The Missed Opportunities in Managed Print Services

Artist, Christine Walters

Managed Print Services (MPS), or the act of supplying and servicing printing devices, originated before 2007. MPS engagements promise supplies and/or service delivery, billed by usage.

For example, for every page printed, a provider will charge as little as 0.0120 for each. Invoicing is periodic and covers supplies along with any service calls required to maintain the devices under contract. At the base level, when an end user requires toner or a service call, the provider sends supplies or dispatches a technician with the goal of meeting defined Service Level Agreements (SLAs).

The promise of MPS was the continuous management of an unmanaged resource – which would ultimately reduce costs. Some programs promised as much as a 30% reduction in printing costs, but for many MPS clients, these costs were never realized.

From banking to healthcare, every industry has explored the many facets of managed print services and experienced false promises.

There are three basic missed MPS opportunities:

1. Device reduction and fleet optimization, resulting in lower costs
2. Support for paper-to-digital workflow transformation
3. Enhanced customer relationships

Device reduction and fleet optimization

For decades, printers have been purchased and installed ad-hoc. It was assumed that every new employee required a PC and printer to fulfill their assigned duties, so the number of printing devices grew exponentially. The transmission of information shifted from paper to screen, but the production of printers and copiers did not slow.

Overcapacity in print environments was institutional. For example, consider all the copiers capable of reproducing tabloid-sized (11” x 17”) documents. These machines must be physically large enough to support the paper size; rollers, fusers, glass, output trays, and the like. Yet, when analyzed, less than 3% of ALL business output is in the tabloid format, but nearly 90% of copiers were built to support the larger media size.

Today, companies have more print devices than they need, which has generated a pool of underutilized assets and avoidable costs. Though net new device installations are decreasing, a significant increase in operational productivity around the print is still nebulous.

Support for paper-to-digital workflow transformation

As the idea of MPS grew and more assessments were performed, companies started examining the reasons employees print in the first place. (The least expensive image is the one that is never printed.) Additionally, as tablets and smartphones invaded the corporate space, information began to flow from screen to screen more often and businesses naturally started printing less.

For MPS providers, this presents quite a quandary: promoting a reduction in print (one of the marketing pillars of MPS) means shrinking revenues. Presented with the choice of either moving into digital workflow solutions or continuing the old ways of contractual service and supplies management, most providers chose the latter. Regardless, organizations are organically discovering ways to move and present the information faster than the speed of paper: without (and some might say in spite of) printer and copier manufacturers’ MPS programs.

Enhanced customer relationships

Many organizations feel they can better manage cost reduction in-house, without an outside vendor. Aligning internally-managed MPS goals with an overarching organizational vision is easier accomplished without conflicting intent. A provider usually is serving an equipment quota whereas IT departments serve end users.

The missed opportunity for most MPS providers is the chance to become a technology partner. Because printers and the management of output assets fall within the IT realm (an area unfamiliar to most MPS providers) the chance to build credibility with IT in addition to procurement was inherent to the assessment process. Unfortunately, managing to status quo became the norm as breakout opportunities for deeper relationships slipped away.

Today, organizations might be implementing their third or fourth MPS engagement. But what have we learned?

• Who’s responsible for measuring cost reductions?
• How are results measured?
• How do you manage a new MPS program?
• Do you mix copiers and printers into the SLA?
• What are the results? Have costs been decreased and goals met?

Here are some basic recommendations:

• Treat output devices as endpoints.
• Define and implement clear assessment protocols
• Initiate asset tags and an asset management program
• Design refresh strategies similar to PC/laptop
• Define output goals (for example, paper reduction, enhanced patient experience, etc.) that are supported by executive management

There are around 30 relevant points to consider when looking to reduce the costs associated with moving information within and outside your organization – and the cost of toner is just one. The five recommendations above represent the beginning of a Print Policy.

Stay tuned for my next post, where I’ll share more on how to design a realistic and sustainable Print Policy.

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Don't Buy Another Printer, Copier, Toner, or Managed Print Services Unless You Have One of These.

