Document Output Analysis
As the size and scope of information systems and content continue to grow within
an enterprise, so does the need for a cohesive document management and output
(DMO) strategy to effectively control costs and optimize document production infrastructures.
According to a recent report from analyst firm Gartner, a document is copied,
either physically or electronically, an average of nine to 11 times at a cost
of about $18.1 In addition, output equipment
fleets (copiers, printers, facsimiles, scanners, and associated supplies) continue
to be among the most under-managed and costly assets for many companies, resulting
in an approximate 1 to 3 percent profit loss per year.2
Despite the millions of dollars companies lose to poorly managed document production infrastructures and the financial impact these costs have on bottom-line performance, DMO is frequently neglected by most senior-level executives. Today, while leading companies have generally devised and implemented strategies to optimize their IT infrastructure, corporate management of DMO is widely distributed.
In addition, as document production has moved from the copier to the printer, a single-function asset that is generally undermanaged, costly, and difficult to control, corporate output expenditures have exponentially increased. According to analyst sources, the cost to print a single black-and-white page averages nearly 5 cents per page. In a company that prints 250,000 pages per day, the costs of supplies alone can total a staggering $3.2 million per year.
Despite the growing acceptance of multifunction products (MFPs) that combine capabilities traditionally offered in separate copiers, printers, facsimiles, and scanners into one device, many offices continue to be overstocked with separate devices that are outdated.
Additionally, inefficient processes governing the way documents are created, managed, distributed, and organized continue to mire companies in labor-intensive procedures that monopolize valuable employee time and resources. While a myriad of collaboration software tools are available today to automate and streamline internal reviews and approvals, a vast majority of companies continue to manually process documents.
The combined effect of these factors has created an elusive realm called the document production infrastructure and has clouded the ability of senior-level management to gain full visibility to effectively initiate a strategy that puts adequate control mechanisms in place. Yet, there is a significant opportunity for organizations to regain control of their document production environments, improve business productivity and efficiency, and uncover a wealth of hidden cost-saving opportunities. By implementing a comprehensive DMO analysis and strategy, companies can positively impact bottom-line performance by closing the loop between document production, management, and output.
DMO Analysis — Demystifying Document Production, Management, and Output
An expert DMO analysis is an essential first step in devising and implementing a successful DMO strategy. The DMO analysis consists of a broad measurement and assessment of a companys total document production infrastructure including hardware (equipment fleets), document management software, and business processes that drive document production, distribution, and organization.
With the assistance of trained consultants, companies are engaged in a fact-finding mission that often includes five primary steps to analyze their total document production infrastructure, capture accurate and timely data, and devise a cohesive DMO strategy.
The DMO Analysis Process — Key Components
Phase 1 — Project Definition
Defining the project scope and outlining a companys document infrastructure, production, and management goals and objectives are the primary steps to initiating a comprehensive and successful DMO analysis. During project definition, project leaders, including both internal and external personnel, are identified and a targeted project timeline is established, ensuring milestones can be reasonably achieved.
Phase 2 — Data Collection and Measurement
Through in-depth data collection mechanisms, including employee interviews, process mapping, and print-tracking software, consultants can help companies identify problem areas that are most primed for improvement and provide the most immediate cost savings. Data collection efforts may be scaled as time and budget permit to involve a relatively small sample, such as a specific department, floor, or building, or a broader sample, such as a headquarters location or regional or satellite offices.
To provide an accurate assessment of the current document production infrastructure, a DMO analysis will consist of a thorough examination of four key areas that drive document output expenditures, as well as critical or costly document workflows:
Phase 3 — Analysis and Reporting
Critical to the DMO analysis is a detailed assessment of the data and measurements captured and the creation and delivery of a comprehensive DMO report. A DMO analysis report presents findings, recommendations, and custom solutions, as well as serves as a systematic, targeted blueprint to enable companies to successfully attain key optimization objectives and realize significant costs savings. Most often, a DMO analysis report will culminate in a bound report delivered in an onsite presentation.
Phase 4 — Implementation and Improvement
Among the deliverables of the DMO analysis is a recommendation for document-production-infrastructure optimization. While each case is unique, cost-containment is often the foremost priority. Implementation strategies will often encompass time-phased initiatives, targeting low-hanging fruit for immediate action and the development of change-management strategies for long-term, continuous improvement.
Strategies for improving a companys document-production-infrastructure improvement strategies can vary, but typically incorporate one or more of the following:
In addition, a comprehensive DMO analysis offering will include strategies to account for other spectrums of the document lifecycle with document management software. Research has demonstrated that the hard costs of copiers, printers, MFPs, paper, and supplies make up only 10 percent of the total cost of a companys output. The other 90 percent is largely attributed to document management processes involving a companys most valuable asset: its workforce.3
The integration of document management software into the DMO analysis action plan enables companies to automate day-to-day processes. Software solutions of this nature not only can reduce manual labor costs per document, but they also enable companies to more effectively organize, distribute, and share information, as well as improve business decision-making and customer response times.
Phase 5 — Control
With a DMO analysis, companies gain unprecedented control of document infrastructures with the ability to sustain improvement initiatives for long-term success and profitability. In addition to regular account reviews, consultants work with companies to implement a variety of control mechanisms that include benchmarking, as well as print-tracking deployment and management software, to help ensure that cost and control parameters established during the improvement phase are adhered to.
Typically, a print control program allows companies to establish internal costs per page for each printer and then to track and allocate costs to users based on actual consumption. Furthermore, specific print jobs can be routed to certain printers based on pre-determined characteristics such as page length or finishing requirements.
By establishing a departmental print budget and accountability, research shows that employees develop greater discipline over their printing habits. Studies conducted by research firm IDC indicate that the implementation of a print tracking and control system alone can reduce printing costs by as much as 15 percent.4
Figure 1: Comparative review of a typical document production infrastructure pre- and post-DMO analysis.
Benefits of a DMO Analysis
Companies can reduce output costs by up to 40 percent (see Figure 1). Additional benefits that increase the value proposition of a DMO analysis include:
The Right DMO Analysis Program
When sourcing the right DMO analysis, it is important to look for programs that not only account for hardware devices, but also provide in-depth analysis of enterprise-wide document and workflow processes. These world-class programs generate cost-savings opportunities — both in the short term through optimized fleet management and through long-term process improvements.
In addition, a world-class, disciplined DMO analysis program will effectively incorporate and align with the goals of senior-level executives, including the CEO and CIO, and provide a higher degree of change management.
To properly evaluate and consider the most qualified partner and appropriate solution, consider the following additional criteria:
Conclusion
Companies can no longer afford passive management of equipment fleets and document production infrastructures that contribute to millions of dollars in lost revenue. By engaging in an enterprise-wide DMO analysis and developing a cohesive document output and management strategy, companies can pave the way to enhanced business performance and productivity, positively impact bottom-line performance, and establish a stronger competitive foothold through long-term process improvements.
