<p> White Paper January 2015 Office Productivity and Cost Savings Understanding the Value of Today’s Print Technology Comments or Questions? WHITE PAPER Office Productivity and Cost Savings: Understanding the Value of Today’s Print Technology © InfoTrends 2 Executive Summary Across business departments and sectors, organizations continue to handle a wealth of paper-based information. In many cases, this information is being printed, filed, mailed, faxed, and edited by hand. There are clear benefits to using hardcopy material for various processes and situations, including customer satisfaction, employee preference, and ease of comprehension. Paper is often used as a means to collect and share information because it can be the lowest common denominator of media that is still widely accessible in many different situations, such as employee onboarding and collection of information. At InfoTrends, we are sure that paper will exist to satisfy these instances; however, having the right type of printing device at the right place, we have seen user productivity enhancements. At the same time, there are more and more digital processes established that have transformed manual workflows to electronic ones, particularly when it comes to storing, sharing, and retrieving documents. InfoTrends’ recent analysis of paper-intensive areas, for instance, suggests that organizations have saved tens of thousands—and even hundreds of thousands —of dollars each month by incorporating multifunctional peripheral’s (MFP’s) capture and workflow capabilities, eliminating the manual. The beauty of the MFP is that it includes print and scan (as well as copy and fax) capabilities to serve as output and input, providing immense value from a hardcopy and digital workflow perspective. Key Findings  Departments like human resources, accounting, and legal continue to rely heavily on hardcopy documents for processes like employee onboarding, invoicing, and notetaking.  Industries like healthcare, insurance, and real estate also depend strongly on hardcopy documents for tasks like patient admissions, account creation, and mortgage approval.  Incorporating MFP capture and workflow solutions, including the storage and retrieval of records, is saving businesses tens (and even hundreds) of thousands of dollars each month. Recommendations  Organizations are encouraged to identify where paper processes are providing distinct value to customers, employees, and suppliers. In these instances, tasks like mailing and on-site storage may be well worth their associated costs.  Organizations are advised to determine manual, less secure paper-based processes that can be incorporated into electronic workflows. Making these processes more electronic and automated (through tools like scan to e-mail, scan to workflow, as well as electronic file search and retrieval) could save significant time, money, and be more secure. WHITE PAPER Office Productivity and Cost Savings: Understanding the Value of Today’s Print Technology © InfoTrends 3  Understanding the range of value provided by print and scan devices can help organizations determine their technology investment priorities. Introduction For decades, business professionals and societal commentators have entertained the idea of a paperless office. While it is clear that electronic processes have significantly transformed business workflows, it is also evident that most offices are still far from being paperless. Digital technologies have enabled the move to electronically-based platforms, but they have also resulted in an explosion of business-critical information that needs to be organized, presented, and understood. Print is a time-tested way for important information to be absorbed, communicated, and made sense of. It continues to offer benefits around comprehension, convenience, and simplicity. The added ability of print devices to scan, integrate with business systems, and connect with cloud services provides benefits from a digitization and workflow perspective. This white paper will address the critical nature of these print devices through examples of their value across various departments and business industries. It will also review ways that organizations can improve their print operations to save money and improve productivity. Importance of Print: High-Level View A recent InfoTrends study revealed the importance of print to organizations with fewer than 500 employees. On average, these organizations spend between $13,000 and $62,000 on printing (depending on their industry). These amounts are largely driven by the organizations’ average number of employees as well as revenues, but industry-specific business processes are also playing a role in print spend. WHITE PAPER Office Productivity and Cost Savings: Understanding the Value of Today’s Print Technology © InfoTrends 4 Figure: Average Annual Printing Spend by Industry When considering that organizations are also spending large amounts of money on the storing, sending, and retrieval of printed documents, it becomes clear that print is an integral component of business