"Roll the Dice"

I often describe the office print environment in one word, "overcapacity".

Even as manufacturers (Ricoh, Xerox, Canon) start to make smaller footprint devices - it wasn't that long ago when copier reps would mock those little devices - businesses have more print and copy capacity than they need.

It is like the Tragedy of the Commons.

My point: we've been over-purchasing (or over-sold) print devices for decades and it's because the decision process has been unmanaged.

Well, that's not one hundred percent accurate - copier acquisition, printer procurement, supplies fulfillment, and service request procedures have, for the most part, been managed - they've just been managed by VENDORS AND SUPPLIERS.

Not customers.

Think about it -

• Who tells you the lease buyout figure?  
• Who determines the "best" device for your needs?  
• Who conducts the 'agnostic' assessment?  
• Who interfaces almost daily with your end-users? To you they are end-users, to the vendors, they represent 1,500 images a month.

Expecting your copier, printer, or toner supplier to build a program that supports your cost reduction program is like expecting the wolf not to eat the rabbit.

It is worse than you think.  It usually is.

Not enough people are making a difference in Managed Print Services. There is a Silver Lining.

ENX is celebrating the people making a difference across the document imaging industry.  Every two years, a few notables in the copier and printing industry receive kudos from their peers.

This year, I received a request from Scott Cullen, asking for input.

I've known Scott for a while - interviewed me, many years ago.  I was impressed, I still am, with his ability to draw out relevant information (like a good assessment) and present an easy to identify story(like a good proposal).  He is good people.

I've also known Susan Neimes for a long time.  She's managed to stay among the top of the media heap, through the turbulence.  Good form.

I am often asked for input on a variety of subject matter.  Here is Scott's request and my response:

Hi Greg,

I'm pretty sure I sent you an e-mail about this already, but just in case, here you go again. As someone who has been around the document imaging industry for awhile, I'd appreciate your input. I know you're busy preparing for ITEX (I'll see you there.), but hopefully you have a few minutes before or after to give this some thought.

The May issue of ENX is celebrating the people making a difference across the document imaging industry...

Here’s the criteria to help with your suggestions: The thought leaders and individuals from all corners of the industry (hardware, services, solutions, supplies, associations, analysts and consultants) whose knowledge and opinions their peers and others in the industry value. Some may be doing a terrific job of leading their organizations and building a business, or in some cases, multiple businesses. 

Others are front and center at industry events, participating in panels and seminars, and networking with other document imaging industry professionals. Some are active on social media or contributing content to industry publications.

You can recommend as many or as few as you would like.

Thanks in advance for your help...

Cheers,

Scott Cullen
Editorial Director

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My answer is simple: no more usual suspects.

1. Any thought leader would have nothing to do with manufacturing hardware, so that removes a grip of people.
2. Real visionaries see OEM enforced quotas as oppressive, this negates others.
3. Analysts/consultants pontificate based on rearview data and parrot spec sheets as analysis, nothing there either.
4. Finally, an "MPS program" is no longer innovative and barely relevant.

Nothing from OEMs, the standard copier model participants, analysts, or program managers.  "We've always done it this way..."

There is, however, a collection of luminaries:

Mike Stramaglio - Ignore for a second, battling the monopoly, Mike is compelling channel players re-evaluate their entire accounting system and business model.

Kevin DeYoung - Kevin refused to play the OEM-shuffle-for-shelf-space game long ago and continues to expand the minds of his clients.

Jenna Stramaglio - The Family knows technology and Jenna is great at conveying bold messages.

Kevin Morris - Kevin Morris is running the best MPS model in the industry, he has no peers.

Jennifer Shutwell - For those ready to see, Jennifer, through her work with your MPSA and end users, has illuminated relevant facets of the MpS ecosystem.

Milton Bartley - Milton is an example of successfully pivoting from the status quo, copier model.

Andy Slawetskey - Media aggregator supreme, he gets the words out consistently and has toner in his blood.

Seven points of lights in a crowded, cluster of normalcy.

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There you have it.  I may not be a 'difference maker' in 2017...but, I'm good not being on a list.

Click to email me.