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Controlling Today’s And Tomorrow’s Information Costs
NYC - Crawford Del Prete, Executive Vice President WW
Research Products & Chief Research Officer
Tokyo - Takashi Miyazono, Manager, IDC Japan
London - Angèle Boyd, GVP/GM, Document Solutions & SMB
Markets
1/18/2011© IDC 2
Context
– Managed Print or Managed Document Services?
– Market outlook
Forces shaping business and customer impacts
– Information explosion
– Workforce changes (reduction, mobile/remote)
Addressing these customer impacts. IDC and Ricoh research
(800 organizations in the US and EU) findings
– Customer needs
– Savings and benefits
– Leading-edge provider response
Agenda
1/18/2011© IDC 3
IDC’s print and document outsourcing taxonomy defines Managed Print
Services (MPS) as
– Third-party contracts that assess, proactively manage and continuously optimize
a customer’s printing/imaging/document environment.
IDC’s view of MPS is a continuum of offerings
– Contracts that focus on the hardcopy device environment
– Contracts that additionally focus on business process improvement by
transforming document workflows
– Ricoh’s Managed Document Services (MDS) focus is here
MPS or MDS? The Opportunity
8.5B
11.7B
0
2
4
6
8
10
12
14
2010 2014
$ B
illi
on
s
WW MPS Opportunity
1/18/2011© IDC 4
Information Explosion And Its Impacts
By 2020 IDC projects the digital universe will be 44x 2009’s size
– In 2009, despite the global recession, the Digital Universe (WW) set a record.
– It grew 62% to nearly 800,000 petabytes (a petabyte is a million gigabytes). Picture a stack of
DVDs reaching from the earth to the moon and back.
– In 2010, the Digital Universe was projected to grow 50% to 1.2 million petabytes.
– By 2020, our stack of DVDs would reach halfway to Mars!
The result
– Information overload, failure to leverage information,
regulatory compliance and security risks
– Organizations are paying a heavy price, and need
technology and services to manage information for growth
and competitive advantage
But, organizations lack resources to manage and reap benefits
– Job reductions in the economic crisis eliminated job growth of prior years
– The number of IT professionals WW will grow by only 1.4x
1/18/2011© IDC 5
Workers Rely on Many Forms Of Information To Conduct Their Jobs
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Instant Messages
Digital Pictures
Digital Forms
Digital Data Base Records
Web Site Info
Digital Documents
Voice Calls/Mail
Paper Forms
Paper Documents
Ty
pe
s o
f in
form
ati
on
% of workers
Paper documents are a significant source of information for workers.
1/18/2011© IDC 6
Workers Want to Reduce Paper Document Usage –25% to 50%+ Cite This For Most Document Types
0
10
20
30
40
50
60
General bus. c
orrespond.(m
emos/emails/m
tg. minutes)
Financial (budgets, p
urch./billi
ng, expense rpts.)
Mktg./sales (p
res., broch./fl
yers, nwslttr
s., ads/signs, s
ales rpts., m
ktg. ...
HR docs. (work descrip
tions, re
cruit., health
care related)
Education/tra
ining materia
ls
Legal (contra
cts, litig
ation, re
g./compliance)
PDFs
Manufacturing (s
hipping, inventory, fa
cils./o
ps.)
Websites (w
eb-based materia
ls)
Other
Total n=196
<100 emp n=70
100-999 emp n=42
1000-4999 empn=26
5000+ emp n=56
Source: IDC Quick Poll, April 2010
1/18/2011© IDC 7
The High Costs of Inefficient Information Management
Average Hours
per Worker per Week
Cost
per Worker per Year ($)
Searching but not finding information 3.7 5,974
Reformatting data from multiple sources 3.7 5,974
Recreating content that can't be found 2.5 4,037
Publishing via multiple applications 2.1 3,391
Unraveling version control issues 1.2 1,938
Translating from one language to another 0.5 807
n = 345
Notes: Costs were found to be worse among VPs and Directors, and mid-size firms.
Cost per worker per year is based on an annual salary of $75,000, including benefits but not overhead.
Source: Hidden Costs of Information Work: A Progress Report, IDC#217936, 2009
An organization with 1000 knowledge workers loses $6 million annually
1/18/2011© IDC 8
Total Costs of Printing, Imaging and Document Management Are Hidden And High
IDC and Ricoh research finds:
– C-execs do not have visibility into their costs according to
the latest IDC research conducted for Ricoh
– Fragmented ownership of the many components (IT, Facilities,
Procurement, Office Services, LOBs, Telecomm., Regulatory
Compliance/Security)
– Many think their costs are insignificant
11%15%
Manufacturing Healthcare
Total Costs (percentage of revenue)
– As a percent of revenue, total costs
range from 11% in Manufacturing
to 15% in Healthcare
1/18/2011© IDC 9
2. Increasingly Mobile/Remote Workforce And Impacts
Mobile/remote workforce expansion
– 29% of WW workforce in 2008, 35% by 2013
– Largest group is mobile office worker (60% of
total; 5% CAGR)
– Fastest growing is home-based worker (6%
CAGR; 5% share)
Corporate information access anywhere, anytime
– Security breaches occur when documents
(paper and digital) get into the wrong hands
Calls for IT infrastructure and support to reduce risk in
the printing and document infrastructure
– Secure document access and management
– Authorization/authentication to network and
cloud resources via proximity swipe cards and
biometrics
1/18/2011© IDC 10
Customer Needs
IDC research conducted for Ricoh finds that customers need
– Education about their total costs
– Benchmarked savings and benefits
for their industry
– Integration of MPS into other IT and
corporate initiatives
– One throat to choke (“universal” help
desk; integration with other service
contracts e.g. ITO and BPO)
– Experienced and trusted partner to
work with
– Help/tools to change employee behavior to achieve and maintain
goals
– Security of corporate information, document workflows and devices
– Global delivery (large companies)
1/18/2011© IDC 11
MPS Drives Savings And Benefits Beyond Hardcopy Infrastructure (Print/Copy/Fax)
IDC research finds:
MPS savings average 25% (as high as 30% and 40% for some industries)
A $250M company can recover $6M in savings
Customers are realizing transformative benefits as a result of streamlined
business process document workflows, an increasing trend. Biggest
savings:
– Tier 1 (48% to 55%+ cite as biggest savings) – ink and toner, HC device
break/fix, and HC device hardware.
– Tier 2 (18% to 27% cite as biggest savings) - Paper, IT headcount,
streamlined business process document workflows, and external print
procurement.
• Streamlined business process document workflows rates increased
over the 3 periods studied.
– Tier 3 (7-14%) – Help desk calls, paper document storage and impact on
the environment.
1/18/2011© IDC 12
Leading Edge Provider Response
Help customers manage information for
better business outcomes via:
– Business-process document workflow
transformation
– Cloud-based printing and document
services
– Security to safeguard corporate data
– Mobile/remote worker support
– Sustainability measures around
documents to reduce environmental
impact
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