Controlling Costs, Optimizing Infrastructure,

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Controlling Costs, Optimizing Infrastructure, Impr
oving Workflow through Managed Print Services

• Rick ValenziService Principal, Imaging and
  Printing Group
• The Hewlett-Packard Company
• September 23, 2008

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Overview

• Challenges and opportunities
• HP approach
• Building a plan

3
Key enterprise trends
Industry perspectivecost
90 of all companies do not track printing
costs. Buyers Laboratory
Average annual document costsare 515 of
revenue. IDC
23 of help-desk calls are printer related. IDC
IT spends 15 of their time on printing-related
issues. IDC
Most companies could reduce their printing costs
by 1030. Gartner
Companies spend 13 of their revenue per year
on output fleet management. Gartner
Hard visible costs are only about 10 of the
total document cost. All Associates
Companies can lower their printing costs by up
to 30. IDC
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Todays enterprise print environment
Total Spend (Burdened Costs)
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True costs of enterprise printing Every 1 spent
on putting marks on paper involves another 9 to
manage it
Spend by Segment (Commercial, Production, Office)
Commercial
Production
Office
15
12
10
10
Cost of putting marks on paper
90
90
88
Burdened costs of managing document lifecycle
Document Management End-user Interaction IT
Support Infrastructure Administration
Procurement Facilities
Fulfillment Distribution Facilities
Labor Document Content Design IT Support
Infrastructure Administration Procurement
Fulfillment Distribution Facilities
Labor Document Content Design Administration
Procurement IT Support Infrastructure
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Fragmented burdened office costs
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Key enterprise trends
Productivity challenges
The average worker

• Information explosioninformation doubles every
  18 months

• Spends 40 of their time looking for information

• Spends 150 hours/year seeking incorrectlyfiled
  documents

• Makes 19 copies of every document

• Looses 1 out of 20 documents

• Spends 25 hours recreating lost documents

Source Fujitsu and PriceWaterhouseCoopers
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Worldwide trends in public sector enterprise
imaging and printing

• Migrate to shared services architecture
• Take advantage of economies of scale
• Meet critical need for increased collaboration
  (e.g., homeland security)
• Transform mindset from output device to
  productivity tool
• Solve business problems
• Streamline workflows
• Meet increasing service levels
• Improve end-user experience
• Provide consistent user experiences in all
  locations
• Manage the increasing use of color for more
  powerful business communications

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Key enterprise trends
Environmental
67of enterprisesare implementingenvironmental
programs.
80of enterpriseRFQs evaluatesuppliersenviron
mentalaspects.
30of infrastructurepurchasing decisionsis
based onenvironmental factors.
Source Gartner
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Balancing the Triple Bottom Line(Profits,
People, Planet)
Considering the environmental perspective can be
key to a successful transformation

• Optimize resources
• Decrease costs and increase value
• Reduce risks (security)
• Improve productivity

• Maximize flexibility
• Keep it simple
• Ensure its reliable
• Meet needs and accommodate some wants

Change management challenge
Profits
People
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Overview

• Challenges and opportunities
• HP approach
• Building a plan

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What have we learned from our customers?
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HPs approach to enterprise printing
ImproveWorkflow
Improve businessoutcomes
Streamline workflowsand increase compliance
ManageEnvironment
Improve IT andbusiness efficiencies
Increase IT productivityand system availability
OptimizeInfrastructure
Reduce cost
Balance productivityand cost
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Networked? Optimized? Managed? Supplied?
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Supplies management?
199
184
129
199
169
109
169
89
109
134
107
184
109
109
107
129
107
109
59
184
59
59
59
59
109
269
109
309
269
169
309
169
269
269
169
169
269
169
309
269
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How much do you think your organization is
spending?

• How much do you spend per employee for printing?
• How many employees per printer do you have?
• How do you determine a cost- effective mix of
  printers and copiers and personal printers?
• How do you determine when to acquire and when to
  retire printers?
• Do you have an output strategy? How do you create
  such a strategy?

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Key Elements of an Optimized Solution

• Assessment
• Financial analysis
• Detailed SOW
• Flexible payment options

• Discovery and design
• Procurement Services
• Deployment management
• Education and management of change

MPS

• Job audit/tracking
• Reporting/portal
• Intelligent routing
• Account delivery mgmt

• Multi-vendor support
• Hardware maintenance
• Priority phone support
• Supplies management

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Planning

• Assessment
• Financial analysis
• Detailed SOW
• Flexible payment options

• Discovery and design
• Procurement services
• Deployment management
• Education and management of change

MPS

• Job audit/tracking
• Reporting/portal
• Intelligent routing
• Account delivery mgmt

• Multi-vendor support
• Hardware maintenance
• Priority phone support
• Supplies management

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Planning
Assessment
Financial Business Case Development
Services Statement of Work
Flexible Payment Options
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Assessment

• Understand organizational requirements
• Understand end-user requirements
• TCO projections
• Current-state projections

Plan and assess Assessment services Financial
business case development Services statement of
work development Choose payment method
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Financial business case

