Managed Print Services – Are You Buying Hardware or Pages?

I recently participated in several client engagements that in my opinion predict the direction of managed print services. The question “are you buying hardware or pages” has been kicking around this industry for some time; with MPS it can and should be finally answered.

The Transition

A number of you are considering entering into a MPS agreement or have already engaged with a number of objectives in mind:

• reduced demand on management and technology resources
• improved access and tools for your user community
• lower expenses for document output

Many MPS engagements require rationalizing your current fleet of document output devices, contracts and vendors to transition to a more cohesive and consolidated environment. You may have investments in technology that you feel you have not fully leveraged or obtained a requisite return on those investments - do not let that limit your vision.

The End of the Rainbow – After the Transition

Some of you have an opportunity for a “clean slate” approach due to an expiring contract or having previously undergone the transition. You have managed your document output environment to the point where you can implement wholesale changes and a mature managed document output environment.

In my opinion this should be the long-term objective of almost every document output environment strategy.

Buying Pages

Hopefully by now both end-user clients and purveyors of MPS have realized that the real objective is to buy pages including the hardware, supplies and support services required to produce them. As stated above I believe buying pages should be the objective and operating principal behind almost all mature managed print service agreements.

So what does this really mean – I will provide you with some suggestions below:

• As a client you do not want to invest large sums of capital in assets (hardware) but rather want to pay for the pages they produce
• You want the ability to expand or contract the overall size of your document output fleet as your needs change without penalties, refinancing of hardware or the exorbitant cost typically associated with co-terminus leases
• It is a requirement that individual devices be upgraded or downgraded to meet the changing needs of workgroups, departments or facilities within your enterprise.
• Your vendor partner is going to make sure the enabler hardware performs to the agreed service level agreements and provide the functionality required to fulfill the application
• Your employees should not have to divert their productivity to making sure the hardware is performing adequately or that supplies are delivered in a timely fashion

When you have the flexibility, productivity and support suggested above I would personally consider that as optimization of your document output environment. Now I recognize that there will be some exceptions to this where an organization for one reason or another wants to or needs to use “capital dollars” to fund technology, but I am confident this is a relatively small sampling of the overall en-user community.

How do You Get There?

The simple answer to the above question is “through thoughtful and strategic planning” of your strategy to manage your document output environment.

Wayne Gretzky once responded to the question why he was such a great hockey player. Mr. Gretzky simply said “I go to where the puck will be not where it is!”

So the question is does your strategy for managing your document output environment take you to where you want to be or just address it as it is today? Have you and your current vendor created a strategy and plan of action to take you there?

Getting “Real”

As I write this post I can imagine a number of participants at all levels of MPS expressing “get real” at their computer screens as they read my words.

My assurance to you, the end-user community who pays the bills that this discussion is very real and being put into action today – I have firsthand experience with it. Even if you feel you are locked into current technology investments explore your options, they are out there. Oh and an important note, you should not have to pay a premium for this level of flexibility.

I also believe it is the future, maybe not of fleet management but of managed print services. For more information please feel free to contact me at (ghawkins@buscomgroup.com ) at your convenience.

Managing your Document Output Environment – Where do you Begin?

I suppose that I should disclose from the beginning that this posting was born largely from frustration. After studying a couple of dozen more RFPs and RFIs from both private and public organizations I hope I may be able to influence some of you!

What are your Influences?

While I have read a number of well thought out documents it seems to me that the majority have two primary influences:

• copier and multifunction device leases up for renewal
• vendor presentations on their versions of managed print services

My impression is that most of these RFPs are seeking a strategy rather than being based on a thoroughly developed one. My concern is that many well-intentioned project managers are rushing into commitments and contracts that will tie their hands from real environment improvements and expense reductions for the period of the resulting contract.

What is the Rush?

I am surprised by how many of these RFPs have been published with a combination of short time frames for implementation and lack of strategic direction. Most of these appear to be copier bids modified in some way to explore managed print services. My conclusion is that their genesis is a copier contract expiring in sixty or ninety days and were rushed to meet that restrictive timeline.

