall productivity and applications to improve user productivity.
- 15. 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