• Understand your decision-making criteria
• Develop TCO (total cost of ownership)
• Develop financial value proposition/business case
  
• Co-present business case as needed

Plan and assess Assessment services Financial
business case development Services statement of
work development Choose payment method
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Services statement of work

• Defines scope of solution in detail
• Includes ongoing contract deliverables
• Includes contract term and pricing schedule

Plan and assess Assessment services Financial
business case development Services statement of
work development Choose payment method
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Flexible payment options

• Level pay
• Same predictable monthly payment
• Reconciliation at year-end
• A pay-for-what-you-use model
• Base-plus-click
• Base includes fixed costs (HW, support)
• Click, based on pages printed
• Transparent, accurate
• Cost per Page

Plan and assess Assessment services Financial
business case development Services statement of
work development Choose payment method
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Deployment

• Assessment
• Financial analysis
• Detailed SOW
• Flexible payment options

• Discovery and design
• Procurement services
• Deployment management
• Education and management of change

MPS

• Job audit/tracking
• Reporting/portal
• Intelligent routing
• Account delivery mgmt

• Multi-vendor support
• Hardware maintenance
• Priority phone support
• Supplies management

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Deploy
Discovery and design
Customer fleet acquisition
Hardware procurement
Deployment management
Management of change and education
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Site discovery and future-state design

• Detailed assessment of current fleet
• Includes utilization data
• Includes current condition
• Map of proposed fleet (site-specific)
• Consistency makes it easy for end users.
• Especially with large plants or frequent moves
• Same layout
• Same/similar device
• Same interface
• IT and facilities requirements

Deploy Discovery and design Customer fleet
acquisition Hardware procurement Deployment
management Management of change and education
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Fleet acquisition

• HP
• HP Direct
• Ordering, shipping, freight, etc.
• Installed base
• Potential fleet acquisition
• Sale and lease-back of the devices
• Change management for reallocation
• Multi-vendor procurement
• Copier and printer products
• Gaps, special needs

Deploy Discovery and design Customer fleet
acquisition Hardware procurement Deployment
management Management of change and education
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Templates, processes, procedures
Site implementation

• Project sponsorship and management
• Project plan review and approval
• Communication planning and execution
• Process communication
• Training registration
• Network connectivity/access
• Print queue creation
• Facilities and environment changes
• Physical staging/storage space

Customer
Deploy Discovery and design Customer fleet
acquisition Hardware procurement Deployment
management Management of change and education
HP

• Project management
• Project plan creation
• Transition and communication planning
• Process development
• Discoverycurrent-state mapping
• IT infrastructure analysis
• Future-state design and workflow
• Device installation and configuration
• HP Web Jetadmin (WJA) software implementation
• Remote monitoring implementation
• Training

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Management of change and education

• Change management communication
• Planning
• Resources
• And experience throughout the implementation
• Education services
• E-mentor
• Remote instructor led
• Onsite instructor led
• Customized education services
• Increase productivity
• Improve user adoption
• Dramatically reduce risk
• Decrease negative feedback

Deploy Discovery and design Customer fleet
acquisition Hardware procurement Deployment
management Management of change and education
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Support

• Assessment
• Financial analysis
• Detailed SOW
• Flexible payment options

• Discovery and design
• Procurement services
• Deployment management
• Education and management of change

MPS

• Job audit/tracking
• Reporting/portal
• Intelligent routing
• Account delivery mgmt

• Multi-vendor support
• Hardware maintenance
• Priority phone support
• Supplies management

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Support
Multi-vendor services
Hardware onsite support
Priority phone support
Supplies management
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Support services

• Multi-vendor is managed through HP
• HP single point of contact
• Single point of escalation
• Onsite support
• Next-day onsite, 4hr response
• Custom SLAs to meet unique customer needs
• Mission Criticality should dictate SLAs
• Priority phone support
• Dedicated support teams
• Unique PIN number for each customer
• Diagnose before dispatch

Support Multi-vendor support Hardware onsite
support Priority phone support Supplies
management
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Supplies management

• Supplies replenishment options
• Web-based ordering via the HP Service Portal
• Order via 1-800 number
• Automated toner delivery
• Toner cartridge recycling

Support Multi-vendor support Hardware onsite
support Priority phone support Supplies
management
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Management

• Assessment
• Financial analysis
• Detailed SOW
• Flexible payment options

• Discovery and design
• Procurement services
• Deployment management
• Education and management of change

MPS

• Job audit/tracking
• Reporting/portal
• Intelligent routing
• Account delivery mgmt

• Multi-vendor support
• Hardware maintenance
• Priority phone support
• Supplies management

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Manage
Job Audit/Tracking
Reporting/Portal
Intelligent Routing
Account Delivery Management
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Job audit/tracking and management

• Captures device, meter, user and job data at
  network and local devices
• Device, pages, toner
• File name, pages, sender and time
• Sets up database to store captured data
• Key is user-level tracking
• Data compiled for audit
• Data compiled for analysis
• Data compiled for chargeback purpose

Manage Job audit/tracking Reporting/portal Intelli
gent routing Account delivery management
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Reporting/portal