Since my professional life is based on helping you implement efficient document output environments, maximizing your effort and realizing your objectives are important to me. My advice therefore is take your time, do it right and follow a strategic plan!

Two of my more recent clients brought me in to make recommendations for upcoming technology replacement: lease ends. In both cases I was able to show them that it was in their best interest to take the time to approach their document output environments holistically and strategically.

Where did we Begin?

After these clients saw the long-term potential of changing their approach from rushing to replace their leased hardware to implementing a managed document output environment we explored the short-, mid- and long-term actions for implementation.

The first step was to consider the current fleet. In the cases of both clients and most of the RFPs I have read, the fleet had useful life remaining – there was no immediate need to replace it. So rather than rush into an agreement looking for a strategy we extended the current contract; in one case by negotiating a much reduced monthly lease payment and the other by exercising a very low cost purchase option. These actions provided time to develop a comprehensive document output strategy and resulted in significant monthly expense reductions while we did. Interesting note is that I helped the client who exercised their buyout sell the fleet for $35,000 more than their purchase option a year later.

During the same time we implemented other cost-saving actions as well as putting a freeze on new printer purchases resulting in even more savings.

Preparing for MPS

By taking a step back we were able to accomplish a number of things:

• create immediate significant expense reductions
• rationalize the entire fleet of document output devices
• prepare the employees for change and future workflows
• implement new workflows to leverage new hardware
• create a plan for the contract term and beyond
• develop a comprehensive document output strategy

Taking the time to create a thorough document output strategy enabled:

• identification of additional savings and improvements
• full leveraging of current investments in technology
• issuance of highly defined RFPs that supported the clients’ strategies
• implementation of world class managed document output environments

The Take-Away

What I hope you take away from this posting is that implementation of a managed document output environment is an important undertaking in today’s business and technology climate and deserves the time and attention to do it right.

I encourage you to begin your planning today if you are under a current copier/multifunction device contract or explore ways to avoid rushing into an incomplete agreement.

Additionally, develop your RFP and resulting contract based on your individual needs and strategy and do not limit them to what service providers tell you they can do. Managed print services should not come from a can!

For more information please feel free to contact me at (ghawkins@buscomgroup.com ) at your convenience.

Gordon Hawkins Presenting at ITEX 2011

Gordon Hawkins will be returning to the ITEX show this year to present “Anatomy of a Managed Document Output Environment.”

Anatomy of a Managed Document Output Environment

This presentation will follow the steps and processes taken to maximize current investments while transitioning into a world class managed document output environment.

Based on an actual client engagement we will look at statistics, actions and results from:

• Assessment
• Data analysis
• Development of a document output strategy
• Planning for a successful transition
• RFP management
• Implementation
• Management of the environment

What Can You Learn?

The dealer and managed print services vendor can learn how to add value to your service offering: beyond simple supply replenishment and hardware services.

End-user clients can walk through the strategic processes to transform your own document output environments and realize the objectives of your efforts.

When and Where?

Session P21: Anatomy of a Managed Document Output Environment
Wednesday, March 23 at 9:00 a.m.
ITEX 2011 Expo & Conference, Walter E. Washington Convention Center

Save $50 on your Registration

You can save $50 on your registration fee by using Registration Source Code 923K on your registration form.

ITEX National Expo & Conference is the largest expo & conference in North America for the imaging channel, ITEX 2011 will provide the latest state-of-the-art office solutions, technology innovations and product, from the industry’s best thought leaders, service providers, vendors and manufacturers. ITEX insists that actionable strategies are implemented to secure high margins in managed print services, document management solutions, managed services and IT systems, as well as the growing office supplies market. These quality education sessions led by experienced leaders will enrich your business model - and are plentiful at ITEX! For up-to-date conference and exposition information, please visit www.itexshow.com. Education, products, support, and value. ITEX 2011 - the one event that captures it all

For more information please feel free to contact me at ghawkins@buscomgroup.com at your convenience.