Practical IT Research that Drives Measurable Results Reduce Costs through Printer Consolidation

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. Understand Benefits & Barriers Implement Printer Consolidation Manage On-going Print Devices Control

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

Nobody has ever died from a paper cut: Understand PrC benefits and barriers. Understand PrC Benefits: Both Kinds of GreenBarriers: Why No One Cares Implement Create Accountability Prepare the Inventory Identify Savings Opportunities Make the Business Case Manage End-User Resistance Manage Mid-Term StrategiesLong-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. 0% 20% 40% 60% 80% 100% Hardware CostOperating 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. * 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. 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. [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 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. Printer costs do not get tracked and become unknowingly out of control Potentially significant cost-saving opportunities are unknown Executives are not compelled to sponsor or support the initiatives PrC drops on the priority list, and IT has no incentive to push it forward Cost-saving opportunities of PrC are not realized

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. Finance Printing vs. 1 Printing HR + Finance + Marketing + Sales + Operations HR Printing Marketing Printing Operations Printing Sales Printing

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