C. Clint Bolte & Associates

The inaugural gathering of 150 copier fleet aficionados committed to better control, cost reduction, and improved knowledge worker efficiency met April 26-28, 2009 at the Omni La Mansion del Rio on the San Antonio River Walk. Digital print engine manufacturers, specialty software vendors, value-added resellers, consultants, and a few corporate end users heard Managed Print Services presentations on best practices and successful case studies. At conference conclusion a volunteer task force was formed to consider the creation of a trade association around these shared Managed Print Services (MPS) precepts. The MPS market research and strategic consultancy, the Photizo Group, organized this first topical conclave.

The definition of Managed Print Services is evolving and quite often set by each vendor to best match its service offering. Photizo defines Managed Print Services as “the outsourcing of hardware devices, services, supplies, and most importantly management of the fleet.” The actual definition of the term varies among the marketing research firms of Gartner, Lyra, and Photizo that track this market niche, which contributes in part to the variance in each of their growth projections. The overall market for hard copy administrative printing is acknowledged as being flat as more and more document storage and dissemination is virtual and electronic rather than printed.

However, Photizo pegged the 2007 MPS market in North America to be $5.2 billion or about 14% of the total NA imaging market. They expect a 20% year over year growth for the next five years with MPS climbing to 35% of the total imaging market in 2012. One to three percent of corporate revenues, depending upon SIC category, are being spent on hard copy printing.

Converting a stagnant market to one of growth suggests a shifting or broadening of objectives by the corporate end users and an enlightened new business model by the manufacturing channel. Here are the proposed change elements from the low hanging fruit all the way up to moving the mountain;

1. Corporations of virtually all sizes have no idea how much they are spending in this space. The low cost of some desktop devices are under the corporate asset radar. Hence, most firms have much more equipment than they realize. As larger pieces of leased copier equipment come up for renewal, the clear, knee-jerk objective is to get control of this growing amoeba.
2. 2. Contacting any of the sixteen hardware manufacturers and many of the VARs selling and servicing the equipment, a firm’s purchasing and/or IT departments learn that free equipment utilization assessments are available. Surprisingly simple software is linked to the print network and USB data capture ports are added to the stand alone devices to determine how much simplex/duplex, mono/color printing and by whom and how much downtime is experienced.
3. 3. Proven cost savings venues are plentiful:
   a. Economy of scale buying of equipment and supplies,
   b. Moving the assets off the balance sheet as part of a cost per copy (cpc) contract,
   c. Reducing head count by outsourcing service,
   d. Utilizing pop-up software on all equipment to encourage users to save money, such as default duplexing and sending the job to the least expensive device for printing, is a user behavior change initiative,
   e. Utilizing the scan and fax features of the multi functional printers (MFPs) reduces unnecessary printing by capturing and moving documents electronically, and
   f. Total chargeback capability via user code or card, i.e., no free copies, also contributes to fewer copies being made.
4. 4. Process improvement adds to knowledge worker productivity:
   a. Office mapping to assure that the appropriate equipment is convenient to all employees adds to efficiency and savings,
   b. Client productivity and satisfaction climb with automatic software feedback embedded in the hardware (1) to maintenance forewarning problems improves up time and (2) to supplies control reduces idle inventory investment,
   c. Software queuing work (with user permission) to low production demand periods (nights) increased hardware utilization and
   d. More energy efficient hardware, fewer copies, and recycling add to the corporation’s overall environmental efficiencies.

Ken Roche, Vice President of Sales and Marketing for the Print Operations Group (POG), offered several best practices for MPS benchmarking and assessment. Realize that “free assessments by VARs and/or manufacturers are not free” because of their inherent conflict of interest. They want to replace your existing equipment with theirs and your supplies sources with theirs. A clear and concise request for proposal (RFP) and service level agreement (SLA) based upon the actual current spend, integration with the corporate wide strategic objectives, quantifiable and continuously monitored key performance indicators, and issues addressed with the supplier on at least a quarterly basis are essential to a successful relationship. POG is one of several independent MPS consultancies with no ties to manufacturers or suppliers.

Measuring and compiling the key performance indicators of the copier fleet is the job of the specialty software. While some hardware manufacturers offer their own solutions, the independents hold a strong market share. They include PrintFleet, PrintAudit, MWAi, fmAudit, Netaphor Systems, DocuAudit, and Compass Sales Solutions. The costs of their software that can vary from $150 down to $9 per workstation depending upon total volume of stations. This annual fee is typically rolled into the CPC agreement. Many of these softwares also provide training and marketing services to VARs who are constantly improving their MPS skills. Hence, the end user may find this to be negotiable.

The Founding Partner of The Photizo Group, Ed Crowley, offered some best practices for MPS programs. The gap analysis of where the user is and where they want to be includes four critical steps: (1) measuring the current state, (2) gathering end user input (and buy-in starting at the C-level), (3) identifying industry benchmark metrics, and (4) setting measurable objectives. He added that the end user input “was not creating a wish list.” A reliable source of metrics can be independent consultancies such as POG, Print Access, Newfield IT, and Photizo. Because the bar is always rising with users reaching for the business process enhancement stage, Crowley recommended that the MPS contract length not exceed three years.