workflow. The Table below shows examples of hardcopy- related spending in a company handling 1,000 hardcopy documents (totaling 5,000 pages) a month. Table: Select Monthly Costs Involved with Hardcopy Documents Activities Cost involved Average # of documents or pages handled Cost of handling documents/pages Sending document via express mail $19.95/document 1,000 documents $19,950 Purchasing filing cabinet (3,000 page capacity) $1,250/filing cabinet 5,000 pages $2,083 Filing document in filing cabinet $2.30/document 1,000 documents $2,300 Retrieving document $2.30/document 1,000 documents $2,300 Searching for and replacing lost document $120/document 10 documents $1,200 Total: $27,833 N = Varies by Industry, 1,092 SMB Respondents Source: Micro to Mega: Trends in Business Communications, InfoTrends 2015 $34,843 $22,332 $26,023 $16,783 $61,567 $30,952 $21,022 $48,043 $44,679 $13,269 $36,562 $28,619 $42,282 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 • Financial and insurance firms spend the most on printing • Personal services firms spend the least WHITE PAPER Office Productivity and Cost Savings: Understanding the Value of Today’s Print Technology © InfoTrends 5 On the whole, organizations report plans to cut back on print spend over the next couple of years at an annual rate of -5%, though the construction (2%) and hospitality (1%) industries are expecting print spend to grow. Given these overall plans, it is important for organizations to find ways to optimize their print and document infrastructure to reduce costs. Following a review of how different business departments and sectors are relying on their print devices, the “Optimizing the Print Environment” section below features guidelines for achieving efficiencies within the print environment. Importance of Print Human Resources Department The human resources department handles a wide range of documents, including job opening announcements, job applications, new employee packets, training materials, benefits information, performance reviews, and workplace injury reports. Many of these documents continue to be handled in printed form, which is particularly striking when we consider that the average company hires 23 employees a month1. Figure: What materials are given to the candidate on their first day/week of the job and, for the most part, what type documents are these? Source: InfoTrends Many employees appreciate the convenience of having these documents in hardcopy form, while the human resources staff is often comfortable with traditional ways of storing and accessing employee records. That said, those interested in a more digital approach are also using the print device to electronically capture and route documents to PCs as well as to digital records systems. 1 Based on a recent InfoTrends human resources survey. 41.9% 43.0% 53.5% 62.8% 29.1% 18.6% 25.6% 10.5% 17.4% 34.9% 20.9% 15.1% 11.6% 11.6% 0% 20% 40% 60% 80% 100% Training materials Workplace policy handbook Healthcare/Benefits enrollment plan Welcome package Paper-based Documents Combination of Paper and Electronic Documents Electronic Documents N/A N = 86 Respondents familiar with onboarding WHITE PAPER Office Productivity and Cost Savings: Understanding the Value of Today’s Print Technology © InfoTrends 6 Accounting Department Similar to human resources, accounting departments continue to depend greatly on paper and printing for their day-to-day workflows. A recent InfoTrends survey shows the overwhelming majority of companies maintain a hardcopy of files for purchasing (93%), expense reporting (85%), accounts receivable (86%), accounts payable (86%), and sales operations (80%). Physical signatures are also nearly twice as common as electronic signatures; 17% of businesses input hardcopy information manually into a system. These paper-based processes are often well understood by employers, employees, and business partners—making them worth the associated costs. While many organizations are transitioning away from certain paper-based processes, like manual data entry, they are increasingly benefiting from the print device’s scan and workflow capabilities. Legal Department Legal departments continue to rely heavily on paper as a way to uphold legal norms and ensure privacy of information. An InfoTrends survey of corporate lawyers revealed that approximately 52% of respondents capture important notes about cases on paper, and nearly 90% maintain a hardcopy file/files of relevant case paperwork. These behaviors help explain why MFPs are the most commonly used devices for work purposes in this environment. All corporate lawyers surveyed use MFPs for work purposes; these devices are always provided by the company. Figure: What types of technology is used in your office for work related purposes? Source: InfoTrends 100.0% 51.7% 13.8% 32.8% 12.1% 31.0% 65.5% 56.9% 87.9% 89.7% 8.6% 29.3% 17.2% 0% 20% 40% 60% 80% 100% Tablet PCs Smartphones Single function scanners Desktop computers Laptop Multifunctional printing/copying devices Provided by the Company Personal Device Do not use device for work N = 58 Respondents