• HP remote monitoring and service portal
• Device utilization and trend analysis
• Online downloadable reporting
• Online supplies ordering
• Online service requests
• IMAC/D processes and review
• Utilize service portal to execute change orders
• Ensure consistency in fleet over time
• Sync user devices with HP management tools

Manage Job audit/tracking Reporting/portal Intelli
gent routing Account delivery management
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Intelligent routing

• Rules-based routing
• Create rules to automatically route documents to
  best device.
• Customize rules based on print policies.
• Send interactive pop-ups to show costs and
  recommend where to print.
• Secure print driver
• Encrypts and stores print jobs until
  authenticated sender arrives

Manage Job audit/tracking Reporting/portal Intelli
gent routing Account delivery management
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Account delivery management

• Onsite fleet administrators
• Care and feeding
• Techs to support drivers, queues and networks
• Custom deliverables
• Account delivery manager
• SPOC
• Responsible for care and success of each client
• Remote, local or onsite
• Ongoing fleet management, creep analysis
• Periodic fleet and account reviews
• Roadmap planning
• Contract review

Manage Job audit/tracking Reporting/portal Intelli
gent routing Account delivery management
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Key Elements of an Optimized Solution

• Assessment
• Financial analysis
• Detailed SOW
• Flexible payment options

• Discovery and design
• Procurement services
• Deployment management
• Education and management of change

MPS

• Job audit/tracking
• Reporting/portal
• Intelligent routing
• Account delivery mgmt

• Multi-vendor support
• Hardware maintenance
• Priority phone support
• Supplies management

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Overview

• Challenges and opportunities
• HP approach
• Building a plan

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Where do you go from here?
Build a Print 2.0 plan.
Improve workflow Manage environment Optimize
infrastructure
Conducting aPrint 2.0 workshop
Performing an assessment
Optimizing your business results
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Print 2.0 Workshops

• Description
• Achieve a mutual understanding of the
  document-related business issues at hand and the
  best way to address them
• Facilitate inclusive dialog within large
  organizations to help surface opportunities for
  actionable, relevant and high-impact improvement
  projects

• Deliverables
• Executive-level presentation highlighting key
  findings and recommendations
• Plan (i.e., roadmap) that shows how to address
  the problems balancing available resources and
  priorities over time
• Agreement on next steps

• Key Impacts
• Increase awareness of document-related business
  issues across the organization
• Align output strategy with business objectives

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Print 2.0 Workshops
Bring together the executive and operational
leadership of your organization along to develop
an imaging and printing strategy that will align
with your IT and business objectives
Customer Industry Research
Print 2.0 Workshop Half-day Session
Pre-workshop Interviews
HP Imaging Printing Best Practices
Post-workshop Presentation(2-3 weeks after
Workshop)
Preparation (4-6 weeks)
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Critical success factors

• Assemble the right skills, experience, and
  decision-making power
• Provide strong facilitation skills
• Focus on your business issues
• Willingness to work openly to uncover
  opportunities for improvementand take action as
  appropriate

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Print 2.0 Workshop Flow
Document-related Issues
Things to Do to Address Issues
Divergence
Convergence
Divergence
Interviews Research(broaden understanding)
Gain Consensus on Issues
Identify Initiatives(brainstorming)
Prioritize Initiatives
Identify Action Items, Issues, and Risks
Prepare for Workshop
Conduct Workshop
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Print 2.0 Workshop deliverable

• Findings summary
• Recap objectives and desired outcomes
• Review what was learned during pre-workshop
  research and uncovered during the workshop
• Ensure we have common understanding across the
  team
• Recommendations summary
• Describe the recommended next steps (i.e. the
  roadmap)
• Identify key risks, issues, and mitigation plans
• Next steps
• Gain mutual agreement on the roadmap
• Determine next steps

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Strategy recommendations for ABC Company
Improve Workflow
Manage Environment
Optimize Infrastructure
W1 Conduct report generation/distribution
Workflow Discovery W2 Conduct employment cycle
Workflow Discovery W3 Understand current and
future needs for document management (archive,
retrieve, index) W4 Review critical cross-system
workflows to understand future areas of
improvement
M1 Deploy network management tools to understand
usage M2 Establish key metrics and reporting
package M3 Define and implement support model
M4 Establish output environment governance
process
I1 Analyze existing contracts for SLA / TC
compliance I2 Refresh output environment I3
Deploy device extensibility capabilities I4
Conduct electronic signature proof-of-concept
(POC)
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Proposed ABC Co. transformation roadmap
I1 Analyze existing contracts
I2 Refresh output environment
I3 Deploy device extensibility capabilities
Phase 1
M1 Deploy network management tools
M2 Establish key metrics/reporting package
M3 Define and implement support model
I4 Electronic signature POC
Phase 2
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The most important discoveries, the greatest
art, and the best management decisions come from
taking a fresh look at what people take for
granted or cannot see, precisely because it is
too obvious.
Source R. Farson, Management of the Absurd.
Simon Schuster New York, 1996.
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Thank You!
Richard.Valenzi_at_HP.com 239-949-6090
Office 239-233-3191 Cell