that work for corporate law firms WHITE PAPER Office Productivity and Cost Savings: Understanding the Value of Today’s Print Technology © InfoTrends 7 InfoTrends survey data reveals that, on average, legal employees take on 30 new projects a month, which suggests each employee may be handling hundreds of pages of hardcopy material monthly. While lawyers are increasingly adopting digital approaches to sharing material with clients, courts, and opposing lawyers, it is still important they have access to print devices for the variety of document formats they handle. Healthcare Healthcare is one of the most paper-intensive industries in the United States, generating more than 15% of the total amount of pages printed annually2. Paper is often the “lowest common denominator” for information collection and sharing with patients and third- party organizations like insurance companies and other healthcare facilities—helping explain why up to 46% of patient admission information is still received from associated physicians by fax. Each workday, the average hospital nurse prints 173 pages and copies 105 pages. For a hospital employing 100 nurses that work an average of 20 shifts per month, this is quite a high volume of paper (556,000 pages). Given the high amount of paper used in this industry, there is a definite opportunity for cost savings within the print environment. Insurance The insurance industry is also highly paper-intensive, with many applications, supporting documents, and statements being transmitted in paper form. An InfoTrends survey revealed that at least half of applications for consumer life insurance, consumer home insurance, consumer auto insurance, and consumer health insurance were submitted with some amount of paper. When considering the average location surveyed opened over 2,500 new consumer home insurance and 2,700 auto insurance policies a month, it is clear these locations are making good use of their MFP print and scan equipment. While the top method of delivering a paper application to the processing center is scanning and e-mailing (30%), faxing (20%) and mailing through the U.S. postal service (11%) continue to be fairly prevalent. Real Estate The real estate industry also relies heavily on documents and printing, despite the abundance of property information that is now available online. The value of printed property information to clients can be difficult to quantify, but the assumption is that they help make property buying easier as well as show the realtor’s commitment to their satisfaction. Other commonly printed documents may include offer letters and mortgage loan applications. From a mortgage loan perspective, not only are applications and supporting documentation often supplied in hardcopy form, but customers almost always receive a hardcopy packet once they have received their mortgage approval. 2 Based on InfoTrends vertical market estimates WHITE PAPER Office Productivity and Cost Savings: Understanding the Value of Today’s Print Technology © InfoTrends 8 Figure: How is the final mortgage loan paperwork provided to the customer? Source: InfoTrends InfoTrends’ research shows underwriting organizations process an average of 482 consumer home mortgage/refinancing loans a month, further validating the industry’s dependence on paper. Optimizing the Print Environment With many departments and industries continuing to heavily rely on print, it is important that they strive to optimize their print environment to achieve the maximum amount of productivity and cost savings. As highlighted in the Device Underuse and Unbalanced Fleet study, InfoTrends’ research suggests a more balanced deployment of devices— through the placement of the right printers in the right places—may help organizations achieve these objectives. “Right printers” include devices whose functions are being adequately used, while the “right places” include locations that are sufficiently close to employees. It is also important for organizations to leverage supplemental features of print devices (like scan to workflow) to improve overall document productivity. Ensure Print Devices are Not Underused Many mid- and large sized businesses have high-end MFPs with robust page volume capabilities, A3 (11” x 17”) printing support, and finishing features (e.g., stapling, hole punching, folding)—yet they are not necessarily taking advantage of their capabilities. This potential under-usage has significant cost and productivity implications for these companies. Regarding cost, devices with these capabilities tend to be much more expensive than their more basic counterparts. Furthermore, when they are part of a contract, the pricing is often based on an expected level of monthly print volume that is fairly elevated, given the nature of the machines. 15.9% 6.8% 9.1% 18.2% 50.0% 0% 20% 40% 60% A combination of a packet and electronic files are provided to the bank or agent, and they provide it to their customer We provide an electronic acceptance and approval document to the customer We provide a hardcopy packet of paperwork to the bank or agent, and they provide that to their customer An electronic file is provided to the bank or agent and they have to print out the packet for the customer We provide a hardcopy packet directly to the customer N = 44 Respondents that are underwriters that are responsible for notifying clients of approval WHITE PAPER Office Productivity and Cost Savings: Understanding the Value of Today’s Print Technology © InfoTrends 9 With many businesses taking a more digital approach to document handling, it appears as though these devices and associated contracts may not be the most financial appropriate option. In addition, underusing devices can result in additional energy, maintenance, and real estate costs. In terms of productivity (with these devices tending to require repairs and other interventions), IT staff may find themselves devoting extra time toward their upkeep. Ensure Print Devices are Effectively Deployed The trend of managed print services and printer fleet optimization has resulted in many organizations reducing the number of their machines, acquiring the higher-end devices mentioned above, and centralizing the placement of their printers. While this approach has worked for some, the “rationalization” of fleets in many instances has gone too far— creating an environment that can actual hinder worker productivity. More people are sharing these devices than ever before, and they are farther away from employees than they used to be, which drives up costs. Instead of having a few high-end (and costly) MFPs spread across the organization, it may make sense to have a greater number of more basic devices in key locations. In addition to the cost and productivity benefits mentioned earlier, this approach can generate additional efficiencies by bringing employees closer to a printer and ensuring that a printer is always available to handle their job. The printers could be placed in such a way that no employee is farther than 15 to 20 feet from the closest device, though the number and exact type of printers would likely depend on the average print volume of nearby workers. Leverage Other Device Features for Improving Document Productivity While print remains an integral part of business workflow in many organizations, many businesses are transitioning over to processes that are more digital in nature—including processes around information sharing, storage, and retrieval. Print devices are contributing to this shift through their electronic capture and routing capabilities, sometimes helping organizations save hundreds of thousands of dollars. With other features—like support for printing from mobile devices, connecting with cloud services, and sustainable/“green” printing—these devices are helping businesses operate as productively, cost efficiently, and environmentally consciously as possible. Furthermore, compatible solutions and services for tasks like print management/cost recovery, content management, and industry-specific business processes (including compliance requirements) can help organizations derive full value from their print devices. WHITE PAPER Office Productivity and Cost Savings: Understanding the Value of Today’s Print Technology © InfoTrends 10 InfoTrends’ Opinion While the world is increasingly operating through digital means, businesses continue to find value in hardcopy files and the print devices that produce them. A printed version of a contract, presentation, or spreadsheet can be particularly effective in communicating an idea or catering to a client or business partner; this is a major reason why organizations continue to spend hundreds of thousands of dollars annually on printing and hardcopy workflows. Business departments like human resources, accounting, and legal are a few of the areas where print is most prevalent, while industries like insurance, healthcare, and real estate are some of the industries that depend most on hardcopy documents. The continued emphasis on print opens up productivity and cost savings opportunities for organizations. These businesses can achieve savings by ensuring their print infrastructure is optimized through the right mix of devices in the right locations, as well as through the use of device features that align with digital, mobile, cloud, and industry-specific workflows. The beauty of print devices is that they enable a wide range of processes—hardcopy and digital in nature—and are ever-evolving to accommodate new workflows and needs. Organizations are encouraged to continually monitor their print infrastructure just as they would do with any part of their IT environment to guarantee they are maximizing cost savings, productivity, and customer/employee satisfaction. This material is prepared specifically for clients of InfoTrends, Inc. The opinions expressed represent our interpretation and analysis of information generally available to the public or released by responsible individuals in the subject companies. We believe that the sources of information on which our material is based are reliable and we have applied our best professional judgment to the data obtained. </p>